Name of the Project
Galalar silica sands projects (GSSP).

Location
Queensland, Australia.

Project Owner/s
Diatreme Resources.

Project Description
A prefeasibility study (PFS) has delivered a substantial boost to the GSSP.

Operations at the project will deliver a single product through selective mining and progressive rehabilitation, resulting in a low-impact mine, with an expected yield of 1.32-million tonnes a year of premium “low iron” silicon oxide product at full production, compared with 750 000 t/y of silicone oxide in the 2019 scoping study.

The project will use conventional mine extraction methods and a separation processing plant.

The project has a maiden mineral reserve estimate of 32-million tonnes and mineral resources of 75-million tonnes.

The project has a mine life of 23.5 years, producing 1.26-million tonnes a year of silica product.

Potential Job Creation
The project is expected to become a significant employer in the region, directly employing 80 to 85 people, with an estimate of more than 40% of workers sourced from local communities.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of A495-million and an internal rate of return of 74%, with a payback of 1.4 years.

Capital Expenditure
A$60.1-million.

Planned Start/End Date
Not stated.

Latest Developments
The PFS technical and outstanding financial results have justified the immediate advancement into the definitive feasibility study to allow for confirmation of project economics through a final tendering process.

A final investment decision is expected to be delivered in the second quarter of 2022.

Key Contracts, Suppliers and Consultants
None stated.

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