Australian Securities Exchange (ASX)-listed Andromeda Metals has gained a 51% interest in the Eyre Kaolin Joint Venture (EKJV).
In August 2021, Andromeda forged an agreement with Peninsula Exploration to potentially acquire up to an 80% stake in four tenements owned by Peninsula.
The company noted that it achieved this milestone after meeting all Stage 1 earn-in requirements, which included an expenditure of $750,000 (A$1.11m) on exploration and evaluation activities within the initial three-year time frame.
Located near the Great White Project (TGWP), the tenements hold kaolin prospects that exhibit properties complementary to those found at TGWP.
The exploration efforts have been fruitful, with drilling results from the EKJV tenements revealing a combined inferred resource of 53.5 million tonnes (mt) of kaolin as of November 2023.
This resource includes 27.0mt of Bright White, low-titanium kaolinised granite (Chairlift CRM) and 26.5mt of rheology modifier kaolin (Chairlift HRM).
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By GlobalData
The low titanium content of Chairlift CRM, averaging 0.18% TiO2, is particularly well-suited for the high-quality porcelain ceramics market and could serve as an additive or modifier for the high-end coatings market.
Chairlift HRM shares rheological properties with Great White HR, indicating its potential for similar applications.
Andromeda has the opportunity to further increase its stake in the EKJV.
By committing an additional $2m to exploration over the next three years, the company can raise its interest to 80%.
In April this year, Andromeda finalised the sale of its remaining 25% stake in the Wudinna Gold Project to Lady Alice Mines and Cobra Resources.
The transaction included a A$500,000 cash payment and A$1m worth of Cobra shares to Andromeda’s subsidiary, Peninsula Resources.
Andromeda noted that with this transaction, the sale and purchase agreement that was announced in November has concluded, and its subsidiary Peninsula Resources received A$500,000 in cash.
