Company
ASX:PEC
Perpetual Resources Ltd is an ASX-listed company focused on the discovery and development of high-quality critical mineral assets across prospective jurisdictions, including Brazil's globally significant "Lithium Valley" in Minas Gerais and emerging opportunities in the United States. The company holds a portfolio of strategically located exploration ground positioned near established industry operators.
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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.
A Private Land Access Agreement with the dominant landowner at Beharra West will enable PEC to explore and appraise the tenement and outline the key working parameters for any future production scenario, should the project progress.
“Our ongoing optimisation work, which was substantially progressed through the delivery of the recent exciting white sand only bulk metallurgical test result, has demonstrated that a development scenario that targets the white sand horizon
Given these positive results, the company will progress offtake discussions and negotiations in earnest.
"The agreement confirms the strong working relationship between Perpetual Resources and the Yamatji Southern Regional Corporation, with both parties actively exploring additional economic improvement initiatives."
Perpetual has signed what it describes as a “groundbreaking” option lease agreement with Yamatji Southern Regional Corporation, providing access to the water requirements of the Beharra high-grade silica sand project for an initial 10-year
Its Beharra Project could become “the leading mid-west silica sand project” and a key player in the emerging silica sand export industry for Western Australia.
The scoping study comes off the back of significant interest from an unnamed offtake partner, which believes Perpetual’s sand could be suitable for DSO sales.
The June 2021 drilling was confined to the most southern area of the exploration licence and covered an area of around 300 hectares.
The bulk program results will be incorporated into the upcoming PFS update, which, pending a successful outcome of the bulk program test work, will contemplate a white sand only mining and processing scenario.
The company has been granted the Arrowsmith West Exploration Licence, just 3.2 kilometres west and immediately south of Beharra, by the Western Australian Department of Mines, Industry Regulation and Safety.
The company now plans to rapidly assess the land package to determine its geological and economic potential.
The certainty of tenure clears the way for further development of the Beharra Project, which the company believes has the potential to become the leading Mid-West export silica sand project with the lowest known impurity profile.
The company’s shares will remain halted until the start of trading on Tuesday, June 22, or when an announcement is released to the market.
The program targeted the premium, high-value white sand horizon, with results aimed at delineating a reserve classification for the first 10 years of white sand only production.
The aim of drilling program is to define a white sand only resource and reserve covering the first 10 years of mine life at Beharra.
The company’s MOU with China-based C&D Group Co Ltd contemplates the purchase of 600,000 tonnes per annum of high-grade silica sand from the Beharra Project.
C&D Group is a supply chain logistics focused company actively sourcing raw materials for sale within China and also for provision to other C&D Group companies.
Negotiations around final product attributes, product pricing and payment terms will progress in coming months.
A drill program and follow-on feasibility-study-level bulk metallurgical testing program is expected to begin imminently.
