FYI Achieves Outstanding Grade Recovery of 99.999% (5n) Purity Alumina

FYI Achieves Outstanding Grade Recovery of 99.999% (5n) Purity Alumina

ID: 589548

(firmenpresse) - FYI Achieves Outstanding Grade Recovery of 99.999% (5n) Purity Alumina

- FYI has successfully produced 99.999% alumina (5N) during the Locked Cycle test work it is currently undertaking

- The 5N product was produced via FYIs standard process flowsheet and within standard operating conditions

- Achieving the 5N product demonstrates the quality of the process design and suggests that there is potential for positive improvements to the project capex, opex and overall economic case previously set out in the pre- feasibility study (PFS) released to the ASX on the 25th September 2018.

- The 5N market is moderate in size compared to the 4N market, however it is forecast to grow at a rapid rate (~ 22% CAGR)*

- To date no other ASX listed kaolin HPA company has demonstrated the ability to produce ultra-high purity 5N product

High Purity Alumina (HPA) developer, FYI Resources Limited (ASX: FYI) (the Company or FYI) is pleased to announce the production of 99.999% purity Al2O3 during continued product development and benchmark variability test work for the Companys flagship HPA Project bankable feasibility study (BFS). The purity of 99.999% alumina was independently analysed and verified by Ultra Trace Pty Ltd in Perth.

As a component of the BFS test work and Locked Cycle testing (please see FYI ASX announcement 6th March 2019), the Company has achieved the outstanding product grade of 99.999% alumina.

The test work is designed to provide data and information from the process flowsheet results of the laboratory-based test work as a replication of the full scale (production sized) process design.
https://www.irw-press.at/prcom/images/messages/2019/46164/ASX _ FYI _ achieve 99 999% HPA _ finalPRcom.001.jpeg

FYI Resources 99.999% (5N) high purity alumina

FYIs Managing Director, Mr Roland Hill, commenting on the results said: Achieving 99.999% or 5N HPA is an extremely encouraging result. Not only is it an incredible outcome to attain this level of purity, it also has a potentially profound impact on the overall project economics.





Whilst focusing on the 4N as the predominant HPA market segment, FYI sought to produce 5N HPA to demonstrate the flowsheet effectiveness, as well as to develop an additional product line that could supply a market that displays forecasted long-term growth at a significant premium to the 4N market.

Demonstrating the strong premium to the 4N market, Allied Market Research estimates 4N HPA product to sell in a range from US$30,000 - $35,000/t in 2018/19 versus over US$50,000/t for 5N. We believe the ability to generate such a ultra-high purity product continues to demonstrate the Cadoux Kaolin Project is world-class potential and we look forward to progressing discussions with possible end use customers.

5N HPA Market Expected to Grow

4N HPA is a highvalue product that has many broad traditional applications and is increasingly becoming a critical component in the electric vehicle , battery and power storage markets.

5N is a sub-set of the HPA sector with smaller market applications that are generally tailor-made to the special requirements of each customer. However 5N attracts a significant premium in pricing over 4N due to its use in very complex applications. The greater portion of use for 5N being in the medical, aerospace and defence, and automotive sensors sectors.

5N HPA finds application in LEDs that are used in traffic lights, outdoor displays, and high-performance back light units. The growing demand for these products is one of the key driving factors for the 5N market. Leading players in this market are focusing on developing environmentally friendly 5N HPA using less energy. Such product innovations and technological advancements may provide an opportunity for FYI Resources in the world HPA market.

Global market share by HPA purity
Allied Market Research - HPA Report 2016
https://www.irw-press.at/prcom/images/messages/2019/46164/ASX _ FYI _ achieve 99 999% HPA _ finalPRcom.002.png

Global 5N HPA Forecast Demand
Allied Market Research - HPA Report 2016
https://www.irw-press.at/prcom/images/messages/2019/46164/ASX _ FYI _ achieve 99 999% HPA _ finalPRcom.003.png

Allied Market Research (HPA Market Report 2016) has stated the Asia-Pacific 5N HPA market generated revenue of $430 million in 2015 and is estimated to generate a revenue of $1,554 million by 2022, registering a CAGR in sales of ~ 21.9% during the forecast period.

