Australian Strandline Resources has completed a definitive feasibility study (DFS) for the Fungoni heavy mineral sands project in Tanzania.
The study confirmed maiden ore reserve of 12.3Mt at 3.9% total heavy mineral (THM), with internal rate of return (IRR) of 56% and revenue-to-operating cost ratio of 2:7.
The company needs to incur an expenditure of $30m towards the development of the project.
Strandline Managing Director Luke Graham said: “This DFS confirms that Fungoni is an outstanding Project which will generate strong financial returns for Strandline shareholders and deliver significant socio economicbenefits for the people of Tanzania. The Project has an exceptional high unit-value heavy mineral assemblage, is simple to mine, recovers +93% of the valuable mineral in the ground and produces a highly marketable product suite.”
The mineral sands industry is orientated towards the supply of two main raw products, zircon and titanium dioxide ores.