ASX ANNOUNCEMENT
only | ANDROMEDA METALS LTD (Andromeda, ASX: ADN) | |||||||
29th July 2022 | ||||||||
28 January 2022 | ||||||||
A dromeda Metals Limited | Quarterly Activities Report - June 2022 | |||||||
ABN: 75 061 503 375 | ||||||||
Highlights | ||||||||
Corporate details: | ||||||||
use | Great White Kaolin Project | |||||||
ASX Code: ADN | ∙ Definitive Feasibility Study (DFS) completed and announced | |||||||
Cash (30th Jun 2022): $32.9m | ∙ Land access continues with in-principal agreement signed | |||||||
I ued Capital: | ||||||||
3,108,008,432 ordinary shares | ∙ | Progressing Program for Environmental Protection and | ||||||
69,480,000 unlisted options | Rehabilitation (PEPR) | |||||||
24,333,325 performance rights | ∙ Stakeholder engagement, including community drop-in days | |||||||
Directors: | ∙ | Optimisation of engineering design for the first phase of | ||||||
personal | construction | |||||||
Mick Wilkes | ||||||||
Non-Executive Chair | ∙ Letter of intent signed with a global leader in the distribution of | |||||||
J mes Marsh | specialty chemicals and ingredients | |||||||
Ma | aging Director | ∙ Binding Halloysite-Kaolin offtake term sheet signed with Asia | ||||||
Joe Ranford | ||||||||
Operations Director | Minerals Resources (AMR) subsequent to the end of the quarter | |||||||
Melissa Holzberger | Other Kaolin Assets | |||||||
N n-Executive | ||||||||
Director | ∙ 896 meters drilled at Chairlift Prospect | |||||||
Andrew Shearer | ∙ 1,102 meters drilled at Halfpipe Prospect | |||||||
Non-Executive Director | ||||||||
Austen Perrin | Research and Development | |||||||
Non-Executive Director | ||||||||
∙ A Patent Co-operative Treaty (PCT) Application was filed by | ||||||||
Com | any Secretary: | Andromeda on 1 July 2022 for the carbon capture material | ||||||
Andrea Betti | ∙ Arrival of Carbon Capture Pilot Plant in Australia | |||||||
Contact details: | Corporate | |||||||
∙ Appointment of Mr Mick Wilkes as Independent Non-Executive | ||||||||
Level 10 | ||||||||
Chair | ||||||||
431 King William Street, | ||||||||
∙ Appointment of Mr Austen Perrin as Independent Non-Executive | ||||||||
Adelaide, South Australia | ||||||||
5000 | Director | |||||||
For | ∙ Cash at the end of June was $32.9m | |||||||
PO Box 1210 | ||||||||
Unley BC SA 5061 | ||||||||
Tel: | +61 8 7089 9800 | |||||||
Fax: | +61 8 8271 0033 | |||||||
admin@andromet.com.au | ||||||||
www.andromet.com.au | ||||||||
Andromeda Metals Ltd | ABN 75 061 503 375 | Level 10, 431 King William Street Adelaide SA, 5000
info@andromet.com.au | www.andromet.com.au
The Board and management of Andromeda Metals Limited (ASX: ADN, Andromeda, the Company) is pleased to provide a summary of the Company's activities for the quarter ended 30 June 2022.
onlyGreat White Kaolin Project
Background
The Great White Kaolin Project (GWKP, the Project) comprises four Exploration Licences east of Streaky Bay on the Eyre Peninsula (Figure 1). High quality halloysite-kaolin occurrences exist extensively across the Great White Kaolin Project area making this a region of global significance for the mineral and capable of supporting a considerable long-life mining operation.
useThe Project includes Great White, Hammerhead and Tiger Deposits as well as several additional exploration targets: Manta and Bronze Whaler.
Andromeda also holds a 100% interest in the Mount Hope Kaolin Project which is located approximately 160 km southeast of Great White and is earning into the Eyre Kaolin Project.
personalFor
Figure 1 - Project Location Plan
use only | |
personal | Figure 2 - Great White Project |
Marketing
A letter of intent was executed with IMCD Group, a global leader in the sales, marketing and distribution of specialty chemicals and ingredients. The letter of intent is in respect of a potential exclusivity to distribute concrete additive product produced from the GWKP into the Asia Pacific market. This is a high value product, patented by Andromeda which has already been tested under the Australian concrete standards for use. Further discussions are underway to progress this to a binding offtake arrangement.
ForSubsequent to the end of the quarter the Company signed a legally binding offtake supply term sheet (Agreement) with Asia Mineral Resources Limited (AMR) to supply its Great White KCMTM90 product from the Great White Kaolin Project subject to standard conditions precedent.
The binding Agreement is for up to 38,500t of Great White KCMTM90 over the first three years of operations at a price in excess of the Definitive Feasibility Study pricing. Under the Agreement there will be price reviews every 12 months and automatic extension for ongoing years subject to agreement.
Discussions on other offtake agreements which will diversify our customer base are progressing.
Project Site
The Company completed the DFS and released it to the market (refer ADN ASX announcement dated 6 April 2022 "Great White Kaolin Project - Definitive Feasibility Study").
Since the release of the DFS, efforts have centred around the following main activities:
only | ∙ Progressing the PEPR for stages 1 and 2 of GWKP; |
∙ Gaining land access; and
∙ Optimising the design for the first phase of construction
The key focus has been to progress the PEPR covering Stage 1 & 2 of the DFS, including supporting management and rehabilitation plans in readiness for submission.
useDiscussions to finalise the in-principal land access agreement are progressing.
Following release of the DFS, optimisation of engineering design continued with a focus on Stage 1. Engineering works have concentrated on finalising the selection of long lead items, optimisation of the flow sheet, and preparing plans for project execution.
Key stakeholder engagement continued, including two community drop-in days held and Poochera and at Streaky Bay to discuss the Company's proposed compliance methods as well as employment
personaland business opportunities.
Streaky Bay Pilot Plant
The pilot plant successfully produced new samples for distribution to potential offtake partners.
Following delays caused by lockdowns in China, a new drum washer for the pilot plant has been procured and is now enroute to Australia. The new drum washer will enable larger samples to be produced to support sales and marketing, product development as well as flow-sheet confirmation and optimisation (Figure 3).
For
Figure 3 - New drum washer for pilot plant
Other Kaolin Assets
Eyre Kaolin Joint Venture
onlyDuring the quarter the Company actively explored for kaolin with properties to complement those use
of the Great White Deposit's kaolin. Two kaolin prospects located on the Eyre Kaolin Joint Venture (EKJV) Project's tenements were drill tested (Figure 4).
personalFor | Figure 4 - Aircore drilling in progress |
At the Chairlift Prospect, located on tenement EL 6664, 28 holes were completed for 896 meters, and at the Halfpipe Prospect located on EL 6665, 24 drillholes were completed for 1102 meters (Andromeda ASX release dated 30 June 2022 "Investor presentation update"). From this drilling a total of 199 composite samples have been submitted for processing and analysis (Figure 5).
Figure 5 - Chip-tray samples from drilling
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Andromeda Metals Limited published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 23:03:05 UTC.