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Diatreme Resources (ASX:DRX) discovers second silica sand deposit at Si 2 North

ASX News, Materials
ASX:DRX      MCAP $115.1M
10 January 2022 12:34 (AEDT)
Diatreme Resources (ASX:DRX) - CEO, Neil McIntyre

Source: Diatreme Resources / Twitter

Diatreme Resources (DRX) has discovered a second high-grade silica sand deposit within the northern area of the Si 2 North Project.

The Si 2 North Project lies in Far North Queensland, roughly 53 kilometres north of Cooktown.

The project has a maiden inferred mineral resource of 53.2 million tonnes at 99.32 silicon dioxide, which was estimated by independent experts Ausrocks.

In November, 47 vacuum drillholes — totalling 1055.6 metres — were drilled to define this inferred mineral resource estimate.

The new discovery includes high purity deep drilling results with significant intersections of 42 metres at 99.39 per cent silicon dioxide and 30 metres at 99.62 per cent silicon dioxide.

Given the nature of the deposit and its proximity to existing infrastructure, Diatreme is undertaking preliminary investigations to lodge a mining lease application.

This application will cover the northern section of the project and speed up a second major high-purity silica operation.

CEO Neil McIntyre said the finding showed the potential for a second new silica sand mine that could generate new jobs and investment for Far North Queensland.

“2022 has started on an extremely bright note for Diatreme with this further new discovery showing the benefits of our exploration efforts,” Mr McIntyre said.

“Our Galalar Silica Project in the southern section of our tenement is advancing through its permitting and approvals process and remains our immediate development priority, however, this new maiden inferred resource in the northern section of our exploration tenement of [approximately] 53 million tonnes shows Diatreme has the potential for multiple operations within its extraordinarily prospective tenement area.”

Shares in Diatreme were down 2.17 per cent on the market with shares trading at 2.3 cents at 12:37 pm AEDT.

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