Suvo’s maiden Pittong kaolin resource to support growth plans
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Suvo has calculated an Inferred and Indicated resource of 5.69Mt of kaolinized granite, yielding 1.97Mt of kaolin at its Pittong kaolin project.
The resource, which consists of a higher confidence Indicated resource of 3.74Mt and an Inferred resource of 1.97Mt, was converted from the previous Pan European Reporting Code standards to comply with JORC 2012 requirements.
Suvo Strategic Metals (ASX:SUV) currently produces about 25,000 tonnes of kaolin per annum from the Pittong processing facilities.
“The conversion of the Pittong mine from PERC to JORC 2012 compliance is a very important milestone in the company’s development, which will support the company’s asset revitalisation and plans to increase mining and plant output,” executive chairman Robert Martin said.
“The resource allows us to fast track our future development strategies as these results provide certainty around our life of mine.
“We are also reviewing our Trawalla deposit which holds a further 12.7Mt of kaolinized granite and how this can be incorporated into these strategies”
The Pittong project is a source of revenue for Suvo, with the company reporting operating cashflows of $230,000 from sales of $3.58m during the December 2021 quarter.
This marked the third consecutive quarter of positive cashflows since it acquired the project at the beginning of 2021.
With a JORC resource now in place, the company can now push forward with its development plans, which are likely to include the larger Trawalla resource just 23km from Pittong.
Adding further interest, drilling has confirmed that Trawalla hosts significant amounts of halloysite, an aluminosilicate clay mineral in the kaolin group that occurs as very small, hollow tubes which are 100% inorganic and biocompatible.
These are used in the existing ceramic, pharmaceutical and cosmetic markets and also increasingly in the battery and nanotechnology sectors.
Being able to tap into this resource is more than likely to be hugely beneficial for Suvo.
This article was developed in collaboration with Suvo Strategic Metals, 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.