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  • Australian explorer, Andromeda Metals recently visited China to determine the market demand for halloysite-kaolin ore and dry-processed products
  • Three potential customers confirmed a strong and growing demand for raw ore to feed their processing plants due to a large supply gap
  • Testing dry-processed samples has confirmed the potential for Carey’s Well dry-processed material as a final product
  • Halloysite-kaolin ore and dry-processed products are valuable in the ceramic and petrochemical refining markets
  • A 100,000 tonnes per annum non‐binding offtake Letter of Intent for dry‐processed product has been signed by China Mineral Processing Group

Australian explorer, Andromeda Metals recently visited China to determine the market demand for halloysite-kaolin ore.

Following the visit three Chinese companies expressed interest in sourcing halloysite-kaolin ore, whilst a number of other companies have approved the dry-processed kaolin from the Carey’s Well deposit at Poochera.

Andromeda is hoping to make the Poochera Kaolin‐Halloysite Project economically viable. On June 25 2018, Andromeda and Minotaur Exploration entered into a joint venture (JV) over Minotaur’s Poochera tenements.

Under the JV terms, the company can acquire up to 75 per cent of the project by either sole funding $6 million over five years or by a shared decision to mine.

The main area of focus at Poochera is located 635 kilometres west from Adelaide, South Australia and 130 kilometres east from Ceduna. High quality halloysite-kaolin deposits occur across the entire project making it a globally significant region.

The domestic supply of high quality halloysite-kaolin has become very unreliable and limited in volume. Several wet-processing trials conducted on the Carey’s Well halloysite-kaolin ore in China has proved it can be used to produce a high quality product with an equally high value for the ceramic and petrochemical refining markets.

Dry-processed samples produced from Australian trials have been provided to a range of potential ceramic customers to determine whether it’s ‘market ready.’

China Mineral Processing Group has reportedly signed a non-binding Letter of Intent for offtake of 100,000 tonnes per annum. The company expects several other Chinese customers will follow.

Andromeda has reported additional ceramic industry application testing of the products are in progress with a many companies located in Japan and India.

An undisclosed, large Chinese company is evaluating the product as a ‘catalyst’ for the petrochemical industry.

A Scoping Study is currently in progress with the emphasis on direct shipping ore (DSO) verses dry-processed product options.

A high-level independent logistics study has been completed for the DSO option, with the dry-processed option details still to be incorporated.

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