Impact Minerals Limited (ASX: IPT) (the ‘Company’ or ‘Impact Minerals’) has hit two significant milestones in its journey to become a major player in the high-purity alumina (HPA) market, announcing both a substantial Maiden Measured Resource Estimate and securing critical R&D funding for its Lake Hope Project in Western Australia. Located approximately 500 kilometres east of Perth, the Lake Hope Project has delivered an impressive Maiden Measured Resource of 730,000 tonnes of lake clay at 25.8% alumina, containing 189,000 tonnes of alumina (Al2O3).
Fig.1 Lake Hope Alumina Mineral Resources.
This resource estimate provides a solid foundation for at least 15 years of production, significantly de-risking the project and enhancing its economic prospects. Adding to this achievement, Impact Minerals has successfully secured a $512,000 R&D tax rebate through the Australian Government’s Research and Development Tax Incentive scheme. This follows the company’s recent $2.87 million grant under the Federal Government’s CRC-P programme.
Dr Mike Jones, Impact Mineral’s Managing Director, commented on the developments:
“The unique mineralogy and patented and proprietary processing techniques for the Lake Hope High Purity Alumina project have allowed us to claim back a significant proportion of our expenditures on it through the R and D Tax Incentive programme, which will be the case moving forward. The funds will be put towards the Lake Hope Pre-Feasibility Study and the start of our exciting research project with CPC Engineering and Edith Cowan University to build a pilot plant to produce HPA from the clays at Lake Hope. The result will likely be one of the most cost-effective feasibility studies in the industry.”
This funding will be strategically deployed to advance the Pre-Feasibility Study, targeted for completion in Q1 2025, and to fast-track the development of a pilot plant through collaboration with CPC Engineering and Edith Cowan University. This strategic approach underscores our commitment to efficient and effective project development.
Impact Minerals: Positioning for a High-Demand Market
The Lake Hope Project aligns with the global surge in demand for high-purity alumina (4N HPA, 99.99% Al₂O₃), driven by its essential applications in LEDs, lithium-ion batteries, and semiconductors. With benchmark HPA prices exceeding US$20,000 per tonne, the project offers promising economics. A scoping study highlighted an after-tax net present value (NPV) of AUD 1.3 billion, reinforcing Lake Hope’s potential as one of the lowest-cost HPA producers globally.
Sustainability at the Core
Impact Minerals has prioritised environmental stewardship in its project design. Mining operations will involve bulk surface mining without on-site beneficiation, reducing ecological disturbances. Processing at Kwinana will integrate innovative techniques, including Membrane Selective Technology (MST), to enhance sustainability. The MST enables reagent regeneration and contamination removal, targeting a “zero-liquid discharge” system to minimise waste. Additionally, the project is designed to have low Scope 1 and Scope 2 carbon emissions, reflecting a commitment to responsible resource development. Boost from Federal Support The project’s progress was significantly boosted with early access to funds from the Australian Federal Government’s Cooperative Research Centres Projects (CRC-P) program. The $2.87 million grant will be used to construct a pilot plant, a critical step toward producing consistent HPA samples for market qualification. Funds are set to be received by the end of November 2024, accelerating the project timeline and bolstering Impact Minerals’ research and development capabilities.
Optimising Resource Potential
The shallow and flat-lying nature of the Lake Hope deposit simplifies mining, while the high-grade alumina zones offer opportunities for early economic returns. The resource estimate was conducted under the JORC 2012 Code, ensuring transparency and reliability. Furthermore, approximately 60% of the Measured Resource lies within West Lake, where a mining lease application has been lodged, further demonstrating the project’s readiness for development.
Figure 2: Alumina grade distribution within the Lake Hope resource area.
Strategic Partnerships Driving Innovation
Impact Minerals’ collaboration with CPC Engineering and Edith Cowan University’s Mineral Recovery Research Centre (MRRC) underscores its innovative approach. The MRRC’s expertise in Membrane Selective Technology is set to enhance cost-efficiency and environmental outcomes, while CPC Engineering brings decades of experience in HPA pilot plant design and management. These partnerships are instrumental in ensuring Lake Hope achieves its full potential.
Managing Director of Impact Minerals Limited, Dr. Mike Jones
Figure 3: Dr Mike Jones, Impact Minerals’ Managing Director
Dr. Jones completed his undergraduate and postgraduate studies in Mining and Exploration Geology at Imperial College London. His PhD on gold mineralisation led him to move to Western Australia in 1988 to work for Western Mining Corporation, exploring gold and nickel deposits in the Yilgarn. Dr. Jones has worked on over 80 projects in greenfield and near-mine exploration in various mineralised terrains. He was the founding director of Lithofire Consulting Geologists in Perth, Australia. Dr. Jones is using his expertise to align Impact Minerals with the global demand for metals. He is strategically advancing the emerging Cost-disruptive HPA, Lake Hope Project.
Investor’s Outlook:
With the Pre-Feasibility Study (PFS) nearing completion, Impact Minerals is on track to achieve production targets of 10,000 tonnes of HPA per year. The ongoing metallurgical advancements and early pilot plant construction signal a bright future for the company. The Lake Hope Project positions Impact Minerals as a leader in the rapidly growing HPA market and highlights its role in supporting sustainable, high-tech industries worldwide.
As the global demand for high-purity alumina accelerates, the Company is poised to deliver significant value to shareholders and stakeholders. With a focus on responsible mining, high mineral resources, government backing and cutting-edge technology, Impact Minerals is set to play a pivotal role in shaping the future of the HPA market. As of November 20, 2024, Impact Minerals shares traded at $0.012, reflecting a market capitalisation of $36.71 million. The company’s stock has traded within a 52-week range of $0.009 to $0.026.
For more details, visit the Company’s official website.
