PERTH (miningweekly.com) – ASX-listed Strandline Resources has been awarded a mining licence for its Fungoni heavy mineral sands project, in Tanzania.
MD Luke Graham said on Friday that securing the mining licence was a crucial step in the company’s strategy to build a significant, low-cost mineral sands business.
“Strandline is now a huge step closer to making the transition from explorer to developer and ultimately producer of mineral sands products for decades to come.”
The $30-million, two-million-tonne-a-year Fungoni project is expected to produce 302 300 t of saleable mineral sands product and could be delivered over the six-year mine life, generating life-of-mine revenues of $168.1-million.
The project’s net present value has been estimated at $42.9-million, and the internal rate of return at 56.2%, while life-of-mine all-in sustaining costs have been estimated at $71.2-million.
Strandline said on Friday that with the award of the mining licence, the company is now progressing funding and preparing for project implementation.