King River Resources' Significant PFS Advancements Beef Up Potential at Speewah Specialty Metals Project

Summary

• King River has updated on the Speewah PFS progress, with significant PFS developments being the focus of testwork and studies undertaken at the Speewah Specialty Metals (SSM) Project.
• The Company plans to release the PFS as early as feasible post completion of the remaining outcomes.
• The PFS has assumed a Kimberley focus that would produce High Purity Alumina (HPA), with future potential co-products not being included as part of the initial study.
• Potential of using the HPA process route on alternative aluminium feedstocks has been evaluated by the Company.

Perth-based exploration company, King River Resources Limited (ASX: KRR) is yet again stealing the spotlight bolstered by noteworthy undertakings, as it continues to upscale production and exploration endeavours. In a major update on its Speewah Specialty Metals (SSM) Project on 7 September 2020, the Company highlighted ongoing progress of the Speewah Prefeasibility Study (PFS) on the project.

For the 100 per cent owned SSM project stationed in the East Kimberley region of Western Australia, as part of the PFS, the Company had earlier in April 2020 reported the production of >4N (>99.99 per cent Al₂O₃) High Purity Alumina. The first >4N (99.99% Al₂O₃) HPA production was achieved by means of a new refining process developed by its metallurgical consultants, TSW Analytical Pty Ltd (TSW).

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A Kimberley focus has assumed the HPA production with future potential co-products included under the umbrella of the PFS. Significantly, the concerned co-products including Vanadium (V₂O₅), Titanium (TiO₂) and Iron (Fe oxide) would not be incorporated as part of the initial study.

KRR also in parallel has boosted its gold exploration endeavours at Mt Remarkable Project and Tennent Creek Project. The drilling plans have been phrased for both the gold projects while drilling has already commenced at Tennent Creek Project.

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As the Company is strategically gaining grounds on the back of strategic motivation and steady efforts, let us explore the significant PFS developments, which King River undertook further to its ASX release on 17 June 2020.

Testwork and Studies’ Focus

KRR mentioned that the focus remained on testwork and studies, as it carried significant PFS developments.

The purification circuit for producing a high purity HPA precursor has been simplified, and now it only involves a crystallisation process without the need for a second stage Ion Exchange circuit. It has led to the increase in overall recovery, necessitating changes to both the engineering design and the mining study since processing of fewer tonnes would be needed.

The current focus of testwork is calcination of the HPA precursor at 1200°C. It would ensure that no contamination is introduced and 4N (99.99% Al₂O₃) HPA is produced.

Initial phase tests utilising XRD analysis has indicated that the alumina which is converted to the stable alpha form is suitable for LED and battery separator applications. The Company would be undertaking further phase analyses. Meanwhile, it is generating larger final sample sizes for more comprehensive testwork and analysis.

Selection of independent umpire assay laboratory and protocols have been made. The market study is being updated by CRU International to a 2028 dateline.

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Ongoing Progress at Speewah PFS

King River has been meticulously engaged in hydrometallurgical testwork and studies, which are currently underway. These include:

• The plant and infrastructure design and costings undertook by Como Engineers waiting on final model validation and review.
• Calcination of larger samples pending resolution of some final contamination issues for verification assay.

In addition to being engaged in the PFS completion, KRR has been evaluating the potential of using its HPA process route on alternative aluminium feedstocks. Significantly, recent testwork has unveiled that a high purity HPA precursor can readily be made.

The Company highlighted that the implication is that start-up HPA development might initially be focussed on an industrial estate at Perth. It would not have the immediate capital and permitting needs for building a Kimberley based acid plant adjacent to a mining and processing operation.

Stock Performance

KRR stock traded at $ 0.031 on 7 September 2020. The Company has a market capitalisation of $ 48.16 million and its stock has delivered a return of more than 47.62 per cent in the year-to-date period.

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