Strandline Resources Limited (ASX: STA) has confirmed that construction of its 100%-owned Coburn mineral sands project in Western Australia continues to progress in line with its timetable and capital budget, ensuring it remains on track for first production of HMC later this year.
Detailed engineering design is largely complete across the project, procurement of materials and equipment are advancing strongly, and all major construction contractors have now mobilised to site, with the latest being the power station and overhead powerline contractors.
The overall project progress has reached 50% complete, remaining on-track to achieve first production of heavy HMC in the December quarter, 2022.
The company is firmly focussed on managing the various risk factors associated with development, including proactively managing HSE risks, contractor performance and the potential impacts of COVID-19.
Strandline Managing Director Luke Graham said we have continued to achieve positive outcomes on the project, with key aspects of design, procurement and construction proceeding to plan.
Preparations for commissioning and operations readiness are also continuing to ramp up,” Mr Graham said.
“Our success to date means we are well placed to capitalise on what is a very strong market for mineral sands, with buoyant global demand and supply limited by the lack of investment in new projects in recent years.
“The strength of the market is reflected in the fact that spot prices for zircon and titanium feedstocks are at least 25 per cent above those used in the Coburn DFS.”
In May-2021 Strandline made a Final Investment Decision (FID) to proceed with the full development of its world-scale Coburn mineral sands project, located in the Gascoyne region of Western Australia. The construction schedule has first production planned for the December quarter of 2022.
The Coburn project is set to capitalise on its robust margins, the strengthening minerals sands commodity pricing outlook, its tier-1 location, and the growing demand for critical minerals.
The Coburn mine life currently sees mining continue until 2045 (based on mining the initial 22.5-year JORC compliant Ore Reserves), with the potential to extend to 2060 (total 37.5 years mine life) by converting Mineral Resources which exist immediately north and along strike of existing Ore Reserves.
The FID was supported by the updated Definitive Feasibility Study (DFS), released in mid-2020, which confirmed robust economics for the project over an initial 22.5-year life, including: