Suvo Strategic Minerals : Further High Grade Halloysite at Trawalla-Grades up to 32.4%

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15 December 2021

ASX ANNOUNCEMENT

Further High Grade Halloysite at Trawalla,

Grades Up to 32.4%

• Test work on Trawalla refined clay continues to show very high levels of Kaolin and Halloysite with significant concentrations of halloysite recorded up to 32.4%
• Halloysite continues to be prevalent, with previous

results showing concentrations up to 38.9% and 45.4%

(ASX announcement 9 & 28 September 2021)

• Trawalla's halloysite-kaolin hybrid offers Suvo the opportunity to be the first halloysite-kaolin producer in Australia producing high-quality end user products addressing existing ceramic, pharmaceutical and cosmetic markets and importantly the rapidly evolving battery through HPA and nano technology markets
• Test work and product commercialisation is being planned with independent world-class testing laboratories
• The maiden Mineral Resource estimate reported in accordance with JORC resulted in a 20% increase of kaolin product to approximately 3.5Mt compared with the previous historical estimate which will support a long life
  production project (ASX announcement 22 September 2021)
• Trawalla is 100% owned by Suvo Minerals Australia and located only 23km from Suvo's operating Pittong hydrous kaolin processing facility, the only hydrous kaolin plant in Australia

SUVO STRATEGIC MINERALS LIMITED

ABN: 97 140 316 463

CORPORATE DETAILS:

ASX: SUV

DIRECTORS:

Robert Martin

Executive Chairman

Aaron Banks

Executive Director

Dr Ian Wilson

Non-Executive Director

CONTACT DETAILS:

Level 11

40 The Esplanade, Perth, Western Australia 6000

• [phone] E [e-mail] W www.suvo.com.au

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15 December 2021

ASX AN N OUN CEM EN T

Australian kaolin producer and silica sand exploration company, Suvo Strategic Minerals Limited ('Suvo or the Company'), is pleased to announce that further refined clay samples from Trawalla contained up to 32.4% halloysite. Samples were submitted to James Hutton for bulk mineralogy by X-ray powder diffraction as part of the resource estimation at Trawalla. Work is ongoing on other samples.

Commenting on the results, Suvo's Executive Chairman, Robert Martin said "This is another outstanding result from the drill samples from our Trawalla deposit. We are currently working with our international partners and experts to identify new market segments for Trawalla including opportunities in a number of high value industries including concrete, ceramics and battery and nano technology. Being the only operating hydrous kaolin mine in Australia will put us front and centre of these ever expanding markets."

Picture 1: Kaolinite plates and polygonal halloysite tubes to 5.5 microns in length from Trawalla deposit

Picture 2: Kaolinite plates and polygonal halloysite tubes to 5.5 microns in length from Trawalla deposit

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Test Work

Samples of refined clay from Trawalla, as a continuation of works following on from the JORC conversion process, were sent to James Hutton for bulk mineralogy analysis by x-ray powder diffraction (XRPD). The samples were wet ground for 12 minutes in a McCrone mill and spray dried to produce random powder specimens.

A summary of the results is provided below:

