AndhraNews.net
Home » Business News » 2011 » June » June 8, 2011

Bullion Monarch Launches Bauxite Exploration in Brazil


June 8, 2011 - St. George, UT

Bullion Monarch Mining Inc. (OTCQB: BULM) (OTCBB: BULM) is pleased to announce commencement of the recommended exploration plan outlined in the 43-101 report filed on the recently acquired Niquelândia bauxite property located in Goiás, Brazil. The Niquelândia Project is located as the northeastern extension of a prominent trend that contains the Barro Alto bauxite deposit which is currently under development by Campanhia Brasileira de Aluminio, and the Barro Alto nickel laterite deposits under advanced-stage development by Anglo American. A total exploration budget of $1.5 million has been allocated. Phase I work is estimated to cost $575,000 and phase II is estimated to cost $925,000. The plan consists of:

Phase I

  • Detailed mapping
  • Geophysical analysis
  • Metallurgical sampling, testing and characterization
  • Wide space drilling in areas of known mineralization

Phase II

  • Definition drilling on a regularized pattern in prioritized locations
  • Metallurgical analysis
  • Resource calculation

Reserve modeling will be performed based upon the results of phase I and II. This will involve the assessment of mineability and processability of the mineralization, and economic feasibility of the Niquelândia Project. The Niquelândia Project is substantial in scope and a significant exploration effort is required to fairly and adequately characterize the area.

Bullion Monarch President James A. Morris states, "The Niquelândia Property is an incredible opportunity for our company to gain a position in the very strong aluminum market. We are committed to maximizing shareholder upside in properties by avoiding dilution and debt during early exploration. Bullion Monarch remains a unique company in the sector by self-financing exploration projects through royalty revenues from previous successes."

Bullion Monarch geologists believe the deposit to be located at surface or near surface covering a large area, possibly up to 25 km in length and up to 5 km in width. Previous exploration on the property, consisting of surface sampling intended to prove the existence of bauxite mineralization, have returned Al203 content up to 61.8% with numerous values greater than 60%. Geologists have concluded that the grade of the aluminum oxide, at the project, is uniformly above the cutoff grade for operating bauxite mines. Highlights from a surface sampling report analyzed by ALS Chemex are as follows:


---------------------------------------------------------------------
NIQUELANDIA BAUXITE TO ALUMINA PRODUCTION GRADE ANALYSIS
(samples selected from Al2O3 values greater than 50%)

---------------------------------------------------------------------
Sample ID Al2O3 (%) SiO2 (%) Fe2O3 (%) TiO2 (%) LOI (%) Module
---------------------------------------------------------------------
17 52.8 13.35 5.33 0.1 25.5 4.0
---------------------------------------------------------------------
22 61.5 3.25 2.01 0.13 31.2 18.9
---------------------------------------------------------------------
23 61.8 4.06 2.96 0.22 31.0 15.2
---------------------------------------------------------------------
24 60.8 4.41 3.54 0.17 30.5 13.8
---------------------------------------------------------------------
25 60.9 4.82 2.38 0.15 30.7 12.6
---------------------------------------------------------------------

---------------------------------------------------------------------
LOI greater than 20% is classified as Bauxite. LOI less than 20% is
considered Laterite.
---------------------------------------------------------------------

Bauxite is an aluminum ore that is the main source of alumina and aluminum. Approximately four tons of bauxite produces two tons of alumina, which in turn is smelted to produce one ton of aluminum. Most metallurgical-grade bauxite and alumina are purchased under long-term contracts and contract terms are normally not made public. Price for bauxite ore varies according to percent alumina content in the ore. USGS reports that the average value of U.S. imports of crude and dried bauxite (~30-50% alumina) was $37.10/metric ton in 2009, up from $35.92 in 2008. The price for refractory-grade bauxite (88% alumina) in 2009 ranged from $390 - $510/metric ton.

From 2000 to 2009, the demand for aluminum increased more than 35%, in 2010; it increased by 12%, compared to 2009. While bauxite is valued by its percent alumina content, alumina prices generally follow the trend of aluminum prices. Since the global economic downturn in late 2008 to early 2009 aluminum has followed a positive trend and is currently valued at approximately $2,500/metric ton.

This press release was reviewed by Bryan Miles, B.Sc. Geological Sciences, Professional Geologist, State of California 8739, a qualified person in compliance with national instrument 43-101. Further details of the 43-101 qualifying property report can be found at the following link http://bullionmm.com/dourave-brazil/niquelandia-project.html

About Bullion Monarch Mining
Bullion Monarch Mining Inc. is a publicly traded (OTCQB: BULM) (OTCBB: BULM) (FRANKFURT: BMJ) gold-focused exploration royalty company with additional interests in bauxite and oil-shale technology. The Company is engaged in a continual review of mining opportunities to create growth for shareholders. The majority of current royalty revenues are derived from a high-quality claim block located in Northeastern Nevada's Carlin Trend. Bullion Monarch's portfolio provides for direct leverage to commodity prices as well as the exploration potential of world-class ore deposits. Visit the Company website at www.bullionmm.com for more information.

"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995.
Certain statements contained in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Information contained in this report contains "forward-looking statements' which can be identified by the use of forward-looking terminology such as "believe", "expect", "may", "should", "up to", "approximately", "estimate", "likely", or "anticipates" or the negative thereof or given that the future results covered by such forward looking statements will be achieved. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only for the date the statements was made. Investors should carefully consider the preceding information as well as information contained in the Company's Form 10 Registration Statement before making any investment in the shares of the Company. Neither Bullion Monarch Mining Inc. nor its subsidiaries, undertake any obligation to update any forward-looking statements contained in this press release. This press release is for informational purposes only and is not and should not be construed as an offer to solicit, buy or sell any security.

Investor Relations Contact
Joseph Morris
info@bullionmm.com
(801) 426-8111


MarketWire

Comment on this story

Share