- The company recently completed a capital raise of about $4 million
- Rover Gold Project was divested for $650,000
- $200,000 was received when Evolution committed to Stage-2 of the Drummond Project Joint Venture
- Analysis of drill samples at Poochera Halloysite-Kaolin Project in SA confirmed the presence of high-purity halloysite with a value of more than 90%
What does Andromeda do?
Since 2018, Andromeda has directed its primary focus away from the exploration and hopeful discovery of gold and copper deposits to the evaluation and potential future development of halloysite-kaolin.
This decision follows the acquisition of a substantial interest in the Poochera Halloysite-Kaolin Project in South Australia and its planned advancement towards production.
Who leads Andromeda?
The company’s board of directors comprises four individuals with years of experience in the minerals industry and with a complementary range of technical, managerial and directorship skills.
Chairman Rhod Grivas is a geologist with more than 25 years’ experience in the resource industry, including 16 years ASX listed company board experience.
Managing director James Marsh is an industrial chemist with extensive experience across a wide range of industrial minerals spanning a 25-year period, including senior technical and marketing roles.
He was been instrumental in developing and launching industrial mineral products into established and new applications globally and has a successful track record in general management and sales.
Executive director Nick Harding, who also acts as company secretary and chief financial officer, is an accountant with more than 30 years’ experience in the resources industry.
Harding has previously held senior financial roles with WMC Resources Limited, Normandy Mining Limited and Newmont Australia and has gained extensive experience in mine operations and project evaluations across several significant mining operations within Australia and overseas.
Non-executive director Andrew Shearer has been involved in the mining and finance industries for 23 years and holds a geoscientific and finance background.
Shearer brings strong professional skills and experiences in equity research, investor relations, valuations and capital markets through his role as a senior resource analyst with PAC Partners Pty Ltd and is also a non-executive director of Northern Cobalt Limited (ASX:N27).
With the collective skills and experience of the board of directors and the quality of the halloysite kaolin project at Poochera and other prospects, the company is of the view that Andromeda’s vision to be a sustainable industrial minerals producer of high-quality halloysite-kaolin is achievable, providing shareholders with a substantial financial return on their investment.
What does Andromeda own?
Andromeda has project interests in halloysite-kaolin and gold and copper commodities across 19 exploration licences covering 5,374 square kilometres in South Australia, Queensland and Western Australia.
Poochera Halloysite-Kaolin Project
In June 2018 the company exercised its option to acquire up to a 75% equity interest in the world-class Poochera Halloysite-Kaolin Project in South Australia under a joint venture agreement with Minotaur Exploration Limited (ASX:MEP).
Since that time, Andromeda has significantly advanced the project including the completion of a highly positive scoping study released in September 2019.
During the year metallurgical process testing was carried out by independent chemical engineers, which proved that Carey’s Well could be used to consistently produce 99.99% (4N) purity HPA, with only one stage of purification.
This would offer significant opportunities for cost savings in the HPA manufacturing process, as well as the ability to produce a higher-value end product.
Collaborative opportunities are now being sought in this sector.
Andromeda will now complete all pre-feasibility studies and permitting approvals for the Poochera project as well as conducting exploration for high-purity halloysite at Camel Lake and other targets within the project, along with the 100%-owned Mount Hope Kaolin Project where the first objective is to upgrade the historic halloysite-kaolin resource to JORC 2012 compliance.
Drummond Epithermal Gold Project
In August 2018 the company into a binding earn-in and exploration joint venture agreement with Evolution Mining Limited (ASX:EVN) over the Drummond Epithermal Gold Project which would see up to $6.5 million spent over four years by the experienced Australian gold miner in the region to earn up to an 80% equity interest in the project.
On execution of the agreement, the company received a $300,000 cash payment with a requirement that Evolution sole fund $2 million on exploration activities across the project tenements within two years from the date of signing.
At the end of the financial year, Evolution advised that it had met its stage I commitment under the agreement and on September 11, 2019, gave notice of its decision to proceed with stage II.
In addition to drilling, Evolution has also conducted the following exploration activities across the project during the year:
- IP surveys conducted at both Bunyip and South West Limey;
- A drone magnetic survey over Bunyip Hill;
- A ground magnetic survey over central parts of South West Limey and an extension to this along the Limey Trend;
- Soil geochemistry at Bunyip and South West Limey;
- A regional desktop review and follow up soil geochemistry at a number of target areas including Breccia Hill;
- Geological mapping of the Limey Trend from South West Limey to North Limey; and
- Significant track upgrades to provide access for further regional and remote work across the Drummond Project.
The focus of the company will predominantly be directed towards further advancing the Poochera Halloysite-Kaolin Project.
Key steps include:
- Commencement of more detailed feasibility studies;
- Commence regulatory permitting and approval processes;
- Undertake environmental studies as part of the permitting process;
- Undertake exploration activities on other prospects in the Poochera district;
- Initiate exploration activities at the Camel Lake prospect;
- Decide upon a logistics solution for the transportation of ore from site to market; and
- Progress halloysite nanotechnology opportunities through the halloysite research joint venture with Minotaur Exploration.
In addition, Andromeda will also:
- Undertake initial exploration activities on the 100%-owned Mount Hope kaolin tenement; and
- With the Pilbara tenements now granted in WA, determine how best to move forward with the Pilbara Gold Project.