Kazera Global (AIM:KZG), the AIM-quoted investment company, said a draft independent technical report on its Sea Concession 2A heavy mineral sands project in South Africa's Northern Cape has identified an inferred mineral resource of 6.65 million tonnes at a grade of 20.04% total heavy minerals.
The report, prepared by Creo Geo Consulting, covers an evaluation area representing just 1.42% of the total 2A licence.
That resource contains approximately 1.33 million tonnes of economic heavy minerals, principally garnet, ilmenite, zircon and rutile, at a grade the draft describes as comparing favourably with typical operating heavy mineral sands mines globally.
The remaining 98.58% of the licence is classed as a substantial geological target, with the draft suggesting the wider 2A area could conservatively host at least 234 million tonnes of heavy mineral sands based on extrapolation from the observed homogeneous nature of the deposit.
The figures remain preliminary, pending further review and sign-off by the qualified person before the final report is published.
Richard Jennings, Kazera's interim chief executive, linked the findings to the commercial arrangement signed with South Africa AT Investments on 9 July.
"We believe these findings have the potential to demonstrate the scale and commercial significance of 2A as a long-life heavy mineral sands project", he said, subject to final technical sign-off and the granting of the 2A mining right.
Kazera will issue a further update once the final Technical Report is completed and approved.
News Intelligence what this means for the company
Kazera's draft technical report on Sea Concession 2A identifies 6.65 million tonnes of inferred resource at 20.04% total heavy minerals across just 1.42% of the licence area, with the remaining 98.58% flagged as a substantial geological target that could conservatively host at least 234 million tonnes based on extrapolation. The findings are preliminary pending final sign-off and remain contingent on grant of the 2A mining right, but the company links them to its July partnership with South Africa AT Investments, which has already injected US$750,000 in advance funding.
The draft resource establishes a material exploration upside case for 2A if the wider licence proves as homogeneous as the evaluated area, but the inferred status, preliminary nature of the figures, and dependence on mining right approval mean the resource remains unproven. The company's capital position has improved with recent cash inflows, but execution risk on both technical sign-off and regulatory approval remains high.
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