Corella Resources Ltd (ASX:CR9) recently completed another milestone towards its strategic vision to produce high-purity alumina (HPA) using high-quality kaolin as a feedstock.
The scoping study completed for Corella’s Tampu Kaolin Project in Western Australia shows the potential for the project to become a globally significant kaolin deposit producing HPA and kaolin for the high-end paint, paper coating, top-end ceramic, cosmetic and pharmaceutical industries.
Tampu is a deposit of bright white kaolin with a specification that produces 5N HPA (99.99957% purity).
Corella’s scoping study presents project economics for two mutually exclusive scenarios:
- 100% kaolin 200,000 tonnes per annum (tpa) production; or
- 100% HPA 40,000 tpa production.
Earlier in July, Corella had revealed a significantly upgraded mineral resource estimate (MRE) of 24.7 million tonnes with an average yield of 50% for 12.2 million tonnes at 36.5% aluminium oxide.
Notably, Tampu mineralisation has an average depth of 4 metres and a footprint covering less than 0.15% of the total Tampu landholding with substantial potential for future growth.
Following the MRE upgrade, international mining executive Jess Maddren was appointed to the role of chief executive officer to drive Corella towards becoming a significant player in the supply of critical minerals.
Jess has held both Australian and international leadership roles including segment director with Schneider Electric (EPA:SCHN), general manager with Downer, general manager and project manager with ALS Limited.
Jess Maddren said following the release of the scoping study: “As I step into my role as CEO at this pivotal juncture, marked by the completion of our updated MRE and scoping study, I am thrilled by the immense potential that lies within the Tampu Project, not only for our shareholders but also for our potential customers and the local community.
“The exceptional quality of the Tampu Project, when compared to established global kaolin operations, underscores our confidence in pursuing the transition from a promising discovery to a fully operational mining venture.
“We are continuing to engage with the local community and explore opportunities for collaborative, sustainable growth as we strive to establish a multigenerational operation with minimal environmental impact."
Tampu has significant existing infrastructure, including a recently acquired mining storage facility, close proximity to rail infrastructure and port facilities located only about 265 kilometres northeast of Perth.
The recently acquired 6.12-hectare facility is located 2.5 kilometres from the Tampu deposit and will be pivotal for the proposed mining operations.
The site consists of a 3,750 square metre storage shed, road loading facility, weighbridge, site office with accommodation and a Telstra mobile tower nearby.
Existing infrastructure potentially saves time and expenditure for a fast ramp-up of operations.
HPA market
The global HPA market is projected to reach US$1.33 billion by 2029, from US$1.05 billion in 2022, at a CAGR of 3.25% during 2023-2029, according to Multimarket Insight.
Corella aims to become a global supplier to the global specialty industrial and chemical markets by:
- Initially targeting existing kaolin markets (coating, paper, fibreglass, pigment, ceramics and potentially pharmaceutical and cosmetic); and
- pursuing the growing HPA markets.
Corella’s high-purity feedstock amongst competitors means less purification, less processing and less capital expenditure.
Advanced testing of Tampu HPA is ongoing aimed at leveraging full value for the high purity Tampu product.
Corella has planned test pits for multiple bulk scale samples for a number of potential offtake partners to further advance offtake discussions.
Starting in January 2024, a feasibility study will be initiated, centred on the processing of HPA precursor kaolin, along with an in-depth examination of product mix and mining operations.
This endeavour is aimed at expediting operations and cash flow, with subsequent HPA studies and the launch of a pilot plant following in short order.
Read more on Proactive Investors AU
