Sponsored

Allup Silica (ASX:APS) reports progress across sand projects in FY22

October 12, 2022 04:09 PM AEDT | By Aditi Sarkar
Follow us on Google News: https://kalkinemedia.com/resources/assets/public/images/google-news.webp

Highlights

  • Allup started FY22 with a successful listing on the ASX in May.
  • The company has a diversified portfolio of exploration assets.
  • The Sparkler Silica Sand Project delivered excellent metallurgical results with high-purity SiO2
  • For the Sparkler Silica Sand Project, the company completed updated JORC Inferred MRE with 37 million tonnes (0.106mm-0.6mm).
  • Allup has applied for new tenements to expand its project portfolio.

ASX-listed silica sand exploration firm Allup Silica (ASX:APS) witnessed a busy period throughout FY22, after a successful listing on the ASX in May 2022.

The company is committed to becoming a first-class global supplier of high-purity silica sands with the development of its diversified portfolio of exploration assets. The recently released annual report for the financial year 2022 too resonates a similar dynamism. 

During the reported period, the company commenced exploration programs at several of its key West Australian based tenements. Moreover, subsequent to the end of the financial year, APS applied for new tenements to expand its project portfolio.

Image source: APS update

Exploration at Sparkler Project advancing well

The Sparkler Silica Sand Exploration Project covers three granted exploration licences E70/5447 (Sparkler A), E70/5527 (Sparkler B) and E70/5920 (Sparkler C). The project is located nearby the Albany Port and has access to well-established infrastructure.

As of now, the project has witnessed surface sampling and an initial drill program. Moreover, the initial chemical analysis and metallurgical studies have been completed.

Key highlights from the independent, JORC compliant Inferred Minerals Resource Estimate for the Sparkler A Project are:

  • 37 million inferred tonnes at 99.66% SiO2 and 0.02% (200 ppm) Fe2O3 in sand fraction (0.106mm – 0.6mm). (Note: 0.106mm – 0.6mm suitable for high quality glass manufacturing).
  • 25 million inferred tonnes at 99.67% SiO2 and 0.03% (300 ppm) Fe2O3 in coarse sand fraction (+ 0.6mm).

 

The Sparkler Silica Sand Project Data and image source: APS update 

Allup makes headway at Pink Bark, Cabbage Spot and Dune Buggy projects

During the reported period, the company remained focused on activities related to the permitting and approvals required for the future exploration of these silica sand projects.

Pink Bark Silica Sand Project

  • Received encouraging results from initial surface samples.
  • Identified 6 km strike length with nearly 29 sq. km target area.
  • Received approval for provision-of-works stage 1 exploration program.

Dune Buggy Silica Sand Project

  • Submitted heritage impact assessment notice.
  • Submitted provision of works for stage 1 exploration program.
  • Undertaking test work to study potential processing techniques for the type of sand found at the sites.

Cabbage Spot Silica Sand Project

  • Submitted heritage impact assessment notice.
  • Received approval for provision of works for stage 1 exploration program.

Allup eyes expanded project portfolio with new tenements  

Subsequent to the financial year, the company made an application and was subsequently granted tenement EL 70/6170 located in the South-Western region of Western Australia.

Moreover, the company has applied for tenement ELA 70/6208 located in the South-Western region of Western Australia and tenement ELA 33298 located in the Northern Territory.

For further details, read here

Commercial strategy of the company

Allup’s commercial strategy is based on the investigation of multiple project areas having their own logistics and port options. Currently, the company has projects close to four Western Australian port locations: Bunbury, Wyndham, Esperance, and Albany. A further port location is also available at Darwin in the Northern Territory. Allup believes the strategy will help it in the following ways.

  • Risk reduction:

If effective, this model of many projects/several ports has the potential to lower the risks related to the myriad variables and regulatory permissions necessary to move from exploration to commercial production.

  • Scaling up using several projects:

The company believes that another benefit the many projects/several ports strategy will provide is the opportunity to scale up production by having several operations in different project areas, with each area having access to its own logistics and ports, which would allow the company to sell more to its customers.

  • Project variability:

Every project location for the company is unique and depends on a distinct form of transportation. The unique dynamics of an individual project eventually define whether it is economically viable or appealing.

Words from Allup Chairman Andrew Haythorpe

There is a highly encouraging demand for technology-focused minerals such as silica. This year, the Government of Australia has included silica in its list of critical minerals. Many leading economies have started recognising silica as an essential mineral for current and future technologies. The mineral is used to manufacture fibre optics, solar panels, mobile phones, tablet glass screens, etc. However, the supply outlook of this mineral remains constrained.

“Hence, the board of Allup see the importance of advancing our key silica projects towards development,” said Allup Executive Chairman Andrew Haythorpe. 

APS shares were trading at AU$0.099 midday on 12 October 2022, up 10% from the last close.

 

 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Two ASX Listed Stocks Giving Bullish Indications

Recent Articles

Investing Tips

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.