Strandline Resources, which in April signed
a binding heads of agreement to
acquire a subsidiary of Tanzanian-focused mineral sands
explorer Jacana Minerals, has said it will
prioritise exploration of Jacana’s project driven
by the requirement to define the resource as soon as possible
and located the highest grade mineralisation.
The purchase of the Jacana, should it go ahead, represents
the missing gaps for Strandline in Tanzania, the
company’s managing director, Richard Hill, said in
ASX-listed Strandline already owns an exploration project in
Tanzania, at which it confirmed high quality test results for
zircon and total heavy minerals (THM) following drilling at its
Madimba and Madimba East prospects in March.
According to Hill, the projects acquired from Jacana
demonstrate similar properties, adding that "in the current
climate of cyclically low mineral sands prices, assemblages
containing high percentages of zircon and rutile are crucial as
their current pricing in generally a factor of 10 higher than
The shareholder meeting to approve the acquisition will be
held on 24 June, with the settlement expected to take place on
South Australian producer Murray Zircon Pty
Ltd has signed an MoU with Image Resources
Ltd to assess a transaction whereby Murray Zircon
would receive up to 47% of Image shares in exchange for the
provision of its ore processing equipment, infrastructure
operational expertise and senior management personnel.
The agreement was made to enable Image to rapidly advance
the development of its flagship mineral sands deposits in the
North Perth Basin, Western Australia (WA).
Image plans to initially produce high-grade mineral sands
from its 100%-owned Boonanarring and Atlas projects, for which
a feasibility study was completed in 2013.
The deposits have a probable ore reserve of 24m tonnes
grading 8.2% heavy minerals (HM) at 2.5% HM cut-off containing
15% zircon. Capex for the mine, expected to have a 10-year
life, are estimated at Australian dollar (A$) 64m, with a
construction time of 18 months.
South African mineral sands producer Mineral
Commodities Ltd (MRC) has issued Wogen Pacific
Ltd with a notice of suspension under the
companies’ pre-finance and marketing agreement
dated 31 July 2013, informing Wogen of an MRC material adverse
The notice constitutes an MRC termination event, which gives
it the right to suspend obligations to sell mineral sands
products to Wogen.
The notice was given owing to disputed moisture and quality
claims, toll treatment standards, pricing of final product and
payment delays, which have had an adverse effect on sales.
Under the terms of the agreement, Wogen managed the conversion
and sale to its end user customers of non-magnetic heavy
mineral concentrate produced by MRC.
"The suspension does not in any way affect the
company’s ability to sell garnet pursuant to the
separate offtake agreement or ilmenite, however it cannot sell
any non-magnetic heavy mineral concentrate directly to any
end-use customers of Wogen," MRC outlined.