ASQ Secures DMPE Approval to Advance White Swan Kaolin Project

Regulatory Green Light Advances White Swan Kaolin Project

Australian Silica Quartz Group (ASQ) has secured a pivotal regulatory milestone with the Department of Mines, Petroleum and Exploration (DMPE) granting approval for the Mining Development and Closure Proposal (MDCP) at the White Swan Kaolin Project. This endorsement authorises a 250,000 tonne per annum, near-surface, free dig, open pit direct shipping ore (DSO) operation, a crucial step toward ASQ’s ambition to become a significant exporter of kaolin.

The project sits on granted Mining Lease M63/688, approximately 35 kilometres from Esperance Port, positioning ASQ well for export logistics. The MDCP approval not only confirms the project’s regulatory compliance under the Mining Act 1978 but also unlocks the potential for ASQ to advance bulk sampling and feasibility studies, essential precursors to full-scale mining.

Acquisition of Australian Kaolin Pty Ltd Consolidates Project Control

ASQ is in the process of acquiring Australian Kaolin Pty Ltd (AKL), the current owner of the White Swan Kaolin Project, pending shareholder approval and other conditions precedent. The project boasts an inferred 47 million tonne kaolin resource reported under JORC 2012 standards, underpinning the scale of the opportunity.

This acquisition follows ASQ’s earlier announcement of the deal and a $750,000 placement to support development, reflecting a strategic pivot into kaolin mining. The consolidation of ownership through AKL acquisition aligns with ASQ’s broader growth strategy and resource portfolio diversification, building on its existing industrial minerals assets. This move complements ASQ’s ongoing metallurgical and exploration activities, as noted in their recent $2m White Swan Project Acquisition.

Field Work and Bulk Sampling Progress Technical Understanding

In early May 2026, AKL completed 13 test pits at White Swan, reaching depths up to 6.5 metres. These pits aimed to validate historical drill data and provide fresh samples for quality assessment. A significant bulk sample of approximately 800 kilograms was hand-collected from one test pit (GKTP013) and sent to China for independent kaolin characterisation testwork. The sample visually comprises roughly 50% kaolin clay and 50% quartz grit, though assay results are expected within four months and will be critical to confirming the deposit’s economic viability.

The test pits showed good correlation with existing drill logs, especially in identifying deleterious features like iron staining. However, the shallow nature of the pits means they do not provide full thickness data for the resource. ASQ plans to collect up to 200 tonnes of bulk samples within the MDCP-approved mine pit areas to refine end-use targets and support negotiations with potential offtake partners.

Strategic Location and Land Access Support Development

The White Swan Kaolin Project is situated on freehold, cleared broadacre cropping farmland, with land access agreements already secured. This reduces potential tenure and access risks often associated with mining projects. The granted mining lease and exploration licences are in good standing, with no known impediments to mining operations.

Proximity to Esperance Port, a major export hub, enhances the project’s logistical appeal. The approved site layout and development plan reflect a focus on efficient, low-impact mining operations designed to meet market demand for direct shipping kaolin ore.

Next Steps: Feasibility, Offtake, and Shareholder Approval

With the MDCP approval in hand, ASQ’s immediate priorities include advancing bulk sampling, detailed kaolin quality characterisation, and offtake discussions. These steps will inform the upcoming feasibility study, which is critical before any final decision to mine.

Shareholder approval for the AKL acquisition remains a key milestone, introducing some uncertainty around timing. Pending that, ASQ aims to leverage its expanded resource base and regulatory approvals to attract commercial partners and capitalise on growing demand for kaolin in industrial applications.