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Exploration & Production

Altech Chemicals completes Kerrigan kaolin drilling with potential to update resource

The Kerrigan project is 20 kilometres south of the central wheat belt town of Hyden, Western Australia, and covers an area of about 230 square kilometres.

Altech Chemicals Ltd (ASX:ATC) has completed a drilling program at the Kerrigan Kaolin Project in Western Australia with the potential to update the kaolin mineral resource.

The drilling program consisted of 27 aircore holes for a total of 765 metres with all holes drilled vertically at an average hole depth of 28 metres and samples were collected at one-metre intervals.

While Altech’s flagship Meckering kaolin deposit will provide feedstock for its Johor HPA plant, Kerrigan also hosts a high-quality kaolin deposit.

The completed drilling program is expected to enable the company to update the Kerrigan mineral resource estimate and assist it in determining the next steps for the project.

Background

The Kerrigan project was initially identified as containing high-quality material in 1992 by Graphite Holdings Pty Ltd which subsequently drilling the project area, as did CRA Exploration Pty Ltd.

At Kerrigan, kaolin and mottled clays with overburden thickness ranges from 1 to 12 metres.

Since 1995 the only significant exploration conducted at Kerrigan was the bulk sampling and evaluation of about 6 tonnes of kaolin from two test pits as well as the processing of samples from the pits.

In 2011 the company reported an initial JORC inferred kaolin mineral resource of 85 million tonnes at an ISO brightness of 85.1% for Kerrigan.

The current drill program is expected to enable the company to update its 2011 resource estimate in accordance with JORC 2012 standards.

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