Suvo Strategic Minerals Ltd (ASX:SUV) has started resource drilling on cleared private land adjacent to granted tenure that contains the Eneabba Project maiden inferred JORC resource of 216 million tonnes of silica sand.
The drilling campaign at the Western Australia project will consist of around 75 holes for a total of 2,100 metres and will be completed within a week.
This cleared area of about 250 hectares negates the need for environmental clearing permits, and with key infrastructure already available, project timelines may be significantly reduced.
The land is currently used for agricultural purposes and has infrastructure including:
- road access, 3-phase power and water; and
- rail line direct to Geraldton Port (about 2 kilometres from the western boundary of E70/5001).
Resource extension potential
Executive director Aaron Banks said: “We are very excited to be drilling this part of our granted tenure.
"Rarely are you afforded this level of infrastructure directly adjacent to the company’s previously announced 216 million tonnes inferred resource.
"We believe there is great potential in extending the resource into an area that could significantly reduce the timeline and pathway to production. We look forward to updating the market in due course.”
Previous surface samples gathered by Suvo on tenement E70/5001 on the boundary of the private land returned up to 99% + SiO2.
This resource drilling campaign will allow Suvo to obtain bulk samples and send these to various end-users who have already registered their interest for metallurgical test-work.
Sample results will assist to define end-user product specifications and potential product pricing, allowing for meaningful offtake discussions.
Path to Mining Licence application
Following completion of the drilling program and confirmation of product suitability, Suvo plans to commence study work to facilitate a Mining Licence application.
The existing infrastructure in place will likely assist in expediting feasibility studies with sufficient power and water available to support the development of a silica sand project.
Should the company form up an economically viable resource, Suvo and the private landowners will advance discussions allowing access to the tenement for mining operations.
Suvo continues to progress discussions with infrastructure providers, rail operators and the Midwest Port Authority, all of which are critical to ensuring the company is well placed in its pursuit towards the potential development of a silica sand operation at Eneabba.