Hillgrove and Heavy Minerals sign garnet tailings processing agreement

Hillgrove Resources and Heavy Minerals person signed a tailings processing statement to extract and merchantability garnet from the Kanmantoo process tailings and tailings retention installation (TSF) successful South Australia.

The statement is designed to make income for Hillgrove and widen the operational beingness of the Kanmantoo TSF.

Under the presumption of the agreement, Hillgrove volition person gross gross payments (GRPs) of 15% from the in-specification garnet merchantability during operations astatine the mine, which volition trim to 5% aft its closure.

Additionally, the institution volition person $25/t for out-of-specification garnet that volition beryllium utilized by Heavy Minerals.

A minimum GRP of $500,000 (A$720,088) per annum has been guaranteed by Heavy Minerals erstwhile accumulation of garnet begins, expanding to $1m erstwhile accumulation reaches 100,000t per annum (tpa).

Hillgrove volition besides person an archetypal outgo of $50,000 upon execution of the agreement, followed by $150,000 astatine the last concern decision.

On completing Hillgrove’s mining operations, Heavy Minerals whitethorn usage the TSF for further extraction of garnet, and presume the remaining and related tract rehabilitation obligations, which is taxable to the agreement.

Furthermore, Heavy Minerals volition conception arsenic good arsenic run a garnet processing works astatine Hillgrove's Kanmantoo copper excavation to retrieve garnet from the existing process stream.

Hillgrove CEO and managing manager Bob Fulker said: “This statement delivers aggregate benefits to Hillgrove shareholders. It provides a caller income stream, extends the beingness of our TSF, and importantly, has the imaginable to transportation rehabilitation obligations to Heavy Minerals station Kanmantoo closure.”

Garnet, a specialised concern mineral, is utilized successful h2o pitchy cutting and different abrasive applications.

Heavy Minerals is expected to nutrient up to 50,000tpa for the archetypal 3 years, which volition summation to 100,000tpa successful 4th year.

In October 2024, Hillgrove secured a A$10m standby indebtedness installation with Freepoint Metals and Concentrates to heighten operations astatine the Kanmantoo copper mine.

"Hillgrove and Heavy Minerals motion garnet tailings processing agreement" was primitively created and published by Mining Technology, a GlobalData owned brand.

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