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FYI Resources’ maiden ore reserve supports 52-year mine life for high purity alumina project

The ore reserve underpins a production rate of 8,000 tonnes per annum of high purity alumina for 52 years.
Cadoux kaolin ore is suitable for producing high purity alumina
Cadoux kaolin ore is suitable for producing high purity alumina

FYI Resources Ltd (ASX:FYI) recently revealed a maiden ore reserve estimate of 2.89 million tonnes grading 24.4% Al2O3 (aluminium oxide) for its Cadoux kaolin project in Western Australia.

The maiden ore reserve follows an upgraded resource calculated by CSA Global for the recently published Cadoux pre-feasibility study (PFS).

READ: FYI Resources’ PFS confirms long-life, low cost high-purity alumina project

The PFS indicated that the project could produce up to 8,000 tonnes per annum of high purity alumina (HPA) at low capital and operating costs.

The company’s ore reserve has upgraded the mine life to 52 years, delivering a net present value of US$560 million and a payback period of 3.6 years.

FYI managing director Roland Hill said: “Cadoux’s maiden ore reserve, estimated by Orelogy Consulting, has a probable ore reserve estimated at 2.89 million tonnes grading 24.4% Al2O3 and is a significant step forward in the development of our HPA strategy and provides an excellent quality benchmark for our future operations.

“The ore reserve estimate affords FYI confidence in the quality and characteristics of the in-ground kaolin at Cadoux and how that translates into a superior and consistent quality feedstock for the HPA processing and refining.”

 

Hill added “The Cadoux kaolin ore reserve estimate should be capable of supporting HPA production for more than 50 years and potential additional project revenue opportunities have been identified from by-products derived from processing the kaolin.

“We are very pleased with the source and also in the upgraded confidence in the estimation due to its importance to our overall HPA strategy.”

Global HPA demand

The global demand for HPA is expected to increase from around 35,000 tonnes in 2017 to 125,000 tonnes in 2025, driven primarily by the strong growth in demand for lithium-ion battery separator coating.

Total HPA demand by end-use sector (tonnes)

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