AMN - TANZANIA: Fungoni development advances

Strandline Resources continues to progress development of its zircon-rich Fungoni Heavy Mineral Sands (HMS) project in Tanzania. Fungoni is based on a low capital cost, fit-for-market operating model to produce saleable ilmenite, rutile and zircon mineral sand products.

The aims are supported by the project’s location, just 25km south of Dar es Salaam port infrastructure.

The company remains on target to complete the Fungoni feasibility study and achieve a final investment decision for the project execution in the third quarter of 2017.

It says project approvals are progressing well with positive support from Tanzanian authorities and the company is now in a position to issue an updated Environmental Impact Assessment to the National Environment Management Council, based on a larger scale HMS operation.

Preparation for the Mining Licence application has commenced in close collaboration with the Ministry of Energy and Minerals, providing the opportunity for Strandline to emphasise commitment to responsible and sustainable development, value generation and full compliance to Tanzania regulation.

Other highlights:

 Bulk metallurgical test work confirms simple and practical process flowsheet for the wet concentrator and mineral separation plants, incorporating embedded design flexibility and robustness to tailor the final product suite to maximise product value, marketability and project returns;

 Preliminary flowsheets incorporate proven mineral process beneficiation and separation technology achieving excellent process performance metrics, including high recoveries for preferred products;

 High quality final product suite to be produced suitable for the global HMS markets, including ilmenite quality favourable for the production of TiO2 pigment via the Chloride Process and high purity zircon containing very low contaminants potentially suitable for the ceramic’s industry;

 Product offtake discussions and market testing have commenced with a high level of market interest from major end-users in an improving heavy mineral sands market;

 The company has begun early considerations with a range of parties to provide financing support including senior debt, equity, and offtake financing. Strandline continues to have the strong support of its largest shareholder, Tembo Capital;

 The mine study is continuing aimed at producing an optimal high grade ore reserve, mine plan and efficient mining method. The study is targeting a significant improvement to the previous Fungoni study in terms the mining rate and tonnes of recovered valuable heavy mineral; and

 Auxiliary engineering packages relating to hydrogeology, hydrology, geotechnics and tails storage facility design have also commenced through the recent appointment of Knight Piésold Consulting.

Strandline’s Managing Director and CEO Luke Graham commented: “The company has made excellent progress on the Fungoni feasibility study with focus now turning to fine tuning the mine sequence, plant and infrastructure design, logistics, operating philosophies, execution plan and cost estimates. In parallel, the company will rapidly progress regulatory project approvals, marketing and a range of project funding solutions.”

www.strandline.com.au