AptarGroup Annual Report 2018

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Annual Report 2018

Astron Corporation Limited

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Annual Report 2018
Astron Corporation Limited

For personal use only

Annual Report 2018
Astron Corporation Limited

For personal use only

Annual Report 2018
Astron Corporation Limited

is commissioning a
Astron
processing plant to process
up to 150,000 tons per annum
of rutile

Astron Corporation Limited ARBN 154 924 553

Incorporated in Hong Kong, Company Number:

1687414 Annual Report for the Year Ended 30

June 2018

CAUTIONARY STATEMENT

Certain sections of this report contain forward-looking statements that are subject to risk factors associated with,
among others, the economic and business circumstances occurring from time to time in the countries and sectors
in which the Astron Group operates. It is believed that the expectations reflected in these statements are
reasonable but they may be affected by a wide range of variables which could cause results to differ materially
from those currently.

COMPETENT PERSONS STATEMENT

The information in this report that relates to Exploration Results and Mineral Resources for the Donald Project is
based on information compiled by Mr Rod Webster, a Competent Person who is a Member of the Australasian
Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Webster is a full-time employee of
AMC Consultants Pty Ltd and is independent of DMS, the owner of the Donald Project Mineral Resources. Mr
Webster has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Webster consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.

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Annual Report 2018
Astron Corporation Limited

Contents

Chairman’s Report ................................................................................... 6

Donald Mineral Sands Project – Murray Basin......................................... 8

Senegal Mineral Sands Project – Niafarang .......................................... 10

China ..................................................................................................... 12

Astron’s History ..................................................................................... 18

Corporate Governance Statement ......................................................... 19

Mineral resource statement for Astron and its Subsidiaries ................... 33

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Annual Report 2018
Astron Corporation Limited

Chairman’s Report

Dear Shareholders,

A processing plant and warehouse to process up to 150,000 tons per annum has been completed and
commissioning commenced in January 2019.

The Yingkou plant will be a precursor for DMS production. In the first instance, the plant will process
TiO2 feedstock that has been sourced by Astron, which is then planned to be for immediate sale to
customers.

Developing this plant will allow Astron to transition to feedstock from its Senegal project. Over time,
this will then transition to processing DMS material. As the plant is modularised there are opportunities
to increase its size and production output over time, based on quantity of feedstock and customer
demand.

The DMS project will include a WCP in Australia and an MSP, the MSP will be the Yingkou plant. A
previous amount of 2,000 tons which was used for design work, and in the recently completed financial
year a further 1,000 tons was extracted for a pilot plant for WCP MSP customer application test.

A primary focus for Astron this year has been the construction of the processing plant in China for
processing feedstock, for which commissioning has commenced.

OPERATIONS REVIEW

China Operations

Astron will produce TiO2 feedstock from its processing plant once commissioning is completed, and up
to 150,000 tons per annum can be processed.

DMS Summary

From an external perspective, the business cycle for the Zircon and Titanium industry is anticipated to
improve following a 5 year of low. DMS will start construction of the Donald Mineral Sands project once
final financing milestones have been achieved and hopes to enjoy the benefits of the forthcoming
positive industry cycle. As part of this, Astron continues to work the various funding options DMS
project.

Senegal

As part of the process, Astron remains engaged with the local community where possible, this includes
such commitments as sponsoring the Regional. The Team, a Major League Soccer team representing
the region / province of Casamance hosted an official signing ceremony where Astron representatives
attended to present its present and future support for the team. Astron continues negotiations with the
implementation of learning and development opportunities and industry alternatives or growth for the

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region’s economic and social development program.

Astron has delivered all the equipment and relevant facilities required for Senegal Project, the wells will
start few weeks.

Annual Report 2018
Astron Corporation Limited

USA Developments

USA has shipped 50,000 tons raw materials to China.

THE YEAR AHEAD

For the coming year, Astron will be focused on the production of rutile and become one of the best
manufacturers in the world.

Astron will also focus on bringing the Niafarang Project in Senegal into production.

Regarding DMS, Astron is renting a pilot plant in Australia for customer application and investigating
options for financing the Donald Project in Victoria.

Finally, I thank my team at Astron for their continued support, hard work and enthusiasm and I look
forward to entering an exciting new phase with you all.

Gerard King
Chairman

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Annual Report 2018
Astron Corporation Limited

Donald Mineral
Sands Project –
Murray Basin

Project Status: Financing and Detailed Engineering Definition Stage

World Class Zircon rich deposit – The Murray Basin is an iconic Geological formation where it
has layered our land as we know it today with high value and high-grade mineral sands
anomalies. The Donald project area is a significant generational opportunity for our regional
communities.

To achieve Astron’s global objectives during 2018 much effort was given to the planning and
housekeeping of existing design and external reporting requirements. Strategies were
implemented to focus on value adding outcomes related to defining the next phase of works.

In early 2018, DMS completed its second extraction of Run of Mine Material during which
significant tests were carried out under a separate work plan permit to excavate an ore
sample and conduct selective geotechnical and metallurgical tests within the previous test pit
vicinity.

Pit wall stability of material in dry and wet zones, overburden and ore were completed during
a 1,000t ore sample excavation program. Further assessments will be conducted in due
course in material placement, rehabilitation and post back-fill environmental condition
monitoring.

This test work was an important step in progressing the DMS Project final submission and
approval of the final Work Plan. The test pit Run of Mine (ROM) material will be refined into
final products for the development of marketing samples and long term global off take
agreements.

Subsequent to the extraction, the site underwent preliminary rehabilitation, and in May 2018
was returned to its original agricultural use, and is currently sown to barley.

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Annual Report 2018
Astron Corporation Limited

Specific tasks – 2019

Continue to work towards completion of project work plan and update EIS where necessary
Dependent on funding, initiate detailed phases and execution strategies, the following actions
are proposed:

Commence execution and development of the Astron owners’ team – engineering, planning,
project management

⚫ Commence final review of the detailed engineering scope and optimisation processes

⚫ Commence long lead item procurement

⚫ Commence detailed engineering

⚫ Execute and ramp up community engagement program

⚫ Commence road upgrade engineering and design Commence initial pipeline upgrades to

site for process water access

⚫ Compile final PEP (Project execution Plan)

⚫ Develop project base and head office – owners team spread across Project site, head

office and China

⚫ Define and lock down Design Criteria’s and Financing Strategies.

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Annual Report 2018
Astron Corporation Limited

Senegal Mineral
Sands Project –
Niafarang

Niafarang Project progressed significantly with respect to Astron’s presence with the country

and more specifically locally represented through senior team site visits including in-country

representation through Astron’s consultancy and visible working groups.

Equipment is shipped to the project site, and local procurement has commenced.

Reporting period achievement and forecast 2019 milestones include, Awarding of Road

Construction and Well Drilling Contracts.

Detailed mine planning and cross section developments Preliminary design and Scope of

Facilities

Modelling of the High-Grade beach deposit near surface level.

