High-Grade Bauxite with Extractable Alumina Up to 42.1% Positions Equinox as a Key Player in Critical Minerals
Equinox Resources (ASX:EQN) has announced a significant discovery at its Campo Grande Project in Bahia, Brazil, confirming the presence of refinery-grade bauxite with exceptional alumina-to-silica ratios and valuable gallium concentrations, strengthening the company's position in the critical minerals sector.
Recent laboratory analysis has validated high-quality bauxite with extractable alumina reaching up to 42.1% and alumina-to-silica ratios as high as 9.0. These metrics are considered premium in the industry, as they indicate material that can be efficiently processed through the low-temperature Bayer process with reduced energy and reagent consumption.
Standout drill results include:
- 7m at 39.2% Extractable Alumina with Al/Si ratio of 6.8 (CG_AD24_074)
- 6.3m at 36.9% Extractable Alumina with Al/Si ratio of 4.0 (CG_AD24_067)
- 4m at 36.3% Extractable Alumina with Al/Si ratio of 5.0 (CG_AD24_076B)
The discovery is further enhanced by significant gallium concentrations up to 106.5 g/t Ga₂O₃, providing substantial by-product potential during the alumina refining process. This dual-commodity opportunity considerably enhances the project's strategic and economic value.
"Recent results confirm the presence of refinery-grade bauxite, elevated gallium, and rare earth elements within the Campo Grande Project area. This project is located along a key critical minerals trend in Brazil, at a time of increasing market focus on secure and independent sources of alumina and strategic metals." – Zac Komur, Managing Director
Understanding the Bayer Process: Key to Unlocking Bauxite Value
The Bayer process is the industry-standard method for extracting alumina from bauxite ore and represents a critical link in the aluminum production chain. At Campo Grande, laboratory testing specifically mimicked Bayer process conditions to determine extractable alumina – the portion that can be economically recovered during refining.
Unlike total alumina content, extractable alumina specifically measures the alumina that can be dissolved during caustic digestion under heat and pressure. This distinction is crucial for refineries, as only this extractable portion contributes to actual alumina yield and plant economics.
Similarly important is the alumina-to-silica (A/S) ratio, which Campo Grande's results show ranges from 5 to 9. Higher A/S ratios indicate less reactive silica, which reduces caustic soda consumption in refineries and minimises waste production. Industry benchmarks typically consider A/S ratios above 3.5 as economically favourable, with Campo Grande's results significantly exceeding this threshold.
The presence of gallium, which concentrates in the caustic liquor during the Bayer process, adds another valuable recovery stream. Gallium has been designated a critical mineral by major economies due to its essential role in semiconductors, defence systems, and clean energy technologies.
Strategic Location and Infrastructure Advantages
Campo Grande's strategic location provides significant logistical advantages that could translate to lower development and operating costs. The project benefits from:
- Proximity to the West-East Integration Railway corridor
- Access to established highway networks
- Available power infrastructure
- Nearby port facilities for potential export operations
These infrastructure advantages position Equinox to potentially develop a cost-efficient operation with multiple transport options for moving product to market.
The project sits along the same bauxite-gallium trend as Brazilian Rare Earths' Amargosa and Pelé Projects, confirming the regional significance of this emerging critical minerals province. Importantly, Equinox owns 100% of the Campo Grande Project with no royalties, maximising future economic returns.
Multi-Commodity Potential Enhances Investment Case
Campo Grande presents a compelling investment case based on several key factors:
-
High-Quality Bauxite Resource: Refinery-grade bauxite with favourable extractable alumina levels and low reactive silica, positioning it as premium feed for alumina refineries.
-
Critical Mineral Exposure: Significant gallium content provides exposure to a high-value critical mineral facing supply constraints due to Chinese export restrictions implemented in 2023.
-
Additional REE Potential: Earlier drilling confirmed monazite-hosted rare earth elements across the broader Rio Negro trend, adding further resource potential.
-
Strategic Location: Excellent infrastructure access reduces capital requirements and improves operational economics.
-
100% Ownership: No royalties or joint venture considerations, providing maximum leverage to project success.
Why Investors Should Follow Equinox Resources
Equinox Resources has positioned itself at the intersection of several powerful market trends – the global transition toward secure supply chains for critical minerals, growing aluminum demand for lightweight transportation and construction, and increasing prices for specialty metals like gallium used in high-tech applications.
With China controlling approximately 90% of global gallium production and implementing export restrictions in 2023, Western economies are actively seeking alternative sources. Campo Grande represents a potential source of both high-quality bauxite and gallium that is politically secure and strategically aligned with Western supply chain priorities.
The project's combination of high-grade extractable alumina, favourable alumina-to-silica ratios, gallium credits, and excellent infrastructure creates a compelling value proposition. As Equinox advances the Campo Grande Project through further exploration and economic studies, investors have an opportunity to gain exposure to multiple critical minerals with a single investment.
With assay data produced by reputable laboratories using industry-standard methods that simulate actual refining conditions, confidence in the technical fundamentals remains high. For investors seeking exposure to the critical minerals sector, Equinox Resources offers a compelling opportunity with its strategically positioned Campo Grande Project.
Want to Invest in High-Grade Critical Minerals with Premium Economics?
Discover how Equinox Resources is positioning itself as a key player in the critical minerals sector with its Campo Grande Project, featuring exceptional bauxite grades, premium alumina-to-silica ratios, and valuable gallium concentrations. With 100% ownership, strategic infrastructure advantages, and exposure to multiple high-demand commodities, Equinox offers a compelling investment opportunity in secure supply chains for critical minerals. Visit Equinox Resources' website to learn more about this exciting project and stay updated on the company's progress.
