PERTH (miningweekly.com) - The Boonanarring mineral sands project, in Western Australia, has received its final development approval, allowing construction and commissioning of the project to start.
ASX-listed Image Resources on Wednesday told shareholders that the Department of Water and Environmental Regulation had granted a works approval for the project at the end of October.
This was in addition to the project management plan approved by the Department of Mines, Industry Regulation and Safety and the radiation management plan, as well as the mining proposal with mine closure plan, in August.
The receipt of the works approval was the final approval for the Boonanarring project and would allow Image to proceed to a decision to mine.
The company said that a final decision on the project was expected by the end of December, meaning project construction could start in January, with first production expected six months later.
A bankable feasibility study (BFS) estimated that the Boonanarring deposit would deliver 1.1-million tonnes of heavy mineral concentrate, while the Atlas deposit would deliver an additional 711 000 t.
At current prices, the combined project is estimated to generate revenues of about A$793-million, with the BFS estimating a pre-tax net present value of A$135-million and an internal rate of return of 64%.