The Andromeda Metals Ltd (ASX: ADN) share price is up 1.38% in afternoon trade on Monday to 14.7 cents.
This follows the company releasing a key update on its Great White kaolin deposit in South Australia.
Here’s what we know.
What did Andromeda announce?
Andromeda advised that a bulk sample collection program has commenced at its Great White deposit.
The deposit contains kaolin, a rock from which the clay-type mineral kaolinite is derived. Kaolinite has been used for centuries as the main ingredient in porcelain.
Large samples will be extracted from the “high-purity” area to “provide material for the natural nanotech’s prototype carbon and conversion pilot plant”.
The company’s update also notes that Andromeda’s Streaky Bay kaolin refining plant has been upgraded and “arranged to replicated the proposed Great White wet processing plant”.
A large amount of Andromeda’s “ultrabright, high purity Great White PRM (kaolin) product of over 90% ISO brightness” has already been produced at Streaky Bay, the company says.
Aside from this, two other revenue streams will be added to progress commercialisation of Andromeda’s product.
Firstly, high-grade halloysite-kaolin will be produced and used for the approval testing market for cosmetics labels.
“Tonne amounts” of the company’s Halloysite Rheology Modifier (HRM) concrete additive will also be extracted to build sales. HRM technology improves the handling and behaviour of concrete.
Andromeda has already sent a large amount of regional calcrete for testing to see how it performs in upgrading local roads and mining preparations.
It seems investors are welcoming the news, pushing the Andromeda share price higher on the day.
Andromeda Metals share price snapshot
The Andromeda share price has been swimming in a sea of red these past 12 months, posting a loss of 8%.
Indeed, the company’s shares are 48% in the red this year to date and have slipped a further 10% in the last month alone.
At the time of writing, Andromeda Metals has a market capitalisation of $357 million.