Altech Chemicals Ltd (ASX:ATC) Significant Increase in Kaolin Resource at Kerrigan

Perth, Australia, April 6, 2022 - (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (HAM:A3Y) is pleased to announce that a recent Geos Mining Mineral Resource Estimate (MRE), based on the Kerrigan kaolin, reported an Inferred Resource of 125 million tonnes at an ISO brightness of 85.2%.

Highlights

- Recent drilling program yields fresh kaolin resource data at Kerrigan tenement

- Inferred Resource of 125 million tonnes of kaolin reported

- 47% increase in the kaolin tonnage compared to previous estimates

This is a significant increase (47%) on the previous Geos Mining 2011 estimate of 85 million tonnes at an ISO brightness of 85.1%. The updated resource estimate is based on latest drilling completed throughout the deposit in order to verify some of the earlier drilling and obtain samples for further test work and analysis.

The Kerrigan deposit is located 20 km south of the central wheatbelt town of Hyden, Western Australia and sits within exploration licence E70/4718-I, that covers an area of approximately 480 km2 . The licence was granted in 2015 and is 100% owned by Altech.

Managing Director Iggy Tan stated "Currently the kaolin feedstock required for the Johor high-purity alumina (HPA) is sufficiently supplied from our 100% owned Meckering deposit, which has a life of mine of more than 250 years. The Kerrigan kaolin project has been developed as a separate stand-alone kaolin project which the Company will be looking to divest should an attractive offer be forthcoming'".

Geos Mining completed a Mineral Resource Estimate (MRE) for the Kerrigan deposit in 2011 in accordance with the requirements of the JORC Code at that time. The previous Mineral Resource Estimate was based on drilling data from CRA Exploration (CRAE) and Graphite Holdings carried out between 1993 and 1994, and an Inferred Resource of 85 million tonnes at an ISO brightness of 85.1% was reported.

In 2020, Altech completed a program of 27 aircore drillholes collared throughout the deposit in order to verify some of the earlier drilling and obtain samples for further test work and analysis.

In accordance with the classification of Mineral Resource as specified in The JORC Code (2012), Geos Mining considers that the Kerrigan Resource can be classified as an Inferred Resource. The Mineral Resource Estimate of 125 million tonnes (Table 2*), with estimated ISO brightness of 85% and average yield of 43.9% (as measured on the minus 10-micron fraction), was determined based on these recent aircore drilling results.

The current Mineral Resource Estimate (Table 2*) reports an increase in kaolin tonnage of 47% when compared to the previous estimate determined by Geos Mining in 2011 which estimated 85 million tonnes of kaolin.

Geos Mining consider that the reasons for the increased tonnage are:

- Additional drilling data that has improved confidence in the previous results and has confirmed the overall global resource

- Some barren or low grade areas were able to be modified

- The revised geological interpretation indicates additional continuity of mineralisation

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/82429O34

About Altech Chemicals Ltd:

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.

Contact:

Corporate
Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: [phone]
Email: [e-mail]

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: [phone]
Email: [e-mail]

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: [phone]
Email: [e-mail]

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