Upgrade of ore reserves to comply with JORC 2012, including mine production grades, as

well as zircon, rutile and ilmenite specifications.

Construction commencement.

Mine start up and first shipment of HM to China for processing Final product sales of process

minerals (zircon, rutile & ilmenite).

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Annual Report 2018
Astron Corporation Limited

Environmental, social and other aspects

Astron has obtained environmental approvals for the project as part of the grant of the Small
Mining Licence (SML). Whilst some concerns were raised regarding the environmental
impact of this project (marine erosion and sea level change), these matters were addressed
as part of the environmental approval process and addressing these risks is an important part
of the project plan.

Other social issues are being addressed through the planning and resettlement process,
including Astron’s opportunities to provide benefits to the local communities living on or near
the Niafarang dunes, which include fruit farming, wells, jobs and infrastructure.

Astron is striving for a cooperative approach with local communities and businesses,
particularly given the anticipated opportunities for employment and economic development
within the local regions.

Astron’s long term future in West Africa

The future of Astron Senegal project includes consideration for further exploration and
potential expenditure.

Astron has several large area’s identified for future exploration and potential expenditure
within the local region of Casamance, Senegal. The exploration areas will be determined
through a detailed assessment to ensure environmental areas with low sensitivity are
prioritised.

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Annual Report 2018
Astron Corporation Limited

China

REBUILD OF ADVANCE MATERIALS AND MANUFACTURING BASE IN CHINA

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Annual Report 2018
Astron Corporation Limited

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Annual Report 2018
Astron Corporation Limited

REBUILD OF ADVANCE MATERIALS AND MANUFACTURING BASE IN CHINA

In April 2018, Astron signed a construction contract for a processing plant and warehouse to
process up to 150,000tpa artificial rutile for use as a high-quality feedstock for chlorination
methods with TiO2 powder production plants in China.

Astron will produce TiO2 feedstock from its processing plant once commissioning is
completed, and it is anticipated that up to 150,000 tons per annum should be able to be
processed.

The project includes a new 10,000m2 warehouse and 10,000m2 hardstand for raw material
stocks.

Currently most TiO2 industry market expansion is ongoing to build up to 600,000tpa of
chlorination process capacity 2019 in China, creating a big demand for suitable high purity
feedstocks in early 2019.

Initially, Astron will use suitable available lower grade TiO2 feedstock, although it intends to
ultimately use its own main TiO2 feedstock from its Donald project in Victoria, Australia. The
Donald Project is working towards commencing its development and execution activities.

The rebuild is welcomed by directors as a significant first step in rebuilding Astron as a major
advanced materials company.

Current suppliers for specialty chlorination feedstocks include most major heavy minerals
producers, and current prices are in the order of USD1000 per ton CIF in China.

Developed Products

Nuclear-grade zirconia production Yingkou, People's Republic of China

200tpa high purity zirconium sponge production facility and an independent lab equipped with
advanced analysers including Bruker S8 XRF, Leeman ICP and laser particle size analyser
Atomic energy (high purity grade) zirconia production facility in operation already, producing
high-quality high purity grade zirconia products.

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Annual Report 2018
Astron Corporation Limited

Specialty R&D

Sponge zirconium technology

Astron has succeeded in producing high purity grade zirconia containing hafnium less than
50ppm by TBP-HCL-HNO3 extraction method. A facility of 200tpa highly-pure zirconia has
been established, with independent lab equipped with ICP and XRF etc.

Removal of Zircon Impurities Astron has spent nearly ten years and succeeded in removing
U/Th/Fe/Ti from zircon. This can greatly improve the quality of zircon. Lower impurity content
makes better glaze colour, which can provide premium raw materials for ceramics, refractory,
casting and chemical industry in China. The concentrated U solid waste can provide uranium
resource of low cost and high content to nuclear industry.

Pelletizing technology

Rutile pelletizing is a process to solve the problem of fine rutile being unable to be used for
TiCl4. This can also indirectly improve the fine rutile value. It is one of the methods of
recovering the blow-off of chlorinator. With chlorination, the particle size of the rutile products
being processed in this method enables better chlorination than common rutile and slag
materials.

CP TiO2 technology

Astron spent 3 years and more than several tens of million RMB in completing the detailed
design of 90,000tpa CP TiO2 Project with the cooperation with a team of experts in China and
overseas.

ZOC technology

Alkaline fusion is being generally used for ZOC industry with great pollution and poor
economy. Astron’s CP method is environment agreeable with its by products being of
improved economy.

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Annual Report 2018
Astron Corporation Limited

SUSTAINABLE DEVELOPMENT

Astron’s sustainable development encompasses our commitment and policy towards our
employees, local communities, health and safety, and the environment.

EMPLOYEES AND OTHER STAKEHOLDERS

Astron Group currently has about 60 employees. We take our responsibility to our staff
seriously through our human resources policies.

Astron’s human resources policies demonstrate care and concern for our staff and their
training, development and happiness, as well as care and concern for our customers,
suppliers and shareholders.

In Astron, salaries are based on competitiveness within the local market environment.
Additionally, some key employees have a variable performance related bonus which is
determined by pre- arrangement with alignment with individual and team objectives.

LOCAL COMMUNITIES

Astron is committed to bringing positive change to the communities surrounding its mining
operations.

Astron’s Donald Project has been planned in close consultation with the local community to
provide significant economic and social benefits to the community.

In 2018 Astron purchased a printer for the Minyip branch of the State Emergency Service,
who provide critical local assistance to minimise the impact of emergencies and strengthen
the community’s capacity to plan, respond and recover when emergencies occur.

The new printer will assist with the provision of training for volunteer members and general
administrative support of the unit.

Astron also sponsored the Minyip Art Show, the Minyip Golf Club, as well as the Donald
Scout group’s Muddy Duck event. In addition, sponsorship of the Minyip Murtoa Football
Club’s “Buddy Program” saw senior football players mentor the skills of juniors over three
nights throughout the playing season, building the skills, confidence and fitness of developing
footballers.

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Annual Report 2018
Astron Corporation Limited

Astron is also in the process of planning a community fruit farming initiative in Senegal,
nearby to Astron’s Niafarang Project and considering other options for a dried fruit business.
The social impact of the Niafarang project and acceptance of it has been the focus point
during the year, in particular by focusing on communication strategies and information drives
on small groups. Part of the engagement with local communities has included discussions of
opportunities including the potential for a dried fruit business, community soccer sponsorship
arrangements and other ways in which the project and Astron may benefit the local
communities, as well as Senegal as a whole.

ENVIRONMENT

Astron strives to be the best in class performance in all aspects of environmental
management. Compliance with all applicable legal requirements and legal codes of practice
is seen as a minimum standard and we work to prudently reduce emissions and waste.

The Astron Group is totally committed to continuing environmental vigilance and improving
systems of control, compliance and results such as the minimisation of all kinds of waste from
mining and down streaming processes where practicably possible.

