Tellus to Commence Bulk Sample Processing Pilot

Key points:

• Following success in raising capital Tellus Board approves Sandy Ridge pilot program
• Pilot to confirm bulk kaolin processing options, design and costings
• Results will complete outstanding conditions to formalise binding kaolin off-take agreements

Tellus Holdings Ltd (Tellus) is pleased to announce Board approval for the Sandy Ridge bulk kaolin sample processing pilot program following early success in the company’s capital raising efforts.

This follows the successful completion of laboratory scale processing which confirmed the Sandy Ridge kaolin, which is a valuable industrial mineral, is well suited for high value ceramic, paint, glass fibre and polymer industry grade products.

The pilot program will include further auger drilling to collect bulk samples of kaolin. Mineral processing specialists, will then build and operate the pilot processing facility to prove the concept and determine the best processing options, design and costings.

As in the past, Tellus will draw on international kaolin expertise to support the program being managed by domestic kaolin experts.

The final product from the pilot will enable the company to send bulk samples as a follow up to the lab samples previously sent to potential customers in Australia and Asia. This is a key requirement ahead of negotiating final terms and binding offtake arrangements with interested buyers.

“The bulk kaolin pilot plant operation will confirm the product specification of the kaolin for high value kaolin markets that include ceramics, paints, glass fibre and polymer industries,” said Tellus Managing Director Mr Duncan van der Merwe.

Offtake Expressions of Interest (EOI) have already been received for high value kaolin applications from major Asian trading houses and bulk sample testing is the main outstanding condition ahead of converting this interest into binding agreements. These offtake agreements are, in turn, of particular interest to institutional investors and project finance bankers.

Tellus Holdings Ltd (“Tellus”) is an Australian exploration company in mine evaluation stage with an attractive portfolio of rock salt and kaolin deposits. Tellus’ flagship projects are a proposed underground rock salt mine in the Northern Territory and a proposed kaolin mine in Western Australia. Tellus is the parent of a group of companies that plans to be involved in mine building, processing and the sale of industrial and edible salts, associated salt minerals and kaolin. Proposed complementary businesses include the safe storage in voids created by mining as is done in countries like the UK, EU, USA and Canada.

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