Astro Resources delivers 50% increase in indicated resources at Governor Broome Heavy Mineral Sands Project
Proactive Investors
Published Sep 19, 2022 13:05
Updated Sep 19, 2022 13:30
Astro Resources delivers 50% increase in indicated resources at Governor Broome Heavy Mineral Sands Project
Astro Resources NL (ASX:ARO) has revealed a significant increase in indicated resources to 78 million tonnes at 4.8% THM (total heavy minerals) at its Governor Broome Heavy Mineral Sands Project in Western Australia.
The updated resource represents a 50% increase in Governor Broome’s total indicated resource compared with the previous indicated resource of 52 million tonnes announced in November 2021.
Governor Broome Project Resources – at 2% HM (heavy minerals) lower block-cut-off grade.
Astro chairman Jacob Khouri said: “The increase in Indicated Resources from 52Mt to 78Mt reinforces our view that the Governor Broome Project is a viable Heavy Mineral Sands Project that should be capable of being commercialised in its own right.
“Based on the strength of this result, we will now proceed with metallurgical test work on a bulk sample of ore from the Jack Track deposit, with results from this test work to feed into a Scoping Study to support the development of the Governor Broome Project.”
Governor Broome project resources and licences.
Next steps
Jack Track mineral assemblage
Composite samples of the heavy mineral concentrate (HMC) from the recent drilling are to be processed by Allied Mineral Laboratories (AML) in Perth to determine the HM assemblage of the Jack Track Deposit.
Resources in Jack Track area - blue indicated, orange inferred.
Jack Track bulk test work
A bulk sample was collected during the recent in-fill drill program across the central portion of the Jack Track Deposit by combining ~8kg samples from each metre drilled within the mineralisation.
Those samples that are within the indicated resource are to be combined into a bulk sample that is to be treated by AML, to enable the preliminary development of a process flowsheet and to evaluate the grades and recoveries of the target HM products.
This test work is expected to commence shortly.
Governor Broome Project scoping study
The upgrade of the deposits to indicated resource status and the scheduled test work will enable a scoping study to be carried out into the mining of both the Governor Broome deposits and of the Jack Track deposits.
Jack Track tenement drilling
Astro intends to complete the in-fill drilling of the remaining areas (Jack Track Northwest, Jack Track West and the remaining parts of Jack Track Southwest and Jack Track deposits) in February 2023, the next available opportunity to complete the program.
Lithium joint venture
Astro has entered into a non-binding letter of intent with an unlisted Canadian public company known as Luna Lithium Limited to form a joint venture entity to be called “Galactic Lithium, LLC”.
The parties are currently finalising long-form documentation. Galactic is to be owned 50% by ARO and 50% by Luna.
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The purpose of the joint venture is to source, identify and explore lithium brine and lithium clay assets across the USA.
Astro is to provide the technical skills and support, whilst Luna is expected to provide on-ground management of any projects, together with identification and sourcing of new projects.
Acquisition of Georgina Basin Project and share placement
Earlier in June, Astro signed a deal with fellow ASX-lister Greenvale Mining NL to acquire an 80% stake in the Georgina Basin iron oxide copper-gold (IOCG) project in the Northern Territory.
Astro had also announced a two-staged share placement to assist with ongoing funding.
The company is aiming to raise a total of $1.75 million from the placement, of which $654,683 has been raised under Tranche 1.
$1.1 million remains to be placed under Tranche 2 of the placement, which is expected to be subscribed for as follows.
Diamond spin-off
Astro continues to work on the proposed spin-off of its East Kimberly Diamond project, as part of a collection of other assets to be acquired.
The company’s wholly-owned subsidiary, Argyle Resources Limited is expected to be the spin-off vehicle that will list on the ASX.
Astro has already secured a non-binding option over a number of projects in Western Australia, New South Wales and Brazil.
Following the satisfactory completion of due diligence processes, the company will work towards finalising the relevant acquisition agreements, which will be entered into by Argyle as the acquirer.
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