Author: John Chadwick Posted: Friday , 02 May 2008
LONDON -
ASX quoted Ord River Resources and China Nonferrous Metal Industry's Foreign Engineering and Construction (NFC) have agreed to commence a Scoping Study, to be carried out by NFC, for the development of an alumina industry in southern Laos. The decision for the study was based on an encouragement from the maiden JORC compliant indicated bauxite resource estimate for their Bolaven Plateau Bauxite Project (announced on April 11). The initial resource was identified within a relatively small area within the southern part of the 138 Tenement, most of which has not yet been extensively drilled.
Also contributing to the decision is the successful drilling completed to date within a second tenement (Yuqida Tenement) which has indicated the scale of the overall exploration potential for bauxite on the Bolaven Plateau. The range of target size estimated to be present in the Yuqida Tenement is currently 440-570 Mt of bauxite using assumptions of 5.0 to 6.5 m thickness. 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.
Ord and NFC, through their joint venture company Sino Australian Resources (Laos) Co (SARCO), have applied to the Laos Government for an additional tenement of 867 km2 in the vicinity of the two tenements where exploration has been carried out to date on the Bolaven Plateau to increase its bauxite resource potential in the region. This application is at its final stage of approval.
Ord will provide its expertise on exploration, resource definition and mining activities. NFC will apply its expertise to feasibility studies, design, construction and operation of the alumina refinery on a turnkey basis. In addition NFC will ensure the market for the products. SARCO and its relevant partners will also commence the process to apply for an alumina refinery licence from the Laos Government to construct a plant and the scoping study of the project will assist in that application. NFC has also been delegated to commence the pre-feasibility work and detailed feasibility studies will be fast tracked by SARCO once the licence has been granted. The strong partnership between Ord and NFC and potential financial support from Chinese commercial banks will underpin the success of the project.
Ord has a co-operation agreement with China Nonferrous Metals International Mining (CNMIM) for project development in base metals worldwide. Established in 1983 by the State Council of China, NFC is now listed on the Shenzhen Stock Exchange and is a member of the Shenzhen 100 Stock Index and the Shanghai-Shenzhen 300 Composite Index. NFC's business with the support of the Chinese Government covers the whole process of nonferrous metal project execution ranging from mining, nonferrous metal smelting and processing, engineering, consulting, equipment supply and installation, technical service, plant commissioning to personnel training. NFC has been or is currently involved in multi million dollar nonferrous metal projects in Iran, Kazakhstan, Zambia, Vietnam, Laos, Mongolia, North Korea, Indonesia, Phillippines, Saudi Arabia and India.
SARCO is a joint venture established in 2007 as a foreign private company in Laos owned by Ord (49%) and NFC (51%). SARCO presently has rights through CNMIM and its associate NFC to 70% of bauxite mined from a 66 km2 block in the Bolaven Plateau in southern Laos. SARCO is finalising documentation with the licence holder to this block which will result in direct rights of 70% in a joint venture agreement with the licence holder. In addition, SARCO will enter into joint venture arrangements for the Yuqida Tenement (588 km2) in the Bolaven Plateau which will result in substantial interests at relevant times. SARCO has applied (presently in final stage of approval) for an area covering 867 km2 in the vicinity of the tenements explored to date.
John Chadwick is editor/proprietor of International Mining magazine - www.im-mining.com
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