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Annual Report 2018
Astron Corporation Limited

Astron’s background
and history

Astron Corporation Ltd (Astron) is domiciled in Hong Kong and listed on the Australian
Securities Exchange (ASX). Astron is well-known in the industry globally, specialized in its
zirconium and titanium business.

Astron’s main focus is developing its two wholly owned mineral sands projects, the Donald
Project in Australia and the Niafarang project in Senegal, West Africa.

The Donald project is one of the largest known zircon and titanium resources in the world.

The Niafarang project in Senegal, West Africa, is a high-grade coastal mineral sands
deposit, to be excavated using simple dredge mining and processing methodologies. Astron
has obtained the mining licence for the Niafarang Project and continues to work on social
acceptance and other relevant social resettlement programs.

A primary focus for Astron this year has been the construction of the processing plant for
processing feedstock, for which commissioning has commenced. While initially this plant will
be used to process and upgrade the low-grade TiO2 feedstock that Astron has recently
acquired, the long-term plans for this plant are to develop processes for refining HMC from
Senegal and then DMS. Astron continues to work on commissioning the processing plant
and using the outputs to develop Astron’s markets.

Astron has continued to build on its unique 25-year track record in China as a Chinese-
Australian company in developing, selling and marketing zirconium and titanium products.
Astron has significant research and technology capabilities in titanium and zirconium metal
and chemical processes. Astron carries on its Chinese mineral sands trading business to
maintain close relationships with its key customers. Astron continues to further develop its
technical capabilities of producing zircon and titanium metals and chemicals in establishing
customer specific satisfaction.

Astron was at one time the largest quality manufacturer of fused zirconia and zirconium
carbonate in the world. Astron was also a leading company that introduced titanium slag into
the market in China.

In the meantime, Astron was also a pioneering company that introduced tailing processing
technology into China. Astron has strong research and development of zirconium, titanium
and chemical products with many proprietary technologies. Astron is a manufacturer of
zirconium and titanium resource and high-end materials in the world. Astron built a small-
size high purity zirconia production facility towards the end of 2014.

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Annual Report 2018
Astron Corporation Limited

CORPORATE GOVERNANCE STATEMENT

The Board of Astron is responsible for the corporate governance of the Group. The Board
guides and monitors the business and affairs of Astron on behalf of the shareholders by
whom they are elected and to whom they are accountable. This statement reports on
Astron’s key governance principles and practices.

1. COMPLIANCE WITH BEST PRACTICE RECOMMENDATIONS

The Company, as a listed entity, must comply with the Corporations Act 2001 (so far as it
applies to foreign registered companies) and the Australian Securities Exchange (ASX)
Listing Rules. The ASX Listing Rules require the Company to report on the extent to which
it has followed the Corporate Governance Principles and Recommendations published by
the ASX Corporate Governance Council. Where a recommendation has not been followed,
that fact is disclosed, together with the reasons for the departure.

The table below summaries the Company’s compliance with the Corporate Governance
Council’s Principles and Recommendations:

Principle #

ASX Corporate Governance Council Recommendations

Reference

Comply

Principle 1

Lay solid foundations for management and oversight

1.1

A listed entity should disclose:

2.1

Yes

(a)

(b)

the respective roles and responsibilities of its board
and management; and

those matters expressly reserved to the board and
those delegated to management.

1.2

A listed entity should:

2.2, 3.2

Yes

1.3

1.4

1.5

(a)

(b)

undertake appropriate checks before appointing a
person, or putting forward to security holders a
candidate for election, as a director; and

provide security holders with all material
information in its possession relevant to a decision
on whether or not to elect or re-elect a director.

A listed entity should have a written agreement with each director
and senior executive setting out the terms of their appointment.

The company secretary of a listed entity should be accountable
directly to the board, through the chair, on all matters to do with
the proper functioning of the board.

A listed entity should:

(a)

have a diversity policy which includes requirements
for the board or a relevant committee of the board
to set measurable objectives for achieving gender
diversity and to assess annually both the objectives
and the entity’s progress in achieving them;

(b)

disclose that policy or a summary of it; and

3.2

2.6

6.3

Yes

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Annual Report 2018
Astron Corporation Limited

6.3

Yes

1.5
(continued):

(c)

disclose as at the end of each reporting period the
measurable objectives for achieving gender
diversity set by the board or a relevant committee
of the board in accordance with the entity’s
diversity policy and its progress towards achieving
them, and either:

(1)

(2)

the respective proportions of men and women
on the board, in senior executive positions and
across the whole organisation (including how
the entity has defined “senior executive” for
these purposes); or
if the entity is a “relevant employer” under the
Workplace Gender Equality Act, the entity’s
most recent “Gender Equality Indicators”, as
defined in and published under that Act.

1.6

A listed entity should:

2.8, 3.2

Yes

3.2, Remuneration
Report

Yes

3.2

(a)

(b)

have and disclose a process for periodically
evaluating the performance of the board, its
committees and individual directors; and

disclose, in relation to each reporting period,
whether a performance evaluation was undertaken
in the reporting period in accordance with that
process.

1.7

A listed entity should:

(a)

(b)

have and disclose a process for periodically
evaluating the performance of its senior executives;
and

disclose, in relation to each reporting period,
whether a performance evaluation was undertaken
in the reporting period in accordance with that
process.

Principle 2

Structure the Board to add value

2.1

The board of a listed entity should:

(a)

have a nomination committee which:

(1)

has at least three members, a majority of whom
are independent directors; and

is chaired by an independent director,

(2)
and disclose:

(3)
(4)

(5)

the charter of the committee;
the members of the committee; and

as at the end of each reporting period, the
number of times the committee met throughout
the period and the individual attendances of the
members at those meetings; or

(b)

if it does not have a nomination committee,
disclose that fact and the processes it employs to
address board succession issues and to ensure
that the board has the appropriate balance of skills,
knowledge, experience, independence and
diversity to enable it to discharge its duties and
responsibilities effectively.

2.2

A listed entity should have and disclose a board skills matrix
setting out the mix of skills and diversity that the board currently
has or is looking to achieve in its membership.

2.2, 2.3

Yes

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2.3

A listed entity should disclose:

2.3, 2.5

Yes

Annual Report 2018
Astron Corporation Limited

(a)

(b)

the names of the directors considered by the board
to be independent directors;

if a director has an interest, position, association or
relationship of the type described in Box 2.3 (which
appears on page 16 of the ASX Recommendations
and is entitled “Factors relevant to assessing the
independence of a director”) but the board is of the
opinion that it does not compromise the
independence of the director, the nature of the
interest, position, association or relationship in
question and an explanation of why the board is of
that opinion; and

(c)

the length of service of each director.

2.4

2.5

2.6

A majority of the board of a listed entity should be independent
directors.

The chair of the board of a listed entity should be an independent
director and, in particular, should not be the same person as the
CEO of the entity.

