Diatreme currently holds five mineral exploration permits which cover the large Quaternary sand dune field stretching between Cape Bedford/Nob Point in the south to Cape Flattery/Point Lookout in the North, part of which is currently being mined by Cape Flattery Silica Mines Pty Ltd, a subsidiary of Mitsubishi Corporation, which is the world’s largest silica sand mining operation. This expansive tenement holding includes the Northern Silica Project (NSP), Galalar Silica Sand Project (GSSP), Cape Flattery Silica Project (CFSP) and the Western Resource Area (WRA).

Diatreme’s silica resource base interest is 463.7Mt (100% basis) across its silica sand projects, one of the largest high-grade silica sand resources in Australia.

The NSP has a large mineral resource base of 235Mt (100% basis). The NSP Scoping Study indicated the potential targeted production rate of 5Mtpa could be sustained for 25 years. Metallurgy tests demonstrated the project’s ability to produce a high purity, low iron silica product, highly suitable for solar panel manufacturers’ sheet glass requirements.
Diatreme is currently progressing its pre-feasibility study for the NSP and advancing the regulatory approval process.

A Maiden Mineral Reserve estimate (JORC 2012) for the GSSP was announced in November 2021, comprising 32Mt, sufficient for an estimated 18 years of initial operations (at 1.65Mt ore processed per annum). The total JORC Mineral Resource is estimated at 75Mt.
Benchtop metallurgical testing and bulk test work results have confirmed the project’s ability to produce a world class silica sand product at 99.9% SiO₂, meeting the requirements for high-end glass and solar panel manufacturing.
On 6 December 2023, Diatreme announced a maiden resource estimate for the NSP’s Western Resource Area (WRA) comprising 91.7Mt of high-purity silica sand, which may be incorporated into the NSP mine plan in the future. The Company continues to focus its resources on developing the NSP. Future exploration and resource definition programs will be designed to determine the economics of establishing WRA as a potential satellite operation to the NSP.

Sibelco Asia Pacific, a subsidiary of global material solutions group SCR - Sibelco is Diatreme’s joint venture development partner on its silica projects portfolio in Northern Queensland. Sibelco Asia Pacific completed its first tranche investment (A$11 million) in December 2022 to acquire a 9.99% interest in the Cape Silica Joint Venture, with a second investment tranche completed in October 2023 (A$24 million) taking its total interest to 26.8%, with the balance (73.2%) held by Diatreme. Sibelco Asia Pacific has also contributed A$13.97 million via a strategic placement in Diatreme completed in June 2022.

The recently acquired CFSP has an Ore Reserve of 47Mt with a total JORC Mineral Resource estimated at 61Mt (refer MLM’s ASX announcement dated 15 November 2023). The project and in particular its Updated DFS is under review with a view to capturing the potential synergies between it and Diatreme’s flagship NSP to facilitate shared infrastructure and reduced CAPEX.

Diatreme’s silica resources will contribute to global decarbonisation by providing the necessary high-grade silica for use in the solar PV industry. Diatreme has a strong focus on ESG, working closely with its local communities and all other key stakeholders to ensure the long-term sustainability of its operations, including health, safety and environmental stewardship.