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- Andromeda Metals (ADN) has updated the market on its scoping study to determine an onsite kaolinised granite wet-processing operation
- The scoping study is determining whether the company can develop a wet-processing operation to produce halloysite-kaolin
- The product will come from the proposed open-cut mine at the Carey’s Well deposit located on the Poochera Project in South Australia
- Andromeda has looked into wet-processing and has found it improves the economics of Poochera
- Wet-processing allows for bulk transport and shipping of filter cake, which boasts lower costs per tonne than bagged transport from the dry-processing option
- Andromeda is expecting to complete the pre-feasibility study by the second quarter of 2020 to then prepare mining proposals
- Andromeda Metals is up 3.03 per cent and trading for 3.4¢ apiece
Andromeda Metals (ADN) has updated the market on its scoping study to determine an onsite wet-processing of kaolinised granite.
The scoping study is aimed at determining if it is possible to directly ship and have a wet-processing operation, which will produce high-quality halloysite-kaolin.
The product will come from the proposed open-cut mine at the Carey’s Well deposit located on the Poochera Project in South Australia.
This update builds on the highly positive original scoping study (OSS) which was released in September 2019. It was based on dry-processing on site and confirmed the potential for Poochera to be a long-term supplier of the product.
What is Halloysite-Kaolin?
Well, Halloysite-Kaolin is an unusual type of kaolin which forms naturally into nanotubes. This makes it valuable for other applications and makes it a very high purity feed for high-purity alumina (HPA).
Andromeda Metals aims to get halloysite-kaolin onto the market.
“The world market is growing and the world supply is falling, so it means there is a shortage here,” Managing Director James Marsh told Proactive Investors.
Historically, kaolin is used in ceramics for very high-quality porcelain.
However, Andromeda’s halloysite kaolin can also be used in a range of industrial applications including as a catalyst for breaking down petrochemicals and to produce carbon nanostructures for the battery industry.
Production
The updated scoping study considers the first phase of Direct Shipping Ore (DSO) and toll wet-refining overseas to generate early funds. The funds will be used to cover the majority of the costs with the construction of an onsite wet-processing facility during the second year of operations.
Production is then scheduled to convert to onsite wet-processing of mined kaolinised granite to remove the majority of the contained quartz sand, which will generate significant transport and shipping savings.
The kaolinitic product will be bulked shipped in filter cakes rather than in bags to produce a premium bright-white halloysite-kaolin product.
Filter cake is formed by the substances that are retrained on a filter. The filter cake grows in the course of filtration and becomes “thicker” as particulate matter is retained.
Both the initial bulk of DSO material and wet-processed bulk filter cake product will be shipped through existing, or under development, port facilities.
Wet-Processing vs Dry- Processing
The wet-processing allows for bulk transport and shipping of filter cake, which has a lower cost per tonne than the bagged transport from the dry-processing option.
The prime advantages identified of wet-processing over dry-processing at site is that it delivers improved recoveries of refined kaolin clay material made available for sale.
Hence why it generates considerably higher revenues. In addition, the wet-processing provided lower processing costs.
“These advantages are partially offset by increased transport and shipping costs on account of the increased moisture content in the kaolin material shipped as noted above and a modest increase in capital costs for the wet-processing plant,” the company said.
Water Supply
The wet-processing plant is designed to minimise water consumption as most water is recycled within it.
Water is required to stop dust on the internal mine haul roads, stockpile areas and in the site offices and facilities. Water used for dust suppression can be minimalised by using dust suppression chemicals.
Updated scoping study results
In the updated study, a mining rate of 500,000 tonnes per annum of raw material for the 7.6 million tonne production target over a 15-year mine life has been assumed.
The project is expected to create around 30-40 jobs once the wet-processing plan is operating, with most employees employed locally.
The wet-processing results will be incorporated into the pre-feasibility study.
What’s next?
Andromeda is expecting to complete the pre-feasibility study by the second quarter of 2020. It will then conduct environmental impact assessments and prepare a mining proposal applications.
If everything goes to plan, the company is expecting operations to be up and running by late 2021. However, due to the COVID-19 impact and affect it has had around the globe, there could be delays in this process.
Poochera Halloysite-Kaolin Project
Poochera covers two main geographic areas, both located in the western province of South Australia. The Carey’s Well deposit is located near Poochera on the western part of the Eyre Peninsula of South Australia.
The project is a joint venture between Andromeda and Minotaur Exploration, however, Andromeda can earn up to 75 per cent of the project.
The company has been in discussions with the management of several wet-processing facilities in China and Japan.
Andromeda Metals is up 3.03 per cent on the market this afternoon, trading for 3.4¢ apiece at 2:05 pm AEST.
