-unusual find creates stir in mining circles
COMMERCIAL quantities of high-grade refractory bauxite  have been found at Bonasika on the left bank of the Demerara River just opposite Timehri, a bauxite company named First Bauxite Corporation (FBC)has reported.
The  find in this close-proximity  area, and in surprising quantities,  has caused the company to ask the government for a  mineral agreement  and  whatever fiscal incentives are available so that they  can put arrangements in place  to commence mining by  2012.
FBC had  been prospecting for bauxite for the past six years in Bonasika, an area where some amount of  bauxite was discovered over 70 years ago, without the full extent of the deposits being realized.
The Canadian-based Company has submitted a full feasibility survey to the government and the Guyana Geology and Mines Commission (GGMC), which says that it has found deposits which could support commercial production for over eight years at 100,000 tonnes of bauxite per year.
GGMC Commissioner, Mr. William Woolford early last week confirmed  receipt of the feasibility report indicating the amazingly high quality of bauxite at  Bonasika so close to the mouth of the Demerara River and  far away from the traditional areas of known high-quality bauxite deposits.
But where is Bonasika?
Said the Commissioner by way of an explanation: “Imagine you are travelling from Vreed-en-Hoop to Parika, and just a while, before you reach Parika, you make a left turn. There is no road there, but you go through there and you find Bonasika.”
The area is just one hour’s travel away from Georgetown, a mere 26 or so miles from the Atlantic Ocean, and 14 distant from the Demerara River wharf facility.
Commissioner Woolford  said that bauxite was discovered  within this coastal area  in the 1940s, but that the quantity was never really pinned down and finalized.
“DEMBA, a subsidiary of ALCAN,” he said, “discovered bauxite  at Bonasika and explored  between 1937 and 1944. They knew that bauxite was there but  never thought that it could be developed;  they did not realize the extent and the quality.”
He said FBC  had started exploration six years ago.
“They  went in to see if they could get a small operation going. But  as they worked at the small operation, they realized that more material was there than they had initially thought,  so it turned  out to be a bigger operation than they had envisaged,” he said.
FBC, he disclosed,  had found deposits of agglomerated high alumina calcined bauxite, over 60% alumina and had  made these new deposits possible for development .
There  is bauxite there that looks feasible to develop. The feasibility study says so, and it looks positive.
The Company has  projected that the Bonasika mine could support production over eight years at 100,000 tonnes per year and it looks very good, the Commissioner disclosed.
As a source of comparison, Linden once produced 300,000 tonnes per year, but is now down to less than 200,000 tonnes per year.
Mr. Woolford stressed that the Bonasika discovery was of great economic significance.
“First off, up to weeks ago, when people asked you about bauxite in Guyana, you would think: Linden and/or Kwakwani. Bonasika was unknown. Now you have to add Bonasika,” he said.
The consequent availability of over 200 jobs are just a few of the benefits to be achieved by locals, if all goes as planned for FBC up to 2012, he added.
The Company will use the Demerara River for access, so there will be development in this area so employees  could  be drawn  from the East Bank Demerara  up to Timehri, or from along the Essequibo Coast or from Bartica.
Woolford  said that the Bonasika discovery should be an eye-opener for the large bauxite companies, as well as local geologists, since it demonstrated that  areas in Guyana which  people had ignored when searching  for bauxite are now proving themselves.
Commenting on the current status quo with reference to bauxite from Bonasika,  he disclosed that  the company has  applied for fiscal incentives such as tax holidays.
The company has said that the award of these fiscal incentives will influence how financing will  be obtained for the  project.
A US$120M capital investment is required, and according to the company, that USD investment  will  come easier if fiscal incentives are granted.
The projections are construction period from third quarter 2010 to fourth quarter 2011, and commissioning in this fourth quarter.
The year 2012, if all goes as planned, will be the first year of commercial production.
The company has described the Bonasika project as follows: “Bonasika Project, High Grade Refractory Bauxite from Guyana: “An old favorite with a new address.”