Diatreme Nets $3.5M from Clermont Sale, Boosts Zircon Recoveries and Silica Approvals
Diatreme Resources has completed the sale of its Clermont Copper/Gold Project, retaining a significant stake in the new ASX-listed Moonlight Resources, while progressing metallurgical improvements and environmental approvals on its critical minerals projects.
- Sale of Clermont Copper/Gold Project completed with $3.25M in shares and $250k cash
- Diatreme holds 16.76% stake in newly listed Moonlight Resources (ASX, ML8)
- Cyclone Zircon Project testwork shows improved mineral recoveries
- Northern Silica Project Draft Environmental Impact Statement submitted for review
- Company cash position totals $7.7 million including joint venture funds
Strategic Divestment and New Ownership
Diatreme Resources has taken a significant step in reshaping its portfolio with the completion of the sale of its Clermont Copper/Gold Project to Moonlight Resources Limited. The transaction, finalised in December 2025, saw Diatreme receive $3.25 million in Moonlight shares alongside $250,000 in cash, positioning it as the largest shareholder in Moonlight with a 16.76% stake. Moonlight successfully listed on the ASX on 11 December 2025 following a $10 million initial public offering, marking a new chapter for the Clermont asset under fresh management.
Progress on Critical Minerals Front
Meanwhile, Diatreme’s Cyclone Zircon Project in Western Australia has delivered promising metallurgical testwork results. Recent bulk sample testing has improved recoveries of valuable heavy minerals, including zirconium dioxide and titanium dioxide, with total heavy mineral recovery increasing from 54.9% to 76.5%. This advancement not only enhances the project’s economic potential but also aligns with growing global demand for critical minerals, particularly in light of U.S. government initiatives encouraging Australian producers to collaborate with American partners.
Environmental Milestone for Northern Silica Project
On the regulatory front, Diatreme has submitted the Draft Environmental Impact Statement (DEIS) for its Northern Silica Project in Far North Queensland to the Queensland Office of the Coordinator-General. This milestone reflects extensive environmental, social, and economic studies, and sets the stage for public consultation expected in the first half of 2026. The DEIS highlights the project’s potential to contribute to regional economic growth and support the global solar energy sector, while emphasising cultural heritage protection and environmental stewardship.
Community Engagement and Financial Position
Diatreme continues to maintain strong community ties, particularly in Hope Vale and surrounding areas, supporting local events and educational milestones. Financially, the company reported a cash and liquid asset position of $2.3 million at quarter-end, supplemented by $5.4 million held within its silica projects joint venture, bringing total available funds to $7.7 million. Operating cash outflows were reported, alongside a $1 million debt facility due in May 2026, reflecting ongoing investment in project development and corporate activities.
Looking Ahead
Looking forward, Diatreme plans to advance its silica sand projects with further metallurgical testing, pre-feasibility studies, and community negotiations, while continuing to explore partnership opportunities for the Cyclone Zircon Project. The company’s strategic divestment and focused development efforts position it well to capitalise on the rising demand for critical minerals and silica products in renewable energy markets.
Bottom Line?
Diatreme’s portfolio reshaping and project advancements set the stage for value creation amid evolving critical minerals demand.
Questions in the middle?
- How will Moonlight Resources’ drilling results at Clermont impact Diatreme’s investment value?
- What are the timelines and potential hurdles for Northern Silica Project’s environmental approvals?
- Which partners or investors might join Diatreme in advancing the Cyclone Zircon Project?
