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Mix of Factors Sweetening the Pot for King River Resources’ (ASX:KRR) HPA Product

Summary

  • King River Resources has changed the direction of Speewah PFS to a new path, which is a faster production route and has lower-associated risk.
  • The operation would use a readily available industrial aluminium chemical feedstock for producing HPA.
  • Two major industries enhancing the market opportunities for HPA are LED lights and lithium batteries. 

In 2020, Australia-based exploration mining company King River Resources Limited (ASX: KRR) remained committed towards achieving its goal of producing a High Purity Alumina (HPA) product. Despite the pandemic environment, when access to remote parts of Australia was impacted or cross-border studies suffered, the Company remained fixated and continued to advance. 

Significantly, several adaptive changes were incorporated to keep up the momentum of the Company’s engineering studies for enhancing the purity of its HPA product. At the same time, after relaxations, KRR was quick to gear up its gold exploration at the Mt Remarkable and Treasure Creek projects.  

The HPA product development, which is undergoing remarkable progress, appears to be well-positioned for an advance journey in the lucrative space. Let us explore the factors which appear to catalyse the advancing HPA-related journey of the Company. 

ALSO READ: Recounting King River Resources’ (ASX:KRR) 2020 Journey Across Projects

Alternative Path to HPA Production

Recently, KRR steered the direction of Speewah Prefeasibility Study (PFS) towards a new path, which not only enjoys significant lower risk but also offers a faster production route. Notably, the HPA operation would be based on investigating the processing of a readily-available industrial aluminium chemical feedstock.  

It would also allow the Company to base its HPA operation at an industrial estate rather than at Speewah in the Kimberley of Western Australia. The new process of HPA production is more straightforward compared to the previous one, owing to varying factors. 

DETAILED DISCUSSION AT: King River Resources (ASX:KRR) Identifies Alternate Path To HPA Production

Kalkine Group Image (Data Source: KRR ASX Update, 19 November 2020)

The course change has been identified because of the ongoing HPA testwork as part of the Speewah PFS. KRR believes that it will aid in finalising the PFS and fast-track the production of HPA while also improving the business case.

Strong Market Potential for HPA

The evolving nature of the global landscape towards the high-technology market has been a critical driver for HPA, which is used in various industries as a precursor material. 

Two major industries enhancing the market opportunities for HPA are the growing LED lights market and lithium batteries. 

ALSO READ: King River Resources (ASX:KRR) Rides High on New HPA Testwork Update

Light-Emitting Diode Lights

The markets for LED lights have grown significantly over the past few years as these lights consume substantially lower power than the incandescent lights, allowing for cost-effectiveness. The global concern for reducing power consumption is expected to support the growing demand for such lights across residential as well as commercial spaces. 

The synthetic sapphire glass used as substrates in such power-efficient energy sources utilises HPA as a precursor material, thereby offering substantial lucrative prospects for the high-purity HPA products of KRR. 

Lithium Batteries

Over the past few years, the market for lithium batteries saw tremendous growth with the increasing popularity of smartphones and other electric devices which use lithium batteries. Meanwhile, the wave for plug-in vehicles as well as the increasing focus towards the automation is expected to push the market further. 

Amidst the growing demand for batteries, HPA-coated separators are positioned to gain significant growth momentum consequently. 

Robust Leadership

While KRR continued to achieve significant milestones, the Company leaders have been busy manoeuvring the development and exploration operations in the right direction. Significantly, the extensive experience of the Board and the team across varying areas along with their expertise has been considerably helpful, ensuring both short-term and long-term opportunities from HPA products.    

KRR shares traded at $0.024 on 11 December 2020, up by 4.35% from its previous close.

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