A LT E R N AT I V E RO U T E T O H PA

P R O D U C TI O N

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Australian Securities Exchange Announcement19 November 2020

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Highlights

  • The Speewah Prefeasibility Study (PFS) testwork and studies have now identified a more direct route to complete a process design that outlines a lower risk and faster path towards High Purity Alumina (HPA) production.
  • The new KRR leaching and refining route can be used directly on a readily available industrial Aluminium chemical feedstock
  • Laboratory test results have already confirmed the production of a high purity precursor compound suitable for calcining into HPA.
  • This alternative production circuit is a simpler process than our original process flow sheets and not require the development of associated mining, processing and logistical infrastructure up at Speewah.
  • The simpler flowsheet also offers possible advantages and economic benefits in capex and opex savings and fewer process and development risks.
  • Some additional metallurgical testwork and engineering will be required to finalise the PFS, which is now expected in Q1 2021.
  • A recent HPA market report by CRU International supports strong future demand and pricing of HPA.
  • The Speewah mine development testwork and studies will continue, but focus will shift towards a broader range of battery metals and master alloy compounds.

HPA Production

King River Resources Limited (ASX: KRR) is pleased to provide this High Purity Alumina (HPA) Prefeasibility Study (PFS) update. A decision has been made to deliver the PFS using our HPA process using aluminium chemical feedstocks derived from other industrial processes. This HPA operation would be based at an industrial estate rather than at Speewah in the Kimberley of Western Australia. The change in direction has been identified as a consequence of HPA testwork underway as part of the PFS on the Speewah Project. KRR believes this will assist in completing the PFS, fast track the production of HPA, and improve the business case.

Recently, KRR announced the successful production of a high purity precursor compound from the industrial feedstock (KRR ASX release 11 November 2020). Testwork is underway to further reduce the impurity levels in the precursor compound and improve the HPA purity.

The alternative production circuit is a simpler process than the original process flow sheet involving fewer purification steps, and it does not require the development of a mining operation, beneficiation plant, acid plant, leach tanks, filtration, neutralisation or tailings facilities, or associated infrastructure for a remote mining operation (haul road, accommodation camp, airstrip, borefield), and would involve less transport of reagents and products.

Earlier this week Como Engineers delivered the preliminary CAPEX and OPEX costings for the Speewah processing plant and associated infrastructure, which are in line with expectations. This engineering study has highlighted the potential benefits of utilising the simpler process flowsheet based on an industrial chemical feedstock, namely:

  • fewer process circuits and less plant and equipment;
  • CAPEX savings;
  • lower OPEX;
  • fewer process and logistical components to implement that may de-risk and fast track through Definitive Feasibility Studies (DFS), permitting, financing, construction and HPA production.

The KRR HPA refining process and the industrial Aluminium chemical feedstock and reagents used in the process are commercial-in-confidence.

Prefeasibility Study

KRR's decision to modify the PFS to deliver HPA from an alternative chemical feedstock will require additional engineering, testwork and permitting studies now underway.

Allowing for the additional engineering and testwork requirement, the modified PFS is now expected to be delivered in Q1 2021.

Speewah HPA-V-Ti Project

The new HPA development plan does not preclude the future integration of the KRR's HPA process with a flowsheet to produce vanadium and titanium products. The strong forecast demand for grid battery storage and lithium ion batteries especially in electric vehicles makes for a compelling business case to produce high purity products used in these green technologies.

This announcement was authorised by the Chairman of the Company.

Anthony Barton

Chairman

King River Resources Limited

Email: info@kingriverresources.com.au

Phone: +61 8 92218055

Statement by Competent Person

The information in this report is based on information compiled by Ken Rogers (BSc Hons) and fairly represents this information. Mr. Rogers is the Chief Geologist and an employee of King River Resources Ltd, and a Member of both the Australian Institute of Geoscientists (AIG) and The Institute of Materials Minerals and Mining (IMMM), and a Chartered Engineer of the IMMM. Mr. Rogers has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Rogers consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Appendix 1: King River Resources Limited HPA Project JORC 2012 Table 1

SECTION 1 : SAMPLING TECHNIQUES AND DATA

Criteria

JORC Code explanation

Commentary

Sampling

Nature and quality of sampling (e.g. cut channels, random chips, or

This ASX Release dated 19 November 2020 provides an update on KRR HPA Project.

Techniques

specific specialised industry standard measurement tools appropriate to

KRR plans to use samples in its hydrometallurgical testwork to produce high purity alumina

the minerals under investigation, such as down hole gamma sondes, or

(HPA) sourced from alternative Aluminium feedstocks from other industrial chemical processes.

handheld XRF instruments, etc.). These examples should not be taken

as limiting the broad meaning of sampling.

Chemical precipitation methods will be used in the separation and precipitation of a high purity

Include reference to measures taken to ensure sample representivity

Aluminium precursor compound prior to calcination to high purity alumina product.

The process, and feedstock and reagents used are commercial-in-confidence..

and the appropriate calibration of any measurement tools or systems

used.

Aspects of the determination of mineralisation that are Material to the

Public Report.

In cases where 'industry standard' work has been done this would be

relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m

samples from which 3 kg was pulverised to produce a 30 g charge for

fire assay'). In other cases more explanation may be required, such as

where there is coarse gold that has inherent sampling problems.

Unusual commodities or mineralisation types (e.g. submarine nodules)

may warrant disclosure of detailed information.

Drilling

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air

Not Applicable. The samples will be generated from a feedstock of industrial chemicals.

techniques

blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple

or standard tube, depth of diamond tails, face-sampling bit or other

type, whether core is oriented and if so, by what method, etc.).

Drill sample

Method of recording and assessing core and chip sample recoveries

Not Applicable.

recovery

and results assessed.

Measures taken to maximise sample recovery and ensure

Not Applicable.

representative nature of the samples.

Whether a relationship exists between sample recovery and grade and

Not Applicable.

whether sample bias may have occurred due to preferential loss/gain of

fine/coarse material.

Logging

Whether core and chip samples have been geologically and

Not Applicable.

geotechnically logged to a level of detail to support appropriate Mineral

Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or

Not Applicable.

costean, channel, etc.) photography.

The total length and percentage of the relevant intersections logged.

Not Applicable.

If core, whether cut or sawn and whether quarter, half or all core taken.

Not Applicable.

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King River Resources Ltd. published this content on 18 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2020 23:12:00 UTC