ABX - ABx Group

Australian Bauxite Limited (ABZ) is an exploration company that holds the core of the Eastern Australian Bauxite Province with 26 tenements in Queensland, NSW, Victoria and Tasmania covering over 6,500 km².

http://www.australianbauxite.com.au

Re: ABZ - Australian Bauxite

Goulburn–Taralga Bauxite Resource up by 50% – 38 Million Tonnes
• 37.9 million tonnes of thick, gibbsite-rich bauxite resources at Taralga, southern NSW
• Pre-feasibility studies expanded for Goulburn Bauxite Project due to thick bauxite discovered in February-March 2012. This resource upgrade includes the first thick zone.
• Based on 890 drill holes into less than two-thirds of the identified bauxite target areas at Taralga only
• 53% of total identified bauxite resources is DSO grade
• Pre Feasibility Study Metallurgical Tests confirmed that the remaining 47% of total identified bauxite resources, called PDM-DSO bauxite, contains dense, hard, magnetic emery nodules that are easily recovered by gravity screening for sale, leaving the remaining 70% light fraction as DSO grade bauxite
• The thick bauxite discovered in February-March 2012 is being explored along strike. A new record true thickness of 38 metres of continuous bauxite was intersected in hole TG707. Other thick zones were identified and drilled deeper for this resource upgrade

Binjour Bauxite Resource Increased 46% to 24.5 Million Tonnes
Company resources grow to 106 million tonnes
• 24.5 million tonnes of thick, gibbsite-rich bauxite resources at Binjour, central QLD
• Based on 517 drill holes into less than 25% of the identified bauxite layer
• Huge bauxite mineralisation - indentified bauxite layer extends over entire 44 square kilometre Binjour Plateau

Metallurgical Results Encouraging: Silica Gel Removal to Expand DSO Bauxite Resources
In the last 6 months, preliminary metallurgical tests have been conducted by a clay processing engineer who found that the silica gel substance was easily removed by a simple, low-cost washing procedure that may become a proprietary technology. The gel is soft and only loosely adhered to the bauxite, which allows for easy liberation when washed, leaving a recovered bauxite that is low-silica, high alumina DSO Grade Bauxite.
Work is continuing to develop a standard sample preparation protocol for future analysis of the silica gel-bearing bauxite samples by commercial laboratories so that large tracts of the bauxite layer can be included in future resource estimations.

JORC Compliant Resource Statements
The following are Joint Ore Reserve Code (“JORC”)-compliant Public Reports released to the ASX declaring the JORC resources referred to.
08/05/2012 ASX Inverell JORC Resource Update, 38.0 Million Tonnes
30/05/2012 ASX Taralga Bauxite Resource Increased 50% to 37.9 Million Tonnes
15/08/2011 ASX Maiden Guyra Resource, 6.0 Million Tonnes
29/07/2012 ASX Binjour Maiden Resource, 24.5 Million Tonnes

On July 4th, 2014, Australian Bauxite Limited changed its ASX code from ABZ to ABX.

Trading halt called for today - http://www.stocknessmonster.com/news-item?S=ABX&E=ASX&N=821432

from mid 2017

ABX appears to be planning to enter the lithium ion battery market with "new technology" to produce Aluminium Fluoride, according to PR and roadshow presentation

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QUOTE " Ian Levy will be providing an overview on the development of bauxite beneficiation and refining technology to produce Aluminium Fluoride used in aluminium production and in lithium ion batteries, as reported briefly in the June Quarterly Report released on 28 July 2017. A patent application was lodged on 5 June 2017."

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and, (hearty thanks to @barney and his daily *Price Sensitive* thread) there seems to be a tilt towards Rare Earths.

Australian Bauxite Limited (ASX:ABX) is pleased to report on early results from an exploration project carried out over the last 15 months involving rare earth elements (REE) that occur within the ABx bauxite horizon. Assaying is by the NATA-registered ALS commercial laboratory, Brisbane.

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Looking at the Ann., it all sounds rather marginal. Buy ALS??

