Strandline Resources (ASX:STA) a step closer to advancing Coburn Project, Picks Power Plant Contractor  

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Strandline Resources (ASX:STA) a step closer to advancing Coburn Project, Picks Power Plant Contractor  

 Strandline Resources (ASX:STA) a step closer to advancing Coburn Project, Picks Power Plant Contractor  

Summary

  • Strandline Resources has selected Contract Power to construct, own and operate a 32MW hybrid gas and renewable energy-based power plant to support activities at the Coburn Project.
  • The low-cost and low-emission hybrid power plant will help Strandline to save on energy supply costs relative to the Definitive Feasibility Study (DFS).
  • Coburn Project is expected to help Strandline to capture ~5% of the global zircon market.

ASX-listed heavy mineral sands developer Strandline Resources Limited (ASX:STA) has appointed Contract Power as its preferred contractor to construct, own and operate a power generation facility to support mining activities at the Coburn Project.

The proposed power plant would be a hybrid gas and renewable energy-based facility with an installed capacity of 32MW. The plant would run on integrated LNG and solar energy with installed battery storage technology.

The low-cost and low-emission hybrid power plant will help Strandline to save on energy supply costs relative to the Definitive Feasibility Study (DFS), released by the company in June 2020.

The Coburn project has a vast JORC-compliant ore reserve of 523 million tonnes with 1.11% total heavy minerals (THM), comprising heavy minerals assemblage. The initial mine life is of 22.5 years with EBITDA of A$ 2.3 billion. The scoping study has indicated mine life extension up to 38 years with EBITDA of A$ 4.5 billion.

Strandline has planned to produce critical minerals including zircon concentrate-54ktpa, rutile-24ktpa, Ilmenite-110ktpa and premium zircon up to 34ktpa from the Coburn project.

The power station at the Coburn site will be located near the mineral separation plant (MSP). The power station is designed to provide maximum demand capacity of 16 MW, and the average consumed power of ~10 MW.

LNG as a fuel will be supplied under an industry-standard long-term LNG supply agreement and will be supplied in truck-based tankers to the on-site storage and re-vapourisation facility.

The power generation facility will use LNG as feed to a set of efficient engine generators on an N+1 basis. The installed solar power generation will be used for providing major stable loads. Power will be generated at a load of 11kV with step up to 22kV for power transmission to the project loads across the mine site.

Strandline Resources recently raised A$18.5 million through equity raising to fast-track development activities on the project. The company is in the process to finalise and secure the balance of project funding.

The company operates two sand projects in Tanzania- Fungoni and Tajiri. The Fungoni project produces premium quality zircon and titanium products with a life of mine EBITDA of US$ 115 million. The Tajiri project is a low-cost titanium project with a JORC compliant resource of 268 million tonnes with 3.3% THM.  

On 04 November 2020 (AEST 02:32 PM), the stock of the company traded at A$0.190 with a market cap of A$99.35 million.

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