Corella perfectly poised to supply high purity alumina to lithium-ion battery markets

Corella Resources says ‘outstanding’ results from its 2022 aircore drilling at the Tampu project in WA position it as a global supplier of High Purity Alumina (HPA) feedstock to lithium-ion battery markets.

Best results from the Tampu, Whitecap and Whitehills prospects include:

• 16m at 48.0% SiO2; 37.8% Al2O3; 0.23% Fe2O3; 0.24% K2O; 0.02% Na2O & 0.3% TiO2 from 4m (Tampu);
• 8m at 47.4% SiO2; 38.1% Al2O3; 0.38% Fe2O3; 0.28% K2O; 0.01% Na2O & 0.3% TiO2 from 7m (Whitecap); and
• 7m at 49.7% SiO2; 35,6% Al2O3; 0.83% Fe2O3; 0.82% K2O; 0.05% a2O & 0.4% TiO2 from 14m (Whitehills).

A critical factor for the use of kaolin as a feedstock in the HPA industry is the levels of iron impurities, with a value of <=0.5% Fe2O3 considered to be low iron impurity.

The consistency of the low iron impurities at Tampu has it well placed to potentially qualify as HPA feedstock – plus the results also flag the potential for major resource growth at the project.

Test pits are now being fast-tracked for multiple bulk scale samples for a number of potential offtake partners to further advance offtake discussions.

Prospects have production potential

Corella Resources (ASX:CR9) MD Tony Cormack said the intercepts from discovery holes into the Whitecap and Whitehills prospects are exactly what the company was aiming to achieve.

“The results demonstrate our strong understanding of the geology and mineralisation and our ability to add further high purity tonnes to our resource base from other prospects across the broader Tampu project area,” he said.

“The Whitecap prospect is an especially important discovery given its location just 5km from the Tampu mining hub and the potential to add significant volumes of high purity feedstock for HPA production.

“Results confirm Whitecaps outstanding quality with hole CRAC130 boasting a stunning vertical 8m downhole intercept commencing at 7m depth hosting an average head grade of 38.1% Al2O3, extremely low iron of 0.38% Fe2O3 and an all-time project high yield of 70.4%, making it an ideal specification for potential HPA feedstock.”

$1.2m placement to accelerate studies

The company has also received firm commitments for a $1.2 million placement at $0.03 per share, which it says will progress its strategy of “becoming a global supplier of HPA feedstock being a critical mineral for the lithium-Ion battery and LED markets.”

With the proceeds, Corella is well-funded to accelerate feasibility and economic studies, advancing towards a mining operation at Tampu and advance Whitecap and Whitehills towards a maiden Mineral Resource Estimate (MRE).

The maiden resource definition drill program at the prospects will also generate bulk samples for further metallurgical testing including HPA testwork.

Since listing in April 2021, Corella has strategically increased the overall Tampu project area by ~90%, and given their proximity, expects the Whitecap and Whitehill prospects to complement the proposed mining operation at Tampu.

Upgraded MRE will underpin scoping study

The company has now engaged CSA Global to complete the resource upgrade for the existing Tampu Deposit which will feed directly into a scoping study.

“The scoping study will focus on supply into the HPA market, given Tampu’s superior purity compared to its competitors and its suitability as feedstock for high end specification HPA,” Cormack said.

“Tampu is Australia’s largest deposit of high purity kaolin, and these exploration results confirm the potential for future expansion of the current resource base of 24.7Mt at Tampu.

“Following these outstanding results, further resource definition core drilling is currently being planned at both the Whitecap and Whitehills prospects targeting maiden mineral resource estimates for both locations.”

This article was developed in collaboration with Corella Resources Limited (ASX:CR9), a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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