Sandy Ridge updated JORC indicated and inferred resource

  • JORC compliant Indicated Mineral Resources of 4.08 Mt of ceramic grade kaolin and 8.49 Mt of paint grade kaolin
  • Volume of usable material for long term storage and permanent isolation is 34.5 Mm3 and can support several hundred years of operations
  • Industry focused research test work confirms kaolin suitable for the higher value environmental waste services market
  • Provisional patent application lodged for method of inertisation of liquid waste

Tellus Holdings Ltd (“Tellus”) is pleased to announce an updated JORC compliant Indicated and Inferred Mineral Resource estimate for its Western Australian (WA) Sandy Ridge Project. Industry focused research test work confirms kaolin suitable for the higher value environmental waste services market.

Tellus’ 100% owned E16/440 tenement is 140km north-west of Kalgoorlie and covers an area of 59.3 km2.

The Sandy Ridge resource represents a continuous, well-defined zone of potentially economic kaolinite. The broad kaolinite zone of economic interest is quite regular in geometry with well-defined upper and lower boundaries.

Drilling has confirmed the presence of mineralisation over a length of 1,340m. Portions of the deposit remain open and potential exists to expand the resource in the east and northeast direction.

The ground available for long term waste storage and permanent isolation activities (depositing services) is not limited by the defined kaolin resource, and most of the site contains ground which is suitable for waste depositing purposes.

The volume of usable material is 34.5 Mm3, which, based on current mining assumptions, would allow for several hundred years of operations.

The estimation was carried out by Continental Resource Management Pty Ltd (“CRM”) and was based on drill results from Tellus drilling between February 2014 and April 2016.

Figure 1: Oblique view to NE showing usable material for waste depositing and drill-hole traces
Figure 2: Successful laboratory testing for liquid waste immobilisation

The Sandy Ridge Project kaolin deposit contains Indicated Mineral Resources of 4.08 Mt of Ceramic Grade Kaolin and 8.49 Mt of Paint Grade Kaolin, together with Inferred Mineral Resources of 1.9 Mt of Ceramic Grade Kaolin and 6.5 Mt of Paint Grade Kaolin, for total combined Mineral Resources of 20.9 Mt of kaolin (Table 1).

The kaolin mineralisation occurs within a sub-horizontal layer of weathered granite at depths between 3m and 46m. Mineralisation returning a minimum -45μ kaolin yield of 28% was included in the estimated resources, which were divided into Ceramic Grade Kaolin (maximum TiO2 0.35% and maximum Fe2O3 0.7%) and Paint Grade Kaolin (mineralisation not meeting Ceramic Grade criteria with a minimum ISO Brightness of 83%).

Analysis results indicate Sandy Ridge’s kaolin quality is potentially suitable for a range of enduses, including paint filler and tableware ceramics.

Additionally, Tellus is undertaking a range of industry focussed test work to confirm the suitability of kaolin for use in the environmental waste services market. Tellus is examining the use of kaolin as a binding ingredient to immobilise liquid waste materials and produce stable solid material suitable for long term storage and permanent isolation within the Sandy Ridge near surface geological repository.

“We are committed to finding innovative solutions for difficult to manage waste and provide permanent solutions for industry,” said Tellus Managing Director Duncan van der Merwe. “The results from the hydrocarbon waste test work we have completed are encouraging and further work is underway to assess the suitability of the Sandy Ridge kaolin for this use which is both higher value and offers environmental benefits.”

Tellus has lodged a provisional patent application for ‘A method for the inertisation of waste including hydrocarbonic viscous waste for a near surface geological repository’.

Table 1: Ceramic and Paint Resources (cut off yield >28%; Ceramic TiO2 <0.35% & Fe2O3 <0.7%; Paint cut off ISO Brightness >83%)

Competent Person Statement – Sandy Ridge Project
The information in this news update that relates to Mineral Resources is based on information compiled by Continental Resource Management Pty Ltd. Mr J.J.G. Doepel is Principal Geologist of Continental Resource Management and a Member of the Australian Institute of Geoscientists and of the AusIMM. Mr Doepel has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code (2012).

About Tellus Holdings:
Tellus Holdings Ltd (“Tellus”) is an infrastructure development company in the business of creating economic, social, and environmental value from waste, clay and salt resources. This dual revenue model involves mining the commodities kaolin clay and rock salt in thick dry remote beds which creates world’s best practice geological repositories. The voids created by mining are then used to store equipment, archives and waste using a multi- barrier system as part of an integrated safety case. Tellus plans to permanently isolate hazardous waste using environmentally sound management (ESM) principles that protect the environment and human health. Tellus also uses long-term storage to support the circular economy by placing like-with-like materials for operational safety reasons and to create opportunities for the future recovery of valuable materials. Tellus’ business model mirrors overseas solutions operating in the UK, Europe and North America. Tellus is developing the proposed Sandy Ridge facility in Western Australia (WA) and the proposed Chandler facility in the Northern Territory (NT). Both Sandy Ridge and Chandler were awarded Major Project Facilitation Service by the Australian Government and Chandler was awarded Major Project Status by the NT Government.

For further information:
Visit: www.tellusholdings.com.au or contact:

Duncan van der Merwe
Managing Director
Tel: +61 (0)2 8257 3395

Cameron Morse
FTI Consulting (Media)
Tel: +61 (0)8 9485 8888

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