Allup Silica Limited has acquired the McLaren project
Allup has announced the acquisition of a heavy mineral sands project. The company has acquired a 100% interest in the McLaren Project, located in Washington State, Australia. The deal includes a payment of N$150,000 and a 1.5% royalty to vendors. In addition, options and shares will be issued upon completion of the feasibility study.
The acquisition is significant for Allup. Experts estimate the mineral resources of the deposit at 280 million tonnes. The heavy metal content is 4.8%. This will allow for the in-situ mining of approximately 13.5 million tonnes of heavy metals by the time the project is completed in 2022. For the company, the McLaren project is an excellent opportunity to strengthen its position in a new market. Previously, the company focused on mining other types of sand. The production and washing processes for ilmenite are now similar to those for silica sand.
According to Allup director Andrew Haythorpe, the new deposit has several advantages. These include near-surface mineralisation and low stripping ratios. The cost of heavy mineral sands on the world market is relatively high, and the volumes shipped are small. As a result, the company intends to maximise profits at an optimum cost ratio.
Project benefits
The field is in Western Australia. Its climate allows drilling to take place at any time of the year, eliminating downtime. In this way, it is possible to establish a smooth production process and increase production volumes. The company intends to commence infill drilling in the near future. This will enable a feasibility study to be carried out and further action to be planned.
Project characteristics:
– the field comprises a dense development area of 333 square kilometres;
– located 150 kilometres from Norseman;
– the property is considered to have potential for expansion not included in the current resource analysis;
– life extension is possible with additional drilling.
McLaren is rich in ilmenite, a titanium mineral. Its value is about US$300 per tonne, which is higher than the prices of silica and kaolin. The reason for this is the shortage of titanium, which is getting worse every year. At the same time, demand for the mineral is growing, which only exacerbates the problem. The closure of mines in crucial mining regions is contributing to the shortage. In recent years, a number of operations have ceased in Kenya, Mozambique and South Africa. As a result, the supply of minerals to the global market has been significantly reduced.
In this context, the acquisition of the deposit is highly advantageous. In addition, Allup is seeking to optimise its production processes. To this end, the company intends to use bulk mining. This method will reduce capital expenditure and allow production to be ramped up quickly.
