Anglo Aluminum boosts bauxite resources on eve of Guinea election

Vancouver – Anglo Aluminum (ALU-V) has increased the resource at its Koba bauxite project in Guinea by 46% and established an initial resource at its nearby Koumbia project only days before a seminal election is scheduled in the West African country.

After decades of authoritarian rule and a first round of voting in June, the country is poised to complete a presidential run-off election on Nov. 7, after postponing the vote twice.

“That’s going to be huge,” said James Gillis, president and CEO of Anglo Aluminum in a phone interview. “That’s going to be the first democratic election they’ve ever had.”

Gillis has worked in Guinea for a decade, first exploring for gold as head of Cassidy Gold (CDX-V) and now also working to develop Anglo Aluminum’s 51%-owned bauxite properties. The company can secure full ownership of the projects by paying local owners $15 million and issuing 15 million shares.

The company first secured the Koba and Koumbia properties, spanning 536 sq. km, in 2007 and established an initial resource in early 2009. Now, with almost 37,000 metres of total auger drilling in over 2,100 holes, the company has added significantly to the resource.

Kobe is now estimated to host 501 million indicated tonnes grading 42.9% aluminum oxide, 27.81% iron oxide, and 2.79% silicon dioxide. The project hosts a further 65 million inferred tonnes grading 43.69% Al2O3, 26.91% Fe2O3, and 2.75% SiO2, unchanged from the previous estimate.

Roughly 40 km north, the company has established an initial resource at its Koumbia project after an additional 3,000 metres of infill drilling earlier this year. Koumbia is estimated to hold 130 million tonnes grading 48.4% Al2O3, 26.91% Fe2O3, and 2.75% SiO2.

“It’s really robust at 48 and a half percent,” said Gillis, “and really low silica.”

With the resource numbers now in, Gillis expects an ongoing preliminary economic assessment for both projects in northwestern Guinea to be complete within two months.

While working to advance its projects, Anglo Aluminum has also been seeking out either a buyer or a joint venture partner for its properties as it adds value. Gillis said quite a number of companies have expressed interest, but they are waiting to see what happens with the election before considering tapping into the country’s significant bauxite resource.

Guinea is a major producer of bauxite and hosts roughly 30% of the world’s supply, but decades of authoritarian rule has helped keep the country steeped in poverty.

Gillis noted that despite the sometimes unstable nature of the government, bauxite production has always been predictable.

“Guinea has never been disrupted in its aluminum supply…but the perception has always been bad.”

If the election goes smoothly and a joint venture partner is secured it would be a “very catalyzing event” for the company, said Gillis.

“The company that would come in and earn in would cause a holy water effect,” said Gillis. “They would give us the credibility that we need going forward. We’ve been working hard to build that credibility in a difficult country, now we’re at the threshold of having done that.”

Earlier this year the company also acquired a 100% interest in the 1,832-sq.-km Mamou-Dalaba project, located roughly 200 km southeast of its other projects, and expects preliminary drill results shortly.

Anglo Aluminum’s share price was up 6.5¢ or 22.8% on the news to close at 35¢ with 156,000 shares traded. The company has a 52-week share price range between 10¢ and 50¢ and 82 million shares outstanding.