The Conversation (0)
ChemX Materials Ltd (ASX: CMX) (ChemX or Company), an Australian based high purity critical materials developer, is delighted to announce a maiden resource on its 100% Company-owned Jamieson Tank deposit, located 150km from the infrastructure rich Port of Whyalla, South Australia.
- Maiden Mineral Resource 13.1 Mt at 5.7% Mn established with recent drilling program
- Significant potential upside with ~70% of the identified Jamieson Tank strike awaiting further extensional drilling of high grade, near surface targets
- Testwork shows the shallow resource has excellent upgrade characteristics
- Experienced global engineering firm Wood appointed to lead internal scoping study on high purity manganese battery grade products
- Manganese raw material demand set to double in next three years1
CEO Peter Lee commented:
“ChemX is pleased with the delivery of this maiden Mineral Resource Estimate (MRE) for the Jamieson Tank manganese deposit, the first of four manganese prospects within the South Australian 100%-owned tenements, and today represents a key milestone for the company’s shareholders.
“Importantly, the company expects to grow the mineral resource in grade and scale following the planned summer 2023/24 drilling program.
“This Mineral Resource defines a solid foundation for further strategic project advancement including internal scoping studies and mine optimisation plans, supported by the development of high purity manganese sulphate products for the global battery market. These studies will be supported by Wood (internal scoping study) and CSA Global (mine optimisation plan).”
MAIDEN MINERAL RESOURCE ESTIMATE FOR NEAR SURFACE DEPOSIT
ChemX has worked closely with ERM Australia Consultants Pty Ltd (trading as CSA Global) to execute an extensive (+6,000m) infill Reverse Circulation (RC) program delivering the following maiden Mineral Resource Estimate (MRE), reported in accordance with the JORC 2012 Code.
Table A: Mineral Resource estimate (MRE) summary, with applied grade cut-off 4%Mn
Testwork has demonstrated excellent upgradability through gravity and magnetic separation and ChemX is moving swiftly to execute a follow up drill program to bolster this maiden Mineral Resource Estimate.
Initial holes intersected high grade zones of +20% Mn in the following drill holes.
Table 2 – High grade intersections (from a total of 94 RC drill holes for 6,173, see full assay data, ASX 9 May 23, 27 Apr 23, 17 Apr 23)
SOUTH AUSTRALIA - INFRASTUCTURE RICH
The project is well positioned to take advantage of world-class regional infrastructure including sealed roads, rail networks, port operations, grid-power and an emerging renewable energy hub in Whyalla. ChemX has commenced an internal scoping study for the evaluation of the full High Purity Manganese (HPM) project including a possible hydrometallurgical facility in Whyalla supported by a skilled residential workforce and associated infrastructure.
WORLD CLASS BATTERY DOWN-STREAM OPPORTUNITY FOR SOUTH AUSTRALIA
ChemX seeks to develop South Australian sourced Manganese into a world-class HPM product for use within global battery supply chains, particularly Electric Vehicle (EV) markets. This will require a Beneficiation Plant, likely to be located in the Central Eyre Peninsula region and also a Hydrometallurgical facility, currently proposed to be located in Whyalla. It is envisaged both operations will create significant employment within a burgeoning Critical Minerals and High Purity Materials industry in South Australia.
Click here for the full ASX Release
This article includes content from ChemX Materials, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CMX:AU
ChemX Materials Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
ChemX Materials
Overview
ChemX Materials (ASX:CMX) is an Australia based high-purity critical materials business. The company is driven by its vision to support the energy transition by providing the critical materials required to achieve real solutions that lower carbon emissions. ChemX’s goals are achieved with a dual-focus approach involving its High Purity Manganese (HPM) project and its HiPurA® High-Purity Alumina (HPA) project. The company is also focused on maintaining a strong ESG framework over the development of its projects.
The electric vehicle (EV) revolution is well underway, but many investors aren’t necessarily paying attention to all the metals involved. Lithium, cobalt and nickel are well-known for their roles in EVs, but manganese remains a forgotten metal. High-purity manganese (HPM) is a critical part of the battery cathode chemistry for lithium-ion batteries found in EVs. It adds substantial stability and energy density to the battery.
As manganese is also a key ingredient in steel making, which continues to drive demand, only less than 2 percent of global manganese production is converted into the high-purity manganese for lithium batteries. A key bottleneck in the supply chain is the lack of processing infrastructure needed for the purification process. This creates the opportunity for ChemX operating in Australia, with its low sovereign risk, skilled workforce and first-class infrastructure, to supply this rapidly growing market.
