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AMMG signs option agreement to acquire an exclusive licence for processing kaolin to alumina

Posted on 28 Nov 2011

ammg.jpgChinese technology owner grants AMMG a five-year option to acquire the exclusive unconstrained Australia-wide technology licence for the processing of kaolin or aluminous clay to alumina via an acid-based technology process. This unique technology process has successfully produced samples of 86 g of 99.99% high purity alumina and 1.06 kg of 99% smelter grade alumina from AMMG’s Meckering kaolin. It is a unique kaolin to alumina technology via an acid-based process, whereby the separation of silica from the kaolin leaves 99-99.99% alumina.

Technology owner, Professor Shang, is a Senior Chemical Engineer and Associate Professor of chemistry based in Southern China. The option agreement is for a period of five years with remuneration terms yet to be agreed. Shang has worked in China for the last 21 years researching advanced kaolin processing techniques. Professor Shang’s earlier work includes researching kaolin-based oil refining additives for industrial production, pilot plant research and kaolin research for catalytic convertor technology.

Following the execution of the option agreement, AMMG will continue to work closely with Shang towards advancing and tailoring the unique technology process to the specific attributes of AMMG’s particular kaolin material, which has relatively high alumina and low impurity levels.

Shang is scheduled to relocate into a new kaolin laboratory testing facility early next year. It is anticipated that early next year additional samples of AMMG’s kaolin will undergo further testing through a “scaled” pilot plant, which will be a continuous process rather than the batch laboratory process previously used. This will enable AMMG to evaluate the attributes and cost benefits of the technology process prior to any pilot plant studies or exercise of the option under the option agreement. It is anticipated that the results from this continuous process could be available over the coming year.

Under the terms of the option agreement, the Company is free to advance its own processing technologies and explore other potential licensing opportunities. However, at this stage of the company’s development, the use of the Chinese technology is seen as a potential means to expedite growth and development plans.

AMMG, listed on the ASX in January 2010. The Company was established for the purpose of securing exploration ground over areas that have typically been subject to historical exploration and where significant geological data was available and/or the land was considered sufficiently prospective. Areas with existing or potential access to infrastructure were also targeted.

To date, the company has identified project areas located in Western Australia and Queensland, which the board believes may have the potential for the realisation of economic resources of these commodities currently targeted – iron ore, kaolin, coal, gypsum, mineral sands and salt.