Industrial minerals explorer Heavy Minerals (ASX:HVY) has increased the Mineral Resource Estimate (MRE) by 23% at its Port Gregory Garnet Project near Geraldton in Western Australia.
The company reports the MRE for Port Gregory now stands at 166 million tonnes @ 4% Total Heavy Minerals (THM) at a 2% THM cut-off grade. The 89% garnet fraction of the THM is in line with previous findings, resulting in 5.9 million tonnes of contained garnet.
Heavy Minerals says this updated MRE represents about 5 years of the current global garnet demand and puts the company in an ‘enviable’ position. Additionally, with 91% of the garnet resource in the measured and indicated mineral resource categories, the company now has the required knowledge to inform an upcoming Prefeasibility Study (PFS), which will build on the results of the Scoping Study complete in late 2022.
In the coming weeks, pit optimisation work will be undertaken by IHC Mining to test the areas of the deposit where mineralised zones could be converted into potential mining inventory with the aim of informing the PFS.
Heavy Minerals reports its future exploration programs at Port Gregory will be driven by a need to improve the areas of the deposit which sit in the inferred and indicated categories, as well as potentially extending the deposit further north and south, and providing edge definition for the mining pit.
Mining test pit activities are also planned to test the digging characteristics of near-surface material, and for the purpose of collecting bulk samples from representative sites for the bulk metallurgical testwork. The company plans to complete this metallurgical testwork to a Definitive Feasibility Study (DFS) level in anticipation of completing the PFS.
Commenting on the updated MRE, Heavy Minerals Chief Executive Officer Andrew Taplin says: “The company was confident that there would be a significant increase to the size and quality of the resource following the most recent infill and extension aircore drilling program, with the company meeting all expectations. The updated Mineral Resource Estimate now credibly positions HVY to be the next potential garnet producer in the Port Gregory region.
“The company remains of the view that its Port Gregory Garnet Project is a world-class asset”
The updated Mineral Resource Estimate will inform the Port Gregory Project Prefeasibility Study that is scheduled to commence imminently and is expected to contribute further value to the already strong financial metrics. The company remains of the view that its Port Gregory Garnet Project is a world-class asset.”
Heavy Minerals is an Australian industrial minerals explorer focused on its Port Gregory and Red Hill Garnet projects in Western Australia. A Scoping Study for Port Gregory completed in late 2022 demonstrated the potential for a 16-year mine life project with a net present value (NPV) of $253 million, and a capital cost of $110 million.
According to the company’s latest investor presentation published on 21 June 2023, Heavy Minerals had $892,000 cash at hand.
Write to Harry Mulholland at Mining.com.au
Images: Heavy Minerals Ltd