Harts Range Garnet Project

Australian Abrasive Minerals Pty Ltd (Administrators Appointed) (AAM) has appointed PCF Capital Group (PCF) to seek indicative offers for the acquisition, or such other arrangement to the satisfaction of AAM, of the Harts Range Garnet Project (Harts Range or the Project).

Located in Australia’s Northern Territory, the Project comprises the Spinifex Bore Mine, Fine Screening Plant and Wet Concentrator Plant (the Mine Plants), located ~140km north-east of Alice Springs, and the Mineral Separation Plant located ~33km north of Alice Springs in Wamboden.

Project highlights include:

8-10 year Mine Schedule to mine 23Mt at 5.1% garnet for 1.2Mt of garnet

Operation includes the mine, processing facilities and infrastructure (water, power and roads) and the capacity to produce 130ktpa garnet

Mineral Leases with all necessary operating permits and approvals

Dry and ‘free digging’ ore with no overburden means low-cost surface mining with standard excavators and dump trucks

Potential to extend mine life by 20 years with Inferred Resources of 45Mt at 5.9% garnet for 2.6Mt of garnet

Primary Contact Person: Antoine Darque
Company Name: PCF Capital
Telephone Number: +61 (0)8 9486 7111

The Project has been the subject of detailed exploration and evaluation since the early 1990s by several parties including Australia’s only other garnet producer, Western Australia based, GMA Garnet Pty Ltd, Chambigne Garnet Pty Ltd and Olympia Resources Ltd (Olympia).

Initial exploration conducted by Olympia between 2002 and 2009 identified garnet-rich sands within paleochannels, a sequence of longitudinal dunes and within the channels and floodplains of the Aturga Creek, Ongeva Creek and the Plenty River. In 2009 Olympia estimated total inferred resources of 52Mt at 7.7% garnet within the identified areas of the Project tenements, having previously identified sufficient water sources and confirming the ability for wet processing of garnet.

AAM acquired all of the assets that comprise the Project from Olympia in April 2010. Since then AAM has completed an extensive work program that identified one of the largest garnet deposits in the world at Spinifex Bore located within ML28614. In 2015, AAM commenced Project development with first garnet produced in 2016.

The Project hosts JORC 2004 Measured Resources which supports an initial mine life of 8-10 years at Spinifex Bore Mine (SBM). Inferred Resources within 10km of the SBM could extend the mine life by a further 20 years. Additionally, there are the Aturga Resources of 98Mt at 6.2% garnet, 27km west of the SBM within ML23868 which are not included in the attached table

The Project comprises two Mineral Leases (ML23868/ML28614) and two Mineral Exploration Licences (EL24360/EL28696) which cover ~73km2 and 228km2 respectively.

The Project garnet deposit is located in the ancient floodplains and paleochannels of the Plenty River within 5km of the Spinifex Bore sites. The paleochannels adjacent to the Plenty River are abandoned channels of the modern drainage system and contain significant deposits of heavy mineral. The floodplain is composed of gravel, sand and silt and contains significant deposits of heavy mineral.

These ancient floodplains and paleochannels have been shown to be homogeneous over the target area with the heavy mineral component consistently averaging 23% of the sand fraction. The heavy mineral consistently contains 22% garnet with consistent particle size range throughout the mining area.

The surrounding tenement area has substantial garnet exploration potential which is anticipated to be of similar grading. Exploration of adjacent deposits has identified Inferred Resources of 45Mt at 5.9% garnet containing 2.6Mt of garnet which has the potential to extend mine life by 20 years.

During the commissioning phase, 1,750 tonnes of varying grade garnet products were produced. Feedback from early purchases of the garnet has been positive.

The Project comprises the Spinifex Bore Mine, Fine Screening Plant and Wet Concentrator Plant (the Mine Plants), located ~140km north-east of Alice Springs, and the Burt Plain Mineral Separation Plant located ~33km north of Alice Springs in Wamboden.

Project water is sourced from an aquifer via two established bore fields located approximately 3–5km from the Mine Plants, supplying 50m3/h, which meets the net process demand. Instantaneous bore field capacity is materially higher, and the Project is permitted to use 75m3/h.

Other existing infrastructure within or associated with the Project include:

Access roads
Established power
Employee mining camp
Proximity to rail networks

AAM has the below key Project approvals:

Mining and Indigenous Land Use Agreement negotiated with the Central Land Council on behalf of the traditional owners
Approved Mining Management Plan
Sacred Site Clearances have been completed by both Central Land Council and Aboriginal Areas Protection Authority