BHP Billiton carried out exploration and development of the Beenup minerals sands project over a number of years and undertook substantial infrastructure projects and geological investigations within the East Augusta area in the South West of Western Australia. The project was shelved in the late 1990's and a number of the areas originally retained by BHP Billiton have since been relinquished. As part of the Beenup mineral sands project, a number of non-JORC compliant resources were identified within the area.
AMMG has an application over approximately 90 square kilometres of area located at East Augusta. The application covers a number of areas reported by BHP Billiton as containing mineral sands, [including ilmenite and zircon].
Further information can be found in Section 8, Independent Geologist's Report, in the Company Prospectus.
Uses
Initially mined for paint pigmentation, minerals sands are now recognised as being of strategic importance for exciting developments in industrial and scientific technology.
Titanium minerals
Titanium pigments are pure white, highly refractive, ultra-violet-absorbing, non-toxic and inert. They are used in a wide and growing range of products: protective coatings, such as house, car paints and sunscreens, as well as in plastics, paper and textiles. Titanium pigments are also increasingly used in a range of foodstuffs and cosmetics.
Titanium minerals also act as a fluxing agent in welding electrodes that are used extensively in shipbuilding and construction. Titanium minerals are also used for the production of titanium sponge, used in the manufacture of titanium metal. The strength and lightness of titanium metal makes it ideal for advanced engineering applications, particularly in the aerospace industry, and in a range of other applications, including sports equipment and jewellery.
Zircon
Over 50 per cent of zircon is used in the production of ceramics, including tiles, sanitary ware and tableware. Zircon is also used in refractories, television glass and foundry applications, such as the casting of jet turbine blades.
In addition, it is the source material for zirconia and a wide range of zirconium-based chemicals. These products are used in a multitude of high-tech industrial applications, including autocatalysts, fuel cell technology, electronics and abrasives.
Market Demand
Australia is a pioneer of the mineral sands industry and is the world's largest mineral sands producer. The Australian mineral sands industry currently generates approximately AUD$1.2 billion in export income per annum.
Continuing international growth in demand for titanium and zirconium minerals offers an opportunity to develop new mineral sands resources in the south west of Western Australia where a significant amount of Australia's heavy mineral sands are located.
Map showing East Augusta Exploration License Application