This link is to a Hot Copper post, a research summary by an Andromeda shareholder who is an engineer and has been analysing the company for two years. He is in regular contact with the MD and in general, his analysis and numbers are quite good.
This link is to the Webinar presentation delivered by James Marsh last Friday. He speaks very quickly and has a Welsh accent, but he knew he had to deliver a lot of information in a short time-frame. It is well worth listening a couple of times to understand what he is saying about the Hammerhead Kaolin project and its potential in the concrete industry. I have spoken with building industry people and the improvement of the kaolin additive is significant and hence the cost of the additional input would be insignificant compared to the cost savings and strength benefits. At $4000 per tonne, this would be a very lucrative market to supply from Hammerhead, which has 18m tonne resource and several decades worth of supply.
Summary of Company activities for the June quarter:
Poochera Halloysite-Kaolin JV (right to earn up to 75% interest)
Mount Hope Halloysite-Kaolin Project (100% ADN owned)
Eyre Peninsula Gold Joint Venture
Natural Nanotech JV advances Halloysite uses
Appointment of Internationally Experienced Marketing Services Provider
Positive Results from Concrete and Coatings Application Testing
Halloysite-Kaolin Testing for Concrete Applications
High-Purity Kaolin Testing for Coating and Polymer Applications
Andromeda Metals Limited (ASX Code: ADN, Andromeda, the Company) is pleased to announce that the Company has appointed Taylor Collison Limited as its corporate advisor to assist with a range of corporate initiatives as the Company advances the Great White Kaolin Project through completion of final feasibility studies, obtaining off-take agreements, implementation of project finance and construction of the Project.
The Company has elected to appoint Taylor Collison based on its significant M&A and ECM corporate advisory experience, its expertise in the natural resources space, its presence in South Australia, and close working history with the Company.
Managing Director James Marsh stated, “We are very pleased to be working with Taylor Collison during this next exciting phase of the Company’s evolution. Taylor Collison is a leading Australian financial services firm and, having its history firmly based in South Australia, is well-aligned to Andromeda’s South Australian focus.”
Chairman Rhod Grivas added, “We are delighted to have Taylor Collison supporting the Company and this appointment extends our collaboration with them at a significant point in Andromeda’s journey as we progress towards production.”
Taylor Collison is a leading non-bank financial services firm providing a suite of services across equity capital markets (for corporate, institutional and retail clients) and corporate transactions. It has extensive corporate advisory expertise across various sectors in the areas of mergers, acquisitions, asset and business sales, joint ventures and partnerships. It has relevant experience in the natural resources sector, having led capital raisings for companies such as Rox Resources, Mithril Resources, Chesser Resources and Egan Street Resources (where it also advised on the recent acquisition by Silver Lake Resources).
Drilling underway at Wudinna Gold Project
VIDEO INTERVIEW WITH MANAGING DIRECTOR
Andromeda Metals Limited (ASX: ADN, Andromeda, the Company) would like to advise of a video interview conducted by the Company’s Managing Director James Marsh which has been released across various media platforms.
A further update in a series of Coffee with Samso Rooster Talk interviews titled “The Art of Creating Kaolinite that Pays” has been released on 3 September 2020 with the link to the video as follows:
The video link is available to access on the Company’s website.
A summary of the key areas discussed during the video interview is provided below.
New Project Name
It has been agreed to rename the Poochera Project as the Great White Kaolin Project and also individual deposits and prospects within the project location in order to assist in removing confusion with respect to the Poochera name when describing the Project which reaches beyond the Poochera district. A theme based on sharks and rays found in Australian waters was chosen that has more connection with the location being the Eyre Peninsula of South Australia.
Andromeda has engaged specialist commodity service provider Conrad Partners to support the Company with the implementation of its Asian marketing strategy. A key component of this will be the conversion of the current Letters of Intent for offtakes of refined product signed by a number of previously identified Chinese ceramic manufacturers into binding supply contracts. Conrad personnel, most of whom are based in mainland China, will work closely with Andromeda staff to effect these binding contracts as a priority in addition to the locking in of contracts for the processing of DSO material with identified toll refiners in China and other potential Asian locations.
Approximately 10 tonne of commercially refined material sourced from the Project has been produced in Japan and is now available for distribution to identified potential customers for final factory scale trials. Three different product types have been produced;
Samples are to be sent to various end users and distribution agents identified around the world besides China in order to ensure diversification of market opportunities as much as possible.
Manufacture of a large run of fine porcelain items sourced from Great White Kaolin Project material with the Andromeda logo displayed is to be produced and will be made available to potential customers for examination.
A maiden Probable Ore Reserve has been prepared for the Great White Deposit (previously Carey’s Well Deposit) of 12.5Mt of bright white kaolinised granite containing 52% material in the minus 45 micron fraction that supports the 26 year mine life at 500,000tpa which has been used in the PreFeasibility Study.
A maiden Mineral Resource for the Hammerhead Prospect (previously Condooringie Prospect) 5kms to the north of the Great White Deposit is nearing completion and will be announced shortly. Indications are that Hammerhead will be larger and of an average higher-purity halloysite-kaolin than Great White, allowing the Company to produce substantial amounts of differing ratios of hybrid halloysite-kaolin material to meet customer requirements.
Aircore drilling undertaken at the Company’s 100% owned Mount Hope Kaolin Project has resulted in the determination of an Inferred Mineral Resource under the JORC 2012 Code of 18Mt of bright white kaolinised granite yielding 7.5Mt of minus 45 micron quality kaolin product. Of significance, although halloysite-kaolin was encountered that is similar to that found at the Great White deposit, drilling has also identified a zone of rare ultra-high purity non-halloysite material containing some of the lowest iron contaminates found anywhere in the world, making it suitable for a new market opportunity in the area of coatings and polymers, which broadly sells at a higher premium price than for ceramic applications.
