AusQuest Limited (ASX:AQD) Confirms Premium Iron Product at Waterfall Prospect

Premium Iron Product Confirmed

AusQuest Limited (ASX:AQD) has confirmed the production of a premium grade iron product exceeding 70% Fe at its Waterfall Prospect. This significant achievement followed beneficiation test work conducted using the Davis Tube Recovery (DTR) method on samples from 14 of the 16 drill holes at the site.

The results revealed that magnetite was effectively liberated from its host rock through a relatively coarse grind size, suggesting promising potential for reduced future processing costs.

Key Test Work Outcomes

The DTR tests indicated average recoveries of approximately 34%, ensuring that most, if not all, of the magnetite was recovered in the final concentrate. Notably, the impurity levels within the magnetite concentrate, including silica, alumina, sulfur, and phosphorus, were found to be extremely low.

The Morrisey Project, located approximately 120km from the town of Mullewa and 80km by rail from the Port of Geraldton, has the potential to host additional magnetite mineralisation, with Waterfall being the first of at least five identified targets.

Next Steps and Future Outlook

AusQuest plans to conduct Native Title clearance surveys over further magnetite targets by year-end and initiate drilling for these additional targets in 2025, in collaboration with a subsidiary of South32 Limited.

Graeme Drew, Managing Director of AusQuest, expressed satisfaction with the beneficiation test outcomes, stating, “We are now looking at testing other magnetite targets within the Morrisey Project to help us assess the overall commercial potential.” He further mentioned that the Board anticipates providing updates on the project as more results become available.

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Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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