PERTH (miningweekly.com) – A review of the Coburn heavy mineral sands project, in Western Australia, has reduced the up-front capital requirements by about A$29-million and the yearly operational capital expenditure by A$4.6-million, owner Strandline Resources reported on Monday.

Key contributors to the capital saving included a simplified process flowsheet, offshore modular construction, the use of second-hand equipment, a build-own-operate model for the supply of in-pit mining and tailings discharge equipment and reduced drilling and road construction costs.

A 2013 study estimated that the project would require a capital investment of A$202-million.

The Coburn review also lowered operating costs by 4.8%, owing to lower mining costs associated with improved equipment costs, labour rates and fuel pricing.

Strandline, previously known as Gunson Resources, reported there were opportunities to further reduce costs through additional flowsheet opportunities, greater owner/operator involvement of the construction contractor, lower construction and labour costs and updated gas pricing.

Meanwhile, a review of the project economics slightly reduced the project’s net present value from the 2013-reported A$330-million to A$306-million, while the internal rate of return decreased from 31.2% to 26.5%.

The life-of-mine revenue for the Coburn project was estimated at A$2.85-billion.

The 2013 study estimated that Coburn would produce 23.4-million tonnes a year of heavy mineral concentrate. The project would have a 20-year mine life based on a Joint Ore Reserves Committee-compliant resource of 979-million tonnes, at 1.26% heavy minerals, and a proven and probable reserve of 308-million tonnes, at 1.2% heavy minerals.

Strandline noted that the results of the preliminary review and recent offtake interest in Coburn’s product confirmed the significance of the project. The company would look to refine and improve on the cost reduction opportunities identified in the review through a detailed definitive feasibility study update.