Perpetual Resources Ltd (ASX:PEC) has completed a high priority bulk testing program, analysing the various white sand subdomains at its flagship Beharra Silica Sand Project in Western Australia with shares trading higher.
The silica sands explorer finished the final test-work stages for the Upper White (UW) and Lower White (LW) sub-domains, including feed preparation, magnetic separation, spirals and up current classification.
Notably, testing is targeting the identification of high-grade sub-domains with low impurity profile, for a target end product that would suit the rapidly growing PV solar cell glass covering market.
UW and LW sub-domains are anticipated to produce the highest product specification at Beharra, with fast-tracked test-work now complete and finished product sent for independent laboratory assay.
“Significant milestone”
Perpetual Resources executive chairman Julian Babarczy said: “The finalisation of full flow sheet testing for the Upper and Lower White sub-domains is a significant milestone for our company and we now eagerly await the final product assays in the coming weeks.
“Our offtake outreach program has gained significant momentum in recent weeks, with a number of large glass manufacturers and other low impurity sand end users and trading groups expressing a keen desire to receive our final results and samples.
“With PV-solar cell manufacturing expected to undergo substantial growth in coming years in response to global decarbonisation efforts, our strategy is to steadfastly align our product quality and sales efforts to this strong tailwind.
“We look forward to updating shareholders in coming weeks with additional information.”
Shares are 11.63% higher to $0.048 intraday.
Upper white sub-domain undergoing spiral testing.
High purity silica sands
Perpetual had confirmed the presence of extensive, high purity silica sands, with a maiden mineral resource estimate (MRE) completed in July 2020.
A detailed pre-feasibility study (PFS) demonstrating compelling project economics for Beharra was released in March 2021, along with a maiden ore reserve.
Subsequently, rounds of bulk metallurgical testing have further improved the potential final product specifications at Beharra.
Forward plan
Assay turnaround is expected within 2-3 weeks as well as final product samples to be shipped to interested end-users.
After receiving final product assays, Perpetual will then ship significant quantities of end product samples to potential offtake partners for end-user testing, which is an essential step in the process of progressing offtake discussions.
The company is already in dialogue with a significant number of interested groups who are awaiting final results and samples.
Further testing continues on other sub-domains with results to follow in due course.
Silica sand market
Perpetual is targeting the high growth Asia Pacific silica sand markets, where independent market assessments have calculated a 40 million tonnes per annum incremental market growth opportunity through to 2026.
Significant expansion of solar PV cell manufacturing capacity globally is driving demand for silica sand with iron oxide content of <200ppm and lower, which is a key focus market for Beharra.
Silica Sands market
About the company
Perpetual Resources is a focused explorer of silica sands, aiming to produce high purity silica for export to the high growth Asian markets.
The company’s flagship asset, the Beharra Project is 300 kilometres north of Perth and 96 kilometres south of the port town of Geraldton in Western Australia.
The port of Geraldton is an established bulk material handling facility and is currently utilised for the export of bulk materials, minerals, grain and concentrates.
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.