THE BOURSE WHISPERER: Mineral sands exploration play Sheffield Resources has announced a maiden Inferred Resource of 4.4 billion tonnes at 1.2 per cent heavy minerals (HM) for 53 million tonnes of contained HM at the company’s McCalls heavy mineral sand (HMS) project.
The McCalls project is located 110 kilometres north of Perth near Gingin in Western Australia.
Location of McCalls project. Source: Company announcement
The company said the mineral resource had far exceeded its expectations in terms of size and the contained tonnages of zircon and ilmenite.
“The key feature of the deposit is that it contains over 40 million tonnes of chloride grade ilmenite,” Sheffield Resources managing director Bruce McQuitty said in the company’s announcement to the Australian Securities Exchange.
“As such it ranks as one of the largest accumulations of chloride grade ilmenite in the world.
“We regard McCalls as a strategic asset with potential to deliver a consistent long term supply of feedstock for chloride route or synthetic rutile processing.
“This sizable maiden Resource at McCalls, together with our large-scale zircon-rich Dampier project and a growing (HMS) resource base at Eneabba, firmly positions Sheffield as a fast-emerging and significant Australian mineral sands company.”
The announcement of the McCalls Inferred Mineral Resource follows the company’s recent placement of $10 million to institutional and sophisticated investors.
The company said the funds from that placement would underpin its exploration programs for 2012 and beyond.
The majority of these funds will be used to progress the Dampier Zircon project and the advanced Eneabba project.
The company said it will also undertake further drilling, mineral assemblage and scoping work at McCalls.
This work will focus on gaining a better understanding the distribution of the high value minerals zircon and rutile and definition of higher-grade zones.