Jan. 4, 2011 - Minotaur Exploration aims to start mining kaolin on the Eyre Peninsula within two years.
The Adelaide exploration company said it had relocated a bulk sampling plant from Queensland to the western Eyre Peninsula to accelerate testing of the kaolin in the region.
The company has also started a feasibility study on mining kaolin from its Poochera deposit, which should be completed by early next year.
Should the Minotaur board sign off on the project at that time, the company would start production by the end of 2012.
Minotaur managing director Andrew Woskett said independent chemical analysis had been carried out on the product produced by the company's pilot plant at Streaky Bay.
"Results continue to compare more than favourably with premium commercial kaolin grades," he said.
"They also confirmed the exceptionally low levels of heavy metal contaminants that were previously reported, which potentially puts this material in a league of its own, results Minotaur believes are superb.
"Our studies to date suggest a starting throughput of around 50,000 tonnes per annum building to more than 100,000 tonnes per annum using two wet processing modules.
"On the known resource at Poochera, that delivers a mine life of more than 50 years."
Kaolin is an industrial used in many applications, for example as a filler, extender, raw material and pigment in paper, paint, polymers, food, medicine and ceramics.