Strandline scopes out Tajiri

Strandline Resources has made key strides in its developments for its Fungoni mineral sands projects, and its longer life Tajiri project in Tanzania (reports MiningNews).
9th October 2020
Resources Rising Stars

Strandline Resources has made key strides in its developments for its Fungoni mineral sands projects, and its longer life Tajiri project in Tanzania (reports MiningNews).

A scoping study for the titanium-dominated resource at Tajiri has indicated a low-cost operation that should generate strong financial returns, with a pre-tax net present value of US$205 million and an internal rate of return of 36%.

The engineering study used a resource of 268 million tonnes at 3.3% total heavy minerals, with mining targeted at 8Mtpa, targeting around 185Mt of the deposit.

Average HMC production is expected to be 261,000tpa, comprising 150,000tpa ilmenite, 61,000tpa zircon and 16,000t rutile-leucoxene, with some monazite and garnet concentrates.

At that level Tajiri should generate revenue of $1.6 billion over the 23-year life of the mine, with EBITDA of $900 million, and annual earnings of $37 million.

The development will be based on conventional mineral sands processing technology.

The $125 million development would take around 18 months to design and construct, and is 35km south of the Tanga port, in an area well services by infrastructure.

Strandline said it intended to progress optimisation studies and permitting for Tajiri alongside its more advanced Coburn and Fungoni projects.

Managing director Luke Graham said the scoping study confirmed the company now had three world-class mineral sand developments in its portfolio.

He remains confident that demand for mineral sands will outpace supply.

Further, at the development-ready Fungoni, which is scheduled to be Strandline's initial development in East Africa, Graham said discussions with the Tanzanian government for its planned 16% equity interest were progressing well on a framework agreement, with a final draft now being considered by all parties.

The agreement would also consider Tajiri, and is a key to a $26 million funding facility with Nedbank, which accounts for most of Fungoni's %35 million capital requirement.

Strandline's stock has traded between A6.7c-29c over the past year, and closed up 13.5% at 21c.

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