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The junior estimates a single dredge, a floating wet concentrator and a centrally-located mineral separation plant can make a go of an initial project focused on resources of 93 million tonnes at 5.24% total heavy minerals within a continuous 10km-long and up to 2km-wide zone.
Given total resources of 265Mt at 4.38% THM the company sees potential for up to three dredges ploughing away over the wider deposit, which is exposed at surface, has no overburden and minimal slimes.
The company is heading into more involved feasibility studies and will examine a larger processing capacity to exploit economies of scale.
Metallurgical test work on composite drill hole samples from the possible initial production zone indicates ilmenite recoveries of 90.3% are possible.
The junior expects its ilmenite product should be high quality and would likely find ready markets globally, and could fetch A$305/t. There could be minor credits for leucoxene, rutile, zircon, and garnet.
Mannar Island's mineralisation tends to be continuous from 2-3m above the water table down to at least 10m below the water table. Drilling to 12m recorded most holes ending in mineralisation, and the resources are open at depth and partially laterally.
While the company hasn't put any production numbers since landing on the dredging option, it previously discussed a 100,000tpa option.
The junior's share price surged from A4.7c on June 1 to a 52-week high of 8.3c on June 11, and was last traded at 7.8c, valuing it at $61 million.