In early 2023, ChemX completed a drilling campaign at its manganese deposit located on the Eyre Peninsula in South Australia. The campaign consisted of 6,164 meters of reverse circulation drilling (RC), designed to infill the drill spacing over the northernmost 2-kilometer strike of the Jamieson Tank Manganese deposit for the purpose of estimating a maiden mineral resource. ChemX accelerated the development program of the manganese assets in response to changing market dynamics generated by the United States Inflation Reduction Act (IRA), and the changing lithium-ion battery chemistries, which requires increasing amounts of manganese to promote energy density, battery stability and lower costs.
In addition to the Jamieson Tank project, ChemX has identified further manganese prospects at Bunora West, Hodgins, Windyzell, Francis and Polinga. These prospects have not been adequately explored and offer future discovery potential and feed options for the proposed high-purity manganese sulphate production plant.
Figure 1. ChemX Manganese Deposit Eyre Peninsula South Australia.
ChemX expects to receive drilling assay results throughout FY Q3 2023, which will be used to estimate its maiden mineral resource. At the same time, ChemX is also advancing its beneficiation and high-purity manganese flow sheet metallurgical studies.
The company has embarked on a number of agreements to solidify its position as a future global supplier of battery-grade manganese. The first is a memorandum of understanding (MOU) with C4V, a leading global lithium-ion battery technology company, to enter the qualification process towards an offtake agreement. ChemX also has an MOU with Pure Battery Technologies (PBT), to supply manganese to PBT’s planned battery material refinery hub in Kalgoorlie Western Australia.
In August 2023, ChemX received up to AU$6 million in financing package from Mercer Street Global Opportunity Fund, an existing institutional shareholder of the company. This recent financing is part of ChemX's strategy to secure key investment capital from leading US institutions to advance the company's projects in high-purity materials essential for the global energy transition.
An experienced management team leads ChemX, including: Mark Tory, chief executive officer, who brings vast experience in project development; Stephen Strubel, executive director, with 20 years of experience across financial markets, mining exploration and corporate governance; Peter Lee, chief operating officer, a chemical engineer with over 20 years of operational and project development experience; and David Leavy, marketing and strategy, with 30 years of experience in finance, corporate management and product/commodity marketing. Board chair Warrick Hazeldine has 20 years of experience in capital markets and strategic communications. The management team is rounded out by experts in metallurgy and chemical engineering.
Company Highlights
- ChemX Materials is an Australia-based high-purity critical materials business.
- Rapidly advancing an integrated battery-grade manganese mining and processing project at its 100-percent-owned manganese project on the Eyre Peninsula in South Australia
- The company has developed the HiPurA® HPA process, a novel, innovative process for producing high-purity alumina used in the manufacture of lithium-ion batteries. Testwork has indicated its process is a low-cost and low-energy alternative to conventional processes.
- The HiPurA® HPA process is not tied to a mining operation, allowing ChemX to build production facilities close to the end-users.
- An experienced management team leads the company towards its goals of supporting the world’s transition to clean energy.
Key Project
High Purity Alumina (HPA)
ChemX’s HPA process was developed in-house and can produce HPA and high-purity aluminum cathode precursor salts for use in lithium-ion batteries, LEDs and semiconductors. Initial testwork indicates that the novel process is low-cost and low in energy consumption compared to traditional technologies. Additionally, ChemX’s process is not tied to mine production allowing production to be developed close to the end users. A pre-feasibility study for HiPurA® HPA was completed in August 2022, which provided the green light for the project to advance towards pilot plant design and the commissioning of the integrated HPA facility in Perth.
Throughout 2023, ChemX will be operating an HPA micro plant to produce HPA samples, refine the flow sheet, collect data and de-risk the pilot plant construction, which was the subject of the pre-feasibility study. The detailed design phase of the pilot plant is now underway.
Figure 2 - HPA Coating in Lithium-Ion Battery Separators.
The ChemX Materials HPA process is a significant development in the HPA market with a vastly simplified flow sheet allowing for operation to start at small scales of circa 2,000 tons per annum (tpa) and scale up with demand growth, providing lower capital costs, less energy and re-agents usage than the US Bureau of Mines’ (USBM) Kaolin to HPA Process. Smaller scale plant operation would allow for co-location of production facilities within gigafactories or separator manufacturers. The HPA market is highly specialized with requirements for varying particle sizes and morphology, which smaller scale operations can effectively target allowing ChemX to gain a foothold in the market and establish credentials before scaling up operations.
