Diatreme Resources completes scoping study of Northern Silica Project

An environmental battle is brewing as a proposed Cape York mega mine progresses toward the feasibility study stage at an area that could be added to the National Heritage List.

Emerging silica miner Diatreme Resources plans to advance to the feasibility study stage of its Cape York Northern Silica Project following completion of a scoping study which revealed a strong economic export path.

It’s not yet clear, however, how a pending National Heritage listing will impact the mine being realised.

According to the Brisbane-based miner, the scoping study highlighted the Far North Queensland project’s potential to become a leading supplier of low-cost, premium quality, low- iron, silica sand products.

Drilling under way as Diatreme Resources Limited (ASX: DRX) expands its Galalar Silica Resource mining operations in Cape York. Picture: Supplied

High-quality silica is a key component used in the manufacture of photovoltaic glass markets.

Technical studies, environmental impact assessments, permits and approvals will be part of the full feasibility study needed before the project, 20km north of Cooktown, moves into the final investment decision phase.

Diatreme chief executive officer Neil McIntyre said the scoping study showed “extraordinary potential” of the Northern Silica Project.

“Standouts include the project’s large and expanding resource base, strong underpinning economics, pathway to growing export markets and ability to meet the requirements of solar panel sheet glass manufacturers, a market under pressure for new sources of supply,” Mr McIntyre said.

He said the project would also provide “extremely valuable new jobs and investment for the Hope Vale/Cooktown region, focusing on local communities”.

Cape Flattery sand mining operations. Picture: Ports North

Earlier this month, Diatreme Resources conducted an information session on the proposed sand mine for about 100 Hope Vale community members.

Jessica McKechnie-Hart of the Yuwaal Thiithaarr Warra Aboriginal Corporation, who is opposed to mining operations, said none of her traditional owner group had been invited to the community consultation session.

“We are concerned the whole region could become one great big mine and that is what we’re fighting against,” Ms McKechnie-Hart said.

Jessica McKechnie Hart who started the Yuwaal Thiithaarr Warra Aboriginal Corporation. Picture: Supplied

“Sand mines in this area of Cape York are of extreme environmental risk to biosecurity, biodiversity, water quality of both surface water and aquifers and the Great Barrier Reef.

“Diatreme say they are in close contact with traditional owners, they have promised that they would keep in contact with me but there has been absolutely nothing.”

Last month, in a major milestone for the Northern Silica Project, Diatreme lodged an Environment Protection and Biodiversity Conservation Act referral with the federal government’s Department of Climate Change, Energy, the Environment and Water.

Another Diatreme project in the Cape Bedford area, the Galalar Silica Project, is in the final terms of reference stage of development before the public notification of the environmental impact statement step.

Silica stockpiles at the Cape Flattery Silica Mine, operated by Mitsubishi Corp. Picture: Ports North

Binthi Land Holding Group Aboriginal Corporation, concerned about mining and tourism impacts, applied to the federal government for Natural Heritage listing in February 2022, and in May this year, the Binthi Warra clan was successful in having land added to the finalised priority assessment list.

“National Heritage listing is very important to us to develop education for cultural maintenance and recognition for our country to work towards proactive management,” said Ramona McIvor of the Binthi Land Holding Group Aboriginal Corporation.

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Originally published as Diatreme Resources completes scoping study of Northern Silica Project