nothing

1. KAOLIN
NOT JUST FOR
INDIGESTION….
Sue Border

2. COMMERCIAL KAOLIN
• White (white firing) non-swelling clay
- Also called “China Clay”
• Dominantly kaolinite
World Production 30mtpa (US$3b)
Export markets 9mtpa

3. USES OF KAOLIN
v Papermaking Pigment/Filler/Coating
v Pigment in paint/inks High
v Plastics/Rubber Value
v Ceramics
o Mineral Filler Low Value Products
o Source of Al2O3
o Refractories

4. Commercial Economics
PREMIUM GRADE CRITERIA
A high priced Kaolin has :
v Superior Brightness
v Superior Whiteness
v Desired particle size
v High opacity (good hiding power)
v Chemical purity
v Low viscosity (for paper markets)
v Other properties - abrasivity, conductivity, etc

5. Pigment markets -
Brightness Competitors
Pigment Price per tonne (A$)
v TiO2 $3500 - $6000
v CaCO3 $350 - $500
v Kaolin $200 - $1200
Kaolin gives good performance for the price

6. Markets - Paper Demand
v Paper demand increases with GDP
v Asian paper production to overtake
USA by 2010*
Asia imports Kaolin from:
Georgia Brazil UK
* Source: Pulp and Paper Magazine

7. TASMANIA
NEW ZEALAND
USA
EUROPE
AND
MIDDLE
EAST
INDONESIA
THAILAND
MALAYSIA
AUSTRALIA
JAPAN
KOREA
TAIWAN
PROJECT
LOCATION
CANADA
West Coast
CHINA

8. KAOLIN FORMATION
v Economic deposits mainly weathering
related
v Associated with laterite and bauxite
v Formed in wet/dry tropical climate
v Over 1500m rain pa
v Leaching process

9. LATERITIC WEATHERING
BAUXITE
IRONSTONE
MOTTLED
PALLID
BEDROCK
Leaching
of
cations
--- Highest water
--- Lowest water

10. MORE EFFECTIVE LEACHING
v More water flow
(fresh water & permeability)
v More time
v More bugs
v Acid groundwater (oxidising organics)
§Parent is only important if time is short or
leaching is slow.

11. REMOVAL OF IRON
v Ferrous leached more easily than ferric.
v Least iron just below lowest water table
v But leaching is slow below the water table
v Organic grey kaolins formed here.

12. DIAGENESIS OF KAOLIN
Feldspars & clays kaolinite
Kaolinite increases in grain size
The perfect kaolin recipe -
Formed below water table then raised
above it

13. SEDIMENTARY KAOLINS?
v Cannot separate kaolinite from other clays
by sedimentation.
v All commercial kaolins are formed in situ
(Pickering & Hurst 1997)
v Ball clays? (70% disordered kaolin).

14. SKARDON RIVER KAOLIN -
discovery….
Andrew White in 1985
• 19 holes
• 2 in lease
• Target of “Bulimba” kaolin found;
• Older weathering kaolin noted.
• Samples to CSIRO

15. SKARDON RIVER KAOLIN -
exploration history pre SRK
v 1986 - Drilled 93 holes - geology only
v 1987 - 1990 Bulk sampling & testwork
v 1993 - 188 RC holes - geology & ‘clay’
v 1994 - 10 DD holes
v 1994 - 97 - Testing selected drill samples
v 1997 - 207 RC holes - poor control

16. MISTAKES…..
o No initial raw values
o Did not relate metallurgy to geology
o Poor technical knowledge at board level
o Moving goal posts
o Rolls Royce plant
o Major cost over-runs
o No coordination of consultants/contractors

18. GEOLOGICAL HISTORY…..
Cretaceous - Marine Shale

19. Uplift and Weathering...
Rolling Downs Formation
Claystone

20. Tertiary Sheet Fluvials
Bulimba Formation

21. Weathering to bauxite

22. Fluvial Channel Develops
Namaleta Creek Floodplain

23. Further Weathering…...
Fluvial
K3
Claystone

24. Claystone Mining

25. Conchoidal claystone

26. Fluvial in exploration pit

27. ML and Drilling
Wet Plant
DRILLHOLES AND
OUTLINE OF FLUVIAL
CHANNEL
Green – RC holes
Black – AKL grade control holes

28. RESOURCES
Purple – inferred claystone
Grey – measured claystone
Blue – inferred fluvial

29. Resource Summary
In 000s t Measured Indicated Inferred
Claystone 640 920 5,200
Meas + Ind claystone 1560
Fluvial 728 4,270
Total 100 years at 75,000tpa.

30. Skardon Kaolin Properties
Claystone K3 Fluvial
Grit content
(+ 45 m)
3% 56% 55%
-45 m psd 70% -1m 75% -1m 80% -1m
Brightness,
-5 m (ISO %)
65 60 70
Hydrous prod’t
(ISO%)
70 70 +80 +85
Calcined bright
-ness (ISO %)
90 – 91.5 83 91

31. • Hydrous Kaolins
Plant capacity 75,000 tpa
• Wide range of industrial
applications
• Represents the bulk of
world supply
• Target of paint &
rubber markets
Skardon Product Range
• Calcined Kaolins
Plant capacity 75,000 tpa
• Higher performance
• Better brightness,
opacity
• Competes with TiO2
• Premium price
• Limited number of
producers
• Paint, rubber, paper

32. Stage 1 Processing: Wet Plant
Kaolin Ore
Blunger
Degritting Centrifuge
Decanter Centrifuge
Disc-nozzle Centrifuge
High Gradient Magnet Separator
Membrane Filter
Pipeline to Dry Plant
Sand
Tailings Dam
Delaminating Mill,
Leaching circuit

33. Stage 2 Processing: Dry Plant
Pipeline from Wet Plant
Spray Dryer
Pulveriser
Calcining Kiln
Pulveriser
CALCINED
KAOLIN
HYDROUS
KAOLIN

34. MAJOR WORLD DEPOSITS
Georgia, USA
Amazon, Brazil
Cornwall, UK ……….the odd one out
Hercynian granite 280mA
Debate weathering vs hydrothermal
Coarse grained well crystallised kaolin
Very limited available resources
Product yield 15-20%

35. Georgia - Geology
Cretaceous and Tertiary bedded kaolins
Exposed just south of Fall Line
Cap bentonite
Cretaceous 60% -2micron
Tertiary 85% -2micron

37. Georgia - Economics
ADVANTAGES
v Two types of kaolin
v Expertise
v Reputation
v Transport for E USA &
Europe
DISADVANTAGES
v Older updated plants
v Mine locations
v High stripping ratios
v Transport to Asia

38. Amazon Geology
Under bauxite exposed on slopes.
Rio Jari – Pliocene, very fine grained 75%
-2 micron. 36m thick deposit.
Rio Capim – also Tertiary. Coarser than
Jari. Thinner and some grit.

39. Amazon Economics
ADVANTAGES
 Fine Kaolin
 Modern plant
DISADVANTAGES
v Pipeline distance
v Transport to Asia

40. Summary of the Skardon
River Kaolin Project
 Long mine life
 Growing international demand
 Premium products
 Exceedingly low CAPEX entry price
 Best logistics for Asia
 Marketing and distribution agreements
 Technical Management Expertise

41. That’s it folks!