A Pre-Feasibility Study prepared for the Carey's Well Deposit at Poochera has delivered further substantial improvement in the project economics for the production of premium grade kaolin clay to meet the growing global supply shortfall of high-value halloysite-kaolin for ceramic applications

Pre-Feasibility Study Further Improves Poochera Project Economics

A Pre-Feasibility Study (PFS) prepared for the Poochera Halloysite-Kaolin Project has delivered further substantial improvement in the project economics through the inclusion of onsite wet-processing for the production of premium grade refined kaolin clay to meet the large and growing global supply shortfall of high value bright-white halloysite-kaolin for ceramic applications.

An expanded Life of Mine (LOM) of 26 years based on the updated December 2019 Mineral Resource enhances Project cashflows.

LOM key financial metrics for the PFS comprise the following:

  • All In Sustaining Cost (AISC) averages A$354/tonne of refined premium halloysite-kaolin product with an anticipated selling price of A$700/tonne;
  • Project cashflow of A$1.97B pre-tax and A$1.39B after-tax;
  • A 35% increase from the previous Scoping Study in pre-tax NPV to A$736M using an 8% discount rate and unchanged IRR of 175%;
  • After-tax NPV of A$511M using an 8% discount rate and IRR of 135%;
  • 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, through Direct Shipping Ore (DSO) mining, shipping and toll-refining activities;
  • Onsite wet-processing plant and infrastructure, fully funded by revenues received from DSO production, to be constructed in the second year of operation at a cost of A$56M.

Production Target is based on shallow open-cut mining of kaolinised granite at 500ktpa which after processing and refining yields a LOM 5.9Mt of 15% halloysite premium product.

Both initial bulk DSO material and subsequent site processed product will be shipped through existing, or under development, port facilities.

Estimated workforce of 30-40 people sourced mainly from local region.

Marketing efforts expanded throughout Asia and Europe, with testing for a range of applications underway with potential customers and distributors.

Commercial trial quantities of products currently being produced in China and Japan for progressing customer offtake agreements.

Focus now directed towards environmental impact assessments and Mining Lease application as part of the Definitive Feasibility Study (DFS) with commencement of site activity targeted for early 2022.

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