AMN - TANZANIA: Fungoni study delivers strong returns

A definitive feasibility study (DFS) on Strandline Resources’ Fungoni Heavy Mineral Sands Project in Tanzania has delivered positive results. The DFS confirms that the project will deliver strong financial returns, has a high unit value product suite, is capital-efficient, and demonstrates the strategic potential of the company’s portfolio of mineral sands assets in Tanzania.

The DFS was completed by a range of independent and highly reputable consultant/contractor firms with experience in mineral sands and Africa project development, including GR Engineering Services, IHC Robbins. AMC Consultants, Knight Piesold, TZ Minerals International, Allied Mineral Laboratories, Environmental Resource Consultants and Kiv Five Consultants.

Strandline says the DFS represents a significant milestone in its strategy to become a low-cost, high-margin mineral sands producer of relevance to key customers around the world. The DFS defines a realistic and proven project delivery plan and rapid pathway to commercial production; confirming the ability to complete construction and commissioning in a nominal 12 month period.

The project is based on mining ore at an annual rate of 2 million tonnes, processing onsite using multiple stages of beneficiation and mineral separation equipment to produce saleable, low impurity, premium quality industrial mineral products.

A mineral resource estimate of 22 million tonnes at 2.8% total heavy mineral (THM), classified 41% measured and 59% indicated, provides the geological foundation for the project, with an initial ore reserve inventory of 12.3 million tonnes at 3.9% THM.

The high-grade ore body is exposed at surface with the mineralisation showing strong geological continuity along strike and at depth. The mining study confirms conventional mining of the higher grade optimised domains from surface and averaging 12 metres thick, with a maximum thickness of 22 metres.

There is real potential to extend the Fungoni project LOM by further optimising the mine pits as product pricing improves thus expanding mineral resource that can be mined profitably.

The company has undertaken engineering trade-off evaluations during the DFS to optimise the processing route, product marketability, minimise execution risk whilst ensuring a practical and responsible project solution is achieved at the lowest cost base.

Advanced beneficiation and separation of minerals will take place in Tanzania with high local content maximising value generation and capital inflows to Tanzania. The DFS confirms a very favourable product suite and high mineral recoveries.

The project is favourably located about 25km from Dar es Salaam port in a growing commercial/industrial district and will benefit from the close proximity to existing infrastructure, including an established road network and services industry.

Strandline’s managing director Luke Graham said, “This DFS confirms that Fungoni is an outstanding project which will generate strong financial returns for shareholders and deliver significant socio economic benefits 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 path to profitable production is short, based on proven low-cost execution strategies, the payback period and rates of return are very attractive, and there is potential to grow mine life and re-use the infrastructure on future Strandline projects.

“The Fungoni Project is the first in the company’s pipeline of quality mineral sands assets in Tanzania, paving the way for its multiple future development options.”

www.strandline.com.au