Perpetual Resources Ltd (ASX:PEC) is advancing the pre-feasibility study update (PFSU) for its Beharra Project in Western Australia to assess the economic viability of bulk white sand extraction following successful metallurgical test-work.
No field exploration activities were undertaken in the December 2021 quarter due to a focus on carrying out additional metallurgical testing, feasibility studies, and permitting and environmental activities.
An application for an additional tenement was lodged with DMIRS, being located about 3 kilometres west of the Beharra tenement and adjacent to the Brand Highway.
Exploration activities for the assessment of high-grade silica sand potential in the additional tenement will be undertaken in 2022.
Resource and reserves update
Perpetual is continuing work on the updated Mineral Resource Estimate (MRE) and a new Ore Reserves Estimate (ORE).
These new estimates will incorporate drill results from the Phase 3 86-hole aircore drill program carried out last year.
Interim results have established further refinement on the subdivision of sand types, and this will be reported in the new estimates.
This work is being undertaken by Snowden Group who have carried out previous MRE’s and an ORE on Beharra.
Project development
Metallurgical test work on the Phase 3 white sand drill intersections utilising production scale equipment was completed by IHC Robbins in Brisbane.
The aim of this metallurgical work was to broadly replicate the initial white sand metallurgical testing and to demonstrate the extremely low impurity potential of the white sand that extends across a large portion of the Beharra orebody.
The test work confirmed white sand products have lower levels of impurities including a measured reduction in Fe2O3 by 34% to 173ppm.
Distinct geological sub-domains within the sand horizons have been characterised with the upper unit appearing to contain higher SiO2 grades and lower impurities when compared with the lower unit.
This has prompted metallurgical testing on the separate white sand units.
These white sand units and other yellow and grey sand horizons have been geologically and geochemically identified and will be treated as such in the current MRE work.
Updated pre-feasibility study
During the quarter work had continued on the white only sand Updated Pre-Feasibility Study (UPFS).
The scope of work has now been expanded to include the white only sand subunits once that metallurgical test work has been completed, due H1, 2022.
Notably, Perpetual has received interest from a previously announced offtake partner relating to the potential for sales of Direct-Shipping-Ore (DSO) white sand from Beharra.
In response to this indicative interest, a DSO Scoping Study is being completed.
The study objective is aiming to identify the cost base for the potential sale of a simple screened and washed DSO product scenario on a FOB (Free on Board) Geraldton Port basis.
Finalisation of this report is expected in 1QCY22 after further discussions have been held with the potential offtake partner.
First water lease agreement signed
Perpetual concluded a ground-breaking groundwater access agreement with the Yamatji Southern Regional Corporation (YSRC) (the Traditional Landowners), being the first water lease agreement signed under the Strategic Aboriginal Water Reserve.
The agreement between Perpetual and YSRC secured the water requirements for the Beharra Project for an initial 10-year period.
The agreement covers 560,000 kilolitres of water per annum.
Environmental surveys
Environmental surveys at Beharra have been ongoing and has included detailed vegetation assessments and the targeted search for priority and threatened flora, completion of fieldwork relating to the Level 2 terrestrial fauna survey, analysis of SRE (short-range endemic) invertebrate fauna, and a review of the Beharra Project’s potential impact on community noise levels.
Completed surveys included heritage site avoidance and dust/air quality. Environmental Review and Impact assessment is ongoing.
Perpetual has received both the licence (26D) for construction of wells for hydrogeological investigations and the permit (Program of Work) for well construction.