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PERTH (miningweekly.com) – Junior explorer Australia Minerals and Mining Group (AMMG) on Thursday reported that a study into the kaolin to high purity alumina (HPA) process flow sheet at its South West project, in Western Australia, had delivered significant savings to the capital expenditure (capex) and operating expenditure of the pilot plant.
The objective of the study was to further develop major operating parameters within the process flow sheet by incorporating several efficiencies, AMMG said.
Using a base case of 2 t/d, or some 700 t/y, the plant's capex was estimated to be at under A$10-million, as opposed to the between A$10-million and A$20-million estimate determined by the December 2013 study, while operating expenditure for the pilot plant was also "significantly less" than the previously determined figures.
AMMG said the actual operating expenditure figure would remain confidential at this stage, as the company was in negotiations with potential offtake partners.
“The positive findings of the study are highly encouraging as we move forward advancing funding arrangements for the development of the plant,” said AMMG MD Ric Dawson.
“We are satisfied the study’s findings are in line with our expectations and understanding of our process and today’s HPA market,” he added.
The South West project consists of four separate project areas covering about 3 050 km2. The project has a combined resource of 297-million tonnes of aluminous clay with screened grades of up to 38% alumina.
AMMG said the company would now move forward with finalising a competitive funding arrangement for the proposed pilot plant, and would also progress a funding strategy for its Canadian capital requirements.