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Perpetual Resources (ASX:PEC) - Non Executive Chairman, Julian Babarczy - The Market Herald
Non Executive Chairman, Julian Babarczy
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  • Perpetual Resources (PEC) has outlined to investors where it sees itself in the $9 billion global silica sands market
  • By the end of the year, Perpetual plans to have completed a Definitive Feasibility Study and begun offtake negotiations for Beharra
  • Just last month Perpetual completed a maiden air core drilling program at the flagship project, results from which will contribute to a maiden JORC Resource
  • This is just one of the company's four projects in Western Australia which are prospective for high purity silica and construction sand products
  • One of Perpetual's key focuses is the glass industry which constitutes the largest silica sands market
  • Already, initial testing demonstrates sand from Beharra fits the specifications for the glass applications
  • Company share are trading flat today for 2.7 cents each

Perpetual Resources (PEC) is vying for a stake in the $9 billion global silica sands market.

By the end of the year, the company is aiming to have completed a Definitive Feasibility Study (DFS) for its flagship Beharrah Project.

Just last month Perpetual completed a maiden air core drilling program at the project which intersected extensive thick intervals of white sands. Results are expected in May and will contribute to a maiden JORC Resource for Beharra.

In addition to Perpetual's flagship project located 100 kilometres south of Geraldton, the company has three other projects in Western Australia.

Eneabba, Eneabba North and Sargon are all located north of Perth and south of Geraldton. These are prospective for high purity silica and construction sand products.

The global demand for the commodity is growing with nearby markets in Asia already importing a signifcant proportion of the product from Australia. We account for more than 50 per cent of Chinese, 70 per cent of Japanese and 68 per cent of South Korean silica imports.

Specifically, China's silica imports have increased more than seven-fold from 2014 to 2019. In this period, imports grew from 270,000 tonnes to over 2 million tonnes per annum.

Silica sands are in demand in several industries for various applications including for glass, construction sands, chemicals, foundry sands and building products.

One of Perpetual's key focuses is the glass industry which accounts for 37 per cent of silica use, making it the largest silica sands market.

Already initial beneficiation test work on Beharra silica sands has demonstrated it meets the specifications for float, container and foundry glass.

Further beneficiation studies on bulk samples from the project will be carried out in the coming months as the company aims to optimise both physical separation methods and leaching test work.

Additionally, Perpetual is aiming to commence a Pre-Feasibility Study for the project this quarter. By the end of the year, the company aims to have progressed this to a DFS and entered offtake negotiations.

Meanwhile at Eneabba and Eneabba North, the company is planning to conduct scout drilling and auger drilling of high purity target by the end of the calendar year.

While at Sargon Perpetual in aiming to conduct an augur drilling program to define sand specifications during 2020.

Company shares are trading flat today for 2.7 cents each.

PEC by the numbers
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