WORLD TITANIUM RESOURCES LTD AMED have made a cash offer of 5 cents per ordinary share in World Titanium Resources.
An alternate mine plan for Ranobe mining leases was completed by independent consultants, to treat 12 Million tonnes per annum (Mtpa) for 17 year mine‐life.
A 39% increase in the Mineral Resource estmate to 244.7 million tonnes garding 8.02% Heavy Mineral (HM) based on the new mine plan.
An independent Scoping Study demonstrated that simplifying the processing stream to sell only zircon/rutile concentrates in containers and stockpile ilmenite will require a capital cost of US$48m plus VAT (up to 20%), working capital and other owners costs.
Test work is underway to process 5 tonnes of Ranobe mineralised sand grading some 8% HM to assess the possibility of using the new MG12 spirals and secure a saleable zircon/rutile concentrate for testing by potential customers.
Cash balance at 31 December 2015: A$2.6 million.
Unsolicited takeover cash offer from AMEDOn 18 January 2016, World Titanium Resources Limited (" World Titanium") announced an unsolicited takeover offer from African Minerals Exploration and Development Fund 11 ("AMED"). Under the on‐market offer, AMED have made an unconditional cash offer of 5 cents per ordinary share in World Titanium commencing on 2 February 2016.
Given the offer is not currently open for acceptance, World Titanium Directors advise that there is no need for shareholders to act at this stage. Shareholders will be updated in due course.
AMED also announced that the fund's shareholding in World Titanium is now 20.45%.
RANOBE MINE PROJECT BackgroundOn 27th April 2012, World Titanium Resources Limited (WTR) received two Mining Licences abutting each other some 55 kilometres north of Toliara on the south west coast of Madagascar. Each of the Mining Licences has a term of 40 years and is renewable.
World Titanium Resources Limited ABN 21 120 723 426
Head Office: Level 17, 500 Collins Street, Melbourne, Victoria, 3000, Australia Telephone: +61 (0)3 9614 0600 Fax: +61 (0)3 9614 0550
www.worldtitaniumresources.com
On 23 June 2015, the Environmental Management Plan (EMP) for the Ranobe Project as approved by ONE was signed by your company and we have agreed to commit to the conditions of the EMP.
A 39% increase in the Mineral Resource estimate for Ranobe Mining LicencesOn 18 January 2016, your Company announced Measured and Indicated Resources in the Mining Licences of 244.7 mt grading at 8.02% HM, an increase of 39% over the 2012 maiden resource estimate of 176 mt at 8.13% HM. The upgrading of the resource classification is included within a revised global Mineral Resource estimate of 884.2 mt at the measured, indicated and inferred confidence levels grading at 6.19% HM.
The 2015 updated mineral resource estimates provided below replace the previous estimates prepared in accordance with the 2004 edition of the JORC Code, and first disclosed by the Company in 2012 (reference Australian Stock Exchange (ASX) releases of 9 August and 28 August 2012). This updated estimate includes:
Additional drilling of 363 air‐core holes into the Ranobe deposit undertaken in late 2012 for a total of 8088.2 metres.
Inclusion of a digitized 3% HM cut‐off.
Reporting in accordance with the 2012 edition of the JORC Code.
Alternate Mine PlanGiven the scale of the capital costs from Independent Consultant, EPMS, of over US$175m plus working capital (reported September quarterly 2015) and the difficulty your company envisaged in securing offtake ilmenite contracts in the current over‐supplied world market, we are shaping a new mine plan. With the assistance of independent consultant, Geovia Services of South Africa, the alternate mine plan is based on:
Similar to 2012 mine plan and excavate to an average depth of some 17.5 metres below the natural surface;
To increase sand processing from 8 to 12 mtpa, and
Simplify wet processing and produce a simpler metallurgical circuit. The scoping study detailed below is based on the new mine plan.
A high level Scoping Study completed by independent consultant, ADP Marine and Modular (ADP) of Cape Town, South Africa has demonstrated that simplifying the processing stream to sell only zircon/rutile concentrates in container and stockpile ilmenite will require a capital cost of US$48m plus VAT (up to 20%), working capital and other owners costs.
Given the difficulty we envisaged to secure consumer ilmenite contracts at adequate pricing to support the projected development plan, your company is examined a number of different alternative processing methods. We believe a simpler processing plant will enable the company to commence production on a smaller scale focusing on higher margin products, which we expect will reduce upfront capital costs. On this basis, your company contracted independent consultants, ADP to provide a Scoping Study for the Ranobe project operating at a 50% increase in the mining rate from 8 to 12 million tonnes per year of mineralised sand when compared with the TZMI Definitive Engineering Study announced on 28 August 2012. ADP Marine and Modula (ADP) in Cape Town, South Africa, is a leading supplier of modular processing plants and projects in diamonds, minerals sands, coal and gold mining industries.
