Suvo goes big at White Cloud with 84% increase in resources
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Bigger is better where resources are concerned and Suvo has certainly not disappointed with a near doubling of kaolin resources at its White Cloud project in WA.
Resources at the project, which has already attracted a potential offtake partner, have increased by 84 per cent to 72.5Mt of bright white kaolinised granite that, at a yield of 41.2 per cent, hosts 29.9Mt of kaolin.
Kaolin is a feedstock for high purity alumina (HPA), a component of lithium-ion batteries and LED lights. It also has a wide range of other industrial uses, like paper and paperboard, fiberglass, ceramics and paint.
Adding interest, Suvo Strategic Minerals (ASX:SUV) has further increased the size of the higher confidence indicated resource up from 26.7Mt to 29.9Mt, making White Cloud potentially capable of supporting a multi-generational operation.
The resource upgrade also underscores how much the company has focused on growing the project given that the last update was just last month.
“The near doubling of our resources at White Cloud shows the true potential and size of this project as does the recent market interest in the product highlighted by our recently announced agreement with CMM,” executive chairman Robert Martin said.
“We look forward to updating the market as we continue to progress offtake agreements, partnerships and project milestones for our White Cloud project.”
The updated resource will be used in the company’s scoping study that is being undertaken by Primero Group to develop mine optimisations and ore production schedules.
The wholly-owned White Cloud project comprises four exploration licences covering a 413sqkm area around the town and rail siding of Gabbin about 215km northeast of Perth.
It is located primarily on cleared farming land devoid of native bushland and is currently used for broad-acre cereal cropping, which could simplify environmental approvals required for mining.
A mining access agreement is in place over the current resource area with the land owner and occupier.
Suvo has already reached a term sheet with CMM Toye Industrial Mineral Consultants for the potential purchase of 10,000t per annum of kaolin for $US850 per tonne.
Both companies have agreed to consult on reaching a formal agreement by December 31, 2022.
Offtake discussions are also underway with potential local and international parties.
This article was developed in collaboration with Suvo Strategic Minerals, 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.