On December 20th, 2021, Australian Bauxite Limited changed its name to ABx Group Limited.

well, the enthusiasm to chase REEs and raise capital, placement then expanded SPP, on early results doesn't seem to translated to gains for participants. Now bouncing around between 10c and 11c for the last 5 weeks

ABX reported (in May 2021) confirmatory results from exploration at the DL130 bauxite project in northern Tasmania for rare earth elements (REE) that occur within the ABx bauxite geology and have the following features:

• The confirmatory sample has returned the highest level of REE enrichment discovered to date
• In northern Tasmania, the most enriched element is Neodymium
• Clays in the highly corroded Source Rocks have been found to contain soluble REE
• The mineralisation appears likely to be Ionic Adsorption Clay deposits which have been a major source of low-cost REE production in southern China

As stated, the ABx Exploration Strategy is as follows:
1. To explore for REE that are in strongest demand. ABx is exploring for Neodymium because its price is growing strongly and it is the main metal used for super-magnets that are critical strategic components in electric vehicles, wind turbines, smart phones and military electronics
2. To focus on a deposit type that can be quickly developed with a low capital cost and has a low operating cost. So, ABx explores for the Ionic Adsorption Clay (IAC) style of mineralisation which is analogous with the IAC deposits that have produced REE in southern China using simple leaching.
3. To explore in areas where an IAC leaching project will not interfere with alternative land use
4. To always comply with the ABx paramount policy to leave land better than we find it and only operate where welcome

In May 2021, ABx completed a placement of 32,500,000 fully paid ordinary shares at $0.10 per share with attaching options on a 1 for 1 basis, exercisable at $0.20 before 31 May 2023 . A SPP followed in October, setting out for $500K. While still open, subscriptions reached over $1.8 million; "due to this overwhelming support from long standing supportive shareholders, the Directors have decided to vary the SPP Offer to ensure a fair and reasonable outcome."

• Shareholders rally behind ABx Group Share Purchase Plan
• Over $4 million raised with no scale back
• Company well positioned to advance REE exploration

Tim Boreham has a bit of a write-up/ plug for ABX:


Sometimes it’s the supposedly smaller things that can grind industry to a halt, such as the current shortage of the obscure diesel additive AdBlue.

Few outsiders would know that aluminium smelters require an ingredient called aluminium fluoride (AIF3), to enable the right chemical balance through the complex process of converting alumina (refined bauxite) to aluminium metal.

While Australia has a prosperous aluminium sector, it relies on imports – mainly from China – to keep the smelters humming. We’re the largest aluminium-producing region without a domestic AIF3 capacity.

According to ABx Group Executive Director Ian Levy, the federal government appreciated the importance of AIF3 post-war, when it created Comalco (now owned by Rio Tinto). As with other import-dependent activities, fostering a local supply was put in the too-hard basket. This short-sightedness is coming back to bite, with supply chain disruption becoming a major issue.

“Currently some smelters are experiencing significant challenges because of container shipping delays for chemicals and other specialist raw materials ,” says Levy. “Imagine a bakery without the smallest thing: yeast. Without it you can’t make the bread. It’s the same for AlF3 in smelters.”

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Like a decent loaf of sourdough, ABx’s 87 per cent owned subsidiary Alcore Technology is rising to the occasion with ambitious plans to build an AIF3 facility in Tasmania’s Tamar Valley, proximate to Rio Tinto’s Bell Bay smelter. Costed at $20 million, the plant would secure supply for the local industry and generate strong short-term cash flow for ABx, which also has promising plans to extract rare earths from its Tasmanian bauxite tenements.

Until late last year, the ASX-listed ABx was known as Australian Bauxite but changed its name to reflect its broader repertoire.

Alcore plans to produce AIF3 using ‘spent bath’, a by-product generated from the smelting process itself. About half of this bath-waste is fluorine, a perfect source of AIF3. In contrast, most AIF3 traditionally is derived in a more expensive way from fluorspar – a purple crystal that has many other industrial (and ornamental) uses.

Investors may query why no-one else has cottoned on to spent bath as a cheaper and greener feedstock for AIF3 production. Levy says the answer lies with Alcore’s know-how, developed under the auspices of chemical engineer and Alcore CEO Dr Mark Cooksey. The process was perfected at Alcore’s Berkeley Vale labs on NSW’s central coast – one of only a small number of facilities globally that can carry out such research.

