Heavy Minerals Garnet Project Targets 12.5Mt at Kanmantoo

Heavy Minerals Limited (ASX: HVY) has announced a substantial Exploration Target at South Australia's Kanmantoo deposit, positioning the company to capitalise on growing industrial garnet demand. The Heavy Minerals garnet project encompasses 30Mt to 50Mt grading between 17% to 25% garnet, containing a remarkable 5.1Mt to 12.5Mt of garnet material.

This strategic announcement comes as Heavy progresses discussions with multiple debt and royalty funders whilst preparing for crucial meetings with garnet distributors and end-users at the upcoming AMPP conference in Houston. Executive Chairman Adam Schofield emphasised the project's potential for generating "significant and long-term value" with even the lower resource estimates supporting a long-life operation.

Furthermore, the company has been allocated area within processing plant and concentrate storage shed, providing immediate infrastructure advantages that reduce capital requirements for the Heavy Minerals garnet project.

Breaking Down the Kanmantoo Opportunity

The Exploration Target comprises two distinct sources that provide operational flexibility and extended mine life for the development:

Tailings Storage Facility (TSF):

• 15Mt to 25Mt of existing tailings
• Grade range: 17% to 25% garnet
• Contains: 2.6Mt to 6.3Mt of recoverable garnet

Fresh Tailings Stream:

• 15Mt to 25Mt from ongoing Hillgrove copper operations
• Grade range: 17% to 25% garnet
• Contains: 2.6Mt to 6.3Mt of recoverable garnet

Moreover, this dual-source approach provides operational flexibility, allowing Heavy to process fresh tailings whilst Hillgrove continues copper operations, then transition to TSF processing once copper extraction concludes.

Understanding Almandine Garnet: The Industrial Powerhouse

Almandine garnet represents one of the most valuable industrial abrasives in modern manufacturing. This iron-aluminium silicate mineral offers superior hardness (7-8 on the Mohs scale) and exceptional cutting performance, making it indispensable for waterjet cutting applications.

Key Properties of Almandine Garnet:

• Premium hardness: Rates 7-8 on the Mohs scale, providing exceptional durability
• Sharp angular structure: Creates clean, precise cuts in waterjet applications
• Chemical stability: Resists breakdown under high-pressure cutting conditions
• Recyclability: Can be reused multiple times, reducing operational costs

The geological setting at Kanmantoo is characterised by metamorphism and mineralising fluids that naturally concentrate garnet alongside copper mineralisation. In addition, this unique opportunity allows extraction of valuable industrial minerals from what were previously considered waste products.

Market Advantages Drive Premium Pricing

The Heavy Minerals garnet project benefits from several competitive advantages:

• Premium pricing: Natural almandine garnet commands higher prices than synthetic alternatives
• Growing demand: Waterjet cutting market expanding across aerospace, automotive, and construction
• Limited supply: Quality natural garnet sources are geographically concentrated
• Proven performance: Kanmantoo garnet successfully tested on CSIRO's industrial waterjet equipment

Robust Technical Foundation Supports Commercial Viability

Heavy's Exploration Target builds on extensive technical studies spanning over a decade, providing a solid foundation for development:

Historical Validation (2013-2015):

• G&T Canada identified garnet concentrations of 17.4% to 24.4% in monthly composite samples
• Bureau Veritas confirmed 17% almandine garnet through quantitative X-ray Diffraction analysis

Recent Breakthrough Studies (2024-2025):

• University of Queensland study showed 25-28% garnet (average 26%) via X-ray Diffraction analysis
• QEMSCAN analysis indicated even higher concentrations of 33.8% to 40% (average 37%)
• Heavy's 12-tonne bulk sample demonstrated 70% garnet recovery using standard physical separation

However, the most significant validation comes from successful industrial testing, where Kanmantoo garnet demonstrated commercial-grade performance on CSIRO's Technijet waterjet cutting system.

What Makes the Metallurgical Success So Important?

The company's metallurgical testing programme achieved significant milestones that validate commercial viability:

Processing Results:

• Successfully removed +2mm oversised material (only 0.5% of feed)
• Eliminated 22.4% slimes fraction through screening
• Achieved 37% garnet in heavy mineral concentrate from 19% feed grade
• Delivered 70% overall garnet recovery through gravity separation and magnetic concentration

For instance, these results demonstrate that conventional processing methods can efficiently extract high-quality garnet from existing tailings materials. Furthermore, the 70% recovery rate compares favourably with industry standards and supports robust project economics.

Strategic Timeline Positions Heavy for Near-Term Success

The company has outlined an aggressive development schedule targeting rapid commercialisation:

Immediate Priorities (Next 6 months):

1. Funding Completion: Finalising discussions with debt and royalty funders
2. Distribution Agreements: Executing MOUs with garnet distributors following Houston meetings
3. Financial Investment Decision: Board approval expected pending funding and distribution deals

Operational Milestones (12-18 months):

1. TSF Drilling Programme: Comprehensive drilling to validate exploration targets
2. Pre-Feasibility Study Release: Highly anticipated PFS to quantify project economics
3. Processing Infrastructure: Utilising allocated space within Kanmantoo's existing plant facilities

However, the most critical milestone remains the completion of funding discussions and distribution partnerships, which management expects to conclude following the Houston conference meetings.

