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Andromeda Metals remains focused on progressing Great White Kaolin JV

Snapshot

The company is encouraged by the significant drilling program at the Wudinna Gold Project while focus is directed towards the Great White Kaolin Project which is making steady progress.

Andromeda Metals Ltd -

Quick facts: Andromeda Metals Ltd

Price: 0.27 AUD

ASX:ADN
Market: ASX
Market Cap: $535.53 m
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Andromeda Metals Ltd (ASX:ADN) has projects in halloysite-kaolin as well as gold-copper commodities across 19 exploration licences covering 5,374 square kilometres in South Australia, Queensland and Western Australia.

The company’s vision is to be a sustainable industrial minerals producer of high-quality halloysite-kaolin and high purity alumina material and thus providing shareholders with a sustainable financial return on their investment.

Hammerhead maiden resource 

In September 2020, the company revealed a maiden resource of 51.5 million tonnes of Bright White kaolinised granite for the Hammerhead Deposit, 5 kilometres to the north of the Great White Deposit on the Eyre Peninsula of South Australia.

Hammerhead is part of Andromeda’s Great White Kaolin Joint Venture with Minotaur Exploration Ltd (ASX:MEP) under which Andromeda is currently earning a 75% interest.

The maiden resource of 51.5 million tonnes of kaolinised granite is at an ISO brightness (R457) cut-off of 75 yielding 27.1 million tonnes of minus 45-micron quality kaolin product.

The resource includes a halloysite rich sub-domain with drilling undertaken in May 2020 determining that the resource remains open to the east, south and northwest.

Significantly, some areas within the Hammerhead Deposit show high levels of halloysite (>20%) that is similar to the existing resource reported at the Great White Kaolin Deposit.

A 100-kilogram sample of Hammerhead product is being prepared for a full-scale underground mine shotcrete trial.

Concrete application testing is also to be undertaken on material representing a sizable high halloysite subdomain of the Great White Deposit.

The joint venture partners are continuing to make steady progress with the definitive feasibility study (DFS) and the mining lease application process for the Great White Kaolin Project.

Drilling programs through to December 

At the Wudinna Gold Project in South Australia the company’s joint venture partner Cobra Resources PLC (LON:COBR) has started a substantial reverse circulation (RC) drilling program.

Cobra is planning to complete three field exploration programs from late September through until December 2020, which will include up to 45 RC drill holes for up to 6,750 metres of drilling at Baggy Green, Baggy Green North, Clarke, Laker, Barns and Larwood prospects.

The first of these programs is a 3,750-metre RC drilling program for up to 25 holes to be undertaken at Baggy Green, Baggy Green North, Laker and Clarke which is now underway.

Program 2, comprising the collection of about 150 auger geochemical samples at the Larwood prospect, is planned to commence in November 2020 once cropping activities in the area are complete.

The third program is designed to comprise 20 RC drill holes for about 3,000 metres at Barns and Larwood.

Encouraged by exploration program at Wudinna

The prime objective for the extensive exploration program is to define the orientation and extensions of mineralisation at a number of prospects across the Wudinna Gold Project with the strategic aim of building towards an initial target of a one-million-ounce gold resource.

Completion of this exploration program would see Cobra meet the stage-1 expenditure commitment under the joint venture agreement by the agreed extended date of December 31 2020, and result in Cobra acquiring a 50% equity interest in the project.

Andromeda is encouraged by this significant exploration program being undertaken by Cobra at Wudinna while the company’s focus is directed towards completion of the definitive feasibility study (DFS) and Mining Lease submission for the Great White Kaolin Project which is making steady progress.

Next steps

  • Mining lease approvals – in progress;
  • Definitive feasibility study - in progress;
  • Progress customer offtake agreements – through 2020 and 2021;
  • Define a halloysite-kaolin resource at Tiger – Q4 2020;
  • Potential studies on Hammerhead & Mt Hope prospects – 2020/2021;
  • Progress building product application testing – in progress;
  • Progress halloysite nanotube application research – ongoing;
  • Secure an HPA alliance/collaboration partner – in progress;
  • Obtain a high purity halloysite resource – 2021;
  • Evaluation of additional industrial mineral opportunities – ongoing; and
  • Commencement of operations at Great White – target early 2022.

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