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Galalar PFS proves positive for Diatreme

9th November 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Galalar silica sands project, in Queensland, estimates that the project will require a capital investment of A$60.1-million.

Based on the maiden mineral reserve estimate of 32-million tonnes and a total mineral resource estimate of 75-million tonnes, the project is expected to have a mine life of 23-and-a-half years, producing 1.26-million tonnes a year of silica product.

The PFS estimated a post-tax net present value of A$358-million and an internal rate of return of 66%, with a pay-back period of 1.4 years.

ASX-listed Diatreme said on Tuesday that a definitive feasibility study on the project would now be delivered in early 2022, to support a final investment decision by the second quarter of next year.

“These results are a substantial upgrade on the previous Scoping Study and highlight how fundamentally robust the project is as we advance through the final stages of the permitting and approvals process,” said Diatreme CEO Neil McIntyre.

“Importantly for the local community, the PFS shows how Galalar could deliver long-lasting jobs and other economic benefits to First Nations and other stakeholders, supporting the region in its post-Covid recovery, with potential for downstream processing in Queensland to capture further value.

“The Asian solar photovoltaic market is booming on the back of the solar energy boom, and we are seeing strong demand from the region for Galalar’s premium-quality, low iron silica product.

“The Galalar project is truly ready to take its place as one of Queensland’s important mining projects as we play our part in Queensland’s new economy minerals drive. The opportunity is right here in front of us, and we look forward to advancing this project’s development with the support of all stakeholders.”

Edited by Creamer Media Reporter

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