While Suvo has been going great guns with its kaolin projects, the coming weeks should see some of the attention shift to its promising Nova silica sands projects.
The Nova project on the outskirts of Eneabba, Western Australia, has proven potential to produce high-grade silica sand that is used in all types of glass-making including solar panels and other high-tech applications as well as AFS 60 foundry sand used in manufacturing electric vehicle components.
Suvo Strategic Metals (ASX:SUV) executive chairman Rob Martin notes that silica is on the critical minerals list of most Asian countries and that demand is increasing as it is the most consumed material on the planet after water.
“Not all sand is equal and good quality glass and Foundry sand is in very high demand with prices increasing and CAGR of around 6% per annum,” he told Stockhead.
Initial test work has also confirmed that almost 18% of the silica sand at the project reports to the very fine silica flour size fraction, which opens up the potential to supply the specialised markets for fillers and wellhead cement additives.
All this is promising for the company given that silica flour is valued between US$90 and US$150 per tonne while AFS 60 foundry sand goes for US$45-70/t.
“As far as we are aware Nova is one of the only deposit in Australia with naturally occurring silica flour, which could make the project extremely profitable compared to our peers,” Martin added.
And it is about to get more exciting with Martin noting that a maiden JORC compliance is due imminently.
Nova silica sand project
The Nova project located on the Eneabba plains at the foot of the Gin Gin scarp near Eneabba was the subject of exploration surface mapping and sampling in 2019.
This returned an average silicon dioxide grade of 98% with a number of samples returning grades in excess of 99% SiO2.
It also benefits from having a gas plant on its border to the east and a rail line to Geraldton on the western side.
This article was developed in collaboration with Suvo Strategic Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.