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Diatreme Resources (ASX:DRX) expands Galalar mineral resource by 30pc to 61.9Mt

Materials
ASX:DRX      MCAP $74.59M
17 March 2021 15:00 (AEST)
Diatreme Resources (ASX:DRX) - CEO, Neil McIntyre

Source: Diatreme Resources

Once again, Diatreme Resources (DRX) has increased the mineral resource estimate for its Galalar Silica Sands Project in northern Queensland.

The total mineral resource has expanded by 30 per cent from 47.5 million tonnes to 61.9 million tonnes at 99.24 per cent silicon dioxide.

Prior to this expansion, Diatreme had already increased Galalar’s maiden mineral resource by 25 per cent in May 2020. It went from being 30.9 million tonnes in February to 47.5 million tonnes in May.

“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,” CEO Neil McIntyre said.

The new measured, inferred and indicated resource covers approximately 335 hectares with an average thickness of 18.8 metres — 99 per cent of which falls within the mining lease application area.

Additionally, Diatreme has discovered that large sections of the resource area contain low iron oxide. The company is conducting detailed modelling to potentially optimise the resource and start-up mining plan.

“Galalar’s latest upgrade has only increased its attractiveness as a secure and stable supplier of valuable, high-quality silica for the booming solar photovoltaic market,” Neil added.

Diatreme’s vision for its silica sands project is to be a key supplier of clean energy for people in Queensland.

The company is working towards securing another mining lease, as well as regulatory and environmental approvals, with first production planned for 2022.

Company shares are up 4 per cent and are trading at 2.6 cents at 2:42 pm AEDT.

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