Cape Alumina (ASX:CBX) has revealed that the Cape York Regional Plan (CYRP), which was announced by the Queensland Government on 21 August 2014, will not affect the permitting or development of the company’s Bauxite Hills project.
Cape Alumina will continue its development works for a Direct Shipping Ore project at Bauxite Hills.
Substantial portions of Cape Alumina’s Pisolite Hills tenements are also outside the Strategic Environmental Areas and may have potential for future development.
However, more work is required to determine whether those areas of Pisolite Hills which are not impacted by the CYRP may be economically developed.
CBX plans to minimise further expenditure on Pisolite Hills whilst the focus remains on the Bauxite Hills project.
The Bauxite Hills project, around 50 kilometres north-west of the Pisolite Hills project, holds a 60 million tonne bauxite resource.
Eventual development of both projects in conjunction will bring significant synergistic benefits.
A Pre-Feasibility Study for Pisolite Hills Mine and Port project confirmed the technical and economic feasibility of a 7.5 million tonne per annum bauxite mine over a life of 14 years, based on a 134 million tonne bauxite resource.
Of the resource, 67% is in the higher confidence Measured or Indicated categories.
CBX is valued at around $7 million.
