King River Resources Limited, fast tracking the productionTeam Veye | 27 Jan 2021 ASX - KRR
King River Resources Limited (ASX: KRR)
King River Resources Limited (ASX: KRR, KRR's Principal Activity is the exploration and development of the Tenements in the East Kimberley region of Western Australia.
New HPA Project Plan
King River Resources Limited (ASX: KRR) on 15 December 2020 provided this High Purity Alumina (HPA) Prefeasibility Study (PFS) update. As reported on the 19th and 26th November 2020, KRR decided to change the PFS plan for the production of HPA from a Kimberley-based mining operation to an industrial site in Western Australia using the Company’s HPA process on aluminum chemical feedstocks derived from other industrial processes. The change in direction has been identified as a consequence of metallurgical testwork and engineering costings as part of the PFS on the Speewah Project. KRR believes this change will assist in completing the PFS, fast track the production of HPA, and improve the business case
(Chart source: TradingView)
On 19 November 2020, King River Resources Limited had provided this High Purity Alumina (HPA) Prefeasibility Study (PFS) update. A decision had been made to deliver the PFS using its HPA process using aluminum 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 had 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. (Data Source – Company Reports)
The new HPA production circuit based on an industrial chemical feedstock is a simpler process than the Speewah operation and would not require the development of associated mining, processing and logistical infrastructure in the Kimberley of Western Australia. The Speewah engineering study had highlighted the potential benefits of this new development strategy. KRR has just reversed its downtrend. The stock had shown recovery from December month and managed to close at the middle band of the Bollinger. The bullish engulfing with higher high formation is well supported by MACD positive cross over. The stock can have the potential for a significant upside if the reversal doesn’t turn out to be fake. It has two strong supports at $0.038 and $0.034 below which it will become very weak and should be maintained a strict stop loss. Veye recommends a “Speculative Buy" on “King River Resources Limited” at the current price of $0.039
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