A listed entity should have a program for inducting new directors
and provide appropriate professional development opportunities
for directors to develop and maintain the skills and knowledge
needed to perform their role as directors effectively.

2.5

2.3, 2.4, 2.5

Yes

3.2

Yes

Principle 3 Act ethically and responsibly

3.1

A listed entity should:

(a)

have a code of conduct for its directors, senior
executives and employees; and

(b)

disclose that code or a summary of it.

Principle 4

Safeguard integrity in corporate reporting

4.1

The board of a listed entity should:

(a)

have an audit committee which:

6.1

Yes

3.1

(1)

(2)

has at least three members, all of whom are
non-executive directors and a majority of whom
are independent directors; and

is chaired by an independent director, who is not
the chair of the board,

and disclose:
(3)

the charter of the committee;

(4)

(5)

the relevant qualifications and experience of the
members of the committee; and

in relation to each reporting period, the number
of times the committee met throughout the
period and the individual attendances of the
members at those meetings; or

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Annual Report 2018
Astron Corporation Limited

4.1
(continued)

(b)

if it does not have an audit committee, disclose that
fact and the processes it employs that
independently verify and safeguard the integrity of
its corporate reporting, including the processes for
the appointment and removal of the external
auditor and the rotation of the audit engagement
partner.

4.2

4.4

The board of a listed entity should, before it approves the entity’s
financial statements for a financial period, receive from its CEO
and CFO a declaration that, in their opinion, the financial records
of the entity have been properly maintained and that the financial
statements comply with the appropriate accounting standards
and give a true and fair view of the financial position and
performance of the entity and that the opinion has been formed
on the basis of a sound system of risk management and internal
control which is operating effectively.

A listed entity that has an AGM should ensure that its external
auditor attends its AGM and is available to answer questions
from security holders relevant to the audit.

Principle 5 Make timely and balanced disclosure

3.1

5.3

4.1

5.1

A listed entity should:

4.2

Yes

(a)

have a written policy for complying with its
continuous disclosure obligations under the Listing
Rules; and

(b)

disclose that policy or a summary of it.

Principle 6

Respect the rights of security holders

6.1

6.2

6.3

6.4

A listed entity should provide information about itself and its
governance to investors via its website.

A listed entity should design and implement an investor relations
program to facilitate effective two-way communication with
investors.

A listed entity should disclose the policies and processes it has in
place to facilitate and encourage participation at meetings of
security holders.

A listed entity should give security holders the option to receive
communications from, and send communications to, the entity
and its security registry electronically.

Principle 7 Recognise and manage risk

7.1

The board of a listed entity should:

(a)

have a committee or committees to oversee risk,
each of which:

4.1, 4.2

Yes

4.1, 4.2

Yes

4.1, 4.2

Yes

3.1

(1)

has at least three members, a majority of whom
are independent directors; and
is chaired by an independent director,

(2)
and disclose:

(3)
(4)

the charter of the committee;
the members of the committee; and

as at the end of each reporting period, the number of times the
committee met throughout the period and the individual
attendances of the members at those meetings; or

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Annual Report 2018
Astron Corporation Limited

7.1
(continued)

(b)

if it does not have a risk committee or committees
that satisfy (a) above, disclose that fact and the
processes it employs for overseeing the entity’s
risk management framework.

3.1

7.2

The board or a committee of the board should:

5.1, 5.2

Yes

(a)

(b)

review the entity’s risk management framework at
least annually to satisfy itself that it continues to be
sound; and

disclose, in relation to each reporting period,
whether such a review has taken place.

7.3

A listed entity should disclose:

3.1

5.1

Yes

3.2

(a)

(b)

if it has an internal audit function, how the function
is structured and what role it performs; or

if it does not have an internal audit function, that
fact and the processes it employs for evaluating
and continually improving the effectiveness of its
risk management and internal control
processes

A listed entity should disclose whether it has any material
exposure to economic, environmental and social sustainability
risks and, if it does, how it manages or intends to manage those
risks.

7.4

Principle 8 Remunerate fairly and responsibly

8.1

The board of a listed entity should:

(a)

have a remuneration committee which:

(1)

has at least three members, a majority of whom
are independent directors; and

is chaired by an independent director,

(2)
and disclose:

(3)
(4)
(5)

the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the
number of times the committee met throughout
the period and the individual attendances of the
members at those meetings; or

(b)

if it does not have a remuneration committee,
disclose that fact and the processes it employs for
setting the level and composition of remuneration
for directors and senior executives and ensuring
that such remuneration is appropriate and not
excessive.

8.2

8.3

A listed entity should separately disclose its policies and practices
regarding the remuneration of non-executive directors and the
remuneration of executive directors and other senior executives.

3.2, Remuneration
Report

A listed entity which has an equity-based remuneration scheme
should:

6.2, Remuneration
Report

(a)

have a policy on whether participants are permitted
to enter into transactions (whether through the use
of derivatives or otherwise) which limit the
economic risk of participating in the scheme; and

(b)

disclose that policy or a summary of it.

Yes

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Annual Report 2018
Astron Corporation Limited

THE BOARD OF DIRECTORS

Roles and Responsibilities of the Board

2.1.
The Board is accountable to the shareholders and investors for the overall performance of
the Company and takes responsibility for monitoring the Company’s business and affairs and
setting its strategic direction, establishing and overseeing the Company’s financial position.
The Board is responsible for:

2.1.1.

2.1.2.

2.1.3.

2.1.4.

2.1.5.

2.1.6.

2.1.7.
2.1.8.
2.1.9.

Appointing, evaluating, rewarding and if necessary the removal of the Chief
Executive Officer ("CEO") or their functional equivalent and senior management;
Development of corporate objectives and strategy with management and approving
plans, new investments, major capital and operating expenditures and major
funding activities proposed by management;
Monitoring actual performance against defined performance expectations and
reviewing operating information to understand at all times the state of the health of
the Company;
Overseeing the management of business risks, safety and occupational health,
environmental issues and community development;
Satisfying itself that the financial statements of the Company fairly and accurately
set out the financial position and financial performance of the Company for the
period under review;
Satisfying itself that there are appropriate reporting systems and controls in place
financial, compliance, risk
to assure
management and
functioning
in place and
appropriately;
Approving and monitoring financial and other reporting;
Assuring itself that appropriate audit arrangements are in place;
Ensuring that the Company acts legally and responsibly on all matters and
assuring itself that the Company has adopted a Code of Conduct and that the
Company practice is consistent with that Code; and other policies; and

that proper operational,
internal control process are

the board

2.1.10. Reporting to and advising shareholders. Other than as specifically reserved to the
Board, responsibility for the day-to-day management of the Company’s business
activities is delegated to the CEO and senior management.

2.2.
The Directors determine the composition of the Board employing the following principles:

Board Composition

2.2.1.

2.2.2.

2.2.3.

2.2.4.

