TIDMATM
RNS Number : 1672A
Andrada Mining Limited
22 May 2023
22 May 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in
the United Kingdom pursuant to the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service (RIS), this inside information is now
considered to be in the public domain.
Andrada Mining Limited
("Andrada" or the "Company")
Production of the First Bulk Lithium Concentrate from the Pilot
Test Programme and Progress Update on Debt Funding
Andrada Mining Limited (AIM: ATM), an African technology metals
mining company with a portfolio of mining and exploration assets in
Namibia, announces that it has produced lithium concentrate in the
form of a high purity petalite concentrate. The concentrate was
produced as part of the Company's off-site pilot test programme to
investigate the metallurgical potential of the pegmatites from its
mineral license areas around the town of Uis in Namibia.
HIGHLIGHTS:
Saleable lithium concentrate
-- First bulk lithium concentrate produced from the off-site
pilot test programme using dense medium separation ("DMS"),
consisting of 0.5 tonnes of petalite.
-- The 85% pure petalite concentrate assayed 4.16 % Li(2) O.
-- Potential offtakers have indicated that this concentrate
composition represents a desirable lithium product.
-- The concentrate will be used to conduct test work with
potential offtakers, including petalite conversion to lithium
carbonate and lithium hydroxide.
Lithium bulk-sampling pilot plant
-- Construction of an on-site lithium pilot plant is on schedule
with completion due during June 2023, and commissioning expected to
commence in July 2023.
-- The pilot plant will enable the Company to expedite bulk
pilot test work and increase pilot production of lithium
concentrate.
Funding update
-- Senior debt facility from Development bank of Namibia ("DBN")
expected to reach contractual close at the end of May 2023 with
potential first drawdown in June 2023.
-- The conclusion of the Orion Global Resource facility
("Orion") is contingent on an intercreditor agreement between the
Orion and the senior lenders Development bank of Namibia ("DBN")
and Standard Bank.
Anthony Viljoen (CEO) commented:
"We are extremely pleased to announce the production of our
first saleable bulk lithium concentrate. This milestone follows the
previously reported successful laboratory scale test work and we
believe it moves us one step closer to full-scale lithium
production. With the completion of the on-site pilot plant
imminent, we intend to expedite bulk pilot test work on all our
mineral licenses. Simultaneously, we plan to increase pilot-scale
production of lithium concentrate for testing with potential
offtakers to achieve initial lithium sales.
We believe that this represents a huge step towards realising
the value of our mineral assets in Namibia and we look forward to
updating the market in due course."
FIRST BULK LITHIUM CONCENTRATE FROM THE BOND EQUIPMENT TESTING
FACILITY
Andrada commenced its pilot test programme for lithium during
the first quarter of the 2023 calendar year (see announcement dated
20 March 2023), consisting of bulk sampling and pilot processing.
DMS processing of bulk samples from the Company's Nai Nais (ML133)
licence is currently being conducted by Bond Equipment ("Bond"), a
specialist in mineral processing solutions and a test work provider
in South Africa. The first concentrate of 0.5 tonnes of high purity
petalite (lithium), as in the images below (Figure 1), is from
these bulk samples. Offsite pilot DMS processing at Bond is
ongoing, and the Company expects to produce more than ten tonnes of
concentrate from these samples.
http://www.rns-pdf.londonstockexchange.com/rns/1672A_1-2023-5-22.pdf
Figure 1 : Andrada Mining CEO, Anthony Viljoen, with the
petalite concentrate (left), and the DMS test plant at Bond
Equipment (right).
The concentrate grade achieved from the first concentrate of 0.5
tonnes is detailed in Table 1 . The iron (Fe(2) O(3) ) in the
concentrate is believed to be a product of the ferrosilicon used in
the DMS process and there is potential to reduce this contaminant
further through magnetic separation. The Company believes that the
concentrate may be suitable for both the industrial market
(glassware & ceramics), as well as feedstock for lithium
refineries producing lithium carbonate or lithium hydroxide. The
bulk sample for this pilot test had a head grade of 1.50% Li(2)
O.
