Archer Materials Ltd (ASX:AXE) has confirmed the presence of halloysite across the Eyre Peninsula (EP) Halloysite-Kaolin Project in South Australia through recent microscopy and microanalysis.
This marks the first time the naturally occurring high-value mineral of halloysite has been visually confirmed at the Kelly Tank, Bunora and Bunora East prospect areas.
Recent drilling recovered grades of up to 36.8% alumina over downhole lengths of 18 metres and several of these samples were submitted for analysis with Scanning Electron Microscopy (SEM).
“An excellent result”
Executive chairman Greg English said: “We have directly identified halloysite, which is a high-value form of the alumina-silicate clay kaolin, at Kelly Tank, Bunora and Bunora East prospects.
“This is an excellent result that confirms reports of the [kaolin] mineralisation by historic explorers, as well as the presence of halloysite across a large geographical area with all samples tested being close to surface.
“The results highlight the company’s continued success in exploring our broad-scope tenement portfolio, and in particular, the commercial development of Archer’s Halloysite-Kaolin Projects.”
Shares have been as much as 11% higher this morning to 45.5 cents.
Suitable for several end-uses
In April, Archer announced the screened results from the drilling at the EP Project with the results from 67 composite samples from Kelly Tank, Bunora and Bunora East reported.
Archer selected 25 of these samples for halloysite identification through SEM.
The company believe the results from the SEM analysis are exceptional, especially for the Kelly Tank and Bunora East prospects, where naturally occurring halloysite is clearly evident in the SEM imagery.
The SEM results obtained of corresponding materials’ morphologies at an early stage of exploration indicates that the halloysite-kaolin mineralisation could be suitable for several potential end-uses and markets.
Low iron values and minimal halloysite at Bunora, are in contrast to compositions at Kelly Tank that contain higher halloysite content.
Next steps
The EP Project is a large project in the early stage of development with multiple outcropping.
It is in close proximity to ports, townships and other infrastructure with high voltage power lines and freshwater pipelines traversing the area.
These advantages allow for efficient exploration and Archer intends to undertake further value-added activities towards commercialising the EP Project through sale or joint venture, which the company has successfully achieved with its other industrial mineral projects.