Heavy Minerals (ASX:HVY) expects to meet with the Department of Mines, Industry Regulation and Safety (DMIRS) in Q2 2024 to discuss the Port Gregory Garnet Project permitting process.
The initiation of permitting is a key milestone towards achieving a Final Investment Decision (FID) for the Port Gregory project.
MBS Environmental was retained in 2023 to launch this work. MBS Environmental completed a baseline assessment of the permitting requirements during the past quarter and this work is largely complete.
Heavy Minerals says the focus will be on a robust permitting strategy and plan, ensuring compliance and smooth progression of the project.
The regulatory baseline assessment report being completed has not identified any critical issues.
As highlighted in its latest quarterly report today (30 April 2024), negotiations for land access to a number of new exploration targets the company has identified were continued during the period.
The company says there was some success and positive signs with the landowner engagements and it anticipates commencing a low impact exploration program in 2024 to validate potential targets identified during the quarter.
During the quarter, the company signed a non-binding MoU for the sale of 15% of future production with Melbourne-based garnet distributor ABSS.
The MoU was signed for the future sale of a minimum of 15,000 tonne per annum of garnet from Heavy Minerals’ Port Gregory Garnet Project.
The offtake is for an initial three-year term and will account for about 10% of the company’s future garnet production. Heavy Minerals is engaging with garnet distributors in North America and internationally seeking additional distribution partners.
Heavy Minerals is currently progressing a Prefeasibility Study (PFS).
In January a site visit was undertaken to take water samples from existing water bores sourcing water from the target aquifer. The purpose was to test for water quality and the results were favourable. A hydrogeological drill program has been designed, costed and tendered. This work will allow for further water quality testing as well as pumping tests and is planned for H2 2024.
Non-Executive Chairman Adam Schofield says progress with the PFS, coupled with the permitting process, shows the company is “on track to commercial realisation”.
Heavy Minerals is an industrial mineral explorer with a portfolio of projects considered prospective for industrial minerals including but not limited to garnet, zircon, rutile, and ilmenite.
Write to Adam Drought at Mining.com.au
Images: Heavy Minerals
