An inferred resource of 7.8 million tonnes grading 5.1% heavy minerals for a total HM content of 394,000 tonnes, with a low grade HM cut-off of 3%, was announced in a study prepared by SRK Consulting.
SER quoted the study as saying that past mining activities in the area, as well as numerous operations with a similar style of mineralisation, supported the potential economic viability of the deposit.
“Ambergate appears to have reasonable potential for economic extraction by way of small open pit surface mining,” the report said.
SER said the result had lifted its confidence that combining Ambergate with its four other mineral sands projects in the south west of Western Australia would result in what it said was a “significant heavy mineral sands operation”.
The company added that negotiations with landholders for future work were well advanced while metallurgical test work on the project was underway.
SER noted in its quarterly report that issues of land access had been the major hurdle encountered by previous explorers at Ambergate, saying it had adopted an open consultative approach in dealing with stakeholders.
An unmanned aerial survey conducted on the Ambergate site had been carried out with landholder approval, SER said.
Shares in SER were unchanged at A1.5c in morning trade, capitalising the company at $5.3 million.
The company had $231,000 in cash at the end of the December quarter.