PERTH (miningweekly.com) – An independent economic study into ASX-listed Diatreme’s Galalar silica project, in Queensland, has estimated that the project could generate annual revenues of some A$80.25-million, based on the production of 750 000 t/y of high-grade silica.
Diatreme on Wednesday noted that the economic study estimated that a capital investment of between A$23-million and A$24-million would be required during the construction phase.
“The study demonstrates that the Galalar project will have a sizeable beneficial economic impact on the local region, particularly in Hope Vale, and we are working closely with our project partner Hopevale Congress to ensure maximum local benefits,” said Diatreme CEO Neil McIntyre.
The company has lodged a mining lease application for the project and is progressing environmental studies with the aim of fast-tracking the development.
“While the Covid-19 outbreak has temporarily suspended access within the Hope Vale region, we look forward to resuming our engagement with the local community and regional stakeholders. The launch of a new silica sand mine will make a significant contribution to the economic recovery process and we aim to fast-track the regional benefits that will flow from this development,” McIntyre said.