Bulk Metals: TerraCom flexes acquisition muscle, targets West African bauxite
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Not content with its takeover bid for Universal Coal (ASX:UNV), which is now unconditional after receiving more than 51 per cent acceptances, TerraCom (ASX:TER) is moving to acquire Anglo African Minerals (AAM), which owns bauxite resources in Guinea.
Under the binding term sheet, TerraCom has agreed to pay a $US500,000 refundable deposit for an exclusivity period until August 31, 2020.
As part of the deal, the company has partnered with the private office of Sheikh Ahmed Bin Dalmook Al Maktoum, a member of Dubai’s ruling family.
TerraCom plans to focus on the development of the Forward African Resources (FAR) project that targets 70 million tonnes of export quality bauxite resources.
While it is the smallest of the three bauxite plays owned by AAM, FAR is situated close to existing rail infrastructure and could be in production between 13 and 16 months from the start of development.
Lindian Resources’ (ASX:LIN) drilling has indicated that the Bouba Plateau in Guinea, West Africa, is a very high-grade conglomerate bauxite play from surface to the basal sandstone.
Portable XRF readings, which provide an early picture of a potential find, of samples taken from drilling at Bouba returned results of 12m at 61.3 per cent aluminium oxide (Al2O3), 10m at 62.7 per cent Al2O3 and 8m at 62.3 per cent Al2O3.
The company noted that surface high grades of the conglomerate bauxite appeared to be replicated to depth and there was no indication of increasing iron content towards the basal zone as seen in most local in situ bauxites.
Drilling has also confirmed that the Mamaya Plateau is a very large in-situ bauxite plateau across its total width and length with depth of bauxite exceeding 15m in areas.
Planning will begin immediately on follow-up drilling incorporating metallurgical and physical property test work.
Perpetual Resources (ASX:PEC) has produced high-quality silica sand following initial leaching and calcination on sand from its Beharra project near Dongarra, Western Australia.
Upcoming resource definition drilling will provide further bulk samples for beneficiation studies while optimisation of both physical separation methods and leaching testwork will be undertaken on air core drilling.