MZI proves more resources at Keysbrook
PERTH (miningweekly.com) - Mineral sands hopeful MZI Resources has increased the mineral resource estimate at its flagship Keysbrook project, in Western Australia, by some 60%.
The ASX-listed company reported on Friday that the Keysbrook project is now estimated to host some 78.9-million tons, at an average grade of 2.5% total heavy minerals.
The company told shareholders that the increase came as a result of a re-evaluation of permits, agreements and approvals, which allowed for previously drilled mineralisation to be included in the mineral resource.
The additional 29.7-million tons of resource were readily accessible, said MZI; however, further negotiations with landholders, local government and regulators were required.
An October feasibility study on the Keysbrook project found that that the resource could support a mine life of some seven years, with the potential to extend the mine life to 11 years.
The project would involve the development of a 4.5-million-ton-a-year dry sand mining operation with an on-site wet plant processing at a rate of 110 000 t/y of heavy mineral concentrate, grading 85% heavy minerals, to produce an average 91 000 t/y of dry mineral sands product.
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