The company drilled 76 additional holes to depths of 2-6m to help deliver a resource upgrade to 39.5 million tonnes of bright white kaolinised granite, an increase of 13% since the company listed last year, with a further 22% increase in contained kaolin to 16.4Mt, including improvements to brightness and yield.

 

The infill drilling delivered an indicated resource of 26.7Mt, with an inferred 12.8Mt.

 

The company is now awaiting on the results of subsequent extensional holes, which it believes will support further significant growth, although some holes had to be abandoned after they intersected an impenetrable cemented caprock. 

 

They will be completed at a later stage due to reportedly promising intercepts.

 

The updated resources will feed into the ongoing prefeasibility study being undertaken by Primero Group.

 

Suvo executive chairman Robert Martin said the company was making steady progress towards commencing operations at Gabbin, 215km northeast of Perth, and was in a position to advance offtake discussions, while determining its best product mix.

 

The company has an agreement to access key infrastructure, including 20,000t storage shed and rail loading facilities owned by CBH Group. 

 

Last week, Suvo started starting drilling at its recently acquired Pittong wet kaolin operation, 40km west of Ballarat in Victoria, with the aim of converting historical reserves and resources to JORC 2012 status in April. 

 

The company listed using the shell of ASX-listed, Israel-based lithium-ion battery developer Ultracharge in August, and secured the Pittong operations in November. 

 

Suvo's stock has traded between A3c-19c since listing, and the shares were steady at 15c today, valuing the company at $88 million.