Altech Chemicals Ltd (ASX:ATC) has boosted the kaolin resource at its Kerrigan Project in Western Australia to 125 million tonnes.
The inferred resource carries an ISO brightness of 85.2%, and the update marks a 47% increase on the previous 85-million-tonne, 85.1% ISO brightness resource.
Altech delivered the update thanks to drilling across the Kerrigan deposit, aiming to verify earlier results and secure more samples for test-work and analysis.
Looking ahead, the company hopes to spin out the WA kaolin play if a suitable offer lands on the table.
Divestment on the cards
Speaking to the development, Altech managing director Iggy Tan said: “Currently, the kaolin feedstock required for the Johor high-purity alumina (HPA) is sufficiently supplied from our 100%-owned Meckering deposit, which has a life of mine of more than 250 years.
“The Kerrigan Kaolin Project has been developed as a separate, standalone kaolin project which the company will be looking to divest should an attractive offer be forthcoming.”
Crafting the update
Geos Mining completed a mineral resource estimate (MRE) for the Kerrigan deposit in 2011, in accordance with the requirements of the JORC Code at that time.
The previous MRE was based on drilling data from CRA Exploration and Graphite Holdings, centred on work carried out between 1993 and 1994.
Following this, an inferred resource of 85 million tonnes, grading at an ISO brightness of 85.1%, was reported.
Fast forward to 2020, and Altech completed a program of 27 aircore drill holes, collared throughout the deposit in order to verify earlier drilling and obtain new samples.
Bringing the resource up to JORC 2012 standards, Geos Mining classified Kerrigan’s 125-million-tonne resource as indicated with an average yield of 43.9%.
Geos chalks the considerable increase in tonnage up to the additional drilling data (which improved confidence in the resource) and a revised geological interpretation.