An area in Western Australia’s Mid West usually associated with the mining of heavy minerals could now host one of the country’s next major silica deposits.
During mid-November hydrous kaolin producer and dual commodity explorer Suvo Strategic Minerals Ltd undertook a drilling campaign ‒ consisting of around 75 holes for 2100 metres ‒ at its wholly-owned Eneabba project, where it has already established a maiden inferred JORC resource of 216 million tonnes of silica sands.
Located 300 kilometres north of Perth, the asset comprises four granted exploration licences covering 169 square kilometres.
The target sits on the Eneabba Plain, where the sandy cover is very flat and the outcrop is rare due to the accumulations of windblown and alluvial sand at surface, while below sits a thin hard silcrete (or lateritic claypan) which overlies deep white and yellow sands.
Historically, the area has hosted one of Australia’s longest running mineral sands operations, and at one stage was an integral part of Iluka Resources Ltd’s domestic heavy minerals portfolio.
Interestingly, the mining house, after turning a good portion of its corporate attention to South Australia following the discovery of Jacinth-Ambrosia, is now looking to establish a fully integrated refinery for the production of Eneabba’s separated rare earths oxides.
According to the WA-based Suvo – which listed on the ASX two years ago – its latest drilling campaign will allow the company to obtain bulk samples to send to various end-users that have registered their interest to conduct metallurgical test work.
These activities will take place on privately-owned land, meaning the negation of obtaining native vegetation clearing permits. Previous surface samples have returned grades of up to 99 per cent (plus) silica oxide.
In its announcement to investors, Suvo made two points very clear – its licences had access to road, power and water; plus they were close to a rail line that ran directly to the Geraldton port.
Sample results, the company said, would help define end-user product specifications and potential product pricing, allowing for meaningful offtake discussions.
Following completion of the drilling program and confirmation of product suitability, Suvo plans to start its mining licence application. The existing infrastructure already in place will likely assist in expediting feasibility studies.
Should the company size up an economically viable resource, it said, it and the private landowners would advance discussions allowing access for both mining operations and the current infrastructure.
During the recent RIU Resurgence Conference in WA, Suvo executive chairman Henk Ludik said the resources house believed the silica sand industry would turn into a $30 billion market by 2027 given “the UN have actually raised the alarm about the long term supply, and sustainable supply, of silica sand” and “we use about 50 billion tonnes of the commodity per annum.”
Furthermore, it was currently the “third highest valued illegally traded commodity on the face of the planet”.
“It really is one of those sectors where, specifically under the ESG (environmental social governance) principles, the world will take a closer look at where you source your sustainable silica sands from,” Ludik noted.
“ESG is something that we live and breathe by, not something that we necessarily only talk about, so we have a committee that oversees everything we do from an ESG perspective.
“We’ve started upgrading all of our practices and our policies – we have started working with renewable energy companies to look at how we can reduce our emissions footprint.”
