Astro Resources NL (ASX:ARO) has increased its ownership in the Jack Track mineral sands project in southwest Western Australia to 100% after acquiring the 80% share held by Iluka Resources Limited.
The acquisition, subject to ministerial consent, will enhance the viability of the 100%-owned Governor Broome Project and assist in moving the asset towards commercial production.
It will bring the total JORC-compliant resource at Governor Broome to 77 million tonnes at 4.6% heavy minerals (HM), with further upside apparent.
“High-value heavy minerals”
Astro chairman Jacob Khouri said: “I am thrilled that Astro has successfully acquired the remainder of the high-grade Jack Track deposit, bringing the project back to 100% Astro ownership.
“The addition of the Jack Track deposit to our Governor Broome Project is a significant upgrade for the project, not only because of the additional tonnage of mineralisation but because of the relatively higher percentage of high-value heavy minerals contained within the mineralisation."
“We believe that the acquisition of the remaining 80% of Jack Track significantly enhances the economic viability of the Governor Broome Project as a whole, which we will assess with a mine scoping study to commence this year," Khouri said.
“The Astro board is confident that Astro can progress the Governor Broome Project to commercialisation and the board is committed to moving the enlarged project quickly forward to production.”
Governor Broome Project – tenements and JORC Resources
Jack Track deposit mineralisation
The HM assemblage of the Jack Track deposit mineralisation is of high value, containing 75% ilmenite, 10.8% zircon, 2.4% rutile and 6.8% leucoxene.
The Governor Broome Project HM deposits were estimated at a cut-off grade of 2% HM whereas those for the Jack Track deposit were estimated at a cut-off grade of 3% HM.
Astro estimates that current heavy mineral prices are in the order of US$1,350/tonne for zircon, US$1,200/tonne for rutile, and $300/tonne for sulphate ilmenite.
Scoping study
A scoping study will now be completed incorporating Governor Broome and Jack Track deposits.
The new study will also be based upon the encouraging metallurgical results recently received from test-work on a bulk sample of mineralisation from the Governor Broome Project.
The acquisition is expected to positively impact the potential development of the Governor Broome Project which will be reflected in the scoping study, due to the following:
- Significantly increased resources will enable longer mine-life and/or increased mining rate;
- High-value Jack Track mineralisation will enable a reduced capital payback time; and
- Increased resources will result in lower capital expenditure and overheads per tonne mined.
Project background
Astro has been in a joint venture with Iluka over the Jack Track tenement (R 70/58) since 2014, with Iluka holding an 80% interest in the joint venture.
Jack Track tenement directly adjoins to Astro’s wholly-owned Governor Broome tenement (R 70/53) containing the Governor Broome HM deposits.
Since 2014, Iluka has conducted extensive exploration work, discovering the Jack Track deposit and defining a JORC resource of 18.8 million tonnes at 4.7% HM.
Astro has now concluded negotiations for the purchase of Iluka’s 80% interest in Jack Track tenement as well as its adjacent tenement EL 70/5200, to the north of Jack Track.
Potential strike extensions
In addition, Astro has been granted a new Exploration Licence, EL70/5826, and has applied for another Exploration Licence, E70/5872, which together cover potential strike extensions of the known mineralisation from Jack Track.
Following the acquisition and the granting of E70/5826, the wider Governor Broome Project will cover 110 square kilometres, which will increase to 171 square kilometres upon the grant of E70/5872.
Astro intends to re-estimate the Jack Track deposit’s inferred resources to the lower cut-off grade of 2% HM, which TZ Minerals International Pty Ltd has indicated is potentially an economic cut-off grade for the Governor Broome Project’s North Resource.
Future work
It intends to carry out an infill drilling program as soon as possible to upgrade the resource to the indicated category with this expected to occur early in 2022.
In line with the drilling plans, preparations will be made to secure the necessary landowner consent and other regulatory approvals.
Furthermore, drilling is also planned to test lightly drilled areas to the west and south of the Jack Track deposit within R70/58.
Acquisition terms and funding
Terms of the acquisition will see Astro will make a cash payment of $700,000 to Iluka as well as a 1% royalty on gross revenue.
The company advised the market on February 22, 2021, that it would invest $1.3 million in a pre-feasibility study as part of the program for the Governor Broome Project and will use these funds to effect the acquisition, undertake drilling for the resource upgrade and exploration work and progress the mine scoping study for the project.