Key Highlights

  • The Toondoon resource rose 124% to 45.6 million tonnes grading 31.8% aluminium oxide.
  • About 80% of the resource, or 36.7 million tonnes, is classified as measured or indicated.
  • Theoretical feedstock for AusPozz has more than doubled to about 30 million tonnes.
  • Updated pit optimisation, mine planning and economic evaluation have not yet been completed.

Zeotech (ASX:ZEO) released an updated mineral resource estimate for its Toondoon Kaolin Project in Queensland on 9 November 2026. The resource rose 124% to 45.6 million tonnes grading 31.8% aluminium oxide, 8.8% iron oxide and 43.4% silicon dioxide, up from 20.36 million tonnes in June 2025.

About 80% of the resource, or 36.7 million tonnes, is classified as measured or indicated. The measured category alone increased to 14.35 million tonnes from 6.60 million tonnes.

Why classification matters

Measured and indicated resources carry higher geological confidence than inferred resources, and they are the categories that can be converted into ore reserves in a Mining study. A higher share of measured material can therefore support more detailed mine planning. Zeotech said the increase in measured resources provided greater geological confidence for future technical studies.

The drilling behind it

The upgrade incorporates 135 additional drill holes covering 3,957 metres. The company says these supported geological continuity and extended the interpreted clay sequence beyond the previous resource boundary. Grey, pink and white kaolin intersected in drilling was consistent with the aluminium oxide grades in the modelled domains.

The deposit is shallow and laterally extensive, with mineralisation starting at or near surface, and Zeotech considers it amenable to conventional open-cut mining. It remains open to the south, subject to further exploration, land access, tenure and approvals.

What AusPozz is

AusPozz is Zeotech's high-reactivity metakaolin, produced by heating kaolin. It is designed as a supplementary cementitious material that can partially replace Portland cement, reducing the embodied carbon of concrete while, the company says, improving strength and durability.

Cement production is a major source of global carbon dioxide emissions, so materials that reduce clinker content are attracting interest from construction companies and regulators. Calcined clays such as metakaolin are one of several Options being evaluated around the world.

Feedstock doubles

A theoretical AusPozz feedstock assessment identified 29.94 million tonnes at 34.18% aluminium oxide and 7.93% iron oxide. That compares with 14.71 million tonnes on a like-for-like basis under the 2025 estimate.

Chief Executive James Marsh said the theoretical feedstock available for AusPozz had more than doubled to about 30 million tonnes. He said that provided a foundation to evaluate a multi-decade production opportunity, including potential Manufacturing capacity beyond the initial 300,000 tonnes a year contemplated in the 2025 prefeasibility study.

Marsh said the expanded resource also strengthened the company's kaolin direct shipping ore strategy.

What has not changed yet

Zeotech has not yet completed updated pit optimisation, mine planning or economic evaluation for the expanded resource. The theoretical feedstock figure is not a reserve, and the Economics of AusPozz will depend on processing costs, energy prices, market acceptance and pricing relative to other cement substitutes.

Building a market for a new construction material can take time, because engineers and regulators typically require extended performance testing before adopting it widely.

The Toondoon project also illustrates how non-traditional mining companies are positioning for decarbonisation demand. Kaolin has long been used in paper, ceramics and paint, but its potential role in low-carbon cement has created a separate growth story. Zeotech's challenge is to demonstrate that AusPozz can compete on price and performance with other supplementary cementitious materials, including fly ash and ground slag, which are already widely used. Supply of those industrial by-products is expected to tighten as coal power stations close and steelmaking changes. No AusPozz pricing or customer commitments were disclosed.

Next steps

Marsh said the next phase would focus on mine planning, metallurgical variability testing, approvals and economic evaluation, alongside engagement with industry partners. Zeotech also says infill drilling may support future upgrades of the inferred portion.

Updated economics will be the key test of whether the larger resource translates into a larger and longer production plan.