17/11/2008 - 11:14

Gov approval for Iluka's SA project

17/11/2008 - 11:14

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Iluka Resources has received government approval for its Jacinth-Ambrosia mineral sands project in South Australia.

Iluka Resources has received government approval for its Jacinth-Ambrosia mineral sands project in South Australia.

The approval allows Iluka to commence principal activities necessary for the development of mining and processing operations at the major zircon deposit.

Also, the WA state government recently introduced into an amendment to the Mineral Sands (Eneabba) Agreement Act 1975 which, when passed, will allow Iluka to process Jacinth-Ambrosia heavy mineral concentrate at the Narngulu mineral processing facilities in Western Australia.

This amendment is expected to be introduced into the House of Assembly during the current sitting after already passing through the Legislative Council.

The J-A project is expected to produce at least 300 thousand tonnes per annum of zircon from 2011 and have an economic life at least 10 years. The project is expected to create 250 direct jobs during construction and approximately 110 positions during the operational phase.

This follows from Iluka exploration results indicating the presence of a significant, heavy mineral occurrence from recent drilling on its 100 per cent owned EL3268 in the Eucla Basin of South Australia, to be called The Mojave Prospect.

Located approximately 90 kilometres east of Iluka's Jacinth and Ambrosia deposits, this prospect was discovered during a regional greenfield's drilling programme at Mojave with the heavy mineral grade ranging from 1 per cent up to a maximum of 22.2 per cent.

Iluka's total exploration tenement holding in the Eucla Basin in South Australia and Western Australia is now 57,800 square kilometres, which includes the recently purchased Colona JV tenements from Adelaide Resources Limited.

Iluka's general manager, exploration and technical services, Peter Benjamin said the company's 2009 exploration programme will test the wider regional HM potential with the aim to discover and delineate further zones of HM mineralisation.

"The initial results to date provide the company with the encouragement that a significant area may warrant testing," Mr Benjamin said.

 

 

Full announcement below:

 

KEY REGULATORY APPROVAL RECEIVED FOR JACINTH-AMBROSIA PROJECT


Iluka Resources Limited ("Iluka") today received a key approval, from the South Australian Government, for its Jacinth-Ambrosia mineral sands project, located approximately 200 kilometres North West of Ceduna in the Eucla Basin of South Australia.

The signing of the Construction Mining and Rehabilitation Plan ("Construction MARP") for the project allows Iluka, subject to a number of further procedural approvals, to commence principal activities necessary for the development of mining and processing operations for this major zircon deposit. The Construction MARP will allow the opening of the mining pit, as well as the establishment of the necessary infrastructure and processing facilities on site.
Iluka had previously gained approval to commence initial site works, which have included the installation of temporary accommodation facilities for the construction crew and installation of a water pipeline from the bore field.

Civil works packages have been awarded for construction of an airstrip and for road upgrading, as well as installation of a power station. In addition, Iluka has commenced refurbishment of a wet concentrator plant which has been relocated from the United States to South Australia.

Hans Umlauff, Iluka's General Manager, South Australian Development stated: "This is an important regulatory approval for the project. I would like to acknowledge the support of the South Australian Government and its regulatory agencies in providing this approval in an expeditious manner. The project remains on schedule for first production by mid 2010. To date approximately $100 million has been committed to the project, with forecast project expenditure levels remaining within the total budget of $420 million."

The Jacinth-Ambrosia project will represent a major, long life and high quality source of global zircon supply. It is expected to produce at least 300 thousand tonnes per annum of zircon from 2011 and have an economic life at least 10 years. The project is expected to create 250 direct jobs during construction and approximately 110 positions during the operational phase.

The Western Australian Government has recently introduced into State Parliament an amendment to the Mineral Sands (Eneabba) Agreement Act 1975 which when passed will allow Iluka to process Jacinth-Ambrosia heavy mineral concentrate at the Narngulu mineral processing facilities in Western Australia. This Amendment has passed through the Legislative Council and is expected to be introduced into the House of Assembly during the current sitting.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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