Carbine Advances Muchea West Mining Licence Amid Environmental Preparations
Carbine Resources reports steady progress on its Muchea West silica sand mining licence application, engaging environmental consultants to support upcoming approvals. The company also continues exploration efforts at its Down South project.
- Muchea West mining licence application recommended for grant since April 2023
- Environmental consultant Greenprint Solutions engaged for impact assessments
- Muchea West hosts 110Mt resource at 99.65% SiO2 with exploration target up to 938Mt
- Down South Silica Sand Project exploration ongoing with satellite image analysis
- Quarterly exploration expenditure of $42k and cash reserves of $451k
Progress on Muchea West Mining Licence
Carbine Resources Limited (ASX: CRB) has reaffirmed its commitment to securing the mining licence for its flagship Muchea West Silica Sand Project, located just 40km north-northeast of Perth. The mining licence application (MLA70/1422), lodged in December 2022, was recommended for grant by regulators in April 2023. Since then, Carbine has been actively engaging with the Department of Mines, Industry Regulation and Safety (DEMIRS) and the Department of Defence to expedite the licence approval process.
During the December 2024 quarter, Carbine signed access agreements with the Department of Defence, a critical step given the proximity of the project area to defence land. These negotiations underscore the complexity of advancing mining projects near sensitive areas but also demonstrate Carbine’s proactive approach to stakeholder management.
Environmental Work Gains Momentum
In parallel with regulatory engagement, Carbine has engaged Greenprint Solutions, an environmental, social, and governance (ESG) consultancy, to review existing environmental surveys and assess impacts on conservation-significant species. This work aims to refine the project disturbance footprint and prepare for the State and Commonwealth environmental approvals that will follow the mining licence grant.
The preliminary report from Greenprint Solutions is under internal review, with further studies anticipated. This environmental groundwork is essential to mitigate risks and align the project with increasingly stringent sustainability expectations in the mining sector.
Resource and Exploration Highlights
The Muchea West Project boasts a substantial mineral resource of 110 million tonnes at an exceptionally high silica grade of 99.65% SiO2. Additionally, the company estimates an exploration target ranging from 762 to 938 million tonnes at an average grade between 99.6% and 99.8% SiO2, positioning Carbine as a leading player in Australia’s silica sand sector.
Preliminary metallurgical testwork indicates that a simple wet attrition process can significantly reduce iron oxide and other impurities, enhancing the quality of the silica sand for industrial applications.
Meanwhile, Carbine’s Down South Silica Sand Project, located near Bunbury, continues to be a focus for exploration. The company is analyzing high-resolution satellite imagery and consulting with regional experts to refine project planning and strategy. This project covers 58 square kilometres and has historical exploration data indicating potential for silica sand extraction.
Financial Position and Outlook
During the quarter, Carbine incurred $42,000 in exploration and evaluation expenditure, primarily related to project evaluation, environmental work, and tenement costs. The company ended the quarter with $451,000 in cash reserves, providing an estimated 2.8 quarters of funding at current expenditure levels.
Payments to related parties, including director and consulting fees, amounted to $100,000 for the quarter. Carbine has not reported any new equity raises or borrowings during this period.
Looking ahead, the company’s priority remains the grant of the Muchea West mining licence, which will unlock the pathway to development and potential production. The ongoing environmental assessments and stakeholder engagement will be critical to achieving this milestone.
Bottom Line?
Carbine’s steady regulatory and environmental progress at Muchea West sets the stage for a pivotal phase in its silica sand ambitions.
Questions in the middle?
- When can investors expect a definitive timeline for the Muchea West mining licence grant?
- What additional environmental studies might be required before approvals are secured?
- How will Carbine finance the transition from exploration to development if the licence is granted?
