Queensland Industrial Minerals has committed to developing its Wateranga industrial minerals project into an operating mine. The project will produce a range of high quality mineral products that will continue to grow in demand.
The project has progressed well beyond exploration, having already identified over 30 years of measured resource and proved reserves in the unconsolidated resource. Whilst development planning works proceed on the unconsolidated surface deposition, detailed drilling will be carried out on the ‘hard rock’ areas of the deposit that contain a higher quality suite of minerals. A combination of sources will then allow the company to adopt a strategy of greater flexibility of supply to customers over the long term.
The exploration lease contains a number of very strong magnetic anomalies and limited diamond drilling has already identified areas of high grade magnetite mineralisation. Significant expenditure will be directed to the delineation of a magnetite resource.
The Company will use the corporate and industry experience of its Board members and senior management to develop a world class industrial minerals mining operation that will be well positioned to capitalise on the continued strong growth in China, the sub-continent and South East Asia.
Funds raised over the next twelve months will be used to:
- Further convert more of the unconsolidated resource into proven reserves;
- Commence detailed drilling on the hard rock portions of the mineral development lease;
- Complete a bulk testing and processing program to identify various design parameters allowing engineering design to be completed;
- Complete a bankable feasibity study to +/-15% and subsequent final engineering design of a processing plant.
QIM’s longer term strategy is to identify and develop other industrial minerals opportunities in the southern Queensland region that are synergistic with the Company's current assets, thereby building long term wealth.
In the opinion of the Directors, Queensland Industrial Minerals provides an excellent opportunity for investors to participate in a solid long term project that will supply minerals into long term growth markets.