ASX-listed Okapi Resources has kicked off exploration work at its Holly kaolin project in southern WA as part of technical due diligence relating to the recently announced planned acquisition of the project’s owner. The Perth-based company collected about 15 kaolin samples from Holly this week for assaying at a laboratory in Perth.
Holly consists of two exploration licences about 20km east of Kojonup on the eastern side of the Broomehill-Kojonup Road that cover a total area of about 184 square kilometres.
Okapi says the samples will be tested for halloysite occurrences and further confirmation of the quality of kaolin.
The company expects the results to be available next month.
Okapi Resources Executive Director, David Nour said: “This early exploration work will give an overview of the quality of the kaolin and halloysite existence. The test results will also enable the company to plan a more systematic and comprehensive exploration program in advance prior to completing the acquisition.”
Holly lies south-west of Latin Resources’ Noombenberry halloysite-kaolin discovery in southern WA.
Okapi has entered into a binding agreement to acquire 100 per cent of Holly owner, Bulk Mineral Holdings for a total consideration of $1.49 million worth of Okapi shares, subject to shareholder approval.
Should the transaction proceed, Bulk Mineral Holdings’ vendors and Okapi will then establish a joint venture vehicle to house Holly, with Okapi to hold an 80 per cent interest in the JV.
Recent site visits to Holly have also confirmed underlying granitic stratigraphy and widespread weathered and outcropping kaolinitic clays.
Okapi says the project boasts high visual white brightness kaolin.
A large-scale aircore drilling program was carried out across the project area in January 1995 by CRA Exploration.
Results from the wide-spaced reconnaissance drilling included many high brightness kaolin intercepts, with crude brightness values greater than 85 per cent.
According to the historical drilling data, the average depth to the top of the mineralisation appears to be about 5m.
Further prior drilling 25 years ago also identified an 11m thick blanket of kaolinitic clay.
The previous drilling campaigns in 1995 and 1996 intersected 5m-15m zones of bright white kaolin.
Okapi’s move into the kaolin and halloysite space appears impeccably timed.
A tightening kaolin and halloysite market has culminated in significant price rises for both kaolin and halloysite in recent years, with commercial-grade kaolin currently selling for more than US$600 per tonne.
High-grade halloysite has climbed above US$4,000 per tonne in recent months.
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