Queensland Bauxite (ASX:QBL) will look to deliver a Scoping Study within weeks for the South Johnstone Bauxite Project in Queensland.

The study is proceeding to plan to assess the potential economic viability of the development of a bauxite mining operation.

The company continues to advance exploration with a further drilling program being undertaken, which targets an upgrade in the current Inferred Resource Estimate.

Adding to the potential of the project, assaying of gibbsite samples using the Innovex portable XRF instrument analyser identified levels of total alumina as high as 55% and total silica at less than 5%.

South Johnstone bauxite is consistently bauxitic, which the alumina refineries need. There have been reports Chinese alumina refiners may struggle to find new supplies of gibbsitic bauxite in 2015.

Queensland Bauxite aims to become a low cost bauxite producer in Australia with extensive surface bauxite and close distance to deep-water port at Mourilyan.

The project also has rail running through it.

Dr Robert Coenraads, chief geologist, commented from the field: “The look of the bauxite from the field gives me a lot of confidence in the potential of the resource.

"It is exciting to clearly see nodules of gibbsite imbedded in outcrops across the red soil of the properties.”

Innovex

Further sampling of bauxite samples was undertaken at the project to augment exploration drilling activities underway.

The samples from the various holes that have been drilled were analysed using the Innovex portable XRF instrument analyser and showed that the majority of the area drilled was consistently bauxitic.

The XRF is a screening device able to detect the total alumina and silica content.

This device is used only as a guide to assist in targeting areas for resource drilling, as it does not determine the percentage available alumina and reactive silica which can only be determined in a lab environment.

The Innovex enables the company to compare assay results from the lab with the on field results that can be achieved using XRF analyses, as a validation exercise for the current drilling and to determine which samples should be sent to the lab for full analysis.

With much of the bauxite in the area being near surface and often exposed, QBL is of the view that utilisation of XRF analyses is an additional exploration tool to enhance the efficiency and speed of the infield exploration to identify prime areas for upgrade drilling and development, in addition to enable cost savings on unnecessary lab analyses.

Drilling samples have been sent to the lab to determine the average grades of available alumina and reactive silica, which should then provide the ability to upgrade the resource further.

Bauxite market fundamentals are positive

The company said its directors are encouraged by recent reports from China that there are likely to be a number of Chinese alumina refiners that may struggle to find new supplies of bauxite in 2015, particularly gibbsitic bauxite.

Gibbsitic bauxite makes up a significant proportion of the current import demand, providing a significant “fast track” opportunity for Queensland Bauxite to develop its South Johnstone Bauxite Project.

China is not self-sufficient in bauxite with prices trading near all time highs.