- Andromeda Metals (ADN) is expanding the scope of its Definitive Feasibility Study (DFS) for its Great White Kaolin Project in South Australia
- The expansion follows ADN signing an agreement to supply its kaolin to a coatings and polymer producer
- The DFS will now be delayed, as ADN works to incorporate the expanded agreement into it mining schedule, plant design and logistics operations
- Previously, the DFS at Great White had been focussed on supplying Andromeda’s kaolin to the ceramics market
- Company shares are down 8.89 per cent at 20.5 cents each at 11:54 am AEST
Andromeda Metals (ADN) is expanding the scope of its Definitive Feasibility Study (DFS) for its Great White Kaolin Project.
The asset is located in South Australia and ADN owns a 75 per cent stake in the project, while Minotaur Exploration owns a 25 per cent stake.
The materials stock announced on Monday it would expand the DFS for Great White to include a new offtake agreement.
It comes after ADN signed a deal with Jiangsu Mineral Sources International Trading Co (MSI) to supply its kaolin to the polymer and coatings markets.
Specifically, Andromeda committed to selling 70,000 tonnes per annum of refined high-purity kaolin, with the possibility of supplying more once production doubles to the full capacity of 500,000 tonnes per annum.
Andromeda said expanding the DFS to include these new markets and offtake agreement would delay the study from being finalised until Q4 2021.
Amongst the work needed to be carried out was an update to the company’s mining schedule and logistics plan, adjustments to the existing plant design and generation of a new milling and bagging plan.
Despite the delay, ADN said it still hoped construction would begin at Great White in mid-2022, pending the DFS and mining lease being completed.
Before this deal was signed, ADN’s DFS for Great White had been focused on the supply of its kaolin to the ceramics market, with an agreement signed with a porcelain manufacturer in March.
Following today’s update, shares in Andromeda Metals were trading down 8.89 per cent at 20.5 cents each at 11:54 am AEST.