AusQuest's Waterfall Prospect Yields High-Grade Iron Product
AQD (AQD) Share Update September 2024 Tuesday 17th
AusQuest Achieves Premium Iron Product at Waterfall Prospect
AusQuest Limited (ASX: AQD) has announced a significant achievement at its Waterfall Prospect in the Morrisey Project, Western Australia. The company has successfully produced a premium iron product grading over 70% Fe from Davis Tube Recovery (DTR) test work on samples from the first three drill-holes.
Instant Summary:
- DTR test work produces >70% Fe from initial drill-holes.
- Magnetite recoveries average 40% for 106um, 75um, and 38um grind sizes.
- Program funded under the Strategic Alliance Agreement with South32 Limited.
Project Overview
AusQuest Limited has successfully produced a premium iron product grading over 70% Fe from DTR test work completed on samples collected from the first three drill-holes at the Waterfall Prospect. This prospect is part of AusQuest's 100%-owned Morrisey Project, located approximately 120km north of Mullewa in Western Australia, with rail access to the Port of Geraldton.
DTR Test Results
The DTR test results were received from three RC drill-holes (MYRC01, 04, and 07). These holes were selected to optimize the sample preparation process and test various grind sizes before processing the bulk of the samples. The results confirmed that iron grades greater than 70% Fe could be produced from all three grind sizes (106um, 75um, and 38um) for each of the 16 composite samples tested.
Importantly, there was no significant difference in product grades and magnetite recoveries between the two finer grind sizes, and only a slight deterioration in Fe grade from the 106um to 75um grind size. This suggests that a coarse grind may be sufficient to separate magnetite from the other gangue material.
Low Deleterious Elements
Deleterious elements such as silica (SiO2), alumina (Al2O3), sulfur (S), and phosphorus (P) were found to be very low, with only slight increases in the coarser grind product. This is a positive indicator for the quality of the iron product.
Next Steps
The remaining composite samples (~84) are now being processed to determine variations in recovery, product grade, and deleterious element content across the prospect using the two coarser grind sizes. These results will help assess the commercial potential of the prospect and determine the next steps in consultation with AusQuest's Strategic Alliance partner, South32 Limited.
Management's Perspective
AusQuest's Managing Director, Graeme Drew, expressed satisfaction with the results, stating, 'We are very pleased with the beneficiation test work from the first three holes, which demonstrated that a coarse grind size should be adequate in separating magnetite from the rest of the rock and producing a premium (>70% Fe) product.'
'We are now looking forward to receiving the rest of the results from the Davis Tube Recovery test work and mapping out product grades and recoveries across the whole prospect,' Mr. Drew added. 'This will help us assess the commercial potential of this prospect and determine the next steps in assessing the greater potential of the Morrisey Project as a whole.'
The successful production of a premium iron product with over 70% Fe significantly enhances the commercial potential of the Waterfall Prospect. This achievement could positively impact AusQuest's stock price as it demonstrates the project's viability and potential profitability. The low levels of deleterious elements further add to the attractiveness of the iron product, potentially leading to higher market demand.
Investor Reaction:
Analysts are likely to react positively to this announcement, given the high-grade iron product and the promising recovery rates. The involvement of South32 Limited as a Strategic Alliance partner also adds credibility and financial backing to the project. Investors may see this as a strong indicator of future growth and profitability for AusQuest.
Conclusion:
Investors should closely monitor the upcoming results from the remaining composite samples and the company's subsequent steps in developing the Morrisey Project. AusQuest's ability to produce a high-grade iron product with low deleterious elements positions it well for future success. Stay tuned for further updates from the company as they continue to explore the full potential of the Waterfall Prospect.