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Diatreme Resources Limited (ASX:DRX)

ALERT: Price-sensitive ASX Announcement for DRX
Current share price for DRX : $0.014 0 (0%)+
Announcement
Release
30 Oct 2026 12:46PM
Price at Release
$0.014
Full Release
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Summary
Diatreme Resources Limited’s Quarterly Activities Report and Appendix 5B for the quarter ended 30 September 2026 focused on advancing its Far North Queensland silica sands portfolio, led by the Northern Silica Project (NSP), while also reporting corporate and cash flow outcomes for the September quarter. Post quarter, Diatreme announced a positive Pre-Feasibility Study for the NSP, confirming a long-life, low-cost, high-margin silica sand operation with a 25-year mine life; the Phase 1 base case at 3 Mtpa delivered pre-tax NPV of $1.29 billion, pre-tax IRR of 36%, gross revenue of $8.1 billion, C1 cash cost of $25/t and construction capex of $443.5 million, while a Phase 2 expansion to 5 Mtpa from year 3 lifted pre-tax NPV to $2.419 billion and IRR to 46% with only $38.5 million of additional capex, supported by a maiden Ore Reserve of 151 Mt at 99.25% SiO2. During the quarter, Diatreme completed the divestment of the Cape Flattery Silica Project into the Diatreme/Sibelco joint venture Cape Silica Holdings, receiving total transaction funding of about $7.4 million and reverting to a 73.2% interest in the JV, which the company said streamlined ownership and funding of its silica assets. Operational priorities for the December 2026 quarter include progressing EIS approvals, negotiating port access with Ports North and Cape Flattery Silica Mines, continuing mining agreement discussions with Traditional Owners and community engagement, while separately continuing to assess value realisation options for the Cyclone Zircon Project. In the Appendix 5B, Diatreme reported net operating cash outflow of $684,000 for the quarter, investing cash outflow of $114,000, financing cash outflow of $17,000, and closing cash and cash equivalents of $1.919 million, with a further $6.9 million held in the Cape Silica JV for combined cash of $8.8 million at 30 September 2026; related party payments totalled $106,000, and the company disclosed estimated funding of 2.4 quarters based on quarter-end cash and outgoings.
Key Points
  • Quarterly report covers the period ended 30 September 2026 and was released on 30 October 2026.
  • Diatreme’s main focus was the Northern Silica Project in Far North Queensland.
  • Post quarter, the Northern Silica Project PFS confirmed potential for a long-life, low-cost, high-margin silica sand operation.
  • Phase 1 of NSP at 3 Mtpa over 25 years delivered a pre-tax NPV of $1.29 billion and pre-tax IRR of 36%.
  • Phase 1 NSP construction capex was estimated at $443.5 million with a four-year payback and C1 cash cost of $25/t FOB.
  • The Phase 2 expansion case to 5 Mtpa from year 3 delivered a pre-tax NPV of $2.419 billion and pre-tax IRR of 46%.
  • Phase 2 expansion required only $38.5 million of additional capex and reduced C1 cash cost to $18/t FOB.
  • A maiden Ore Reserve of 151 Mt grading 99.25% SiO2 underpins the Northern Silica Project’s 25-year mine life and expansion potential.
  • The project is being advanced through the Diatreme and Sibelco joint venture, with Diatreme holding about 73% and Sibelco about 27%.
  • The development pathway for NSP includes EIS approvals, port access negotiations, offtake and financing discussions, DFS targeted for Q2/Q3 CY2028 and FID targeted for Q3 CY2028.
  • The report highlighted expected regional benefits including local jobs, procurement, and a target of 50% Indigenous employment.
  • Diatreme completed the sale of the Cape Flattery Silica Project to Cape Silica Holdings, the joint venture with Sibelco.
  • Total funding received from the Cape Flattery Silica transaction was approximately $7.4 million.
  • Following the transaction, Diatreme’s interest in Cape Silica Holdings reverted to 73.2%.
  • The Cape Flattery Silica Project has an estimated Ore Reserve of 47 Mt and JORC Mineral Resource of 61 Mt.
  • For the quarter, net cash used in operating activities was $684,000.
  • Cash used in investing activities for the quarter was $114,000.
  • Cash used in financing activities for the quarter was $17,000.
  • Closing cash and cash equivalents at 30 September 2026 were $1.919 million.
  • An additional $6.9 million was held in the Cape Silica joint venture, taking combined cash to $8.8 million at quarter end.
  • Related party payments for the quarter were $106,000, including director fees and specialist marketing consultancy services.
  • The company disclosed estimated available funding of 2.4 quarters based on quarter-end cash and relevant outgoings.
  • Diatreme also continued discussions regarding value realisation options for the Cyclone Zircon Project, but the silica projects remained the core focus of the report.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.