The discovery of ultra-high purity non-halloysite material at Mount Hope led Andromeda geologists to review areas outside of the current Great White resource which may display similar characteristics. As a result, a significant area of ultra-high purity kaolin not included in the original resource due to the area not containing halloysite, has been identified. Samples from this zone at Great White along with the Mount Hope non-halloysite material will now undergo full testing in the UK to assess suitability for this new market application.
A positive meeting has now been held with the native title landowners at Camel Lake with anticipation that access will be granted to allow Andromeda to undertake initial field activities later in the year.
Definitive Feasibility Study
Work is progressing on the preparation of the Definitive Feasibility Study with detailed evaluations of product types and plant design, along with port selection based upon the final product to be manufactured at site, to be made. Product from site to be shipped either in bulk or bags will impact upon the ultimate port selection to be made. Consideration also of whether to construct the wetprocessing plant, and hence produce a processed product immediately rather than wait 2 years and fund construction through DSO sales, is also being evaluated.
New Market Opportunities
The Company is currently evaluating a number of exciting new market opportunities which includes a high value application for both domestic and international markets. Andromeda hopes to be in a position to expand on these opportunities in coming months.
Positive studies are also continuing in the halloysite nanotechnology space lead by work conducted by the University of Newcastle’s Global Innovative Centre for Advance Nanomaterials, with research in the areas of carbon capture, hydrogen storage, water purification and battery enhancements jointly sponsored under a separate joint venture between Andromeda and Minotaur Exploration.
A planned commencement of operations for February 2022 is currently targeted. This takes into account sufficient time for completion all studies and the obtaining of all government approvals and permits required to allow mining to commence. The recent appointment of Joe Ranford as Operations Director, who has first-hand experience in managing the mining application process in South Australia, will be of significant benefit to the Company.
The next key milestone is the completion of the Definitive Feasibility Study which is currently targeted for mid-December 2020. Submission of the mining lease application is subsequently targeted for February 2021.
The ADNOB listed options, which have an exercise price of $0.012, expire in just under 3 months on 30 November 2020. As the options are considerably ‘in the money’, a steady stream of options being exercised has occurred with approximately $2.5M received during the calendar year to date. If all options are exercised, another $5.9M would be received by the Company to add to the current cash balance of $3.4M.
In summary, the Board is of the view that Andromeda is well positioned to become a world leader in the supply of halloysite-kaolin and participant in halloysite nanotechnology development.
New Mineral Resource for the Mount Hope Kaolin Project
New Mineral Resource Estimate for Hammerhead Halloysite-Kaolin Deposit
REQUEST FOR TRADING HALT – ANDROMEDA METALS LIMITED (ASX : ADN)
In accordance with ASX Listing Rule 17.1, we request an immediate trading halt in the Company’s securities pending an announcement of an initial Mineral Resource for the Hammerhead Kaolin Prospect which is part of the Great White Kaolin Project. The Company requests that the trading halt end on the earlier of the commencement of normal trading on Wednesday 30 September 2020, or when the anticipated announcement referred to above is released to the market. The Company is not aware of any reason why the trading halt should not be granted, nor of any other information necessary to inform the market about the trading halt.
Hammerhead Drill Results and Potential Construction Product Application
* A maiden Ore Reserve Estimate of 12.5Mt of bright white kaolinised granite containing 52% of material in the minus 45 micron fraction has been determined for the Carey’s Well Deposit located within the Poochera Halloysite-Kaolin Project in South Australia.
* The Ore Reserve Estimate, which comprises 15% halloysite and 78% kaolinite in the minus 45 micron fraction, is classified in the Probable category.
* The Ore Reserve supports a 26 year mine life at a mining rate of 500,000 tonnes per annum as reported in the recently announced Pre-Feasibility Study.
* Focus is now heavily directed towards completion of the Definitive Feasibility Study and the Mining Lease application process with site mining activities targeted for early 2022.
New Major Market Opportunity for Andromeda with Mount Hope Project
* Results from the initial aircore drilling program conducted at ADN’s 100% owned Mount Hope Kaolin Project in South Australia have delivered significantly high bright white kaolin intersections (above 80 ISO Brightness) across the historic kaolin resource.
* The April 2020 drilling program, which comprised a total of 40 holes for 1,383 metres across the drill target area, has extended the deposit further to the south and remains open in that direction.
* A substantial portion of the deposit shows exceptionally low iron contaminant within the bright white kaolin with halloysite levels ideally suited to some high-value markets in specialist coatings and polymers, which opens up a new and potentially significant market opportunity for the Company.
* Mount Hope thus represents an excellent opportunity for market diversification and de-risking of the business in addition to adding value to the Company as a whole.
* Some areas of the Mount Hope deposit show high levels of halloysite (>20%) that is similar to the existing resource at ADN’s Carey’s Well deposit, part of the Poochera Joint Venture with Minotaur Exploration.
* The Carey’s Well resource is well-sized to supply the market requirements for high-value ceramic applications, especially when combined with potentially significant additional halloysite-kaolin material from the Condooringie and Tomney prospects at Poochera.
* The development of the Carey’s Well deposit remains the main focus for ADN with Mount Hope offering excellent potential for future growth opportunities for the Company.
* A new Mineral Resource Estimate compliant with the 2012 JORC Code for the Mount Hope deposit is currently being finalised and will be released shortly.
Adn receiving a lot of volume.