RE: News16 Mar 2023 07:15
From Kazera’s rns this morning,
Whale Head Minerals ("WHM") (60% interest)
The Company is pleased to confirm that it has placed an order for the manufacture of equipment to undertake the separation of HMS at WHM's Walviskop Heavy Mineral Sands Project within the vicinity of Alexander Bay/Port Nolloth, South Africa. The equipment, expected to be delivered in approximately four months, will allow the Company to sell Ilmenite and Garnet as separate HMS components, which will attract higher value than a bulk product. It is anticipated that the introduction of this equipment will lead to the production of product exceeding a purity of 80%, for which there is a ready market. Consequently, the Company is in active discussions with several prospective purchasers for these products. In the interim, the Company is introducing a double-deck 500-micron screen with a view to accelerating production of the separated HMS product. The Company is currently building up stockpiles of HMS whilst identifying a site to dry material away from the moisture and dust of the coast.
The initial mine permit area applied for by WHM and accepted by the Department of Mineral Resources and Energy has been moved circa 100 m etres to the west due to conflicts identified with the original permit coordinates. This has resulted in the Mine Permit now being in the surf zone of the bay and not largely on the beach. The resource volume for the new offshore permit location estimated by CREO Design (PTY) LTD, which undertook the initial competent persons report and resource estimate, is determined to be comparable in volume to the initial volume estimate for the onshore area but at a grade of 49.9% total heavy minerals compared to the 62% total heavy minerals on the beach area. This can be explained by the wind playing a significant role in removing light sand grains from the beach and so enriching the heavy mineral deposited there. However, a major benefit of the permits being moved is that wave action is constantly renewing the resource and rehabilitating the mine site. This means that current volumes in situ are largely irrelevant as what is mined is naturally replenished. Furthermore, initial testing has confirmed that the planned separation plant will upgrade the material from 49.9% to in excess of 80%, which will be directly saleable and is believed to be one of the highest grades in the world.
The mining method used in the WHM permit area will remain a dredging operation as originally planned. With the entire resource being submerged, a further advantage of the movement of the permit area is that dredge mining can take place unhindered and at a higher rate, resulting in higher production levels at lower unit cost per ton mined. This means the new moved mine permits have the potential of outperforming the original heavy mineral production volumes of mining on the beach.
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