The world is profoundly driven by technology. High-pure quartz, while not widely recognised, is one of the most essential components in today’s technology-driven world. Its low thermal expansion, excellent thermal shock resistance, and superior dielectric properties make it indispensable. Highly-Pure Quartz (HPQ) is the primary material for producing cutting-edge tech components and photovoltaic cells, from crafting quartz crucibles and optical fibres to supporting semiconductor manufacturing. IOTA® standard ultra-highly pure quartz material is driving the market price to exceed US$5,000 per tonne, with the global demand for this product approximating 100,000 tonnes annually. Only a select number of ultra-high-quality deposits worldwide can meet IOTA® standards. The HPQ Market is projected to grow from USD 672.93 million in 2024 to USD 847.46 million by 2029. It represents an expected annual growth rate of over 4.5% during this period (2024-2029).
Australasian Metals Limited (ASX: A8G) (“Australasian” or “the Company”) has made an important announcement about its flagship HPQ Project, Dingo Hole. The announcement shows the initial Exploration Target range for the Dingo Hole Highly Pure Quartz Project in the Northern Territory. According to a previous announcement released by the Company on May 27th, 2024, the Company has entered into an Option Agreement with Verdant Minerals Limited to acquire 100% ownership of the Dingo Hole HPQ Project.
Details of the Announcement
Initial Exploration Target for Dingo Hole Highly-Pure Quartz Project
Australasian Metals Limited has revealed an initial Exploration Target for the Dingo Hole Highly Pure Quartz Project (EL31078) in the Northern Territory, developed by SRK Consulting (Australia) Pty Ltd. The Exploration Target outlines potential quantities and grades of highly pure quartz but is conceptual due to insufficient exploration to establish definitive Mineral Resources. Further exploration is needed to determine if Mineral Resources can be defined at the Dingo Hole Project.
Figure 1: Location of the Dingo Hole Highly-Pure Quartz (HPQ) Project in Central Northern Territory
Estimates and Variability
The Exploration Target provides two estimates: lower and upper limits.
- Lower Case Estimate: The target area is 1.16 km² with a height of 5 meters, a density of 1.8 kg/m³, a tonnage of 10.4 million tonnes (Mt), and 99.37% SiO2 This estimate is considered conservative due to its clear boundary between silica and non-silica soil, as observed on Google Maps.
- Upper Case Estimate: The target area is 1.7 km² with a height of 10 meters, a density of 2.5 kg/m³, a tonnage of 42.6 Mt, and 99.85% SiO2 This estimate covers additional areas not identified in Google imagery and includes potential HPQ zones under red soil.
Methodology
SRK estimated the Exploration Target using different methods for lower and upper limits. The lower limit was based on the area delineated by Google Maps, using a thickness of 3 meters and a lower average density of 1.8 g/cm³. The upper limit was based on the area from the Digital Terrain Model (DTM) relief, including additional zones potentially covered by red soil, with a thickness of 8 meters and a higher average density of 2.5 g/cm³. The SiO2 grade range was estimated with a 95% confidence interval around the sample mean, assuming normally distributed sample means.
Figure 2: HPQ areas at Dingo Hole were delineated using Google Maps, with Content SiO2
Planned Exploration Program and Objectives
The exploration program for the Dingo Hole HPQ Project aims to improve the understanding of the geological and geochemical characteristics of the silica unit. The units are shallowly dipping and situated above a dolomite layer. The program aims to evaluate potential HPQ resources comprehensively and prepare for subsequent metallurgical testing.
Planned Exploration Activities
- Surface Sampling: The program will include extensive surface sampling with complete 57-element assays. This will enhance control over the surface geochemical composition, identify HPQ areas, and improve the understanding of HPQ quality.
- Aboriginal Survey and Certification Renewal: An Aboriginal survey will be conducted, and the AAPA (Aboriginal Areas Protection Authority) certificate will be renewed. This renewal is necessary to permit drilling and bulk sampling in identified HPQ zones.
- Drilling Program: A drilling program featuring reverse circulation (RC) drilling combined with diamond drill holes will be executed. The plan involves a 50m by 50m grid with an average depth of 15m per hole, totalling 3,000 meters across 20 holes. This drilling will aim to estimate a reliable Mineral Resource for HPQ and provide samples for metallurgical testing. Assays will be performed before and after acid leaching to evaluate the initial geochemical composition and the effectiveness of the purification process, ensuring the HPQ meets industry standards.
About Australasian Metals Limited
Australasian Metals Limited is an exploration company with lithium, gold, precious metals and highly pure quartz projects focused on Australia. The Company holds agreements for over 274.3 km² of tenements.
About Dingo Hole Highly-Pure Quartz Project
The Dingo Hole HPQ Project is located in the Georgina Basin, about 300 km southeast of Tennant Creek, Northern Australia. The project covers an area of 35.16 km². Rum Jungle Resources Limited (now Verdant Minerals Limited) explored it from 2012 to 2016. In 2015, Rum Jungle’s mapping and rock chip sampling revealed that 30 samples contained over 99.94% SiO2. Low contaminants like aluminium, titanium, and lithium underscore the project’s exceptional potential.
About Dr Qingtao Zeng, Managing Director of Australasian Metals
Dr Qingtao Zeng, Managing Director of Australasian Metals, brings extensive experience in lithium exploration and corporate transactions. He serves as a non-executive director at Metalstech Limited and Kodal Minerals plc. His expertise and network significantly contribute to Australasian Metals’ strategic goals.
Regarding the announcement, he commented, “We are encouraged by the initial Exploration Target, which has been independently assessed for Dingo Hole and only covers the central part of the project area, highlighting additional potential. Dingo Hole has unique geological characteristics, including extremely low impurities, which positions it well for the global HPQ market at a time when there is significant growth in the market for AI-related semiconductor applications and photovoltaic solar silica growth.” He has also mentioned, “We look forward to conducting further exploration within the Exploration Target area. The extensive outcrop of quartz means we can deliver high-impact and low-cost exploration programs and potentially shorten the timeframe to a maiden resource estimate.”
Investor’s Outlook
- Australasian Metals’ share price was traded at AUD 0.070 as of July 22nd, 2024, with a 52-week range of AUD 0.060 to AUD 0.240
- As of July 22nd, 2024, Australasian Metals Limited had a market capitalisation of AUD 3.64 million and 12 million shares on issue
- Australasian Metals’ announcement of the Dingo Hole HPQ Project’s exploration target and planned exploration activities highlights significant potential for highly-pure quartz resources. The global HPQ market is growing, especially in the tech sector. If the exploration is successful, it could add value to the Company and make it an attractive investment opportunity.