PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has launched the hunt for a joint venture (JV) partner at its Coburn project, in Western Australia, to oversee the funding, development and operation of the project.
Strandline MD Luke Graham told shareholders on Wednesday that the recent strong recovery in the mineral sands market and improving industry factors made it an opportune time to push ahead with the project’s development planning.
An internal review of a 2013 definitive feasibility study (DFS) confirmed a minimum target net present value of A$306-million for the project, with the project’s pre-tax rate of return estimated at 26%. Sales revenue of A$2.9-billion is expected to be generated over a 19-year mine life, at an average mining rate of 23.4-million tonnes a year.
“The DFS shows that in the current market, Coburn will generate strong financial returns. We believe these returns can be further enhanced by fine-tuning the project and taking advantage of recent technology advances, alternative contracting strategies and forecast gains in mineral sands prices,” Graham said.
The Coburn project is fully approved and development ready, and has both mining and environmental approvals in place along with native title agreements for the southern project area, that will provide the first 14 to 15 years of ore reserves.
The remaining five years of reserves are contained in the northern areas, where Strandline recently signed to Heritage Agreements as part of the process to convert the exploration licences into retention licences.