Long-term Development Strategy

The Heavy Minerals garnet project development follows a phased approach:

• Phase 1: Process fresh tailings from Hillgrove's ongoing copper operations
• Phase 2: Transition to TSF processing once copper operations conclude
• Expansion: Potential for Heavy to become primary mine operator

Investment Thesis: Why Kanmantoo Represents Exceptional Value

Heavy Minerals has positioned itself at the intersection of industrial mineral demand growth and strategic resource availability. The project offers several compelling investment advantages:

Immediate Cash Flow Potential:

• Existing processing infrastructure reduces capital requirements
• Fresh tailings provide immediate feedstock without mining costs
• 70% recovery rates proven through metallurgical testing

Long-term Resource Security:

• 5.1Mt to 12.5Mt of contained garnet supports multi-decade operations
• TSF provides additional 15Mt to 25Mt of processing material
• Hillgrove's continued drilling may expand fresh tailings availability

Nevertheless, the most compelling aspect remains the combination of proven metallurgy with existing infrastructure, significantly reducing development risk compared to greenfield projects.

Project Infrastructure and Operational Advantages

The Heavy Minerals garnet project benefits from substantial existing infrastructure at the Kanmantoo site:

Existing Infrastructure:

• Heavy has been allocated area within processing plant and concentrate storage shed
• Processing facilities already operational for copper extraction
• Established site access and utilities
• Proven processing capabilities for similar materials

Feed Material Sources:

• Fresh Material: Based on Hillgrove's Mineral Resource of 22Mt and Ore Reserves of 4Mt
• Future Expansion: Hillgrove conducted over 69,200m of drilling in 2025, with only 29,377m incorporated in resource upgrade
• Continued Exploration: Hillgrove planning additional 63,000m of drilling in 2026

In addition, the TSF contains approximately 27Mt of processed material accumulated since 2011, providing a substantial secondary resource for garnet extraction.

How Does the Infrastructure Advantage Impact Economics?

The existing infrastructure provides several economic advantages:

• Reduced Capital Expenditure: No requirement for new processing facilities
• Operational Synergies: Shared utilities and maintenance with copper operations
• Immediate Processing Capability: No construction delays or permitting requirements
• Proven Technology: Processing methods already validated at site

Technical Validation Through Advanced Testing Methods

Multiple independent studies have validated the garnet content and quality at Kanmantoo using various analytical techniques:

X-ray Diffraction (XRD) Analysis:
This technique identifies crystalline mineral phases and quantifies their abundance. University of Queensland studies using XRD confirmed 25-28% garnet content with an average of 26%.

QEMSCAN Technology:
Quantitative Evaluation of Minerals by Scanning Electron Microscopy provides detailed mineral analysis. QEMSCAN results indicated 33.8% to 40% garnet content with an average of 37%.

However, the most practical validation comes from physical separation testing, where Heavy's 12-tonne bulk sample demonstrated that conventional methods achieve 70% garnet recovery.

Why Multiple Testing Methods Matter

The use of different analytical techniques provides confidence in resource estimates:

• XRD Analysis: Provides accurate mineral identification and quantification
• QEMSCAN Technology: Offers detailed mineral liberation and association data
• Physical Testing: Validates actual processing performance and recovery rates
• Industrial Testing: Confirms end-product quality and market acceptance

Market Timing and Industry Fundamentals

The industrial garnet market is experiencing favourable conditions that support the Heavy Minerals garnet project development:

Growing Market Applications:

• Waterjet cutting expanding in aerospace component manufacturing
• Construction industry increasing use of precision cutting technologies
• Automotive sector adopting waterjet cutting for lightweight materials
• Oil and gas industry utilising garnet for surface preparation

Furthermore, supply dynamics increasingly favour new production sources, particularly those offering consistent quality and reliable supply chains.

Supply Dynamics:

• Limited number of quality almandine garnet sources globally
• Transportation costs favour regional supply sources
• Quality specifications increasingly demanding for industrial applications

Moreover, the combination of growing demand and constrained supply creates favourable pricing conditions for new producers entering the market.

Why Should Investors Follow Heavy Minerals?

Heavy Minerals has assembled the critical elements for industrial mineral success: substantial resource base, proven metallurgy, existing infrastructure, and strategic market positioning. The company's systematic approach from technical validation through to distribution partnerships demonstrates management's commitment to value creation rather than speculative exploration.

The convergence of multiple catalysts including funding completion, distribution agreements, and PFS release positions Heavy for significant re-rating as the project advances toward production. With garnet markets experiencing supply constraints and growing industrial demand, Kanmantoo's 5.1Mt to 12.5Mt of contained garnet represents exceptional leverage to sector fundamentals.

However, the most compelling aspect remains the near-term catalyst potential, with management expecting strong news flow as the Heavy Minerals garnet project continues to progress toward commercial production. The highly anticipated Pre-Feasibility Study release will provide detailed project economics and validate the investment thesis.

In addition, the combination of proven metallurgy, existing infrastructure, and strategic partnerships positions the company for rapid commercialisation in a supply-constrained market, offering investors exposure to both resource development and industrial mineral demand growth.

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