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FYI Resources to build Cadoux HPA pilot plant for product application testing and project financing

The company believes the pilot plant is a critical component of its BFS and will validate its HPA product as well as potentially providing strong binding off-take agreements.
FYI Resources to build Cadoux HPA pilot plant for product application testing and project financing
FYI’s bankable feasibility study is expected late in the September quarter 2019

FYI Resources Ltd (ASX:FYI) is to develop a pilot plant as part of a bankable feasibility study to de-risk its Cadoux Kaolin Project in Western Australia.

The pilot plant will increase confidence and certainty for the company’s flowsheet design and circuit operational performance before committing to full-scale commercial production.

READ: FYI Resources investigates HPA markets in East Asia, advances offtake negotiations

FYI managing director Roland Hill said the decision to proceed with the pilot plant was a critical step in Cadoux’s development.

The plant will allow FYI to deliver suitable quantities of high purity alumina (HPA) to potential end-users for both product application testing for off-take negotiations and to support project financing.

Costs for the pilot plant will be funded through an advance of a research and development (R&D) tax rebate and it is expected to be constructed late in the June quarter 2019.

A schematic of FYI’s key milestones timeline ahead of completing its bankable feasibility study

 

READ: FYI Resources welcomes start to GR Engineering-led DFS due mid-2019

Hill continued: “The results of the pilot plant will contribute greatly to the robustness and confidence in the project and its ability for the overall project capital to be financed.

“The fact that we also have arranged the pilot plant to be financed by an advance on our expected R&D rebate benefits shareholders as there is no shareholder dilution or impact to our capital structure while funding a crucial segment of the project.”

READ: FYI Resources’ maiden ore reserve supports 52-year mine life for high purity alumina project

FYI’s flowsheet design is based on a standard hydrochloric acid leach and precipitation technology originally development in the 1940s.

This design has been modified to suit the Cadoux feedstock and purity requirements of current HPA markets.

The company anticipates the results from the pilot plant will provide increased confidence in the capital and operating costs of the project.

Results will also help confirm and support theoretical economic cases in the PFS and BFS and provide a quantified level of process assurance for future development and financing activities.

READ: FYI Resources’ PFS confirms long-life, low-cost high purity alumina project

The Cadoux project’s advantages include:

  • Western Australian-based and fully integrated strategy in a proactive and supportive project development jurisdiction;

  • Reliably and cheaply-sourced inputs (i.e. power, water, hydrochloric acid etc.);

  • High quality mineral resource and reserves, with excellent chemistry and mineralogy;

  • Long-life mine plan with more than 50 years of reserve;

  • Straightforward and highly-efficient flowsheet;

  • Low forecast industry capital expenditure;

  • Forecast lowest quartile operating costs;

  • First-class project development team; and

  • Strategy based on success of having achieved 99.997% HPA.

Cadoux's mine plan

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