Suvo Strategic Minerals Ltd (ASX:SUV) made strong progress during the December quarter and is well-funded with $4.54 million in hand as it readies to lead the charge amidst looming supply shortages of high-grade kaolin and silica sands both in Australia and the wider Asia Pacific region.
During the quarter, the company’s Pittong hydrous kaolin operations in Victoria produced 7,219 tonnes of refined kaolin products with sales topping at 6,355 tonnes.
Encouragingly, this marks the third consecutive quarter where Suvo has generated positive operating cashflows and demonstrated growth in production of its refined kaolin products.
Exploration activities
On October 12, Suvo announced a maiden inferred mineral resource estimate for its Nova Silica Sand Project reported in accordance with the 2012 JORC Code guidelines.
The maiden resource estimate includes 216 million tonnes of inferred mineral resource comprising silica glass sand (132 million tonnes), silica flour (60 million tonnes) and coarse silica sand (24 million tonnes).
On the back of the resource estimate and drilling campaign, scoping study works have been commissioned with Primero and metallurgical test-work has since commenced to produce samples for immediate shipment to potential offtake partners and clients with flowsheet definition and product development works underway.
Test-work has shown that the various sands can be suitable for use in glass manufacturing, foundry applications and as a filler or for wellhead cement additives.
After successful completion of the White Cloud Kaolin Scoping Study that demonstrated very robust economics, Suvo engaged Primero to commence a pre-feasibility study (PFS).
In addition to the PFS, a series of other project-related studies have commenced which include flora and fauna, dust and noise, cultural heritage, hydrology and hydrogeology.
Furthermore, test-work on Trawalla refined clay continues to show significant concentration of halloysite up to 32.4%
Financial summary
Suvo’s Pittong Operations generated unaudited EBITDA of $442,000 for the December quarter with total unaudited EBITDA of $2.77 million generated in the first year of operations
Positive operating cashflows generated of $230,000 with receipts from customers totalling A$3.58 million for the quarter.
Events after reporting period
On January 12, Suvo extended a major supply agreement with Norske Skog Boyer until December 2024.
The agreement covers supply of the company’s hydrous kaolin products for up to and above 25,500 tonnes over the term.
During the period, Suvo had also adopted an Environmental, Social and Governance (ESG) framework focusing on key ESG metrics and disclosures based on leading global ESG standards .
Furthermore, the company had proposed acquisition of mining tenement E70/4981, a highly prospective silica sand project near Muchea, north of Perth, Western Australia.