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Andromeda Metals' kaolin resource at Carey's Well deposit swells 28%

Andromeda Metals Ltd.'s JORC 2012-compliant mineral resource estimate for its the Carey's Well kaolin deposit, part of its Poochera halloysite‐kaolin project in South Australia, grew 28% to 26.0 million tonnes.

The in situ bright white kaolinized granite will yield 10.6 Mt of minus 45 micron quality kaolin product, according to the Dec. 23 release.

The improvements in the size and quality of the mineral resource will be integrated in the ongoing pre-feasibility study for the project, expected to complete in the June quarter of 2020.

The Carey's Well resource, along with several others, is included under a joint venture agreement with Minotaur Exploration Ltd.

The amount measured portion of the resource increased by 80% due to the 2019 infill drilling conducted in April and May.

The Carey's Well deposit remains open to the north and northeast.

A scoping study for a proposed open‐cut mine and dry‐processing plant at the Carey's Well deposit outlined a net present value, discounted at 8%, of A$413 million, with a 174% internal rate of return, and a 15-month payback period.