- Suvo Strategic Minerals' (SUV) shares have skyrocketed 1700 per cent after commencing trading on the ASX this morning
- This follows a heavily oversubscribed $5 million capital raise through the issue of 250 million shares priced at two cents each
- The kaolin and silica sand explorer will focus on its White Knight Kaolin Project and the Nova Silica Sands Project, which are both located in WA
- White Knight has a maiden JORC inferred resource of 35.1 million tonnes of bright white kaolinised granite
- The project has yielded exceptional ISO brightness results, which will be utilised to access the high-end global ceramics, fibreglass and paper industries
- The Nova Project has outstanding potential economics and low capital requirements
- Suvo plans to conduct a drilling program at Nova, which will hopefully be followed by a maiden JORC resource in the December quarter
- Company shares are trading at 1700 per cent in its first morning on the ASX
- Shares are going for 3.5 cents
Suvo Strategic Minerals' (SUV) shares have skyrocketed 1700 per cent after officially commencing trading on the ASX this morning.
The WA-based kaolin and silica sand explorer completed a heavily oversubscribed $5 millioncapital raising. Suvo issued 250 million shares at two cents each to investors.
Based on the capital raising price, Suvo has a market cap of $10.5 million.
"We would like to welcome all new Suvo shareholders and express our thanks for the exceptional support we have received during the listing process," Executive Chairman Robert Martin said.
"We believe the company has two potential world-class near-term producing assets that enjoy commodities that are in high demand," Robert added.
Now that Suvo has commenced trading, its near term goal is to accelerate the development of its existing assets to unlock value for new and existing shareholders.
White Knight Kaolin Project
The White Knight Kaolin project is a high-grade kaolin deposit located in the wheatbelt region of Western Australia. The project comprises a maiden JORC inferred resource of 35.1 million tonnes of bright white kaolinised granite.
Metallurgical testing has outlined an exceptional average ISO brightness of more than 80 per cent and yield of 40 per cent. Drill hole MAC01 has produced ISO brightness of 89.2 per cent, Fe203 of 0.26 per cent, Ti02 of 0.36 per cent and a yield of 62 per cent.
Further, Fired Brightness Tests and L* Brightness Tests for hole MAC016 have recorded outstanding qualities of 95.2 per cent and 97.5 per cent respectively.
Suvo will use the significant results to access the high-end global ceramics, fibreglass and paper industries — all of which attract premium pricing.
Additional metallurgical test work is being conducted in the U.K. and results are expected later this month.
The company will conduct further exploration over its 3555-hectare tenure which is aimed at increasing the resource size. This is set to unlock significant potential as only five per cent of the granted tenure has been drilled thus far.
Realising the quality and potential that White Knight holds, Suvo has applied for a further 552 square kilometres in the same vicinity as its current tenure.
Suvo has already commenced discussions with potential offtake partners and has engaged Dr Ian Wilson, a world-renowned expert, to assist with developing and commercialising the White Knight Kaolin Project.
Nova Silica Sands project
The wholly-owned Nova Silica Sands project has the potential to be a large-scale silica sands deposit. It is located in the Gin Gin Scarp near Eneabba in Western Australia.
Pleasingly, preliminary test work has confirmed the project's raw feedstock grades are comparable to that of industry peers.
While the project holds large-scale potential, it also has low capital requirements and low environmental impact mining propositions.
Suvo plans to conduct a resource identification drilling program in the current quarter which will hopefully be followed by a maiden JORC resource in the December quarter.
Simultaneously, Suvo will carry out metallurgical test work to identify prospective customers, potential pricing points and to provide important data for future feasibility studies.
End-user analysis samples will be prepared and dispatched to potential offtake partners later this year.
Additionally, the kaolin and silica sands company has applied for three more tenements to form a 165 square kilometre area. So far, one out of three has been granted and the company hopes the other two will be approved by the end of September.
In September, environmental flora and fauna surveys are planned and are expected to be completed in March next year.
Company shares are trading at 1700 per cent in its first morning on the ASX. Shares are going for 3.5 cents each at 11:34 am AEST.