May 12, 2020

Beefed up resource figure for Galalar silica sand site

Beefed up resource figure for Galalar silica sand site

The total mineral resource for Diatreme’s Galalar silica sand project on Cape York has received a 25 per cent boost to 47.5 million tonnes.

Diatreme says it aims to progress to mining as soon as possible against a background of strong demand from Asian markets.

“This is a pleasing outcome for Galalar and highlights the potential for
the project to become a long‐term source of premium quality silica sand, generating valuable new jobs and other economic benefits for the local community, including the traditional owners and project partners, Hopevale Congress,” chief executive officer Neil McIntyre said.

“North Queensland needs new investment and employment opportunities to ensure its post‐pandemic recovery and the Galalar project has the potential to deliver exactly that.

“The Galalar project is rapidly gaining momentum thanks to the support of local stakeholders and we look forward to progressing it through next step permitting and approvals as quickly as possible to mining activity, amid continued strong demand for high‐quality silica sand products from Asian
markets.”

Located about 200km north of Cairns, the Galalar silica sand project lies near the world’s largest operating silica sand mine at Cape Flattery.

The company lodged an application in February to undertake a voluntary
Environmental Impact Statement (EIS), which followed last December’s lodgement of a Mining Lease Application

Based on an assessment by independent consultants Ausrocks, the maiden measured mineral resource at Galalar comprises 30.9 Mt at 99.28 per cent SiO2, while the total mineral resource has expanded to 47.5 Mt from the previous estimate of 38Mt (announced in February)

The resource expansion follows the release of an economic study showing the project could inject about $24 million in the construction phase and up to $42 million in the operational phase for the benefit of Hope Vale, Cooktown and the surrounding region, with estimated total revenue of $80 million per annum.

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