Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Australian Zircon on Wednesday revealed that it would be required to contribute A$338.4-million towards the construction of its 80%-held WIM150 mineral sands project, in Victoria.
The project has a proven and probable ore reserve of 552-million tonnes, grading 4.3% heavy minerals, as well as an indicated and inferred mineral resource base of 1.65-billion tonnes, grading 3.7% total heavy minerals.
The ore reserve would allow for a mine life of some 60 years, with the deposit to be mined at a rate of around ten-million tonnes a year, producing 675 000 t of heavy mineral concentrate, containing 80 000 t of ilmenite, 85 000 t of zircon, 15 000 t of monazite and 10 500 t of rutile and leucoxene.
Australian Zircon on Wednesday revealed that the project would generate a revenue of some A$233-million a year, while site operating costs have been estimated at A$94-million a year.
Australian Zircon has appointed financial advisers to finance its share of the construction costs, while discussions were also under way to place Australian Zircon’s share of production.
The remaining 20% interest in the project is held by Orient Zirconic.