McLaren Minerals (ASX:MML) is generating some interest in its silica sands projects as it works to realise value from the assets while advancing its namesake titanium project in Western Australia.
Managing Director Simon Finnis tells Mining.com.au on the sidelines of the RIU Explorers Conference, being held in Western Australia’s port city of Fremantle this week, that he is currently in talks with some interested parties.
“We’ve got people looking at them. It’s not a formal process but certainly looking at these projects and hoping someone else who loves them will grab them,” he says.
“Clearly the previous management team and the focus of the company with the silica sands projects sort of ran out of steam. It is difficult, it’s a small market, it’s not a high-value market.
“It would probably better suit someone who is going to consume it themselves. So we’re looking at all those projects. Holding costs are quite low, but it’s not a key focus so we’ll be looking for partners or whatever we can do to bring some value to shareholders.”
The silica assets comprise three main projects in Western Australia, namely the Argyle Silica Project, South-West Silica Project and Esperance Silica Project.
Late last year, McLaren changed its name from Allup Silica to better reflect its focus on mineral sands after acquiring the 333km2 advanced heavy mineral sands McLaren Project 150km east of Norseman in Western Australia.
McLaren hosts indicated and inferred resources of 280 million tonnes at 4.8% heavy minerals for 13.5 million tonnes of in-situ heavy minerals comprising ilmenite, rutile, leucoxene and zircon.
Ilmenite is a titanium-iron oxide mineral and the main source of titanium dioxide, essential for many industrial applications.
Titanium is a high-demand metal listed by several countries – including Australia, the US, Canada and China – as a critical mineral because of its importance in aerospace, defence and energy technologies.
Finnis says that while investors do not yet fully understand the mineral sands potential, he is hoping the strategic pivot will eventually garner more interest in the company and the McLaren Project.
“We’re hoping of course that the change of personnel, the people that have done all of this sort of thing before, brings confidence to people. Obviously when we get to the Prefeasibility Study and we can release numbers that will be a huge step forward, all going well – which I think it will,” he tells this news service.
“Everyone gets gold, everyone gets copper, everyone gets iron ore, but not many people get mineral sands.
“RIU Explorers is extremely busy, obviously there’s a lot of excitement around the gold stories, but I am expecting the punters to drift my way as the conference goes on.”
On Wednesday (19 February), McLaren named a new Chair. Michael Arnett will join the board as non-executive independent Chairperson on 1 March 2025, replacing current Chair Campbell Smyth who is stepping down to pursue other business interests.
Arnett has over two decades of expertise in the resources industry, including having served as Chairperson of $1.6 billion mining services firm NRW Holdings (ASX:NWH) since 2016.
He was previously a partner at Norton Rose Fulbright (formerly Deacons), including serving as a member of its board of directors and as national head of the firm’s Natural Resources Business Unit.
Arnett has also held board positions with several ASX-listed companies, including as Chair of emerging iron ore producer Genmin (ASX:GEN), a role from which he recently resigned.
“Michael’s extensive legal and corporate experience in the resources sector make him an extremely valuable addition to the McLaren board,” Finnis says.
“His knowledge and extensive networks in the industry will be invaluable to the company as we progress the feasibility phases, and development of the McLaren Titanium Project.”
McLaren’s aim is to expand the higher confidence indicated resource to 200 million tonnes of heavy minerals as part of the PFS, which is slated for completion in the second quarter of 2025.
The junior explorer is currently undertaking a 6,000m aircore drilling program to support mine planning and confirm high-grade zones, as previously reported by Mining.com.au.
Write to Angela East at Mining.com.au
Images: McLaren Minerals
