Huandot Magnesia Project
Thessally Resources is a privately owned Australian company focused on the exploration, evaluation and development of the Huandot magnesia project in the Northern Territory.
Thessally Resources Pty Ltd
T: +61 417 989 968
To find out more about Investment Attraction in the Northern Territory contact the:
Minerals and Upstream Energy Investment
Australia’s Northern Territory Government
Department of Trade, Business and Innovation
T: +61 8 8999 1385
The Huandot magnesia project is located 80km south of Darwin in Australia’s Northern Territory, close to infrastructure including the Alice Springs to Darwin railway and the Stuart Highway.
With a JORC indicated & inferred mineral resource of ~9 Mt @ 44% MgO, the project has the potential to be Australia’s closest magnesia project to key markets in Asia, providing a major location advantage.
Since it was first discovered in 1979 by BHP, the deposit has been subject to 8.7km drilling. In 1995 a 26,000 t bulk sample was mined, screened to a 90% passing -100 mm + 10 cm and washed. The bulk sample was graded 44.8% MgO, 0.5% CaO, 0.4% Fe, 0.3% SiO2, <0.1% Al, 4% insoluble, with a reactive silica index of 10. In 2013, laboratory calcining tests suggested that the magnesite could be suitable for caustic calcined magnesia (CCM), an important supplement in animal feed and wastewater treatment, and the company is actively seeking investment partners who share that vision.
The Huandot deposit is located in the Rum Jungle mineral field in the Pine Creek Orogen, which is amongst the most prospective geological regions of Australia. The magnesite is known through much of the extent of the Coomalie and Celia dolostones, where both dolomite and magnesite are present as interbedded irregular to lenticular bodies. Magnesite varies from dark brown to grey to pure white. It is present as coarse, up to 1cm size, euhedral crystals in two dominant morphologies: rhombohedral and bladed.
The company has estimated a JORC indicated and inferred mineral resource of 9.2 Mt @ 44.3% MgO. Much of the deposit is high purity with grades >44% MgO. The mineralisation at Huandot remains open at depth and along strike and, assuming it extends to at least 90–120m vertical depth, there may be a further 5–10 million tonnes magnesite as a potential exploration target immediately below the currently defined resource.
The project, comprising 20km2 of exploration licenses, is located adjacent to sealed roads, including the Stuart Highway, and is only 80km 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.
- Thessally Resources previously undertook a scoping study on the basis of direct shipping magnesia for export.
- The study contemplated a 20 year mine life, mining 300 ktpa with 90% mining recovery and a 44.6% MgO feed grade. Mining is expected to be straightforward with a low strip ratio.
- The company is currently preparing a prefeasibility study for the production of CCM for export into Southeast and East Asia.
- This work includes an investigation into the market potential for CCM’s use in animal feed products, flue gas desulphurisation and wastewater treatment.
- Market analysis is being conducted in 2017 to evaluate end-user requirements for CCM. The company plans further drilling to upgrade the resource.
- Next steps to development include environmental studies, land agreements, mining approvals and agreements with contractors.
Thessally Resources is seeking equity partners with an interest in CCM offtake to progress the development of the Huandot project.
The updated indicated and inferred mineral resource reported on 29 May 2015 at >26% Mg / 44% MgO grade comprises:
|Category||Tonnes (Mt)||Mg (%)||MgO (%)||Ca (%)||Fe (%)||Al (%)||Si (%)||Insoluble (%)|
This document includes information provided by third parties. The information is general in nature and is for information purposes only. The Northern Territory Government makes no representation about the veracity or accuracy of information provided by third parties. You must rely on your own due diligence before proceeding. You should consider seeking independent professional advice.
© Northern Territory Government, 2017