- Andromeda Metals’ (ADN) pre-feasibility study (PFS) has reinforced the potential for the Poochera Halloysite-Kaolin Project in South Australia
- The study has included a wet-processing method to produce premium grade refined kaolin clay
- The advantage of wet processing is it delivers better quality of kaolin clay and therefore higher revenues
- The study envisioned a mining rate of 500,000 tonnes per annum of raw material to produce 12.7 million tonnes over a 26-year mine life
- Andromeda expects selling price to be around $700 per tonne meaning it can expect to generate $4.1 million over the 26 years
- The company is now focusing on environmental impact assessments and the mining lease application
- Andromeda’s shares are currently trading flat at 6.8 cents each
Andromeda Metals’ (ADN) pre-feasibility study (PFS) for the Poochera Halloysite-Kaolin Project in South Australia has reinforced the project’s potential.
The PFS study builds on the updated scoping study (USS) that was announced inApril. The USS showed the potential Poochera has to become a long-term supplier of high-quality halloysite-kaolin.
The USS included a wet-processing for the production of premium-grade refined kaolin clay to meet the growing demand of high-value bright-white halloysite-kaolin for use in the ceramics industry.
The PFS has expanded the mine life to 26 years based on the updated mineral resource.
The study showed a mining rate of 500,000 tonnes per annum of raw material for the 12.7 million tonne target to be produced over 26 years. This will, on average, produce 233,000 tonnes per annum of refined premium halloysite-kaolin.
Andromeda said the selling price will be around $700 per tonne for the halloysite-kaoline blend. This means that for the entire mine life, the company could generate over $4.1 million.
What is the aim of the project?
The PFS was based on the initial mining of kaolinised granite as Direct Shipping Ore (DSO) and toll wet-refining overseas, which will then generate enough cashflow to construct an onsite wet-processing facility, during the second year of operation.
Production is aimed to convert to onsite wet-processing to remove the majority of the contained quartz sand in the kaolinised granite to produce concentrated kaolinitic product that is shipped in bulk for the final toll wet-refining overseas, in order to produce a premium bright-white halloysite-kaolin product.
The company evaluated both dry and wet processing at the site. The advantage of having wet processing is it delivers better quality of kaolin clay and therefore higher revenues.
Due to the wet processing, the company has introduced a hot drying stage which will comfortably meet the maximum shipping moisture contents. This added stage will also recover condensed water that will help reduce the external water demand and lower tonnage based transport and shipping costs, due to the reduced moisture content.
The processing is expected to create between 30 and 40 jobs once it begins operating. To benefit local employment, Andromeda claims it will hire locals that are within driving distance to the site.
The company is now focusing on the environmental impact assessments and mining lease application, which is part of the Definitive Feasibility Study (DFS). Commencement of site activity is aimed for early 2022.
Andromeda’s shares are trading flat at 6.8 cents each at 11:29 am AEST.