EL 4575; Andromeda 51%, Minotaur 49%
Poochera, 45km east of Streaky Bay on western Eyre Peninsula in South Australia, is a kaolin district of global significance. It contains many kaolin deposits with unique characteristics, including mineable reserves of unusually ‘bright, white’ kaolinised granite at Carey’s Well.
In March 2020, Andromeda Metals Ltd (ASX: ADN, ‘Andromeda’) formally met the Stage 1 expenditure commitment of A$3 million within the two-year period from execution of the Joint Venture Heads of Agreement in April 2018. As a result, Andromeda earned its initial 51% beneficial interest in the tenements.
Andromeda elected to sole contribute a further $3.0M over the three year period to April 2023 in order to acquire a further 24% interest in the Project, thereby taking its tenement interest to 75%. Alternatively, Andromeda is able to progress to 75% equity interest should a decision to mine, supported by a Bankable Feasibility Study, be agreed by the joint venture partners. Andromeda is the designated Manager and Operator of the JV.
For project news and updates go to https://www.asx.com.au/asxpdf/20200730/pdf/44l027g3cjbnrx.pdf
Highlights from Andromeda Metals’ June 2020 PFS (100% basis)
- Life of Mine (LoM) 26 years
- Average annual production of 233ktpa of refined premium halloysite-kaolin product
- Pre-tax NPV8% of A$736M (after-tax NPV8% of A$511M)
- Pre-tax IRR of 175% (after-tax IRR of 135%
- Project cashflow of A$1.97B pre-tax and A$1.39B after-tax
- All In Sustaining Cost (AISC) of A$354/tonne of refined premium halloysite-kaolin product with an anticipated selling price of A$700/tonne
- Pre-production capital estimated at A$13M with a maximum cash requirement of A$28M prior to initial revenues being received
- Payback period of 15 months from commencement of mining
- On-site wet-processing plant fully funded by revenues received from initial DSO production, constructed in the Year 2 of operations at a cost of A$56M.
- Maiden Carey’s Well Ore Reserve of 12.5Mt bright white kaolinized granite classified as Probable Reserves comprising 15% halloysite and 78% kaolinite in the minus 45 micron fraction determined
- Project to be renamed Great White Kaolin Project from 1 August 2020
Site Works predicted to start H1 of 2022
Kaolin JV re-brands Project
The joint venture has re-branded the kaolin project and its integral deposits in conjunction with Andromeda’s international product marketing effort. The naming theme is based upon pelagic shark and ray species prevalent in the Great Australian Bight.
The Poochera Halloysite-Kaolin Joint Venture is now the Great White Kaolin Joint Ventureand the Poochera Project itself is now the Great White Kaolin Project. Naming recognises the world-class ‘white’ and ‘bright’ attributes of the source material, as also expressed in the product brand names “ParlaWhite 70TM” and “ParlaWhite 90TM”
The individual deposits and prospects will be renamed as follows: