Alliance Mining Commodities Ltd (AMC) is a privately-owned company that has been granted a Mining Concession by Presidential Decree for the development of the Koumbia Bauxite Project in the Gaoaul Prefecture in the northwest of the Republic of Guinea in West Africa. The Government of Guinea holds a 10 percent free carried interest in AMC SA, the subsidiary which holds the concession.
Koumbia has a JORC compliant Mineral Resource currently estimated at greater than 1.5 Billion tonnes. This Resource base makes the Koumbia Project a World-class bauxite development. The Resource is flat lying, at surface and exhibits a high degree of continuity and low variability, making it simple to mine relative to other deposits of this size globally.
Marketed as a low temperature Al2O3 (THA) product, high-quality direct shipping ore from the Koumbia Mine is poised to exploit the expanding global demand for bauxite. The Koumbia ore is high in available alumina and low in reactive silica, making it a high quality, direct shipping ore that closely matches that of Compagnie des Bauxites de Guinée (“CBG”), one of the world’s largest bauxite mining operations, which is located proximal to the Koumbia Project. As a result, Koumbia bauxite will be exported as a premium value product into the global market.
AMC has issued an Ore Reserve Statement for Plateau 7 only, which currently has a Mineral Resource Estimate of 116 Mt. The Ore Reserve is 106 Mt, representing a Resource to Reserve conversion of 91%. The expected Ore Reserve of high-grade material for all plateaux is expected to be over 800 Mt; sufficient for a 50-year plus mining operation.
The Koumbia Project is planning a simple, low cost development, which will target an 11Mtpa (wet) production rate, ramping up over a 12-month period. Due to the size of the current mineral resource base, there is strong potential to expand the operation significantly during the early years to a capacity well in excess of the initial production rates.