Bao Loc Bauxite Project (Vietnam)

Overview

The Bao Loc project is a discrete bauxite project located in the Central Highlands of southern Vietnam, approximately 15 kilometres north of the Bao Loc township in Lam Dong province. Atlantic holds an interest in the Bao Loc project separate from its joint venture with T-MV, however there are clear synergies between the two projects that will be examined. The two major bauxite provinces of Dak Nong and Lam Dong in southern Vietnam are estimated to contain a combined 5.4 billion tonnes of bauxite.

Resource Evaluation

Consulting geologists have visited the site and observed numerous bauxite outcrops of indurated (hard) ferrugenous laterites. These showed a high degree of weathering and lateritisation which is compatible with the formation of economic bauxite.

The site has good infrastructure in terms of roads, power and water due to the proximity to local plantations of tea, pine forests and coffee.

Atlantic has previously announced assay results from four samples collected from separate locations on the Bao Loc bauxite project during a field reconnaissance trip to confirm the extent and depth of the bauxite horizon. A composite bauxite sample made up from these four samples was washed and screened.

The results demonstrate that the sample material tested would respond favourably to a washing and screening process, with upgrades to quality and grade. X-Ray Diffraction analysis of the samples demonstrated the bauxite ore type is gibbsite which is the preferred feedstock for alumina refineries.

Atlantic has received extensive data from previous exploration over the western half of the Bao Loc project area. Previous exploration, carried out in 2005–06, included field mapping, trenching and shaft excavation and extensive sampling.

A total of eight shafts totalling 58 metres were sunk, from which 46 samples were taken. Seven trenches were dug with a total volume of 50.4 m3 from which 18 samples were taken. The mapping and sampling indicate a consistent near surface bauxite layer capping hills in the area. The sample details, washing and chemical analyses of the 64 samples are reported in the tables below.

Summary of the Sampling:

Summary of analytical results for the 64 washed and screened bauxite samples:

The sample results are largely consistent with Atlantic’s limited sampling conducted over the same project area and provides added evidence of the consistent high quality and low impurity levels of the bauxite mineralization over the Bao Loc project area.

The data included an estimate of the extent of the bauxite mineralisation based on area and average thickness to suggest a conceptual target in the order of 50 to 100 million tonnes.

To date there has been insufficient exploration activity to define a Mineral Resource as defined by The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).