“The process is innovative, requiring multiple steps with the right amount of temperature, pressure and acidity levels,” Levy says.

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Alcore currently is undertaking a $1.5 million pilot plant program at the lab, with construction of its initial commercial plant at Bell Bay slated for late 2022. Alcore’s engineers have modelled the full-scale output of up to 60,000 tonnes per annum, which would generate earnings before interest and tax of $50 million a year.

The output is a small proportion of the total AIF3 global output of 1.5 million tpa, but a 10,000 to 20,000 tpa plant would go a long way of meeting Australia’s annual requirement of 25,000 tonnes. Currently AIF3 fetches $US1000-1800 a tonne, but current costs range up to $US1500/t as the cost of traditional fluorspar is rising.

By utilising waste from mainland smelters as well as Bell Bay, ABx expects production costs of $US650-900 per tonne and a long-term average price of $US1200/t.

“During negotiations with customers none has mentioned price as a key factor,” Levy says. “We have a lot of support from western country smelters, they are all keen for us to perfect the technology and help them out.”

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Further afield, ABx holds a half-share of the Sunrise Bauxite Project at Binjour, 115 kilometres west of Bundaberg, in joint venture with India’s Rawmin Mining. Budgeted at $15 million, the new project aims to sell half a million of tonnes of bauxite to alumina refineries in India and China. The Binjour deposit hosts higher-grade gibbsite-rich trihydrate bauxite, the material most suited to producing aluminium metal at low temperatures.

The venture will also own a large bulk-port facility at Bundaberg Port which is the only shipping gateway north of Brisbane that does not require vessels to cross the Great Barrier Reef.
Levy says Rawmin Mining has been extracting and shipping bauxite from India for more than 50 years and needs additional supply from Australia to supply customers during India’s wet season when all the ports are closed. Rawmin’s expertise in operating ports means the JV can expect significant revenues from Bundaberg, not just from bauxite. He notes that New Hope Corporation makes large side profits from operating a bulk facility at the Port of Brisbane.

ABx also owns the smaller scale Fingal Rail Project in Tasmania’s north, which is pitched at mining bauxite for the cement and fertiliser industries over at least 15 years. This output would replace ABx’s depleted Bald Hill mine nearby, which it has operated since 2015.
Levy says the business promises niche cash flow at small tonnages. But shipping from Tasmania is expensive, at least until Burnie Port expands to take Panamax-sized ships.

Levy says it’s possible that Alcore eventually will be demerged and separately listed, to maximise the potential of all of ABx’s assets.

“Meanwhile, we expect Alcore to be the cash flow driver for ABx over the next three years – and a very valuable addition to the Australian aluminium industry.”

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Perhaps a goodun for the REE watchlist?
3 year weekly chart.

already 25% rose following Fat Prophet's recommendation.

With an initial focus on bauxite, ABx discovered the rare earths potential of its Tasmanian ground after its geologists correctly surmised that rare earths occurred in the same structures as the aluminium ingredient (also prolific in the tenements).

Released last November, the maiden resource covered the Deep Leads and Rubble Mound prospects. The estimate outlined 3.94 million tonnes, containing total rare earth oxide (TREO) content of 918 parts per million.

Management believes the more meaningful number is the 655 ppm of TREO less the content of cerium, a low-valuable rare earth that has low extraction during desorption.

ANSTO’s recent desorption tests covered 71 samples from the company’s Deep Leads and Rubble Mounds deposits. Carried out at ANSTO’s Lucas Heights facility in Sydney, the assays emulated the low-acid, low-cost processing conditions for IAC rare-earth elements.

From the 44 samples in the IAC zones in the maiden resource, REE extractions ranged from 24-83 per cent.

In the case of the more closely-drilled Deep Leads, extraction rates for 36 of the 49 samples averaged 50 per cent with a minimum 24 per cent.

Cooksey says the results were in line with the extraction rates of the long-producing Chinese mines.

“We don’t quite know what the economics will be until we have done further analysis, but this shows the deposit is in the ballpark."

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Cooksey says the company’s focus now turns to further drilling and metallurgical work, as well as some deep thinking about the size and nature.

