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.

 

SIGN UP FOR THE STOCKS DOWN UNDER NEWSLETTER NOW!

 

 

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.

 

Stocks Down Under Concierge is here to help you pick winning stocks!

The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector!

Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target and stop loss level in order to maximise total returns. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.

Our performance is well ahead of the ASX200 and All Ords.

You can try out Concierge for 3 monthsfor FREE.

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

There’s no credit card needed – the trial expires automatically.

 

 

Blog Categories

Get Our Top 5 ASX Stocks for FY25

Recent Posts

Nuix

Nuix (ASX:NXL) has quadrupled in 12 months! But is more growth to come?

Nuix (ASX:NXL) has been one of the most controversial companies on the ASX since it listed, but has it turned…

ASX Biotechs

Here are 3 ASX biotechs with major milestones coming right up!

Investing in ASX biotechs is a risky business, even more than most other companies on the market. Unless you own…

buy the dip

When do you know it’s time to ‘buy the dip’? You could be catching a falling knife

‘Buy the dip’ – have you ever heard that term? It implies that when a company’s share price ‘dips’ or decreases,…