Heavy Minerals Limited (ASX: HVY) has released the results of a Pre-Feasibility Study for its Port Gregory project in Western Australia, confirming the viability of a long-life, high-margin garnet operation. The study outlines a 24-year mine life based on a maiden Probable Ore Reserve of 85.5 million tonnes at 4.43% Total Heavy Mineral content, which contains 3.3 million tonnes of garnet. The company projects a post-tax net present value of A$322.8 million at an 8% discount rate, supported by an internal rate of return of 47.6%.

The operation is designed as a conventional alluvial project, utilising free-digging mining techniques that eliminate the need for drilling, blasting, or complex crushing and grinding processes. With development capital estimated at A$122.1 million and a peak funding requirement of approximately A$89.5 million, the company anticipates a payback period of roughly 3.1 years from the start of production. The study also proposes a power solution incorporating LNG, solar, and battery storage to support the processing facility.

"The Pre-Feasibility Study confirms what we have believed about Port Gregory since prior to listing HVY - this is a high-margin, long-life garnet project that stands among the best undeveloped assets in the sector."

"The practical result is that the Company emerges from this Study further down the path to development than the Study alone would suggest."

— Adam Schofield, Executive Chairman

The project’s commercial focus is on producing coarse 20/40 and 30/60 grade almandine garnet, which the company identifies as being in short market supply. The site is located in an established mining precinct, leveraging existing regional infrastructure such as nearby port access and a local workforce, which simplifies the logistical requirements for the development. Management has noted that the project remains value-positive across various price sensitivities, underscoring its robustness as it moves toward the next stage of technical and regulatory evaluation.

Following the completion of this study, the company is actively advancing workstreams to initiate a Definitive Feasibility Study for Port Gregory. Regulatory progress remains a key focus, with the board planning to submit a miscellaneous license application for the project's required borefield during the first quarter of 2027. This process runs in parallel with ongoing efforts to secure final environmental and mining approvals necessary to move the project toward a final investment decision.

Beyond the developments at Port Gregory, the company is maintaining momentum across its broader project pipeline. Management expects to release detailed findings from its FEL3 study for the Kanmantoo Hardrock Industrial Garnet project within the current quarter. This update is expected to provide further clarity regarding funding arrangements and potential product distribution partnerships. As the company transitions into these next phases, it remains focused on securing the capital and commercial agreements required to move its industrial garnet assets toward production.

Read the full announcement: Port Gregory PFS Delivers Maiden Ore Reserve - A$322.8M NPV