Tech Metals: FYI Resources ready to test its pilot HPA processing plant
High Purity Alumina (HPA) Stock Resources for info (ASX: for info) takes its pilot processing plant for a week-long test drive.
It marks the next crucial step in the development of the project.
FYI first ordered the pilot plant – a smaller version of the real thing – in February using $ 1.1 million in funds up front of its annual R&D tax refund.
FYI, the plant will operate continuously 24 hours a day for the next seven days. The company hopes to demonstrate an “end-to-end” treatment of PAH, with an expected production of 1 kg per hour.
FYI, shares have risen in morning trading, but the action has struggled to fare well so far in 2019:
A bigger picture
The pilot plant is part of FYI’s larger business strategy. He will use the production to build a customer base and attract potential partners for his Cadoux Kaolin HPA project in WA.
The demand for HPA, which is now considered a key component in the manufacture of LED lighting and lithium batteries, is expected to increase significantly in the coming years.
The pilot plant was built this year in collaboration with two engineering partners and will deploy a “3-stage hydrochloric acid leach and precipitation circuit,” the company said.
“We are confident that the results of the trial will validate the results of our pre-feasibility study and provide excellent data for contributions to our definitive feasibility study which is currently being compiled,” said the CEO of FYI , Roland Hill.
The resulting product will be checked for quality control before it is passed on to groups of potential customers.
In other ASX tech metals news today:
Mineral Resources Limited (ASX: MIN) resigns from McIntosh. The company said it was pulling out of the graphite joint venture project with Hex Resources (ASX: HXG), because the economy does not stack up. Full ownership of the condominiums will now be returned to Hexagon.
And developer of battery materials Australian Mines (ASX: AUZ) announced that it will embark on another 10,000m extension drilling on its cobalt-nickel-scandium project in Flemington, NSW. The company is targeting an area of high grade cobalt, after previous drilling in the area resulted in a “footprint of cobalt mineralization tripling”. Shares of AUZ rose 4% to 2.5 cents.