Altech Chemicals granted Kerrigan project licence

THE BOURSE WHISPERER: Altech Chemicals (ASX: ATC) has been granted exploration licence E70/4718, also known as the Kerrigan project, located approximately 20 kilometres south of the Western Australian wheat belt town of Hyden and 335km south east of Perth.

The licence covers an area of approximately 480 square kilometres on freehold agricultural land.

It contains Inferred Kaolin Mineral Resources of 85 million tonnes at 85.1 per cent brightness (JORC 2004).

The Kerrigan project has the advantage of being 15km from the Hyden to Lake Grace railway line, which connects to the port city of Albany, as well as established sealed roads from Hyden to Perth and the ports of Albany, Bunbury, Esperance and Fremantle.

In 2011, previous owner, CRA Exploration conducted various mineral and chemical analysis on kaolin samples from various outcrops, diamond drill core and air core within the Kerrigan project.

“Based on this analysis, which returned results showing the samples had low levels of impurities (such as iron and sodium) and were high in alumina, the company is considering undertaking its own sampling and analysis campaign for the project,” Altech Chemicals said in its ASX announcement.

“The project may present an opportunity to provide kaolin as complementary high-grade feedstock for the company’s proposed Malaysian HPA project.”