Galalar scoping proves positive for Diatreme
PERTH (miningweekly.com) – A scoping study into the Galalar silica project, in far north Queensland, has estimated a price tag of A$24.4-million to develop the project into a 750 000 t/y project with an initial mine life of 15 years.
ASX-listed Diatreme on Monday reported that the project was estimated to have a pre-tax net present value of A$231-million and an internal rate of return of 150%, with an estimated capital pay-back of only eight months.
Diatreme CEO Neil McIntyre said that the scoping study results demonstrated the project’s potential to make a major contribution to far north Queensland’s economic future.
“These results are tremendous, highlighting the opportunity that exists at Galalar to create a long-lasting silica sand mine that creates new jobs and other economic benefits for the whole community, in partnership with the traditional owners.
“Having recently signed a memorandum of understanding for offtake from the project, there is already significant market interest in the product given the demand growth from Asia’s rapidly expanded solar PV market. With added opportunities to enhance these already excellent financial outcomes, we look forward to advancing this project towards near-term development and creating an environmentally friendly and sustainable operation.
Diatreme has also identified potential improvements that could offer further enhancements to project economics, including developing a purpose-built barge ramp closer to the mine site, which would offer an estimated A$20/t to A$25/t cost savings.
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