Name of the Project
Fungoni mineral sands project.
Location
The project is located about 25 km from the Port of Dar es Salaam, Tanzania.
Client
Jacana Minerals, a wholly owned subsidiary of Strandline Resources.
Project Description
A definitive feasibility study (DFS) has confirmed that the proposed project will deliver strong financial returns, has a high unit value product suite and is capital efficient.
The project has a mine life of 6.2 years; however, there is potential to extend the life-of-mine (LoM) by further optimising the mine pits as product pricing improves, thus expanding the mineral resource that can be mined profitably.
The project has a mineral resource estimate of 22-million tonnes at 2.8% total heavy minerals (THMs), with 41% classified in the measured category and 59% in the indicated category. Initial ore reserves have been estimated at 12.3-million tonnes grading 3.9% THMs.
The project is based on mining ore at two-million tonnes a year using multiple stages of beneficiation and mineral separation equipment on site to produce saleable, low-impurity, premium-quality industrial mineral products.
The high-grade orebody is exposed at surface, with the mineralisation showing strong geological continuity along strike and at depth.
Potential Job Creation
The project is expected to create 100 direct job opportunities.
Net Present Value/Internal Rate of Return
The project has a net present value, at a 10% discount rate, of $42.9-million and an internal rate of return of 56.2%, with a payback of 2.72 years.
Value
Preproduction capital expenditure is estimated at $29.95-million.
Duration
Following a decision to mine the project schedule from the start of the project to completion, first production is expected in 52 weeks.
Latest Developments
Strandline Resources has secured a binding offtake agreement for 100% of the zircon/monazite product to be produced at its Fungoni mineral sands project.
Marking it as a major step towards bringing its first mineral sands project into production, the company has said that the agreement with China’s zircon sand and rare earth consumer Hainan Wensheng High-Tech Materials will account for more than 62% of the project’s revenue.
The remaining project revenue is expected to be from chloride ilmenite (28%) and rutile (10%), for which offtake agreements are well advanced.
“The agreement provides a strong endorsement of the Fungoni project and the premium quality of the zircon and monazite, which will be produced over the life of the mine,” Strandline MD Luke Graham has said.
The agreement also paves the way for Strandline to finalise project funding, ensuring the company remains on track to unlock the substantial value of what is the first in its pipeline of exciting and prospective mineral sands assets.
Key Contracts and Suppliers
GR Engineering Services (process and nonprocess infrastructure design, DFS compilation, and the development of overall capital and operating cost estimates); IHC Robbins (geology and mineral resource estimation); AMC Consultants (mine study and ore reserve development); Knight Piésold (hydrology, hydrogeology, tailings storage facility design and geotechnics); TZ Minerals International (product marketing study and commodity price forecast); Allied Mineral Laboratories (bulk metallurgical testwork and analysis); Environmental Resource Consultants (land access compensation and resettlement planning); and Kiv Five Consultants (environmental-impact assessment and environmental management plan).
On Budget and on Time?
Not stated.
Contact Details for Project Information
Strandline Resources, tel +61 8 9226 3130, fax +61 8 9485 2070 or email enquiries@strandline.com.au.