AMN - TANZANIA: Fungoni resource continues to expand

There has been an increase in resources at Strandline Resources’ Fungoni Heavy Mineral Sands (HMS) Project near Dar es Salaam in Tanzania. Tonnage is up by 38%, or around 6 million tonnes, and contained heavy minerals are up by 27%, or around 130,000 tonnes.

The new resource includes extension drilling from the Fungoni NW zone. It now stands at 21.7 million tonnes @ 2.82% Total Heavy Mineral (THM) at a 1% THM cut-off for more than 610,000 tonnes of contained Heavy Mineral (HM).

Strandline will incorporate the larger resource into updated mining and processing plans as part of the Fungoni Feasibility Study, which is due for completion early in the second half of 2017.

The drilling has also confirmed the continuity of the higher grade, zircon dominated upper zone. This zone now contains 10.8 million tonnes @ 4.4% THM for 472,000 tonnes of HM at a 1.5% THM cut-off, comprising 42.4% Ilmenite, 18.3% zircon, 4.5% rutile and 1.2% leucoxene.

Strandline says there is a high degree of confidence in the new estimate with 41% in the measured category and 59% in indicated. Both categories are suitable for ore reserve estimation and detailed mine plan optimisation.

The mining study also targets a substantial improvement to the previous Fungoni study in terms of mining rate, HM tonnage, mine life and ultimately project economics.

A mine optimisation analysis by AMC Consultants confirms efficient mining from surface, targeting the higher-grade upper zone to achieve a significant improvement on the previous Fungoni engineering study in terms of a higher mining rate and increased tonnes of recovered valuable HM.

Exploration continues in the broader Fungoni region with a surface geochemical sampling program of radiometric anomalies and known mineralised trends identifying prospective high-grade mineralised zones in close proximity to the Fungoni project.

Sample assaying and assemblage test work will commence soon, followed by Aircore drilling.

Strandline’s Managing Director and CEO Luke Graham said, “The company has successfully doubled the size of the Fungoni mineral resource estimate since the start of the year, from 11 million to now 22 million tonnes, and significantly increased the contained HM available for DFS level mine optimisation.

“The company expects strong conversion to ore reserve of the higher grade upper zones where the majority of valuable, high quality heavy minerals reside. The visual resultsfrom the recent soil sampling exercise in proximity to the Fungoni project is also encouraging, showing potential to further expand resources in the area over time.

“The company is excited by the near-term project potential of Fungoni as well as progress made on the company’s other strategic project pursuits in Tanzania in an improving mineral sands market.”

www.strandline.com.au