2.2.5.

the Board, in accordance with the Company’s constitution must comprise a
minimum of three directors;
the roles of the Chairman of the Board and of the CEO should be exercised by
different individuals;
the majority of the Board should comprise directors who are non-executive
(however this is not currently the case and the Company is seeking to address
this);
the Board should represent a broad range of qualifications, experience and
expertise considered of benefit to the Company; and
the Board must be structured in such a way that it has a proper understanding of,
and competency in, the current and emerging issues facing the Company, and can
effectively review management’s decisions.

The Company’s constitution requires one-third of the directors (or the next lowest whole
number) to retire by rotation at each Annual General Meeting (AGM), other than the
managing director. The directors to retire at each AGM are those who have been longest in
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Astron Corporation Limited

office since their last election. Where directors have served for equal periods, they may agree
amongst themselves or determine by ballot who will retire. A director must retire in any event
at the third AGM since he or she was last elected or re-elected. Retiring directors may offer
themselves for re-election.
A director appointed as an additional or casual director by the Board will hold office until the next
AGM when they may be re-elected. Any director appointed as an additional or casual director, is
not to be taken into account in determining the number of directors required to retire by rotation.

Board Membership

2.3.
The Board is currently comprised of one non-executive directors and two executive directors.
Details of the Board member’s experience, expertise and qualifications are set out in the
Directors’ Report of the Annual Financial Statements under the heading “Directors Report”.
The Board of Directors at the time of issue of this report comprises:

2.3.1.
2.3.2.
2.3.3.

Gerard (Gerry King (Chairman of Directors (Non-Executive
Alexander (Alex Brown (Managing Director/President
Mdm Kang Rong (Deputy Managing Director (Executive

2.4.
Chairman
The Chairman is responsible for:

2.4.1.
2.4.2.
2.4.3.

2.4.4.
2.4.5.

2.4.6.
2.4.7.
2.4.8.

leadership of the Board;
the efficient organisation and conduct of the Board’s functions;
the promotion of constructive and respectful relations between Board members and
between the Board and management;
facilitating the effective contribution of all Board members; and
committing the time necessary to effectively discharge the role of the Chairman.
The CEO is responsible for:
briefing directors in relation to issues arising at Board meetings;
implementing the Company’s strategies and policies; and
the day-to-day management of the Group’s business activities.

The Board specifies that the roles of the Chairman and the CEO are separate roles to be
undertaken by separate people.

Independent Directors

2.5.
The Company recognises that independent directors are important in assuring shareholders that
the Board is properly fulfilling its role and is diligent in holding senior management accountable for
its performance. The Board assesses each of the directors against specific criteria to decide
whether they are in a position to exercise independent judgment.
Directors of Astron are considered to be independent when they are independent of
management and free from any business or other relationship that could materially interfere
with, or could reasonably be perceived to materially interfere with, the exercise of their
unfettered and independent judgement.
In making this assessment, the Board considers all relevant facts and circumstances.
Relationships that the Board will take into consideration when assessing independence are
whether a director:

2.5.1.

2.5.2.

2.5.3.

is a substantial shareholder of the Company or an officer of, or otherwise
associated directly with, a substantial shareholder of the Company;
is employed, or has previously been employed in an executive capacity by the
Company or another group member, and there has not been a period of at least
three years between ceasing such employment and serving on the Board;
has within the last three years been a principal of a material professional advisor or
a material consultant to the Company or another group member, or an employee

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Astron Corporation Limited

2.5.4.

2.5.5.

2.5.6.

materially associated with the service provided;
is a material supplier or customer of the Company or other group member, or an
officer of or otherwise associated directly or indirectly with a material supplier or
customer; or
has a material contractual relationship with the Company or another group member
other than as a director.
has been a director of the entity for such a period that his or her independence may
have been compromised.

The Board notes that the mere fact that a director has served on a Board for a substantial
period does not mean that he or she has become too close to management to be considered
not independent. The Board will regularly assess the independence of all and any director
who serves on the Board.
Family ties and cross-directorships may be relevant in considering interests and relationships
which may affect independence, and should be disclosed to the Board.
The Company does not comply with ASX Recommendation 2.4, as there is not a majority of
non- executive directors nor is there a majority of independent directors on the Board. In
accordance with the definition of independence above, only one of the directors of the
Company is considered to be independent.
The Board believes that the Company is not of sufficient size to warrant the inclusion of more
independent non-executive directors in order to meet the ASX recommendation of
maintaining a majority of independent non-executive directors. The Company maintains a mix
of directors from different backgrounds with complementary skills and experience.
In recognition of the importance of independent views and the Board’s role in supervising the
activities of management the Chairman is a non-executive director.

Company Secretary

2.6.
The appointment, performance, review, and where appropriate, the removal of the Company
Secretary is a key responsibility of the Board. All directors have access to the Company
Secretary who is accountable directly to the Board, through the Chairman, on all matters to
do with the proper functioning of the Board.

Avoidance of Conflicts of Interest by a Director

2.7.
In order to ensure that any interests of a director in a particular matter to be considered by
the Board are known by each director, each director is required by the Company to disclose
any relationships, duties or interests held that may give rise to a potential conflict. Directors
are required to adhere strictly to constraints on their participation and voting in relation to any
matters in which they may have an interest.
Directors are able to access members of the management team at any time to request
relevant information. There are procedures in place, agreed by the board, to enable directors,
in furtherance of their duties, to seek independent professional advice at the company’s
expense.

Review of Board Performance

2.8.
The performance of the board and each of its committees is reviewed at least annually by the
Chairman. Performance evaluations are conducted annually which involve an assessment of
each board member’s performance against specific and measurable qualitative and quantitative
performance criteria. The performance criteria against which directors and executives are
assessed is aligned with the financial and non-financial objectives of Astron. Directors whose
performance is consistently unsatisfactory may be asked to retire.
The performance of each committee is against the requirements of their respective charters.

BOARD COMMITTEES

The Board has the ability under the Company’s constitution to delegate its powers and
responsibilities to committees of the Board.

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Astron Corporation Limited

Audit and Risk Committee

3.1.
The Board does not have an Audit and Risk Committee and as such the Group is not in
compliance with Principle 4.1 of the ASX Corporate Governance Council. The Board
considers that the Group is not of a size, nor are its financial affairs of such complexity to
justify the formation of a separate audit and risk committee. The Board as a whole
undertakes the selection and proper application of accounting policies, the identification and
management of risk and the review of the operation of the internal control systems. The
Board considers that the experience and qualifications of the Board will assure the integrity of
the financial statements of the Group and the independence of the external auditor.
Where practical and feasible, the Board invites the auditor to attend all general meetings of
shareholders.
The Board in lieu of an Audit and Risk Committee is responsible for:

3.1.1.

3.1.2.

3.1.3.

3.1.4.

3.1.5.

