Suvo Strategic Minerals Ltd (ASX:SUV) has signed a land access agreement, paving the way to accelerate exploration at its wholly-owned Eneabba Silica Sand Project in Western Australia.
The deal with private landowner Indian Ocean Farms Pty Ltd allows Suvo to occupy the land east of its granted tenure, which contains Eneabba’s maiden, inferred 216-million-tonnes silica sand resource.
A previous surface sampling mission on the boundary of the private land returned upwards of 99% silicon dioxide, and there’s sufficient power and water infrastructure to support a silica sands project down the line.
Ultimately, the agreement builds certainty ahead of Suvo’s upcoming drill program, which is slated to kick off in quarter four this year in a bid to establish a JORC-compliant indicated resource at Eneabba.
Work is scheduled to commence as soon as the explorer’s program of works is granted, and Suvo also plans to advance talks above and below rail operators and the Midwest Port Authority.
“WA’s first large-scale, sustainable silica sand operation”
Suvo executive chairman Henk Ludik said: “We are excited to be making progress at Eneabba, at a time when demand for sustainably sourced sands is outpacing supply.
“To have access to existing infrastructure already in place that has the potential to fast-track studies is an excellent outcome for our shareholders.
“Development of WA’s first large-scale, sustainable silica sand operation remains a key strategy of the company.
“An operation of this size will create much-needed employment opportunities in the region. This is in line with the government’s commitment to the region, as evidenced by funding provided to Iluka’s adjacent project.
“We look forward to providing further updates once drilling commences.”
The ground covered under the agreement is currently used for agricultural purposes. It boasts road access, three-phase power and water infrastructure and is near a rail line that connects directly to Geraldton Port.
What’s next?
Suvo’s upcoming drilling campaign will help it obtain bulk samples and send these to various end-users for further metallurgical test-work.
These results will help define end-user product specifications and potential product pricing, allowing the company to fast-track potential offtake discussions.
Once the drilling program is complete, Suvo plans to kick off study work to facilitate a mining licence application. In turn, the infrastructure already in place could help expedite feasibility studies.
If the silica sands stock declares an economically viable resource, Suvo will explore its access options with Indian Ocean Farms to determine how a mining operation and the current infrastructure will fit into its vision.