On 12 February 2019, Perpetual Resources Limited (ASX: PEC), a company from the metals and mining sector which is into the business of developing coal mines through exploration interest in Indonesia, announced that it has commenced the field-based exploration at the Beharra Silica Sand Project, and it has an exclusive option to acquire the project.
The company commenced its initial auger drilling program at Beharra with a purpose to determine the product specification of the high-grade silica present at Beharra. It also aimed to identify potential purity and give precise information about the exploration target.
The drilling program confirmed that the high-grade silica sands target has the potential to produce high purity SiO2. Earlier the Geological Survey of Western Australia had already mapped the potential of the target which is over 13 km of strike and was minimum 1.4 km wide.
The company will initially focus on the exploration across the quadrant of the Beharra tenure underlain by Vacant Crown Land. The strike length of Beharra South is 7,215 metres and has an average width of 1,700 metres. The area which was drilled for the testing of heavy mineral sands showed that the targets and the thicknesses are in between 6 metres and 33 metres.
On the other hand, it is an excellent opportunity for the company as Silica sands have a wide range of application in the Silica sand market. Silica sand is used as construction sand, proppant sand used in well fracturing, and foundry sand. High-purity silicon oxide is used for making clear glass. The silica with more than 99.8% purity is used in semiconductor fillers, LCD screens, and optical glass. SiO2 above 99.95% purity is used for solar silicon metal, semiconductors and specialist lamp tubing as well as other high-tech applications.
Based on the initial auger drilling program and the wide range of application of Silica, the company is optimistic about the Beharra Project. The company, based on pending further sampling and testing, targets to produce high-grade silica with purity more than 99.8%.
The company also highlighted that the strategic location of the Project would help in capitalizing both the local and potentially export markets once they receive the final product specification.
For the half year ended 31 December 2018, PEC made a profit of $30,435. There was a slight decrease in the net assets by $1932 as compared to the previous corresponding period. The total shareholders’ equity was $843,863. By the end of the period, PEC had net cash and cash equivalent worth $633,932.
Since the past six months, the stock has generated a positive return of 157.14%. The market price of the stock is A$0.049, up by 36.11% with the close of the market on 12 February 2019. The stock has a market capitalization of A$8.93 million and approximately 247.92 million outstanding shares and a PE ratio 5.810x.
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