- This project covers 1200 square km of a fossil coastline which has the potential to host a world class heavy mineral sand field (Figure 1).
- Drilling since 2000 has outlined a major heavy mineral sand deposit known as Amy Zone (Figure 2) which is over 35 kilometres long, up to 3 kilometres wide and between 10-50 metres thick.
- Approximately two thirds of Amy Zone has government environmental approval for mining and this area has JORC-compliant ore reserves of 308 million tonnes averaging 1.2% heavy minerals. Zircon comprises 23% of the heavy mineral suite, high titanium ilmenite (61% TiO2) 48%, rutile 7% and leucoxene 5%. These reserves are sufficient to support a mine life of 17.5 years at a mining rate of 2,200 tonnes of ore per hour or 17.5 million tonnes per year. The northern third of Amy Zone has not yet been approved for mining but contains a non-JORC potentially mineable resource of 106 million tonnes averaging 1.3% heavy minerals. Mining of this resource would sustain the operation for a further six years.
- Gunson completed a Definitive Feasibility Study at the end of 2009, the results of which were announced on 7th January 2010. This study revealed that Amy Zone can support a high volume, low cost, long life mining operation producing quality mineral products.
- Over the 23.5 year mine life modelled, total revenue is estimated at $A2.2 billion, with an operating cash surplus of $A879 million or $A37 million per annum.
- At the long term average exchange rate since 1983 of 72 US cents per $A1, the pre-tax ungeared NPV is $A163 million at an 8% real discount rate, with an IRR of 16.8%.
- Approximately 67% of the revenue from the proposed mine is from zircon, for which industry experts TZMI forecast a significant supply shortfall commencing in 2013.
- The Company is currently seeking to attract a minority partner to help fund the mine development, in exchange for an assured long term supply of zircon.
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Coburn Zircon Project Environmental Management Plans
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