Cape poised for silica mine boom as project gets ‘significant’ status
An emerging Cape York silica miner could be granted a major water allocation after being deemed a state significant project by Queensland’s Department of Regional Development.
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AN emerging Cape York silica miner could be granted a major water allocation after being deemed a state significant project by Queensland’s Department of Regional Development.
Metallica Minerals Limited has staked a high quality claim in the Cape Flattery area, north of Cooktown, and last October upgraded an ore resource to 53.5 million tonnes.
The lease adjoins an existing operational lease operated by Mitsubishi Corporation since 1967.
Last week in an update to shareholders, the ASX-listed company announced under the Cape York water plan, Queensland’s Department of Regional Development, Manufacturing and Water declared the project’s regional significance status – meaning the company was eligible to apply for 25,000 megalitres of unallocated water.
Metallica will make a submission aimed at demonstrating the proposed water draw would comply with the outcomes prescribed under the water plan.
Metallica executive chairman Theo Psaros welcomed the development.
“As it recognises the contribution our project is planning to make to the Cape Flattery region,” he said.
“To achieve this status the project had to demonstrate the benefits it would bring to the region, particularly in diversifying the regional economy through delivery of employment opportunities.
“In addition, the status represents an important milestone as we near the finalisation of the CFS project’s pre-feasibility study due for release in March 2022.”
Booming global demand for silica used as a semiconductor in photovoltaic cells in the production of solar panels is driving expanding Cape York resource exploration.
Another silica miner with hope to extract high quality sand from the area is Diatreme Resources who last week announced plans to expand its silica sand exploration area at Cape Flattery.
Diatreme’s chief executive officer Neil McIntyre told shareholders there was the potential for multiple mining operations at the site.
“Our immediate priority remains the delivery of the Galalar Silica Project in the southern part of our tenement area, which we are currently advancing through permitting and approvals towards mining,” he said.
“However, our late 2021 and early 2022 northern exploration programs have allowed us to advance quickly on resource assessment and project development planning on our northern tenement area, with the potential for multiple mining operations of high purity silica.
“Working in partnership with the Traditional Owners, these new discoveries will only further enhance the potential of our projects to deliver long-term benefits to all stakeholders, including new jobs and regional investment, while positively contributing to the decarbonisation of the global economy.”
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Originally published as Cape poised for silica mine boom as project gets ‘significant’ status
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