FYI Resources (ASX:FYI) formally signs off Stage 1 HPA project joint development

Highlights

• FYI Resources Limited completed the stage one development of the HPA project.
• With Stage One being completed and signed off by FYI and Alcoa, Stage Two engineering development for the demonstration plant has commenced.
• FYI also plans to advance its downstream opportunities corresponding to the Stage Two HPA asset development program.

Australia-based High Purity Alumina (HPA) producer FYI Resources Limited (ASX:FYI; OTCQX:FYIRF; FSE:SDL) has achieved a remarkable milestone on its journey to the development of its proposed High-Purity Alumina (HPA) project.

In a major market update, the resource player stated that it had crossed the finishing line for the stage one development of the project and entered the second phase. In October 2021, FYI along with its partner Alcoa of Australia executed a binding term sheet for a staged joint development of the HPA project. The three-phased approach includes:

Additionally, Alcoa also agreed to fund approximately 97% of the project development cost against a 65% interest in the project.

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Workstreams for Stage Two demonstration plant

With the first significant milestone for the HPA development project being completed and signed off by FYI and Alcoa, Stage Two engineering development for the demonstration plant has commenced. The sign-off of Stage One also included budget allocation to the Stage Two scope of works for the continued project de-risking and demonstration plant development.

The transition from Stage One to Stage Two work program also demonstrates a joint commitment to the HPA project and sets the pathway for further stages of development.

Stage Two of project development includes the continuation of the facility design, fabrication, engineering, and facility installation workstream activities for the demonstration plant.

Further details are as follows:

Source: Company Announcement (2 June 2022)

Furthermore, FYI also plans to advance its downstream opportunities corresponding to the Stage Two HPA asset development program.

Also Read: FYI Resources (ASX:FYI) achieves ‘landmark’ results from Joint Extended HPA trial

Key Stage One parameters

Stage One scope of work included broader project development, planning and scheduling elements as well as ancillary technology development and product marketing. The project development team has been refining and detailing the development schedule through extended pilot plant trials.

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For successfully completing Stage One of the project, FYI used various key parameters. The details are as follows:

FYI’s shares last traded at AU$0.205 per share as of the last close on 2 June 2022.