Australian Silica Quartz Group reports promising gold intersections at Koolyanobbing Metals Project and progresses its Quartz Hill silica project with positive metallurgical results and strategic funding.
- Encouraging gold drill results at Koolyanobbing Metals Project with high-grade intersections
- Completion of metallurgical testwork and ongoing Scoping Study at Quartz Hill MGSi Project
- $1 million funding received from Quinbrook affiliate for Quartz Hill development
- Strong financial position with $1.3 million cash and no debt
- Pending assay results from recent drilling and ongoing exploration activities
Koolyanobbing Metals Project Delivers Early Gold Success
Australian Silica Quartz Group Limited (ASQ) has reported highly encouraging results from its recent drilling campaign at the Koolyanobbing Metals Project (KMP) in Western Australia. The initial 16-hole reverse circulation (RC) program, totaling 1,479 meters, revealed significant gold intersections including 4 meters at 4.4 g/t gold from 8 meters depth at the Golden Wishbone target, and 8 meters at 0.7 g/t gold from 60 meters at the Emu target. These results confirm the prospectivity of the underexplored Koolyanobbing Shear Zone and Greenstone Belt for gold mineralisation.
Following this, ASQ completed a further 31-hole, 1,988-meter close-spaced aircore and RC drilling program at Golden Wishbone, with assay results pending. The company is actively compiling aeromagnetic datasets to refine target generation and plans additional drilling, soil sampling, and surface detecting to delineate mineralisation further.
Progress on Quartz Hill MGSi Project Bolstered by Strategic Funding
In Queensland, ASQ continues to advance its Quartz Hill Metallurgical Grade Silicon Quartz (MGSi) Project. The company completed metallurgical testwork on core samples, demonstrating the potential to produce high-quality quartz lump suitable for silicon metal feedstock. These positive outcomes support the ongoing Scoping Study, which aims to evaluate a 300,000 tonnes per annum supply to Quinbrook Infrastructure Partners’ planned polysilicon manufacturing facility in Townsville.
ASQ secured $1 million in funding from Private Energy Partners Pty Ltd, a Quinbrook affiliate, under a Memorandum of Understanding (MOU) that includes an offtake agreement for up to 10 million tonnes of MGSi quartz over 31 years. This strategic partnership not only provides capital for exploration and development but also aligns ASQ with a major downstream user, enhancing project viability.
High Purity Quartz and Silica Sand Projects Show Promise
Beyond Quartz Hill, ASQ is progressing research and development on its high purity quartz projects in Queensland and Western Australia. Advanced metallurgical trials, including hot chlorination, are underway to assess the suitability of ASQ’s quartz for crucible-grade applications. Meanwhile, silica sand projects near Albany and Gingin in Western Australia continue to demonstrate high-grade silica with low impurities, supporting potential future export operations.
Financial Stability Supports Ongoing Exploration
ASQ’s financial position remains solid with $1.3 million in cash at the end of December 2024 and no debt. The company also holds two unencumbered rural properties valued at approximately $3.5 million. Quarterly operating expenditures totaled $407,000, primarily directed towards exploration and corporate costs. The company’s management emphasizes prudent capital allocation to maximise shareholder value as it advances multiple projects.
Looking ahead, ASQ plans to integrate pending assay results from recent drilling, continue aeromagnetic interpretation, and progress the Quartz Hill Scoping Study and mining lease application. The company’s diversified portfolio across metals and silica sectors positions it well to capitalise on evolving market demands.
Bottom Line?
ASQ’s blend of promising drilling results, strategic partnerships, and financial discipline sets the stage for pivotal developments in 2025.
Questions in the middle?
- What will the pending assay results from the recent Golden Wishbone drilling reveal about the extent of gold mineralisation?
- How will the outcome of the Quartz Hill Scoping Study influence the timeline for mining lease application and project financing?
- What are the prospects for ASQ’s high purity quartz projects to achieve commercial-scale production for specialty markets?