10 June 2008Four Fold Increase in Resource Statement for Ord JV...

10 June 2008
Four Fold Increase in Resource Statement for Ord JV Company SARCO
Bolaven Plateau Bauxite Exploration
Exploration by SARCO has identified an independently certified JORC compliant indicated bauxite resource of 62
million tonnes as shown in Table 1. This resource is present on the Yuqida tenement located in Bolaven Plateau in
southern Lao PDR as shown on the map below (Figure 1).
Indicated Resource Statistics with KSi COG = max 5%, AvAl2O3 COG= 25%
Tonnage million tonnes 62.0
Average Available Alumina % 31.6
Average Kaolinitic Silica (Reactive Silica) % 3.0
Average Block Thickness metres 4.3
Average Overburden Thickness metres 2.3
COG = cut off grade, KSi = SiO2 in kaolin
Table 1 ¨C Indicated Resource Statistics
The indicated resource is based on drilling in November 2007 to February 2008 on the Yuqida tenement and on
analyses available at May 18th 2008. The accompanying map indicates the areas of mapped bauxite, drilled bauxite
and the resource block locations within the Exploration Target area.
Further drilling is continuing on the Yuqida tenement with the aim of defining further resources. Drilling will continue
through the wet season subject to access and safe working conditions.
Figure 1 ¨C Laos Tenements
The routine analysis of samples was by low temperature digestion for Available Al2O3 and Reactive SiO2. The test
used was devised by a Bayer Process Chemistry Consultant who has very extensive experience in this type of
digestion analysis.
The resource statement released today is over an area of approximately 11.25 km2 which is 23% of the Exploration
Target area mapped up to April 20th 2008 on the Yuqida tenement. The mapping carried out during drill hole pegging
is based on the position of approximately 2,800 planned drill holes. Confidence in this mapping is high following
drilling to date. Further drilling data is being prepared for resource estimation by our resource consultant and the
next release is expected early in the third quarter of 2008. Releases will be made progressively as data becomes
available and is interpreted.
The range of target size estimated to be present in the Yuqida tenement was 440©\570 million tonnes in mid April,
using thickness assumptions of 5.0 to 6.5 metres thickness. Subsequent mapping has increased the number of
planned holes in the tenement by a further 6.5%.
The Estimate of the Exploration Target is not a resource statement but indicates the scale of resource that may be
indicated by the drilling and analytical programs currently underway. This estimate of potential will be replaced
by reliable resource estimates as analytical data for holes already drilled are received, additional holes are drilled
and all holes are accurately topographically surveyed.
SARCO¡¯s exploration work to date has been within 2 tenement areas, the ¡°Yuqida¡± tenement and ¡°138¡± (which is
split into the ¡°72¡± and the ¡°66¡± blocks respectively). The April 11th statement was for the ¡°66/138¡± Block and the
June 10th statement for the Yuqida tenement. The resource areas below are approximately 30 km apart.
Combined resources in the two tenements are shown in table 2 below.
Indicated Resource Statistics with KSi COG = max 5%, AvAl2O3 COG= 25%
June 10th
2008
April 11th
2008
Total Resource
June 10th 2008
Tonnage million tonnes 62.0 19.6 81.6
Average Available Alumina % 31.6 32.6 31.8
Average Kaolinitic Silica (Reactive Silica) % 3.0 2.5 2.9
Average Block Thickness metres 4.3 5.6 4.6
Average Overburden Thickness metres 2.3 1.1 2.0
The combined resource is now approximately 40% of the amount required by our JV partners to initiate feasibility
studies for an alumina refinery.
Recent evaluation of the bauxite in the Yuqida area by our independent experts has shown the presence of alumina
phases that may not be extracted using the current analytical procedures. Work to see whether grade can be
improved with revised analytical methods is about to commence. This may lead to an increase in the grade and/or
tonnage of the resource figures stated above.
The map on the following page shows the areas of exploration potential as currently understood in the Yuqida
tenement.
Figure 2 ¨C Resource and Exploration Target areas ¨C Yuqida Tenement
(The information in this report that relates to Mineral Resources is based on information compiled by Mr Mike Morgan, an
independent Bauxite Geology Consultant and a member of the Australasian Institute of Mining and Metallurgy.
The information in this report that relates to Exploration Results is based on information compiled by Mr Peter Temby, General
Manager ¨C Mining Operations, a consultant employed by Anpet Exploration Pty Ltd and a member of The Australian Institute of
Geoscientists.
Mr Morgan and Mr Temby have sufficient experience that is relevant to the style of mineralization and type of deposit under
consideration and to the activities which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of
the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Morgan and Mr Temby
consent to the inclusion in this report of matters based on their information in the form and context in which it appears.)
About SARCO
Sino Australian Resources (Laos) Co., Ltd (SARCO) is a joint venture established in 2007 as a foreign private company in Laos
owned by Ord River Resources Limited (49%) and China Nonferrous Metal Industry¡¯s Foreign Engineering and Construction Co.,
Ltd (NFC) (51%).
SARCO presently has rights through China Nonferrous Metals International Mining Co., Ltd (CNMIM) and NFC to 70% of bauxite
that is mined from the 66/138 block. CNMIM is an associate of NFC.
SARCO will enter into joint venture arrangements for the Yuqida tenement to earn a substantial interest at the relevant time.
SARCO has applied (presently in final stages of approval) for an area covering 867 sq km surrounding the 72/138 and 66/138
blocks.