- Strandline Resources (STA) trades green after reaffirming that first production from its Coburn mineral sands project is on track for late-2022
- The company says it has now been awarded all major construction contracts for the project, representing 90 per cent of its construction scope in terms of value
- Strandline’s processing plant EPC contractor is mobilising on site and the first batch of mechanical equipment and materials is slated for delivery next month
- Strandline made a final investment decision over the Coburn project back in May, highlighting a pre-tax net present value of $705 million for the project
- Shares in Strandline Resources are up 2.7 per cent and trading at 19 cents each at 1:54 pm AEST
Strandline Resources (STA) is trading green this afternoon after reaffirming that first production from its Coburn mineral sands project is on track for late-2022.
The junior miner told investors this morning it has now been awarded all major construction contracts for the project. The contracts represent 90 per cent of the construction scope for the Coburn project in terms of value.
Moreover, Strandline said with widespread bulk earthworks construction advancing “at pace”, the company is now getting ready to kick off above-ground infrastructure.
Strandline’s processing plant engineering, procurement, and construction (EPC) contractor is mobilising on-site and the first batch of mechanical equipment and materials is slated for delivery next month.
Meanwhile, the company is busy installing water bores at the Coburn project, with environmental and heritage monitoring activities also underway.
All this means Strandline is still on track to produce its first heavy mineral concentrate (HMC) product from the Coburn project’s wet contraction plant during the December quarter of 2022.
Managing Director Luke Graham said the company has achieved all of its key targets at the project so far.
“The major construction contracts are now all issued, the site activity is ramping up quickly, and each day we further de-risk the development phase and move closer to production and cashflow,” Mr Graham said.
“One hundred per cent of our forecast production is covered by offtake agreements and importantly, these contracts enable us to sell our higher value minerals of zircon, rutile and monazite at prevailing market price.
“This means the company is set to take full advantage of the increasingly strong markets for our products with demand very buoyant and supply facing challenges in many parts of the world.”
Some of the latest construction contracts locked in by Strandline will see the company build a permanent accommodation village on site that will house up to 270 people.
Strandline made a final investment decision over the Coburn project back in May this year, highlighting a pre-tax net present value of $705 million and $4.4 billion in projected revenue over a 22.5-year mine life.
The project lies in the Gascoyne region of Western Australia.
Shares in Strandline Resources were up 2.7 per cent and trading at 19 cents each at 1:54 pm AEST. The company has a $207 million market cap.