Diatreme Resources has announced a 30 per cent increase to the mineral resource estimate for its Galalar silica project in Far North Queensland.

“This is another welcome boost for our Galalar project, demonstrating its potential to become a long‐term silica sand operation that generates valuable new jobs and investment for the benefit of the local community, including the directly affected native title holders,” Diatreme chief executive officer Neil McIntyre said.

“Galalar will be transformational for Hope Vale and Cooktown, and together with potential downstream processing
opportunities in Townsville has the potential to give the whole region a boost in its post‐pandemic recovery.”

The resource estimate for the project has risen to 61.9 million tonnes, with the total resource covering an area of about 335ha with an average thickness of 18.8m.

The company has identified large low-iron areas of the resource, which it plans to target for initial mining to ensure target product specifications are achieved on first production.

The latest resource expansion follows the release of an economic study showing the project’s potential to generate
more than 110 full‐time jobs.

Diatreme said the project could inject about $23‐24 million in the construction phase and up to $42 million in the operational phase for the benefit of Hope Vale, Cooktown and the surrounding region, with estimated total revenue of $80 million per annum.

The company has earmarked Townsville for a beneficiation plant for silica sand from the Galalar project and is also looking into the feasibility of working with potential partners to establish a glass manufacturing plant in the city to feed the solar panel market.

The company announced the receipt of the final terms of reference for the project’s environmental impact study (EIS) late last year.

A draft EIS is now underway, with Diatreme targeting receiving the necessary environmental approvals and mining lease in the fourth quarter of 2021 and potential first production in 2022.

“Galalar’s latest upgrade has only increased its attractiveness as a secure and stable supplier of valuable, high quality silica for the booming solar PV market,” Mr McIntyre said.

“We look forward to playing our part in powering the clean energy revolution and delivering new economic opportunities for the people of North Queensland.”