Perpetual Resources Ltd (ASX:PEC) has been granted the Arrowsmith West Exploration Licence (E70/5798) by the Western Australian Department of Mines, Industry Regulation and Safety (DMIRS).
The licence paves the way for Perpetual to start exploration reconnaissance and evaluation activities in the area.
The Arrowsmith West tenement is just 3.2 kilometres west and immediately south of Perpetual’s flagship Beharra Mining Lease.
Silica sand in demand
Perpetual is exploring for silica sand and aims to produce high purity silica for domestic and international markets, particularly the high growth Asian market.
Global demand for silica sand is increasing against a backdrop of growing industrial uses, urbanisation of the developing world, higher grade requirements from high-tech manufacturing and the global legislative shift against single-use repackaging.
Perpetual signed an option and acquisition agreement to acquire Arrowsmith West in early July.
The tenement is prospective for high-grade silica sand and is highly strategic due to its proximity to Beharra. It is also within cleared farming land with minimal or no impact on existing native vegetation.
Given the nature of its location, there is potential for rapid development should Perpetual be in possession of a viable project.
The grant of E70/5798 includes a minimum expenditure commitment of $20,000.
Looking to grow flagship asset
The addition of Arrowsmith West could be a vital addition to Perpetual’s silica sands asset base, as the company looks to expand its silica footprint.
Beharra Project is 300 kilometres north of Perth and is 96 kilometres south of the port town of Geraldton.
The infrastructure surrounding the project is sound with access via the sealed Brand Highway and the Geraldton-Eneabba railway line.
Beharra comprises a granted mining lease, M70/1406, which covers 10.4 square kilometres. Further to this, a granted exploration licence, E70/5221, covers 56.8 square kilometres.
Extensive heavy mineral sands mining is ongoing to the south of Beharra. The area is also home to lime sands mining to the west and natural gas production to the south of the project area.
In March this year, Perpetual delivered a maiden ore reserve along with a pre-feasibility study outlining what looks like compelling project economics. A mineral resource estimate was delivered in July 2020.
Auger and aircore drilling have previously confirmed the presence of extensive, high purity silica sand.
Perpetual is now determining Arrowsmith West’s geological and economic potential and how it could sequence with the development of the Beharra Project.