Table 1 : Petalite concentrate assay .
Li(2) Fe(2) K(2) TiO(2) CaO MgO MnO P
O O(3) O
4.16% 0.14% 0.97% 0.002% 0.12% 0.07 0.01 0.21
------ ------ ------- ------ ----- ----- -----
Nai Nais bulk samples were prioritised because the currently
accessible Uis resource is weathered thereby impacting grades.
Higher grades are expected in the slightly deeper Uis resource
which will be accessible after the present push-back. Nonetheless,
the ML133, ML134 (Uis) and ML129 (B1C1) pegmatites display similar
styles of mineralisation. Therefore, based on exploration and
sampling results, Andrada regards this Nai Nais sample as
representative of the higher grade petalite portions of the Uis ore
body (ML134).
Preparation of the sample material entailed initially crushing
it to a top size of 8 mm at the Uis Mine circuit. Thereafter, it
was transported to the Bond test facility where it was deslimed at
0.5 mm and then screened into coarse and fine size fractions at
2mm. The above results were produced from the coarse size fraction
and processing of finer size fractions will be subsequently
piloted. The petalite concentrate will be used to conduct test work
with potential offtakers, including petalite conversion to lithium
carbonate or lithium hydroxide.
ON-SITE LITHIUM PILOT PLANT CONSTRUCTION UPDATE
Construction of the on-site lithium bulk-sampling pilot plant is
on schedule and on budget to be completed in June 2023. The pilot
plant consists of a crushing, screening, DMS and a gravity
separation circuit ( Figure 3 ). Following completion of
construction, the on-site pilot bulk processing for lithium is
expected to expedite Andrada's bulk pilot test work and increase
lithium concentrate production. The pilot plant processing capacity
will be 20 tonnes per hour with minimum annual production targeted
at 2,400 tonnes and an upper annual production target of 10,000
tonnes. This facility could generate annual revenues of between
US$5million to US$20 million at the upper levels of production
assuming an average grade of 4.0% Li(2) O and an average petalite
price of US$2,000. It is intended that a pilot lithium flotation
and sensor-based ore sorting circuit will be added in the
near-future to provide additional optionality in the treatment of
lithium ores.
http://www.rns-pdf.londonstockexchange.com/rns/1672A_1-2023-5-22.pdf
Figure 2 : Three-dimensional model of the lithium pilot
plant.
http://www.rns-pdf.londonstockexchange.com/rns/1672A_1-2023-5-22.pdf
Figure 3: Lithium pilot plant construction: May 2023
OVERVIEW OF LITHIUM METALLURGICAL TEST WORK
Andrada's mining licenses ML134, ML133 and ML129 are located
within a 40 km radius of the town of Uis ( Figure 3 ). They all
contain prolific pegmatite occurrences, containing lithium, tin,
and tantalum mineralisation. The ore minerals all tend to be
present in the same pegmatite rock, thereby providing potential
opportunity for producing multiple technology metals from the same
ore body. Petalite and spodumene appear to be the dominant lithium
minerals present in the mineralised pegmatites. Metallurgical test
work to date has focussed on the concentration of petalite due to
its prevalence in the current mining area on ML134. However,
spodumene beneficiation has been included in the future work
programme, in response to the discovery of spodumene occurrences on
ML133 and ML129.
DMS technology
Petalite test work included three different beneficiation
technologies, namely DMS, froth flotation and sensor-based ore
sorting. DMS technology exploits differences in mineral densities
to separate lithium minerals from the host rock. The petalite
mineral has a lower density than many of its associated gangue
minerals, allowing it to be separated at a cut density of
approximately 2.45 g.cm(-3) . Test work has indicated that it may
be possible to upgrade higher grade ore of more than 1.0% Li(2) O
to a saleable concentrate through DMS alone.
