Name of the Project
Urquhart Point heavy mineral sands (HMS) project.

Location
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.

Jobs to be Created
Not stated.

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
First production from Urquhart is expected during the second quarter of 2017.

Latest Developments
The modularised HMS processing plant built in South Africa, arrived in Australia in December 2015 and is currently stored near Brisbane. Given the continuing low heavy mineral sands prices, the JV has deferred construction of the processing plant to focus on the higher value bauxite project.

Following several approaches from third parties, the JV is progressing several HMS options that may deliver value to this asset within the JV.

The HMS development plan can be implemented very quickly to deliver production if there is an improvement in commodity prices.

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.