Carbine Secures 21-Year Mining Lease and Raises $1.78 Million for Silica Sand Exploration

Mining Lease Milestone at Muchea West

Carbine Resources Limited (ASX, CRB) has achieved a significant regulatory milestone with the granting of a mining lease (M70/1433) for its Muchea West Silica Sand Project, located just 40km north-northeast of Perth. This lease covers a portion of the project's substantial resource, estimated at 110 million tonnes of high-purity silica sand with an impressive 99.65% silicon dioxide content. The lease, granted for an initial 21-year term, follows extensive engagement with key stakeholders, including the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) and the Department of Defence.

While the mining lease is a critical step forward, Carbine Resources notes that mining activities cannot commence immediately. The project remains subject to further statutory and environmental approvals, particularly due to its proximity to the Muchea Air Weapons Range. The company’s ongoing collaboration with government bodies underscores its commitment to navigating these regulatory complexities.

Progress at Down South Silica Sand Project

Parallel to developments at Muchea West, Carbine has secured access agreements with multiple landowners at its Down South Silica Sand Project near Bunbury. This 58 square kilometre project area has a history of mineral sands exploration and now opens up for on-ground exploration activities. The company plans to engage an experienced silica sand contract geologist to assist with detailed exploration, including reconnaissance and drilling campaigns, aiming to delineate further resources.

Capital Raising Strengthens Financial Position

To support its advancing projects, Carbine successfully completed a pro-rata non-renounceable entitlement offer and shortfall placement, raising up to $1.78 million before costs. This capital raise was notably supported by significant commitments from company directors, reflecting internal confidence in the projects’ potential. The funds are earmarked for exploration activities, project evaluation, and ongoing stakeholder engagement. At quarter-end, the company held approximately $1.5 million in cash, providing a runway of over 16 months based on current expenditure levels.

Operational and Financial Overview

During the June quarter, Carbine incurred $43,000 in exploration and evaluation expenses, primarily related to tenement fees, project evaluation, and field reconnaissance. Payments to related parties, including director fees and consulting services, amounted to $69,000. The company continues to hold multiple granted and pending tenements across both silica sand projects, positioning itself well for future resource expansion and development.

Carbine’s technical team, supported by competent persons such as Mr. Lynn Widenbar, continues to validate resource estimates and exploration targets. The company’s high-grade silica sand deposits, combined with favorable logistics; such as proximity to the Tonkin Highway and Kwinana Bulk Terminal; place it among the leading silica sand projects in Australia.

Looking Ahead

With the mining lease secured and exploration access agreements in place, Carbine Resources is poised to advance its silica sand projects through the next phases of statutory approvals and resource development. The company’s strategic capital raise provides the necessary funding to accelerate exploration and stakeholder engagement, critical to unlocking the full potential of these high-purity silica sand deposits.