Strandline Resources - High Value Fungoni Mineral Resource Continues to Expand
Strandline Resources (ASX:STA) has increased the Fungoni Mineral Resource in Tanzania, with 37% increase in tonnage and 27% increase in contained Heavy Mineral. The new Resource includes extension drilling from the Fungoni NW zone. Strandline will incorporate the larger Resource into updated mining and processing plans as part of the Fungoni Feasibility Study, due for completion in early H2.
- Significant increase to Fungoni Mineral Resource Estimate - Extension drilling of the Fungoni northwest zone (Fungoni NW) has successfully grown the global Fungoni Mineral Resource and confirmed the continuity of the higher grade, zircon dominated upper zone:
- 38% increase (up ~6Mt) in the global Mineral Resource to 21.7Mt @ 2.82% Total Heavy Mineral (THM) at a 1% THM cut-off, previously 16Mt @ 3.1% THM;27% increase (up ~130,000t) in contained Heavy Mineral (HM) to over 610,000t from previous 480,000t;
- 27% increase (up ~130,000t) in contained Heavy Mineral (HM) to over 610,000t from previous 480,000t;
- Upper zone core of mineralisation 10.8Mt @ 4.4% THM for 472,000t of HM at a 1.5% THM cutoff, comprising 42.4% Ilmenite, 18.3% zircon, 4.5% rutile and 1.2% leucoxene; and
- High degree of confidence in the Mineral Resource with 41% Measured and 59% Indicated, with both categories suitable for Ore Reserve estimation and detailed mine plan optimisation.
- Preliminary Mining study promises to improve project metrics – Mine optimisation analysis by AMC Consultants confirms efficient mining from surface, targeting the higher grade upper zone to achieve a significant improvement on the previous Fungoni engineering study in terms of a higher mining rate and increased tonnes of recovered valuable HM for the Project.
- Exploration continues in the broader Fungoni Region with a surface geochemicalsampling programme of radiometric anomalies and known mineralised trends identifying prospective high grade mineralised zones in close proximity to the Fungoni Project - sample assaying and assemblage testwork to commence soon, followed by Aircore drilling.
Mineral sands developer, Strandline Resources (Strandline or the Company) is pleased to provide an update on its 100% owned Fungoni Heavy Mineral Sands (HMS) Project, located near Dar es Salaam in Tanzania.
This update to the Fungoni Mineral Resource estimate includes the recently discovered Fungoni NW extension zones adding significant HM tonnage to the ore-body.
The mining study, currently underway, will incorporate this new Resource and targets a substantial improvement to the previous Fungoni study in terms of mining rate, HM tonnage, mine life and ultimately project economics.
Strandline’s Managing Director and CEO, Luke Graham commented, “The Company hassuccessfully doubled the size of the Fungoni Mineral Resource estimate since the start of the year, from 11Mt to now 22Mt, and significantly increased the contained HM available for DFS level mine optimisation.
“The Company expects strong conversion to Ore Reserve of the higher grade upper zones where the majority of valuable, high quality heavy minerals reside. The visual resultsfrom the recent soil sampling exercise in proximity to the Fungoni Project is also encouraging, showing potential to further expand Resources in the area over time.
“The Company is excited by the near term project potential of Fungoni as well as progress made on the Company’s other strategic project pursuits in Tanzania in an improving Mineral Sands Market.”
Strandline continues to advance development of its zircon-rich Fungoni Mineral Sands Project, located 25km south of Dar es Salaam port infrastructure (Figure 1). The Project is predicated on a low capital cost and fit-formarket operating model to produce saleable zircon, rutile and ilmenite HMS products to generate near-term cashflow for the Company.
Results from Strandline’s extensional drill programme, along strike from Fungoni towards Fungoni NW showed zones of mineralisation comparable to the main Fungoni mineralised body. These new zones of mineralisation have now been included in this global Mineral Resource update and supersede the results previously released on 16 January 2017. The infill drilling has been successful in delineating additional high grade zones with a high proportion of high unit value minerals that include zircon, rutile and leucoxene.