Strandline Resources - Quarterly Activities Report

Strandline Resources - Quarterly Activities Report

Strandline Resources (ASX:STA) has picked up the pace on its Tanzanian mineral sands portfolio, with new drilling results, upgraded resources and progression of the Fungoni Feasibility Study highlights for the December quarter. The Company is aiming towards a Final Investment Decision in Q3 2017 with a Scoping Study for a Tanga Hub Operation also to commence in 2017. 

HIGHLIGHTS - December 2016 Quarter

Strandline gathers strategic momentum during the quarter as it ramps up activities in Tanzania.


Strong progress made on Tanzanian heavy mineral sands (HMS) exploration, resource building and engineering feasibility activities across priority projects:

Advancement of Fungoni HMS Project to Achieve Near Term Cashflow

  • 45% increase to Fungoni Mineral Resource Estimate to 16Mt @ 3.1% Total Heavy Mineral (THM), improved JORC classification ready for mine design and confirmed the high value assemblage characteristics of the orebody favourably positioned at surface.
  • Acceleration of Fungoni definitive-level Feasibility Study targeting project Final Investment Decision (FID) in third quarter this year.
  • Discovery of new zone of mineralisation to the immediate North West of Fungoni (titled Fungoni NW) with potential to materially extend global Mineral Resource - assay results pending.

Tanga Region Demonstrates Potential HMS Scale

  • Tanga South air core (AC) drill results confirm potential to substantially increase contained valuable Heavy Mineral (HM) along the Tajiri-Pangani-Tongoni mineralised corridor through sizable extensions and delineation of new Mineral Resources - assay results pending.
  • Tanga North geophysical and geochemical analysis from a series of radiometric anomalies at Kitambula confirms coherent mineralised zones with strong potential to grow the Mineral Resource inventory in the Tanga Region – AC drilling planned in second quarter 2017.
  • Commencement of concept evaluation of Tanga Hub Operation based on mining a series of high grade HMS deposits along the Tanga Region tenement package.
  • Central and Southern Tanzania Tenements Show HMS Promise
  • Detailed analysis of the country-wide geophysics survey has identified significant targets across the Company’s other strategic project areas including Bagamoyo, Kiswere and Mtwara tenements for immediate on ground follow-up by the Company.


  • Zero Debt and $2.8m cash in hand as at 31 December 2016.
  • Unmarketable Parcel Share Sale Facility successfully completed.
  • Several key senior level appointments made to drive project development plans.
  • Improving HMS market trend with the TiO2 pigment industry in recovery phase.

Strandline’s Managing Director and CEO, Luke Graham commented, “The Company is pleased with the progress made on our priority HMS projects in Tanzania (Fungoni and Tanga) and aims to advance project development activities of these promising mining assets concurrently.”

“Based on the Company’s exploration and strategic successes in 2016, the Company will continue its systematic, cost effective drilling programmes across a portfolio of priority targets, focussed on rapid delineation of high value Zircon and Titanium Mineral Resources.”

Exploration and Development

The Company progressed its strategic exploration and development activities in Tanzania through the December quarter. The operational activities were aimed at building known Mineral Resources and discovering new HMS mineralisation zones across priority targets, while in parallel, ramping up engineering feasibility work on the Fungoni HMS Project, near Dar es Salaam.

FUNGONI HMS PROJECT - Resource Extension and Feasibility Study

The Company continued to advance development on its low cost zircon-rich Fungoni Mineral Sands Project located near the port infrastructure of Dar es Salaam (see Figure 1).

As announced on 17 November 2016, Strandline completed an aircore infill and extension drilling campaign of Fungoni’s main orebody. These results provided the basis for a JORC-2012 Mineral Resource update and classification upgrade for the main orebody area, which was announced on 16 January 2017. The drilling was successful in growing the resource base at the Fungoni main orebody area and identifying the very prospective Fungoni NW extension zone:

  • Significant 45% increase in Mineral Resource to 16Mt @ 3.1% THM compared to previous estimate of 11Mt @ 3.1% THM;
  • Upgraded JORC 2012 classification of Mineral Resource to 60% Measured and 40% Indicated, up from 100% Indicated previously;
  • 42% increase in contained HM to 480,000t without decreasing THM grade - previous equivalent 340,000t HM;
  • Confirmed the high unit value assemblage characteristics including Zircon 22%, Ilmenite 40%, Rutile 4% and Leucoxene 1%;
  • Validated the very high grade zone of the mineralisation is favourably positioned at surface presenting a potential simple cost effective mining operation with no overburden, minor vegetation and unconsolidated sand;
  • Confirmed that the mineralisation remains open in the north-west (Fungoni NW) where a continuous linear radiometric anomaly extends for approximately 2km (see Figure 2); and
  • Drilling completed at Fungoni NW verified potential high grade mineralisation extension zone with a promising surface sample of 11.24% THM containing 26% Zircon – assay results pending.

The infill and extension drilling results confirmed a very high grade zircon-rich core within the Mineral Resource (continuous domains), as shown in cross section (Figure 3) and long section (Figure 4). The mineralisation shows strong geological and grade continuity along and across strike, which bodes well for mine planning and scheduling.

The previously reported Inferred resource of 3Mt @ 1.7% THM has not been included or referred to in this current updated Mineral Resource because it does not overlap with the recent drilling and is located at depths beyond this mineral resource block model.

The Mineral Resource estimation was conducted by Greg Jones from IHC-Robbins, a specialist consultant in mineral sands resources, metallurgy and processing (refer to Competent Person statement).

Based on the positive drill results and strong geological definition, the Company has accelerated its engineering feasibility work targeting completion of the Feasibility Study in the third quarter this year. The mine design package, by experienced mining advisors, AMC Consultants Pty Ltd, has commenced in parallel with the metallurgical bulk testwork and process design work conducted by TZMI’s Allied Mineral Laboratory’s and GR Engineering Services respectively. 

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