Figure 3. ChemX HiPura HPA Flowsheet
Management Team
Peter Lee - Chief Executive Officer
Peter Lee is a chemical engineer, who has more than 20 years’ experience working in several large mining companies, across Australia and Canada. Having commenced his career with Mount Isa Mines (MIM), then Rio Tinto (Queensland Alumina Ltd and Gove Alumina), his last role was executive process-mechanical, with WSP Golder. In this role, Lee led multi-disciplinary teams in domestic and international mining, metals and chemical industry related process design, evaluation and optimization studies.Lee received honors in a Bachelor of Chemical Engineering (UNSW) and has completed a Master of Business Administration (CQU). Along with technical experience and qualifications, Lee also brings strong leadership and management skills with significant knowledge and networks within the mining industry.
Stephen Strubel - Executive Director
Stephen Strubel has 20 years of experience across financial markets, mining exploration and corporate governance and statutory financial reporting. Strubel is one of the founders of ChemX Materials and is responsible for corporate affairs and corporate development.
Warrick Hazeldine - Non-executive Chair
Warrick Hazeldine has more than 20 years of experience across capital markets and strategic communications. He was the co-founder of advisory firm Cannings Purple. He is the non-executive chair of Global Lithium Exploration Ltd (ASX:GL1) and a director of Surfing WA.
Alwyn Vorster - Non-executive Director
Alwyn Vorster is a mining executive with 30 years of experience in the Australian, African and Asian minerals industry across a range of commodities including iron ore, coal, mineral sands, graphite, salt, potash and various other industrial minerals. He has a proven track record of delivery in exploration, project development and approvals, infrastructure access, project transactions, and company mergers and acquisitions - all underpinned by strong operational leadership, financial discipline and technical and commercial capability
Tara Berrie - Non-executive Director
Tar Berrie is a seasoned professional with over 15 years of experience in the mining, chemical, and construction materials industries, specializing in the battery materials sector for the past seven years. Berrie is currently the senior group manager (battery metals) at Rivian Automotive, an American electric vehicle manufacturer and automotive technology company founded in 2009.
David Leavy - Marketing and Strategy
David Leavy has over 30 years of experience in the finance, mining and refining markets, including over five years focused on high-purity alumina marketing and production technologies. He is responsible for developing the necessary relationships in the lithium battery and HPA supply chains to ensure the successful development of ChemX’s projects
Dr Nicholas Welham - Technical Consultant
Dr Nicholas Welham has over 30 years of experience in minerals processing. He was an adjunct professor of lithium processing at the WA School of Mines and principal of boutique hydrometallurgical consultancy Welham Consulting. He has 50 patents granted and holds a PhD in minerals engineering from the Royal School of Mines, Imperial College London. He is responsible for developing ChemX’s innovative process to produce HPA.
SensOre
Overview
Australia is already a particularly well-invested and well-established region for mining operations. Western Australia is particularly impressive, contributing to 63 percent of the country’s total mineral exploration expenditure. Australia is also one of the top five producers of minerals in the world for resources like alumina, lithium, zinc and manganese among others, with significant resources found in Western Australia. Given that mineral demand is on the rise and expected to continue to increase, there is a present and future opportunity for mineral exploration in Australia.
SensOre (ASX:S3N) is an Australia-based minerals-targeting company working to meet the need for better mining exploration methods and has the advantage of running its operations out of Western Australia. SensOre aims to combine its proprietary artificial intelligence (AI) and machine learning (ML) enhanced technology with its significant geoscientific experience and big data to become the top minerals-targeting company in the world. CEO Richard Taylor describes this combination as a means of “surgical exploration reducing costs, especially in drilling.”
Today, mining exploration is of critical importance to the establishment of mines and the acquisition of minerals for various products. However, exploration is often a costly and time-consuming business that is highly regulated by the government. The Victoria State Government, located in the Australian capital Melbourne, reported that fewer than 1 percent of all exploration targets become mines. Even worse, typical mineral exploration only involves 20 percent to 40 percent of the available data and is subject to human biases that could potentially negatively affect outcomes.
SensOre applies AI/ML algorithms to what is known as a Data Cube, which is a constantly updating and verified repository of over 60 billion data points, to predict the locations of mineral deposits all while determining the economic viability of deposits and minimizing environmental impact. Furthermore, SensOre uses its technology to explore new targets that share similarities to already established mines. In doing so, SensOre’s Data Cube and Discriminant Predictive Targeting Technology (DPT) were designed to help mineral companies better analyze where and how to explore, therefore allowing mining exploration to be more timely, cost-effective and reduce land disturbance.
SensOre has been working with mining corporations to aid in exploration using its AI and ML-based technologies.
