THE BOURSE WHISPERER: Diatreme Resources has announced a maiden ore Reserve estimate for the company’s Cyclone zircon project in Western Australia.
The Reserve estimate is part of an ongoing Prefeasibility Study the company is carrying out on the project.
The Cyclone PFS pit design contains a Probable Ore Reserve of 97 million tonnes at 2.5 per cent heavy minerals (HM), including 0.79 per cent Zircon, containing 2.4 million tonnes HM, including 770 thousand tonnes of Zircon.
Source: Company announcement
According to Diatreme the ore Reserve is sufficient for 9.7 years of operations at a planned mining rate of 10 million tonnes per annum.
The company said it has further infill drilling and more detailed metallurgical testwork planned for the area to be carried out during the first two years of a mining operation.
“The company has reached a signal milestone with the release of a Maiden Ore Reserve estimate for the Cyclone project together with the recently announced metallurgical testwork results which indicated high value zircon and titanium mineral products,” Diatreme Resources executive chairman and chief executive officer Tony Fawdon said in the company’s announcement to the Australian Securities Exchange.
“The prefeasibility study is at the point wherein a market study currently underway will augment the Ore Reserve estimate with information on pricing for specific Cyclone mineral products.
“This market study will allow the calculation of the revenue stream from the proposed mining operation.
“Results of work to date have confirmed the company’s optimism in progressing the future development of the Cyclone project.
“With forecast historic high mineral price levels and supply shortfalls in zircon and titanium feedstocks expected over the coming decade, it is clearly a good time for Diatreme to bring the Cyclone project on stream.”