5N HPA Testwork: Further Detail

The 99.999% Al2O3 sample was generated by combining phase 1 precipitate solids from previous testing to determine the aluminium chloride hexahydrate crystal size.

The solids underwent another stage of precipitation testing with intermediate distilled water leaches to resolubilise the aluminium chloride hexahydrate. To target an increased grade, each precipitation stage targeted lower stage recoveries of ~90%, lower when compared to the +95% previously utilised for all other precipitation testing for 4N (99.99%) product material.

The assay for 99.999% HPA was conducted by Ultra Trace in Perth utilising the following method:

a. Lithium Borate Fusion at a 12:22 flux ratio;
b. XRF Analysis - Low Level detection;
c. Multi stage LOI by Thermal Gravimetric Analysis (300, 475 and 1,000°C);
d. Laser Ablation - Inductively Coupled Plasma - Mass Spectrometry.

Images of FYI Resources 99.999% (5N) high purity alumina at final stage of precipitation at laboratory
https://www.irw-press.at/prcom/images/messages/2019/46164/ASX _ FYI _ achieve 99 999% HPA _ finalPRcom.004.jpeg
https://www.irw-press.at/prcom/images/messages/2019/46164/ASX _ FYI _ achieve 99 999% HPA _ finalPRcom.005.jpeg

FYI Resources Independent 99.999% (5N) HPA Assay Results

Analyte Units Sample Analysis
(ppm)

Al2O3 99.999
Si ppm 4.67
Fe 0.00
Na 0.00
Ag 0.10
Ba 0.50
Ce 0.34
Co 0.10
Cr 5.00
Cs 0.03
Dy -
Er -
Gd 0.01
La 0.20
Mn 1.00
Nd 0.15
Ni -
Pr 0.04
Rb 0.10
Sc 0.10
Sm 0.02
Sn 0.80
Sr 0.20
Ta -
Th -
Ti -
U 0.01
V 0.30
W 0.10

For further information, please contact:

Roland Hill
Managing Director
Tel: 0414666178
roland.hill(at)fyiresources.com.au

Simon Hinsley
Investor & Media Relations
Tel: 0401809653
simon(at)nwrcommunications.com.au

About FYI Resources Limited

FYIs is positioning itself to be a significant producer of high purity alumina (4N or HPA) in a rapidly developing LED, electric vehicle, smartphone and television screen as well as other associated high-tech product markets.

The foundation of the HPA strategy is the superior quality aluminous clay (kaolin) deposit at Cadoux and positive response that the feedstock has to the Companys moderate temperature, atmospheric pressure HCl flowsheet. The strategys quality attributes combine resulting in world class HPA project potential.

Competent Persons Statements

Ore Reserves
The information in this report that relates to Ore Reserves is based on information compiled by Mr. Steve Craig, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Steve Craig is a full-time employee of Orelogy Consulting Pty Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The information is extracted from the Ore Reserve announcement released 29 October 2018 and is available to view on the Companys website at www.fyiresources.com.au .

Mineral Resources
The information in this report that relates to Mineral Resources is based on information compiled by Mr Grant Louw, under the direction and supervision of Dr Andrew Scogings, who are both full-time employees of CSA Global. Dr Scogings is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. He is a Registered Professional Geologist in Industrial Minerals. Dr Scogings has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves. The information is extracted from the PFS announcement dated 25 September 2018 and is available to view on the Companys website at www.fyiresources.com.au .