Table 1 : New and existing XRD results

			ISO Brightness	Yield			XRD Result %
Collar	From	To	ISO-a	ISO-b	%	Quartz	K-Feldspar		Kaolinite	Halloysite	Others	Total
T21006	1	3	69.7	74	27.1				Not analysed
T21006	3	5	74.9	81.7	39.5	1.7	0.4	82.9*	13.3	1.7	100
T21006	5	7	75	83.3	33.1	1.4	0.3	85.4*	11.9	1	100
T21006	7	9	81.2	86.2	34.7	1	0.1		84.4*	14	0.5	100
T21006	9	11	86.2	88.6	22.4	0.7	1.9		76.3*	21.1	0	100
T21006	11	13	86.6	89.2	22.1	0.6	2.6		74.2*	22.6	0	100
T21006	13	16	69.6	72.6	19.9	1.7	0.4		79.3*	15.8	2.8	100
T21006	16	18	74.2	78	19.3	0.9	4.1		67.6*	26.1	1.3	100
			ISO Brightness	Yield			XRD Result %
Collar	From	To	ISO-a	ISO-b	%	Quartz	K-Feldspar		Kaolinite	Halloysite	Others	Total
T21005	4	5	59.8	64.3	40.8	2.6	1.2	76.8*	16.1	3.3	100
T21005	5	7	64.8	68.4	32.9	1.5	0.5	79.3*	16.5	2.2	100
T21005	7	9	67.4	73.4	27.6	0.7	0		81.9*	17.4	0	100
T21005	9	11	71.3	80.5	29.8	0.9	0.2		84.5*	13.7	0.7	100
T21005	11	13	72.9	85.7	33.8	0.6	0		83.4*	16	0	100
T21005	13	15	79.9	88.7	36.9	0.8	nd		86.6*	12.2	0.4	100
T21005	15	17	78.7	86.4	22.1	0.5	0		74.8*	24.7	0	100
T21005	17	19	86.7	91.3	22.5	0.8	0.2		65.5*	33.2	0.3	100
T21005	19	21	84.5	90	18.4	0.7	2.5		51.4*	45.4	0	100
T21005	21	23	79.4	85	22.8	1	4.6	54.8*	38.9	0.7	100
			ISO Brightness	Yield			XRD Result %
Collar	From	To	ISO-a	ISO-b	%	Quartz	K-Feldspar		Kaolinite	Halloysite	Others	Total
T21004	4	6	53.6	58.1	47.5	0.6	nd	99.2	nd	0.2	100
T21004	6	8	61.1	67.3	45	0.5	nd	83.3	16	0.2	100
T21004	8	10	70	79	42.6	0.5	0	81	18.2	0.3	100
T21004	10	11	65.7	73.7	22.5	0.3	nd	77.2	22.3	0.2	100
T21004	11	12	72	83.1	40.6	0.6	0.2	75.3	23.3	0.6	100
T21004	12	13	83	87.9	39.3	0.6	nd	77.1	21.9	0.4	100
T21004	13	15	82.7	88.8	44	0.7	0.1	67.8	30.9	0.5	100
T21004	17	18	81.2	83.4	41.8	0.9	0.2	66	32.4	0.5	100

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				ISO Brightness		Yield			XRD Result %
	Collar	From	To	ISO-a	ISO-b		%	Quartz	K-Feldspar		Kaolinite	Halloysite	Others	Total
	T21003	3	6	67.1	75.5	45.9	1.1	0.1	93	3.7	2.1	100
	T21003	6	8	66.1	73.9	43.2	1	0.2	92.4	4.1	2.3	100
	T21003	8	10	64.7	71.3	43.1	1	nd	88.4	8.2	2.4	100
	T21003	10	11	63.9	70.7	50.8	1.3	nd	85.7	9.9	3.1	100
	T21003	11	12	81.7	87.2	40.4	1	1.3	82.2	11.9	3.6	100
	T21003	12	14	86.5	87.9	28.7	0.8	3.1	80.1	13.5	2.5	100
	T21003	14	16	72.9	76.4	23.4	0.8	3.3	75.2	18.4	2.3	100
	T21002	16	17	70.8	73.8	18.5	1.1	3.4	74.9	18.6	2	100
	T21003	17	18	75.5	80.5	32.2	1.4	5.5	75.9	15.6	1.6	100
				ISO Brightness		Yield			XRD Result %
	Collar	From	To	ISO-a	ISO-b		%	Quartz	K-Feldspar		Kaolinite	Halloysite	Others	Total
	T21007	7	9	67.8	77.3	35.1	0.4	nd	99.4	nd	0.2	100
	T21007	9	11	71.4	83.4	37.4	0.5	nd	99.5	nd	0	100
	T21007	11	13	67.5	76	36.5	0.5	nd	99.2	nd	0.3	100
	T21007	13	15	74	80.8	38.8	0.7	nd	98.1	nd	1.2	100
	T21007	15	17	62.8	64.9	44.8	1	nd	96	nd	3	100
	T21007	17	19	69.1	71.7	45.2	0.7	nd	97.4	nd	1.9	100
	T21007	19	21	82.7	89.9		39.3	0.9	nd		97.8	nd	1.3	100

