Funding and Lease Delays Pose Challenges for Carbine’s Silica Sand Ambitions
Carbine Resources Limited is making steady progress towards securing the mining lease for its high-grade Muchea West Silica Sand Project while continuing exploration activities at its Down South project. The company reported $76,000 in exploration expenditure and holds $262,000 in cash reserves as it plans further funding.
- Mining lease application MLA70/1433 recommended for grant in February 2025
- Muchea West hosts a high-purity silica sand resource exceeding 110 million tonnes
- Exploration expenditure of $76,000 during the quarter focused on Muchea West and Down South projects
- Cash outflows from operations totalled $189,000 with $262,000 cash on hand at quarter end
- Company engaged with stakeholders and consultants to advance project development and funding
Progress on Muchea West Mining Lease
Carbine Resources Limited (ASX, CRB) has reported meaningful progress in its pursuit of a mining lease for the Muchea West Silica Sand Project, located approximately 102 square kilometres north-northeast of Perth. The company holds two overlapping mining lease applications, with MLA70/1433 recommended for grant as of February 2025. This milestone underscores Carbine’s commitment to advancing one of Australia’s highest-grade silica sand deposits, which boasts an average silica content between 99.6% and 99.8% SiO2.
While the formal grant of the lease remains pending, Carbine continues to engage regularly with the Department of Mines, Industry Regulation and Safety (DEMIRS) and other stakeholders to expedite the process. The company emphasises that only one of the overlapping applications will ultimately be granted, simplifying future operations.
Resource and Technical Developments
The Muchea West project hosts an estimated 110 million tonnes of high-purity silica sand, positioning it at the forefront of Australian silica sand projects. Preliminary process testwork has demonstrated the potential to reduce deleterious elements such as iron oxide through wet attritioning, enhancing the quality of the raw material for industrial applications.
Technical work and data compilation continue unabated, including desktop modelling and drilling data integration on the granted exploration licence E70/4905. These efforts aim to refine resource estimates and support future mining plans once the lease is granted.
Down South Silica Sand Project Activities
Alongside Muchea West, Carbine is actively progressing its Down South Silica Sand Project, covering approximately 58 square kilometres southeast of Bunbury. The company has engaged experienced consultants and conducted field reconnaissance and landowner consultations to advance strategic planning. This project area has a history of mineral sands exploration, and Carbine is focused on delineating silica sand resources with economic potential.
Financial Position and Outlook
During the March 2025 quarter, Carbine incurred $76,000 in exploration and evaluation expenditure, primarily directed at the Muchea West and Down South projects. Operating cash outflows totalled $189,000, reflecting ongoing project development and corporate costs. At quarter end, the company held $262,000 in cash and cash equivalents.
Recognising the need for additional funding to sustain and accelerate its exploration activities, Carbine is in discussions with brokers to facilitate capital raising. The company retains full placement capacity under ASX Listing Rules, providing flexibility to secure further investment as required. Management remains confident in continuing operations and advancing its projects within budgetary constraints.
Looking Ahead
Carbine Resources’ steady progress towards the grant of the Muchea West mining lease, combined with ongoing technical and field activities at both key projects, positions the company well for the next phase of development. Investors will be watching closely for the formal lease grant and the outcome of funding initiatives, which will be critical to unlocking the full potential of these high-quality silica sand assets.
Bottom Line?
Carbine’s next steps on mining lease approvals and capital raising will be pivotal in shaping its growth trajectory.
Questions in the middle?
- When exactly will the Muchea West mining lease be formally granted?
- How will Carbine prioritise exploration and development spending amid funding constraints?
- What are the prospects and timelines for commercial production from the Muchea West project?
