Australasian Metals (ASX: A8G) enters high purity quartz space with promising NT project

Highlights

• An option agreement with Verdant Minerals gives Australasian Metals access to the rapidly expanding high purity quartz (HPQ) sector.
• A8G is acquiring 100% of the Dingo Hole HPQ Project.
• Historical mapping and rock chip sampling campaigns revealed promising results, with 30 samples displaying SiO2 content exceeding 99.94%.
• Nine samples meet IOTA standard with deleterious elements below 1 ppm.

Australasian Metals Limited (ASX: A8G) has inked an option agreement with Verdant Minerals Limited to acquire the Dingo Hole HPQ project, situated in the Northern Territory. With this development, the company aims to capitalise on the opportunities arising amid the rapidly expanding HPQ sector.  

HPQ, a key strategic raw material for the global semiconductor and electronics industries, is defined relative to the standards set by IOTA®. HPQ resources meeting these standards are scarce worldwide, making them highly sought-after commodities. With the rapid expansion of AI technologies, the demand for HPQ has surged significantly, underscoring its strategic importance as a raw material.

Details of the agreement

A8G has signed an exclusive 4-month option agreement through its subsidiary, Pure Mining Pty Ltd, to acquire 100% ownership of the Dingo Hole Project. Under the terms, A8G will pay an option fee of AU$30k to conduct due diligence during this period. Additionally, the company will undertake geological mapping and rock chip sampling within the option period. Fieldwork is due to commence after 17 June 2024.

The agreement allows A8G to exercise the option by making an additional cash payment of AU$270k to Verdant, thereby securing full ownership of the project.

Strategic Importance of Dingo Hole Project

The Dingo Hole HPQ Project sits within the Georgina Basin. Covering 35.16km², the project has good access to road. Also, substantial outcropping silica mineralisation is present across the project area. Previous exploration efforts were limited, with activities conducted between 2012 and 2016 by Rum Jungle Resources Limited.

Historical mapping and rock chip sampling campaigns unveiled promising results, with 30 samples exhibiting SiO₂ content exceeding 99.94%, requiring minimal preparation prior to assay. Notably, nine out of the 30 samples met the IOTA® standard, demonstrating aluminium (Al) levels below 10 ppm and titanium (Ti) and lithium (Li) below 1 ppm. The low levels of deleterious elements such as AI, Ti and Li contaminants highlight the world-class potential of the project, highlights the company update.

Considering these outcomes, the firm believes that a significant portion of the Dingo Hole quartz outcrop could meet the industry’s HPQ standard with standard processing.

Growing demand in high-tech manufacturing industries

High purity quartz has emerged as a vital raw material for various high-tech manufacturing sectors in today's industry landscape. The silica glass derived from high purity quartz possesses a wide array of exceptional properties, including optical clarity, technical precision, and thermal stability, making it indispensable for the production of numerous high-tech goods across sectors such as semiconductor manufacturing, telecommunications, and optics.

There is a rapidly escalating demand for sources of exceptionally pure quartz (SiO₂), particularly characterised by extremely low levels of alkali-metal impurities like sodium, potassium, and lithium ions. Such high purity quartz is essential for crafting quartz frequency and timing control devices used in electronic applications.

A8G plans further work  

The company’s technical team will visit the project site soon to confirm historical data with more mapping and sampling. The team aims to identify factors for high-purity quartz and consider a potential exploration target for future resources. Simultaneously, the company is engaging in discussions with downstream processing plant owners to find the best markets for either raw materials or processed products from the project.