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2 February 2022
Clarification regarding Quarterly Activities Report/Appendix 5B Cash Flow Report
On 31 January 2022, Astron Corporation Limited (ASX:ATR) ("Astron") released the Quarterly Activities Report/Appendix 5B Cash Flow Report for the quarter ended 31 December 2021. Anomalies have been identified in the Appendix 5B.
Accordingly, the revised announcement follows, in which the relevant anomalies have been updated, so this announcement should be used, and the previous announcement disregarded.
Astron Corporation Limited
For further information, please contact:
Tiger Brown, Managing Director +61 3 5385 7088
Joshua Theunissen, Australian Company Secretary +61 3 5385 7088 joshua.theunissen@astronlimited.com
Registered Office: 31/F., 148 Electric Road North Point, Hong Kong
www.astronlimited.com
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ASTRON CORPORATION LIMITED
ARBN 154 924 553
Incorporated in Hong Kong, company number 1687414
Notice to the Australian Securities Exchange 31 January 2022
Quarterly Activities Report
Quarter Ended 31 December 2021
HIGHLIGHTS - DONALD MINERAL SANDS AND RARE EARTH PROJECT
- Bulk metallurgical pilot test trial completed, final results expected in the coming quarter.
- Feasibility engineering studies have reached 70 per cent completion milestone.
- Planning for additional ore reserve delineation drilling to commence in the first quarter 2022.
- Zircon and Rare Earth product samples provided to potential customers, with favourable responses to product quality and attributes.
- Key organisational appointments made for the next phase of Donald project work.
DONALD MINERAL SANDS AND RARE EARTH PROJECT - OVERVIEW
The Donald Project is planned as an integrated mineral sands mining and processing operation, located in the Wimmera region of Victoria. The project is expected to constitute a new, major global source of zircon, titanium feedstock, and valuable rare earths. The Donald Project Definitive Feasibility Study (DFS) is underway and is scheduled for completion in the third quarter of 2022.
The Donald tenements (MIN 5532 and RL 2002) contain Ore Reserves of 602 million tonnes (Mt) with a Heavy Mineral (HM) grade of 4.8%. The assemblage of the valuable heavy mineral (VHM) component equates to in-situ zircon reserves of approximately 5.4 Mt of zircon (approximately 5 years of current total global consumption), 17.3 Mt of titanium minerals and 0.5 Mt of monazite. Mineral Resources within the tenements have been estimated to be 2.4 billion tonnes at an HM grade of 4.8%. (Refer Appendix 2). It is expected that Donald Project Ore Reserves and Mineral Resources will underpin commercial production for at least 40 years. The exploration drilling programme planned for the first quarter of 2022 will lead to a refinement of the project's Ore Reserves and Mineral Resources (more details below).
Subject to final confirmation of the DFS, planned production levels are approximately 120 thousand tonnes per annum (ktpa) of zircon (of which 80 per cent is expected to be of a premium grade), over 200 ktpa of titanium dioxide products and 16 ktpa of rare earth concentrate.
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For further project information on the Donald Project refer: ASX Release, Progression of the Donald Mineral Sands Project Astron Corporation Limited, December 2021 www.astronlimited.com.
Main Work Streams
The main work streams for the project: geological evaluation, mining studies, metallurgical and processing test work, engineering studies, regulatory approvals and community engagement, as well as customer engagement for potential sales arrangements, were all progressed during the quarter. Due to COVID-19 related restrictions, in particular border entry requirements in some States, some activities (including preparation for drilling activities) were delayed. As a consequence, the completion of the DFS for the project is now scheduled for the third quarter of 2022, as opposed to the earlier timing indication of mid 2022. A number of initiatives in terms of organisational strengthening, for the next stage of project implementation, also occurred.
The progression to the detailed engineering and DFS stages will enable project economics to be determined with a higher level of certainty. Following the completion of the DFS, Astron plans to provide detailed project economics and undertake project funding initiatives (through a combination of equity and debt) to progress the project to the commitment, construction and production stages.
Geological Evaluation
A drilling programme has been planned over the Donald deposit within tenement MIN 5532 comprising approximately 6,500 metres (m) of reverse circulation air-core (RCAC) drilling to a depth of up to 25 m, with holes spaced 250 m apart along east-west lines and line spacing of 500 m apart north-south. The drilling was initially planned to commence in the December quarter, however, due to COVID-related restrictions, including access to drill equipment, originally planned to be sourced from Western Australia, the programme has been rescheduled to the first quarter of 2022.
