Strandline’s strategy is to own and operate high quality, low cost, expandable Heavy Mineral Sands (HMS) mining assets that drive a differentiation in the market place.
The Company is executing a multi-tiered growth strategy based on the discovery, development and, in time, production of high unit value Titanium (Ti) and Zircon (Zr) products for global mineral sands market. Key strategic initiatives include:
- Near term commercialisation of the zircon-rich Fungoni HMS Project
- Rapidly explore and grow Tanga Hub Resources and define preferred project development option
- Define a pipeline of HMS projects along the Tanzanian coastline superior to peers
- Strategically position the large Coburn Zircon Project for execution or monetisation.
Mineral Sands Market
The zircon and titanium markets have favourable growth-demand trends over the long term, driven by urbanisation of emerging countries and a broad array of applications, including products used in everyday life. The deposits that formerly supplied a large portion of demand are progressively being exhausted.
Development of the Company’s most advance project, the Fungoni HMS Project near term is counter-cyclical and strategically timed to take advantage of the emerging zircon and titanium supply gap in the market as forecasted.
Tanzanian HMS Exploration and Development
Strandline has recognized that the Tanzanian coastline represents a large gap in HMS resources between the countries of Mozambique and Kenya where several large to very large mines and resources have been previously discovered and developed. The Company holds a dominant tenement package along the Tanzanian coastline, approximately 350km of potential strike, which it is committed to systematically explore, and ultimately discover and develop a pipeline of quality projects.
With a similar geological and geographic framework to Mozambique and Kenya, it stands to reason that Tanzania’s coastal zone should have similar economic HMS prospectivity. Primary and secondary sources of mineral sand (ilmenite, rutile, and zircon) in combination with large perennial river systems required to transport the mineral to the coast, and efficient high intensity coastal storm seasons suggest the discovery gap can be filled by systematic and methodical exploration.
Strandline has been exploring the Tanzanian coastline targeting scalable, high grade, high unit value mineral assemblages (Ilmenite, Rutile, Zircon) close to well developed infrastructure that have potential to be rapidly brought into production. This has been achieved through interrogation of our substantial historic HMS geochemical database spanning the entire Tanzanian coastline. This first pass information has been key in allowing the Company to focus its exploration activities in areas of known higher prospectivity.
The Company has completed a detailed airborne geophysical survey across most of the project areas that has provided valuable radiometric, magnetic and topographic data filters for exploration targeting. This information has been integrated with other geology and surface geochemistry data sets that has allowed the company to plan first pass discovery drilling programs that have been successful in defining new Mineral Resources and discovering extensions to known mineralisation.
As the Company continues to systematically explore its highly prospective ground holdings in Tanzania the strategy will be evolving to increase the surface geochemical knowledge of the tenure with broad spaced surface geochemistry targeting prominent geophysical anomalies. Anomalies yielded from these soils programs can be rapidly, confidently and more efficiently elevated to drill-ready status.
Strandline has assembled a motivated and highly skilled team of Tanzanian based geologists and field technicians and has demonstrated the ability to effectively engage with the community stakeholders and access ground for exploration whilst tapping into the local labour networks.
Targeted air core drilling is planned to continue through 2017-18 with the view to extend current resource inventory and discovery of new high grade ore bodies for potential development consideration.