Metallurgy
The information in this report that relates to metallurgy and metallurgical test work is based on information reviewed and compiled by Mr Daryl Evans, a Competent Person who is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Evans is an employee of Independent Metallurgical Operations Pty Ltd, and is a contractor to FYI. Mr Evans has sufficient experience that is relevant to this style of processing and type of deposit under consideration, and to the activity that he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Announcements in respect to metallurgical results are available to view on the Companys website at www.fyiresources.com.au .

Appendix A March 2019

JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data
Criteria Commentary
Sampling Drilling sampling was previously reported (ASX:
techniques 9.7.2018).


Metallurgical test work applied to the
recovered drilling samples is intended to
determine aluminium leach and precipitation
characteristics of the kaolin. Sample
preparation and metallurgical test work was
performed by Independent Metallurgical
Operations Pty Ltd (IMO) in Perth, Western
Australia.


Drilling Previously reported (ASX: 9.7.2018).
techniques

Drill sample Previously reported (ASX: 9.7.2018).
recovery

Logging Previously reported (ASX: 9.7.2018).
Sub-sampling Drilling sampling was previously reported (ASX:
techniques 9.7.2018).
and sample
preparation
The sampling techniques for the metallurgical
test work was in line with industry standards
in determining composite samples
representative of the resource. This included
drying and splitting of individual samples and
then compositing into representative samples.



The sampling procedures were under the control
of qualified and experienced IMO employees and
considered adequate for the intended
metallurgical test
work.

Master composite samples were prepared
representing the Cadoux resource with alumina
feed grades ranging from 21.5% to
21.2%.

The composites underwent a stage of
attritioning with the products screened to
generate fine and coarse size
fractions.

The fine attritioned product underwent one
stage of calcination to convert kaolin clay to
metakaolin.

The calcined product was leached with
hydrochloric acid at
temperature.

The leach liquor underwent a series of
precipitation stages, involving hydrogen
chloride gas being sparged through the leach
liquor allowing the precipitation of solid
aluminium
chloride.

Conversion of the final solid aluminium
chloride to alumina involved a two stage
calcination process with the final product
achieving 99.997%
Al
2O3 purity.
Sizes and representative nature of the samples
is considered
appropriate.


All procedural work and preparation was
conducted under strict controls and
supervision. All testwork was conducted under
test conditions by qualified and experienced
technicians and overseen by qualified managers
including Mr Alex Borger and Mr Daryl Evans
(
Independent Metallurgical Operations Competent
Person).


Quality of Analysis for the leach test work was deemed
assay data appropriate for the detailed test work as it
and was undertaken in laboratory environment with
laboratory precision equipment and included worldwide
tests accepted controls.



Metallurgical reviews and testwork has been
overseen and approved by Mr Alex Borger -
Metallurgical Project Manager and
Metallurgical Competent Person - Mr Daryl
Evans.


Verification The metallurgical test work was supervised by
of sampling suitably qualified personnel under laboratory
and conditions.
assaying

Primary data is captured on paper in the
laboratory and then re-entered into
spreadsheet format by the supervising
metallurgist, to then be loaded into the
companys database.



No adjustments are made to any assay data.
Location of All samples used in the metallurgical test work
data have been accurately recorded by the
points laboratory technician and checked by the
supervising metallurgist.


Data spacing Industry standard sample distribution and
and source material representation methodology has
distribution been
applied.

Orientation Industry standard sample distribution and
of data in source material representation methodology has
relation to been
geological applied.
structure The risk of sample bias is considered to be
low.


Sample All samples were under supervision at the
security laboratory. All residual sample material is
stored securely in sealed bags.


Audits or Mr Evans has reviewed QAQC results and found
reviews these to be acceptable.


