Strandline Resources Limited (ASX: STA) has welcomed the successful processing of first in the Wet Concentration Plant (WCP) at its 100%-owned Coburn mineral sands project in Western Australia.
As part of the commissioning process, tuning of WCP sequences, equipment settings and instrument control loops is advancing, in parallel with completing construction punch list items and managing plant defects as they arise. Ore mining is underway using multiple in-pit dozer mining units.
Managing Director, Luke Graham, said while commissioning of the WCP continues, construction teams remain focused on finalising the downstream Mineral Separation Plant (MSP) and remaining support infrastructure.
Strandline expects to sell several shipments of Heavy Mineral Concentrate produced from the WCP while construction of the MSP is being completed.
“I would like to congratulate the Strandline team and our contracting partners for achieving this fantastic milestone of first ore,” Mr Graham said.
“The team has overcome some well-documented challenges in the mining and construction industry and has achieved this success with zero lost time or medical treatment injuries recorded to date.
“With ore commissioning and tuning of the WCP underway, we are now working to accumulate a stockpile of heavy mineral concentrate ahead of our first shipment.
“At the same time, the construction emphasis is on completion of the MSP and remaining project infrastructure.”
With Coburn construction nearing completion and operations ramping up, the Company continues to focus on managing the various risk factors associated with development of the project. This includes HSE risks, potential impacts of COVID-19, inclement weather, contractor performance, commissioning and contractual claims and disputes.
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 of HMC planned for the December quarter of 2022.
The Coburn project is set to capitalise on its robust margins, the buoyant 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 2012 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:
• Pre-tax NPV of A$705m (AUD: USD 0.70, 8% DCF discount rate)
• High margin revenue-to-operating cost (C1) ratio of 2.4
• Projected revenue for the initial 22.5 years of Ore Reserves of A$4.4b
• Average annual EBITDA of A$104m and +50% EBITDA margin (excluding ramp-up phase)
• Fully funded to production and cash flow by a combination of 15-year A$150m NAIF1 loan alongside a five-year US$60m Bond Issue, and cash reserves
• Binding offtakes secured for 100% of Coburn’s initial production with a diverse group of top-tier customers.
For further information please visit: https://www.strandline.com.au
