MRG Metals involves TZ Minerals International for HMS market study

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MRG Metals involves TZ Minerals International for HMS market study

MRG Metals
Image source: Investor Presentation, Oct 2021

Highlights

  • MRG Metals Limited (ASX:MRQ) has involved world leading independent consulting group TZ Minerals International Pty Ltd (TZMI) to undertake a market study to understand the economic potential of its Heavy Mineral Sands (HMS) portfolio.
  • TZMI specialises in all aspects of the mineral sands, titanium dioxide and coatings industries.
  • Under the terms of the study, TZMI has been engaged to carry out a work program in two phases.

MRG Metals Limited (ASX:MRQ) has taken a significant step to better understand the full economic potential its Mozambique assets. The HMS explorer has engaged TZ Minerals International Pty Ltd (TZMI) to undertake a market study of likely concentrate products from a potential future HMS mining operation at MRG’s Corridor Sands projects.

Agreement

Introducing TZ Minerals International

TZMI is a world leading independent consulting group, specialising in all aspects of the mineral sands, titanium dioxide and coatings industries. With a global presence, it has been operational since 1994. TZMI’s strength is a result of its extensive practical experience across all elements of the titanium, zirconium, TiO2 pigment and related industries.

For MRG, TZMI will also consider Titanomagnetite, a product which until now has been attributed negligible potential economic value.

MRG’s decision to engage TZMI

First and foremost, the Company is keen on understanding the economic potential of the different product streams of its Mozambique HMS portfolio. Herein, MRG Metals has released an updated Mineral Resource Estimate (MRE) for the Koko Massava deposit which demonstrates the potential to become a >50 year mine. Notably, Koko Massava is known to be rich in ilmenite, rutile, zircon and titanomagnetite.

Terms of the Study

TZMI has been engaged to conduct a work program in two phases for MRG Metals-

Phase 1-

In this phase, TZMI will concentrate on completing a detailed market study incorporating its latest supply/demand projections on global sulfate ilmenite, rutile, and zircon markets. The study involves-

  • Introduction to the mineral sands value chain and industry structure.
  • Outline of current major producers and expected new projects that are under investigation.
  • Review of supply of sulfate ilmenite, rutile, and zircon, defining the key producers/regions and a supply outlook to 2030.
  • Demand analysis segmented by end-use markets and key customers by individual feedstock type and zircon. Forecasts will be included.
  • Review of sulfate ilmenite requirement for the beneficiation sector. Indicative outlook will be included.
  • Price forecasts of individual feedstock products - sulfate ilmenite, rutile as well as zircon through to 2025 and provision of long-term inducement prices for each of the aforementioned products for the period after 2025.

Phase 2-

  • Product quality evaluation of planned sulfate ilmenite and non-magnetic concentrate from the MRG’s HMS project based on indicative quality obtained from bulk metallurgical testwork undertaken at IHC Robbins.
  • Primary research on China’s titanomagnetite market.
  • Report on market placement, key target markets and attainable pricing of the planned products (sulfate ilmenite, titanomagnetite, non-magnetic concentrate) from the Corridor Sands projects will be provided, along with a co-product credit for the monazite/xenotime contained in the non-magnetic concentrate.
  • Overview of the global concentrate market, with focus on cross-border volumes and pricing, introduction to the concentrate pricing methodology.

On 27 January 2022, MRQ traded at A$0.010 on the ASX.

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