PERTH (miningweekly.com) – The share price of junior FYI Resources was bumped by more than 5% on Tuesday on news that the company's high purity alumina (HPA) plant, in Western Australia, was nearing first production.
“The pilot plant is another key element for our disciplined HPA strategy that will ensure the Cadoux kaolin project is de-risked towards production,” MD Roland Hill said.
“We have arranged to deliver sufficient quantities of HPA product to our potential customers, which will greatly assist in negotiating binding offtake agreements and importantly, project financing.”
The pilot plant will operate for a period of one week, starting in June, and is expected to deliver some 170 kg of HPA.
The pilot plant is progressing in parallel with a bankable feasibility study for a planned 8 000 t/y HPA operation with a mine life of some 25 years.
FYI shares were trading at a high of 6.1c each on Tuesday, up from an opening price of 5.9c each.