Metallica Minerals (ASX:MLM) will meet with ‘prospective customers’ in Asia amid a growing interest in ‘high purity’ silica sand from its wholly owned Cape Flattery Project in North Queensland.
The $19.19 million market capitalisation company’s Commercial General Manager Sam Fisher will travel to Asia. The visit follows the company in September 2023 supplying prospective customers with product from bulk metallurgical tests at Cape Flattery.
Early stage discussions on offtake and market support are ongoing while Metallica continues to develop an in-depth understanding of the key drivers of the growing Asia Pacific seaborne silica sand market, through engagement with processors, traders, and prospective customers.
Meanwhile today (12 February 2024), Metallica says it’s also in discussions with the Queensland government’s Office of Coordinator General on a draft environmental impact assessment (EIS) terms of reference, which are anticipated to begin later this month.
Consultants have been appointed to begin the EIS process which will begin in March and be completed by Q3 2024 alongside a social impact assessment.
Discussions with the state government are set to take place after the company received acceptance of the variation to the Cape Flattery Project from the Department of Climate Change, Energy, the Environment and Water (CCEEW).
The variation sought an increase in production to up to 4 million tonne per annum with any further conditions.
Executive Chairman Theo Psaros says: “We were pleased that CCEEW has accepted a variation to our original proposal with no additional action taken under section 156B of the Environment Protection and Biodiversity Conservation Act (1999). Their decision has been published on the CCEEW website.”
Meanwhile, market development activities are continuing with multiple parties.
On 31 January 2024, the Australian government, via the Australian Trade and Investment Commission, released an updated Critical Minerals Prospectus which showcases investment ready critical minerals projects, including the Cape Flattery Project.
Metallica Minerals is focused on developing Cape Flattery adjacent to the Cape Flattery Silica Sand mining and shipping operation owned by the Mitsubishi Corporation.
As of 30 December 2023, Metallica Minerals had $4.821 cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Metallica Minerals