MZI starts producing at Keysbrook

MZI Resources has officially achieved first production at its Keysbrook mineral sands project near Serpentine, three weeks ahead of schedule.

The miner announced today that first ore had been fed into the mining feed unit and the wet concentration plant, producing heavy mineral concentrate.

Keysbrook operations will be progressively commissioned to full the operation’s full capacity during the quarter, with first sales targeted for late December.

It follows news earlier this week that MZI had raised up to $45 million from investors to repay loans and fund ongoing work at Keysbrook.

MZI managing director Trevor Matthews said first production was a great milestone for shareholders and the team.

“To complete the wet concentration plant well ahead of schedule and on budget reflects the quality of the team and project,” he said.

“The project is performing exceedingly well and we now look forward to commencing product sales later this year.”

Keysbrook is scheduled to produce over 95,000 tonnes of leuxocene and zircon products per annum, at earnings before interest, tax, depreciation and amortisation margins of over 50 per cent.

MZI shares were 7.1 per cent higher to 45 cents each at 10:45am.