ASQ Advances White Swan Kaolin Mining and Expands Quartz and Gold Exploration

White Swan Kaolin Acquisition and Mining Approval

Australian Silica Quartz Group (ASQ) has completed the acquisition of Australian Kaolin Pty Ltd, bringing the White Swan Kaolin Project into its portfolio. This project hosts an inferred 47 million tonne kaolin resource, compliant with JORC 2012 standards, located just 35 kilometres from the deep-water port of Esperance in Western Australia. ASQ issued 100 million shares at 2 cents each, valuing the deal at $2 million.

Significantly, the Department of Mines, Petroleum and Exploration has approved the Mining Development and Closure Proposal for a 250,000 tonne per annum, free-dig, near-surface open pit direct shipping ore (DSO) operation. This regulatory milestone positions ASQ to become a meaningful exporter of kaolin in the near term.

Kaolin Beneficiation and Market Prospects in China

ASQ and Australian Kaolin have completed preliminary beneficiation testwork on an 800kg bulk sample at Foshan Laboratory in China, revealing promising results. The kaolinite content was upgraded from approximately 47% to 83% through dry separation techniques, while alumina content rose from 19% to nearly 34%. Ceramic firing tests yielded a fired brightness of 85.3%, indicating suitability for industrial applications.

Chinese ceramic industry participants have expressed strong demand for stable, large-scale kaolin supplies amid declining domestic resources. ASQ is actively engaging potential customers and processors in China, advancing offtake discussions and exploring strategic partnerships. A feasibility study focusing on exporting direct shipping ore kaolin is planned to underpin development decisions. These developments build on ASQ’s recent report of strong processing potential and Chinese demand.

Quartz Projects Target Metallurgical and High Purity Silica

Exploration continues across ASQ’s hardrock quartz projects in Queensland and Western Australia. At the Gilbert Ranges Project near Townsville, rock chip sampling has identified multiple zones with high-grade metallurgical silicon quartz (MGSi) exceeding 99.4% SiO2, with the best assay at 99.85% SiO2 and low impurities. ASQ plans further mapping, sampling, and drilling once land access is secured.

At the Quartz Hill Project, ASQ holds a 17.3Mt JORC 2012 resource of MGSi quartz at 99.04% purity, with export market assessments underway. Concurrently, high purity quartz (HPQ) trials at the Lake Seabrook Project have yielded quartz powder purity of 99.993% SiO2 using a simplified purification flowsheet, approaching crucible grade standards sought by the solar silicon industry. Metallurgical trials are ongoing to refine processing and enhance purity further.

Gold Exploration Progress at Koolyanobbing Metals Project

ASQ’s Koolyanobbing Metals Project (KMP) remains a focus for gold exploration, with multiple high-potential targets identified along a 13-kilometre prospective corridor. Soil sampling campaigns are underway at the Golden Wishbone and Golden Saddle trends, aiming to delineate drill targets. The project area has seen limited historical drilling outside main zones, indicating exploration upside.

The company is actively seeking joint venture partners to fund and operate gold exploration, reflecting a strategic approach to advancing these assets without excessive capital outlay. This aligns with ASQ’s intent to unlock value across its diversified minerals portfolio.

Financial Position and Corporate Developments

ASQ reported a cash balance of $1.33 million at 30 June 2026, bolstered by a $655,000 placement during the quarter, with an additional $95,000 from directors received post-quarter. The company holds no debt and owns a rural property near Bindoon valued at $2.5 million, with plans to sell a portion following boundary realignment.

Quarterly operating cash outflows totalled $252,000, reflecting exploration, corporate costs, and offset by R&D grants and customer receipts. The share register comprises over 314 million shares, expanded to more than 419 million following the Australian Kaolin acquisition and subsequent share issues. Performance rights, shares, and broker options remain in place, supporting management incentives and capital raising efforts.

Next Steps and Strategic Focus

ASQ’s immediate priorities include securing offtake agreements for White Swan kaolin and commencing mining operations. Parallel efforts will focus on identifying partners for gold exploration at Koolyanobbing and advancing silica projects through exploration and development. The company’s ongoing R&D initiatives aim to enhance product quality and marketability, particularly in high purity quartz.

With regulatory approvals in hand and encouraging early testwork results, ASQ is positioning itself to capitalise on growing demand for industrial minerals critical to ceramics, solar, and electronics sectors. The timing and success of offtake negotiations and feasibility studies will be key catalysts to watch.