Andromeda Metals : Positive Results from Concrete and Coatings Application Testing

Andromeda Metals Limited

ABN: 75 061 503 375

Corporate details:

ASX Code: ADN

Cash (30 Sep 2020): $3.66 millionIssued Capital:

1,911,991,117 ordinary shares

238,545,623 ADNOB options

94,000,000 unlisted options

Directors:

Rhod Grivas

Non-Executive Chairman

James Marsh

Managing Director

Nick Harding

Executive Director and

Company Secretary

Joe Ranford

Operations Director

Andrew Shearer

Non-Executive Director

Contact details:

69 King William Road, Unley, South Australia 5061

PO Box 1210

Unley BC SA 5061

Tel: [phone]

Fax: [phone]

[e-mail]

www.andromet.com.au

ASX Announcement

12 November 2020

Positive Results from Concrete and Coatings

Application Testing

Summary

Halloysite-Kaolin Testing for Concrete Applications

• Testing of Great White Project halloysite-kaolin across a number of concrete application mix designs continues to deliver positive results.
• Early results are consistent with those recorded for the Hammerhead deposit which could allow supply to the concrete market on mining commencing at Great White.
• Clear strength gains were found in Self Consolidating Concrete.
• Long term concrete slump properties were maintained with halloysite- kaolin addition.
• Australian Concrete Standards Certification due in late November.
• Halloysite-kaolinperformed very well against the 32MPa concrete control displaying desirable properties in "slab on ground" applications.
• Concrete strength results were typically about 1.5MPa higher at 28 days, even with higher water content in the mix designs.
• Halloysite-kaolinaddition in concrete gave a very significant reduction in bleed.
• Investigations into the halloysite content vs. performance benefits are in progress.

High-Purity Kaolin Testing for Coating and Polymer Applications

• Ultra-highpurity kaolin (non-halloysite type) from Great White and Mount Hope has shown exceptional results for coating and polymer applications.
• Results from both deposits are of the highest quality, with brightness properties superior to market leading products which are currently sold for A$1,000/t (i).
• The Great White material was sourced from within and extensional to the existing mine design area and representative of the average purity.
• Samples are now being tested as feed for High Purity Alumina production due to the incredibly low level of impurities.
• Material from both deposits has been refined to commercial standard and can be used for customer approvals.

Discussion

Andromeda Metals Limited (ASX Code: ADN, Andromeda, the Company) is pleased to announce further positive results from testwork undertaken in the newly identified applications of concrete and coatings.

Halloysite-Kaolin Testing for Concrete Applications

Following receipt of some initial highly encouraging test results of halloysite-kaolin material in concrete and mine backfill applications, testing has continued and been expanded into a number of commercially important concrete application mix designs, and is continuing to deliver very positive results. A number of important handling and performance improvements of the concrete are being found with addition levels of only 1kg - 2kg/m3 of halloysite-kaolin, which Andromeda considers will make this potentially of genuine commercial interest for the existing domestic and global market. Testing will continue with official Australian Concrete Standards Certification anticipated in late November 2020.

The concrete industry represents a new and very significant domestic and global market opportunity for halloysite-kaolin where results to date indicate that it provides genuine benefits. Most importantly, at an addition level that makes it commercially attractive to use, it potentially represents a much higher value to Andromeda than other applications. Once the reduced amount of required processing is factored in, the opportunity becomes extremely compelling.

H-K in 40MPa Concrete

MPA & BLEED ML

60.0

50.0

40.0

30.0

20.0

10.0

0.0

48hrs

7 Days

14 Days

21 Days

28 Days

Bleed ml

CYLINDER AGE AND BLEED

Control #1 Control #2 1kg/m3 2kg/m3 4kg/m3

Figure 1 - Halloysite-Kaolin Results in 40MPa Concrete up to 28 Days

Figure 2 - Australian Standards Compliance Testing Progress

Concrete application areas under testing which are currently all showing positive results include; self- consolidating concrete, shotcrete, pool mix and deep foundation pilings. As a result, a large-scale underground shotcrete trial is planned to obtain real-life performance data on the benefits from halloysite- kaolin addition.

