Sandy Ridge Drilling Successfully Completed

Key points:

• Tellus has successfully completed an aircore drilling program at Sandy Ridge Project, WA
• Sixty-one drill holes completed – 1,864 metres drilled in total
• Initial kaolin grade analysis positive – 776 metres sent for further quality analysis to independent laboratories in Australia and the United Kingdom
• Results confirm thickness and extent of kaolin bed – potentially low cost capex and opex
• Resource modelling and product assessment to take place following quality analysis results

Tellus Holdings Ltd (Tellus) has successfully completed an aircore drilling program at the proposed Sandy Ridge Kaolin Project, 140 kilometres west north-west from Kalgoorlie in Western Australia (WA).

The drilling program was designed to test the thickness, coherence and extent of the kaolin bed to confirm historic drilling results, kaolin grade and quality and site selection criteria for the safety case.

Sixty one drill holes were completed totalling 1,864 metres drilled. Preliminary infield grade analysis was positive, resulting in 776 metres of kaolinite samples submitted for detailed independent analysis.

Samples were assessed in Perth by experienced kaolin Project Manager, Mike Ingram from EPMS.

“On visual inspection kaolin appears of a good grade, with high yields and good consistent intervals of bright white kaolin,” Mr Ingram said.

Tellus Managing Director Duncan van der Merwe said the company was pleased with such positive initial results.

“Samples will now be sent to laboratories in Australia and the UK for independent grade and quality analysis,” Mr van der Merwe said.

The technical results will be used to optimise pilot plant design. Results are expected in April 2014, with resource modelling and product assessment studies to commence soon after.

Tellus Holdings Ltd (“Tellus”) is an Australian project development company. Tellus’ flagship projects are a proposed underground rock salt mine with a complementary backfill business supporting the resource sector in the Northern Territory and a proposed kaolin mine with a complementary backfill business supporting the resource sector in the Western Australia. The commodity business involves the export of edible, industrial salt and kaolin mostly to Asia. The proposed complementary backfill business involves the safe recycle, recovery, storage and disposal in voids created by mining – as is common in the UK and EU, the USA and Canada.

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