JOHANNESBURG (miningweekly.com) – West Australian resource developer Stirling Resources has expanded its resource investment with a $4,8-million acquisition of high-grade mineral sands assets, in northern Australia.

Stirling would purchase the assets from ASX-listed Matilda Minerals, which entered into voluntary administration in October last year.

Stirling stated on Tuesday that the investment included high-grade mineral sands projects, located on the Tiwi Islands, in the Northern Territory, and the highly prospective zircon tenements at the Cape York Peninsula, in Queensland.

The investment in zircon producing assets, such as those of Matilda, were a key part of Stirling’s diversified commodity investment strategy, said Stirling MD Michael Kiernan.

“A key characteristic of the two assets is the high zircon product, along with low capital and production costs, and the proximity to the Chinese market. All of these factors make the assets an attractive part of a resource investment portfolio,” Kiernan said.

The company retained a very positive outlook for the zircon market, which was used in the ceramics and porcelain industry.  Stirling was also recommending production and exploration activity on the projects, as soon as possible.

“Long-term consumer trends in China and India will continue to support demand for products such as zircon, and we believe the current commodity cycle provides an opportune time to develop a quality asset base to meet this demand.”

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