Australasian Metals Limited (ASX: A8G) (“Australasian Metals” or “Company”) has announced the results of the additional historical data on the Dingo Hole Highly Pure Quartz Project in Georgina Basin, Northern Territory. Highly pure quartz is a key raw material for the global semiconductor and electronics industries. The artificial intelligence (AI) market is one of the key drivers for the growing demand for highly pure quartz. Research forecast indicates that the AI market will witness a CAGR of 37.3% from 2023 to 2030. Technology companies around the globe are investing in research and innovation to incorporate advanced technologies into key industries, thus propelling the AI market forward.
Highlights for Dingo Hole Highly Pure Quartz Project
- Significant outcropping silica confirmed over an area of approximately 1 km2
- Low levels of deleterious elements Aluminium (Al), Titanium (Ti), and Lithium (Li) have been confirmed by historical sampling; over 30 surface samples containing greater than 99.94% SiO2 have been identified with minimal sample preparation
- Early work indicates that the silica from Dingo Hole may be fit for LCD/LED/OLED glass substrate applications
Figure 1: Dingo Hole Highly Pure Quartz Project Location
Dingo Hole Highly Pure Quartz Project
The Dingo Hole Highly Pure Quartz Project is located in the Georgina Basin, approximately 300km southeast of Tennant Creek, Northern Australia. The project covers an area of 35.16 km2.
On May 27th, 2024, Australasian Metals signed an option agreement with Verdant Minerals Limited to acquire the Dingo Hole High Purity Quartz Project. In 2015, Rum Jungle obtained an Aboriginal Area Protection Authority (AAPA) certificate to conduct sampling, drilling and excavating rock samples. It was subjected to limited exploration by Rum Jungle Resources Limited (rebranded as Verdant Minerals Limited) from 2012-2016.
The quartz located in Dingo Hole can be processed relative to the IOTA standard that is applied for AI technologies. The global supply of such high-purity quartz is rare, and with the increasing emphasis on AI, the Dingo Hole Project is anticipated to be met with success.
Way Forward for the Project
The Company’s technical team will conduct its first sampling program later in June 2024. With the assistance of technical consultants, the potential exploration target range will be estimated. The company’s management has reached out to several Chinese processing plants, which have indicated an interest in conducting sample testing.
With the signing of the Option Agreement with Verdant Minerals, the Company will work with the AAPA to successfully complete the project.
Dr Qingtao Zeng MD & CEO of Australasian Metals Limited stated,
“The Dingo Hole Project has unique geochemical qualities which have been studied by previous owners and historical work has indicated the project may have economic scale. The extremely low impurities of Al, Ti and Li make the Project stand out and we are excited to explore its potential applications.”
Investor’s Outlook and Market Position
- The Dingo Hole Highly Pure Quartz Project offers investors an opportunity to capitalise on the growing demand for high-purity quartz in the LED, OLED, and LCD glass substrate markets, as well as the crucible manufacturing industry.
- As these markets continue to grow, driven by advancements in technology and consumer electronics, the company is well-placed to become a key player in the high-purity quartz supply chain.
- The Company plans to conduct its first sampling program at Dingo Hole later this month, with the assistance of independent technical consultants, to estimate a potential exploration target range. This could provide further insight into the project’s scale and economic viability.
- The Australian government offers favourable policies, which are expected to support the Company’s growth as a key producer and exporter of highly pure quartz in the global market.
- As of June 10th, 2024, Australasian Metals Limited’s share price was traded at AUD 0.08, and a 52-week range was AUD 0.060 to AUD 0.240. The Company’s market capitalisation was AUD 4.16 million, with 12 million shares on issue as of the same date.
