Name of the Project
Coburn mineral sands project.

Location
Gascoyne region, Western Australia.

Project Owner/s
Mineral sands developer Strandline Resources.

Project Description
The project has Joint Ore Reserves Committee-compliant ore reserves of 523-million tonnes grading 1.11% total heavy minerals for about 5.8-million tonnes of contained heavy minerals.

The  mine will produce four final products comprising a premium zircon product (66% zirconium dioxide), zircon concentrate product (payable zircon, titanium and monazite minerals), rutile product (93% titanium dioxide) and a chloride-grade ilmenite product (62% titanium dioxide).

The mine is based on a throughput of 23.4-million tonnes a year, with an average production of 34 000 t/y of zircon, 54 000 t/y of zircon concentrate, 110 000 t/y of chloride ilmenite and 24 000 t/y of rutile, which are expected to supply about 5% of the global zircon market.

There is potential to further increase project reserves and mine life by about 15 years – to 37.5 years – through the conversion of resources extending north and along strike of the current ore reserves.

Potential Job Creation
Peak workforce during construction is estimated to be more than 300 people, with an average operational workforce during production of about 150 direct skilled workers.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$705-million, up from A$544-million in the feasibility study. The pretax internal rate of return has increased from 32% to 37%.

The project has a payback of 2.1 years.

Capital Expenditure
Capital expenditure (capex) has increased from A$257-million in the definitive feasibility study (DFS) to A$260-million in the updated DFS.

Planned Start/End Date
Strandline Resources shipped its first heavy mineral concentrate from its Coburn mineral sands project in December 2022.

Latest Developments
Strandline Resources is going ahead with efficiency improvements at its Coburn mineral sands project, supported by a $A5-million advance from the Northern Australian Infrastructure Facility. The funding will be used for the construction of a new airstrip and associated infrastructure, located 17 km from the Coburn site in Western Australia.

The new airstrip is expected to reduce travel time for Strandline’s employees and contractors, many of whom currently face a three-hour drive to the site. By cutting down travel time, the company aims to improve operational efficiencies and enhance worker retention.

Strandline MD Jozsef Patarica has said that the company is making good progress in implementing its strategy to improve the operational and financial results at Coburn. A key part of this plan involves driving greater efficiencies, which includes retaining staff.

The airstrip project will be funded in multiple draws, with the first amount of A$2.5-million to be released once customary conditions precedent are met.

Key Contracts, Suppliers and Consultants
R Engineering Services, AMC Consultants (detailed mine plan), IHC Robbins, AECOM and TZMI’s Allied Mineral Laboratories (DFS); SRK Consulting (technical due diligence of engineering designs and planning associated with geology, hydrology, mining, processing, infrastructure, logistics, implementation strategies, cost estimates, and environmental, social and permitting); Deloitte Access Economics (independent economic cost-benefit analysis); TZ Minerals International (product quality and marketing); Macmahon (construction of road access and bulk earthworks); Piacentini & Son (in-pit dozer mining units); Primero (engineering, procurement and construction, and commissioning and performance testing of the wet concentration plant, minerals separation plant and associated processing circuits); and Mine Site Construction Services (mining services contract).

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