Name of the Project
Cape Flattery silica sand project.

Location
Eastern coastline of Cape York Peninsula in north Queensland, Australia.

Project Owner/s
Metallica Minerals.

Project Description
A prefeasibility study (PFS) has confirmed a possible long-life silica sand project producing high-quality silica sand for the booming Asia-Pacific glass manufacturing markets supplying the solar panel industry. The PFS has been built upon the 2021 scoping study.

The project has a maiden ore reserve of 46-million tonnes grading 99.18% silicon dioxide, within a mineral resource of 53.5-million tonnes grading 99.19% silicon dioxide.

The project will comprise a conventional resource extraction and off-the-shelf processing plant with an operating capacity of 1.8-million tonnes a year.

Silica sand production is estimated at 33.4-million tonnes a year over a 25-year life-of-mine.

A purpose-built jetty is planned, subject to development approval to allow for barge loading and transshipping operations.

The project includes the overland conveyor from the product stockpile to the jetty infrastructure facility, the barge loading facility and associated jetty, a purpose-built accommodation facility, a site access road to the jetty, site-wide services, mine infrastructure area facilities, a product stockpile and process plant pad.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$290-million and an internal rate of return of 34.9%, with a payback from the start of production of 3.9 years.

Capital Expenditure
Initial capital expenditure is estimated at A$79.4-million.

Planned Start/End Date
Metallica’s goal is to be exporting silica sand towards the end of 2024.

Latest Developments
Metallica Minerals has suspended the majority of the planned project development works, citing the unsolicited, off-market takeover offer by Diatreme Resources.

The company has reported that it has engaged with the Office of the Coordinator-General on the draft terms of reference (ToR) for the environmental-impact statement (EIS), which will be released for public comment in the near future.

However, because of the takeover offer, studies that do not require receipt of the ToR have been placed on hold.

In addition to the EIS process, Metallica has put on hold the mediation process under the National Native Title Tribunal with the Dingaal and Nguuruumungo clans.

Diatreme launched a takeover for Metallica in February 2024 to combine their silica sand assets, in the Far North Queensland, creating a larger resource base to serve the global solar PV industry.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Metallica Minerals, tel + 61 7 3249 3000 or email admin@metallicaminerals.com.au.