Name of the Project
Fungoni mineral sands project.

Location
The project is located about 25 km from the Port of Dar es Salaam, in Tanzania.

Client
Jacana Minerals, a wholly owned subsidiary of Strandline Resources.

Project Description
A definitive feasibility study (DFS) has confirmed that the proposed project will deliver strong financial returns, has a high unit-value product suite and is capital efficient.

The project has a mine life of 6.2 years; however, there is potential to extend the life-of-mine (LoM) by further optimising the mine pits as product pricing improves, thus expanding the mineral resource that can be mined profitably.

The project has a mineral resource estimate of 22-million tonnes at 2.8% total heavy minerals (THMs), with 41% classified in the measured category and 59% in the indicated category. Initial ore reserves have been estimated at 12.3-million tonnes grading 3.9% THMs.

The project is based on mining two-million tonnes a year of ore producing 302 300 t of saleable mineral sands using multiple stages of beneficiation and mineral separation equipment on site to produce low-impurity, premium-quality industrial mineral products.

The high-grade orebody is exposed at surface, with the mineralisation showing strong geological continuity along strike and at depth. 

Potential Job Creation
The project is expected to create 100 direct job opportunities.

Net Present Value/Internal Rate of Return
An updated DFS has increased the project’s pretax net present value from $42.9-million, at a 10% discount rate, to $48.7-million, while the pretax internal rate of return has increased from 56% to 61%. Payback is estimated at 2.7 years from first production.

Value
The project is estimated at $35-million.

Duration
Following a decision to mine, the project schedule from the start of the project to completion is 52 weeks.

Latest Developments
With key mining and environment licences in place, the DFS completed, 100% of Fungoni’s product presold by offtake, major construction contracts executed, finance due diligence concluded and credit approval received, Strandline is well on track to develop the project.

Strandline Resources has announced that it has achieved another key milestone towards the development of the Fungoni mineral sands project, with Nedbank CIB obtaining credit approval to underwrite a five-year, $26-million project finance facility for the project.

The facility accounts for the majority of Fungoni’s total estimated capital cost of $35million, including taxes, levies and excluding financing costs.

All parties are now working towards completion of facility documentation and satisfaction of customary conditions precedent to financial close and first draw down.

Key Contracts and Suppliers
GR Engineering Services (process and nonprocess infrastructure design, DFS compilation, and the development of overall capital and operating cost estimates); IHC Robbins (geology and mineral resource estimation); AMC Consultants (mine study and ore reserve development); Knight Piésold (hydrology, hydrogeology, tailings storage facility design and geotechnics); TZ Minerals International (product marketing study and commodity price forecast); Allied Mineral Laboratories (bulk metallurgical testwork and analysis); Environmental Resource Consultants (land access compensation and resettlement planning) and Kiv Five Consultants (environmental-impact assessment and environmental management plan).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Strandline Resources, tel +61 8 9226 3130, fax +61 8 9485 2070 or email enquiries@strandline.com.au.