Overview
Stage | Permitting |
Mine Type | Open Pit |
Commodities |
|
Mining Method |
|
Mine Life | 23.5 years (as of Jan 1, 2021) |
One of the largest high-purity silica exploration land packages in Australia, the Galalar Silica Sand Project (GSSP) covers an area of 542 sq km in Queensland’s Eastern Cape York region, around 200km north of Cairns.
A 2021 Pre-Feasibility Study showed the value of the project, with an estimated post-tax net present value (NPV) of A$358 million.
However, Diatreme is currently focused on its Northern Silica Project, with the GSSP remaining a key asset subject to future development.
Galalar Project anticipated to feed future Northern Silica Project production. |
Source:
p. 1
Hope Vale Congress Aboriginal Corporation holds a 12.50% interest in the Galalar project as the representative body for the traditional owners of the area.
Sibelco has become a major shareholder in Diatreme Resources Ltd.
In addition, Sibelco and Diatreme have agreed a joint venture to develop Diatreme’s emerging Galalar Silica Project and Northern Resource Project, supported by an investment from Sibelco of $35 million, split into two tranches of $11 million and $24 million respectively. The investment is subject to approval by Australia’s Foreign Investment Review Board (FIRB).
The investment quantum and resultant 26.8% fully diluted interest are based upon progressive group silica project valuations of $110m and $160m respectively.
Contractors
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Summary:
The Galalar Deposit is a large surface deposit of overlying sand dunes that is part of the Quaternary age Cape Flattery-Cape Bedford dunefield complex. The deposit is dominated by clean high purity >98.5% silica (quartz) which is principally white, cream and light grey in colour, but also with variably dispersed yellow, orange and brown overtones.
The Galalar Deposit consists of two major paralleling dunes, nominally named Galalar East and Galalar West. The deposit extends approx. 3.4km long by 1.2km wide and ranges in vertical thickness from 6m to 32m. The dunes are elongate southeast to northwest and are densely but shallowly vegetated with topsoil to approx. 0.3m depth. The dunes are clearly defined on their long sides and by lower topography. The base of exploitable sand is defined by the water table and/or intersection with the basement consisting of either ‘B1’ orange-brown coloured sand horizon (“coloured sands”) or the clay basement of older weathered bedrock.
The silica sand is consistently high grade throughout, >98.5% SiO2, with variable but minor proportions of Al2O3, Fe2O3 and TiO2 due to the presence of minor clay, iron oxides and heavy minerals.
Summary:
Mining at GSSP will utilise a loader feeding to trommel, then slurry pumping to processing plant. A dozer will be utilised for progressive vegetation and topsoil stripping along with rehabilitation. Mining processes minimise iron contamination to the exceptionally low iron sand product. The PFS has considered a mix of leased, owner managed fleet will be the most suitable option for the GSSP. Equipment selected is considered common for sand mining operations and similar to plant operated by local earthworks contractors and quarry operators. Industry standard training will be sufficient for operators to be proficient in operating the selected mobile fleet. The MAP is a combination of a mobile hopper-feeder unit which discharges the mined ore at a controlled rate into a mobile screening and slurrying unit fitted with a slurry pump suitable for transferring the slurry to the SPP. The MAP will be fed by a wheel loader.
The hopper-feeder unit consists of a tipping grizzly over a hopper and belt feeder which controls the rate of ore discharge onto a transfer conveyor. The ore from the transfer conveyor is wet screened in a trommel fitted with 4mm aperture polyurethane screen panels and water sprays to assist screening. A short conveyor transports the 4mm oversize material to a stockpile away from the mining unit. The screened ore particles smaller than 4mm fall into a sump below the trommel where sufficient water is added to pump the slurry to the processing plant.
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Flow Sheet:
Summary:
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Projected Production:
Commodity | Units | Avg. Annual |
Silica
|
Mt
| 1.3 |
Operational Metrics:
Metrics | |
Annual ore mining rate
| ...... |
Annual processing capacity
| ...... |
Ore tonnes mined, LOM
| ...... |
Tonnes processed, LOM
| ...... |
* According to 2021 study.
Reserves at September 13, 2021:
A silica grade cut-off of 98.5% SiO2 is robust and was applied as the cut-off grade for the resource modelling and Mineral Resource Estimate for all JORC reporting levels.
Mineral Resources are reported inclusive of Mineral Reserves.
Category | Tonnage | Commodity | Grade |
Probable
|
32.5 Mt
|
Silica
|
99.2 %
|
Measured
|
43.12 Mt
|
Silica
|
99.21 %
|
Indicated
|
23.12 Mt
|
Silica
|
99.16 %
|
Inferred
|
9.22 Mt
|
Silica
|
99.1 %
|
Total Resource
|
75.46 Mt
|
Silica
|
99.18 %
|
Commodity Production Costs:
| Commodity | Average |
C1 cash costs
|
Silica
|
......
|
Assumed price
|
Silica
|
......
|
* According to 2021 study / presentation.
Operating Costs:
| Units | 2021 |
Total operating costs ($/t milled)
|
AUD
| 26.9 * |
* According to 2021 study.
2021 Study Costs and Valuation Metrics :
Metrics | Units | LOM Total |
Sustaining CapEx
|
$M AUD
|
......
|
Total CapEx
|
$M AUD
|
......
|
Total OpEx
|
$M AUD
|
......
|
Royalty payments
|
$M AUD
|
......
|
Net revenue (LOM)
|
$M AUD
|
......
|
EBITDA (LOM)
|
$M AUD
|
......
|
Pre-tax NPV @ 8%
|
$M AUD
|
......
|
After-tax NPV @ 8%
|
$M AUD
|
......
|
Pre-tax IRR, %
|
|
......
|
After-tax IRR, %
|
|
......
|
Pre-tax payback period, years
|
|
......
|
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Corporate Filings & Presentations:
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