Tanzanian HMS Projects

TANZANIAN HMS PROJECTS

  • Strategically positioned within one of the world’s major zircon and titanium producing corridors (see Figure 1)
  • Major mineral sands producers now active in the region – Consolidation underway
  • Neighbouring HMS operations demonstrate
    • Simple, low risk development pathways
    • Infrastructure solutions
    • Established markets
  • Tanzania – Mining friendly, politically stable jurisdiction with rapidly developing coastal infrastructure (ports, power)


Figure 1: Map of Africa showing major mineral sands deposit locations

OVERVIEW

With the 2015 acquisition of Jacana Resources, Strandline now controls the bulk of the last underexplored pieces of the SE African minerals sands producing corridor (Tanzania)

  • Neighbours in production include Rio Tinto, Kenmare Resources, Base Resources
  • Strandline’s high calibre team have Iluka / Rio Tinto / Syrah mineral sands experience
  • Targeting pipeline of high value mineral sands Resources near term
  • Bottom of price cycle opportunity with Majors widening search efforts (focus on Africa)
  • Asia’s transformation to a consumer-driven economy will have positive implications for mineral sands sector

THE OPPORTUNITY

Strandline has recognised that there is 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 management of Strandline hold the view that the source of the HMS – ilmenite, rutile and zircon and the extensive river systems required to transport and concentrate the HMS along the coast also exist in Tanzania. Reinforcing this view is Strandline’s exclusive access to a substantial historic HMS geochemical database that has already shown areas of HMS mineralisation that require immediate investigation. Strandline has used this data to acquire and apply for its mineral sands licences (see Figure 2).


Figure 2: Mineral sands exploration licenses along the Tanzanian coast

Strandline controls a highly prospective exploration tenure position along the coast of Tanzania, within a major world class mineral sands corridor (see Figure 2). These projects are surrounded by some of the world’s major world-class mineral sands mines, located in neighbouring Kenya, Mozambique, Madagascar and South Africa (see Figure 1).

  • A series of 100% held projects spread along 350km of the Tanzanian coastline
  • Exclusive access to only detailed country-wide mineral sands database & specialist team
  • Focus on High Value Mineral Assemblages – proven through drilling of key projects to date
  • Rapid, low cost Resources delineation – two high grade Resources already delineated at Fungoni and Tajiri prospects
  • Major infrastructure advantage with Key Projects close to infrastructure hubs of port and power
  • Envious position for majors wanting entry into the last underexplored piece of southeast African coastline

Prospective areas held by Strandline include five projects where tenure contiguously covers +35-50km of coastline exposure, cumulatively ~ 200km strike, and all targets are within 20km of the coast, close to ports and other key infrastructure. Given the extent and location of these target areas and the strong historical evidence, Strandline is targeting scalable, high grade, high quality, high value mineral assemblages (Ilmenite, Rutile, Zircon) close to infrastructure that have potential to be rapidly brought into production.

NORTHERN EXPLORATION REGION:

TANGA NORTH PROJECT AREA – large tonnage targets

TANGA NORTH PROSPECT- significant rutile within VHM

  • Operating Kwale Mine and port 30km to the north in Kenya
  • Interpreted dune system with potentially significant volumes of sand expected to be many tens of metres thick
  • 14km long with +1% THM anomaly outlined by auger drilling (see Figure 3)
  • Valuable rutile-rich mineral assemblage with 38% ilmenite, 17% rutile and 6% zircon


Figure 3: Tanga Projects centered around Tanga Shipping Port

KITAMBULA PROSPECT – high unit value target

  • Average VHM assemblage of 85%, with up to 76% ilmenite, 12.1% rutile and 4.66% zircon
  • Ilmenite TiO2 content – 53%

TANGA SOUTH PROJECT AREA

TAJIRI PROSPECT – delineated mineral resources

  • Tajiri mineralised corridor up to 25km long with multiple mineralised zones ranging from 1600m to 4000m along strike and 200m to 800m wide (see Figure 4)
  • First phase mineral resource drilling has defined and an Indicated Mineral Resource Estimate of 59Mt @ 3.7% THM, including a high grade portion of 19Mt @ 5.1% THM
  • VHM of 88% comprising up to 76% ilmenite, 12% rutile and 6% zircon
  • Zones of high grade mineralisation up to 15m thick


Figure 4: Tajiri Mineralised Corridor within the Tanga South Project area

VUMBI PROSPECT – a newly discovered high grade zone

  • Mineralised zone at least 4000m along strike and up to 400m wide (see Figure 5)
  • First phase exploration drillholes end in mineralisation at 15m
  • High grade core with aircore drillhole results of 15m @ 4.2% THM, and 18m @ 3.6% THM


Figure 5: Drillhole location map showing the newly discovered high grade Vumbi zone within the Tanga South project

CENTRAL EXPLORATION REGION:

FUNGONI PROJECT AREA

  • High Grade Mineral Resource: Measured and Indicated – 16Mt @ 3.1% THM
  • Mineral resource currently has 480,000t contained heavy mineral
  • Very high value assemblage – 22% zircon, 4% rutile and 44% ilmenite. Ilmenite contains 62% TiO2
  • Very high grade zircon-rich core within the Mineral Resource with strong geological and grade continuity along and across strike
  • Close to infrastructure including major port city of Dar es Salaam (see Figure 6)
  • Independent Scoping Study undertaken by TZMI in 2015 demonstrated potential for a simple, low CAPEX mineral sands operation to generate early cash flow
  • Definitive Feasibility Study initiated on the Fungoni project in late 2016
  • Significant potential for extension of the main Fungoni Mineral Resource to the immediate northwest where a linear Thorium radiometric anomaly is coincident with a 11.24% THM reconnaissance sample with similar high unit value mineral assemblage to the main ore body (see Figure 7)
  • Potential for greenfield exploration discoveries on contiguous regional exploration tenure to the east and southeast of the main Fungoni deposit


Figure 6: Fungoni deposit location map


Figure 7: Map of the Fungoni mineral resource and location of the potential northwest extension

MAFIA ISLAND PROSPECT

  • Very high grade strands occur on the modern beaches suggesting potential for prospectivity inland
  • THM grades up to 81% in the modern strands
  • Excellent indications of potential mineral assemblage:
    • Zircon content in VHM up to 18% in reconnaissance samples taken drainage concentrates
    • Significant proportion of high TiO2 ilmenite species in VHM
    • Low concentrations of contaminant in ilmenite
  • HMS strandlines mapped along the modern beach for at least 2km at the northern target (see Figure 8)


Figure 8: Map of Mafia Island showing locations of heavy mineral strand accumulations (black sand) on the modern beaches

SOUTHERN EXPLORATION REGION:

MTWARA PROJECT AREA – largely unexplored area

MADIMBA PROSPECT – opportunity for multiple high grade mineralised zones

  • First phase aircore drilling defined continuous mineralised zone at least 2000m along strike and 250m wide with thickness of 9m (see Figure 9)
  • High grade intersections from drilling include0m @ 4.1% THM and 7.5m @ 5.4% THM (see Figure 10)
  • Scale potential
    • Mineralisation begins from surface and is open at depth
    • Potential for series of deposits over >12km strike defined by radiometric geophysical data
  • High unit value mineral assemblage
    • VHM in the total heavy mineral concentrate up to 98% (ave 81%)
      • Zircon + Rutile in VHM is up to 16.4% (ave 12%)
      • Ilmenite in VHM averages 67.4%
      • Ilmenite grainsize averages >100µm
      • Low concentrations of contaminants in ilmenite
    • Infrastructure – Close to Mtwara Port & Power