Zeotech Progresses Toondoon Development as AusPozz Trial Scales Up

Zeotech (ASX: ZEO) advanced its Toondoon kaolin project toward development during the June quarter while moving AusPozz into a commercial-scale production trial and recording strong early methane-control results.

The company completed a 110-hole drilling program at Toondoon for about 3,100 metres, secured further project approvals, selected a preferred contractor for access infrastructure works, and advanced procurement of long-lead civil construction items.

About 800 tonnes of Toondoon kaolin feedstock was prepared and dispatched for the AusPozz production trial, with around 80% of the resulting material committed to a commercial development partner for customer validation and downstream testing.

Zeotech ended the quarter with $8.498 million in cash after a net operating cash outflow of $2.161m.

Commercial Trial Momentum

Pilot-scale calcination test work generated data on material behaviour, conversion efficiency, and product reactivity before Zeotech progressed AusPozz high-reactivity metakaolin into the larger production trial.

Concrete performance testing for slab-on-ground applications showed unconfined compressive strength of 21 megapascals (MPa) after seven days, before reaching 42MPa after 28 days.

This compared with 16MPa after seven days and 26MPa after 28 days for the reference mix.

The AusPozz mix maintained comparable workability, slump, air content, and setting characteristics, while alkali-silica reactivity testing produced a non-reactive outcome when AusPozz exceeded 15% of total cementitious content.

Zeotech also progressed concrete trials connected with major Victorian infrastructure developments to assess durability, strength development, and carbon-reduction performance under project conditions.

Toondoon Pathway Takes Shape

The drilling campaign combined infill work with step-out exploration across adjacent exploration permits, aiming to increase confidence in the existing mineral resource and support work toward a potential maiden ore reserve.

Regulatory progress included approval of the Estimated Rehabilitation Cost application, the Operational Works Development Application for the private access driveway and the related High-Risk (Fauna) Species Management Program, while water-feature declassification requests were approved under the relevant Acts.

Zeotech extended its binding offtake agreement with MSI to 30 April 2027 after hosting representatives at its laboratory facilities, Toondoon, and the Port of Bundaberg.

A non-binding term sheet with Gladstone Ports Corporation supports a proposed dry bulk kaolin receival, storage, and loading facility at the port, while proposals covering mining, transport, and port handling were received for an initial kaolin trial shipment.

Methane Emission Results

Field trials conducted with Griffith University at the North Burnett Regional Council landfill showed the company’s zeoteCH₄ reduced methane emissions by an average of 92% against untreated control cells during the initial monitoring period.

Analysis of methane-to-carbon dioxide ratios indicated apparent methane oxidation efficiency of about 90%, while monitoring continued after remediation for significant rainfall encountered early in the trial.

Monitoring is scheduled to continue into early August 2026 to assess performance across changing environmental conditions and provide further information on the technology’s durability, consistency, and scalability.

“The June quarter has delivered strong and coordinated progress across Zeotech’s key strategic priorities, spanning resource development, project approvals, infrastructure planning, and commercial engagement,” chief executive officer James Marsh said.

“Drilling and exploration activities at Toondoon will strengthen our geological understanding, while key regulatory approvals and contractor selection continue to de-risk the development pathway.”