Name and Location
Urquart Point heavy mineral sands project, Queensland, Australia.

Client
Metallica Minerals.

Project Description
A positive feasibility on the Urquart Point project supports the economics for a five-year mine life based on current ore reserves of 1.18-million tonnes grading at 9.5% heavy minerals, 8% oversize and 1% slimes. The heavy minerals assemblage is estimated to be 11.7% zircon, 13.6% rutile and 13.1% ilmenite. The reserves are located at surface, averaging between 1.5 m and 2 m in thickness.

The feasibility study proposes a simple, shallow dry sand mining and conventional wet gravity-separation plant operation using spirals, with no chemicals required, to produce a mixed heavy mineral concentrate product.

Concentrate production is estimated at 87 000 t, with an average valuable heavy mineral assemblage of 14.8% zircon, 17.3% rutile and 16.2% ilmenite, with the balance comprising predominantly iron oxide sands.

Net Present Value/Internal Rate of Return
The estimated project pretax net present value is A$4.9-million and the internal rate of return is 69%, with a one-year payback period from the start of operations.

Value
Capital expenditure is estimated at A$6.5-million.

Duration
Subject to the finalisation of funding, project preconstruction works can start within two months, with the project starting production one year thereafter.

Latest Developments
Metallica is continuing negotiations for partnerships, funding and offtake for the project development, as well as exploration funding on the regional exploration tenements.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated,

Contact Details for Project Information
Metallica Minerals, tel +61 7 3249 3000, fax +61 7 3249 3001 or email admin@metallicaminerals.com.au.