Impact advances Lake Hope HPA project, reports A$2.08m cash balance in June quarter

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Impact Minerals has advanced its Lake Hope High Purity Alumina (HPA) Project in Western Australia during the June quarter, completing key processing studies, progressing engineering work and commencing a pilot plant programme. 

The company reported further progress in producing high-purity alumina for semiconductor, battery and advanced technology applications, while expanding customer engagement and technical testing.

The project is designed to produce 10,000 tonnes per year of HPA with a Pre-Feasibility Study estimating an NPV10 of AUD 1.2 billion (USD 844 million).

Lake Hope project advances toward DFS

Engineering work during the quarter focused on refining the project's processing flowsheet. CPC Engineering shortlisted technology options for the alumina calciner and identified two industrial-scale acid regeneration solutions that will undergo further testing before selection for the DFS. 

High-purity alumina is listed as a critical mineral in Australia and is increasingly used in semiconductor manufacturing, lithium-ion batteries, advanced ceramics and electronics, with global demand forecast to grow by 10-20 per cent annually.

At Lake Hope, the company progressed ore variability sampling, planning for a 1,000-tonne test pit and geotechnical investigations. Discussions with the Ngadju Native Title Aboriginal Corporation continued regarding project development and future economic opportunities. HPA samples were submitted for specialist testing in Germany and the United States to confirm the exceptionally low uranium and thorium levels required for semiconductor-grade material.

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Alluminous advances HPA commercialisation

Progress continued through Impact's 50 per cent-owned associate, Alluminous Pty Ltd, where a pilot plant is being commissioned to produce HPA from chemical feedstock while assessing the potential use of Lake Hope ore.

Independent testing with battery technology company C4V confirmed that the engineered HPA met the particle characteristics required for lithium-ion battery separator coatings. The company has likewise received sample requests from customers in Europe and the Middle East for use in artificial sapphire production, expanding the potential commercial applications of its HPA products.

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Financial position and funding

Impact Minerals spent AUD 742,000 (USD 521,000) on exploration and evaluation during the June quarter, while administration and corporate costs totalled AUD 421,000 (USD 296,000). Staff costs amounted to AUD 119,000 (USD 84,000), partly offset by AUD 48,000 (USD 34,000) in interest income.

Cash used in operating activities reached AUD 492,000 (USD 346,000) during the quarter, while investing activities consumed AUD 1.02 million (USD 718,000). In addition to exploration spending, the company invested AUD 275,000 (USD 193,000) in investments and AUD 1,000 (USD 700) in property, plant and equipment.

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To support ongoing activities, Impact raised AUD 1.86 million (USD 1.31 million) through an equity issue during the quarter, with transaction costs of AUD 33,000 (USD 23,000). As a result, cash and cash equivalents increased to AUD 2.08 million (USD 1.5 million) at the end of June from AUD 1.76 million (USD 1.24 million) at the beginning of the quarter.

Impact said it expects to continue operations while progressing the Lake Hope project and will seek additional funding as required to support future development.