THE BOURSE WHISPERER: MZI Resources (ASX:MZI) has had the Ore Reserve and Mineral Resource for the company’s Keysbrook mineral sands project in Western Australia, independently estimated and reported in accordance with the guidelines of the JORC Code.
The report has shown the operation to have as sufficient Mineral Resources for a potential mine life of 11 years, subject to further land access agreements and extension of existing approvals.
The maiden Ore Reserve estimate of 670,000 tonnes of in-situ heavy minerals underpins the first 5.5 years of the Keysbrook operations.
MZI highlighted that over 88 per cent of the Ore Reserve is in the Proven category.
Keysbrook project – Ore Reserve statement as at 17 October 2012. Source: Company announcement
“The Ore Reserve and Mineral Resources…provides further evidence of the robust economics of the Keysbrook project,” MZI Resources said in its announcement to the ASX.
The company said the estimates will be included in the Keysbrook Feasibility Study, which it expects to release later this month.
“The study and the Ore Reserve and Mineral Resource estimates will form the basis upon which financing will be arranged for the development of the project,” MZI said.
MZI indicated the Ore Reserve estimate features a higher Leucoxene 88 content than it had expected.
Leucoxene 88 has a titanium dioxide (TiO2) content of 88 per cent and is a highly-valued mineral sand product that attracts a premium price.
Zircon is another high value mineral sands product and it comprises a further 14.6 per cent of the Ore Reserve mineral assemblage.
The completion of the Mineral Resource and Ore Reserve estimates ensures MZI remains on track to become a major mineral sands producer, with construction of Keysbrook scheduled to begin in early 2013 and first production targeted for late 2013.
The Keysbrook Project will make MZI one of the world’s largest annual producers of leucoxene, an important feedstock for TiO2 production.