Allup Silica (ASX:APS) is seeking to capitalise on the burgeoning silica sand sector as it rolls out a concurrent investigation of several project areas in Western Australia and the Northern Territory.
Speaking to Mining.com.au on the sidelines of the Brisbane Mining Investor Conference, Managing Director Andrew Haythorpe says while little may be known about silica sand in the wider market, it is growing at a rapid rate.
“I think moving forwards over the next few years, it’s going to be a very exciting space, because 5 years ago, let’s say silica sand simply didn’t exist in Australia. Now we’ve got half a dozen players sort of playing space, so it’s in that early stage first few years, and as the various companies move forwards in the different states of Australia, a few will hopefully get through the shoot, become successful, share prices go up, shareholders happy, investors looking for new opportunities in the silica space. And off we go.”
The MD tells this news service that the past few years have been ‘encouraging’ for Allup as it has embarked on the early stages of applications and processes while also listing in May 2022. Since floating, he says, Allup has received a lot of unsolicited customer interest despite its projects only being early stage.
Haythorpe adds that Allup has been off and running with its assets and target areas in both southern and northern locations of Western Australia and in the Northern Territory. It is continuing the permitting and approval process on all its projects. A drill program is due to be launched soon, and Allup is awaiting drill results from a program at its Sparkler Project, located in south-western region of Western Australia, about 150km from the Albany Port.
While the company is working on all 3 of its projects in parallel, at Sparkler in particular the company is now engaging with landholders, local communities, and is working with the local native title groups, and potential customers and ports at the same time.
The MD adds: “So it’s sort of multipronged approach. We’ve got 3 projects. We don’t know which one will be the first one to get off and running, but our aim is to get there as quickly as we can.”
“We’ve got 3 projects. We don’t know which one will be the first one to get off and running, but our aim is to get there as quickly as we can”
Allup’s strategy is based on the concurrent investigation of several project areas, each with its own set of logistics and port options. It considers that this strategy of multiple projects, multiple processing facilities, and multiple ports, reduces the risks associated with the variables and approvals required to transition from exploration into commercial production. The company is exploring for several silica sand deposits within each of the individual project locations as Allup believes it will further mitigate any localised risks that may emerge.
One of the dynamics of silica sand exploration is that regardless of the underlying deposit potential, or the estimated mineral resource size, typically the limiting factors relating to production are more likely to be associated with logistics, port access and shipping availability. Multiple projects, with multiple port access, affords the benefits and opportunities associated with operational scale because of the advantages multiple locations give, the MD adds.
On 20 March, Allup released an update on ongoing exploration activities at its Pink Bark and Dune Buggy Silica Sand Projects in Western Australia. Reconnaissance hand auger campaigns over the Pink Bark and Dune Buggy Projects have been completed to verify and add geological context to the current explorative work, outlining high priority targets for follow-up resource drilling. The reconnaissance trips were conducted to advance discussions with landholders, whilst also initiating discussions and engaging with local heritage and environmental groups.
Allup says significant progress was made with local Native Title and Heritage groups, with approvals issued for Pink Bark and surveys planned across the Sparkler and Dune Buggy projects.
Workflows are progressing for a Mining Lease Application (MLA) to be submitted, to the Department of Mines, Industry Regulation and Safety (DMIRS) for the first silica sand mine within the Sparkler Silica Sands Project before the end of Q1 2023. The proposed MLA area was chosen to support Allup’s rapid development strategy and to minimise roadblocks. The proposed MLA is entirely contained within a single property, over which Allup has a Land Access and Compensation Agreement and maintains a strong working relationship with the property owners. The proposed disturbance footprint consists of cleared farmland, which eliminates the need to clear any native vegetation.
The MD continues: “Australia has been an exporter of silica sand for a long time, but ironically, the 2 sort of best known ones, one in far North Queensland, the other one not so well known in southwest West Australia, 100% owned by Japanese and private. So, the Australians have sold out their silica sand interests for the last 40 years to foreign nationals, and the foreign nationals are very happy and very quiet and just go about their business. Definitely, watch this space.”
Write to Adam Orlando at Mining.com.au
Images: Allup Silica Ltd
