Strategic Energy Resources (ASX:SER) has estimated a maiden JORC 2012 resource of 7.8 million tonnes grading 5.1% heavy minerals at its Ambergate project in Western Australia.
The total heavy mineral content is 394,000 tonnes.
The company has chosen to define the resource with a low cut-off grade of 3% in line with its strategy of high grade, low cost operations for maximum cash flow.
For comparison, the nearby operating mine at the Keysbrook deposit has a grade of 2.2% heavy minerals with a low grade cut-off of 1%.
The Ambergate deposit formed about 800,000 years ago as a shoreline dune system.
The mineralisation at Ambergate lies between the surface and depths of up to 10 metres, with the majority at less than 4 metres depth.
Ambergate was previously explored by Westralian Sands / Iluka and Olympia Resources with a total of over 1000 drill holes completed.
Land access issues have been the main hurdle experienced by previous explorers at Ambergate.
Ambergate appears to have a reasonable potential for economic extraction by way of small open pit surface mining.
There are multiple heavy mineral sands operations in the region, including Iluka Resources (ASX:ILU) operating 15 kilometres East of Ambergate at Tutunup South.
Strategic Energy’s share price has increased by 25% since the start of this year, last trading at $0.015.