In 2023, Gateway Mining (ASX:GML) executed a farm-in joint venture agreement with SensOre to evaluate and target the lithium exploration potential at Gateway’s flagship Montague Gold project in WA’s Murchison region. SensOre’s DPT technology will generate targets and explore selected tenements within the Montague Gold project for lithium-focused exploration for up to $4.5 million over 4.5 years, earning 80 percent of the lithium rights at the Montague Gold project.
Exploration Ventures AI (EXAI), SensOre’s subsidiary, has an agreement with Venture Minerals (ASX:VMS) to farm into the Golden Grove North project to identify copper (VMS) and lithium potential. EXAI may earn 70 percent in all mineral rights (excluding rare earths) by expending up to $4.5 million in two stages - $1.5 million to earn 51 percent over two years and $3 million for an additional 19 percent.
EXAI also completed a farm-in agreement with Firetail Resources (ASX: FTL) which allows EXAI to earn up to 80 percent of lithium rights on E59/E2252 by spending $3.5 million in two stages. Additional considerations of up to $600,000 will be paid by the company upon the delivery of a maiden mineral resource estimate (MRE) and pre-feasibility study (PFS). Under the terms of the agreement, SensOre will provide Firetail access to its proprietary AI technology across the Yalgoo and Dalgaranga Lithium Projects.
SensOre also collaborated with Stelar Metals (ASX:SLB) for the completion of research under their data sharing agreement, developing innovative lithium targeting tools and deploying the newly completed SensOre NSW data cube. The research revealed new areas of high LCT-pegmatite prospectivity along a NNW-SSE trend. The collaboration also aimed to deploy AI/ML applications on surface geochemistry and high-resolution geophysical techniques in support of lithium exploration.
The company has the potential to optimize mining exploration in a significant way through its proprietary technology and the Data Cube. This is only further compounded by Australia’s established mining industry and abundance of batteries and other precious metals.
Company Highlights
- SensOre is leveraging proprietary technology, big data analytics and extensive technical expertise to optimize every aspect of mining exploration.
- The company is a mineral-targeting firm operating out of Australia, with a particular emphasis on discovering precious and battery metals.
- SensOre has developed a suite of advanced technologies that aim to streamline mineral exploration through predictive targeting, organizing geoscience data and platforms powered by machine learning technology.
- The company’s Data Cube leverages over 60 billion data points across more than 2,400 layers to predict and determine deposit data layer correlations.
- Discriminant Predictive Targeting Technology (DPT) improves the way mining companies integrate, interrogate and analyze geoscience data, providing them with deep insights into where and how they should explore
Key Assets
Proprietary Technology Suite
A large portion of SensOre’s success can be attributed to its proprietary suite of mining technologies, which include predictive targeting, big data analytics, and machine learning platforms.
- DPT Technology: The company’s DPT technology uses the Data Cube to make predictions for the location, size, grade, and depth of a potential deposit.
- Discoveries Database: An evolving database that leverages public mineral deposit and occurrence data to improve the prospectivity mapping process and DPT platform.
- Data Cube: This streamlined repository of cleaned and leveled geoscience data uses public and proprietary geochemical, geophysical, and geological data obtained by the company. The Data Cube includes more than 2,500 data layers and 24 billion data points.
- AGLADS: The Archean Gold Lode Alteration Detection System (AGLADS) machine learning system identifies alterations in enveloping gold lode systems in the Archean of Western Australia.
- IGROCK: A rock-type classification system capable of identifying igneous rock types using multi-element geochemical assay data.
- iDEPOSIT: A deposit-type classification system that uses multielement, geological, and mineralogical data derived from varying deposit types.
- iFERTILE: A geochemistry-based gold fertility prediction system that uses target data contained in a mineralized intersection to predict the amount of gold a potential target may contain.
- iChromite: An assessment tool providing an increased ability to quickly assess large volumes of geochemical data using automated machine learning technologies to separate fertile and barren samples in the exploration workflow.
Moonera
Moonera is one of SensOre’s two projects occurring in the Madura region of Western Australia, at the Nullarbor Plain.
Project Highlight
- Initial Findings: SensOre’s DPT system confirmed that previous interpretations of the area predicted a concealed target.
Auralia Nickel-Copper-PGE Project
The Auralia Nickel-Copper-PGE project is the second of SensOre’s two projects in the Madura region of Western Australia and comprises three exploration licenses granted to its farm-in partner CGM (WA), a subsidiary of Chalice Mining Limited (ASX:CHN). “The application of SensOre's technology to nickel, copper and lithium is generating some exciting possibilities,'' said CEO Richard Taylor.
Project Highlights
- Joint-Venture: The terms of the joint venture allow SensOre to earn 70 percent of the project as long as the company spends $3.5 million over four years, with additional stakes beyond.
