Name of the Project
Galalar silica project.

Location
The project is located in far north Queensland, Australia.

Project Owner/s
The project is a partnership with Diatreme Resources and the traditional owners Hopevale Congress (12.5%).

Project Description
A scoping study has confirmed that the project is capable of becoming a significant near-term, low-cost and premium-quality silica producer.

Galalar has a current indicated mineral resource estimated at 21.5-million tonnes grading 99.2% silicon oxide, including an inferred resource of 8.7-million tonnes.

The project has a 15-year mine life at a rate of 950 000 t/y for a total 14.25-million tonnes of sand mined.

Potential Job Creation
The project could generate 30 to 40 jobs in the construction phase and 60 in production, with a focus on local employment, including for the traditional owners.

Net Present Value/Internal Rate of Return
The project has a pretax nominal net present value, at a 10% discount rate, of A$231-million and an internal rate of return of 150%, with a payback of eight months.

Capital Expenditure
The project has an estimated price tag of A$24.4-million.

Planned Start/End Date
Not stated.

Latest Developments
A mining lease application for the project is currently in a prelodgement process, with Queensland regulatory agencies expecting a formal submission. Preparation of external environmental surveys to be used for that submission is under way, with the dry-season studies and submissions expected to be completed over the coming weeks.

As a result of the highly positive results from the scoping study, Diatreme is actively progressing with next-step environmental studies and submissions, and advancing the permitting and approvals processes.

Diatreme has also identified potentially significant project enhancement options to the existing study, including the possibility of building a purpose-built barge ramp facility closer to the mine site.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Diatreme Resources, tel +61 7 3397 2222 or email manager@diatreme.com.au.