Quartz Hill JV Collapse Puts ASQ’s Silica Ambitions on Hold Amid Gold Gains

Exploration Momentum at Koolyanobbing

Australian Silica Quartz Group (ASQ) has delivered a robust quarterly update highlighting encouraging gold exploration results from its Koolyanobbing Metals Project (KMP) in Western Australia. The company reported multiple significant gold intercepts at the Golden Wishbone and Golden Wishbone SE targets, including high-grade hits such as 2 meters at 14.2 grams per tonne gold and 1 meter at 27.7 grams per tonne gold near surface. These results extend the mineralised zone considerably and underscore the project's potential.

Adding to the excitement, ASQ recovered a total of 20.8 grams of gold nuggets at the EMU target through metal detecting, emphasizing the presence of coarse gold and the underexplored nature of the area. The company is actively seeking joint venture partners or funding collaborators to accelerate exploration and development at KMP, signaling a strategic move to leverage external expertise and capital.

Quartz Hill JV Termination and Ongoing Quartz Projects

On the industrial minerals front, ASQ completed a scoping study for its Quartz Hill Metallurgical Grade Silica (MGSi) Project in Queensland, which hosts a JORC-compliant resource of 17.3 million tonnes at 99.04% silica. However, the joint venture with Quinbrook Infrastructure Partners was terminated after Quinbrook determined the quartz grades did not fully meet their polysilicon facility feedstock specifications. Despite this setback, ASQ remains optimistic about blending options and continues to explore other high-grade quartz targets within its extensive Queensland portfolio.

Meanwhile, detailed metallurgical trials, including advanced processing techniques like hot chlorination, are underway to demonstrate the suitability of ASQ’s quartz samples for high purity crucible-grade quartz production. These efforts reflect the company’s commitment to advancing its Research and Development program and unlocking value from its silica assets.

Financial Position and Corporate Strategy

Financially, ASQ reported a cash balance of $837,000 at the end of June 2025, with no debt on its books. The company also holds two unencumbered rural broadacre properties near Bindoon, Western Australia, independently valued at $3.25 million, both now listed for sale. Quarterly net expenditure was $148,000, reflecting disciplined spending on exploration and corporate activities.

With 281.9 million shares on issue and a concentrated shareholder base, ASQ’s board remains focused on advancing its silica and gold projects while seeking strategic partnerships to enhance shareholder value. The company’s exploration manager, Nick Algie, has overseen the data collection and reporting, ensuring compliance with industry standards.

Looking Ahead

ASQ’s next steps will likely involve further drilling and exploration at Koolyanobbing, progressing metallurgical testing on quartz projects, and potentially securing new joint venture partners to share development risks and costs. The termination of the Quartz Hill JV, while a disappointment, opens the door for fresh collaborations and alternative project pathways.