Andromeda Metals Ltd (ASX:ADN) has delivered a maiden mineral resource estimate (MRE) of 53.5 million tonnes of kaolinised granite with an ISO brightness of 81.9 for the Chairlift deposit in South Australia.
The inferred MRE comprises of 27 million tonnes of Chairlift CRM, a low iron and low titanium kaolin suitable for use in high-end ceramics, and 26.5 million tonnes of Chairlift HRM, a rheology modifier used in cementitious construction products and other industrial applications.
About 26.9 million tonnes of kaolin product are in the
Investors have welcomed the news, with Andromeda shares up almost 17% to $0.028 in early ASX trading.
Chairlift MRE.
Complements Great White's kaolin
Andromeda chief executive officer and managing director Bob Katsiouleris said: “The Chairlift deposit adds to the number of high-quality resources now surrounding The Great White Project, further cementing the global significance of the region for high-quality kaolin products.
“These resources significantly expand the potential market opportunities for Andromeda in the high-end porcelain ceramics and low-carbon concrete markets, further supporting the long-term benefits and future expansion opportunities of the planned development of The Great White Project.
“In addition, the Chairlift deposit has the potential to further expand Andromeda’s participation in the fast-growing, high-end market segments for white minerals such as performance coatings and pharmaceuticals.”
Great White Project and EKJV tenements.
Upgrade potential
The Chairlift deposit is part of the Eyre Kaolin Project Joint Venture (EKJV) between Andromeda and Peninsula Exploration Pty Ltd.
Peninsula holds titles to four exploration licences that cover 2,799 square kilometres on the Eyre Peninsula of South Australia, which are adjacent or in close proximity to tenements that comprise The Great White Project (TGWP).
Andromeda is currently sole funding the exploration expenditure in the EKJV tenements to earn up to an 80% interest.
The Chairlift MRE is based on 59 rotary air blast/aircore drill holes for 1,737.3 metres completed by Andromeda in 2022 and 2023.
Additional exploration potential remains at Chairlift, requiring further drilling to reduce the drill hole spacings and obtain more samples for dry bulk density tests and hydrogeological studies.