High-Purity Kaolin Testing for Coating and Polymer Applications

Exploration drilling carried out at the Great White and Mount Hope deposits identified significant regions of kaolin with minimal halloysite content, but of exceptional high purity. Whilst this material does not have the right balance of properties for porcelain customers, it is of significant interest to the coatings and polymer sectors where such mineralogy is highly desirable. Consequently, large representative samples of ultra-high purity kaolin from the Great White and Mount Hope deposits have been sent to Europe for processing and testing to determine their suitability for these high-value markets where commercial kaolin products (Imerys Supreme) are currently sold for approximately A$1,000/t (i) (see Appendix 1 to 6 detailing drillholes and assay results of the samples tested).

The ISO brightness and the particle size distributions of the refined products at 70% and 90% < 2um from both Great White and Mount Hope are exceptional, which indicates excellent potential in high value coatings and polymer markets. Ceramic fired brightness testing has been carried out as potential interest for product blending with halloysitic material, and the values were all over 100 (off-scale) which reflects the minimal impurities present. Positively, all processed samples were close to the theoretical maximum for alumina for kaolin and with virtually no colouring oxides or alkalis, which also indicates good potential to produce High Purity Alumina (HPA). The Great White halloysite-kaolin has already proven to be a premium feed for HPA production (refer ADN ASX announcement dated 4 February 2019 titled "High Purity Alumina testing confirms premium grade feed potential at Poochera") and so this ultra-high purity kaolin will now be evaluated as a potential further improvement.

The refined 90% < 2um products are superior to the top commercial grades globally, and even the 70% <2um products are better in brightness, which is highly unusual.

Grade	90% <2um	70% <2um	90% <2um	70% <2um	Eckalite	Supreme	Speswhite
					YMT
Country	Australia	Australia	Australia	Australia	Australia	UK	UK
Company	Andromeda	Andromeda	Andromeda	Andromeda	Imerys	Imerys	Imerys
Deposit	Great White	Great White	Mt Hope	Mt Hope
Brightness (%)	90.4	89.2	90.0	89.0	88.0	88.0	85.5
<2 um (%)	94	72	92	73	-	94	80
<1 um (%)	81	60	75	54	-	80	60
Surface Area (m2/g)	16	14	17	15	-	16	14

Table 1 - Comparison vs Current Leading International Commercial Grades

Suitable potential customers will now be selected for sampling with larger quantities planned to be produced through the pilot plant at Streaky Bay which the Company is currently recommissioning to replicate the feasibility plant processing facility in order to produce Great White products to further progress this market.

About Andromeda Metals

Andromeda Metals is an emerging industrial minerals company based in Adelaide, South Australia with a vision of becoming the world's leading supplier of high grade halloysite-kaolin. The Company's primary focus is directed towards the final evaluation and development of the world class Great White Kaolin Project into production in early 2022.

The Great White Kaolin Project covers two main geographic areas of interest, both situated in the western province of South Australia (Figures 3 and 4) and is located approximately 635 kms west by road from Adelaide and 130 kms south-east from Ceduna. The Project is a joint venture between Andromeda Metals and Minotaur Exploration Limited (ASX: MEP) in which Andromeda is currently earning a 75% equity interest.

Figure 3 - Project Location Plan

Figure 4 - Great White Joint Venture tenements

High quality halloysite-kaolin occurrences exist extensively across the Great White Project area making this a region of global significance for the mineral and capable of supporting a considerable long-life mining operation, should final feasibility studies determine the project to be commercially positive.

Andromeda Metals also holds a 100% interest in the Mount Hope Kaolin Project which is located approximately 160 kms southeast of the Great White Kaolin Project.

1. Andromeda Metals Halloysite/Kaolin Marketing Report by Frank Hart, First test Minerals - June 19th 2020

Contact:
James Marsh	Peter Taylor
Managing Director	Investor Relations
Email: [e-mail]	Ph: 0412 036 231
	Email: [e-mail]

Competent Person's Statements

Information in this announcement has been assessed and compiled by Mr James Marsh, a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Marsh an employee of the Andromeda Metals Limited has sufficient experience, which is relevant to metal recovery from the style of mineralisation and type of deposits under consideration and to the activity being undertaking to qualify as a Competent Persons under the 2012 Edition of the 'Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves'. This includes over 30 years of experience in kaolin processing and applications.

The data in this announcement that relates to the Exploration Results for the Great White Kaolin Project is based on information evaluated by Mr Eric Whittaker who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Whittaker is the Chief Geologist of Andromeda Metals Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code"). Mr Whittaker consents to inclusion in this document of the information in the form and context in which it appears.