Industrial Minerals Ltd reports encouraging progress in its High Purity Quartz projects, including promising testwork results and strategic marketing efforts in China, supported by a recent $2.3 million capital raise.
- Preliminary testwork on Pippingarra pegmatite shows promising high purity quartz potential
- Resource definition drilling underway at Pippingarra and Mukinbudin projects
- Successful $2.3 million Placement and Share Purchase Plan completed
- Strategic marketing visit to China opens collaboration and processing opportunities
- Company exploring quartz stone direct shipping ore (DSO) market alongside HPQ development
Progress on High Purity Quartz Projects
Industrial Minerals Ltd (ASX: IND) has delivered a solid update for the December 2024 quarter, highlighting significant strides in advancing its High Purity Quartz (HPQ) portfolio. Central to this progress is the Pippingarra Project in Western Australia, where preliminary beneficiation testwork on pegmatite samples has yielded encouraging results. These early-stage findings suggest the material's amenability to producing high purity quartz suitable for advanced industrial applications, though further validation is pending.
Complementing this, the company has mobilised reverse circulation (RC) drilling rigs to extend resource definition efforts at both Pippingarra and the Mukinbudin HPQ projects. The integration of Deep Ground Penetrating Radar (DGPR) technology aims to refine geological targeting and optimise drilling efficiency, with a maiden Mineral Resource Estimate for Pippingarra expected by the end of February 2025.
Strategic Engagements in China
Industrial Minerals has also intensified its marketing and business development activities in China, a key global hub for quartz processing and consumption. A recent visit to the Lianyungang region enabled the company to engage with industry leaders, processing facilities, and potential buyers. Notably, a newly commissioned HPQ factory expressed interest in testing IND's quartz material, signaling potential pathways for collaboration and market entry.
This engagement is part of a broader strategy to leverage IND's established network of on-ground experts and to explore opportunities for processing and distributing quartz products within major Asian markets. The company is also evaluating the direct shipping ore (DSO) market for engineered quartz products, such as countertops and tiles, which are experiencing robust demand driven by construction and renovation trends in Asia-Pacific and North America.
Financial Position and Capital Raising
Supporting these operational advances, Industrial Minerals successfully completed a Placement and Share Purchase Plan (SPP) in late 2024, raising a combined $2.3 million. This capital injection has underpinned ongoing exploration, metallurgical testwork, and marketing initiatives. As of 31 December 2024, the company reported a cash balance of $1.23 million, providing a runway of approximately 2.3 quarters at current expenditure levels.
Management emphasized the importance of this funding in accelerating the pathway to commercialisation and establishing IND as a key supplier in the high-purity quartz sector. The company also signaled intentions to pursue additional mineral project acquisitions to diversify its portfolio while maintaining momentum in HPQ development.
Outlook and Next Steps
Looking ahead, Industrial Minerals plans to complete further beneficiation testwork using larger sample volumes, with results anticipated in March 2025. These outcomes will be critical in advancing trial product manufacturing and securing offtake agreements. The company remains committed to transparent updates as it navigates the technical and commercial milestones necessary to unlock value for shareholders.
While the preliminary nature of current testwork warrants cautious optimism, the combination of technical progress, strategic market engagement, and strengthened financial footing positions Industrial Minerals as a noteworthy player in the evolving high purity quartz landscape.
Bottom Line?
Industrial Minerals is poised at a pivotal juncture, with upcoming test results and Chinese collaborations set to define its trajectory in the high purity quartz market.
Questions in the middle?
- Will the upcoming maiden Mineral Resource Estimate confirm the scale and grade needed for commercial viability?
- How will Industrial Minerals convert preliminary testwork success into binding offtake agreements?
- What impact could potential acquisitions have on the company’s focus and resource allocation?