Hillgrove Resources and Heavy Minerals have signed a tailings processing agreement to extract and sell garnet from the Kanmantoo Process Tailings and Tailings Storage Facility (TSF) in South Australia.

The agreement is designed to generate revenue for Hillgrove and extend the operational life of the Kanmantoo TSF.

Under the terms of the agreement, Hillgrove will receive gross revenue payments (GRP) of 15% of on-spec garnet sales during mine operations, which will decrease to 5% after mine closure.

In addition, the company will receive $25/t for off-spec garnet that will be used by Heavy Minerals.

Heavy Minerals has guaranteed a minimum GRP of $500,000 per annum (S$720,088) once garnet production begins, increasing to $1 million when production reaches 100,000 tpa (tpa).

Hillgrove will also receive an initial payment of $50,000 upon execution of the deal, followed by $150,000 upon final investment decision.

Upon completion of Hillgrove’s mining operations, Heavy Minerals may use the TSF for additional garnet mining and assume remaining and related site rehabilitation obligations, which are subject to the agreement.

In addition, Heavy Minerals will construct and operate a garnet processing plant at Hillgrove’s Kanmantoo Copper Mine to recover garnet from the existing process stream.

Hillgrove CEO and Managing Director Bob Fulker said: “This deal offers multiple benefits to Hillgrove shareholders. It provides a new source of revenue, extends the life of our TSF and, most importantly, has the potential to transfer remediation obligations to Heavy Minerals following the closure of Kanmantoo.”

Garnet, a specialized industrial mineral, is used in water jet cutting and other abrasive applications.

Heavy Minerals is expected to produce up to 50,000 tpa in the initial three years, rising to 100,000 tpa in the fourth year.

In October 2024, Hillgrove secured a standby line of credit of A$10 million with Freepoint Metals and Concentrates to improve operations at the Kanmantoo copper mine.

“Hillgrove and Heavy Minerals Sign Garnet Waste Processing Agreement” was originally created and published by Mining Technologya trademark owned by GlobalData.

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