Special Report: Direct shipping ore (DSO) is becoming an increasingly viable option for Red Mountain Mining to kick off development of its Mt Kokeby kaolin project.

Red Mountain Mining’s (ASX:RMX) Mt Kokeby kaolin project in Western Australia is building up the hallmarks of a low capex, DSO operation.

DSO refers to “direct shipping ore” – namely, minerals that require only minimal processing such as crushing before they are exported, which keeps costs low.

Laboratory testing of kaolin samples from the project demonstrated high alumina recoveries with minimal effort.

At the 75-micron mesh size, alumina recoveries ranged from 87.8 to 99.4 per cent at an average grade of 36.9 per cent aluminium oxide (Al2O3).

The results indicate that the likely costs of beneficiating kaolin from Mt Kokeby into a DSO quality product with plus 35 per cent alumina would be low.

“The high yields and low recovery loss from a simple beneficiation process, together with the mineral characteristics of the samples, augurs well for a low-cost DSO kaolin operation at Mt Kokeby,” director Jeremy King said.

“We look forward to conducting the due diligence drilling program in the near term.”

X-ray diffraction testing also indicated that there was nothing concerning about the minerals that hold the kaolin.

Red Mountain has started attritioning test work that will provide information on the ore’s amenability to beneficiation processes for the production of high purity alumina (HPA), an increasingly in-demand product.

Kaolin has a wide range of industrial uses, like paper and paperboard, fiberglass, ceramics and paint while HPA is used in lithium-ion battery components, LED lights, smart phone screens, and surgical tools.

The 84sqkm Mt Kokeby project is just 99km southeast of Perth and is close to rail and all-weather roads.

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This story was developed in collaboration with Red Mountain Mining, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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