Name of the Project
Galalar silica project.

Location
North Queensland, Australia.

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

Project Description
Galalar is one of the largest high-purity silica exploration land packages in Australia.

A scoping study has confirmed that the project can become a significant near-term, low-cost and premium-quality silica producer.

The project has a total mineral resource of 47.5-million tonnes, with potential for further expansion. This includes maiden measured mineral resources comprising 30.9-million tonnes at 99.28% silica oxide.

The project has 15-year mine life producing 750 000 t/y, based on a 79% recovery rate.

Potential Job Creation
The project has the potential to generate more than 110 full‐time jobs.

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
An independent economic study has shown that the project could deliver a sizeable economic injection into Hope Vale, Cooktown and the surrounding region, including about $23‐million to $24-million in the construction phase and up to $42-million in operation.

Planned Start/End Date
Not stated.

Latest Developments
Diatreme Resources will raise A$10-million through a share placement to sophisticated and professional investors to fund work at the Galalar project.

The share placement will be conducted under Diatreme’s existing placement capacity, and will not require shareholder approval.

Funds raised will go towards the delivery of a maiden ore reserve and an improved mineral resource, consistent with the proposed mining plan programme, the delivery of a prefeasibility study, followed by a definitive feasibility study, finalising permitting and approvals, early site works, exploration, and towards general working capital.

Key Contracts, Suppliers and Consultants
Ausrocks (mineral resources).

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