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Australia
Galalar Project

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 Location:
17 km E from Hope Vale, Queensland, Australia

  Project Contacts:
Unit 8
55-61 Holdsworth Street
Coorparoo
Queensland, Australia
4151
Phone  ...  Subscription required
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  • Overview
  • Owners
  • Geology
  • Mining
  • Processing
  • Production
  • Reserves
  • Costs & Financials
  • Personnel
  • Filings & News

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Overview

StagePermitting
Mine TypeOpen Pit
Commodities
  • Silica
Mining Method
  • Truck & Shovel / Loader
Processing
  • Spiral concentrator / separator
  • Attrition
  • Wet Screening
  • Gravity separation
  • Magnetic separation
Mine Life15 years (as of Jan 1, 2019)
The sand from the Galalar project is some of the world’s purest.

Based on our current timeline, Diatreme aims to complete the necessary permitting for the Galalar project by the end of 2022, leading to the start of procurement and construction early in 2023.
Latest NewsDiatreme Resources Limited: Transformational Strategic Partnership & Placement with Global Material Solutions Leader Sibelco     June 27, 2022


Owners

Source: p. 1
CompanyInterestOwnership
Diatreme Resources Ltd. 87.5 % Indirect
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.

Deposit Type

  • Mineral sands


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.


Mining Methods

  • Truck & Shovel / Loader


Summary:

The mining operation will commence with the removal of large vegetation on the mining areas ahead of the planned mining operation using a bulldozer. Where possible vegetation will be pushed or transported off mining areas and stockpiled for future use in rehabilitated areas.

The average depth of the sand to be mined is greater than 15m and the average area to be prepared for mining averages less than four hectares per year.

The exposed silica ore will be excavated using a front end loader and loaded directly into a hopper-feeder unit at a rate of 138t per hour for 19.2 hours per day and 360 days per year.


Crushing and Grinding


Processing

  • Spiral concentrator / separator
  • Attrition
  • Wet Screening
  • Gravity separation
  • Magnetic separation

Flow Sheet: Subscription required

Summary:

The exposed silica ore will be excavated using a front end loader and loaded directly into a hopper-feeder unit at a rate of 138t per hour for 19.2 hours per day and 360 days per year. The average daily operating hours allows for maintenance and operational downtime, and the days per year includes an allowance of 5 public holidays that would not be worked. The hopper-feeder unit will screen out oversize rubbish and pump the sand to a mobile wet spiral plant in slurry form at a controlled feed rate of 138 tonnes per hour (tph).
The hopper-feeder unit will include:
• Coarse screening at 50mm aperture;
• Hopper and feed conveyor;
• Water supply pipeline;
• Wet trommel screening at 1mm aperture;
• Constant density sump;
• Slurry pump and pipeline.

The slurry from the hopper-feeder unit will be pumped into a controlled density tank at the wet processing plant. Processing equipment will include spirals, attritioners, classifiers, and magnetic sep ........

Recoveries & Grades:

CommodityParameterAvg. LOM
Silica Recovery Rate, % 79
Silica Head Grade, % 99.2

Projected Production:

CommodityUnitsAvg. AnnualLOM
Silica kt 75011,250

Operational Metrics:

Metrics
Ore tonnes mined, LOM 14.3 Mt *
Annual ore mining rate 950,000 t *
* According to 2019 study.

Reserves at March 15, 2021:
Mineral resources Cut-off - 98.5% SiO2.

CategoryTonnage CommodityGrade
Measured 35.5 Mt Silica 99.27 %
Indicated 20.6 Mt Silica 99.2 %
Inferred 5.8 Mt Silica 99.21 %
Total Resource 61.9 Mt Silica 99.24 %

Commodity Production Costs:

CommodityUnitsAverage
Cash costs Silica AUD  ......  Subscription required *
Assumed price Silica USD  ......  Subscription required *
* According to 2019 study / presentation.
Subscription required - Subscription is required.

Operating Costs:

Units2019
OP mining costs ($/t milled) AUD 2.7 *
Processing costs ($/t milled) AUD  ......  Subscription required
* According to 2019 study.
Subscription required - Subscription is required.

2019 Study Costs and Valuation Metrics :

MetricsUnitsLOM Total
Initial CapEx $M AUD  ......  Subscription required
Sustaining CapEx $M AUD  ......  Subscription required
Gross revenue (LOM) $M AUD  ......  Subscription required
EBITDA (LOM) $M AUD  ......  Subscription required
Pre-tax NPV @ 10% $M AUD  ......  Subscription required
Pre-tax NPV @ 7% $M AUD  ......  Subscription required
Pre-tax IRR, %  ......  Subscription required
Pre-tax payback period, years  ......  Subscription required
Subscription required - Subscription is required.

Heavy Mobile Equipment:

Mine Management:

Job TitleNamePhoneEmailProfileRef. Date
....................... Subscription required ....................... Subscription required ....................... Subscription required ....................... Subscription required Subscription required Jul 14, 2021
Subscription required - Subscription is required.

Staff:

Total WorkforceYear
Subscription required 2019

Corporate Filings & Presentations:

DocumentYear
................................... Subscription required 2021
................................... Subscription required 2021
................................... Subscription required 2020
................................... Subscription required 2019
Subscription required - Subscription is required.

News:

NewsDate
Diatreme Resources Limited: Transformational Strategic Partnership & Placement with Global Material Solutions Leader Sibelco June 27, 2022
Diatreme Resources Expands Galalar Silica Resource By 22% September 20, 2021

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