Australian Bauxite Limited (ASX:ABZ) Inverell-Pindaroi Drilling Program Successfully Completed And Pechey And Geham Prospects Drilling Commenced

Sydney, May 26, 2010 AEST (ABN Newswire) - Emerging bauxite exploration and development company, Australian Bauxite Limited (ASX:ABZ) has successfully completed its current exploratory drilling program at Inverell-Pindaroi in northern NSW.

The drill rig and crews have now commenced drilling Pechey and Geham prospects at Hampton, southern Queensland.

The program objective is to first identify the bauxite layer and better define its boundary.

Then, additional holes are drilled to test for the consistency of the bauxite. Results to date have been satisfactory, in line with expectations and in some places, better than expected.

INVERELL EL 6997

20km NW of Inverell NSW

Total drilling completed at Inverell in 2009 and 2010 is 280 drillholes totalling 3,400 metres averaging 4.8 to 5.4 metres of bauxite thickness.

The thickest bauxite intercept in the 2010 drill campaign has been 9.4 metres in the centre of the tenement - a similar result to the 9.5 metres maximum thickness encountered in the 2009 drill campaign at the southern end of the tenement.

Resource estimation work will commence during July once all assay and analytical results are received from the laboratory.

PINDAROI EL 7268

7km NE of Inverell EL 6997 NSW

The thickest bauxite intercept of 12 metres is quite remarkable and the fact that this is the same maximum thickness that was estimated from detailed mapping is considered encouraging.

Pindaroi has potential for large tonnage deposits.

HAMPTON EPM 17790

20km N of Toowoomba QLD

Bauxite up to 13 metres has been intersected at the Pechey Deposit. The deposit has two layers in places - still awaiting laboratory results for definitive interpretations.

COMMENT ON DRILLING PROGRESS

The drilling program is proceeding faster than schedule and the target of 1,000 holes in 2010 across most of the company's tenements should be achieved. Landholder support has been positive in all areas.

Results at Inverell are confirming that the main deposits have the shape and high degree of consistency that was originally interpreted for these deposits. Barring any unexpected surprises in the assay results, which are still awaited, the Inverell deposits are relatively consistent and very extensive.

A major resource drilling program is considered the likely next step for this substantial bauxite resource area.

Results at Pindaroi have exceeded expectations - 12 metres of bauxite is uncommonly thick and the resource tonnage potential is high. However, because this was the first drill testing of Pindaroi, it is too early to predict the future developments at Pindaroi.

Early results at Pechey in the Hampton EPM in southern Queensland have been exciting, albeit geologically more complex than either Inverell or Pindaroi (as expected). Bauxite intercepts of 13 metres are most encouraging but because assays are still awaited, the relative ranking of Pechey deposit compared to other bauxite deposits is yet to be determined. Geham is also an interesting deposit located within 5 km of Pechey and together, these deposits may contain a large tonnage of bauxite.

For the complete Australian Bauxite Limited announcement including figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/62951-ASX-ABZ-593761.pdf

About ABx Group Limited

ABx Group Limited (ABx) (ASX:ABX) is a uniquely positioned Australian company delivering materials for a cleaner future.

The three priority projects are:

- Heavy rare earths: Supplying light and heavy rare earths from Tasmania into Western supply chains

o Processing Options Analysis conducted in partnership with external experts

- Clean fluorine chemical production: Producing industrial chemicals from aluminium smelter by-product (ALCORE)

o Continuous pilot plant under construction in Bell Bay, Tasmania

- Near-term bauxite production: Mining bauxite resources for the aluminium, cement and fertiliser industries

o Agreements executed with Good Importing International for bauxite projects in Queensland and New South Wales, and $2.7 million initial payment has been received

o Approvals well advanced for DL130 bauxite project in northern Tasmania

ABx endorses best practices on agricultural land and strives to leave land and environment better than we find it. We only operate where welcomed.

   

Contact

Investor Relations Henry Kinstlinger Australian Bauxite Limited Telephone: +61-2-9251-7177