First Keysbrook Mineral Sands Shipment Marks Commencement of Cashflow
Perth, Dec 21, 2015 AEST (ABN Newswire) - MZI Resources Ltd (
ASX:MZI) is pleased to announce that it has completed its first shipment of zircon concentrate from the high margin Keysbrook Project, 70km south of Perth, approximately one month ahead of the original schedule. This signals the start of long term positive cashflow generation by the Keysbrook Project.
Highlights:
- First shipment of Keysbrook mineral sands products exported to China
- Initial shipment comprising approximately 1,000 tonnes of zircon concentrate
- Sold to Tricoastal/Wensheng under long term offtake agreement
- Sales milestone achieved approximately one month ahead of original schedule
- First leucoxene sales targeted for February 2016
The 1,008 tonne containerised cargo departed the Port of Fremantle aboard the CMA CGM Chopin at approximately 8.00am on Saturday 19 December, destined for the Chinese port of Xiamen. The cargo was sold under the Company's long-term offtake agreement with Tricoastal/Wensheng, China's largest zircon processor, which covers all zircon concentrate produced at Keysbrook.
The successful sale of its first zircon concentrate continues MZI's excellent record at Keysbrook, where commissioning commenced early and within budget in late October 2015.
MZI Managing Director Trevor Matthews said "It is extremely satisfying to complete our first sale from the Keysbrook Project to Tricoastal/Wensheng who we have a long standing relationship with. This shipment formally graduates MZI to the ranks of global mineral sands exporters. We are now completing all project commissioning and will quickly ramp up to full capacity, cementing MZI's standing as a high margin supplier of premium mineral sands products to the global market."
MZI is targeting first leucoxene sales in February 2016.
Over 85% of all planned leucoxene and zircon production from Keysbrook is contracted under long term offtake agreements with blue chip customers, with the Company currently in discussions regarding the remainder of uncontracted leucoxene.
All planned L70 production, totalling approximately 29,000 tonnes per annum, and two thirds of planned L88 production, totalling 25,000 tonnes per annum, are contracted to US pigment producer Chemours.
As announced previously, the Company has signed a Letter of Intent and Cooperation with leading Chinese chloride pigment producer Jinzhou Titanium Industry Co ("Jinzhou") to purchase a trial shipment of Keysbrook L88 as a precursor to discussions regarding a potential large scale offtake agreement for L88.
Keysbrook is designed to produce approximately 96,000 dry tonnes of leucoxene products and zircon concentrate annually.
About MZI Resources Ltd
MZI Resources Ltd (ASX:MZI) is a mineral sands company focused on the high value minerals of zircon, rutile and leucoxene based in Perth, Western Australia. Its flagship operating asset is the Keysbrook Mineral Sands Project, located 70km south of Perth. At the Keysbrook mine, mineral sands are mined and processed to produce heavy mineral concentrate (HMC) which is processed into final products under a toll treating arrangement with Doral Mineral Sands Pty Ltd at the Picton Mineral Separation Plant (MSP) near Bunbury.
The Keysbrook mine hosts a world-class zircon / leucoxene ore body with total Ore Reserves equivalent to over 15 years of production at design output rates, and total Mineral Resources equivalent to over 30 years of production. Production commenced in late 2015, making the Keysbrook Project Australia’s first – and the world’s largest - primary producer of high value leucoxene.
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