The capital cost of the project was expected to be $165 million, up from an initial $141 million and the company said its net present value was $437 million and it internal rate of return would be 32 per cent.

Shares in the company jumped more than 8 per cent on the announcement.

Executive chairman Theo Psaros said the DFS confirmed the Cape Flattery status as low-cost, high-purity silica sand with attractive profit margins.

The project would also provide employment and training to Hope Vale and Cooktown and the traditional owners were interested in establishing businesses to support services to the planned mine.

The silica was aimed at products like solar panels.

Metallica said it would begin an environmental impact study as soon as it received the terms of reference from various statutory authorities. It can now also progress negotiations with traditional landowners and looking at other initiatives to

Environmental approvals could be delivered by the first quarter of 2025 and construction and commissioning completed in 2027 with a production start in the second quarter of that year.

It has received interest from a number of parties for offtake agreements.

Psaros said considering the Queensland Government’s critical minerals strategy, Metallica was well positioned to become a leading provider of high purity silica sand to Asia.

“The project’s development would be a major boost to the far north Queensland economy, leveraging its strategic location with the declared Capel Flattery port area and adjacent to a work renowned source of high purity silica sand,” he said.