ADN Kaolin / Halloysite Resource Summary and Peer Data, page-41

This post is about GRADE, it's something that can confuse a lot of people, some have used this to their advantage, this is something you need to check out for yourself.


According to AXE the grade fraction that most ASX companies quote at is +10um, -40um

ADN quote at +10um, -45um, so if they quoted at -40, the AI2O3 % should go up, but let us just leave it at -45um.

On the recent infill drilling at Careys Well the average AI2O3 was 36.66% @ +10um, -45um. The lowest was 35.23%

This is high, very high.


So why am I talking about grade, well it seems that not all companies quote their figures at +10um, -40/45um

There is one company with a new project that has quoted a figure of 33.71% AI2O3, but to get that number they have used +10um, -10um, they have also quoted a figure of 29.5% AI2O3 @ +10um, -20um, see where I am going with this yet....... @ +10um, -45 they have an average of ~27% AI2O3. The funny thing is they have actually recorded the results at -45um, but for the headlines used -10um & -20um, to me, this says it all

There have also been posts about the size of this companies resource in comparison to ADN's, but for ADN's resource size they have just used the JORC figure, for their resource size they have used an estimated target size of a possible resource over all the tenements, makes no sense, make it equal.


This graphic is just Poochera, there is also Camel Lake and Mt. Hope.



The scary thing is this other company is 1/4 the MC of ADN

This company only have results from 24 holes, ADN just released results for 109 NEW holes, plus they have the data from MEP's drilling in 2011, plus they have pre 2011 drill data. 24 holes are a long, long way behind

They have ~$3.14m in the bank currently with $719,000 to be spent this 1/4
ADN have ~$5.80m in the bank currently with $900,000 to be spent this 1/4

The company has some milestones, 1 is to have a SS out in just under 3 years
ADN has a SS out


All in all I feel that ADN is undervalued at the moment compared to peers, not just the company mentioned, but others also.


ADN has:

A JORC
A soon to be updated JORC
A SS
A soon to be updated SS
A good amount of money in the bank, plus options to convert in the future
Very high grade AI2O3, as far as I can see we have the highest quality deposits
Halloysite, halloysite, halloysite
More than 1 deposit
Is not just Kaolin/Halloysite, but has other assets - Gold, Copper, Nanotech JV etc

I'm very, very happy to have a large (for me) holding in ADN, from the way its looking, they are setting it up for dividends to be paid in the future.

Just remember, don't just look at the headline, look at how they got to those figures