Heavy Minerals Targets Up to 50Mt Garnet at Kanmantoo, Eyes Funding Boost
Heavy Minerals Limited has defined a substantial garnet exploration target at the Kanmantoo site in South Australia, estimating up to 50 million tonnes grading 17-25% garnet. The company is advancing metallurgical testing and funding discussions, positioning for a near-term investment decision.
- Exploration Target of 30-50 million tonnes at 17-25% garnet grade
- Includes fresh tailings and tailings storage facility material from Kanmantoo Copper Mine
- Metallurgical testing confirms high-grade industrial garnet product
- Funding negotiations underway with debt and royalty providers
- Financial Investment Decision anticipated soon, with pre-feasibility study pending
Defining the Kanmantoo Garnet Potential
Heavy Minerals Limited (ASX:HVY) has announced a significant exploration target for garnet at its Kanmantoo project in South Australia. The company estimates between 30 and 50 million tonnes of material grading 17% to 25% garnet, translating to 5.1 to 12.5 million tonnes of contained garnet. This target encompasses both fresh tailings from the Hillgrove Resources copper concentrator and the existing tailings storage facility (TSF), marking a promising resource base for industrial mineral extraction.
From Tailings to High-Grade Garnet Product
Extensive metallurgical testing has been conducted, including bulk sampling and mineralogical analysis by respected institutions such as the University of Queensland’s Sustainable Minerals Institute and CSIRO. These studies confirm the garnet concentrate produced is of high grade and suitable for industrial applications like waterjet cutting. Recovery rates of around 70% have been achieved, with ongoing work to optimise processing and reduce losses, particularly in fine slimes.
Strategic Funding and Commercial Progress
Executive Chairman Adam Schofield highlighted that Heavy Minerals is actively engaging with multiple debt and royalty funders to secure project financing. The company is also pursuing distribution agreements, having met with garnet distributors and end users at the recent AMPP conference in Houston. These commercial steps are critical as Heavy Minerals aims to make a Financial Investment Decision (FID) shortly, contingent on funding and off-take arrangements.
Exploration and Validation Ahead
While the exploration target is robust, it remains conceptual under the JORC Code, with further drilling planned over the next 12 months to validate the resource and refine grade estimates. The company is preparing detailed exploration activities, including drilling of the TSF, to better define the deposit’s extent and quality. This work will underpin the forthcoming pre-feasibility study (PFS), expected to provide more detailed economic and operational insights.
Positioning for Long-Term Value
Heavy Minerals’ Kanmantoo Garnet Project leverages existing infrastructure and tailings from an established copper operation, potentially enabling a long-life, low-cost industrial mineral venture. The combination of a sizeable exploration target, positive metallurgical results, and advancing commercial discussions positions the company well to unlock shareholder value. The market will be watching closely as the project progresses through critical milestones in exploration, funding, and feasibility.
Bottom Line?
Kanmantoo’s garnet potential is taking shape, but upcoming drilling and funding will be the true tests of Heavy Minerals’ next phase.
Questions in the middle?
- Will further drilling confirm a JORC-compliant Mineral Resource at Kanmantoo?
- How soon can Heavy Minerals secure funding and formalise distribution agreements?
- What will the upcoming pre-feasibility study reveal about project economics and scalability?