Section 2 Reporting of Exploration Results
Criteria Commentary
Mineral Previously reported (ASX: 9.7.2018).
tenement
and land
tenure

status
Exploration Previously reported (ASX: 9.7.2018).
done by
other
parties

Geology The project area is underlain by weathered
granitoid Archaean rock of the

Yilgarn Granites is the likely parent material
for the kaolin. Here, deep weathering of the
feldspathic and ferromagnesian minerals within
the metamorphosed granitic has resulted in the
formation of kaolinite. There is no outcrop
but recognizable

granitoidal fragmental rocks are sometimes
present just below surface. The crust of the
overburden comprises gravel and sands over
reddish to off white clay. White kaolin
underlies the overburden followed by weathered,
partial oxidised and then fresh

ganitoids at depth. The recent drilling at the
property has revealed a weathering profile
which is very common in Western Australia with
the granitoid rocks, deeply weathered forming a
leached, kaolinized zone under a lateritic
crust. Analysis at the Laboratory shows
particle size distributions are typical of
primary style

kaolins produced from weathered granites. The
crust of overburden comprises gravel and sands
over reddish to off-white clay to an average
depth of 5m. White kaolin then averages
approximately 16 m before orange to yellow
sandy and mottled clays are intersected which
are followed by recognizable rounded granitoid
material. The thickness of the kaolin profile
varies from less than 1m to a maximum of 22m.
Fresh granitoids are found at depths of between
10 and 30m. All kaolin resources are within 4
to 11 metres of the surface. 75 Reverse
circulation

drillholes were completed with a total of 1,613m
drilled. All holes were drilled vertically.
Intersected kaolin thickness ranged from
4-28m.


Drill hole Sample and drill hole coordinates are provided
Information in market
announcements.

Data The nature of the metallurgical testwork did not
aggregation require data aggregation, however all data
methods points where noted and recorded in the
appropriate data base to be used in

continued test work and product development.
RelationshipPreviously reported (ASX: 9.7.2018).
between
mineralisat
ion widths
and
intercept
lengths

Diagrams Project related diagrams are presented in
various previous ASX
announcements
released to the market at the relevant time.
Balanced The reporting is considered to be balanced.
reporting

Other Metallurgical test-work is being conducted on
substantive composite kaolin samples by IMO. IMO are
exploration following a standard diagnostic flowsheet
data template to determine aluminium leaching and
precipitation characteristics of the
kaolin.

The test work involves the following procedure
of
composited
kaolin samples of the recent drilling program
(see FYI ASX announcement dated
9
th June 2018)
The sample was calcined at for one hour to
convert the Kaolin to an acid soluble
species.
The sample was then leached in 26% (w/w)
Hydrochloric acid at 20% solids and 100°C for
180 minutes with samples being collected to
provide kinetic leach
recoveries.

As a component of the Locked Cycle test work
(see FYI ASX announcement
6
th March 2019), IMO targeted high grade Al2O3 pro
duction.

Leach testing was conducted in a glass leach
vessel containing concentrated feed sample
scalped at 106 µm and concentrated industrial
grade hydrochloric
acid.

The 99.999% Al2O3 sample was generated by
combining phase 1 precipitate solids from
previous testing to determine the aluminium
chloride hexahydrate crystal size which had
been in storage for ~1
month.

The solids underwent additional stages of
precipitation testing with intermediate
Distilled Water leaches to resolubilise the
aluminium chloride

hexahydrate. To target an increased grade, each
precipitation stage targeted lower stage
recoveries of ~90%, lower when compared to the
+95% previously utilised for all other
precipitation
testing
.
The assay for 99.999% HPA was conducted by
Ultra-trace in Perth utilising the following
method:

a. Lithium Borate Fusion at a 12:22 flux ratio;
b. XRF Analysis - Low Level detection;
c. Multi stage LOI by Thermal Gravimetric
Analysis (300, 475 and
1,000°C);

d. Laser Ablation - Inductively Coupled Plasma -
Mass
Spectrometry.

Further workContinued metallurgical variability test work thr
ough the recently announced Pilot Plant studies
(see FYI ASX announcement
14
th February 2019) and Bankable Feasibility Study

(BFS) is ongoing and will be announced to the
market
shortly
.


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Datum: 13.03.2019 - 11:44 Uhr
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News-ID 589548
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