3.1.6.
3.1.7.

integrity of

the Group’s

the quality and

reviewing
financial reporting
shareholders, ASX and the Australian Securities and Investments Commission;
reviewing the accounting policies, internal controls, practices and disclosures to
assist the Board in making informed decisions, with direct access to management;
reviewing the scope and outcome of external audits, with direct access to external
auditors;
nominating external auditors and reviewing the adequacy of existing external audit
arrangements;
ensuring the independence of external auditors and reviewing any other services
provided by them;
reviewing the Group’s risk management systems; and
reporting on meetings and the results of any assessments and reviews.

External Auditor
The Company’s policy is to appoint external auditors who clearly demonstrate quality and
independence. The performance of the external auditor is reviewed annually, taking into
consideration assessment of performance, existing value and tender costs.
An analysis of fees paid to the external auditors, including a breakdown of fees for non-audit
services, is provided in the notes to the financial statements. It is the policy of the external
auditors to provide an annual declaration of their independence to the Board.

Internal Audit
The Company does not currently have a formal internal audit function however the Board
oversee the effectiveness of risk management and internal control.
The Board works closely with management to identify and manage operational, financial and
compliance risks which could prevent the Company from achieving its objectives. The Board
actively encourages the External Auditor to raise internal control issues, and oversees
management’s timely remediation thereof.

Remuneration and Nomination Committee

3.2.
Given the present size of the Group, the existing Board is able to meet the needs of the
Group in the examination of selection and appointment practices without the establishment of
a nomination committee of the Board as recommended under Principle 2.1.

Remuneration
The remuneration received by directors and executives in the current period is contained in
the “Remuneration Report” section in the Directors’ Report of the Annual Financial
Statements.

The Company seeks to attract and retain directors and executives with the appropriate
expertise and ability to create value for shareholders.
The remuneration structure for non-executive directors is not related to performance. The
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Astron Corporation Limited

Company aims to ensure non-executive directors receive fees which reflect their skills,
responsibilities and the time commitments required to discharge their duties. The Company
does not pay retirement benefits to non-executive directors (other than superannuation
contributions in accordance with its statutory superannuation obligations.
The remuneration structure for executive directors and other executives reflects the
Company’s financial resources and as such there is not currently a direct correlation between
the executive’s reward and individual and Company performance so as to seek to ensure that
the Company’s remuneration policy is aligned with its long-term business objectives and the
interests of shareholders and other stakeholders.

Nomination
A profile of each director is included in the Directors’ Report of the Annual Financial
Statements under the heading “Directors information”. The Company does not have a written
agreement in place with each director setting out the terms of their appointment. The
committee and the Board consider the composition of the Board at least annually, when
assessing the Board’s performance and when considering director election and re-election.
In considering whether the Board will support the election or re-election of incumbent directors,
the committee considers the skills, experience, expertise, diversity and contribution made to the
Board by the director and the contribution that the director is likely to make if elected or re-
elected.
When considering appointing new directors, the committee assesses the range of skills,
experience, expertise, diversity and other attributes from which the Board would benefit and to
the extent to which current directors possess such attributes. This assessment allows the
committee to provide the Board with a recommendation concerning the attributes for a new
director, such that they balance those of existing directors.
All material information that is relevant to the decision as to whether or not to elect or re-elect
a director is provided to shareholders in the explanatory notes accompanying the notice of
meeting for the Annual General Meeting at which the election or re-election is to be
considered.

TIMELY AND BALANCED DISCLOSURE

Shareholder Communication

4.1.
The Company believes that all shareholders should have equal and timely access to material
information about the Company including its financial situation, performance, ownership and
governance.
The Board aims to ensure that shareholders are informed of all material information relating
to the Company by communicating to shareholders through:

4.1.1.
4.1.2.
4.1.3.

continuous disclosure reporting to the ASX;
its annual reports; and
media releases and other investor relations publications on the Company’s
website. The Company provides other information about itself and its governance
via its website.

Two-way Communication
The Board is also mindful of the importance of not only providing information, but also
enabling two-way communication between the Company and its shareholders.
The Company encourages direct electronic contact from shareholders – the Company’s
website has a “Contact Us” section which allows shareholders to submit questions or
comments.
The Company provides shareholder materials directly to shareholders through electronic
means. A shareholder may request a hard copy of the Company's annual report to be posted
to them.

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Astron Corporation Limited

Shareholders may also communicate via electronic means with the Company’s Share
Registry and may register to access personal shareholding information and receive electronic
information.

General Meetings
Shareholders are encouraged to participate in general meetings. Copies of any addresses by
the Chairman or CEO are disclosed to the market and published on the Company’s website.
At the meeting the Chairman encourages questions and comments from shareholders and
seeks to ensure that shareholders are given ample opportunity to participate.
The Company’s external auditor are not invited to attend the Company’s annual general
meeting to answer shareholder questions about the conduct of the audit, the preparation and
content of the audit report, the accounting policies adopted by the Company and the
independence of the auditor in relation to the conduct of the audit, however the Company will
facilitate any questions from shareholders about these matters.

Continuous Disclosure Policy

4.2.
The Company is committed to ensuring that shareholders and the market are provided with full
and timely information and that all stakeholders have equal opportunities to receive externally
available information issued by the Company.
The Company’s “ASX Disclosure Policy” encourages effective communication with its
shareholders by requiring that Company announcements:

4.2.1.
4.2.2.
4.2.3.
4.2.4.

be factual and subject to internal vetting and authorisation before issue;
be made in a timely manner;
not omit material information;
be expressed in a clear and objective manner to allow investors to assess the
impact of the information when making investment decisions;
be in compliance with ASX Listing Rules continuous disclosure requirements; and
be placed on the Company’s website following release.

4.2.5.
4.2.6.
The Company’s “ASX Disclosure Policy” reinforces
to
continuous disclosure and outline management’s accountabilities and the processes to be
followed for ensuring compliance.
The policy also contains guidelines on information that may be price sensitive. The Company
Secretary has been nominated as the person responsible for communications with the ASX.
This role includes responsibility for ensuring compliance with the continuous disclosure
requirements with the ASX Listing Rules and overseeing and coordinating information
disclosure to the ASX.

the Company’s commitment

RECOGNISING AND MANAGING RISK

Board responsibility for risk management

5.1.
The Board is responsible for ensuring there are adequate policies in relation to risk
management, compliance and internal control systems. The Company’s policies are designed to
ensure strategic, operational, legal, reputation and financial risks are identified, assessed,
effectively and efficiently managed and monitored to enable achievement of the Company’s
business objectives. Considerable importance is placed on maintaining a strong control
environment.
The Company has exposure to the following risks:

5.1.1.

5.1.2.

Funding: The Company is subject to the risks in relation to funding its projects. The
Board will continue to monitor these risks.
Currency: The Company is exposed to fluctuations in the RMB and USD against
the Australian dollar which can impact on expenditures related to project
development and potentially future operations. Due to the size and assets of the

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Annual Report 2018
Astron Corporation Limited

5.1.3.