The drilling programme is designed to delineate the 20 to 38 micron fraction of the valuable heavy mineral component of the deposit; this fraction was not included in the earlier geological model as it was not assumed to be recoverable. However, subsequent metallurgical and processing test work has provided confidence in the recovery of the finer grained material. In addition, drilling is expected to analyse more of the rare earth minerals in the deposit, including the xenotime component of the resource. The inclusion of the xenotime component, where the valuable rare elements of Dysprosium (Dy) and Terbium (Tb) are sourced, is expected to enhance overall project economics, through delineation of the composition and overall value of the rare earth component of the ore body expected to be available to be mined.
A second drilling programme is planned in the same area comprising approximately 700 m of sonic drilling to a depth of up to 25 m. The purpose of the drilling is for specific gravity determination, further geotechnical information of the deposit, as well as the recovery of additional bulk samples for further metallurgical test work.
Valuable heavy mineral analysis will also be extended to the generally lower grade shallow depths of the
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Loxton Sands formation in the mining licence area of the Donald deposit. The increase in mineral sands prices over the last decade may potentially contribute to the conversion of a higher level of mineralisation, including in this part of the ore body, to valuable heavy mineral ore as part of Ore Reserve estimation studies.
Overall, the results of these programmes will provide valuable information to refine and update geological modelling (leading to an expected revised Mineral Resource and Ore Reserves Statement); further refine the understanding of the metallurgical characteristics of the ore body and facilitate mine planning for incorporation into the DFS.
Metallurgical Test Work
Mineral Technologies (MT) has been undertaking metallurgical and processing test work for Astron, utilising the product from a pilot wet concentration plant which produced approximately 1,000 tonnes of Donald ore in 2019 and processed this into over 24 tonnes of heavy mineral concentrate (HMC). During the December quarter, MT used 9 tonnes of HMC to complete bulk mineral separation pilot plant trials to produce final products. The preliminary results of the testwork demonstrated that previous laboratory-scale recovery outcomes were able to be replicated at pilot scale. The final results of the recent metallurgical test work are expected to be announced in the March quarter.
The pilot-scale production of final products has enabled Astron to undertake product testing, and provide initial samples to prospective customers.1
The test work conducted has provided additional confidence in the ability to achieve commercial-scale processing of the Donald valuable heavy mineral ore to recover HMC and final products of zircon, titania and a rare earth concentrate.
An implication of the testwork for project concept design is the inclusion of a dry separation plant for processing of the titania concentrate to produce a blended titanium dioxide product suitable as a feedstock for chlorinator pigment production.
Engineering Design
MT is currently progressing structural design work, including detailed engineering, for the mining unit plant, the wet concentrator plant and the concentrate upgrade plant facilities. 3D modelling of plant configuration and site placement, including infrastructure, has been undertaken (see Figures 1 and 2). During the December quarter, engineering work reached approximately the 70 per cent design completion stage, with part of this work based on a planned mining rate of 8 to 10 Mtpa run-of-mine ore feed.
Astron's project team conducted a design review and Hazard Identification Study exercise in conjunction with MT to identify areas of potential project optimisation, as well as areas of risk mitigation, including in terms of
1 See ASX Announcement, 14 May 2021, "Clarify Donald Mineral Separation Metallurgical Testwork"
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production utilisation levels of key parts of the process. Project flowsheets and design concepts were evaluated to identify areas where efficiencies could be made, for example in product handling and logistics functionality. Attention was also focussed upon the means to reduce off-stream production time through various means including product diversion points and by stockpiling feed for downstream circuits in the event of unforeseen outages or during scheduled maintenance programmes. These flowsheet and design enhancement considerations have been deliberately built into the design stage before moving to the full of DFS design phase.
Figure 1. Donald Project 3D design of wet concentrator plant (WCP) layout.
Power and water option studies have been updated for the current integrated project concept, while telecommunications requirements for the operational stages of the project have been identified and scoped.
Mains power supply connecting the project to the Horsham Terminal Station has been assessed relative to hybrid power options, including both behind the meter solar and mains power connections. Water pipeline design from Taylors Lake Reservoir, 20 kms south-east of Horsham, to the project's fresh water containment pond, has been undertaken. This water source option strengthens the project's water security requirements.
Information and Communications Technology (IC&T) assessments were completed with microwave transmission to provide site communications and connectivity for field services and control systems. The assessment included mine operations and administrative demands for cloud-based technologies.
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