ASQ Advances White Swan Kaolin Project with Mining Approval and Acquisition Completion

White Swan Kaolin Project Moves Toward Production

Australian Silica Quartz Group Ltd (ASQ) is advancing its White Swan Kaolin Project in Western Australia from exploration to development after securing a granted mining lease and approval for a 250,000 tonnes per annum direct shipping ore (DSO) operation. The project hosts a substantial 47.3 million tonnes inferred JORC 2012 mineral resource, shallow and free-dig, located just 35km by sealed road from the Cape Class Port of Esperance, Western Australia's largest underutilised bulk export port.

The company completed its acquisition of Australian Kaolin Pty Ltd in June 2026, issuing 100 million ASQ shares at a deemed 2 cents per share as consideration. This deal brought the White Swan asset fully under ASQ’s control, marking a pivotal shift from pure exploration to an export revenue pathway. The acquisition was supported by shareholder approval and has added significant scale to ASQ’s portfolio.

Bulk Sampling and Independent Testwork Signal Product Quality

ASQ has completed thirteen test pits across the White Swan deposit, collecting an 800kg bulk sample dispatched to China for independent characterisation. Testing by Foshan Ceramic Research Institute revealed a raw mineralogy of approximately 47% kaolinite and 50% quartz, with low iron (0.3% Fe2O3) and titanium dioxide content, favourable for ceramic applications. Preliminary ceramic firing tests achieved 85.3% brightness at 1,200°C on minimally processed samples, indicating promising product quality for the ceramics sector.

Further beneficiation via dry separation upgraded kaolinite content to 83%, increasing alumina to 33.7% while reducing quartz content. This low capital intensity DSO model, where mining and screening occur onsite and beneficiation is conducted offshore by offtake partners, could shorten lead times to first revenue. ASQ has initiated sample distribution to prospective customers in Asia, targeting export markets amid reported depletion of domestic Chinese kaolin resources.

Robust Infrastructure and Funding Position Support Development

The White Swan mining lease is strategically located adjacent to a major trucking corridor leading directly to the Port of Esperance, facilitating efficient logistics for bulk shipments. The port supports Cape Class vessels and container freight, offering flexibility for initial trial shipments and scaling up exports.

Financially, ASQ is well positioned with no debt and a recent $750,000 placement completed at 2 cents per share, with directors subscribing for $250,000. The company holds $1.33 million in cash as of 30 June 2026 and owns an unencumbered rural property independently valued at $2.5 million. Royalties payable to landholders and lease vendors are set at $2.10 per tonne on production.

Diversified Mineral Portfolio Beyond Kaolin

While White Swan is ASQ’s flagship project, the company maintains a diversified portfolio of industrial minerals and metals. This includes a 17.3Mt metallurgical grade silica quartz resource at Quartz Hill, Queensland, with high purity quartz testwork achieving up to 99.994% SiO2. The portfolio also features silica sand projects in Western Australia, a gold exploration tenure over the Koolyanobbing Shear Zone, and a bauxite joint venture in the Darling Range funded by its partner HD Mining.

ASQ is targeting emerging Australian silicon supply chains and established international markets for its quartz products, alongside progressing kaolin offtake discussions in Asia. The company plans to advance feasibility studies, infill drilling to upgrade resource confidence, and negotiate offtake agreements over the next 12 months, with additional exploration work planned at its Queensland assets.