WA Kaolin advances towards a robust year with first stage of processing facility construction at its Wickepin operation

WA Kaolin Ltd (ASX:WAK) is looking at a robust year ahead following the solid steps taken by the company in the December quarter that includes listing on the Australian Securities Exchange and beginning the first stage construction of a 200,000 tonnes per annum processing facility at its Wickepin operation. The company’s existing mining and Kwinana processing operations will continue during the first stage of construction to service the strong demand of WAK’s growing list of customers. The forward order book for the Kwinana plant is strong with production orders fully booked through to the first quarter of 2021. First stage construction of Wickepin east The first stage construction program will continue over the next 9 months, with the commissioning of the plant scheduled for Q3 2021, which will allow the company to achieve its production capacity of 200,000 tonnes per annum by the end of the calendar year 2021. Additional modular increases to production are planned in line with market demand and funding capability. Production continues at the company’s Kwinana operations, producing at a rate of up to 5 tonnes per hour. During the December quarter, the company received its first commercial order for its new product, CG-15, a new granulated product for the ceramics industry that WA Kaolin has been developing over the past 18 months, with a successful trial order in July. Concurrently, WA Kaolin continues to develop and expand its customer base using material produced at the Kwinana pilot plant. Corporate development The company was listed on November 26, 2020, with 640 shareholders after raising $22 million which capitalised the company at $56 million with 286 million shares. WA Kaolin holds the Wickepin Kaolin Project, 220 kilometres south-east of Perth, which has a 644.5 million tonne mineral resource, which includes an Ore Reserve Estimate of 30.5 million tonnes of kaolinised granite. The Wickepin project produces kaolin products for tier-one customers and the company aims to expand its production to 400,000 tonnes per annum in a two-stage strategy. Before listing, WA Kaolin released a Definitive Feasibility Study (DFS) for its Wickepin Project, which highlighted the robust economics of the plan to ramp up kaolin production to 400,000 tonnes per annum. There is scope to further increase production capacity beyond the 400,000 tonnes per annum due to the extensive mineral resource inventory within the granted mining lease. Resources and reserves The project comprises a mining lease, a general-purpose lease, a miscellaneous licence and retention licences. It is one of the largest known remaining kaolin resources in the world and contains: An inferred mineral resource of 644.5 million tonnes of high-grade premium kaolinised granite across all tenements; and A Probable Ore Reserve of 30.5 million tonnes in the mining lease. Existing mining and operations WA Kaolin's existing mining and Kwinana processing operations will continue during the first stage of construction and commissioning at East Wickepin to service the strong demand of the company's growing list of customers. The forward order book for the Kwinana plant is strong with production orders fully booked through to the first quarter of 2021.