Mineral sand developer Matilda Zircon announced it has decided to halt exploration on Cape York in Northern Queensland, following the Queensland Government's wild river legislation.

"Given the environmental sensitivity of the Western Cape York region and the likelihood of a long costly approval process, Matilda has decided to relinquish the tenements to focus on its other projects," said Matilda in a statement.

Matilda held more than 1,530 square kilometres of exploration tenements and applications in the Cape York Peninsula. The mining company has undertaken a limited mineral sands exploration program on the tenement.

Matilda technical director Peter Gazzard says the decision to relinquish the tenements follows a recent decision by the Queensland Government to lock up part of a nearby bauxite project under the Wild Rivers legislation.

"In light of Government's decision, we have taken the decision to relinquish all our tenements, and tenement applications on the Peninsula, said Gazzard.

He said the decision would allow Matilda Zircon to focus its resources and capital to continue developing its other projects, the Tiwi Zircon project in the Northern Territory and the Keysbrook leucoxene project in the South West of Western Australia.

Gazzard said both projects are well advanced, have environmental approvals and are expected to form the basis of a solid zircon/rutile concentrate and leucoxene group.