- Current Focus: SensOre is currently interested in an 80-kilometer strike length anomaly, approximately 250 to 350 meters below the ground level.
Management Team
Robert Peck AM - Non-executive Chairman
Robert Peck is a founding principal of peckvonhartel architects with 50 years’ experience in the architectural, development and infrastructure sectors, and the building industry nationally and in SouthEast Asia. Peck is the former president of the Australian Association of Consulting Architects, founding director of Japara Healthcare, former chair of iVvy and director of the RVF Group.
Richard Taylor - Executive Director and CEO
Richard Taylor has held senior executive roles in the resource sector for more than 15 years. Prior to SensOre, Taylor was CEO of ASX-listed Terramin Australia Ltd and held senior roles with Mineral Deposits Limited, PanAust, MMG and Oxiana Ltd specializing in business development, strategy and governance. He is a qualified lawyer. He holds an MBA from the University of Cambridge and a Master's degree in Law from ANU.
Robert Rowe - Executive Director and COO
Robbie Rowe has more than 30 years of experience in gold and copper exploration from greenfield to mining environment. He was the former chief geologist and VP of exploration Australia Africa Asia Pacific region with Barrick Gold Corporation. He is an UNCOVER executive and from 2014 to 2019 was an independent consultant to the mining industry, government and academia. Rowe is responsible for the acquisition of new data sources and for managing the execution of field exploration programs for technology validation.
Adrian Manger - Non-executive Director
Adrian Manger is a senior business executive with 30 years of minerals industry experience, including 20 years in executive roles with BHP. Manger has founded and successfully commercialized private Australian, Chilean and Peruvian mineral exploration companies, including investment financing and joint ventures with majors. He was a founding board member of the Australia Colombia Business Council and is the chairman of the recently Canadian Securities Exchange listed Pampa Metals.
HPA Micro Plant Delivers Impressive New 4N Results
- ChemX’s High Purity Alumina (HPA) Micro Plant delivers highest quality result of 39ppm impurities (4N, 99.99% HPA) across 66 elements
- Subsequent batches cementing above 4N (99.99%) purity capability
- High 4N capability enabling synthetic sapphire opportunities
- ChemX refocusing Micro Plant team on Construction and Commissioning of HPA Pilot Plant which is on track for first commissioning in Q1 CY2024
ChemX’s 100%-owned HiPurA® chemical feedstock process has delivered its highest quality result of 39ppm impurities (99.996% purity) across an impressive 66 element spectrum.
Additional results include 66ppm, 61ppm and 99ppm. Full assay results (Appendix A) and Table 1 in compliance with JORC Code 2012 are appended.
These results reflect the continuous improvement to selectively remove key impurities and provide ever improving product quality. Recent investment in high precision analytical equipment will further aid ChemX to develop new methods to improve product purity and minimise reliance on external laboratories. This will dramatically reduce assay turnaround times and will support the commissioning of the full-scale pilot plant in 2024.
The Micro Plant has achieved its purpose. ChemX will now refocus the team on construction and commissioning of the HPA Pilot Plant. The intended purpose for the larger scale Pilot Plant will be to match or improve the HPA purity results achieved by the Micro Plant.
Chief Executive Officer, Peter Lee commented:
“ChemX has now achieved a HPA level of purity that is beyond 4N (99.99%) and have notably recorded a single result that has outperformed our previous best (reduction of impurities) by over 50%, across 66 elements.
These significant results demonstrate the unique capability of the HiPurA® process and the rigour that ChemX has undertaken to scale up from Laboratory to Micro Plant scale. Following construction, commissioning and optimisation of the HPA Pilot Plant, the stage will be firmly set for HPA customer qualification.”
Analytical methods Notes:
1) Analysis conducted by LabWest Minerals Analysis Pty Ltd. (NATA accredited Laboratory)
2) Analysis Method – Microwave Digest, HF/Multiacid, 66 Elements including REE’s by ICP-MS/OES.
3) Complete analysis provided in Appendix A
Figure 1 – Optimisation of a small module of the HiPurA® Micro Plant
About the HiPurA® 100% owned process
CMX’s HiPurA® process is a disruptive flowsheet which converts aluminous chemical feedstocks through selective refining to HPA. Ultimately, CMX aims to achieve the delivery of 4N high grade and potentially 5N (99.999%) HPA products for the electric vehicle battery separator and synthetic sapphire markets, LEDs, semi-conductor and optical lenses.
The HiPurA® process is modular, scalable and independent of direct mine production, which enables ChemX to locate key future production facilities around the world close to customers in a just-in-time customised approach.
Click here for the full ASX Release
This article includes content from ChemX Materials, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
ChemX Materials Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects