First Leucoxene Sales at Keysbrook
Perth, Mar 11, 2016 AEST (ABN Newswire) - MZI Resources Ltd (
ASX:MZI) is pleased to announce that the first shipment of its L70 leucoxene product has departed the Port of Bunbury, bound for delivery to offtake customer Chemours in the United States where it will be used to manufacture pigment used in paints, plastics and other applications.
This marks the commencement of cash flow from Keysbrook's high value leucoxene products, and is a significant milestone for MZI and the Keysbrook Project.
Leucoxene is expected to account for approximately 70% of Keysbrook's annual sales, with this shipment totalling approximately 6,825 tonnes of L70.
MZI Managing Director Trevor Matthews said "This shipment represents Keysbrook's arrival as the single biggest producer of high value leucoxene in the world, as we continue to ramp up cash flow generation and build value for Shareholders through high margin product sales."
As indicated previously, approximately 73% of all planned 2016 production is currently committed under five year offtake agreements, comprising 100% of zircon concentrate and approximately 65% of all leucoxene products1. MZI continues to advance discussions with other prospective customers for Keysbrook leucoxene and expects to sell all available production in 2016.
The Company has also shipped over 3,800 tonnes of zircon concentrate to China's largest mineral sands processor, Tricoastal/Wensheng, under the five-year offtake agreement for 100% of Keysbrook's zircon concentrate production.
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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