Okapi is running a rule over the Holly kaolin project
Okapi has started exploration work at the Holly Kaolin Project in Western Australia as part of the technical due diligence prior to acquiring Bulk Mineral Holdings.
The company has collected 15 samples from the project and has sent them to the Nagrom lab in Perth to test for halloysite and further confirmation of the quality of kaolin.
Halloysite has much higher purity and commands a significant premium over regular kaolin as it has a wide range of additional industrial uses and is in short supply.
Results from this sampling are expected next month with Okapi Resources (ASX:OKR) noting that drilling in 1995 had returned many high brightness kaolin intercepts.
Historical drilling had indicated that the average depth to the top of the mineralisation appears to be about 5m.
“We are excited with the prospect of the Holly Kaolin Project and this early exploration work will give an overview of the quality of the kaolin and halloysite existence,” executive director David Nour said.
“The test results will also enable the company to plan a more systematic and comprehensive exploration program in advance prior to completing the acquisition.”
Bulk Mineral Holdings acquisition
Okapi moved to acquire Bulk Mineral Holdings and its kaolin projects earlier this month on the back of growing demand for the industrial mineral.
Outcropping kaolin mineralisation is present along the Nookanellup and Warrenup roads at the Holly project with the company noting that these areas have been deeply weathered, forming an intensely leached kaolinised zone.
Besides the Holly Kaolin Project, the acquisition also includes the ‘White Knight’ kaolin-halloysite project in South Australia that borders Andromeda’s (ASX: ADN) Camel Lake Project and Mt Hope deposit.
It is prospective for both kaolin and heavy mineral sands with Okapi noting that high-grade halloysite is present at Camel Lake and appears to be several metres in thickness.
This mineralisation could potentially extend from Camel Lake north into the White Knight tenement.
This article was developed in collaboration with Okapi Resources, 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.