Metallica is planning a $79 million, 25-year silica sand project at Cape Flattery to produce high-quality silica sand for the booming Asia-Pacific glass manufacturing markets and the solar panel industry.

According to a March pre-feasibility study the project will return a net present value of $290 million at an internal rate of return of 34.9%, with life of mine cash revenue of $2.12 billion.

Production is based on the maiden ore reserve of 46 million tonnes grading 99.18% silica, for saleable product of 1.3 million tonnes per annum.

With the PFS results presenting attractive financials, Metallica will move to a definitive feasibility study in the July quarter.

Metallica executive chairman Theo Psaros said the MoU was the first step towards formalising the commercial terms for the establishment of a purpose-built jetty for its silica sand project.

"We intend to barge load from our planned jetty and tranship the load onto ocean going vessels within the port limits," he said.

"Completion of the commercial terms remains subject to granting of regulatory approvals and finalising agreements with our Traditional Landowners."