AMN - TANZANIA: Positive scoping study released for Fungoni

Strandline Resources has achieved a positive scoping study at 100% owned zircon-rich Fungoni project in Tanzania.

Highlights:

-          Independent Scoping Study demonstrates potential for a simple, low CAPEX mineral sands operation to generate early cashflow on the very high grade Fungoni deposit, located near Dar es Salaam, Tanzania

-          Fungoni complements the company’s core strategy to discover and develop large, worldclass mineral sands deposits along the Tanzanian coast

-          Study based on an Indicated Resource of 2.4 million tonnes containing 8.3% heavy minerals (of which 22% is zircon, 4% rutile and 44% ilmenite)

-          Output estimated at 20,000 tonnes/year of non-magnetic concentrate grading 60% zircon and 10% rutile plus 24,000 tonnes/year of chloride ilmenite (55-60% TiO2). Test work confirms the high quality and marketability of these products

-          Modular plant design allows for easily transportable and scalable operations, giving the company the flexibility to quickly and cheaply relocate the plant to future high grade sources of HMS

-          Key economic parameters for the Base Case scenario include: Capital cost excluding working capital – $12.3 million Average annual revenue – $15.3 million Average annual operating cost – $8.1 million – pre-tax IRR 26.5%

-          Given the positive/low risk outcomes, Strandline plans to engage a high calibre engineering group and move directly to a Definitive Feasibility Study seeking a mining decision by the end of 2016.

www.strandline.com.au