Sandy Ridge Drilling Contract Awarded

Key points:

• Wallis Drilling awarded stage one 2,000 m air core drilling contract
• Drilling to confirm grade and volume of kaolin and geotechnical criteria linked to site selection
• Drilling to commence February 2014 and sample analysis results expected by March 2014
• Drilling support service contracts awarded to local WA firms
• Tellus’ 100% owned 59km2 Sandy Ridge tenement adjacent to a known thick kaolin bed
• 63 historic drill holes in the regional project area with 10 on Tellus’ tenement
• 179 to 512 million ton kaolin JORC exploration targeti
• Shallow nature of the kaolin geology promotes low cost drilling, mining capex and opex
• EOI already received for high value Kaolin off take from major Asian trading houses

Tellus Holdings Ltd (Tellus) is pleased to announce that Wallis Drilling has been awarded the stage one 2,000 m aircore drilling contract as part of the step out drilling program at the proposed Sandy Ridge Kaolin Project, 140 km west north-west from Kalgoorlie in Western Australia (WA).

The drilling campaign is expected to commence in February 2014, with results by March 2014.

The drilling will be on Tellus’ 100% owned 59km2 Sandy Ridge tenement which is adjacent to a known thick kaolin bed. There are 63 historic drill holes in the regional project area with 10 on Tellus’ tenement. The Project has a 179 to 512 million ton kaolin JORC exploration target prepared by independent exploration geologists Terra Search.

The drilling program will target the 3-5 metre deep, 7-35 metre thick kaolin bed. The drilling program has been designed to confirm the thickness, coherence, extent of the kaolinite horizon.

The air core chip samples will be collected from the target kaolin bed to confirm grade and volume of paper and other value added industrial minerals used in plastics, paint, polymers, leather and mineral bulking agent industry. Drilling also to confirm geotechnical criteria linked to site selection and the safety case.

The shallow nature of the kaolin geology promotes low cost drilling, mining capex and opex and a simple open cut operational model. Offtake Expressions of Interest (EOI) have already been received for high value Kaolin applications from major Asian trading houses.

Tellus’ Managing Director Duncan van der Merwe said “We are excited to start drilling in Western Australia. This is a milestone for the Sandy Ridge Project. After we have completed the drill result analysis, technical and commercial studies and reviewed feedback from customers we will reach our first ‘GO/NO GO STEP’. If the results look promising then Tellus will start a comprehensive community and government consultation process and detailed feasibility studies”.

We have a strong preference for contracting with local companies where possible. Tellus is pleased to have awarded the drilling contract and the drilling support service contracts to local West Australian firms. Tellus and its contractors are exploring Aboriginal employment opportunities.

Wallis Drilling Pty Ltd is a West Australian based contract drilling service company, offering Reverse Circulation drilling, Wallis Aircore drilling, Diamond Core drilling and Grade Control and Blast Hole drilling, all of which are suitable for mine based or remote exploration work.
Wallis Drilling is based in Midvale, Western Australia. The head office is situated in Beaconsfield Avenue on 15,000 square metres and includes an Administration and Engineering office, Main Store, Mechanical Workshop, Engineering Workshop and Fabrication Workshops. The company employs approximately 230 personnel and operates a fleet of 59 drill rigs and field support vehicles.

Tellus Holdings Ltd (“Tellus”) is an Australian exploration company in mine evaluation stage with an attractive portfolio of rock salt and kaolin deposits. Tellus’ flagship projects are a proposed underground rock salt mine in the Northern Territory and a proposed kaolin mine in Western Australia. Tellus is the parent of a group of companies that plans to be involved in mine building, processing and the sale of industrial and edible salts, associated salt minerals and kaolin. Proposed complementary businesses include the safe storage in voids created by mining as is done in countries like the UK, EU, USA and Canada.

Visit: www.tellusholdings.com.au or contact: