Name of the Project
Yendon high-purity alumina (HPA) project.

Location
Victoria, Australia.

Project Owner/s
Pure Alumina.

Project Description
Yendon has rich kaolin deposits. Total measured an indicated resources are estimated at 3.68-million tonnes in situ grading 34.68% aluminium oxide, 0.08% calcium oxide, iron 0.82%, potassium oxide, 0.10% magnesium oxide, 0.17% sodium oxide, 48.42% silicon dioxide and 1.12% titanium dioxide. This is equivalent to 1.6-million tonnes of 34.7% kaolin concentrate.

A prefeasibility study (PFS) has determined that the project is technically and financially robust.

The PFS is supported by:

• a significant high-grade kaolin resource, which contains low levels of deleterious impurities;
• a shallow openpit mine design, with low stripping ratios, which can be efficiently contract-mined without blasting, crushing or grinding;
• simple beneficiation through screening the kaolin ore at the mine site to remove 57% of the ore mass, comprising mainly coarse silica, upgrading the ore to a 35% kaolin concentrate for transport to the hydrometallurgical process facility; and
• a robust chemical process to convert Yendon kaolin to HPA.

Projected yearly production is estimated at 8 000 t of HPA grading 99.99% aluminium oxide.

The project has an estimated 38-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 10% discount rate, of $691.83-million and an internal rate of return of 34%, with a payback of 4.1 years.

Capital Expenditure
The project has a low capital cost of $271-million, including contingencies of $53-million.

Planned Start/End Date
Construction is expected to start in the third quarter of 2022, with commissioning to follow in the next quarter.

Latest Developments
Pure Alumina has announced plans to place is Yendon high-purity alumina (HPA) project on the backburner to focus on its gold and copper assets.

The company has told shareholders that while there is strong forecast demand for HPA, the challenge of raising the capital required to finance a commercial operation has proven difficult in the current environment.

As a result, the Yendon project will be placed on hold until market conditions approve, with Pure Alumina also saying that the company "will consider alternative options for the future of the Yendon assets".

Key Contracts and Suppliers
Primero Group (PFS) and SRK Consulting, Mining Plus, BHM Process Consultants, Solution Development and Erias Group (PFS contributors).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Pure Alumina MD Martin McFarlane, tel +61 467 749 759 or email m.mcfarlane@purealumina.com.au.