Heavy Minerals releases maiden resource estimate for Port Gregory garnet project
Within the heavy mineral suite, the resource estimate includes 4.9Mt of contained garnet, which is equivalent to five years of global demand.
Recent ASX debutant Heavy Minerals (ASX: HVY) has announced a maiden resource estimate for its Port Gregory garnet project of 135 million tonnes at 4% total heavy minerals (THM) and a 2% cut-off grade.
A 90% garnet fraction of the mineral suite exceeded the company’s expectations resulting in 4.9Mt of contained garnet, which is equivalent to approximately five years of global demand.
The total estimate comprises an indicated resource of 88Mt at 3.8% THM, 10% slimes (clay) and 9% oversize containing 3.3Mt of THM with an assemblage of 89% garnet, 4% ilmenite, 2% rutile and 0.6% zircon.
It also contains an inferred 47Mt at 4.5% THM, 10% slimes and 11% oversize containing 2.1Mt of THM with an assemblage of 91% garnet, 4% ilmenite, 1% rutile and 0.5% zircon.
Zircon, rutile and ilmenite grades are believed to improve moving eastward across the resource and may indicate potential for heavy mineral sand deposits further to the east which appear to have a more varied and traditional mineral sands assemblage.
Significant upside exists with mineralisation open to the north and south within the Port Gregory tenure.
Enviable position
Chief executive officer Nic Matich said a resource containing 4.9Mt garnet with an ilmenite and rutile credit is an enviable position for the company to be in just eight months after its public listing.
“We were confident that this project was highly prospective however the size and quality of the resource has exceeded all expectations and positions us as the next potential garnet producer in the region,” he said.
“High grade, shallow mineralisation, lends itself to a low-cost mining operation … we are firmly of the view this is a world-class deposit.”
Scoping study
With the resource estimate now defined, the Port Gregory project moves onto the scoping study phase, where Heavy Minerals aims to gain a greater understanding of its true potential.
In the coming weeks, consultant company IHC Mining will carry out pit optimisation work to test the areas of the deposit where mineralised zones could be converted into potential mining inventory.
“Our future exploration program at Port Gregory will be driven by the results of the scoping study,” Mr Matich said.
“We have the option of conducting infill and extension drilling to increase confidence in the mineral resource and potentially add further tonnes to the inventory … the study results will help us determine which options align best with our strategy to rapidly develop this project while adding shareholder value.”
Mr Matich said the securing of additional tenure to the east of Port Gregory in November had proven to be a “strategic and prudent” move, as the wide-spaced step-out drilling to be conducted during the next phase of exploration would likely extend into this area.
Land access agreements have been put in place for a significant portion of the new tenure and an application for a program of works permit has been submitted.