Independent study confirms viability of Diatreme’s flagship Cyclone project
JOHANNESBURG (miningweekly.com) – An independent project enhancement and update study has confirmed the viability of ASX-listed mineral sands developer Diatreme Resources’ Cyclone zircon project, in Western Australia, which now has a net present value of $121-million and an internal rate of return of 23%.
Diatreme announced on Wednesday that the project now has a payback period of under three years, based on an updated estimate of processing plant capital and operating costs, as well as shipping and diesel costs, with revenue streams adjusted for current product pricing.
Diatreme CEO Neil McIntyre noted that the study confirmed the Cyclone project’s potential to deliver economic benefits for all stakeholders.
“Following the expected award of environmental approvals this month, we can now move confidently towards the completion of the definitive feasibility study and the delivery of this valuable new mine for Western Australia,” he said.
Current industry and market conditions presented further opportunities for cost savings on key capital and operating expenditures, compared with the prefeasibility study estimates.
The company further noted that confidence in Cyclone’s future had also been boosted by the recent Global Zircon Conference 2016, which took place in Nanjing, China, from May 24 to 26. The conference indicated that an upturn in China’s residential market had lifted demand for ceramics, with producers expecting higher prices for zircon from the third quarter of this year.
Moreover, analysis by research company Beer & Co. had suggested that the zircon price could reach $1 500/t by late 2018 and, with forecasts of a looming supply deficit within three years, Cyclone was set to start production amid favourable pricing conditions for its key product.
The Cyclone project was the largest undeveloped zircon project in the Eucla basin, which borders South Australia.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation