Diatreme Resources (DRX) Noosa Mining Conference Presentation summary

Key presentations and announcements

• Diatreme Resources highlighted its position as a leading near-term producer of high purity, low iron silica sands, targeting the solar PV and specialty glass markets, with first production expected in 2026/7.

• The company completed the takeover of Metallica Minerals in September 2024, consolidating strategic silica projects in the Cape Flattery region and increasing shareholder value.

• Sibelco, a global leader in industrial minerals, is a major partner and shareholder, having invested $35m and supporting Diatreme’s project development and integration.

• Diatreme is advancing the Northern Silica Project (NSP), with a positive scoping study, feasibility underway, and a production target of 3–5Mtpa over 25 years.

• The company is actively engaging with traditional owners and local communities, ensuring cultural heritage protection and workforce development.

Industry analysis and market trends

• Global high purity silica sand demand is rising, driven by solar PV and specialty glass, with the market projected to grow from US$22.9B in 2022 to US$32.1B by 2028 at a 5.6% CAGR.

• Solar panel manufacturing requires >99% purity silica, and supply constraints are emerging in Asia due to environmental restrictions.

• China’s demand for PV-grade silica sand is outpacing supply, with consumption expected to rise from 23.43Mt in 2023 to 31.68Mt in 2025.

• The Queensland Government is investing in critical minerals, identifying Cape Flattery as a potential silica hub and supporting Diatreme’s projects as part of Australia’s decarbonisation strategy.

• Sibelco’s global reach and technical expertise provide Diatreme with access to major markets and advanced processing capabilities.

Project updates and forward-looking statements

• Northern Silica Project targets production of 121Mt over 25 years, with a pre-tax NPV of A$1.41B and IRR of 33%; first phase production (3Mtpa) to use existing port infrastructure, scaling to 5Mtpa.

• Cape Flattery Silica Project, acquired via Metallica takeover, has a 61.5Mt resource and a 15-year mine life, with synergies being assessed across Diatreme’s portfolio.

• Diatreme has signed agreements with Ports North and Cape Flattery Silica Mines for port access, supporting environmental approvals and export logistics.

• The overall program for 2024–2026 includes EIS lodgement, stakeholder engagement, and approvals, aiming for construction commencement in 2026.

• Offtake MOU signed with FLAT Glass, a major PV glass manufacturer, advancing commercialisation of NSP’s high purity product.