Australian Bauxite Limited (ASX:ABZ) Announces Bauxite Results From Binjour Project And Commences Drilling In Tasmania

Sydney, Oct 18, 2010 AEST (ABN Newswire) - Emerging bauxite exploration and development company, Australian Bauxite Limited (ASX:ABZ) has received all laboratory results from the first pass drilling campaign at its Binjour Project south of Gladstone and 170km southwest of Bundaberg, central Queensland. These results confirm the discovery of a concealed layer of good quality bauxite. A new Exploration Permit application has been made to secure the extensions of this deposit at Binjour.

BINJOUR EPM 18014
170km SW of Bundaberg QLD

During exploration, an area of several square kilometres was discovered on the Binjour plateau that has a good quality bauxite layer concealed beneath a soft, freedigging overburden layer.

Bauxite at Binjour is unexpectedly extensive over a wide and diverse area, thus warranting surface mapping and a drilling strategy to delineate thicker, shallow, good quality zones which may justify early development.

Results from the 18 holes which intersected this concealed bauxite are set out in detail in the Appendix at the end of this report.

BINJOUR EXTENSION: NEW EPM APPLICATION

Based on the discovery of the concealed bauxite deposit at Binjour in mid 2010, ABx conducted an exhaustive assessment of the surrounding areas where extensions of the bauxite may occur. As a result of encouraging surface samples of bauxite, geological observations and the application of remote sensing techniques, a new Exploration Permit application was designed to secure the extensions of the Binjour bauxite province.

Plans are now in preparation to recommence drilling on the Binjour plateau.

TARALGA EL 7269
40km N of Goulburn, southern NSW

Drilling in the district around Goulburn in southern NSW has been successful on the two Project Areas drilled to date, namely Taralga located 40km north of Goulburn and Windellama, 40km south of Goulburn Inverell.

A maiden resource of 5.4 million tonnes of bauxite at Taralga was announced on 16 September 2010 and since then, another 10 days of drilling has continued to encounter extensions to the resources and has discovered two new bauxite deposits. Laboratory results are awaited.

A Review of Environmental Factors has been submitted for consideration by the Mines Department to enable further resource definition drilling to be undertaken at Taralga. No major impediments have been identified.

TASMANIA - 7 Exploration Licences Granted.
Drilling commenced.

The company is also pleased to announce that 7 of the 8 tenements in Tasmania have recently been granted.

The drill crews and equipment have been shipped to Tasmania and drilling commenced on 14 October on grazing and cropping farmland around Campbell Town in the Tasmanian midlands. Bauxite is being encountered in the drillholes and in surface sampling. Laboratory results of the drillhole samples will take approximately 6 weeks.

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

http://www.abnnewswire.net/media/en/docs/63970-ASX-ABZ-609708.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

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