Zeotech Advances Toondoon Drilling and AusPozz Trials with Methane Emission Cuts

Drilling Campaign Strengthens Toondoon Kaolin Project

Zeotech Limited (ASX:ZEO) wrapped up an extensive 110-hole drilling campaign at its Toondoon Kaolin Project during the June quarter, drilling approximately 3,100 metres. The program combined infill drilling on the approved Mining Lease with step-out holes on adjacent exploration permits, aiming to boost resource confidence and support a potential maiden Ore Reserve. The campaign also explored opportunities to extend production beyond the current project life, marking a significant step in advancing Toondoon's development.

Regulatory Approvals and Infrastructure Progress De-risk Development

Zeotech secured several critical approvals this quarter, including the Estimated Rehabilitation Cost (ERC) and Operational Works Development Application for a private access driveway connecting the mine to Myola Road. Environmental permits covering fauna, vegetation, and water-related aspects also advanced, with water feature declassification approved under Queensland legislation. These regulatory milestones reduce development risk and enable infrastructure construction to proceed.

The company completed tender processes for haul road and access works, selecting a preferred contractor and authorising procurement of long-lead civil construction materials. Planning for haulage logistics between mine and port infrastructure is underway, with proposals received for an initial kaolin direct shipping ore (DSO) trial shipment covering mining, transport, and port handling.

AusPozz™ Commercial Trial and Concrete Performance Gains

Building on pilot-scale successes, Zeotech dispatched around 800 tonnes of Toondoon kaolin feedstock for a commercial-scale AusPozz™ production trial. Approximately 80% of the resulting product has been committed to a key commercial partner for advanced validation and downstream testing, signalling strong early demand. The remaining production is being evaluated for concrete trial opportunities across various market segments.

Concrete performance testing focused on slab-on-ground applications, one of Australia's largest concrete segments, showed AusPozz™ mixes delivering unconfined compressive strength (UCS) of 21 MPa at 7 days and 42 MPa at 28 days, compared to 16 MPa and 26 MPa respectively for fly ash mixes. These gains support faster construction schedules and enhanced durability without compromising workability. Alkali–silica reactivity testing confirmed AusPozz™’s suitability, showing nonreactive outcomes at greater than 15% cementitious content replacement.

Methane Control Program Demonstrates 92% Emission Reduction

Zeotech’s methane control initiative, zeoteCH₄®, delivered compelling early results in field trials at the North Burnett Regional Council landfill. Conducted with Griffith University, the trial recorded an average 92% reduction in methane emissions compared to untreated control cells during the initial monitoring period. Methane oxidation efficiency was estimated at around 90%, indicating effective methane transformation within the landfill cover.

The trial weathered significant rainfall early on, with remediation efforts confirming stable performance under operational conditions. Ongoing monitoring is scheduled through August to assess durability and scalability, positioning zeoteCH₄® as a promising passive, cost-effective methane mitigation technology.

Strategic Partnerships and Port Infrastructure Developments

Zeotech extended its offtake agreement with MSI to April 2027, enhancing commercial and operational terms following a Queensland site visit. The company also executed a non-binding term sheet with Gladstone Ports Corporation for a kaolin DSO storage and export facility at the Port of Bundaberg, adjacent to existing bulk handling infrastructure. Gladstone Ports’ permanent bulk material loading facility is under construction and expected to be complete by November 2026, aligning with Zeotech’s export plans.

These developments reflect coordinated progress across Zeotech’s supply chain, supporting the transition from resource development to commercial kaolin DSO operations.

Financial Position and Operational Outlook

Zeotech ended the quarter with $8.498 million in cash. Exploration and evaluation expenditures totaled $777,000, with research and development costs at $576,000. No mining production occurred during the period, consistent with the project's development stage. Payments to related parties, including director salaries and fees, amounted to $218,000.

The company’s focus remains on advancing Toondoon’s resource definition, securing approvals, completing infrastructure works, and progressing AusPozz™ commercialisation alongside methane mitigation technology validation.