Huandot Magnesia Project
Thessally Resources holds 100% of the Huandot Magnesia Project, a significant deposit comprising shallow, high-grade, macrocrystalline magnesite located 80 kilometres south of Darwin in Australia’s Northern Territory.
Thessally Resources acquired the Huandot Magnesia Project in 2009. Since then we have catalogued and captured the significant exploration, resource evaluation and engineering studies that have been completed on the Huandot deposit and other magnesite occurrences in the region, setting the foundation for project development.
This includes geological mapping, sampling, significant drilling, mineralogical and metallurgical test work, engineering studies, trial mining, market evaluation and assessment of the environmental, social and cultural factors relevant to the proposed operation.
Thessally Resources submitted an updated Mine Management Plan (MMP) on 8 December 2022 to request a variation to authorisation 0900-01 to cover proposed resource drilling and bulk sampling activities at the Huandot Magnesite Project. Approval for the MMP and the variation to authorisation 0900-01 was provided on the 30th March 2023 by Mining Operations of the Department of Industry Tourism and Trade, Northern Territory Government of Australia. A copy of the MMP can be accessed here.
Known mineral resources are 17Mt at 43%MgO, with high grade magnesite resources 9.1Mt”44/3%MgO, 4% insolubles.
Next steps include raising capital for development undertaking drilling and further metallurgical test work to define product quality and complete a fast-tracked feasibility study.
We will then be looking to secure offtake agreements in key markets and seek development permits and approvals.
Infrastructure
The Huandot Magnesia Project is located project is in close proximity to key infrastructure. The project, comprising 20 km2 of exploration licenses, is located adjacent to sealed roads, including the Stuart Highway, and is only 80 km from the Port of Darwin, to which it has direct, year-round access. The site, near the town of Batchelor, is close to quality infrastructure such as high voltage power, gas and water.
Project Economics
A previous scoping study was undertaken on the basis of direct shipping magnesite for export. The study contemplated a 20-year mine life, mining 300 ktpa with 90% mining recovery and a 44.6% MgO feed grade. The study demonstrated that mining is expected to be straightforward with a low stripping ratio, mining and transport costs.
We are looking to establish a fast-tracked bankable feasibility study to develop the project.
