Name and Location
Urquhart Point heavy mineral sands (HMS) project, Queensland, Australia.

Client
Metallica Minerals and joint venture (JV) partner Ozore Resources.

Project Description
A positive feasibility on the Urquhart 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 production starting one year thereafter.

Latest Developments
The new HMS process plant fabrication and assembly for the project is nearing completion.

The trial assembly of the plant is being undertaken at a South African engineering facility operated by contractor Consulmet.

Following a logistics review, JV parties Oresome Australia and China’s Ozore Resources expect to load the containers onto a ship at the Durban port next month.

Metallica has stated that its site inspections have acknowledged that the engineering and fabrication works of the plant and associated equipment undertaken and supplied by Consulmet are “robust and of a good standard”.

On-site civil works on the designated Urquhart Point mining lease just south of Weipa have been prepared for the arrival of the newly manufactured processing plant.

However, Metallica has noted that the mineral sands prices, particularly titanium minerals rutile and ilmenite, have continued to decline this year.

Therefore, the JV is monitoring this and periodically reviewing options while continuing to progress the development of the Urquhart Point HMS project on a “more cautious step-by-step or staged approach”.

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.