ASX-listed mineral exploration and development company, Strandline Resources, has revealed the results of the Engineering Scoping Study on its 100 per cent owned Tajiri Mineral Sands Project in Tanzania.
Tajiri’s deposit is a large northerly trending zone comprising a series of titanium-dominated mineral sands deposits stretching along 30 kilometres of Tanzanian coastline.
The Engineering Scoping Study indicates that Tajiri will generate strong financial returns over a long mine life, underpinning Strandline’s long-term production outlook in Tanzania.
Some highlights from the Study include:
- Project pre-tax NPV of US$205 million (pre-debt, real, 10 per cent discount rate);
- Project pre-tax IRR of 36 per cent, with a high-margin revenue-to-operating cost (C1) ratio of 2.4;
- JORC-compliant Mineral Resources of 268 Million tonnes (Mt) at 3.3 per cent Total Heavy Mineral forms the basis of the Study;
- Mine pit optimisation identifies Production Targets of +23 years at a mining rate of 8 Million tonnes per annum (Mtpa);
- Life of mine (LOM) revenue of US$1.6 billion and LOM EBITDA of US$0.9 billion (with an average annual EBITDA of US$37 million);
- Conventional mineral sands processing technology capable of producing a high-value product suite of ilmenite, HiTi (rutile-leucoxene), zircon, monazite and garnet concentrates;
- 18-month design and construct duration to achieve first ore to process plant; and
- Development capital of US$125 million to establish an open-pit mining and processing operation.
According to the Study, Tajiri also offers significant long-term employment and career development opportunities, as well as a range of local enterprise opportunities.
Peak workforce during construction is estimated to be approximately 300 people, with an average operational workforce during production of approximately 150 workers.
Strandline Managing Director, Luke Graham, said the Scoping Study confirms the technical and economic strength of Tajiri.
“This outstanding result highlights the strategic value and project optionality of Strandline’s emerging mineral sands project portfolio,” he said.
More information on the results of the Tajiri Mineral Sands Project’s Engineering Scoping Study can be found here.
Tajiri Project Location Map and outline of tenements and mine production targets. Image courtesy of Strandline Resources Limited.
