MZI Resources increases Keysbrook THM Resource

THE DRILL SERGEANT: MZI Resources (ASX: MZI) has increased the Mineral Resources at the company’s Keysbrook mineral sands project in Western Australia by 60 per cent to 78.9 million tonnes at an average grade of 2.5 per cent Total Heavy Mineral (THM).

The increase follows the company undertaking the re-evaluation of permits, agreements and approvals.

MZI explained this work has allowed previously drilled mineralisation to be included in the Mineral Resource.

This increase at the Keysbrook project comprises:

–    An Indicated Resource of 26.3 million tonnes at 2.2 per cent THM; and

–    An Inferred Resource of 3.5 million tonnes at 2.4 per cent THM.

 

Mineral Resource estimate. Source: Company announcement

 

MZI said it considers the remaining 29.7 million tonnes Mineral Resource as being readily accessible; however, the company indicated further negotiation with landholders, local government and regulators is required before any work can proceed.

The projected mine life of the Keysbrook project is:

–    5.5 years – Ore Reserve based on current approvals;

–    7.2 years – Feasibility Study mine life based on accessible Mineral Resources plus shire approvals; and

–    +15 years – potential mine life based on increased Mineral Resource estimate.

“In MZI’s opinion, there is significant potential for further increases in the Keysbrook Mineral Resource, with the mineralisation envelope defining the Mineral Resource being open in all directions,” MZI said in its ASX announcement.