The Goondicum ilmenite project in Australia’s Queensland is poised to become cash positive in the June quarter, Toronto-based Melior Resources reported on Tuesday.
The project produced 4 440 t in February and 7 860 t March, against goals of 7 900 t and 7 320 t, respectively. Melior said that March’s total was the highest production to date and representative of higher monthly production anticipated in the future.
Apatite production was 444 t in February and 1 210 t in March.
“February production fell short of budget due to the failure of an electrical component as well as a temporary halt in operations to allow the modification of certain aspects of the newly installed circuits. A particular focus of the modifications was to ensure that the plant will be able to consistently produce Goondicum AA specification ilmenite which is a premium, high-margin product and considerably enhances the financial performance of the project,” reported CEO Mark McCauley.
The miner said that the production budget was designed more than a year ago to provide a guide to the ramp-up of production to more than 10 000 t a month of ilmenite, upon which, commercial production should start. This goal should be reached in June.
Melior shipped its first 17 600 t of ilmenite to China last month.