Shares in Diatreme Resources soared higher today after leading mining services company China ENFI Engineering Corporation signed up to do the definitive feasibility study (DFS) for its Cyclone zircon project.
The ASX-listed mineral sands play (ASX: DRX) shot 1.6c, or 114%, higher to close at 3c in Thursday trade after signing Cooperation and Consulting Services agreements with ENFI.
These agreements replace the previous non-binding MoU announced in September last year.
Under the agreements, ENFI will assist in sourcing project investors, offtakes and project debt funding and complete costings and economics, engineering studies and implementation planning under the DFS.
“This is a historic day, not only for Diatreme but also for Australia’s mineral sands industry,” Diatreme’s chairman William Wang said.
“We are delighted to be working with a company of the size and expertise of ENFI as we advance our flagship project towards mining, for the benefit of all stakeholders.”
ENFI is a wholly owned subsidiary of Metallurgical Corporation of China, part of the China Minmetals Group, one of China’s largest state-owned enterprises (SOEs) involved in the mining services sector.
Headquartered in Beijing, China Minmetals has 1.6 trillion renminbi (A$314 billion) in total assets and ranked 120th in the Fortune Global 500.
The Cyclone deposit lies within the Wanna Lakes area of the northern Eucla Basin, 25 kilometres from Western Australia’s state border with South Australia.
The project’s JORC Mineral Resource (Measured and Indicated) has been estimated at 211 million tonnes at 2.3% heavy minerals (1% cut-off grade) containing 4.8 million tonnes heavy minerals.
This includes a Measured Resource of 156Mt at 2.4% heavy minerals and an Indicated Resource of 55Mt at 1.8% heavy minerals (both at 1% HM cut-off grade).