Allup Silica Advances McLaren Mineral Sands Project with New Drilling Plans
APS (APS) Share Update September 2024 Monday 23rd
Allup Silica Announces Progress on McLaren Mineral Sands Project
Allup Silica Limited (ASX: APS) has announced significant progress on its McLaren Mineral Sands Project in Western Australia, including new drilling plans and a Pre-Feasibility Study (PFS).
Instant Summary:
- IHC Mining Consultants begins McLaren Mineral Sands PFS engineering design.
- Initial design targets 10Mtpa throughput to produce up to 400,000tpa ilmenite product.
- Allup plans to start infill drilling program in Q4 2024.
- Environmental Resources Management (ERM) appointed for drilling program and Mineral Resource Estimate (MRE) update.
- PFS expected to be completed by Q2 2025.
Project Overview
Allup Silica Limited is advancing its McLaren Valuable Heavy Mineral Sands (VHMS) Project, located near Balledonia, WA. The company is leveraging previous work to expedite the completion of a Pre-Feasibility Study (PFS) conducted by IHC Mining Consultants.
The initial design scope for the PFS is based on a 10 million tonnes per annum (Mtpa) throughput, aiming to produce up to 400,000 tonnes per annum (tpa) of ilmenite product. This follows successful metallurgical test work completed by IHC in 2018, which demonstrated good ilmenite recoveries from a conventional mineral sands flowsheet.
Drilling and Resource Estimation
Allup plans to commence an infill drilling program in Q4 2024. Environmental Resources Management (ERM) has been appointed to plan this drilling program and update the Mineral Resource Estimate (MRE) once the drilling results are received. The updated MRE is expected in early 2025.
Previous Metallurgical Test Work
In 2018, IHC conducted a metallurgical test work program on a representative sample from the McLaren deposit. The sample, which assayed approximately 7.2% heavy mineral, contained 56.3% ilmenites and higher grade titanium minerals like Leucoxene. The test work confirmed that the material is amenable to standard mineral sands processing methodologies.
Flowsheet Development
The 2018 test work led to the development of a conceptual flowsheet using traditional mineral sands separation techniques. The process involves three main circuits: Feed Preparation, Wet Concentration Plant (WCP), and Concentrate Upgrade Plant (CUP). The WCP process produces a Heavy Mineral Concentrate (HMC) containing 89.1% heavy mineral, 25.9% TiO2, and 0.37% ZrO2.
Scope of Pre-Feasibility Study (PFS)
The PFS will cover various aspects, including a mining rate of 10Mtpa using dry mining unit technology, targeting a resource of 200Mt in the JORC Indicated category, and aiming for a 20-year mine life. The study will also include a preliminary mass balance, slimes management system, capital cost estimate for processing, and operating strategy and costs for processing. The PFS is expected to be completed by Q2 2025.
Ilmenite Market
The global ilmenite market exceeded US$8.8 billion in revenue in 2023 and is estimated to grow at a CAGR of more than 8% to 2032. Titanium dioxide (TiO2), widely used in paints, coatings, plastics, and paper, is driving this demand. Innovations in the energy sector are also increasing the use of TiO2 in batteries and hydrogen production.
The closing price for ilmenite sand IP3 grade ex Moma (Mozambique) as of 31 March 2024 was $US300/MT.
The announcement is likely to have a positive impact on Allup Silica's stock as it demonstrates significant progress in the McLaren Mineral Sands Project. The commencement of the PFS and the upcoming drilling program indicate a clear path towards production, which could boost investor confidence.
Investor Reaction:
Analysts are expected to react positively to the news, given the detailed plans and timelines provided. The appointment of reputable consultants like IHC and ERM adds credibility to the project's potential success.
Conclusion:
Investors should keep an eye on Allup Silica's progress with the McLaren Mineral Sands Project, especially the upcoming drilling program and PFS completion. These developments could significantly impact the company's valuation and future prospects.