Zeotech accelerates time to mining by acquiring freehold land
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Zeotech has signed land purchase agreements for the freehold land that covers the whole of the Company’s approved Mining Lease (ML80126) at its high-grade Toondoon kaolin project in Queensland.
This is expected to accelerate the project’s time to mining, streamline approval processes, optimise site access, and provide an efficient pathway to potentially expand the high-grade kaolin resource, which remains open in all directions.
With a current high-grade resource of 3.56Mt grading 37.5% alumina, <0.4% iron and 46.5% silica, Toondoon hosts one of the highest-grade raw ore kaolin deposits held under an approved ML in Australia.
Zeotech (ASX:ZEO) managing director Peter Zardo says securing the freehold land is a major de-risking initiative that will accelerate development of the project, by “facilitating greater control over approvals needed to commence a low-impact kaolin mining operation”.
Opportunities for direct shipping of Toondoon’s near-surface, high-grade kaolin ore is now being assessed with the company’s management engaged in advanced discussions with counterparties in India.
This high-grade resource also offers an integrated supply of optimal feedstock for the company’s production of manufactured zeolite.
Toondoon project consists of a granted ML and two granted Exploration Permit for Minerals (EPM 27395 and EPM 27866) across 28,000 hectares in southern Queensland about 20km south of Mundubbera and about 230km from the port of Bundaberg.
Access to the project is by sealed road to within 5km of the deposit.
The freehold land purchase of about 682 hectares covers the entirety of the project’s existing’s ML as well as overlapping the adjacent EPMs.
It provides direct access to local roads and water sources which will be necessary for future mining operations.
This article was developed in collaboration with Zeotech, 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.