PERTH-BASED mineral deposits miner Olympia Resources has announced a long-term zircon supply contract at its flagship Keysbrook mineral sands project, south of Perth.At prevailing zircon prices, the contract will be worth about $48 million in total revenues over the projected eight-year life of the mine, with estimated total revenue from all titanium and zircon production from Keysbrook to be around $317 million. Based on a bankable feasibility study, the capital cost associated with mining at Keysbrook is $31 million, and with confirmed sales the mine is expected to generate net operating cash flows in the order of $96 million. The contract is with a major European zircon miner and at 6,000 tonnes a year, represents half of Olympia’s zircon production from Keysbrook.
