Heavy Minerals Ltd Signs Offtake Agreement To Supply Garnet From The Port Gregory Project

Heavy Minerals Ltd (ASX:HVY) is beginning to attract market interest after signing a non-binding MOU to supply a minimum of 15,000 tpa of garnet from Port Gregory in Western Australia.

The Port Gregory Project is a 226 sq km Western Australian tenement package 100% owned by Heavy Minerals.

The project contains a JORC Resource of 166 million tonnes @ 4.0% (THM) with 5.9 Mt of Contained Garnet.

A recent Scoping Study revealed a 16 year mine life, a net present value (NPV) of $253 million and a capital cost of $110 million.

This offtake for Australia and New Zealand will account for approximately 10% of the company’s annual future garnet production.

The MoU was signed with Abrasive Blasting Service & Supplies.

Supply side challenges from garnet producers in India, Australia and U.S. provide a pathway for garnet produced from Port Gregory.

Planned production from Port Gregory will contribute <1% to the global blast media market and <10% to world garnet production in 2026.

First production is scheduled for 2027.

Garnets are used for industrial blast-cleaning, polishing, filtration and water jet cutting.

A waterjet cutter produces a high-pressure jet of water with garnet and other abrasive grains in it.

When the jet is aimed at a piece of metal, ceramic, or stone, it cuts the material producing very little dust.

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