Astron wraps up work streams ahead of delivering Donald DFS
Astron Corporation is on track to deliver an ore reserve for its mineral sands and rare earths project this quarter.
Astron Corporation (ASX: ATR) has a busy quarter ahead as it aims to complete all work streams contributing to a definitive feasibility study (DFS) for its Donald rare earths and mineral sands project in Victoria.
In its December quarterly report released today, the company confirmed an updated phase one project ore reserve for the Donald mining licence area would be completed this quarter, following the conclusion of the current phase of a revised mining study.
This mining study will incorporate last month’s updated mineral resource estimate of 525 million tonnes at 4% total heavy minerals, which saw a 25% increase in in-situ heavy minerals to 21Mt, a 60% growth in in-situ rare earth minerals to 511,000t and 5% increase in in-situ zircon resources to 3.4Mt.
A preliminary route for the 66kV overhead powerline from Horsham sub-station to the mine site has been selected with detailed design to commence this quarter.
Other work streams being progressed include final designs of the process plant and tailings handling facilities, and basic design of key infrastructure including the water pipeline, worker accommodation village and road upgrades.
Mineral Technologies began DFS-level engineering for the Donald process plant with work expected to conclude this quarter. Capital and operating expenditure estimates will be incorporated into the DFS.
Regulatory approvals
The Victorian Work Plan is the key regulatory approval remaining for the Donald project, which Astron expects to submit to Victorian government authorities in mid-2023.
An economic impact assessment (EIA) of phase one of the project was conducted by Deloitte Access Economics last quarter, concluding that this initial phase offers significant benefits at the project and state levels and presents a clear opportunity to develop Australia’s capability in rare earths and critical minerals in line with Australia’s Critical Minerals Strategy.
The EIA shows the project is expected to contribute $2.2 billion to the gross regional product within the local area and will create an average annual 536 fulltime equivalent employment opportunities.
Potential offtake deals
Astron said engagement with potential customers for offtake arrangements are ongoing.
The company today confirmed it is in talks with “several parties” in relation to offtake of its heavy minerals concentrate (HMC) and rare earth elements concentrate (REEC) products and plans to execute “a number of agreements” by the third quarter of 2023.
Phase one of the Donald project includes an estimated average ore throughput of 7.5 million tonnes per annum to produce about 250,000-300,000tpa of HMC and 8,000-9,000tpa of REEC.