InterGroup Mining Limited, the Australian company focused on exploring and extracting minerals essential for delivering net zero emissions, is pleased to announce the significant strengthening of its balance sheet following the successful completion of its recent rights issue. The Company is also pleased to provide an update on the development programme for its flagship Brilliant Brumby Project in NE Queensland, Australia.
Commenting on the rights issue, Neil Miller, Chairman of InterGroup, said:
“The participation of long-standing shareholders is an excellent vote of confidence in the Company’s strategy. The reduction of debt on our balance sheet means we are now well positioned in relation to our targeted ASX listing – our advisors continuing to work towards a Q4 admission.”
Net Zero Focus
InterGroup is developing a major multi-generational high-quality kaolin and gold project in NE Queensland (“The Brumby Project”). The Company’s strategy for the property is based on generating first revenues through kaolin and metakaolin production from the estimated 0.5-1 billion tonnes of weathered kaolinite, grading approximately 40% kaolin, that sits at surface to 30m. In certain areas the kaolinite sits above and adjacent to the gold bearing quartz veins that run across the property.
The compound annual growth rate for kaolin from existing end-markets is estimated at 4.5% (2022- 29)*. InterGroup, however, believes new net-zero related markets, particularly for metakaolin, can deliver significantly greater upside over the long-term.
Firstly, metakaolin is gaining increasing attention globally for the significant role it can potentially play in decarbonising the cement and concrete industry. That sector is the world’s second largest industrial carbon dioxide emitter. In July, InterGroup was invited to join an international conference in Lausanne, Switzerland on this topic. The conference was sponsored by cement industry majors, a number of whom the Company is currently in discussion with.
In addition, within Australia metakaolin is gaining traction as an alternative lower cost feedstock for the production of High Purity Alumina (HPA) production. Earlier this year HPA was added to Australia’s critical mineral list as part of the country’s move to strengthen its position within the international EV battery market. HPA is critical within EV batteries, it being used to form the protective coating on the separator that sits between the cathode and anode thereby ensuring the battery does not overheat and lasts longer. HPA also used within LED screens and lights.
In Q2 2022, InterGroup entered into an offtake agreement with Traxys covering the marketing and distribution of kaolin and metakaolin product from the Brumby Project.
Development Programme
Brumby is located in NE Queensland, approximately 250 km inland from the deep-sea port facilities at Townsville and with which it is well-connected via existing road/rail infrastructure. In addition to the production and sale of kaolin, the Company’s development strategy includes the production of high and mid-quality metakaolin, in particular:
a pure metakaolin, positioned relative to silica fume, for use as a Supplementary Cementitious Material (SCM) in concrete manufacturing. As an SCM, this metakaolin can both improve the performance of concrete and reduce associated CO2 emissions; and
a bulk lower grade metakaolin for use in green cement production, including LC3 formulations, as that market develops.
The Company is currently progressing its plans to locate its demonstration metakaolin production facility close to the Townsville port. InterGroup intends to take advantage of the regional weather to incorporate high efficiency solar photovoltaic (“PV”) power generation to further improve the low carbon credentials and reduce the production cost of its metakaolin products.
As part of the metakaolin production plan, the in-situ kaolinite, which comprises approximately 40% kaolin and 40% silica, will go through a dry screening process to the remove the coarse silica fraction. Initial analysis of this silica co-product suggests it will be suitable for both construction and process applications.
InterGroup is also pleased to report that work is being progressed to:
- further sample and analyse the kaolinite in the Clydesdale area of Brumby;
- evaluate a possible bleed-out extension to the Clydesdale-White Creek Lineament corridor on the north-side of the Lolworth Range;
- facilitate the conversion of the existing resource statement into a reserve statement; and
- produce a concept-level mining report for the Clydesdale mineralisation for subsequent translation into the feasibility study for the Brumby Project.
Listing preparation
The Company’s advisors continue to work towards a targeted Q4 listing timeline. A further update will be provided in due course.
* source: Fortune Business Insights Report
About InterGroup
Intergroup Mining Limited is an Australian company focused on exploring and extracting minerals essential to delivering a net zero emissions world. Its current focus is on developing a major high- quality kaolin and gold project located in NE Queensland, Australia, approximately 250 kilometres from the major seaport of Townsville, west of Charters Towers, and immediately north of the gold bearing district of Pentland.
