Altech Chemicals (ASX:ATC) was down around -2.20% heading for the close today after this morning reporting a significant kaolin resource increase at Kerrigan.
The company’s wholly-owned Kerrigan kaolin deposit in the WA now has an inferred resource of 125m tonnes at an ISO brightness of 85.2%, a 47% increase on previous 2011 estimates.
Located 20 kilometres south of the Wheatbelt town of Hyden, the Kerrigan deposit sits within exploration licence E70/4718-I, which covers an area of 480 square kilometres.
Increased tonnage is being attributed to additional drilling data that has confirmed the overall global resource and the modification of some barren or low-grade areas.
Commenting on today’s announcement, managing director Iggy Tan notes the company will be looking to divest the Kerrigan kaolin project - developed as a separate stand-alone - should an attractive offer be forthcoming.
“Currently the kaolin feedstock required for the Johor high-purity alumina is sufficiently supplied from our 100% owned Meckering deposit, which has a life of mine of more than 250 years.”
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