8 May 2019


Lindian Resources Limited (“Lindian” or “LIN”) (ASX code LIN) announced on 10 April 2019 that it had signed an exclusive option agreement with KB Bauxite Guinea SARLU (“KB”) and its sole shareholder Guinea Bauxite Pty Ltd (“GB”) to acquire the Gauoal Bauxite Project (approximately 332km2 in Guinea) (“Project”). As part of the due diligence program, XRF results from samples have now been verified by independent assay verification confirming the high grade nature of the Project in line with other nearby production projects in Guinea. Key points to note:

a)Samples collected from initial site visit returned XRF analyser readings of up to 73.99% Al2O3 with 1.88% SiO2. These samples were sent to Bureau Veritas for confirmation. The results from Bureau Veritas showed a good correlation with the highest assay returning

67.5% Al2O3 with 0.47% SiO2. The 27 bauxite samples collected have averaged 56.6% Al2O3 with 2.25% SiO2 with the XRF and 53.57% Al2O3 with 1.82% SiO2 with the independent assays completed through Bureau Veritas. The results give the Company significant geological confidence as it moves to complete technical due diligence.

b)Lindian has an exclusive option to acquire an initial 51% interest in the Project through spending US$1m over 2 years into the ground with rights to move to 75%.

c)Highly prospective tenement that was mapped during colonial control over Guinea (in the 1950s) with proven bauxite mineralisation.

d)The Project is close to essential infrastructure, 64km from Sangaredi Railway and 155km from deep water Kamsar Port. Infrastructure has always been a key requirement of all bulk ore projects and the Project is strategically placed given its location in an existing mining province.

e)Directly adjoins two world class deposits (see map below) – Alliance Mining Commodities Limited’s (AMC) Koumbia Bauxite Project (www.amcbauxite.com.au) and Société des Bauxites de Guinée’s (CBG) joint venture between the Government of Guinea and the Halco Joint Venture (Alcoa, Rio Tinto and Dadco).


f)Guinea accounts for approximately 40% of global bauxite reserves and has the world’s largest bauxite resources with over 40 billion tonnes. Mining accounts for over 70% of the country’s exports with key mining “majors” present in country including Rio Tinto, Rusal, Alcoa, Weiqiao, Chalco and Mubadala (EGA).

g)Guinea produces high quality bauxite due to its tropical location and the inherent nature of the in situ bauxite. The bauxite is easy to mine (DSO) and does not require any dry or wet beneficiation process and has a low reactive silica content and high extractable aluminium.

h)Former CEO and Project Director of AMC (owner of the adjacent Koumbia Bauxite Project) Bob Adam has been appointed as technical consultant for Lindian to review and progress the Gauoal Bauxite Project opportunity as well as advance the exploration and development of the Company’s Lushoto and Pare bauxite projects in Tanzania. Bob has wide ranging experience in the Guinean bauxite industry in particular, and is acknowledged as a leader in the field worldwide. He has strong links with both the Guinean Ministry of Mines and Geology, and with Chinese refiners. Bob is currently on site in Guinea completing the initial due diligence on the Project.

i)Potential for Lindian to be a world first producer of high grade bauxite ore from both the west and east coast of Africa offering potential off-taker and strategic partners a unique ability to capitalise on a number of logistical advantages.

Lindian Director Steve Formica commented: “These are very compelling first pass assays and they are a very important step in our due diligence program which is progressing very well under the stewardship of Bob Adam. We will provide a more comprehensive update very soon on progress in Guinea as well as report on the excellent progress we are now making in Tanzania with our drilling program.”

Figure 1 Gauoal Project Location map showing rail road and port infrastructure


Figure 2 Gauoal Bauxite Project tenement boundary in red – surrounding projects owned by AMC (top left) and CBG are shown in blue

Figure 3 Location of samples collected coloured by their hand held xrf assay grades (closely correlated by subsequent assay results)