Cloud Nine Halloysite-Kaolin
Deposit
The Cloud Nine Halloysite-Kaolin Deposit is located 300 kilometres east of Perth in Western Australia and has demonstrated large scale resources of both halloysite and kaolin.
The Cloud Nine deposit is located on the Company’s 100%‐owned exploration licence E77/2622, which is situated ~350 km to the east of Perth and to the southeast of the town of Merredin. The Company controls a commanding regional tenement package (Noombenberry Project), covering over 560 km2 of what the Company believes is the most prospective ground in the region to identify repetitions of the high‐grade Cloud Nine Deposit.
In November 2022, the Company announced a 33% increase to its Maiden Mineral Resource Estimate to 280Mt of kaolinised granite, including:
- 70Mt upgraded from Inferred to Indicated
- 210Mt of Inferred Mineral Resource comprises: 125Mt of bright white kaolinite-bearing material; and 85Mt of halloysite-bearing material
| Classification | Mineral | Mass Mt | Brightness ISO-B | <45 µm
% |
|---|---|---|---|---|
| Inferred | Kaolinite | 125 | 79 | 44 |
| Halloysite | 85 | 80 | 44 | |
| Total | 210 | 79 | 44 | |
| Indicated | Kaolin | 70 | 81 | 39.8 |
| Indicated + Inferred | 280 | 80 | 43.1 | |
The updated Mineral Resource for the Cloud Nine Deposit includes an in situ Indicated Mineral Resource of 70Mt kaolinised granite at an average Brightness (“ISO-B”) grade of 81.
In addition to the Indicated Mineral Resource is an in situ Inferred Mineral Resource of 210Mt kaolinised granite at an average ISO‐B grade of 79, for a total global in situ Indicated and Inferred Mineral Resource of 280Mt, an increase of ~33% from the May 2021 global estimate of 207Mt.
The Inferred Mineral Resource includes an 85Mt high‐grade (>3%) portion with an average halloysite grade of 4%.
The Company has begun negotiation with potential offtake customers, which will include options to supply short‐term products, as well as supplying value‐added processed kaolin and halloysite products in the longer term.
Excavation of the recent test pit has provided the Company with valuable information to further refine preliminary assumptions, including mining and stockpile designs, mining method and equipment selection and preliminary geotechnical assumptions.
Material samples will also assist with further testing and analysis to continue improving the understanding of the deposit including the overlying material.
A preliminary desktop environmental study has also been undertaken on the Cloud Nine Deposit site. Outcomes of this study will be used to inform the scope of work required to support the pathway to apply for the relevant environmental approvals in support of the project. This information is being factored into an updated forward work plan to support the development of the Cloud Nine Halloysite‐Kaolin Deposit.
The component of the Mineral Resource that contains kaolin-halloysite is subject to research work aimed at both extracting the halloysite commercially as well as investigations into new uses for halloysite. The Company is excited by the potential for halloysite to be used as an emissions reduction material, particularly with regards to methane emissions from cattle.
Further details of the research project are described in the CRC CARE R&D Project section.