Flotation technology
Froth flotation has also been confirmed as a successful method
for concentrating petalite from a host rock. The flotation process
operates with a particle size range of between 20 and 250 microns,
requiring milling of the feed material. It is anticipated that
flotation of petalite may be necessary in sections of the ore body
that display a lithium grade of less than 1.0% Li(2) O, as well as
for areas where milling is required for optimal petalite
liberation. Flotation test campaigns conducted at independent test
facilities have demonstrated the plausibility of flotation as a
means of upgrading DMS pre-concentrated material to a saleable
lithium concentrate.
Sensor-based ore sorting technology
Andrada is simultaneously investigating sensor-based ore sorting
process as an alternative or complementary technology for
beneficiating lithium ore. Bulk ore sorting test campaigns by OEMs
(Original Equipment Manufacturers) using near - infrared sensor
technology have demonstrated the potential for petalite to be
pre-concentrated at a relatively coarse top size of approximately
60 mm. This provides the Company with additional processing options
for consideration for its planned lithium expansion.
http://www.rns-pdf.londonstockexchange.com/rns/1672A_1-2023-5-22.pdf
Figure 4: Andrada's mineral licenses in the Erongo Region of
Namibia. ML134, ML133 and ML129 occur within a 40 km radius of the
town of Uis.
FUNDING UPDATE
The Company is pleased to confirm that the senior debt facility
for USD 5,5 million (N$100 million) with the Development Bank of
Namibia, as detailed in the announcement of 5 July 2022 ("DBN
Facility") is now on track for contractual closure at the end of
May 2023, with initial drawdown in June 2023. A further update will
be provided in the next few weeks.
However, the conclusion of the US$25m funding facility with
Orion Global Resource Fund, detailed in the announcement dated 15
September 2022 (the "Orion Funding Facility") remains subject to
the finalisation of an intercreditor agreement between Orion and
the senior lenders DBN and Standard Bank. Further updates will be
provided in due course.
Andrada Mining Limited
Anthony Viljoen, CEO
Sakhile Ndlovu, Head of Investor
Relations +27 (11) 268 6555
Nominated Adviser
WH Ireland Limited
Katy Mitchell/Andrew de Andrade +44 (0) 207 220 1666
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Matt Hanson +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart
Varun Talwar +44 (0) 20 7710 7600
Tavistock Financial PR (United
Kingdom)
Emily Moss
Catherine Drummond
Adam Baynes +44 (0) 207 920 3150
About Andrada Mining Limited
Notes to editors
Andrada Mining Limited is a London-listed technology metals
mining company with a vision to create a portfolio of globally
significant, conflict-free, production and exploration assets. The
Company's flagship asset is the Uis Mine in Namibia, formerly the
world's largest hard-rock open cast tin mine.
Lithium laboratory test work completed during the 2022 calendar
year indicated a high-grade, ultra-low iron lithium petalite
concentrate. The test work to convert lithium petalite concentrate
to battery-grade lithium hydroxide was initiated with Nagrom, a
leading Australian processing company, and commercial engagements
with lithium petalite concentrate off - takers are on-going.
An exploration drilling programme is currently underway with the
aim of expanding the tin resource over the fourteen additional,
historically mined pegmatites, all of which occur within a 5 km
radius of the current processing plant. The Company has set a
mineral resource target of 200 Mt to be delineated within the next
5 years. The substantial mineral resource potential allows the
Company to consider economies of scale.
Andrada is managed by a board of directors with extensive
industry knowledge and a management team with deep commercial and
technical skills. Furthermore, the Company is committed to the
sustainable development of its operations and the growth of its
business. This is demonstrated by the way the leadership team
places significant emphasis on creating value for the wider
community, investors, and other key stakeholders. Andrada has
established an environmental, social and governance system which
has been implemented at all levels of the Company and aligns with
international standards.
-END-
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