South Australian Government geological pre-competitive data has been cited in a high-grade Titanium-Heavy Mineral Sand discovery at Petratherm Limited's Muckanippie Project area southwest of Coober Pedy.
The company recently reported to the ASX exceptional surface sample grades ranging from 10 to 50 per cent titanium dioxide from two large prospect areas.
This has the potential to be a world-class sized critical mineral discovery.
Titanium is on Australia's national critical mineral list as well as the critical mineral lists of major trading partners including the US, the EU, India, Japan and South Korea for its uses in electric vehicles, battery storage, wind technology, pigments and as an alloy in steel and superalloys. It is essential for modern technologies, economies and national security.
The global market size of titanium in 2022 amounted to USD$28.6billion, but this is forecast to grow to nearly USD$52billion in 2030.
Importantly, this discovery would not have been fast-tracked without the Geological Survey of South Australia and the South Australian Drill Core Reference Library.
Drilling samples from an original 1991 drilling campaign kept at the Core Library had geological logs describing abundant bands of dark minerals present in the overlying cover, but no examination for Titanium was undertaken at that time as it was assumed these were just iron-rich bands and titanium markets were of no major significance in 1991.
Following recognition of mineralisation on the ground, Petratherm geologists examined these historic logs and assayed these drill holes which confirmed the dark minerals present are Titanium ore minerals ilmenite, leucoxene and rutile.
Public geoscience - also referred to as pre-competitive geoscience data - like the original 1991 logs near Coober Pedy, helps explorers refine down their search areas and reduce their investment risks – leading to new discoveries and mining income for the state.
Collecting, storing, analysing and presenting pre-competitive geoscience data is the responsibility of the Survey. The Survey has produced and collected vast quantities of data and information over decades, in collaboration with government agencies, universities and industry, delivering huge dividends to the state's economy.
An economic study and modelling by ACIL Allen into the value that pre competitive geoscience data contributes to the state's mining sector and its economy found:
- the Survey hosts a treasure trove of public data with a replacement value of more than $7.5 billion; and
- even using conservative assumptions, for every dollar invested in the Survey at least $6.50 is returned to the South Australian economy.
The $7.5 billion asset is represented in physical form at the state's internationally renowned Core Library, and as freely available data on the SA Resources Information Gateway (SARIG – map.sarig.sa.gov.au).
The Survey has been collecting geoscientific data for more than 140 years, and its contributions now see South Australia ranked as one of the top jurisdictions in the world for geological datasets. Critically, the Survey has been integral to some of the most significant discoveries in South Australia's mining history. Discoveries at Oak Dam, Carrapateena and Olympic Dam were all supported by data from the Survey.
As the world accelerates its efforts to decarbonise economic development, through electrification and renewable energy, demand for the Survey's services is set to hit new heights.
As put by Tom Koutsantonis
Congratulations to Petratherm for making this critical mineral discovery, which could prove to be very significant for the nation. This achievement reinforces the importance of pre competitive geoscience data for new discoveries.
I'm incredibly proud of the Survey's work and the world-leading repository of information it has built. That information has been integral to making our state an attractive place to do business.
This report – from a reputable and top-rated economic advisory firm – demonstrates the value of pre-competitive geoscience and is critical in the mineral industry ecosystem. It's unequivocal in its assessment that this sort of information accelerated discoveries like Olympic Dam. The Survey and its data have also helped uncover the mammoth copper reserves at Oak Dam, a project that has the potential to transform our state as we harness the world's clean energy transition.
It also endorses South Australia's ongoing commitment to public geoscience and precompetitive data. The return on investment our state gets from these investments couldn't be clearer. At a minimum it has returned $6.50 for every dollar we've invested – and that figure could be as high as $13!
I'm glad to see that the report also demonstrates that investing in public geoscience creates jobs – and not just in the pits and on the tools. For example, the innovative approaches the Survey has taken to encouraging 'mining' of this data have informed new fields of study and introduced a new generation to opportunities in geoscience.
The Survey has a proud history and a proven record of delivering huge economic returns to the state. I applaud the efforts to date, and I look forward to seeing it grow as a magnet for investment in South Australia.
As put by Peter Reid, Chief Executive Officer, Petratherm Limited
The Drill Core Reference Library is a world class repository of South Australia's sub-surface geology. It houses over a 100 years of exploration drilling, mostly funded from private industry exploration investment. As an explorer, I have often thought there must be discoveries waiting to be made there, particularly for 'new economy critical metals' which were not on the exploration radar in earlier times.
Another important point in this discovery is that the original drilling program from which we have obtained these historical samples was actually undertaken by the South Australian Geological Survey in 1991 as part of an initiative to increase knowledge in South Australian geology and investment in the South Australian Mineral Industry. The SA Geological Survey has been a leader in these types of initiatives for some time and it's one of the reasons we love exploring here.
PTR's titanium discovery at our Muckanippie Project near Coober Pedy in South Australia has potential to be a sizeable critical minerals project, with mineralisation over a large area.
Apart from offering world class pre-competitive data, to aid and focus exploration, the Core Library is a critical learning laboratory for explorers towards understanding SA's mineral systems. It has also served to attract new explorers and investors to South Australia, as they literally can go and see firsthand the state's rich mineral potential.
As put by Derek Carter, Chairman, Petratherm Limited
When mineralisation was first detected by Petratherm geologists mapping at the surface, we were thrilled to see that historical drilling undertaken in the region 30 years earlier was being maintained at the Core Library. This pre-competitive data allowed us to immediately undertake assaying of the rock strata and determine the extent of the new titanium heavy mineral sands discovery.
South Australia has long been seen as a favorable jurisdiction for resources exploration, ranking highly in external surveys, and more importantly this is evident in the support that PTR has received across its various exploration projects in the region.
We are proud to do business in South Australia, and we thank the state for its support.
