Strandline Resources has announced the construction phase at its Coburn Mineral Sands Project in the Gascoyne region of Western Australia is now 50% completed.
The rapid construction progress, according to the ASX Announcement, has placed the company well on track for first production later this year.
“Preparations for commissioning and operations readiness are also continuing to ramp up,” said Strandline Managing Director Luke Graham.
“Our success to date means we are well placed to capitalise on what is a very strong market for mineral sands, with buoyant global demand and supply limited by the lack of investment in new projects in recent years.”
The project is located 240km north of the established mineral sands export port of Geraldton, with access to global consumers.
Based on mining the initial 22.5-year JORC compliant Ore Reserves, The Coburn mine life currently sees mining continue until 2045, with the potential to extend to 2060.
Mineral sands market remains strong with current spot prices at least 25% above the assumptions contained in the Coburn Definitive Feasibility Study (DFS released in June 2020).
DFS forecast average annual EBITDA of A$104 million over the estimated 22.5 year initial life-of mine; Strandline’s market capitalisation currently circa A$300 million.
“The strength of the market is reflected in the fact that spot prices for zircon and titanium feedstocks are at least 25 per cent above those used in the Coburn DFS,” Mr Graham said.