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- Over the December quarter, Andromeda Metals (ADN) advanced the Great White Kaolin Project in South Australia
- The project is held in a joint venture with Minotaur Exploration who now owns a 25 per cent interest after Andromeda increased its stake to 75 per cent
- The Great White project’s mineral resource was upgraded by 33 per cent and now sits at 34.6 million tonnes of bright white kaolinised granite
- The joint venture partners also saw positive results from testing the suitability of their halloysite-kaolin in the concrete and coatings industry
- Now, a definitive feasibility study is being conducted for the project and is expected to be completed in the June quarter
- ADN spent $301,000 on operating activities and just over $1 million on investing activities
- However, it ended the quarter with a healthy sum of $7.9 million in cash after raising roughly $5.5 million
- Andromeda is trading 4.55 per cent lower at 26.3 cents
Andromeda Metals (ADN) has posted a recap of the December quarter, which primarily focused on the Great White Kaolin Project in South Australia.
Great White
The Great White Kaolin Project is h eld in a joint venture (JV) with ASX-listed, Minotaur Exploration (MEP). As part of the JV, Andromeda and Minotaur formed a 50:50 spin-off company called “Natural Nanotech”.
This project, formerly known as the Poochera Halloysite-Kaolin Project, became part of a heads of agreement JV with Minotaur in April 2018. The deal enabled ADN to spend $3 million to earn a majority 51 per cent interest which it did in March 2020. However, this was soon increased to a 75 per cent interest in the December quarter.
Importantly, the JV partners updated the Great White Kaolin Project’s mineral resource estimate which replaced the previous one announced in December 2019.
The mineral resource now sits at 34.6 million tonnes of bright white kaolinised granite with an ISO Brightness cut-off of 75. This new resource represents a 33 per cent increase from the previous estimate and is capable of producing 17.4 million tonnes of minus 45-micron quality kaolin product.
Additionally, it contains two sub-domains, including a halloysite zone of 15.9 million tonnes and an ultra-bright high-purity kaolin zone of 1.2 million tonnes.
Over the most recent quarter, Andromeda progressed testing of halloysite-kaolin in concrete and coatings applications.
In November, ADN received pleasing results from testing the halloysite-kaolin from the Great White project on different concrete application mix designs. The results showed the product improved the performance of the concrete. Supplying its product to the wider concrete industry presents a significant domestic and global market opportunity for halloysite-kaolin.
Additionally, the product was tested in coating applications and results showed ADN’s halloysite-kaolin has excellent potential in high-value coatings and polymer markets.
Currently, Andromeda Metals is focused on progressing the definitive feasibility study for the Great White project and completion is expected in the June quarter.
Financials
During the December 2020 quarter, Andromeda burnt $301,000 on operating activities with a hefty amount more being allocated towards staff and admin costs compared to the September quarter.
Over $1 million was invested in property, plant and equipment, and exploration and evaluation. However this represents less than half the amount allocated to investing activities in the previous quarter.
Andromeda raised over $5.5 million through the exercise of over 444.6 million ADNOB listed options.
At the end of the quarter, Andromeda had over $7.9 million in cash — a healthy increase from the $3.6 million it started with.
Andromeda is trading 4.55 per cent lower at 26.3 cents at 11:16 am AEDT.
