Suvo Strategic Minerals Limited (ASX:SUV) has executed a mining access agreement to obtain access to the tenement that contains its White Knight Kaolin Project in Gabbin, Western Australia.
The agreement will allow Suvo to commence a new drilling campaign at the 100%-owned project which has a maiden Inferred JORC Resource of 31.5mt of bright white kaolinized granite.
Drilling contractors and associated support personnel are scheduled, and the drilling campaign will commence shortly.
Executive Chairman, Robert Martin said the purpose of the drilling programme is to determine a JORC Compliant Measured Mining Reserve which is expected to be completed in December 2020.
Bulk samples of raw product will be sent to the United Kingdom for further metallurgical test work, the results of which will further define end- user specifications and potential product pricing.
Environmental studies, in parallel with economic feasibility studies, will commence immediately. The environmental studies will underpin the application for a mining licence whilst the feasibility study will focus on the economics and infrastructure requirements to build a wet processing and beneficiation plant. Concurrently, end users will be sent processed samples with the objective of securing off-take agreements.
Mr Martin said the commercial terms of the land access agreement consist of an indexed royalty of $2.00 per tonne of product sold preceded by an annual access payment of $50,000 until the commencement of productive mining operations.
“This is an excellent outcome for Suvo, having reached this critical milestone at such an early stage places Suvo in a unique position of being able to progress economic feasibility studies, mine planning and environmental aspects of the project with the utmost confidence in the ability to fully access and mine the tenements once completed. There is only one other producing kaolin mine in Australia and we are targeting be the second.”
