Mineral sands company Strandline Resources intends to use the knowledge and experience gained from the development of its Fungoni heavy mineral sands (HMS) project, in Tanzania, and the operation of an active mineral sands mine to springboard the development of a succession of larger-scale projects, including its “exciting” Tanga HMS project, in northern Tanzania.

Strandline MD and CEO Luke Graham tells Mining Weekly that Strandline has a rapid development plan for Fungoni, a relatively boutique high-grade, zircon-rich project, just south of Dar es Salaam, and is actively defining and derisking the project to prepare it for execution.

The project, which in January announced a 45% increase on its previous mineral resource estimate of 11-million tons at 3.1% total heavy minerals (THM), is expected to produce high-quality titanium and zircon products for the global market.

Fungoni now boasts a 16-million-ton mineral resource, grading at 3.1% THM, with a mineral assemblage of 22% zircon, 40% ilmenite, 4% rutile and 1% leucoxene.

The project is part of Strandline’s 2015 acquisition of Tanzanian mineral sands explorer Jacana Resources, which was spun out of ASX-listed Syrah Resources in October 2014.

“Strandline is now well established in Tanzania and has forged strong in-country working relationships, aided by our growing appreciation for the cultural and social operating environment. Our focus is on continuing to build our reputation in the mineral sands industry and deepen our connection with Tanzania and its people.”

Graham avers that this has, to date, enabled the project team to effectively handle the various project challenges. Moreover, the team has benefited from supportive stakeholders, an easily accessible site and a favourable shallow orebody occurring from surface.

The company regards Fungoni as the first significant mineral sands operation to be developed in Tanzania and strategically important not only to the company but also the country.

Graham notes that, despite the relatively small scale of the project, its development will still “put the country on the map” in terms of mineral sands. Further, it will serve as an endorsement to investors in Tanzania of the feasibility of mineral sands developments and demonstrate that the country does have a pipeline of attractive projects.

“The project will create exciting opportunities for the local community and Tanzania . . . as we forge new frontiers through the commercialisation and exportation of mineral sands to the global market,” he says, adding that the jobs created, and skills and knowledge gained will benefit future developments.

To redress the trend of declining ore grades and project quality in the mineral sands sector worldwide, Strandline is developing Fungoni with strong financial discipline and countercyclical development pursuits.

In line with this plan, Strandline has engaged financial advisory firm Argonaut Capital to support the company’s financial assessment and strategic planning, while engineering, consulting and contracting company GR Engineering Services has been appointed to manage and integrate the overall feasibility study (FS) packages.

The FS is under way and Strandline expects a final investment decision (FID) in the third quarter of 2017. Following the FID and start of the project delivery phase, Graham posits that first production is expected within 14 to 18 months.

GR Engineering is also tasked with developing the most economical process plant and infrastructure solutions for the project, while mining consultancy AMC Consultants has been contracted to identify an optimised high-grade ore reserve, mine plan and mining method.

Engineering and environmental consultant Knight Piésold has started developing the auxiliary engineering packages on hydrogeology, hydrology, geotechnics and the tailings storage facility design.

Graham indicates that, regarding the metallurgy and process plant, the engineering design concept is based on a fit-for-purpose transportable modular process plant using proven mineral sands technology and safe design principles. Independent consulting company TZMI has started bulk metallurgical testwork at its Allied Minerals Laboratories in Perth, Australia, to define the best process flow sheet and produce product samples for marketing.

Project logistics, port infrastructure and transport options are being evaluated to further define the most practical mine-to-market supply chain.

Strandline is also prioritising Fungoni’s project approval process regarding the environmental approval and land access agreements.

The company has performed an environmental baseline survey and lodged a preliminary environmental impact assessment (EIA) with the Tanzanian environmental regulatory authority in July 2016.

Graham says the National Environment Management Council (NEMC) has progressed the Fungoni environmental evaluation process, and formal field inspections have been concluded by the Technical Audit Committee. Strandline is updating Fungoni’s EIA for resubmission to the NEMC.