australia's identified mineral resources 2005 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005
In 2003, Austpac Resources NL signed a memorandum of agreement with CRL for supply of 70 000 t
of high-chrome ilmenite concentrate to a 30 000 tpa high-grade synthetic rutile (>97% TiO 2 ) plant
proposed by Austpac for the eastern seaboard of Australia. Austpac also signed a memorandum of
agreement with Iluka Resources Limited, whereby Iluka agreed to purchase all the synthetic rutile
produced from the proposed plant. Both contracts are subject to the successful completion of a
bankable feasibility study by Austpac. Austpac started an upgrade of its pilot plant at Kooragang
Island, Newcastle, to a fully integrated demonstration plant with a nominal capacity of 1 500 tpa of
high grade synthetic rutile. The scale-up factor from the demonstration plant to the 30 000 tpa
synthetic rutile plant will be less than 25:1. Detailed process data from the demonstration plant is to
be used to complete the final plant design and obtain capital and operating cost estimates for the
30 000 tpa plant.
During 2004, BeMax Resources NL completed the purchase of the mineral sands assets of Sojitz
Corporation (formerly known as Nissho Iwai Corporation) and Sons of Gwalia in Western Australia
and in the Murray Basin (NSW and Vic).
Heavy mineral resources/reserves controlled by BeMax Resources NL are located in old shorelines in
two geological/geographic provinces – the Murray Basin of Victoria, and New South Wales and the
South West region of Western Australia. In the Murray Basin, the heavy mineral sand reserves (JORC
category) controlled by BeMax amount to 187 Mt containing 5.38 Mt heavy minerals grading at about
46% ilmenite, 20% leucoxene, 12.% rutile and 10% zircon. During 2004, BeMax completed acquisition
of the minerals sands assets of Sojitz Corporation (formerly known as Nissho Iwai Corporation) and
Sons of Gwalia Limited.
BeMax commenced the development and construction phase of the Pooncarie Project in early 2005
with first heavy mineral sales scheduled in the first half of 2006. The project, located in the northern
part of the Murray Basin of New South Wales, consists of the Ginkgo and Snapper deposits and
contains in excess of 10 Mt of heavy minerals with a mine life of over 20 years. It will initially consist
of three main operations:
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the Ginkgo mine site near Pooncarie comprising a refurbished dredge and an upgraded wet
concentrator plant both relocated from Western Australia, and a heavy mineral concentrate
processing facility for magnetic separation of ilmenite, leucoxene and rutile/zircon fractions,
from where
the heavy mineral concentrates will be transported to Broken Hill, about 240 km north northwest
of Pooncarie, where a first stage mineral separation plant (MSP), a leucoxene plant and a wet
gravity plant (for upgrading rutile/zircon fraction) are being constructed, and
an existing MSP with upgraded rutile/zircon circuits near Bunbury in Western Australia, which will
process non magnetic material being railed and shipped from Broken Hill.
The heavy mineral reserves controlled by BeMax in the south west region of Western Australia
amount to 17 Mt with about 1.95 Mt heavy minerals grading at about 84% ilmenite, 2.6% leucoxene
and 9% zircon. Current mining operations comprise the dry mining operations at Tutunup and
Ludlow. The Ludlow mine was commissioned in late 2004 and commissioning of the concentrator
began early in December, with site operations on a seven-day basis starting towards the end of the
period. BeMax is pursuing permitting for mining in the Gwindinup area while decommissioning and
rehabilitation activities continued at the Jangardup site during the quarter and the rehabilitation of the
Yarloop and Sandalwood mine sites commenced.
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Australia Zircon NL’s Mindarie deposits, 148 km east northeast of Adelaide, contain one of the
world’s highest ratios of premium-grade zircon to titanium minerals. The company’s tenements
contain measured and measured and indicated resources estimated at 126.5 Mt at 3.2% heavy
minerals consisting of approximately 18.6% zircon, 7.2% leucoxene, 5.0% rutile and 62.5% ilmenite.
The mining plan is based on 61 Mt of ore averaging 4.1% heavy minerals corresponding to annual
production levels of 43 000 tonnes per annum (tpa) of zircon, 8 200 tpa rutile, 7 200 tpa leucoxene