THE BOURSE WHISPERER: FYI Resources (ASX: FYI) has produced 99.999 per cent purity alumina (Al2O3) during continued product development and benchmark variability test work for the company’s HPA (high purity alumina) project bankable feasibility study (BFS).
FYI Resources declared the purity of 99.999 per cent alumina was independently analysed and verified by Ultra Trace Pty Ltd in Perth.
The company achieved the 99.999 per cent product grade from testwork conducted as part of the BFS designed to provide data and information from the process flowsheet results of the laboratory-based test work as a replication of the full scale (production sized) process design and Locked Cycle testing.
“Achieving 99.999 per cent or 5N HPA is an extremely encouraging result,” FYI Resources managing director Roland Hill explained in the company’s announcement to the Australian Securities Exchange.
“Not only is it an incredible outcome to attain this level of purity, it also has a potentially profound impact on the overall project economics.
“Whilst focusing on the 4N as the predominant HPA market segment, FYI sought to produce 5N HPA to demonstrate the flowsheet effectiveness, as well as to develop an additional product line that could supply a market that displays forecasted long-term growth at a significant premium to the 4N market.
“Demonstrating the strong premium to the 4N market, Allied Market Research estimates 4N HPA product to sell in a range from US$30,000 to $35,000 per tonne in 2018/19 versus over US$50,000 per tonne for 5N.
“We believe the ability to generate such a ultra-high purity product continues to demonstrate the Cadoux kaolin project is world-class potential and we look forward to progressing discussions with possible end use customers.”