PERTH (miningweekly.com) – Diversified junior Diatreme Resources is one step closer to production at its Cyclone mineral sands project, in Western Australia, after its subsidiary Lost Sands signed a project agreement with traditional owners.
The agreement allowed the Department of Mines and Petroleum to grant a mining lease over the Cyclone project, and for Diatreme to ultimately complete progress with the planning, permitting and commercial studies process necessary to develop the Cyclone mine.
“Diatreme is committed to generating economic opportunities for the communities where we operate and this agreement provides an enormous boost to the Spinifex people,” said CEO Neil McIntyre.
He noted that the Cyclone project could create about 100 jobs in the construction and operational phases, with the company committing to a medium-term target of recruiting at least one-fifth of its operational workforce from the local indigenous community.
“The agreement also provides for direct cash compensation payments, contracting opportunities to tender on various mine contracts and vocational benefits through direct employment on the project and traineeships. In addition, an educational trust fund will support the Spinifex people’s education and training activities and a number of cultural initiatives are also planned.”
A definitive feasibility study on the Cyclone project, which was discovered in 2008, was currently under way. The project has a Joint Ore Reserves Committee-compliant resource of 223-million tonnes, at 2.1% heavy minerals and was potentially the largest undeveloped zinc project in the Eucla basin.