Altech Chemicals Ltd (ASX:ATC) has now commenced a grade control drilling program at its Meckering kaolin deposit, located in Western Australia.
Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).
HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.
Altech also has some very supportive shareholders, such as its cornerstone in Melewar IIC Limited.
Melewar's executive chairman, Royal Highness Prince Ya’acob Bin Tunku Tan Sri Abdullah, has previously said that he looked forward to assisting the company with its development plans.
Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses, and is the second largest shareholder of the company.
Drilling plan
A total of 21 air core drill holes are planned over Altech’s wholly-owned tenement E70/3923, which is located 130 kilometres east from Perth.
The grade control drilling program is to assist the company in planning its future Meckering mining operation.
The proposed Meckering mine will provide kaolin feedstock for the Company’s high purity alumina (HPA) plant at Johor, Malaysia.
Meckering mine plan
At Meckering, Altech is planning to mine 120,000 tonnes of kaolin every three years on a campaign basis, each mining campaign will last two months.
The resultant raw kaolin will be stockpiled, then containerised into standard shipping
containers at the rate of around 40,000tpa and transport to Johor for processing into HPA at the company’s proposed plant.
Funding
Altech recently raised $1.2 million via a placement of shares to a variety of professional and sophisticated investors, and currently has a Share Purchase Plan open.
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