Strandline Resources - March Quarterly Activities Report
Strandline Resources (ASX:STA) had a busy March quarter, with drill results and high grade resources at Tanga (60Mt at 3.7% THM) in the north of Tanzania, a positive scoping study for the Fungoni zircon-rich project in the central part of Tanzania (IRR 26.5%, capex US$12.3m) and positive drill results from the Madimba East project (incl 9m at 4.1% THM, 7.5m at 5.4% THM) in the south of the country.
Heavy Mineral Sands Exploration (Tanzania)
Positive Scoping Study completed at 100% owned zircon-rich Fungoni Project
- 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.
- Key economic parameters(1) in $US for the Base Case scenario include:
Capital cost excluding working capital – $12.3m
Average annual revenue – $15.3m
Average annual operating cost – $8.1m
Pre-tax internal rate of return – 26.5%.
Rutile-rich resources defined at 100% owned Tanga South Project
- Maiden Mineral Resources at Tanga South Project total 60 million tonnes @ 3.7% Total Heavy Minerals (THM)
- Area drilled so far covers only 5 kilometres of the 20 kilometre Tajiri corridor of surface mineralisation
- Mineral Resources include:
Tajiri – Indicated Resource of 19 million tonnes @ 5.1% THM with a valuable assemblage of 12% rutile, 6% leucoxene, 6% zircon and 65% ilmenite
Tajiri North – Indicated Resource of 40 million tonnes @ 3.0% THM with an assemblage of 7% rutile, 2% leucoxene, 5% zircon and 70% ilmenite.
An initial drilling programme at the Madimba Project outlined a 2 kilometre long, zircon-rich zone, up to 250m wide with thicknesses up to 9m. Significant results include (all from surface): 9m @ 4.1% THM, 7.5m @ 5.4% THM, 7.5m @ 4.2% THM and 7.5m @ 3.9% THM.
Fowlers Bay Gold-Base Metal Project (SA)
- Western Areas continues to work towards completion of the Stage 1 earn-in on Strandline’s ground.
Mt Gunson Copper Project (SA)
- Completion of sale of Project to Torrens Mining Limited.
- Board size reduced from 6 to 4 to better position for next stages.
(1) Cautionary Statement
The Scoping Study referred to in this report is based on low-level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.