Cape Flattery

Cape Flattery Silica Sands Project is located approximately 200 km north of Cairns, Queensland. The Project is 100% owned by Metallica Minerals and covers 56km2 of exploration tenure.

In April 2018 the company completed a low-cost maiden sampling program which identified three target areas with silica oxide (SiO2) percentages greater than 99%. These target areas form the basis of the Exploration Target* of 20-100Mt of high purity silica sands, with insitu quality ranging between 96.9% and 99.6% SiO2.

During the June 2019 quarter, the Company commenced an information gathering process to access the status of the Cape Flattery Silica Sands Project which is adjacent to the world class Cape Flattery Silica Sand mining and shipping operation owned by Mitsubishi.

Following this process, the company undertook an initial high-level options work, including approved planning works, to access what is required to better understand the silica sand deposit size and quality, as well as evaluate options on how a silica sand mine could be developed.

About Silica Sands

High purity silica sands are becoming more sought after, with the global market growing at a compound annual growth rate (CAGR) of around 6% between 2010 and 2017, according to industry research firm IMARC Group. In 2017, a total of 188Mt of silica sand was produced globally.

The growth has been driven by silica sand’s applications across a broad range of industries including glass-making, foundry casting, water filtration, chemicals and metals, along with the hydraulic facturing process and an increasing amount of hi-tech products including solar panels. For example in the global glass-making industry, one of the major consumers of high purity silica, has experienced significant growth recently from the construction and automotive industries.

Forecasts have demand for silica sands increasing at CAGR of 7.2% through to 2022, with annual revenues reaching US$9.6 Billion.

*Exploration TargetThe potential quality and grade of the Cape Flattery Silica Sand deposits are conceptual in nature. There is insufficient information at this time to define a mineral resource and there is no certainty that further exploration will result in the determination of a mineral resource in these areas.