While a Prefeasibility Study (PFS) progresses, Heavy Minerals (ASX:HVY) has advanced permitting activities for the Port Gregory Garnet Project with consultants MBS Environmental.
In collaboration with hydrogeological consultants Rockwater, MBS Environmental completed a baseline assessment of the project’s permitting requirements during the June quarter of 2024. The regulatory baseline assessment is being completed and Heavy Minerals says the assessment has not identified any critical issues.
Heavy Minerals, which has a market capitalisation of $6.1 million, says the permitting activities are key to achieving a final investment decision for Port Gregory.
The company is also undertaking relevant government agency engagement. Heavy Minerals anticipates it will meet with the Department of Mines, Industry Regulation and Safety (DMIRS) in the second half of this year to discuss Port Gregory’s permitting process.
Preparations of detailed documents for the project’s mining lease application are complete.
Port Gregory’s PFS, which is exploring multiple development options to maximise the net present value of the project and define the marketing and logistics options, is scheduled to be completed early next year.
The company conducted product quality testwork on the project’s garnet, prior to the start of marketing activities. The material tested had been progressed through an IHC Mining pilot plant. The garnet was tested against key industry quality standards.
Non-executive Chairman Adam Schofield says the company has made steady progress towards making Port Gregory a commercial reality, while also advancing work on other projects.
“The company has continued to raise capital via its royalty funding initiative and is awaiting receipt of funds from a number of subscribed and potential subscribers,” Schofield says.
“Despite the Port Gregory Garnet Project PFS being on hold, the project capital review process is expected to realise further value and provide additional capital costs data points as the company transitions into the Port Gregory Bankable Feasibility Study.”
The Port Gregory Project is a 226km2 Western Australian tenement package that contains a resource estimate of 166 million tonnes @ 4% total heavy mineral with 5.9 million tonnes of contained garnet.
As of 30 June 2024, the company had $47,000 in cash and cash equivalents at hand, according to its latest quarterly report.
During the quarter, Heavy Minerals received an additional $100,000 of funding via its non-dilutive gross revenue royalty raising.
To date, the company has raised a total of $970,000 — before costs, including $100,000 of funds still to be received. Heavy Minerals says there are a number of royalty agreements awaiting execution.
The cash from the royalty funding is being used to fund the PFS.
Write to Aaliyah Rogan at Mining.com.au
Images: Heavy Minerals
