Australian Silica Quartz (ASX:ASQ) has launched a reverse circulation (RC) drilling program at its Queensland Quartz Hill Project, which is prospective for metallurgical-grade silicon (MGSi) quartz lump feedstock.
The company, which has a market capitalisation of $15.20 million, says the planned program will comprise 2,000m of RC drilling and is anticipated to take about 2 weeks to complete.
Between 15 to 20 angled holes of up to 150m in length will be drilled, predominantly on the upper flanks of the Quartz Hill ridge.
Australian Silica says selected samples will then be analysed for trace geochemistry and other physical properties specific to the metallurgical grade silicon quartz lump feedstock applications.
This is the first subsurface exploration work completed on the project, and Australian Silica says it marks the start of ongoing work planned in the area under a recent Project Development Heads of Agreement with Private Energy Partners (PEP).
PEP has paid Australian Silica $1 million for the exclusive right to purchase 10 million tonnes of MGSi quartz from Quartz Hill at a 10% discount to market prices or such a price that it would constitute a ‘fair market return’ to Australian Silica.
Australian Silica Quartz’s share price increased by 20.37% to $0.065 on Thursday afternoon.
The Quartz Hill Project is located near the town of Mount Surprise, 200km southwest of Cairns in North Queensland, Australia.
Australian Silica Quartz is an ASX-listed company focused on its silica sands and hard rock quartz projects in Western Australia and Queensland. As of 30 June 2023, the company had $2.96 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Australian Silica Quartz
