Heavy Minerals takes flight to expand WA project potential

Heavy Minerals (ASX: HVY) will utilise data from recently completed airborne LiDAR and RTK surveys at its Port Gregory and Red Hill projects in Western Australia to help expand their world class potential.

Surveys were flown at a height of 1000 feet and covered 2575 hectares at Port Gregory and 755 hectares at Red Hill.

The data will be a key component in the company’s development of new resource models for the heavy mineral projects, with the company already on the path to rapid development of the Port Gregory deposit north of Perth.

The Port Gregory project currently has a JORC (2012) inferred and indicated mineral resource of 135 million tonnes at 4.0% total heavy minerals.

This includes 4.9 million tonnes of contained garnet and 220 thousand tonnes of ilmenite.

Non-executive chairman, Adam Schofield, said that as the company looks to transition from an explorer to a potential miner, the high level of surface data these surveys provide will be invaluable in improving the level of resource confidence and for mine and infrastructure planning.

Port Gregory funding support

The company recently moved to seek project build investment finance support for the Port Gregory project from the Dutch state via Atradius, the Government of the Netherlands official Export Credit Agency (ECA).

It has already received a letter of support (LoS) confirming a due diligence program to assess insurance and export financing for the Port Gregory Project.

Heavy Minerals was advised and supported in its application by its project study consultant IHC Mining, a subsidiary of Royal IHC. IHC has supported the company with its technical, engineering and project study work for the Port Gregory Project since it listed in September 2021.

IHC suggested the Dutch ECA scheme would be applicable to the Port Gregory project based on the potential provision of mining hardware, the process plant and supporting infrastructure from the Dutch owned Royal IHC.

Notably, lenders on debt guarantee by ECA Cover generally obtain lower interest rates charges than commercial rates, as repayment of debt is insured, with longer terms a feature of ECA supported debt.

Almandine garnet market target

Heavy Minerals has identified the global almandine garnet market as one option for commercialisation of the Port Gregory material.

Aside from almandine being used as a beautiful gemstone for the last thousands of years, in the last 150 years it has garnered multiple industrial uses as well, including waterjet cutting, abrasive blasting, water filtration, and generally as an abrasive powder.

Studies have identified favourable garnet market conditions with an estimated CAGR >7% through to 2030.

Ideally located for rapid development

Strategically located near key infrastructure, including ports and highways, the Port Gregory project also benefits from being amenable to proven and simple mining and processing techniques.

The company is already investigating off-take opportunities which it is looking to secure over the next 18 months and is targeting near-term production in 2026.

Heavy Minerals has estimated its proposed production level will contribute <1% to the global blast media market and <10% to world garnet markets.