“We have to be clear about how far down the processing chain we want to go...
“We could sell to a refinery rather than building the whole value chain. In any event, we are talking to customers to ensure we have a path to market for our product.”

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In mid January, the company kicked off a120-hole reverse circulation drilling blitz, aimed at extending the mineralisation zone between the Deep Leads and Rubble Mound discoveries..

Cooksey notes the declared resource only covered 7-8 per cent of ABx’s entire project area. “There is plenty of scope to expand the resource but we need to do more drilling,” he says.

Cooksey says there a lot more work to do more broadly, including a prefeasibility study to hone the scope and cost of the project.

Dona Ferentes said:

...declared resource only covered 7-8 per cent of ABx’s entire project area. “There is plenty of scope to expand the resource but we need to do more drilling,”.
...there a lot more work to do more broadly, including a prefeasibility study to hone the scope and cost of the project.

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Tilting towards Tassie REE; Some more results out, but the recent statements don't scream excitement (except a need for capital?)

ABx Strategy
• Rapidly develop low-cost production of mixed rare earth carbonate
• Operate only where welcomed

2023 Plan
• Further investigations of metallurgical processing steps and conditions
• Estimate CAPEX and OPEX
• Deepen engagement with potential customers
• Enhance ABx’s exploration technology to find more rare earths
• Further drilling campaigns

“Not all clays are created equal and, while REEs in clays are an emerging exploration target, very few deposits globally are confirmed as ionic adsorption clay REE mineralisation that are amenable to low-cost benign production methods.”

Dona Ferentes said:

ABx Strategy
• Rapidly develop low-cost production of mixed rare earth carbonate
• Operate only where welcomed

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i saw some ABC exposé on how ABX is intruding on prime pasture in NE Tas , and how the cows don't like it. Don't they know REEs are vegan?

.

Dona Ferentes said:

2023 Plan
• Further investigations of metallurgical processing steps and conditions
• Estimate CAPEX and OPEX
• Deepen engagement with potential customers

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and recently:
received firm commitments for a $1.5 million single tranche share placement to professional and sophisticated investors. The Placement, in combination with the previously announced $7.5 million in grant funding under the Federal Government’s Modern Manufacturing Initiative, means that ALCORE’s pilot plant facility in NSW is fully funded. ALCORE is a circular economy process that recovers fluorine from ‘excess bath’ (an aluminium smelter waste product) to produce hydrogen fluoride. This is combined with aluminium hydroxide to produce aluminium fluoride, a high-value chemical essential for aluminium smelting.

Under the Placement, ABx will issue 18.75 million fully paid ordinary shares at $0.08 each plus some oppies

Alcore, an 83%-owned subsidiary of ABX, has entered into a lease agreement with Rio Tinto Aluminium Limited for an industrial facility adjacent to its Bell Bay aluminium smelter in northern Tasmania. ALCORE will establish a pilot plant at the facility to demonstrate its world-first proprietary process to produce industrial chemicals, including hydrogen fluoride, from a waste product created during the aluminium smelting process. In the planned subsequent commercial plant, hydrogen fluoride will be converted to aluminium fluoride, an essential chemical for aluminium smelting that is currently 100% imported. This is an exemplary demonstration of the circular economy.

This agreement is complementary to the recent announcement that the Tasmanian Government has provided indicative terms and conditions for a $1 million, conditional loan for the pilot plant.

The facility comprises a 500 sqm building on an industrial site and offers convenient access to local engineering services and suppliers in Bell Bay. The building has previously supported several industrial developments and includes appropriate utilities. ALCORE will make minor internal modifications to facilitate the continuous pilot plant. The site is also sufficiently large for a small commercial ALCORE plant.

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off its lows

still down there .... $0.036

and the narrative has swung back to bauxite; REE stories don't gain traction .
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from todays Ann. Global bauxite prices have significantly increased due to severe supply disruptions from Guinea and reduced production in China. The price of Guinea bauxite minimum 45% Al2O3 CIF China increased by almost 60% in less than four months, from US$74 per tonne on 19 September 2024 to US$118 per tonne on 13 January 2025. The bauxite market may be undergoing a transition similar to the iron ore market in the early 2000s.

