Perpetual Resources Ltd (ASX:PEC) has confirmed "exceptional" white sand test results as well as the delineation of multiple geological/mineralogical domains within the white sand sequence at its flagship Beharra high-grade silica sand project in Western Australia.
The company now believes there is strong potential that Beharra hosts an even higher quality silica sand product from a sub-domain within the white sand horizon, with a quality that shows strong potential to surpass the results of the most recent testing.
Given these results, the company will progress offtake discussions and negotiations in earnest.
Perpetual is also reassessing the planned timeline for the pre-feasibility study (PFS) update to include the results of the additional bulk metallurgical test-work to be carried out on each of the identified sub-domains.
Shareholders will be updated in the coming weeks as to the revised timetable for the delivery of the PFS update, although any decision to include this new metallurgical information is not anticipated to materially affect the overall project timeline.
Yet another improvement
Perpetual executive chairman Julian Babarczy said: “Today’s announcement of multiple geological domains within our already high-quality white sand sequence at Beharra is yet another improvement to our previous understanding of the quality of the Beharra deposit.
“The results announced today, which are exceptional in their own right and clearly show why Beharra is the leading Mid-West silica sand project, point to the proposition for an even higher quality end product, with additional test-work now being planned."
Marketing efforts
He said: “With a significant amount of drill sample remaining from the recent 86-hole aircore program completed in June 2021 at Beharra, we have commenced the collection of multiple bulk samples that will reflect each of the white sand sub-domains with subsequent testing aiming to confirm the presence of the higher quality upper sub-domain that will form the basis of Perpetual’s marketing efforts into the high growth Asian ultra-clear glass markets.”
Even higher quality final product
Exceptional improvement in interim product specifications has been confirmed when compared to the Beharra PFS.
The final Beharra white sand products from the testing have shown:
➢ Silicon oxide content remains high at 99.6%; and
➢ Iron oxide reduction of 37% from 276ppm to 173ppm.
It also highlighted that distinct geological/mineralogical differences exist within the high-quality white sand sequence at Beharra.
These differences demonstrate a clear chemical demarcation within the white sand domain, indicating the presence of a higher quality upper unit combined with a lower sub-unit, previously understood to be one broadly homogenous white sand horizon.
The attributes of the upper unit suggest that an even higher quality final product is possible from this sub-unit, which appears to contain the same (or potentially higher) silicon dioxide content, but with a significant reduction in key impurities.
Additional test-work
To confirm the presence of a higher-premium horizon at Beharra, Perpetual will now undertake additional bulk sampling, sourced from drill samples obtained in the most recent 86-hole aircore drilling program at Beharra.
Drill samples are being sent to the IHC Robbins laboratory in Brisbane, for a conclusive metallurgical understanding of each subdomain.
This will also generate significant volumes of final product samples for shipment to potential offtake customers.
Higher premium product
It is Perpetual’s proposition that this has a strong potential to identify the upper sub-unit as a higher premium product, with materially lower iron oxide and aluminium oxide than reported in the exceptional white sand test results today.
It is anticipated that the results of the follow-on test-work will be received early in the second quarter of 2022.
This timeline, however, is subject to the current high rates of testing work seen in minerals testing laboratories throughout Australia.
Offtake talks
With the identification of possibly higher quality sub-units within the white sand sequence at Beharra, it is expected that offtake discussions may be optimized by a focus on the potential higher quality product that might be derived from the upper sub-unit.
Perpetual will look to update the market in coming months as these discussions progress.