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Diatreme Resources’ maiden mineral resource confirms high-grade silica deposit at Cape Bedford

The maiden inferred resource is an estimated 21.6 million tonnes grading at more than 99% silica.
Diatreme Resources’ maiden mineral resource confirms high-grade silica deposit at Cape Bedford
Bulk sample testing at Cape Bedford in Queensland

Diatreme Resources Ltd (ASX:DRX) has completed the maiden inferred mineral resource for the Nob Point prospect at its Cape Bedford Silica/Heavy Minerals Project in North Queensland.

The resource spans an area of around 1 square kilometre and confirms the presence of a world-class, high-grade silica sand deposit.

The company is undertaking commercial and permitting studies, including site logistics, exports and product offtake, to expedite the delivery of a cashflow-generating near-term mining operation.

‘Clear pathway towards development’

Diatreme chief executive officer Neil McIntyre said the results showed potential for an important new silica sand mine that could generate valuable new jobs and investment for far north Queensland.

“These results substantiate our previous exploration efforts and we are determined to advance this project as quickly as possible … to ensure maximum economic benefits for the local community.

“Commercial and permitting studies are rapidly progressing and with the support of (traditional owners) Hope Vale Congress and other stakeholders, we see a clear pathway towards development, capitalising on the project’s access to fast-growing Asian markets.

“Within our commercial scoping study, we will be targeting the potential export of 350-500,000 tonnes per annum of high quality silica sand at a quality specification similar to the nearby Mitsubishi-owned Cape Flattery Silica Mines operation.

“This operation, which our tenement borders, is the world’s largest silica mining operation and is renowned for its premium quality silica product.”

READ: Diatreme Resources reveals potential of its project near the world’s largest silica sands mine

The resource estimate also found open dune extensions to the immediate north and west, highlighting the potential for additional exploration to expand the silica sand deposit.

Modelling showed the deposit average 16.5 metres in thickness, 1,800 metres in length and 600 metres in width.

Bulk sample testing on more than 500 kilograms of product from within the resource area is expected to confirm the high-quality achievable end product grades, with the results expected by mid-August.

The global silica market is predicated to reach revenues of around US$10 billion by 2022, with a compound annual growth rate of 7.2%.

Cape Bedford has several operational advantages, including: its immediate access to a high-quality workforce available on a drive-in basis; access to existing road infrastructure; a potential shipping/export point located within a short distance of the deposit; and strong community support for development.

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Diatreme Resources Ltd Timeline

Newswire
December 02 2014

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