Allup Silica Prepares to Drill the McLaren Mineral Sands Project

Allup Silica has engaged IHC Mining Consultants to initiate the engineering design phase of the Prefeasibility Study (PFS) for its McLaren Mineral Sands Project located in Western Australia. The company anticipates completing the PFS by the second quarter of the following year. Additionally, Allup Silica is gearing up to commence a drilling program in the fourth quarter of 2024. This program aims to refresh the existing mineral resource estimate (MRE) and assess the potential for expanding the known resource.

To facilitate this, Environmental Resources Management has been tasked with planning the infill drilling and updating the MRE once the results are available. IHC's engineering scope encompasses a proposed mining rate of 10 million tonnes per annum, utilizing dry mining unit technology—a method widely adopted in the mineral sands sector for efficient bulk extraction. The study aims to identify a resource of 200 million tonnes within the JORC indicated category and to achieve a mine life of 20 years, with planned production reaching up to 400,000 tonnes per annum of ilmenite product.

Allup Silica highlights its ability to leverage extensive previous studies to expedite the PFS process. Notably, in 2018, IHC conducted metallurgical testing on a representative 14-tonne bulk sample from the McLaren deposit, which yielded a heavy mineral content of 7.2%. Mineralogical analyses indicated that the heavy minerals comprise 56.3% ilmenite and other higher-grade titanium minerals, such as leucoxene. The metallurgical testwork confirmed that the materials are suitable for standard mineral sands processing techniques using conventional mineral sands equipment.

Ilmenite, a titanium-iron oxide mineral, is crucial as the primary ore for titanium and the main source of titanium dioxide, which is utilized across various industries, including paints, printing inks, fabrics, plastics, paper, sunscreens, food, and cosmetics. In 2023, the global ilmenite market surpassed $8.8 billion, with projections indicating a compound annual growth rate (CAGR) of over 8% through 2032. As of March 31, 2024, the closing price for ilmenite sand IP3 grade from Moma (Mozambique) stood at $300 per tonne. Allup Silica remains focused on advancing its heavy mineral sands and silica sand projects in Western Australia.

Allup Silica is an exploration company focused on developing its heavy mineral sands and silica sand tenements in Western Australia. The company aims to aggressively advance its McLaren Mineral Sands Project towards development, while continuing to explore and expand its silica sand opportunities. With a focus on resource growth and project progression, Allup Silica is committed to maximizing the potential of its mineral assets and contributing to the growing demand for mineral sands, which are crucial for industries like construction, manufacturing, and technology.