Andromeda Metals has earned a majority interest in the Eyre Kaolin joint venture (EKJV) it shares with Peninsula Exploration, a privately listed company.
In August 2021, Andromeda entered into an agreement with Peninsula to earn up to an 80 per cent interest in four tenements Peninsula owns by providing $2.75 million in funding over a six-year period.
Peninsula’s tenements cover 2799 square kilometres and are located near Andromeda’s Great White project in South Australia. The tenements include kaolin prospects with properties complementary to those at Great White.
Now, Andromeda has satisfied the requirements of EKJV’s Stage 1 earn-in agreement, having spent $750,000 on exploration and evaluation activities within the first three years. This has resulted in Andromeda earning a 51 per cent interest in the EKJV.
Under the agreement, Andromeda also has the right to earn a further 29 per cent interest in EKJV by spending a further $2 million on exploration at the tenements over another three-year period.
As of November 2023, the EKJV tenements have a combined inferred resource of 53.5 million tonnes (Mt) of kaolin.
The resource comprises 27Mt of bright white, low titanium kaolinised granite and 26.5Mt of rheology modifier kaolin.
It is said that the low titanium kaolinised granite complements the kaolin at Great White, and the rheology modifier kaolin has the same rheological properties as Great White’s halloysite rheology modifier concrete product.
The news comes as Andromeda progresses plans to produce high-purity alumina from Great White.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
