Metalsearch to acquire Abercorn Kaolin Pty Ltd and its potential HPA project

Metalsearch, an emerging exploration company, has signed an agreement to acquire Abercorn Kaolin Pty Ltd, which owns the large-scale Cynthia kaolinite discovery in central Queensland. Abercorn plans to develop the kaolin resource into a high purity alumina and commercial-grade aluminium sulphate project. 99.99% aluminium oxide (4N HPA) has already been produced from Cynthia kaolin prospect feedstock as samples. 

Metalsearch will pay US$50,000 non-refundable deposit to Abercorn followed by cash and Metalsearch shares. The agreement also includes deferred payments once key performance-related milestones are achieved.

Metalsearch must raise US$2 million in capital to fund exploration work and a scoping study as a condition for completing the acquisition. These will be based on an open pit mine and onsite processing plant to produce HPA and aluminium sulphate and facilitate shipping.

Cynthia kaolinite discovery is made up of three contiguous Exploration Permits Mineral (EPMs) comprising 38 sub-blocks over 128 square kilometres. The scale of the deposit has not yet been quantified.

The deposit has the potential for a very large, high-grade orebody with the capacity to produce HPA and higher-grade feedstock. Metalsearch would conduct an extensional drilling campaign to further define the size and scale of the orebody.

HPA is a very pure form of aluminium oxide to be used in high-tech products such as smartphones, tablets, televisions, watches, optical lenses and bio-medical devices. It is also a critical input in the production of scratch-resistant synthetic sapphire glass.

Another growing market for HPA is electric vehicles, where it is used as a coating on lithium-ion battery separators to ensure safety, integrity and performance.

Aluminium sulphate is widely used as a coagulating agent in the purification of drinking water and waste water treatment plants. Studies indicate demand for HPA is set to increase and outstrip supply due to the growth in electric vehicles. Demand for aluminium sulphate is expected to grow in line with global demand for cost-effective water purification solutions.