Name of the Project
Cyclone zircon project.
Location
Eucla basin of Western Australia.
Client
ASX-listed emerging mineral sands miner Diatreme Resources.
Project Description
A definitive feasibility study (DFS) has confirmed Cyclone’s potential as a profitable new zircon mine worthy of advancing to immediate development. The project is expected to have a life-of-mine (LoM) production of 1.94-million tonnes of heavy mineral concentrate, containing 936 000 t of zircon, producing 772 000 t of final zircon product.
About 58 790 t/y of zircon is expected to be delivered over a 13.2-year LoM.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $113-million and an internal rate of return of 27%, with a payback of 2.7 years.
Value
Project development costs are estimated at $135.6-million.
Duration
The project will take about two years to complete.
Latest Developments
Diatreme is hoping to secure a development partner by mid-2019.
The company is also in offtake discussions with several heavy mineral concentrate companies in China.
Key Contracts and Suppliers
China ENFI Engineering Corporation (DFS) and Mineral Technologies (wet concentrator plant).
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Diatreme Resources, tel +61 7 3397 2222 or email manager@diatreme.com.au.