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King River Resources caps off September quarter on a firm financial footing

Highlights

  • King River Resources remained primarily focused on HPA development and reported the production of a 5N purity aluminium precursor compound in September quarter. 
  • During the quarter, the Company also continued to undertake metallurgical testwork of the Speewah project, aimed at extracting high purity vanadium and titanium products.
  • Subsequent to the September quarter, KRR joined the Future Battery Industries Cooperative Research Centre. 
  • The Company has a strong financial position with approximately AU$5.5 million in cash at quarter end.
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Australian explorer King River Resources Limited (ASX:KRR) has released its quarterly activity report for the period ended 30 September 2021. During the quarter, the Company remained active across diverse fronts, advancing developments at its high purity alumina (HPA) project and exploration at its gold project portfolio.  

What’s more, the Company ended the September quarter on a firm financial footing, with AU$5.49 million in cash, as of 30 September 2021.

KRR also received a research & development tax rebate of AU$382,463 during the quarter, as research into the development of the processing methodology conducted during FY20 complied with the criteria set out for the Research & Development Scheme. 

Subsequent to the September quarter, KRR onboarded Mr Doug Flanagan as CEO of the High Purity Metals Division. The Company also joined the Future Battery Industries Cooperative Research Centre.

READ MORE: King River Resources (ASX:KRR) rides high on joining $120M Future Battery Industries CRC

Let us explore the Company’s September quarter activities in detail. 

HPA Project a top priority

King River Resources remained largely focused on its HPA development project during the September quarter. The Company reported the production of a 5N (≥99.999%) purity aluminium precursor compound (Type 1 Precursor) by Source Certain International (SCI) in July. The compound was prepared via the ARC HPA process using an aluminium chemical compound feedstock. 

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

Type 1 Precursor, HPA development, ARC Process

Source: KRR Update, dated 25 October 2021

Subsequently, Como Engineering was engaged to cost a modular process design for an initial Type 1 precursor refinery as part of a Definitive Feasibility Study. In addition, the information compilation has commenced on varying precursor needs from end users in the light-emitting diode lighting and lithium-ion batteries space. 

ALSO READ: King River Resources (ASX:KRR) turbocharges activities towards HPA DFS

As these bespoke precursors are simpler and cheaper to manufacture compared to standard HPA and have the potential to exceed in value (per tonne), KRR plans to reduce the initial scale of the first commercial operation to produce these high-value precursors. Thus, it would assist in reducing capital and operating costs. 

During the period, the Company also advanced work to build a mini-pilot plant, which would demonstrate the large-scale working of the ARC process for the DFS and produce batch marketing samples of Type 1 Precursor.

ALSO READ: Decoding King River Resources’ (ASX:KRR) powerful HPA marketing strategy

Speewah Project picks up steam

The September quarter also saw KRR continuing to undertake metallurgical testwork at the Speewah project, aimed at extracting high purity vanadium and titanium products. The Company’s efforts resulted in the production of a high purity titanium dioxide assaying 99.73% TiO2.

The development bodes well for KRR’s efforts to address the current interest in battery metals and master alloy compounds, which are critical to the green economy.

Titanium Dioxide, Speewah Project, Metallurgical testwork

Source: KRR Update, dated 25 October 2021

Gold project exploration makes headway

Exploration at the Company’s Mount Remarkable and Tennant Creek Gold Projects continued during the quarter, with significant results achieved.

Notably, the Company reported the discovery of new epithermal quartz adularia veins as a result of  helicopter reconnaissance and geophysical work immediately east of the Tennant Creek goldfield. These veins indicate the presence of gold mineralisation. 

Subsequent to the September quarter, KRR announced assay results of 23 samples from the initial reconnaissance rock chip grab sampling from Mt Remarkable, with assays pending for other 301 rock chip samples.

READ MORE: King River Resources’ Mt Remarkable Project returns significant gold values

In essence, KRR witnessed all-around developments during the September quarter, successfully progressing a range of initiatives across different fronts. What’s more, its exposure to diverse metals puts the Company in the box seat to capitalise on booming opportunities.

KRR shares were trading at AU$0.027 midday on 26 October 2021.

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