viewAndromeda Metals Ltd

Andromeda Metals progressing PFS for its Poochera Halloysite-Kaolin Project

The PFS is building on a scoping study that proposed an initial DSO operation at the Carey’s Well kaolin deposit.

Andromeda Metals Ltd - Andromeda Metals Ltd progressing PFS for its Poochera Halloysite-Kaolin Project
Andromeda’s cash position at the 31 December 2019 stood at $4.367 million

Andromeda Metals Ltd (ASX:ADN) continues to focus on the preparation of a more detailed pre-feasibility study (PFS) for the Carey’s Well deposit within the Poochera Project in South Australia.

This PFS will take into account the optimised scoping study released in September 2019, which is based on the assumption of an initial direct shipping ore (DSO) operation during the first two years.

During the first two years, the revenues generated from DSO sales would fund the construction of a dry-processing plant.

Wet-processing option being considered

Notably, the PFS will also consider separate studies underway considering a wet-processing option, should initial studies deem wet-processing viable.

Work is scheduled to continue through the March quarter on the PFS with final study results incorporated into an updated financial model.

This updated model will determine economic outcomes that are currently scheduled for release during the upcoming June quarter.

Aircore drilling underway

An extensive aircore and diamond drilling program at both Carey’s Well and Condooringie commenced in December.

A total of up to 4,000 metres of aircore drilling is planned to obtain study data and test extensions to the Carey’s Well deposit.

In addition, up to 88 aircore holes are planned for Condooringie to follow up on the high halloysite intersections from the April-May 2019 drill program.

Placement funds project through to decision to mine

During the December quarter, Andromeda raised around $4 million in a share placement priced at 4.7 cents.

These proceeds will principally fund the feasibility studies and permitting approvals required for the Poochera Project up to a decision to mine.

While the majority of Andromeda’s resources are focused on the Poochera Project, the company has a portfolio of gold and copper exploration projects.

Drummond, Moonta, and Eyre Peninsula are all subject to joint ventures with the partners taking the lead with exploration.

At Drummond, ASX gold miner Evolution Mining Ltd (ASX:EVN) is conducting fieldwork with the goal of generating drill targets.

Joint Venture partner Cobra Resources (LSE:COBR) at Eyre Peninsula commenced geochemical sampling in January 2020 also aiming to generate targets.  

At Moonta, partner Environmental Metals Recovery is collating results from fieldwork to generate a  regional hydrogeological model.

Quick facts: Andromeda Metals Ltd

Price: 0.025 AUD

Market: ASX
Market Cap: $36.71 m

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