Queensland Bauxite's (ASX:QBL) current drilling program at the South Johnstone Bauxite Project in Queensland is targeting an increase in mine life.

Drilling is aimed at further increasing the level of JORC Indicated and Inferred Resources.

The Exploration Target area has a range of between 193 million tonnes and 405 million tonnes of possible bauxite mineralisation at South Johnstone.

Off-take discussions

Queensland Bauxite has said that it is in discussions with a number of groups for off take sales agreements of bauxite from South Johnstone.

The company said it has recently hosted a major Asian commodity group to discuss a potential off take agreement.

This increase the number of discussions and interest in potential offtake agreements for South Johnstone bauxite.

The company added that good progress is being made with potential offtake partners and while ongoing they are not yet finalised.

Drilling details

Queensland Bauxite has acquired its own drill rig capable of rapid and efficient exploration. The bauxite at South Johnstone is located at surface with minimal to no overburden.

Costs and logistics optimisation

The company said it is continuing work on optimising the costs and logistics of bauxite transport from Mine-to-Port through to the Asian markets.

The company is reviewing options that could fast track production of bauxite from South Johnstone which includes delivering an enhanced method of loading and transport of the bauxite at Mourilyan Port through to export markets.

Queensland Bauxite has engaged Sea Transport Commodities Pty Ltd to provide logistical support and to study in detail the loading operations and possible logistical options for the bauxite operation.

Sea Transport Commodities is involved in multi-product marketing with strong connections with many global but in particular South East Asian customers.

The initial work by Sea Transport for the Company has already produced potential operational cost efficiencies.

Environmental Approvals

Environmental test work and reporting in preparation for the mining lease application is progressing to plan, and based on the work done to date our environmental consultants are confident that there are no known factors that should restrict the approvals being attained in due course.

The company is aiming for first production to begin in the second half of 2015.