Heavy Minerals thinks it has enough garnet to satisfy global demand for 5 years

Nick Sundich Nick Sundich, July 10, 2023

Few project developers claim to have enough of a resource to satisfy 5 years of global demand, but Heavy Minerals (ASX:HVY) is one of them.

 

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Yes, Heavy Minerals says it has 5 years demand

This company released an updated resource for its Port Gregory Garnet project and reckons it has 166Mt @ 4% Total Heavy Minerals. Of this 126Mt (@ 3.8%) is Measured as opposed to being indicated or inferred.

Heavy Minerals estimates it has 5.9Mt of Garnet, of which 4.1Mt is Measured. In both instances, it makes up nearly 90% of the Total Heavy Mineral Assemblage. 5.9Mt of garnet equates to about 5 years of the current global demand for that material!

Garnet alludes a group of silicate materials commonly made into gemstones used in jewellery as well as for other industrial uses.

They are typically (but not always) red. A tonne of garnet concentrate will set you back US$325 and this figure could increase in the coming years unless additional supply is bought to market.

 

 

A good result in less than 2 years

Heavy Minerals listed in August 2021 at 20c per share. Shares have flatlined for much of that time but have taken off today.

 

Heavy Minerals (ASX:HVY) share price chart, log scale (Source: TradingView)

 

The company already released a JORC Resource but updated it after recent drilling results.

It has told shareholders it will start a Pre-Feasibility Study ‘imminently’ and that there could be further upside from more exploration. Shareholders can also look forward to bulk sampling for end user acceptance testing scheduled to commence before the end of this calendar year.

 

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