Strandline upbeat on Fungoni DFS

Heavy mineral sands explorer Strandline Resources says it will cost $US30 million ($A38 million) to bring its Fungoni project in Tanzania into production.

The local company released a definitive feasibility study on Fungoni today, which detailed a 2 million tonne per annum on-site processing operation with an initial mine life of about 6 years.

Managing director Luke Graham said the study confirmed Fungoni as a solid project which would generate strong returns to Strandline shareholders.

“The project has an exceptional high unit-value heavy mineral assemblage, is simple to mine, recovers over 93 per cent of the valuable mineral in the ground and produces a highly marketable product suite,” he said.

“The path to profitable production is short, based on proven low-cost execution strategies, the payback period and rates of return are very attractive, and there is potential to grow mine life and re-use the infrastructure on future Strandline projects.

“The Fungoni project is the first in the company’s pipeline of quality mineral sands assets in Tanzania, paving the way for its multiple future development options.”

Strandline shares were unchanged at 0.5 cents each at 1pm.