Accent Resources strengthens dry-processing case at Magnetite Range

Dry flowsheet clears another technical hurdle

Accent Resources NL (ASX:ACS) has put its water-saving processing route at the centre of its Magnetite Range strategy, with independent testwork producing final iron concentrates grading between 66.3% and 68.0% Fe. The results came from representative samples from the Julia and Robb deposits and are being incorporated into the project’s ongoing pre-feasibility study.

“Accent Resources Magnetite Range Tenement Location Plan.”

Testing by Central South University achieved up to 46% mass rejection of barren gangue at a coarse 3-millimetre particle size while retaining magnetic iron recoveries above 97%. Follow-up bench-scale work by LONGi on material ground to about 75 microns delivered the 66.3% to 68.0% Fe concentrates, with combined magnetic iron recovery of 98.21% across the tested composites. The company says the route could reduce water demand and processing costs, although the work remains part of the technical and economic assessment rather than a production-scale demonstration. The result builds on the September dry testwork results, which were described as preliminary and still requiring pilot-scale and economic validation.

Magnetite Range drilling moves from study to fieldwork

“Magnetite Range Project’s planned drilling locations”

The next test for the project is now being conducted in the ground. A 11,568-metre reverse-circulation drilling campaign began in October, after the reporting quarter, with 8,568 metres allocated to infill drilling across the magnetite resource and 3,000 metres aimed at gold exploration along structural corridors linked to historical workings.

Accent’s current Magnetite Range resource stands at 523.3 million tonnes grading 31.3% Fe, including 106.3 million tonnes in the Measured and Indicated categories and 417.0 million tonnes classified as Inferred. The infill campaign is intended to support a possible upgrade of some Inferred material to Indicated, but the filing does not provide drilling results or say how much material could ultimately be reclassified.

Norseman sale narrows the portfolio without surrendering all upside

Accent is also clearing the operational decks. Under binding agreements with Boomerang Mining Capital, the Norseman Gold Project is being sold for up to A$4.0 million in cash, comprising A$3.0 million payable at settlement and a further A$1.0 million conditional on the mining lease application and required commercial gold mining approvals. No material exploration was undertaken at Norseman during the quarter while the transaction progresses.

The divestment does not remove every link to the tenements. Accent says it will retain 100% of the iron ore and platinum group element rights across the Norseman footprint, as well as a 4% gross revenue royalty on minerals produced other than iron ore and PGEs. Boomerang has an option to buy half that royalty for an additional A$4.0 million. The structure follows the Norseman project sale agreement, but the full consideration remains conditional rather than an immediate A$4.0 million cash receipt.

Cash supports near-term work but leaves limited room for delay

Accent finished September with A$5.505 million in cash, up from A$2.814 million at the start of the quarter. The cash-flow report records A$4.781 million in proceeds from disposal of investments, while operating activities used A$1.306 million and exploration and evaluation spending classified as investing activities totalled A$700,000. On the company’s calculation, those outgoings provide an estimated 2.74 quarters of funding, before any proceeds from the Norseman transaction that have not yet been received.

The balance sheet is therefore adequate for the immediate drilling push on the filing’s stated assumptions, but not a guarantee that the full campaign, study work and future development can be funded without additional capital. The report also records A$929,000 paid to related parties, including directors’ fees, office rent and interest, while the Appendix 5B lists total financing facilities of A$31.125 million but describes two individual loan agreements with lower stated amounts. That facility presentation is a point investors may want clarified as the company advances from metallurgical testing towards a development decision.