ASQ Advances Kaolin Acquisition and Expands Quartz and Gold Projects

Strategic Acquisition of Australian Kaolin

Australian Silica Quartz Group (ASQ) has entered a conditional agreement to acquire Australian Kaolin Pty Ltd (AKL), bringing the White Swan Kaolin Project into its portfolio. The deal, valued at $2 million via the issue of 100 million ASQ shares at 2c each, is subject to shareholder approval and an Independent Expert's assessment of fairness and reasonableness. The White Swan Project boasts a JORC 2012 compliant inferred resource of 47 million tonnes of kaolin, a significant addition to ASQ’s industrial minerals base.

The project benefits from granted mining lease ML 63/688, located just 35 kilometres by sealed road from the deep-water Cape Class capable Esperance Port in Western Australia. A mining proposal for a 250,000 tonne per annum open pit direct shipping ore (DSO) operation is currently under government assessment, positioning ASQ to become a notable kaolin exporter if approved. The acquisition also brings experienced industry figures Jamie Cullen and kaolin specialist James Marsh into ASQ’s fold, enhancing the company’s technical and governance capabilities.

This move builds on ASQ’s recent momentum, following its initial announcement of the acquisition and placement plans in April 2026, where the company outlined the strategic rationale for this expansion and capital raise $2m White Swan Project Acquisition.

Metallurgical Grade and High Purity Quartz Progress

ASQ continues to push forward with its metallurgical grade silicon quartz (MGSi) projects in North Queensland near Townsville, notably the Gilbert Ranges Project, where rock chip sampling has yielded impressive results with up to 99.85% SiO2 content. These deposits are strategically situated within trucking distance of the Townsville bulk export port and the proposed Lansdown Critical Minerals Processing facilities, enhancing their commercial appeal.

In parallel, ASQ’s high purity quartz (HPQ) projects in both Queensland and Western Australia are undergoing detailed metallurgical trials. Recent purification processes, including advanced treatments performed in China, have achieved quartz purities nearing 99.994% SiO2, edging closer to the coveted crucible grade standard of 99.997%. The company aims to refine its processing flowsheet to meet this benchmark, targeting applications in semiconductors, solar panels, and specialty glass. These developments follow earlier promising assay results and metallurgical work reported in January 2026 High-Grade Quartz and Gold Targets and High-Purity Quartz Breakthroughs.

Gold Exploration Advances at Koolyanobbing

The Koolyanobbing Metals Project (KMP) remains a key focus for ASQ’s diversification strategy. The company is advancing multiple gold targets with a soil sampling program underway, expected to deliver results in the June quarter. This follows encouraging drill results and nugget recoveries reported in previous quarters, underscoring the prospectivity of the Yilgarn Greenstone Belt tenure. ASQ is actively seeking joint venture partners to fund further exploration and development, reflecting a pragmatic approach to de-risking and capital allocation in this underexplored region Koolyanobbing Gold Update.

Financial Position and Corporate Developments

ASQ closed the March 2026 quarter with $945,000 in cash and zero debt, maintaining a solid balance sheet to support its exploration and development activities. The company also holds a rural property in Bindoon, Western Australia, independently valued at $2.5 million, with plans to list part of this asset for sale following boundary realignment. During the quarter, ASQ raised $750,000 through a placement of 37.5 million shares at 2c each, with directors and staff participating for $250,000. Of this, $655,000 was received in April, while $95,000 from directors awaits shareholder approval at the upcoming June meeting.

Operating expenditure for the quarter totaled $336,000, including exploration costs and corporate overheads, with payments to directors disclosed transparently. The company’s capital structure remains stable with 281.9 million shares on issue and 8.7 million performance rights outstanding.

Project Portfolio and Future Plans

Beyond the kaolin and quartz projects, ASQ continues to manage its silica sand projects near Gingin and Albany, with an 11.6Mt inferred silica sand resource at Albany White Hill showing potential for specialty glass markets. The company’s bauxite joint venture with HD Mining remains active, holding a combined inferred resource exceeding 70Mt, though no exploration was conducted this quarter. The South Stirling Nickel Copper Project tenement was surrendered due to access challenges, reflecting the pragmatic portfolio management approach.

Looking ahead, ASQ’s board intends to finalize the AKL acquisition, progress the White Swan development through bulk sampling and feasibility studies, and advance exploration at Koolyanobbing and its quartz projects. The company’s strategy to seek offtake partners and joint venture funding highlights a focus on balancing growth with capital discipline.