Beyond kaolin, IPO-ready Pinnacle eyes massive halloysite potential
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Exciting new entrant, Pinnacle is listing on Wednesday and the ambitious WA digger has its sights on more than just the $8 billion kaolin game.
The company holds the Bobalong and Holly projects in WA and expects to secure the tenement applications for the White Knight and Camel Lake projects in SA shortly.
While the WA projects are straightforward kaolin, Camel Lake in particular is prospective for halloysite as it’s right next door to Andromeda Metals’ (ASX:ADN) Camel Lake Halloysite project.
Andromeda’s project is globally recognised for its uncanny purity and rare uniformity in tube length and diameter – and with its minus 2 μm fraction – the clay is close to 100% halloysite.
Pinnacle Minerals (ASX:PIM) executive director Robert Hodby says that because there’s a lot of opportunity and high value in halloysites, the company knows that if they get into production in WA, they’ll have cash flow to develop a halloysite project in SA.
That’s why the company will kick off exploration first on the Bills Middle prospect at Bobalong.
“We’ve done some historic ruling on Bills Middle in the past and we have had some reasonable results come through,” he said.
“We’re going to commence drilling at the Bills Middle project next week, as soon as we list, we’ll have drill rigs on the ground.
“The idea is to drill out the area and hopefully target a resource at Bills Middle at the Bobalong project.”
Drilled material from the 2022 drilling programs will all have some material sent to China’s world-class kaolinite research department at the Wuhan University of Technology for further analysis to ensure it meets the chemical and physical requirements of potential end users.
Hodby said the company has spent a lot of time talking to potential offtakers to work towards their requirements.
“China is the biggest consumer of kaolin globally and the producers over there have their own kaolin mines but there’s concern those mines could be shut down at any time by their autocratic leader,” he said.
“So, they’re looking for diversity of supply. And we then asked them how much they wanted; they’re looking for a minimum of a 5 million tonne project that will give them around 5-10 years’ worth of mine life.”
The company is also going to do some early-stage beneficiation at the projects, and says its WA projects would be very economical.
“Because the beneficiation is quite simple it becomes a logistics exercise,” Hodby said.
“So, if you’ve got some quality kaolin that’s close to port and can be shipped to port economically, you’re going to have a project that gets off the ground.
“We’ve done a high-level feasibility for ourselves that shows that it’s going to work which is why we moved on to getting the exploration licenses.
“And we believe that we’ve got a good chance of near-term production with Bobalong because we’re probably closer than most other players to a port – we’re only 120 kilometres from Albany.”
This article was developed in collaboration with Pinnacle Minerals Limited, 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.