ASQ’s Cash Tight at $985k as It Hunts Partners to Unlock Gold and Silica Value
Australian Silica Quartz Group reports promising gold drilling results at Koolyanobbing and advances its Quartz Hill silica project with a $1 million funding agreement.
- Encouraging high-grade gold intercepts at Koolyanobbing Metals Project
- Recovery of 20.8g gold nuggets at EMU target highlights exploration potential
- Quartz Hill metallurgical grade silica project backed by $1 million MOU with Quinbrook affiliate
- Scoping study for Quartz Hill nearing completion
- Company holds $985k cash, no debt, plus $3.5m in rural property assets
Koolyanobbing Gold Exploration Gains Momentum
Australian Silica Quartz Group (ASQ) has delivered a strong March quarter update, spotlighting significant progress at its Koolyanobbing Metals Project (KMP) in Western Australia. The latest drilling results from the Golden Wishbone target include high-grade gold intercepts such as 2m at 14.2 g/t Au and 1m at 27.7 g/t Au, extending the mineralised zone to an open-ended 260m by 130m area. These results build on previous encouraging assays and reinforce the project's potential.
Adding intrigue, metal detecting activities at the EMU gold target yielded gold nuggets totaling 20.8 grams, suggesting the presence of coarse gold close to surface and underscoring the underexplored nature of the region. Historic drilling data compilation at Golden Wishbone SE revealed multiple shallow gold intersections over a 1.4km strike, many ending in mineralisation, which warrants further follow-up exploration.
Advancing Silica Projects with Strategic Funding
On the silica front, ASQ is progressing its Quartz Hill Metallurgical Grade Silicon Quartz (MGSi) project in Queensland. Following a December 2023 JORC-compliant Mineral Resource Estimate of 17.3 million tonnes at 99.04% SiO2, the company is nearing completion of a scoping study. This development is supported by a $1 million funding Memorandum of Understanding (MOU) with Private Energy Partners Pty Ltd, an affiliate of Quinbrook Infrastructure Partners, which also secures an offtake agreement for up to 10 million tonnes of MGSi quartz.
Meanwhile, metallurgical trials on high purity quartz samples from ASQ’s Queensland and Western Australian tenements are underway, employing advanced processing techniques like hot chlorination. These efforts aim to demonstrate the suitability of ASQ’s quartz for producing crucible-grade high purity quartz, a product with significant industrial demand.
Financial Position and Corporate Outlook
ASQ ended the quarter with a cash balance of $985,000 and no debt, bolstered by two unencumbered rural properties in Western Australia valued at approximately $3.5 million. The company’s expenditure during the quarter included $218,000 on exploration and evaluation and $173,000 on corporate costs. Director-related payments were made on an arm’s length basis, reflecting prudent governance.
ASQ continues to seek partners to support exploration and development of its Koolyanobbing gold projects, inviting joint venture operators or funding collaborators. The board remains focused on advancing both its silica and metals projects to maximise shareholder value.
Bottom Line?
ASQ’s blend of high-grade gold discoveries and strategic silica project funding positions it well for growth, but partnership deals will be key to unlocking full potential.
Questions in the middle?
- Will ASQ secure a joint venture partner to accelerate Koolyanobbing gold exploration?
- How will the upcoming Quartz Hill scoping study influence project financing and timelines?
- What impact will advanced metallurgical trials have on ASQ’s ability to produce high purity quartz products?
