Port Gregory

Port Gregory — 100% HVY

Port Gregory is HVY’s flagship Alluvial Industrial Garnet Project, located approximately 100 km north of Geraldton in Western Australia. The deposit hosts a JORC Mineral Resource Estimate of 166 Mt @ 4.0% THM for 5.9 Mt of contained Garnet, and the Pre-Feasibility Study has delivered a maiden Ore Reserve of 85.5 Mt at 4.43% THM for 3.3 Mt of contained Garnet.

Geology and resource

The Port Gregory mineralisation occurs as a near-surface heavy-mineral suite hosted in beach, foredune and shallow-marine sediments. The dominant heavy mineral is almandine Garnet, with an economic percentage of ilmenite.

• Inferred Resource: 166 Mt at 4.0% THM for 5.9 Mt of contained Garnet.
• Reported under JORC Code 2012; Competent Person sign-off lodged with ASX.

Pre-Feasibility Study results

The production target and forecast financial information in the Pre-Feasibility Study are underpinned by the Ore Reserve and, to a lesser extent, by Inferred Mineral Resources representing approximately 5.7% of mill feed. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that the production target will be realised.

• Post-tax NPV (real, 8% discount rate): A$322.8 million
• Internal rate of return, post-tax: 47.6%
• Development capital: A$122.1 million
• NPV-to-capital ratio: 2.64x
• Maiden Ore Reserve: 85.5 Mt at 4.43% THM for 3.3 Mt contained Garnet
• Mine life: 24 years
• Life-of-mine EBITDA: A$1.34 billion
• Peak funding requirement: approximately A$89.5 million

Project timeline