Slide 1: A New Direction in Industrial Minerals
SA Explorers For personal use only Conference 2018 Andromeda Metals A New Direction in Industrial Minerals 2018 ANNUAL GENERAL MEETING Managing Directors Address ASX:ADN
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation is published to inform you about Andromeda Metals Limited (“Andromeda” or the “Company”) and its activities. Some statements in this presentation regarding estimates or future events are forward looking statements. They involve ri
Slide 3: Outline
Outline 1. The Andromeda transformation For personal use only 2. The Poochera Project 3. Geology, drilling and defined resource 4. Kaolin and halloysite mineral properties 5. Product and Target Markets 6. Marketing & offtake agreements 7. Bulk sampling and processing trials 8. Existing Infrastructur
Slide 4: The Andromeda Transformation
The Andromeda Transformation Vision For personal use only ▪ From a gold/copper explorer to a sustainable industrial minerals producer Primary Project Development Focus ▪ Poochera Halloysite-Kaolin Project JV with Minotaur Exploration Exploration Portfolio ▪ Projects covering 6,102 km2 ▪ 22 explorati
Slide 5: Poochera Project Overview
Poochera Project Overview For personal use only ▪ World class halloysite-kaolin deposit ▪ Estimated short timeframe to production ▪ Long mine life ▪ Indicative off-take agreements with Chinese companies (>200,000 tpa processed product) ▪ Commercial scale approval trials planned for direct shipping o
Slide 6: Defined Resource
Defined Resource For personal use only ▪ JORC 2012 Resource estimate for Carey’s Well ▪ Total 23.9Mt of “bright white” kaolinised granite ▪ ISO Brightness R457 cut-off of 75 (< 45 micron product) The Carey’s Well material is a naturally occurring hybrid blend of halloysite and kaolin 6
Slide 7: Kaolin and Halloysite Mineral Properties
Typical Kaolin with Plate-Like Structure Mineral Properties (Al2O3 2SiO2.2H2O) Main Constituent: Kaolinite/Halloysite Blend For personal use only Minor: Mica, Quartz, Feldspar Aspect Ratio: 8/1 - 100/1 Specific Gravity: 2.6 Refractive Index: 1.56 MOH Hardness: 2.5 Carey’s Well Pure Halloysite with H
Slide 8: Halloysite
Halloysite Halloysite is a rare ‘tubular shaped’ derivative of kaolin that has a wide variety of industrial uses For personal use only Relative Commercial Values • Pure Kaolin - approx. $200/t • Kaolin/Halloysite Hybrid - approx. $500 - $1000/t • Pure Halloysite - approx. $3000/t upwards Halloysite
Slide 9: Poochera Halloysite Distribution Resource Model
Poochera Halloysite Distribution Resource Model For personal use only ▪ Resource model update ▪ Characterise the halloysite component ▪ Exploration drilling of high purity halloysite regions 9
Slide 10: Product & Target Markets
Product & Target Markets for the halloysite kaolin market For personal use only Main Mature Established Markets ▪ Ceramics - for high-quality porcelain ▪ Catalysts - for Fluid Catalytic Cracking (FCC) New and Emerging Markets ▪ High Purity Alumina production (HPA) ▪ Halloysite Nanotube Technologies
Slide 11: Nanotechnology Applications
Nanotechnology Applications For personal use only The Global Innovative Center for Advanced Nanomaterials (GICAN) industry hub at the Pure Halloysite University of Newcastle is using Carey’s Well pilot plant material in halloysite nanotube technology research Emerging Applications ▪ Micro-containers
Slide 12: Marketing Strategy
Marketing Strategy For personal use only Opportunities ▪ Significant and increasing demand for: ▪ Direct Shipping Ore ▪ Beneficiated ore ▪ Market to petrochemical industry - catalytic cracking ▪ Premium HPA feedstock Technical Approval ▪ High quality ceramic customers 12
Slide 13: Bulk Sampling & Processing Trials
Bulk Sampling at Carey’s Well Bulk Sampling & Processing Trials For personal use only Bulk Sampling ▪ 210t bulk sample taken in October 2018 Commercial Processing Trials ▪ Full scale dry processing – December 2018 ▪ Full scale wet processing – Q1 2019 ▪ Full-scale commercial application trials – cer
Slide 14: Mine Plan
For personal use only Mine Plan ▪ Open cut quarry ▪ Low stripping ratio ▪ Campaign mining using contractors ▪ Stockpile at site and/or near port facility ▪ Pit backfill and progressive mine rehabilitation Typical Dry Mining Kaolin Operation 14
Slide 15: Processing Options
Streaky Bay Pilot Plant Processing Options ▪ Commence direct shipping ore business For personal use only ▪ Second stage production plan to remove 50% waste (sand) ▪ Transport cost reduced by half ▪ Potential to give a market ready product with much higher value ▪ Contract toll production of fully re
Slide 16: Existing Infrastructure
Existing Infrastructure For personal use only ▪ Adjacent to Streaky Bay, SA ▪ Highway access to ports at Ceduna, Lucky Bay and Port Lincoln 16
Slide 17: Summary
Summary For personal use only ▪ South Australia has probably the world’s largest resources of halloysite kaolin ▪ This is a relatively high value industrial mineral ▪ Global demand is increasing ▪ Global production has decreased significantly ▪ Pure halloysite is an even more extreme example of that