Name and Location
Keysbrook mineral sands project, Australia.

Client
MZI Resources.

Project Description
A feasibility study completed on the Keysbrook project, in Western Australia, has shown very strong economics.

The project comprises heavy mineral sands contained in degraded dunes within the Bassendean formation and is characterised by its high leucoxene content. Once in operation it will be one of the world’s largest producers of premium leucoxene 88 product.

The project will entail the development of an estimated 4.5-million-dry-ton-a-year sand-mining operation, using an excavator and truck method. The orebody is at surface and averages 2.2 m in thickness across a total mining area of about 12 km2.

A wet excavation plant, located on site, will process the ore using gravity separation to produce, on average, about 110 000 t/y (dry) heavy metal concentrate (HMC), grading 85% heavy minerals.

HMC will be transported by road to Picton, 120 km south of the mine site, where it will be processed through a secondary mineral separation plant. The toll treating process will produce three products – leucoxene 70 (L70), containing 70% titanium dioxide; leucoxene 88 (L88), containing 88% titanium dioxide and zircon concentrate, consisting of 56% zircon, 3% L70 and 11% L88.

Net Present Value/Internal Rate of Return
Not stated.

Value
MZI Resources secured $64-million in debt facilities for the Keysbrook project in May 2014.

Duration
Subject to the MZI board granting a final investment decision, construction is likely to start in July or August with the first production scheduled for mid-2015.

Latest Developments
MZI has executed a A$54.6-million engineering, procurement and construction (EPC) contract for its Keysbrook project with project house GR Engineering Services.

The contract is for the delivery of the Keysbrook mine site and an upgrade to the existing mineral sands separation plant, which ASX-listed Doray Minerals owns.
The start of work will remain subject to the satisfaction of certain conditions precedent, including MZI securing financing and offtake arrangements.

Key Contracts and Suppliers
GR Engineering Services (EPC).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Read Corporate on behalf of MZI, Paul Armstrong, tel +61 8 9388 1474, fax +61 8 9388 1472 or email info@readcorporate.com.au.
GR Engineering Services, tel +61 8 6272 6000, fax +61 8 6272 6001 or email gres@gres.com.au.