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West-Australian focused microcap Allup Silica Ltd (ASX:APS) has seen its share price jump almost 11% on news it has acquired the McLaren Valuable Heavy Mineral Sands (VHMS) project in the West Eucla Basin, which carries a mineral resource estimate (MRE) of 280 million tonnes at 4.8% heavy mineral near the surface.
At 12:16 AEST, Allup shares were trading at 4.1 cents, a rise of 10.81% since the market opened.
McLaren – located 150 kilometres east of Norseman – is a project comprised of 333 square kilometres of tenements, and its MRE is in the indicated and inferred categories, with potential for the figure to be extended through inclusion of additional results.
Allup paid $150,000 in cash for these tenements, as well as granting a 1.5% Royalty to the vendors, Westover Holdings Pty Ltd and Wild Side (WA) Pty Ltd.
Additionally, the company is undertaking a placement to the value of $360,000 (before
costs) through the issuing of 9,000,000 shares to sophisticated, professional and institutional investors at four cents per share.
Of particular interest to Allup in taking on this project is the presence of key titanium mineral, ilmenite, at McLaren, with the company stating that it is ‘priced well above international silica and kaolin prices at more than US$300/t due to increasing titanium shortages’.
Managing Director Andrew Haythorpe also highlighted the promising nature of McLaren as a project that could help the company move quickly into production.
“Albeit a different sand, the mining and washing processes for ilmenite are similar to silica
sand, as well as the near-surface mineralisation and low strip ratios,” he said.
“However, the higher product price and lower shipping volumes present a compelling opportunity for development.
“Because of the previous work completed and the increasingly high value of titanium minerals, this opportunity presents a faster and higher confidence pathway for Allup Silica and its shareholders.
“Infill drilling and further metallurgical work is planned to commence as soon as practicable so that we can advance a Pre-Feasibility Study and move onto a Bankable Feasibility Study for the project.”
