METALLICA Minerals (ASX: MLM) has confirmed the presence of high-purity silica sands at its 100pc-owned Cape Flattery silica sands project in Northern Queensland after the completion of an auger sampling program.
The exploration program consisted eight hand-augured holes to an average depth of 4.75m on the eastern target area of the tenement, and the majority of the samples returned intervals of 99pc silica oxide, while drill intercepts averaged between 96.1pc and 99.1pc.
Sampling was completed at about 400m spacing along existing tracks, and the company said that priority drill sites targeted sand dunes “near established and or potential export infrastructure areas”.
Silica sands are used in a range of industries such as glassmaking, foundry casting, water filtration, chemicals and metals, as well as hydraulic fracturing and hi-tech applications such as the production of solar panels.
IMARC forecasts have predicted the demand for silica sands to increase at a compounded annual growth rate of 7.2pc through to 2022, with annual revenues expected to hit US$9.6b.
Metallica said that its sampling program would establish access to the sand dune target area, confirm interpretations of the extent and potential thickness of the targeted sand dune, conduct low-impact sampling and confirm that the sand quality was similar to the Cape Flattery sand currently on the market.
Mitsubishi’s Cape Flattery mine is the world’s largest silica sands mine.
Metallica chief executive Scott Waddell said that the company was excited for the next steps, which included establishing a maiden silica sand resource.
“Metallica is very encouraged by these results that further confirm the potential of the CFSS project, expected to assist in the process for establishing an infrastructure solution to export silica sand from Cape Flattery,” he said.
