Aim-listed Kazera Global announced that the independent technical report for the Sea Concession 2A heavy mineral sands (HMS) project, in Alexander Bay, Northern Cape, South Africa, has now been completed, approved and signed off by Creo Geo Consulting.

This report confirms and refines the key provisional findings announced earlier this month.

The initial surf-zone evaluation area of 42.86 ha represents only 1.42% of the total 2A licence area, but contains an inferred mineral resource of 6.65-million tonnes of HMS at a grade of 20.04% total heavy minerals (THM).

Creo has calculated an indicative in situ value of about $369.3-million for the contained ilmenite, garnet, zircon and rutile within this evaluation area, based on second-quarter free-on-board (FoB) prices.

No indicative in situ value has been attributed at this stage to the remaining 98.58% of 2A, which the technical report identifies as a substantial geological target.

On a conservative basis, the geological target is estimated to contain an additional 265.2-million tonnes of HMS, with grades yet to be determined, refining the preliminary estimate of at least 234-million tonnes.

The final technical report further notes that the evaluation area, covering 42.86 ha and 1.42% of the total 2A licence area, contains an inferred mineral resource of 6.65-million tonnes of HMS at a grade of 20.04% THM.

The mineral resource contains about 1.33-million tonnes of contained THM, of which about 1.31-million tonnes comprise economic heavy minerals.

The report also indicates that the inferred mineral resource grade compares extremely favourably with typical operating HMS mines globally and the heavy mineral assemblage contains a high proportion of economic heavy minerals, principally garnet, ilmenite, zircon and rutile.

Granting of the 2A Mining Right remains the key next regulatory milestone.

“We are extremely pleased that the final technical report confirms the provisional results we announced on August 3 and gives us a much firmer technical foundation for 2A.

“The headline for us is that an evaluation area representing just 1.42% of the 2A licence area contains 6.65-million tonnes of HMS at 20.04% THM and has an indicative in situ value of approximately $369.3-million for its contained ilmenite, garnet, zircon and rutile,” says Kazera interim CEO Richard Jennings.

“What is equally important is that this value relates only to the current mineral resource within that 1.42% evaluation area. The remaining 98.58% of the concession is identified as a substantial geological target and, even on a conservative basis, potentially hosts more than a quarter of a billion tonnes of HMS,” he adds.

“This final report is an important step in demonstrating the scale and commercial potential of our flagship South African asset and the future revenue opportunity under the agreement we signed with South Africa AT Investments on July 9. The key remaining regulatory milestone is the granting of the 2A Mining Right,” Jennings says.