5.1.4.

is subject

Company the Board has not instigated a hedging program. The Board will continue
to review the implementation of hedging at each Board meeting to ensure it fits
within the Company’s hedging policy framework and is deemed appropriate.
Environmental: The Company
for existing
environmental liabilities associated with its tenements as well as potential new
liabilities through future mining activities. The Company will continually monitor its
ongoing environmental obligations and risks, and implement rehabilitation and
corrective actions as appropriate to remain compliant. These risks may be
impacted by change in Government policy.
Market Risk: The Company seeks to reduce investment risk by regularly monitoring
the market and considering at each Board meeting the ongoing benefits of carrying
investments or disposal. There are inherent uncertainty risks in the mineral sands
market, noting the difficult market conditions over recent years.

to, and responsible

Board Oversight of the Risk Management System

5.2.
The Board is responsible for approving and overseeing the risk management system. The
Board reviews, at least annually, the effectiveness of the implementation of the risk
management controls and procedures.
The principle aim of the system of internal control is the management of business risks, with
a view to enhancing the value of shareholders' investments and safeguarding assets.
Although no system of internal control can provide absolute assurance that the business risks
will be fully mitigated, the internal control systems have been designed to meet the
Company's specific needs and the risks to which it is exposed.
Annually, the Board is responsible for identifying the risks facing the Company, assessing the
risks and ensuring that there are controls for these risks, which are to be designed to ensure
that any identified risk is reduced to an acceptable level.
Internal control measures currently adopted by the Board include:

5.2.1.

5.2.2.

regular reporting to the Board in respect of operations and the Company’s financial
position; and
regular reports to the Board by appropriate members of the management team
outlining the nature of particular risks and highlighting measures which are either in
place or can be adopted to manage or mitigate those risks.

Risk Management Roles and Responsibilities

5.3.
The Board is responsible for approving and reviewing the Company’s risk management
strategy and policy. Senior management is responsible for implementing the Board approved
risk management strategy and developing policies, controls, processes and procedures to
identify and manage risks in all of the Company’s activities.
The Board in place of the Audit and Risk Committee is responsible for ensuring that
management has developed and implemented a sound system of risk management and
internal control.

ETHICAL AND RESPONSIBLE DECISION MAKING

Code of Ethics and Conduct

6.1.
The Board endeavours to ensure that the directors, officers and employees of the Company
act with integrity and observe the highest standards of behaviour and business ethics in
relation to their corporate activities. The “Code of Conduct” sets out the principles, practices,
and standards of personal behaviour the Company expects people to adopt in their daily
business activities.
All directors, officers and employees are required to comply with the Code of Conduct. Senior
managers are expected to ensure that employees, contractors, consultants, agents and
partners under their supervision are aware of the Company’s expectations as set out in the
Code of Conduct.

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Astron Corporation Limited

All directors, officers and employees are expected to:

6.1.1.
6.1.2.
6.1.3.
6.1.4.

comply with the law;
act in the best interests of the Company;
be responsible and accountable for their actions; and
observe the ethical principles of fairness, honesty and truthfulness, including
prompt disclosure of potential conflicts.

Policy Concerning Trading in Company Securities

6.2.
Effective 1 January 2011, the Board implemented a Share Trading Policy that applies to all
directors, officers and employees. This policy sets out the restrictions on dealing in securities by
people who work for, or are associated with the Company and is intended to assist in
maintaining market confidence in the integrity of dealings in the Company’s securities. The
policy stipulates that the only appropriate time for a director, officer or employee to deal in the
Company’s securities is when they are not in possession of price sensitive information that is
not generally available to the market.
As a matter of practice, Company shares may only be dealt with by directors and officers of
the Company under the following guidelines:

6.2.1.

6.2.2.

6.2.3.

6.2.4.

no trading is permitted in the period of one month prior to the announcement to the
ASX of the Company's quarterly, half year and full year results;
guidelines are to be considered complementary to and not replace the various
sections of the Corporations Act 2001 dealing with insider trading; and
prior approval of the Chairman, or in his absence, the approval of two directors is
required prior to any trading being undertaken.
Senior management are prohibited from entering into transactions which limit the
risk of participating in unvested entitlements under any equity-based remuneration
scheme.

Policy Concerning Diversity

6.3.
The Company encourages diversity in employment throughout the Company and in the
composition of the Board, as a mechanism to ensure that the Company is able to draw on a
variety of skill, talent and previous experiences in order to maximise the Company’s
performance.
The Company’s “Diversity Policy” has been implemented to ensure the Company has the
benefit of a diverse range of employees with different skills, experience, age, gender, race
and cultural backgrounds. The Company reports its results on an annual basis in the Annual
Financial Statements in achieving measurable targets which are set by the Board as part of
implementation of the Diversity Policy.
The Company notes that out of two (2 Executive Directors, one (1 is female. In relation to
senior executive positions, out of seven (7 two (2 are female. Out of the total of 62
employees, 19 are female.
Astron is not a “relevant employer” under the Workplace Gender Equality Act. The table
below outlines the diversity objectives established by the Board, the steps taken during the
year to achieve these objectives, and the outcomes.

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Annual Report 2018
Astron Corporation Limited

Objectives

Steps Taken/Outcome

Increase the number of
women in the workforce,
including management and
at board level.

Out of two (2) Executive Directors, one (1) is female. In
relation to senior executive positions, out of seven (7), two (2)
are female. Out of the total of 62 employees, 19 are female.

Review gender pay gaps
on an annual basis and
implement actions to
address any variances.

As a part of the annual remuneration review, the Board
assesses the performance and salaries of all key
management personnel and executive directors. Any gender
pay disparities are addressed.

Provide flexible workplace
arrangements.

During the year Astron employed 3 employees on flexible work
arrangements (2017: 7).

Provide career
development opportunities
for every employee,
irrespective of any cultural,
gender and other
differences.

While Astron places special focus on gender diversity, career
development opportunities are equal for all employees.
Employees are encouraged to attend professional development
courses/workshops throughout the year.

Promote an inclusive culture
that treats the workforce with
fairness and respect.

Astron has set a zero-tolerance policy against discrimination of
employees at all levels. The Company provides avenues to
employees to voice their concerns or report any discrimination.
No cases of discrimination were reported during the year
(2017: Nil).

Be compliant with all
mandatory diversity reporting
requirements.

Astron is not a “relevant employer” under the Australian
Workplace Gender Equality Act 2012.

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Annual Report 2018
Astron Corporation Limited

Mineral resource statement for Astron and its
subsidiaries
Geology and Geological Interpretation
The Donald and Jackson Deposits belong to the so-called “WIM-style” fine-grained mineral
sands deposits discovered in the Wimmera area of the Murray Basin in the 1980s. They
consist of large and broad lobate sheet-like heavy mineral accumulations deposited within the
Late Miocene to Late Pliocene Loxton-Parilla Sands. These deposits are believed to
represent accumulations that developed below the active wave base in a near shore
environment, possibly representing the submarine equivalent of the strand style deposits.
The WIM-style deposits are considerably larger in tonnage than strand-line deposits that are
formed along the seaward face of shorelines.

