Perpetual Resources Ltd (ASX:PEC) has signed a Joint Collaboration Agreement with Mid West Ports Authority (MWPA) to investigate the potential for annual export of 1.5 million tonnes of high-grade silica sand from the Beharra Project in Western Australia.
The terms and conditions of the agreement will see both parties cooperate and work together to investigate how silica sand exports may be received, handled, loaded and shipped for export from Geraldton Port.
Framework for discussions
This is an interim agreement and does not guarantee Perpetual access to port capacity but provides a framework for constructive discussions which will take place over an initial 12-month period that is extendable by mutual consent.
Any capacity that is allocated to Perpetual remains subject to agreement by the respective boards of MWPA and Perpetual.
“Export growth potential”
MWPA acting CEO Damian Tully said, “We look forward to working with Perpetual to explore the potential capacity required to facilitate the Beharra high-grade silica sand project.
"This project is one of many which identifies significant export growth potential of planned projects in the Mid West region.”
The Port of Geraldton is an established bulk material handling facility and is utilised for the export of bulk materials, minerals, grain and concentrates.
Commodities exported via Geraldton Port include grains, copper concentrates, zinc concentrates, nickel concentrates, mineral sands, talc and iron ore.
“Potential export industry”
Perpetual executive chairman Julian Babarczy said, “We thank Mid West Ports for their professionalism and commitment to exploring ways to facilitate additional export tonnes from Geraldton Port.
"We see Beharra as ideally positioned to play a pivotal role in an exciting new potential export industry for Western Australia and the Mid West Region.”
Perpetual Resources is a focused explorer of silica sands, aiming to produce high purity silica for export to the high growth Asian markets.
Its flagship asset, the the Beharra Project, is 300 kilometres north of Perth and 96 kilometres south of the port town of Geraldton.
Access to the project from Geraldton to the north and Perth to the south is via the sealed Brand Highway and then about 8.5 kilometres east on the Mt Adams unsealed road providing access to the centre of the tenure.
About Beharra Project
Beharra comprises a granted mining lease, M70/1406, covering an effective area of 10.4 square kilometres, and a granted exploration licence, E70/5221, covering an effective land area of 56.8 square kilometres.
Extensive heavy mineral sands mining occurs to the south of Beharra, lime sands mining to the west and natural gas production to the south of the project area.
Auger and aircore drilling has confirmed the presence of extensive, high purity silica sands, with a maiden mineral resource estimate completed in July 2020.
A detailed pre-feasibility study demonstrating compelling project economics for Beharra was released to the ASX in March 2021, along with a maiden ore reserve.
Subsequent rounds of bulk metallurgical testing have further improved the potential final product specifications at Beharra.
Silica sands market
Silica sands have an extensive range of uses, with lower purity (<99.5% SiO2) and lower priced applications including construction sand, proppant sand used in well fracturing, and foundry sand.
With increasing purity (>99.5% SiO2) and price, uses include glass making including ultra-clear glass, with a main determinant of the sand’s suitability for specific applications and pricing being the level of the key impurity iron oxide (Fe2O3).
Expansion of solar PV cell manufacturing capacity globally is driving demand for silica sand with Fe2O3 content of <200ppm and lower, which is a key focus market for Beharra.
Independent market assessments have calculated a 40 million tonnes per annum incremental market growth opportunity for the high growth Asian markets through to 2026.