KAOLIN NOT JUST FOR INDIGESTION…. Sue Border COMMERCIAL KAOLIN White (white firing) non-swelling clay - Also called “China Clay” White (white firing)

KAOLIN

NOT JUST FOR INDIGESTION….

Sue Border

COMMERCIAL KAOLIN

• White (white firing) non-swelling clayWhite (white firing) non-swelling clay- Also called “China Clay”- Also called “China Clay”

• Dominantly kaoliniteDominantly kaolinite

World Production World Production 30mtpa (US$3b)30mtpa (US$3b)

Export markets Export markets 9mtpa 9mtpa

USES OF KAOLIN

v Papermaking Pigment/Filler/Coatingv Pigment in paint/inks Highv Plastics/Rubber Valuev Ceramics

o Mineral Filler Low Value Productso Source of Al2O3

o Refractories

Commercial EconomicsPREMIUM GRADE CRITERIA

A high priced Kaolin has :v Superior Brightnessv Superior Whiteness v Desired particle sizev High opacity (good hiding power)v Chemical purityv Low viscosity (for paper markets)v Other properties - abrasivity, conductivity,

etc

Pigment markets - Brightness Competitors

Pigment Price per tonne (A$)

v TiO2 $3500 - $6000v CaCO3 $350 - $500v Kaolin $200 - $1200

Kaolin gives good performance for the price

Markets - Paper Demand

v Paper demand increases with GDP

v Asian paper production to overtake USA by 2010*

Asia imports Kaolin from:Asia imports Kaolin from:

GeorgiaGeorgia BrazilBrazil UKUK

* Source: Pulp and Paper Magazine

TASMANIANEW ZEALAND

USA

EUROPE AND MIDDLE EAST

INDONESIA

THAILAND

MALAYSIA

AUSTRALIA

JAPANKOREA

TAIWAN

PROJECTPROJECT

LOCATIONLOCATION

CCANADAANADAWest CoastWest Coast

CHINA

KAOLIN FORMATION

v Economic deposits mainly weathering related

v Associated with laterite and bauxitev Formed in wet/dry tropical climatev Over 1500m rain pav Leaching process

LATERITIC WEATHERING

BAUXITE

IRONSTONE

MOTTLED

PALLID

BEDROCK

Leaching

of

cations

--- Highest water

--- Lowest water

MORE EFFECTIVE LEACHING

v More water flow (fresh water & permeability)

v More timev More bugsv Acid groundwater (oxidising organics)

§Parent is only important if time is short or leaching is slow.

REMOVAL OF IRON

v Ferrous leached more easily than ferric.v Least iron just below lowest water tablev But leaching is slow below the water

tablev Organic grey kaolins formed here.

DIAGENESIS OF KAOLIN

Feldspars & clays kaoliniteKaolinite increases in grain size

The perfect kaolin recipe - Formed below water table then

raised above it

SEDIMENTARY KAOLINS?

v Cannot separate kaolinite from other clays by sedimentation.

v All commercial kaolins are formed in situ (Pickering & Hurst 1997)

v Ball clays? (70% disordered kaolin).

SKARDON RIVER KAOLIN - discovery….

Andrew White in 1985• 19 holes• 2 in lease• Target of “Bulimba” kaolin found;• Older weathering kaolin noted.• Samples to CSIRO

SKARDON RIVER KAOLIN - exploration history pre SRK

v 1986 - Drilled 93 holes - geology onlyv 1987 - 1990 Bulk sampling & testworkv 1993 - 188 RC holes - geology & ‘clay’v 1994 - 10 DD holesv 1994 - 97 - Testing selected drill

samplesv 1997 - 207 RC holes - poor control

MISTAKES…..

o No initial raw valueso Did not relate metallurgy to geologyo Poor technical knowledge at board levelo Moving goal posts o Rolls Royce plant o Major cost over-runso No coordination of

consultants/contractors

GEOLOGICAL HISTORY…..

Cretaceous - Marine Shale

Uplift and Weathering...