Mineral Resource estimate
Following the 2015 in-fill drilling at the Donald and Jackson Deposits, Astron commissioned
an independent consultant, AMC Consultants Pty Ltd, to update the Mineral Resource
estimates in accordance with the requirements of the JORC 2012 Code. This update was
finalised in April 2016.

The current Mineral Resource estimate totals 5.71 billion tonnes of sand at an average grade
of 3.2% HM (at 1% HM cut-off) - with Measured, Indicated and Inferred categories classified
as presented in Table 1 for the Donald and Jackson Deposits. In addition to assaying the
total HM content, major valuable heavy minerals (VHM) were assayed in more than 50% of
all drill holes and the heavy mineral assemblage is presented in Table 2.

Summary of annual review
The update of Astron’s Mineral Resource estimate for the Donald and Jackson Deposits was
completed and announced to the ASX on 7 April 2016 – i.e. during the financial year ended
on 30 June 2016.

Balance date
Astron’s Mineral Resource Estimate is provided as at 30 June 2018.

Governance arrangements
Astron has controls in respect of reporting Mineral Resource Estimates, which include both
internal approval process and where relevant obtaining external competent persons approval.

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Annual Report 2018
Astron Corporation Limited

Mineral Resource Estimate

Table 1: Heavy Mineral (HM) Sand – Mineral Resource Estimate

Area

RL2006

RL2003

Total Jackson
Deposit
(RL2003 &
RL2006)

RL2002

MIN553
2

Total Donald
Deposit
(RL2002 &
MIN5532)

TOTAL
Donald
Project

Classification

Tonnes
(Mt)

Measured
Indicated
Inferred
Subtotal
Measured
Indicated
Inferred
Subtotal
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Subtotal
Measured
Indicated
Inferred
Subtotal

Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total

0
58
24
82
0
1,845
560
2,405
0
1,903
584
2,487
343
833
1,595
2,771
372
75
7
454

715
907
1,603
3,225
715
2,811
2,187
5,712

HM
(%)
0.0
1.6
1.8
1.6
0.0
2.8
2.9
2.9
0.0
2.8
2.9
2.8
3.9
3.3
3.4
3.4
4.5
4.0
3.5
4.4

4.2
3.4
3.4
3.6
4.3
3.0
3.3
3.2

Slimes
(%)
0.0
14.1
14.4
14.2
0.0
19.2
16.8
18.6
0.0
19.0
16.7
18.5
19.8
16.2
15.7
16.4
14.4
13.8
13.5
14.2

17.0
16.0
15.7
16.1
18.1
17.9
16.4
16.9

Oversize
(%)
0.0
6.2
4.7
5.8
0.0
5.8
3.2
5.2
0.0
5.8
3.3
5.2
8.1
13.5
6.0
8.5
12.8
13.1
10.6

12.8

10.6
13.4
6.0
9.1
11.1
8.2
5.5
7.3

Note: 1. The total tonnes may not equal the sum of the individual resources due to rounding.

2.
3.
4.

The cut-off grade is 1% HM.
The figures are rounded to the nearest: 10M for tonnes, one decimal for HM, Slimes and Oversize.
For further details including JORC Code, 2012 Edition – Table 1 and cross sectional data,
see previous announcements dated 7 April 2016, available at ASX’s website at
http://www.asx.com.au/.

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Annual Report 2018
Astron Corporation Limited

Table 2: HM Assemblage and Mineral Resource Estimate for available VHM data

Area

Classification

Tonnes

(Mt)

(%)

Slimes

Oversize

Zircon

(%)

Measured
Indicated
Inferred
Subtotal
Measured
Indicated
Inferred
Subtotal

Measured

Indicated
Inferred
Total
Measured
Indicated
Inferred
Subtotal
Measured
Indicated
Inferred
Subtotal

Measured

Indicated
Inferred
Total
Measured

Indicated

Inferred
Total

0
18
8
26

650
146
797

668

155
823
185
454
647
1,286
264
49
5
317
448

503

652
1,604
448
1,171

807
2,427

0.0
2.1
2.5
2.2

5.0
4.1
4.8

4.9

4.0
4.8
5.5
4.2
4.9
4.8
5.4
4.9
4.2
5.3
5.4

4.3

4.9
4.9
5.4
4.6

4.7
4.8

0.0
14.2
14.1
14.2

18.2
15.2
17.7

18.1

15.1
17.6
19.1
15.9
15.2
16.0
14.2
13.6
13.5
14.1
16.2

15.7

15.2
15.6
16.2
17.1

15.2
16.3

0.0
5.7
4.5
5.3

5.4
3.1
5.0

5.4

3.1
5.0
7.3
13.2
5.8
8.6
12.2
12.1
10.5
12.1
10.2

13.1

5.8
9.3
10.2
8.7

5.3
7.9

RL2006

RL2003

Total Jackson
Deposit
(RL2003 &
RL2006)

RL2002

MIN5532

Total Donald
Deposit
(RL2002 &
MIN5532)

TOTAL
Donald
Project

Note:

Rutile+
anatase
(% HM)
0
8
8
8

9
10
9

9
9
9
7
9
8
7
7
7
7
8

8
8
8
8

9
8

Ilmenite

Leucoxene

Monazite

(% HM)
0
29
30
29

32
32
32

32
32
31
33
33
33
31
33
36
32
31

33
32
31
32

33
32

(% HM)

0
31
32
31

17
14
17

15
17
19
19
17
18
22
22
20
22
21

17
19
21
18

17
18

(% HM)
0
2
2
2

2
2
2

2
2
2
2
2
2
2
2
3
2
2

2
2
2
2

2
2

(% HM)
0
17
16
17

18
22
19

21
19
21
17
18
18
19
20
22
19
20

18
18
20
18

19
19

1. The total tonnes may not equal the sum of the individual resources due to rounding.
2. The cut-off grade is 1% HM.
3. The figures are rounded to the nearest: 10M for tonnes, one decimal for HM, Slimes and Oversize and

whole numbers for zircon, ilmenite, rutile + anatase, leucoxene and monazite.

4. Zircon, ilmenite, rutile + anatase, leucoxene and monazite percentages are report as a percentage of the

HM.

5. Rutile + anatase, leucoxene and monazite resource has been estimated using fewer samples than the
other valuable heavy minerals. The accuracy and confidence in their estimate is therefore lower.

6. For further details including JORC Code, 2012 Edition – Table 1 and cross sectional data, see previous

announcements dated 7 April 2016, available at ASX’s website at http://www.asx.com.au/.

For personal use only

Annual Report 2018
Astron Corporation Limited

Astron Corporation Limited

For personal use only