Australian Silica Quartz Group reports promising gold drill results at Koolyanobbing Metals Project and seeks partners to fund exploration, supported by property sales.
- Strong gold assay results at Golden Wishbone and Golden Emu targets
- Active search for strategic partners to co-fund and operate gold projects
- Metallurgical trials progressing for high purity quartz products
- Two rural properties listed for sale to finance exploration activities
- Cash reserves at $524k with no debt, operating expenditure of $313k this quarter
Gold Exploration Momentum at Koolyanobbing
Australian Silica Quartz Group (ASQ) continues to build on its gold exploration efforts at the Koolyanobbing Metals Project (KMP) in Western Australia. The company reported multiple encouraging drill intercepts this quarter, including high-grade hits such as 1 meter at 27.7 grams per tonne gold near surface at Golden Wishbone. Notably, 20.8 grams of gold nuggets were recovered by metal detecting at the Golden Emu target, underscoring the coarse gold potential and underexplored nature of the area.
ASQ is advancing exploration planning with aeromagnetic surveys, soil sampling, and targeted drilling, particularly focusing on the “Golden Saddle” zone between Golden Wishbone and Golden Wishbone SE. The company views approximately 70% of the key lithological unit’s strike length as untested, highlighting significant upside for further discoveries.
Seeking Strategic Partnerships to Accelerate Growth
Recognizing the capital-intensive nature of exploration, ASQ is actively seeking joint venture partners to share funding and operational responsibilities for the KMP gold projects. The company remains the lead explorer but is open to collaborations that can accelerate resource definition and development. This approach aims to leverage external expertise and capital while maintaining exposure to potential upside.
High Purity Quartz and Silica Projects Progress
Alongside gold, ASQ is advancing its high purity quartz projects, conducting detailed metallurgical trials to assess suitability for crucible-grade quartz production. In North Queensland, exploration continues for metallurgical grade silicon quartz (MGSi Quartz), although development at the Quartz Hill MGSi Project is currently on hold following the termination of a funding agreement with Quinbrook Infrastructure Partners. The company remains optimistic about other high-grade quartz targets within its portfolio.
Financial Position and Funding Strategy
At quarter-end, ASQ held $524,000 in cash with no debt. To support ongoing exploration, the company has listed two unencumbered rural properties in Western Australia valued at $3.25 million. One property is under contract for $1.1 million, exceeding its book value, with the other under negotiation. Proceeds from these sales are expected to fund planned exploration programs, which are contingent on successful completion of these transactions.
Operating expenditure for the quarter totaled $313,000, including $142,000 on exploration and evaluation and $220,000 on administration and corporate costs. Payments to directors and associates were made on an arm’s length basis, reflecting prudent corporate governance.
Outlook
ASQ’s focus remains on advancing its gold prospects at Koolyanobbing and developing its silica assets. The company’s strategy to combine promising exploration results with strategic partnerships and asset sales to fund growth reflects a balanced approach to managing risk and opportunity in a challenging market environment.
Bottom Line?
ASQ’s next steps hinge on securing partners and closing property sales to unlock the full potential of its gold and silica projects.
Questions in the middle?
- Will ASQ secure joint venture partners to accelerate Koolyanobbing gold exploration?
- How will the termination of the Quinbrook agreement impact MGSi quartz project timelines?
- What are the prospects for expanding high-grade gold zones beyond current drill targets?