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- Suvo Strategic Minerals (SUV) has signed a mining access agreement at its White Knight Kaolin Project as the company looks to expand its kaolinized granite resource
- The deal was made with the landowners and occupiers of the tenement, which hosts a maiden JORC-compliant inferred resource of 31.5 million tonnes of bright white kaolinized granite
- Drilling work is expected to begin shortly, the results of which will be used to determine an upgraded resource estimate
- Samples will be sent to the United Kingdom for metallurgical test work, and to potential end-users with the aim of securing off-take agreements
- Early last week, two companies linked to Suvo released financial reports for FY20
- Both businesses, which are linked to the ASX-lister’s Nova Silica Sands Project and the White Knight Kaolin Project, reported a profit during the financial year
- Shares in Suvo Strategic Minerals (SUV) were suspended on Friday last week, and last traded at a price of 6.4 cents per share
Suvo Strategic Minerals (SUV) has signed a mining access agreement at its White Knight Kaolin Project as the company looks to expand its kaolinized granite resource.
The Perth-based explorer signed the deal with the landowners and occupiers of the tenement, which hosts a maiden JORC-compliant inferred resource of 31.5 million tonnes of bright white kaolinized granite.
It comes ahead of a proposed drilling program, for which drilling contractors and support personnel have already been assigned. The results of the program will be used to determine an upgraded mineral resource, scheduled for completion in December this year.
Bulk samples of raw material will then be shipped to the United Kingdom for metallurgical test work, which will be used to inform end-user specifications and product pricing thereafter.
In addition, processed samples will be sent to these potential end-users with the aim of securing offtake agreements.
Environmental and economic feasibility studies are also expected to begin in conjunction with the drilling work.
According to today’s announcement, the environmental study will underpin an application for a mining license, while the feasibility study will assess the economic and infrastructure requirements needed to establish a wet processing and beneficiation plant.
Robert Martin, Executive Chairman of Suvo Strategic Minerals, said the access agreement is an exciting outcome for the company.
“…having reached this critical milestone at such an early stage places Suvo in a unique position of being able to progress economic feasibility studies, mine planning and environmental aspects of the project with the utmost confidence in the ability to fully access and mine the tenements once completed,” Robert explained.
“There is only one other producing kaolin mine in Australia and we are targeting to be the second,” he added.
Kaolin has been used in a variety of applications in the past, but there is an increasing interest in its use as a feedstock for the production of high purity alumina (HPA), which is in turn used to manufacture lithium-ion batteries.
There is no shortage in global demand for the mineral, but with the added interest in the future of electric vehicles – thanks in part to Tesla and its recent Battery Day – one could be forgiven for expecting this demand to grow substantially.
FY20 reports
Early last week, two companies linked to Suvo released financial reports for FY20.
Both businesses, which are linked to the ASX-lister’s Nova Silica Sands Project and the White Knight Kaolin Project, reported a profit during the financial year.
Watershed Enterprise Solutions
Over the period, Suvo’s Watershed Enterprise Solutions subsidiary brought in over $59,000 in net profit after tax.
The subsidiary also went cashflow-positive by $94,546 during the period thanks to a $150,000 option fee. Over FY20, Watershed also made over $55,000 in payments to suppliers and employees.
At the end of the financial year, Watershed had just over $800 in the bank — an increase on FY19’s $100 in cash reserves.
Mt Marshall Kaolin
Meanwhile, Suvo’s Mt Marshall Kaolin subsidiary tabled $85,649 in profits at the end of FY20.
The business also received a $150,000 option fee and paid out over $63,000 in supplier and employee payments.
This meant Mt Marshall went cashflow-positive by $86,589 over the 2020 financial year.
Come June 30, the Suvo subsidiary had $73,814 in cash reserves. At the same time last year, Mt Marshall held just $300 in cash and cash equivalents.
Shares in Suvo Strategic Minerals (SUV) were suspended on Friday last week, and last traded at a price of 6.4 cents per share.
