Yes Chartrader, the more I read the recent announcement the...

Yes Chartrader, the more I read the recent announcement the better its looking, especially after further researching ie other ASX kaolin players.

The acquisition of this approved Mining Lease enables ZEO to not only fast-track their core technology and improve opex on synthetic zeolite production - they will be able to soon start generating early cash from simple as you say dig & ship DSO - with grades of close to 40% Al₂O₃ and Fe <1% out of the ground and ISO coming in at 84.5% (processed) I don't think there's any market that wouldn't buy this high-grade kaolin.



I needed to see if what ZEO has is really the best raw ore kaolin in Australia and after a little DYOR (which I recommend to all) my research has it looking that way - some snips from other ASX kaolin players ASX releases:

This is ADN ultra-bright kaolin - ISO 84.1 (ZEO 82.5- 84.5) and Al₂O₃ 36% at -45 micron say 30-60% recovery (ZEO 37-38% Al₂O₃ raw kaolin)



This is SUV ISO 80.4% (ZEO 82.5-84.5% and raw ore is 76% ISO) again easy to see...which reads better


Here's OAR - simply no comparison and this again is sized to -45 micron (not raw ore)



And finally, WAK kaolin all of which all sized -45 micron ISO 76 - 83.7% (recovery ~50% meaning the need to mine 2 tonnes) again ZEO has 76% ISO raw ore (= 100% recovery) and the gets up to 84.5% elutriated (wet sizing)


Looks pretty obvious to me ZEO ASX announcement needs a little adjustment
ZEOTECH TO ACQUIREONE OF AUSTRALIA’S HIGHEST GRADE KAOLIN PROJECTS HELD WITHIN AN APPROVED MINING LEASE

Chartrader, if your numbers are close say $100-200 profit tonne for simple dig and ship at say 200kT pa
$100-200/T DSO profit margin
=
$20m-40m cash in the door (even at 50%, this is looking good - especially on a side gig)

5m tonnes = 20-25 years alone and open in all directions of the good stuff (so plenty to work with)

And, then what I'm guessing is really behind the acquisition



Looks like a pretty exciting times ahead. GLTA