ABx has the largest gibbsite bauxite assets in eastern Australia. This type of bauxite is in demand from alumina refineries that operate at low temperature, including numerous refineries in China.

Binjour, Queensland: A resource of 37 million tonnes of gibbsite-type metallurgical bauxite located 200 km by road southwest of Bundaberg port. Part of the resource is likely suitable as direct shipping ore, with no beneficiation required. Mining, port and transhipping studies have been completed, and mine lease application MLA 100277 is well advanced. ABx is assessing how quickly the project can commence production, potentially during CY2025.

Taralga, NSW: A resource of 38 million tonnes of gibbsite-type metallurgical bauxite, located 200 km inland from Port Kembla. A 2012 pre-feasibility study by independent engineers concluded that transport by road and rail was feasible, but subsequent delays in the expansion of Port Kembla outer harbour were the main obstacle to the project. Recent changes in Port Kembla logistics have been positive and this project is now capable of delivering bauxite into the seaborne bauxite market and is therefore being reassessed.

Company Strategy: Given the shortfall in global bauxite supply and the favourable quality and logistic settings of the ABx bauxite deposits, ABx is actively pursuing several options for monetisation of these bauxite assets. This includes updating mine studies to prioritise an earlier commencement of production.

ABx has been approached by several parties and the ABx board is intensively evaluating options for the above projects. ABx is in discussions with numerous parties regarding offtake, direct investment and the possibility of purchasing one of the assets. A data room has been established. The Company will continue to assess its options for the projects that provide the best opportunity to create long term shareholder value.

Tasmania: The plans for the Tasmanian bauxite resources are unchanged. ABx plans to commence bauxite mining at the DL130 Bauxite Project, and assessment of the mine lease application by Meander Valley Council, the EPA and Mineral Resources Tasmania is in progress. The primary products are likely to be cement grade and fertiliser grade bauxite.

Dona Ferentes said:

still down there .... $0.036.

Tasmania: The plans for the Tasmanian bauxite resources are unchanged. ABx plans to commence bauxite mining at the DL130 Bauxite Project, and assessment of the mine lease application by Meander Valley Council, the EPA and Mineral Resources Tasmania is in progress. The primary products are likely to be cement grade and fertiliser grade bauxite.

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up there > 100%

Deep Leads project, located 45 km west of Launceston, Tasmania.


- Excellent ANSTO diagnostic leach test results on the 100 kg Deep Leads bulk sample, consistent with ABx’s in-house leach test results
- Greater than 70% extractions of dysprosium (Dy) and terbium (Tb) achieved – the two most sought-after heavy rare earths
- Results indicate that Deep Leads can be effectively leached above pH 4, which reduces impurities, reduces reagent costs and makes processing benign
- ANSTO remains on track to deliver a mixed rare earth carbonate sample in Q4 2025
- Prospective customers eagerly anticipating MREC compositions and samples

Dona Ferentes said:

up there > 100% Deep Leads project, located 45 km west of Launceston, Tasmania.

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Inside day trading well above yesterdays low on reasonable Volume ... looks tidy enough. Back above 10 will be the acid test.

barney said:

Inside day trading well above yesterdays low on reasonable Volume ... looks tidy enough. Back above 10 will be the acid test.

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was $0.077 .. now opened at $0.080
- this little piggie went to market


Firm commitments received to raise A$3.0 million (before costs) via a strongly supported share placement to sophisticated and professional investors.

- Proceeds to advance the Deep Leads rare earth project in Tasmania, complete scoping studies, expand exploration drilling, and secure offtake agreements. Funds will also support working capital and costs of the Offer.
- Several institutional investors and Board and Management have provided binding commitments to support the placement.

Placement Details
The placement will result in the issue of 46,875,000 new fully paid ordinary shares at an issue price of A$0.0640 per share, representing a 16.9% discount to the last traded price, a 24.9% discount to the 5-day VWAP, and a 24.1% discount to the 15-day VWAP.

Dona Ferentes said:

was $0.077 .. now opened at $0.080 - this little piggie went to market

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They struck while the iron was hot ... and the price cooled as expected.

6.4 cent raise is a pretty shrewd effort by the Management given the SP was around 4 cents a week or so back.

Currently 7 cents so holding up pretty well so far.