Diatreme Resources Limited has advanced its emerging Northern Silica Project, signing a Memorandum of Understanding with government-owned corporation Far North Queensland Ports Corporation . Ports North is the relevant port authority for the Port of Cape Flattery, currently used by Cape Flattery Silica Mines for the export of its silica product. The MOU will spur the development of Diatreme's second high-grade silica project as the Company progresses further resource drilling, feasibility studies and traditional owner negotiations for the NSP. Significantly, the MOU outlines key terms of co-operation to advance and facilitate exports from the NSP via the state-owned port. The agreement follows Diatreme's recent lodgement of two Mining Lease Applications and four Infrastructure MLA's for its Northern Silica Development, located near the Port of Cape Flattery. Diatreme has completed initial project concept studies and investigations and intends to undertake further development investigations in connection with its NSP, which currently has proven reserves in excess of 124mt Whilst non-binding, the MOU facilitates the exchange of commercially sensitive project information between the parties and enables Diatreme to access key senior executives from Ports North to facilitate effective planning, project design, establishment of key capital cost parameters and related matters. Ports North is a government-owned corporation as defined in the Government Owned Corporations Act 1993. It is charged with the administrative, managerial and operational responsibilities for the Port of Cape Flattery, pursuant to section 274A, Transport Infrastructure Act 1994 and the Transport Infrastructure Regulation 2016. The NSP involves the establishment and operation of a high-grade silica sand mining operation, with the ability to export product via vessels utilising the port. The project may involve trans-shipping and/or direct loading of bulk carrier vessels and the construction and operation offshore structures. The precise location and layout of supporting infrastructure is yet to be finalised. MOU Facilitation Activities: Ports North and Diatreme will share information and conduct studies as agreed to progress the NSP. These activities will include but are not limited to the following: onshore and offshore infrastructure; access to land - onshore and offshore, including seabed leases, commercial agreements; shipping activities and ship simulation studies; review of any required government approvals documentation. Diatreme looks forward to working with Ports North to release the economic and social benefits of the project for the benefit of its shareholders, the people of Queensland and particularly the regional communities in which it operates, including Traditional Owners. Diatreme is advancing the NSP and Galalar Silica Project in parallel, allowing for the development of two high-grade silica sand mining operations. Diatreme's ESG principles govern its delivery of low impact projects, aligned to
Australia's 2022 Critical Minerals Strategy, which recognises the importance of silica in the rapid transition to lower global carbon emissions. The latest advances by Diatreme follow the announcement of a strategic partnership with global material solutions company, Sibelco. The two partners have agreed on a joint venture to develop the Galalar Silica Project and Northern Silica Project, supported by a significant initial investment from Sibelco of $35 million, subject to regulatory approvals.