Australian Bauxite update on ALCORE Project
Time:Wed, 28 Mar 2018 05:09:50 +0800
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Bauxite producer, Australian Bauxite Limited has made significant progress with its ALCORE project which is the development of bauxite beneficiation and refining technology to produce the highvalue Aluminium Fluoride used in aluminium smelters and Lithium Ion batteries. ALCORE will also produce Corethane ultra-pure hydrocarbon that can substitute for natural gas, diesel, heating and industrial applications. ALCORE's progress is meeting the schedule announced to the ASX on 13th November & 11th December 2017.
Highlights: Australian Bauxite's ongoing R&D and bauxite beneficiation program is bearing fruit.
1. Engineering and cost study completed on 28 February for the Stage 1 has been accepted by the Board of Directors of Australian Bauxite Limited
2. Cost estimate of Stage 1 has reduced by more than 50% to between USD 5.5 and USD 6.5 million depending on success rates and testing of co-products including Corethane and/or graphite
3. Further cost reductions are possible and are being pursued aggressively
4. Cost reductions arose from:
a). Simplification of the technology to make it robust (patent appln 5th June 2017)
b). Lower cost of modern high-technology alloys that suit the reagents being used
c). Suppliers routinely manufacture the reactors used in ALCORE
Now that an updated design and budget has been achieved, and subject to regulatory, statutory and shareholder approvals as required, the following is being undertaken:
1. Discussions with governments and agencies are progressing at the highest levels
2. Companies that showed strong interest in both the Aluminium Fluoride and the main coproducts Corethane and silica fume will be consulted
3. USD 1 million of funding has already been promised by a party that will provide services to ALCORE, subject to acceptance of the budget which is based on maximum cost-efficiency
4. Parties interested in investing in and/or supporting ALCORE will be consulted with a view to determining the optimum investment structure
5. An advisory committee will be assembled to recommend the investment structure terms, with a priority to avoid significant capital raising by ABx which has always been ABx policy
6. The Stage 1 project has commenced with quotations for construction and securing the site in Berkeley Vale, NSW and the required approvals to do this Stage 1 testwork
7. Funding arrangements for Stage 1 will be finalized by 30 June 2018
8. Funding proposals under consideration include an eBOOT method whereby an engineering firm would part-fund Stage 1 evaluations of the ALCORE process and if satisfied, will Build, Own, Operate & Transfer the large bauxite refinery production plant to ALCORE
Ian Levy CEO of ABx said that "ALCORE is looking more exciting at every stage and would increase the profits from our very clean type of bauxite by a factor of 10 to 30 times. It's a game-changer."
The current ABx group available cash is AUD 1.58 million. ABx has sales revenues pending and unused lines of credit for working capital if required and has no current plans for capital raisings.
