Projects in Brief

Fungoni Zircon Project, Tanzania

The zircon-rich Fungoni Project is the Company’s most advanced Tanzanian based development, predicated on a low capital cost fit-for-market operating model to produce saleable titanium and zircon mineral sands products to generate near term cashflow for the Company. The Fungoni project is located 25km south of Dar es Salaam port infrastructure.

The high grade ore-body is favorably positioned at surface and presents a potential simple and efficient mining operation with no overburden, minor vegetation and unconsolidated sand. The Company announced a Mineral Resource Estimate of 16mt @ 3.1% Total Heavy Mineral (THM) of 60% Measured and 40% Indicated. The THM contained a high unit value assemblage in the order of 22% Zircon, 5% Rutile, 1% Leucoxene and 40% Ilmenite. The Company has identified potential ore body extension opportunities to the immediate North West (titled Fungoni NW Extension) and other encouraging regional anomalies.

The Fungoni engineering design concept is based on a fit-for-purpose transportable modular process plant using innovative mineral sands technology and safe design principles. Definitive level engineering and study development is rapidly progressing through 2017 with the view to realise a near term production goal in the second half of 2018.

Broader Exploration and Development Play, Tanzania

The Company holds a dominant 100% owned land tenement package stretching approximately 350km along the prospective Tanzanian coastline and is aggressively exploring for high unit value HMS deposits close to infrastructure.

The focus is firmly on identifying a pipeline of quality projects and the Company has already successfully discovered and rapidly delineated multiple high grade mineral resources (Indicated JORC classification) in the Tanga Hub Area in the northern region of Tanzania.

Extension and new discovery drilling is planned to continue in the medium term, whilst in parallel, the Company will progress through the various stage of feasibility study and approvals process in readiness for project delivery.

Coburn Zircon Project, Western Australia

The Coburn Zircon Project is a large Zircon-rich HMS deposit, located 250km north of the port city of Geraldton in Western Australia. The project is fully permitted and has undergone significant engineering development work with completion of a positive and robust Definitive Feasibility Study (DFS).

The project is underpinned by a Mineral Resource (JORC 2014) of 979mt @ 1.26% HM Grade with contained Heavy Mineral (HM) of 12.3Mt. The Ore Reserves estimate of 308Mt (January 2010) represents a high grade HM assemblage of 24% Zircon, 7% Rutile, 5% Leucoxene and 48% Ilmenite.

The Company will pursue strategic delivery partnership options to de-risk and commercialise the project over time as the market opportunities present.