Metallica Minerals Limited (ASX: MLM) has announced the results of the definitive feasibility study (DFS) for its wholly-owned Cape Flattery Silica Sand project (CFS).
The DFS has built upon the 2022 pre-feasibility study and confirms the CFS project’s potential as a low-cost, long-life, high-purity silica sand operation which could achieve consistently attractive profit margins given strong current and forecast market dynamics in the Asia-Pacific region.
Metallica Minerals executive chairman, Theo Psaros said, “The DFS confirms Cape Flattery Silica sand’s status as a low-cost, high purity silica sand project that can achieve attractive profit margins. Combined with our location in far north Queensland and support from the Queensland government’s critical minerals strategy, Metallica is well positioned to become a leading provider of high purity silica sand to the booming Asia-Pacific market.”
The DFS forecasts a life of project cash revenue of A$2,910M, returning pre-tax net present value of A$437.3M, and an internal rate of return of 32.2%.
Metallica has reported that the initial capital cost of the CFS project is estimated to be A$165M, including a 10% contingency of A$13.6M, with a payback period from commencement of production of 2.85 years.
The ore reserve of 47Mt @99.18% SiO₂, within a mineral resource of 49.5Mt @99.19% SiO₂, is to be processed over a 25 year project life yielding high quality silica sand of 1.5Mt per annum.
Additionally, a purpose-built jetty is planned to be constructed to allow barge loading and transshipping operations. Importantly, this infrastructure is located within the port limit of Cape Flattery.
The company has said that the development of the CFS project will deliver employment, apprenticeship training, and new business opportunities to the townships of Hope Vale and Cooktown, particularly the local indigenous communities.
The project will contribute to and benefit from the Queensland government’s critical minerals strategy which supports development of new economy minerals projects in north Queensland.
Mr. Psaros continued” The project’s development will be a major boost to the far north Queensland economy, leveraging its strategic location within the declared Cape Flattery port area and adjacent to a world-renowned source of high purity silica sand.”
To find out more, please visit www.metallicaminerals.com.au
