FYI Resources Ltd (ASX:FYI) has received $300,000 of an expected $1.1 million 2019 research and development tax rebate which will assist in advancing a high purity alumina (HPA) strategy centred on its Cadoux Kaolin Project in WA.
Funding will be directed towards the development of a pilot plant, which materially progresses the proposed fully integrated, low-risk, low-cost production of high purity 4N and 5N alumina products.
Shares were up 10% in early trade to 6.6 cents.
FYI Resources managing director Roland Hill said: “The funding allows us to achieve a crucial step in the support of our long-term HPA strategy.
“The development of the pilot plant and HPA product will greatly assist product market development with end users and technical reviews.
“The pilot plant will also provide excellent operating parameters for the production process.”
Bankable feasibility test work and an economic review continue to advance as planned, having demonstrated the efficiency of the flowsheet in achieving 5N purity.
This accomplishment underlines the importance of rigorous and continuous pilot plant test work in the development of the HPA flowsheet design given the extremely high level of purity being targeted.
The pilot plant project will significantly de-risk complex technical challenges ahead of commercial production and is consistent with the company’s strategy of delivering a low-risk, high margin project.