Solar is a green and sustainable source of energy. The world is continually adopting more modern techniques to conserve resources and make Earth a more livable planet. Even governments worldwide are promoting solar energy adoption to reduce greenhouse gas emissions. The recent surge in global warming has made people aware of the importance of adopting solar cells. According to Precedence Research, the global solar cell market is projected to achieve a compound annual growth rate (CAGR) of 17.2% between 2023 and 2032. This rate is exceptionally high, which will, in turn, increase the demand for High Purity Quartz (HPQ), a key material used in solar cell manufacturing. This is why the projected CAGR of the HPQ market is 6.3% for the period from 2023 to 2032.
Figure 1: Projected Solar Cells Market Size from 2022 to 2032 (USD, Billion)
Amidst high time for HPQ, Australasian Metals Limited (ASX: A8G) (“Australasian” or “the Company”) announced the completion of a drone survey and fieldwork at their flagship asset, Dingo Hole HPQ Project in the Northern Territory. This project is under an option agreement between the Company and Verdant Minerals Limited.
About the Announcement
Drone Survey and Sample Collection
The Australasian team has completed a drone DTM survey and gathered samples for analysis across the Dingo Hole area. The digital terrain model, generated through drone photogrammetry, identifies topographic highs corresponding with silica outcrops confirmed on-site. This survey will serve as the foundation for future resource delineation efforts at the project.
Sample Analysis and Geology Study
The Company has procured over 20 samples, weighing approximately 1 to 2 kg, to validate historical assay results and enhance understanding of the geology and consistency of grades in this potentially high-purity quartz deposit. These samples have been transported to Melbourne for analysis at a laboratory renowned for its expertise in high-purity silica research.
Figure 2: Identical representative samples collected during the Company’s fieldwork in June 2024
Engagement with SRK Consulting Pty Ltd
Australasian has enlisted SRK Consulting Pty Ltd to conduct an exploration target range study. SRK consultants accompanied the Australasian team during the June expedition, contributing to the project’s exploration strategy.
What’s Next
Exploration Target Estimate
SRK Consulting Pty Ltd is currently compiling an estimate of exploration targets for the Company, incorporating historical data and their recent fieldwork findings. The results of this assessment are anticipated to be finalised by the end of July 2024.
Sample Assay Process
The samples collected by the Company will undergo initial raw material assays. Subsequently, the Company will collaborate with the laboratory to undertake preliminary preparation and conduct further assays. The results from this process are expected to be available in late August or early September 2024.
Bulk Sample Testing and Potential Offtake
Additionally, the Company has stored a bulk sample weighing over 80 kg in Alice Springs. This sample will undergo testing with potential offtake partners during the latter half of the year.
About Australasian Metals Limited
Australasian Metals Limited is an exploration company specialising in lithium, gold, precious metals, and highly pure quartz, with a primary focus on Australia. The Company has purchase agreements for more than 274.3 km2 of exploration licenses. Some of the Company’s important projects are the May Queen gold project, the Mt. Clermont gold project, the May Queen South Bauxite Project, the Barrow Creek Lithium Project, and, most importantly, the Dingo Hole HPQ Project.
Figure 3: Project Locations of the Australasian Metals Limited
About the Dingo Hole HPQ Project
The Dingo Hole Project is located in the Georgina Basin, approximately 300 km southeast of Tennant Creek. Spanning 35.16 km2 within the Davenport Province, it features a geological mix of sedimentary and volcanic rocks, including significant granite intrusions. Known for diverse formations like sandstone and volcanic rocks, the area also hosts silica-rich silcrete formations, the focus of current high-purity quartz (HPQ) exploration efforts following previous mineral exploration activities.
Investor’s Outlook
- Australasian Metals Limited’s strategic focus on high-purity quartz (HPQ) and its pivotal role in solar cell production come amidst a booming global market. The Company’s proactive exploration and partnership with SRK Consulting Pty Ltd enhance its potential in this burgeoning sector
- As of July 14th, 2024, Australasian Metals’ share price was AUD 0.072, with a 52-week range of AUD 0.060 to AUD 0.240
- The market capitalisation of the Company was AUD 3.43 million as of July 14th, 2024
- The Company has 52.12 million shares on issue as of July 14th, 2024