Rolling Downs Formation

Claystone

Tertiary Sheet Fluvials

Bulimba Formation

Weathering to bauxite

Fluvial Channel Develops

Namaleta Creek Floodplain

Further Weathering…...

FluvialK3

Claystone

Claystone Mining

Conchoidal claystone

Fluvial in exploration pit

ML and Drilling

Wet Plant

DRILLHOLES AND OUTLINE OF FLUVIAL CHANNEL

Green – RC holes

Black – AKL grade control holes

RESOURCES

Purple – inferred claystone

Grey – measured claystone

Blue – inferred fluvial

Resource Summary

In 000s t Measured Indicated Inferred

Claystone 640 920 5,200

Meas + Ind

claystone 1560

Fluvial 728 4,270

Total 100 years at 75,000tpa.

Skardon Kaolin PropertiesClaystone

K3 Fluvial

Grit content(+ 45 )

3% 56% 55%

-45 psd 70% -1 75% -1 80% -1

Brightness, -5 ISO

65 60 70

Hydrous prod’t ISO

70 70 +80 +85

Calcined bright -ness ISO

90 – 91.5 83 91

• Hydrous Hydrous KaolinsKaolins

Plant capacity 75,000 tpa

• Wide range of industrial applications

• Represents the bulk of world supply

• Target of paint & rubber markets

Skardon Product Range• Calcined KaolinsCalcined Kaolins

Plant capacity 75,000 tpa

• Higher performance

• Better brightness, opacity

• Competes with TiO2

• Premium price

• Limited number of producers

• Paint, rubber, paper

Stage 1 Processing: Wet Plant

Kaolin OreKaolin Ore

BlungerBlunger

Degritting CentrifugeDegritting Centrifuge

Decanter CentrifugeDecanter Centrifuge

Disc-nozzle CentrifugeDisc-nozzle Centrifuge

High Gradient Magnet SeparatorHigh Gradient Magnet Separator

Membrane FilterMembrane Filter

Pipeline to Dry PlantPipeline to Dry Plant

SandSand

Tailings DamTailings Dam

Delaminating Mill, Delaminating Mill, Leaching circuitLeaching circuit

Stage 2 Processing: Dry Plant

Pipeline from Wet PlantPipeline from Wet Plant

Spray DryerSpray DryerPulveriserPulveriser

Calcining KilnCalcining Kiln

PulveriserPulveriser

CALCINED CALCINED KAOLINKAOLIN

HYDROUSHYDROUSKAOLINKAOLIN

MAJOR WORLD DEPOSITS

Georgia, USAAmazon, BrazilCornwall, UK ……….the odd one out

Hercynian granite 280mADebate weathering vs hydrothermalCoarse grained well crystallised kaolinVery limited available resourcesProduct yield 15-20%

Georgia - Geology

Cretaceous and Tertiary bedded kaolins

Exposed just south of Fall LineCap bentoniteCretaceous 60% -2micronTertiary 85% -2micron

Georgia - Economics

ADVANTAGESv Two types of kaolinv Expertise v Reputationv Transport for E

USA & Europe

DISADVANTAGESv Older updated

plantsv Mine locationsv High stripping

ratiosv Transport to Asia

Amazon Geology

Under bauxite exposed on slopes.Rio Jari – Pliocene, very fine grained

75% -2 micron. 36m thick deposit.Rio Capim – also Tertiary. Coarser

than Jari. Thinner and some grit.

Amazon Economics

ADVANTAGESFine Kaolin Modern plant

DISADVANTAGESv Pipeline distancev Transport to Asia

Summary of the Skardon River Kaolin Project

Long mine lifeLong mine life

Growing international demandGrowing international demand

Premium products Premium products

Exceedingly low CAPEX entry priceExceedingly low CAPEX entry price

Best logistics for AsiaBest logistics for Asia

Marketing and distribution agreements Marketing and distribution agreements

Technical Management ExpertiseTechnical Management Expertise

That’s it folks!