King River Resources (ASX: KRR) awards DFS to Como Engineers

October 05, 2021 03:26 PM AEDT

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Image source: KRR Presentations

Highlights

Como Engineers has been awarded the Definitive Feasibility Study (DFS) for the HPA Type 1 Precursor Processing Plant.

A 5N (≥99.999%) purity aluminium Precursor compound will be produced at the processing facility with a production capacity of 2000tpa.

King River Resources aims to advance the test work on the possibilities of producing other specifications of 5N Precursors and HPA.

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King River Resources Limited (ASX: KRR) has awarded Como Engineers the Definitive Feasibility Study (DFS) for the HPA (High Purity Alumina) Type 1 Precursor Processing Plant.

The Processing Facility will have a production capacity of 2000tpa and will produce a 5N (≥99.999%) purity aluminium Precursor compound (Type 1 Precursor) using the ARC HPA process from an aluminium chemical compound feedstock. Como Engineers has been engaged to kick off work on the DFS immediately.

ALSO READ: King River Resources’ (ASX:KRR) FY21 milestones set the stage for a bright year ahead

DFS Scope and other related developments

The DFS will be completed by early May next year and will cover Process and Non-Process Infrastructure Engineering Design, Execution Planning and Risk Management. Moreover, the Capital Cost Estimate and Operating Cost Estimate accuracy would be at +/-15%, as per AusIMM Class 3 (± 15%) level requirements.

King River Resources intends to advance the test work on the possibilities of producing other specifications of 5N Precursors and HPA. Moreover, on the receipt of successful laboratory outcomes, the DFS can also be amended to incorporate other production opportunities.

Como Engineers’ expertise to boost KRR’s project development

KRR enjoys a continued liaison with Como Engineers, which boasts a team of highly valued and experienced metallurgists, engineers, construction supervisors and drafts-people.

Como Engineers caters to the Mining and Resource sector, providing engineering services and specialist products. The offerings are mainly focused on process metallurgy, mechanical engineering and materials handling in Australia and abroad.

ALSO READ: Strong tailwinds for King River Resources’ (ASX:KRR) high purity alumina amid booming LED industry

KRR, in its recent update, indicated that the key personnel from the PFS will continue work on the DFS to maintain continuity and utilise the knowledge base developed to date. Furthermore, the DFS will be backed by Como’s experienced in-house discipline engineers who possess a wealth of knowledge in their respective fields.

KRR pleased on the significant progress

Directors confirmed that KRR is strategically pivoting its DFS strategy towards the production of high value Al precursor compounds that are utilised in the manufacture of Li-ion battery (LiB) cathodes, an essential component of the fast growing electric battery vehicle market.

Several factors such as – the Company’s need to quickly address a rapidly growing market, its ability to leverage its accumulated IP to date and expectation to further significantly reduce capex and opex costs - have been driving the developments.

KRR shares traded at A$0.026 on 5 October 2021.