Sunday , April 14 2024

Study deliver positive results for Tanzania’s Fungoni

Strandline Resources’ definitive feasibility study on Fungoni Heavy Mineral Sands in Tanzania has delivered positive results.

According to the company the DFS confirms the project will deliver strong financial returns.

The results indicate that the project is a high unit value product suite, is capital-efficient, and demonstrates the strategic potential of the company’s portfolio of mineral sands assets.

Completed by contractor firms – GR Engineering Services, IHC Robbins, AMC Consultants, Knight Piesold, TZ Minerals International, Allied Mineral Laboratories, Environmental Resource Consultants and Kiv Five Consultants the defines a realistic and proven project delivery plan and rapid pathway to commercial production; confirming the ability to complete construction and commissioning in a nominal 12 month period.

Strandline says the DFS represents a significant milestone in its strategy to become a low-cost, high-margin mineral sands producer of relevance to key customers around the world.

“This DFS confirms that Fungoni is an outstanding project which will generate strong financial returns for shareholders and deliver significant socio economic benefits for the people of Tanzania,” Strandline’s Managing Director Luke Graham said.

He said the project has an exceptional high unit-value heavy mineral assemblage, simple to mine, recovers +93% of the valuable mineral in the ground and produces a highly marketable product suite.

“The path to profitable production is short, based on proven low-cost execution strategies, the payback period and rates of return are very attractive, and there is potential to grow mine life and re-use the infrastructure on future Strandline projects.

“The Fungoni Project is the first in the company’s pipeline of quality mineral sands assets in Tanzania, paving the way for its multiple future development options,” said Graham.

The company has undertaken engineering trade-off evaluations during the DFS to optimise the processing route, product marketability, minimise execution risk whilst ensuring a practical and responsible project solution is achieved at the lowest cost base.

Advanced beneficiation and separation of minerals will take place in Tanzania with high local content maximising value generation and capital inflows to Tanzania. The DFS confirms a very favourable product suite and high mineral recoveries.

The project is favourably located about 25km from Dar es Salaam port in a growing commercial/industrial district and will benefit from the close proximity to existing infrastructure, including an established road network and services industry.

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