Get Familiar with FYI Resources Limited (ASX:FYI) and Flagship ‘Cadoux Kaolin Project’

Summary

• FYI Resources Limited (ASX:FYI) is advancing vertically integrated and an innovative, high-grade HPA for usage in different high-growth tech applications.
• The Company has invested millions of dollars and about 3 years in detailed R&D in refining and finalising an eco-friendly innovative purification process for HPA.
• Recently, the Company commenced HPA development trials with its pilot plant to target flowsheet and process improvements.
• FYI is in the process of developing an HPA production project for both general and traditional consumer markets.
• FYI has undertaken extensive drilling at its flagship project, including completion of DFS, calculation of reserves and finalisation of first 3 years of grade control.
• FYI’s project seems to hold considerable potential to establish the Company as a material international supplier of HPA.

Australia-based resources company, FYI Resources Limited (ASX:FYI) focuses on the development and exploration of strategic commodity projects. The Company is advancing vertically integrated and an innovative, high-grade, high purity alumina (HPA) for usage in different high growth tech applications.

HPA (alumina with a grade equal to or greater than 99.99% Al₂O₃) is considered as a well sought-after mineral owing to its distinct characteristics and qualities with different applications. While HPA is being utilised in several traditional technology applications, its use as the significant mineral component in battery separators in static power storage units and electric vehicles (EVs) is evolving as the high growth area for the product.

FYI has invested millions of dollars and about 3 years in detailed R&D in refining and finalising an eco-friendly innovative purification process for HPA using equipment selection and conventional process technologies.

FYI has created a simple and innovative process flowsheet design with the following features:

• Aligns with HPA Project’s specific chemistry, quality and characteristics
• Boasts innovative design for efficiency and low operating expenditure (heavy duty, low maintenance and long life)
• Successfully exhibits high target grade purity and excellent process recoveries
• Meets key customer requirements - low environmental footprint, low carbon footprint and ethically sourced
• Includes processing plant planned in Tier one location - Kwinana’s ‘Battery Alley

The Company has been conducting detailed development works to further refine and de-risk its HPA process and design flowsheet. Last month, FYI announced the commencement of detailed HPA development trials with its pilot plant to target flowsheet and process improvements. The Company has constructed a tailor-made pilot plant to imitate its innovative HPA process flowsheet at length.

FYI’s Long-Life Asset: Cadoux Kaolin Project

FYI is in the process of developing an HPA production project for both general and traditional consumer markets. The Company intends to become a major producer of HPA within these swiftly developing markets, dealing in EV batteries, LED, television screens, smartphones other high-tech products.

FYI’s primary asset is the Cadoux Kaolin Project, situated around 220km to the northeast of Perth, Western Australia. The Company owns 100 per cent interest in the project area, which is a private land with finalised permitting and no native title.

The project area boasts ideal deposit geology and excellent infrastructure for HPA processing. Besides, the project area is host to a deposit that carries significant characteristics:

• shallow,
• flat-lying,
• low-strip,
• free digging,
• homogenous excellent quality, and
• easily accessible.

The Cadoux aluminous clay (kaolin) deposit’s ideal metallurgical characteristic and superior quality is the model feedstock for HPA process production. FYI expects this high-quality alumina product from the project to provide it with a competitive advantage in the international HPA market. 

Progress at Cadoux Kaolin Project

Extensive drilling has been completed till date at Cadoux Kaolin Project, which includes completion of detailed mine study, calculation of reserves and finalisation of first 3 years of grade control.

FYI completed a definitive feasibility study (DFS) and announced a revised Mineral Resource Estimate (MRE) for the Cadoux Kaolin Project in March this year. The DFS reconfirmed the Company’s Pre-Feasibility Study (PFS) results and exhibited the quality of its HPA strategy via compelling economic metrics.

The DFS also outlined a clear road ahead to advancing an integrated HPA business in a promising operating jurisdiction like Western Australia. Complementing the DFS, the Company also declared a revised MRE for the project for Proven and Probable reserve, upon which the DFS was based.

The combined measured, inferred and indicated MRE of 11.3 Mt @ 22.5% Al₂O₃ and Proven + Probable Ore Reserve of 3.2 Mt @ 24.8% Al₂O₃ were announced by the Company.

As per FYI, the DFS is anticipated to play a crucial role in securing finance for the Cadoux Kaolin Project. The Company expects to secure finance in late 2020 and commence construction in 2021.

Recently, the Company has also obtained R&D tax incentive rebate payment, which it intends to utilise towards the continuing advancement of its HPA strategy.

In a nutshell, FYI’s HPA project seems to hold considerable potential to establish the Company as a material international supplier of high purity alumina. The Company expects the timing for the advancement of its HPA project to meet potential uplift in demand for HPA as a result of projected growth in EVs.

As on 20 October 2020, FYI shares traded at $0.200.