THE BOURSE WHISPERER: MZI Resources (ASX: MZI) announced the commencement of heavy mineral concentrate (HMC) production at the company’s Keysbrook mine site in Western Australia.
MZI explained it had recently begun 24 hour mining operations and mechanical completion of the Mining Feed Unit (MFU) and the Wet Concentration Plant (WCP) at Keysbrook.
Now the first ore has been fed into the MFU and WCP with HMC resulting in the start-up of production.
The company was eager to impress that the Keysbrook project has achieved HMC production three weeks ahead of its original schedule and is currently on budget.
“First HMC production is a great milestone for our shareholders and the team at MZI,” MZI Resources managing director Trevor Matthews said in the company’s announcement to the Australian Securities Exchange.
“To complete the WCP well ahead of schedule and on budget reflects the quality of the team and project.
“The Keysbrook project is performing exceedingly well and we now look forward to commencing product sales later this year.”
MZI intends to progress the commissioning of Keysbrook operations progressively to full capacity during the current quarter.
Heavy mineral concentrate will be stockpiled on the Keysbrook site ahead of planned commissioning of an upgraded and expanded mineral separation plant in November 2015, with first sales targeted for late December 2015.
Keysbrook is currently scheduled to produce over 95,000 tonnes of leucoxene and zircon products annually, at EBITDA margins greater than 50 per cent.
Testwork to further increase WCP heavy mineral recoveries is currently underway as the MZI continues with early stage expansion studies.