The economics of ADN's project is heavily dependent upon the high grade halloysite in their resource. This section of the resource has an average Al2O3 grade of 36.9% and the levels of impurities are very low ( iron oxide 0.56%, titanium dioxide 0.45%).
LRS samples achieved an average assay of 20.54% Al2O3 ( so grade is just over half of the grade ADN used in the resource underpinning the ADN's PFS ).
LRS average iron oxide content in the assays is 1.77% ( for ADN 0.56% ).
LRS average titanium dioxide content in the assays is 0.57% ( for ADN 0.45% ).
Given the grade differences and the impurities I think unlikely the material in the part of the deposit assayed by LRS can be used to achieve the same sort of pricing, let alone margins and economics as ADN.
LRS data is from this announcement.
https://www.asx.com.au/asxpdf/20191120/pdf/44br7p7xmcp410.pdf
My calculation of averages from Appendix 1 of the above announcement is here:
ADN data is from this table of their announcement released 23 December 2019:
The economics of ADN's project is heavily dependent upon the...
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