Lindian Resources climbs 32pc after finding new bauxite deposits in Tanzania
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Lindian Resources has identified three new deposits at its Lushoto bauxite project in Tanzania.
Lindian identified and mapped three new outcropping bauxite mineralised areas. These have been named Lukozi deposit, Malibwi deposit and Mbwei deposit with area sizes of 2800m by 700m, 2300m by 600m and 2000m by 350m.
This brings the total number of bauxite deposits found by Lindian to six within the Lushoto tenement area.
The stock (ASX:LIN) was up as much as 32 per cent to a high of 2.9c on the news before closing the day at 2.4c, up 9 per cent.
First batch of samples collected from these deposits is being shipped to Brisbane for analysis.
“The identification of an additional three mineralised deposits has surpassed all of the board’s expectations when first assessing the Lushoto project,” Lindian chairman Asimwe Kabunga said.
“We have moved from one key deposit which has returned world class assay results to now having six deposits which could form the basis of a substantial bauxite precinct subject to further drilling and assaying confirming the initial testing to date.”
Earlier this year, Lindian inked a deal with unlisted Batan Australia to farm-in and earn a 75 per cent stake in Lushoto.
As part of the final due diligence process, Lindian is testing all six deposits with surface sampling and trenching to confirm the thickness and grade of mineralisation ahead of a drilling campaign in the current quarter.
Lindian is also targeting a maiden JORC resource for the current quarter.
JORC compliance refers to the mining industry’s code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
This could form the basis of long-term direct shipping ore mining operations at Lushoto.
Lindian has a market cap of $6.7 million.