Salty's Tampu MRE Guestimate

CR9: Exceptional kaolin brightness results announcementsummary

Not surprisingly when analysing any resource company, the key factor to focus on not surprisingly is the resource, the table below from CR9’s 7^th October announcement (page 2), reveals a great deal about the Tampu project and CR9.

The consistency of results across the resource and the average Al2O3 content, low critical impurity levels, brightness and yield is outstanding and kaolin industry leading, at a minimum from an Australian perspective.

As stated in the announcement:

“The superior quality of Tampu’s bright white high purity kaolin has the Company well placed to take advantage of the emerging high tech sector that’s expected to drive demand particularly in the high purity kaolin market.”

“The Tampu kaolin deposit has the right chemistry, is high in grade and ultra-high in purity which makes it an extremely appealing material and very marketable, in particular to the High Purity Alumina (HPA) market where basket prices can be up to $60,000 atonne for the highest quality refined HPA kaolin-derived products.”

“The Company has generated representative composite samples for HPA test work with resultsexpected in late 2021/early 2022.”

Whilst we await the MRE in the coming weeks I thought I’d do my best “back of the envelope” guestimate of what the resource size could be for the initial landholding for which drilling has been completed, remembering CR9 announced on 14^th September a 446% increase to their landholding, which is yet to be drilled…let that sink in.

Using the Map in today’s announcement we can infer the approximate footprint of Tampu’s bright white deposit is approximately 2.0km in length, and approximately 0.5km in width.

Using the results from the table above, we can approximatethe depth (thickness) of the resource is 11m.

Finally, SUV’s White Cloud deposit is approximately 30-50kms from CR9’s Tampu deposit. If we reference their announcement on 25/03/21 (page 10) in relation to their MRE for White Cloud, they used the bulk density figure of 1.8tn/m3, so now we have the key inputs to VERY roughly estimate what is the size of the Tampu resource, for that area currently drilled.

Salty’s CR9 back of the envelope MRE estimate for Tampu:

Length of strike x Width of Strike x Depth of Strike x Bulk Density of resource

= 2000 m x 500m x 11m x 1.8m/tn3

= 19.8 mil tonnes

Using SUVs 500,000 tn/p.a. as a guide, based on the above guestimate Tampu has a 40 year life of mine project….before we undertake any further drilling.

Happy for other HC contributors to have a stab and give us their best guestimate whilst we are waiting.

@AlfieKnows I know you have previously posted and had a position in CR9, is this still the case and what are you views on the initial MRE for CR9?

Any geo’s amongst us, who could shoot holes in my calc and guestimate? Correct or improve?

Another exciting reference point is ADN’s Great White DepositProject which has approximately 1.3mil tonnes of ultra-bright kaolin, or<3% of their resource suitable for the HPA market.

Based on the results provided today, it appears the bulk, if not all of CR9’s deposit could be suitable for the HPA market…when the HPA results are back in late 2021/early 2022, we can put a $$ figure on the project.