King River Resources switches to alternative route to HPA production

King River Resources Ltd (ASX:KRR) confirmed that its pre-feasibility study (PFS) test work and studies for the Speewah Project have identified a more direct route to complete a process design with a lower risk and a faster path towards high purity alumina (HPA) production. The company has decided to deliver the PFS using its HPA process using aluminium chemical feedstocks derived from other industrial processes, based at an industrial estate rather than at Speewah in the Kimberley of Western Australia. KRR believes this will assist in completing the PFS, fast track the production of HPA, and improve the business case. Simpler flowsheet The company recently announced the successful production of a high purity precursor compound from the industrial feedstock and test work is underway to further reduce the impurity levels in the precursor compound and improve the HPA purity. This alternative production circuit is a simpler process than the original process flow sheets and involves fewer purification steps, and it does not require the development of a mining operation, beneficiation plant, acid plant, leach tanks, filtration, neutralisation or tailings facilities, or associated infrastructure for a remote mining operation (haul road, accommodation camp, airstrip, borefield), and would involve less transport of reagents and products. The simpler flowsheet also offers possible advantages and economic benefits in capex and opex savings and fewer process and development risks. Notably, fewer process and logistical components to implement that may de-risk and fast track through Definitive Feasibility Studies (DFS), permitting, financing, construction and HPA production. PFS pending KRR’s decision to modify the PFS to deliver HPA from an alternative chemical feedstock will require additional engineering, test work and permitting studies which are now underway. Allowing for the additional engineering and test work requirement, the modified PFS is now expected to be delivered in quarter one 2021. The Speewah mine development test work and studies will continue, but the focus will shift towards a broader range of battery metals and master alloy compounds. Speewah Project The new HPA development plan does not preclude the future integration of the KRR’s HPA process with a flowsheet to produce vanadium and titanium products. A recent HPA market report by CRU International supports strong future demand and pricing of HPA. Particularly for grid battery storage and lithium-ion batteries in electric vehicles. The company is confident that this makes for a compelling business case to produce high purity products used in these green technologies.