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Andromeda Metals (ASX:ADN) - Managing Director, James E Marsh (second right) - The Market Herald
Managing Director, James E Marsh (second right)
Source: Small Caps
  • Andromeda Metals' (ADN) aircore drilling program has delivered significantly high bright white kaolinised intersections from the Mount Hope Kaolin Project
  • A total of 40 holes for 1383 metres were drilled across the historic 12.26 million tonne Mt Hope kaolin resource
  • This mineral resource was estimated in 1973 so does not comply with the 2012 JORC Code
  • Andromeda will use these results to prepare a JORC-compliant mineral resource
  • A significant portion of Mount Hope shows very low iron contaminants and halloysite levels perfectly suited to coatings and polymers applications
  • As its Carey's Well deposit suits the ceramics industry, this presents an opportunity for market diversity
  • Company shares are up 8.70 per cent and are trading for 5 cents each

Andromeda Metals (ADN) has announced results from an aircore drilling program conducted at its Mount Hope Kaolin Project in South Australia.

A total of 40 holes for 1383 metres were drilled across the historic 12.26 million tonne Mt Hope kaolin resource. This mineral resource was estimated in 1973 and doesn't meet the 2012 JORC Code requirements.

Pleasingly, drilling encountered mineralisation at an average depth of 10 metres and has an average thickness of just under 15 metres.

The kaolin mineralised zone is open to the south and the thickness and quality presents an "exciting opportunity to be explored."

The company also intercepted significant intersections of more than 20 metres in thickness of white kaolinised gneiss to the south of the 1973 resource.

Results show that over 65 per cent of the 159 samples collected have a high bright white reflectance value (above 80 ISO brightness), while 20 per cent showed an ultra-bright white (more than 84 ISO brightness).

Additionally, halloysite is present in 10 per cent of the samples collected.

Andromeda is now preparing a mineral resource estimate for Mount Hope to be compliant with the 2012 JORC Code.

Market opportunity

Some areas of the Mount Hope deposit show iron levels at a low level rarely found anywhere in the world. This is considered very desirable for coating and polymer applications where the iron causes colour and stability problems.

The fact these areas within Mount Hope also show minimal halloysite is supposedly an advantage in the case of it not being desirable for coatings applications.

On the flip side of this, some parts of the deposit show high levels of halloysite that are similar to the company's Carey's Well deposit within its Poochera Joint Venture Project with Minotaur Exploration. High levels of halloysite could be selectively mined to supply the ceramics industry.

As Carey's Well is perfectly suited to the ceramics industry, adding an upgraded resource from Mount Hope that can be sold into a different, yet equally high-value market, will give Andromeda significant diversity and a wealth of opportunities.

According to Markets and Markets, the paints and coatings sector is expected to grow at a compound annual growth rate (CAGR) of 5.4 per cent to US$200 billion (roughly A$286.1 billion) by 2024.

Therefore, Mount Hope provides Andromeda with an excellent opportunity for market diversity and to supply the growing demand of paints, coatings and ceramics.

Company shares are up 8.70 per cent and are trading for 5 cents each at 12:49 pm AEST.


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