*Reported previously

The samples of refined clay were taken from drill samples as part of a resource estimation program being conducted at both Pittong and Trawalla. A total of 14 air core holes were drilled at Trawalla. Several of these holes have been processed at the Pittong laboratory in Victoria, which was initially established by ECC and Imerys, and the Nagrom Laboratory in Perth.

Raw clay samples from the drill holes were refined by the standard Pittong method. This includes slurry preparation at 50% solids with water, NaOH and dispersant which is blunged for 30 minutes to separate clay from the other mineral constituents. The blunged sample is screened at 250 microns with the passing fraction allowed to settle for a designated time, after which the upper fine fraction is decanted, adjusted to pH 4, then filtered and dried. Various tests are made on each sample to indicate quality including chemistry by XRF, brightness, bleached brightness and particle sizing by Sedigraph.

The refined samples contain halloysite at levels between 13.7 and 32.4% as measured by XRD at the James Hutton Institute. ISO Brightness (unbleached) reached as high as 86.6% indicating good potential for high quality paint and paper coating applications. Samples from T21004 have good plasticity at 29.9 to 46.1 Kg/cm2 as measured by Modulus of Rupture and high fired brightness at 85.5 to 86.1 indicating good potential in high end ceramics.

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Next steps

Further test work is underway to determine the Trawalla halloysite clays geological and mineralogical aspects. Morphology, rheology, calcination and other properties of the Trawalla halloysite mineral are planned to be tested and studied by one of the world's leading industrial mineral laboratories in the UK. The aim of the research is not only to examine traditional ceramic manufacturing aspects of halloysite-kaolin but to also develop a broad range of applications of HNT nanomaterials based on the unique properties of Trawalla halloysite.

Trawalla halloysite samples will undergo further testing and processing to be prepared into "tailor- made" premium grade kaolin products based on the clay's properties, identify the most suitable process, and products together with end-users input and technical support.

Suvo plans to use its current market position as the only hydrous kaolin producer in Australia to not only complete test work with global leaders in the industry, but to also define and commercialise additional market segments that can be addressed from Trawalla.

What is Halloysite?

Halloysite is an aluminosilicate clay mineral in the kaolin group with the empirical formula Al2Si2O5(OH)4. Its main constituents are oxygen (55.78%), silicon (21.76%), aluminium (20.90%), and hydrogen (1.56%).

Halloysite naturally occurs as very small, hollow tubes which are 100% inorganic and biocompatible. Dimensions are very small typically tube length 0.5 to 10 microns, out diameter 0.1 to 0.2 microns and inner diameter (lumen) 10 to 20 nanometres, hence they are often referred to as Halloysite Nanotubes (HNT). The outer surface is predominantly composed of SiO2 with a negative charge whilst the inner surface is composed of Al2O3 with a positive charge. Aspect ratio, surface area, chemical and thermal stability are all very high.

Whilst the traditional use of halloysite has been in top end whiteware ceramics such as porcelain and bone china the unique properties described above have led to other higher technical applications which have been established for a number of years, including catalytic cracking of oil, honeycomb catalyst support for vehicle exhausts, polymers, geosynthetic clay liners and others.

Academic and industrial research into new opportunities for halloysite continues at a rapid pace covering a very diverse range of applications which includes medical applications such as wound dressings, tissue engineering scaffolds, dental/bone implants and drug delivery: environmental applications including CO2 capture, water purification and nano templating and others.

Suvo, is currently one of the world's leading producers of pharmaceutical-grade refined kaolin products from their Pittong operations. The halloysites from Suvo's Trawalla kaolin resource will greatly assist the company's in-house research and development on new pharmaceutical grade kaolin products and enlarge the company's product portfolio for more medical applications.

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