Andromeda Metals Limited’s (ASX:ADN) updated mineral resource estimate for its 75%-owned Great White Deposit near Poochera on the west coast of South Australia’s Eyre Peninsula has increased by 33% over the previous estimate.
A total resource of 34.6 million tonnes of Bright White kaolinised granite is now estimated for Great White using an ISO Brightness (R457) cut-off of 75 for minus 45-micron kaolin product, which represents an increase of 8.6 million tonnes or 33% over the previous resource estimate.
The updated resource will be used in the completion of the definitive feasibility study (DFS) and mining lease application.
ADN's market cap has grown to approximately $604.1 million and shares today have been as much as 12% higher to 32.5 cents after reaching a new 13-year high of 36.5 cents earlier this week.
Updated mineral resource
The updated estimate replaces the previous December 2019 estimate.
The resource includes two subdomains; a halloysite-kaolin sub-domain 'Halloysite Domain' and an ultra-high bright (ISO B >84%) high-purity kaolin subdomain 'Ultra Bright Domain'.
The resource yields 17.4 million tonnes of High Bright kaolin product (ISO B >75%) when applying the minus 45-micron recovery factor, with the remaining approximate 50% of material being largely residual quartz derived from the weathered granite.
The halloysite-kaolin subdomain contains 8 million tonnes of minus 45-micron material comprised of 13.3% halloysite and the Ultra Bright sub domain contains 600,000 tonnes of minus 45-micron material with an ISO B of 86.8%.
Going forward
Drilling is planned in 2021 to better define the mineralisation in the Ultra Bright Domain with both infill and extensional drilling.
Additional drilling has also been planned to follow-up on the new southeast halloysite mineralisation.
Steady progress is being made with the definitive feasibility study and mining lease application process for the project.
The Great White mineral resource estimate is one of a number of kaolin (kaolinite and halloysite) deposits included under a joint venture with Minotaur Exploration Limited (ASX:MEP) in which ADN now holds a 75% equity interest.