Gunson Resources said today that it has gained Environmental Protection Authority endorsement of its mineral sands project near Shark Bay.
Gunson Resources said today that it has gained Environmental Protection Authority endorsement of its mineral sands project near Shark Bay.
Addressing Gunson's annual general meeting last month, chairman William Cunningham described the project as the "third largest greenfields zircon development in the world".
Gunson anticipates production at the project by the second quarter of 2007.
The miner's shares were trading 5.5 per cent higher at 28.5 cents, an hour before the close of trade today.
The full Australian Stock Exchange announcement can be read below.
EPA RECOMMENDS COBURN
MINERAL SAND PROJECT FOR
APPROVAL
In a bulletin published today, the Western Australian Environmental Protection
Authority (EPA) has recommended to the Minister for the Environment that the
proposed heavy mineral sand mine at Coburn, near Shark Bay be granted
environmental approval. A copy of this bulletin is on the Gunson website (see
address below). The EPA's recommendation follows an exhaustive 2.5 year
scientific study and government/public review process costing the Company in
excess of $2 million.
Submissions from the public in mid 2005 focused on the potential impact on
district groundwater supplies, the effectiveness of rehabilitation after mining
and the impact on the nearby Shark Bay World Heritage Property. The
Company responded to these submissions in October 2005, addressing public
concerns by removing the northern third of the ore body from the mining
proposal, Pit 10. Gunson has committed to complete more studies to
demonstrate that successful rehabilitation can be achieved and that Pit 10 can
be developed without adverse impact on the World Heritage Property, before
resubmitting this northern pit for approval in several years time. Mining is not
scheduled in this area of the Coburn Project until year 13.
The anticipated timetable for the remainder of the statutory approvals process
is outlined below.
-
Two week public appeals period on the EPA Report and
Recommendations: 5
th
¬ 19
th
December 2005.
-
State and Commonwealth Environment Ministers' decision: early 2006.
-
Mining approvals: early 2006.
In the meantime, equipment supply, mine service and product sales contracts
are being advanced with a fixed price, fixed delivery quote for the minesite
heavy mineral concentrator expected later this month. Financial approvals are
scheduled for the first quarter of 2006, with construction forecast to begin in
the second quarter of 2006. First production is scheduled for the June quarter
of 2007.
