Work since March has delivered a 40% increase in total resources to 53.5 million tonnes with an average grade of 99.2%, including a maiden measured resource of 9.6Mt at 99.29 % silica.

 

Just 12 months ago the company delivered a maiden resource of 12.8Mt.

 

Executive chairman Theo Psaros said the rapid development of resources gave the company confidence in the project's potential for both development, and future growth.

 

"We continue to receive positive interest from international and domestic parties for quality silica sand. This does not surprise us based on forecast growth in the global demand for premium product," he said.

 

Asia Pacific demand for silica sands is growing at about 5-6%, about twice the global average.

 

A mining lease was lodged in June, with the plan to start development in the area of the measured resource, adjacent to the Cape Flattery port area, the location of the highest silica grades and lowest iron content

 

Metallurgical studies have commenced as part of the prefeasibility process, which is expected to be delivered early in 2022. 

 

A scoping study was completed in August indicating A$56-75 million would be needed for the development 

 

The PFS work also includes options for a jetty and barge-loading facility, about 1km from the measured resource, which would allow for transhipment.

 

Metallica is working with marketing consultants with offices in Hong Kong, China and Malaysia, and has high hopes its products will quickly find favour given Mitsubishi's long-lived Cape Flattery mine is in the adjacent area. 

 

Diatreme Resources' rapidly growing 75.5Mt at 99.16% Galalar project, which is also chasing development, is also in the area.

 

Metallica started the quarter with A$7.5 million cash.

 

The junior's shares closed up yesterday at 3c, valuing the company at $17 million. The stock has traded between 1.9c and 4.8c over the past year.