ADP has an agreement with Mineral Technologies on the Gold Coast in Queensland, Australia to combine their skills in such areas as spiral technology, electrical processing and other similar gravity separation methods.
The Ranobe Scoping Study considered:
A dry mining operation to treat 12 million tonnes per year of mineralized sand around 8% HM per year.
Average estimated output of 66,000 tonnes per year of zircon/rutile concentrate over the first 17 year alternate mine plan.
Concentrate shipped using containers from the existing Toliara port.
Ilmenite averaging some 670,000 tonnes per year will be stockpiled adjacent to the Wet Processing Plant.
Modular equipment build using ADP's capabilities and Mineral Technologies experience in spiral design.
Phase TWO capital in Year 3 comprises of an additional US$6m for the installation of a conveyor transport system for the movement of run‐of‐mine material to the Wet Processing Plant and tailings disposal.
A breakdown of the US$48m capital cost estimate is:
Spiral plant (using new MG12) US$13.2m
Steelwork,mechanical equipment US$17.6m
Engineering,Procure,Construct,Manage (EPCM) US$3.7m
Local transport/shipping costs from South Africa US$5.7m
Earthworks, security, site management US$3.6m
Power generators US$4.2m
Total US$48m
Preliminary work was completed in the December quarter 2015 by Mineral Technologies (MT) near Brisbane, Queensland on two‐stage Wet High Intensity Magnetic Separation (WHIMS) to clearly define and optimise the maximum recovery of magnetic ilmenite versus the more non‐magnetic zircon/rutile concentrate product.
We have since approved additional test work to process 5 tonnes of Ranobe run‐of‐mine mineralised sand with about 8% HM. The sample arrived on 8 December 2015 in Brisbane,Australia and testing started on 4 January 2016. As part of this program, we intend to test the suitability of using the newly MT designed Spiral 12 when compared with the Spiral 6.3 (both designed and manufactured by MT). I have requested MT to produce a final Heavy Mineral Concentrate (HMC) without the trash via the WHIMS and clean‐up with spirals/tables. A portion of the HMC will be sent to our potential customer base for assessment. We anticipate a HMC sample during March 2016.
LGIM as it is known in French is Madagascar's Large Mining Investment Act. In late September 2015, WTR was invited to commence the LGIM process which defines the framework for developing and operating large‐ scale mining projects in Madagascar and provides for legal stability and financial incentives, including for example the establishment of off‐shore bank accounts.
The LGIM was developed with the support and assistance of the World Bank and endorsed by the Government of Madagascar in 2002.
The Investment (capital) which is above the lower threshold of US$25m is eligible for the special regime established by this Law, valid on July 30, 1999, the passing date of the Mining Code. In Madagascar to carry out a Project from an approved Investment Plan in accordance with the provisions of this Law, the ratio between loan funds and equity must not exceed 75:25 %.
We are in the midst of compiling documents for the LGIM process.
CORPORATE Cash balance at 31 December 2015 was A$2.6m and A$0.7 expected to be spent in next quarter, ending 31 March 2016Cash used during the quarter amounted to A$0.6m, representing mainly payments for metallurgical test work and administration costs. The cash balance as at 31st December 2015 stood at A$2.6m. Forecast expenditure for the next quarter is to the tune of A$0.7m. In addition to administration costs, there will be ongoing expenses for studies on the Mineral Technologies test work and the payment for exploration and mining licenses for the Company's deposits in Madagascar.
Tenement StatusNo Tenement changes were made during this quarter. Appendix 1 details current tenement holdings. No tenements are subject to farm in or farm out agreements.
All enquiries to be directed to:
support@worldtitaniumresources.com or Jeff Williams at jwilliams@worldtitaniumresources.com
World Titanium Resources Limited (ASX: WTR) is an Australian based mining company in the business of developing and exploiting Heavy Mineral Sand deposits in the Republic of Madagascar. The Company owns a 100% of the Toliara Sands Project located along the southwest coast of Madagascar that comprises four Heavy Mineral Sands properties including its flagship Ranobe property.
The Ranobe Property is at an advance state of development with environmental permitting in place. It is anticipated that a Definitive Feasibility Study incorporating an alternate mine plan to that announced in August 2012 (28th August 2012; Ranobe Engineering Results) with a name plate capacity of 12,000,000 tonnes per annum will be undertaken shortly.
As background the Company received the two Mining Licenses for the Ranobe Project on 27 April 2012. Each of the License's has a term of 40 years and is renewable.
The updated mineral resource estimate, released on 18 January 2016, includes all drilling data reported in the 2012 independent maiden resource estimate undertaken by McDonald Speijers and Associates (2012; see ASX release dated 28 August 2012), with the addition of subsequent 2012 drilling data. The new resource estimate includes a digitized 3% Heavy Mineral (HM) cut‐off, and the recognition of a western boundary formed by the on‐lap of a younger dune formation. Whilst a westward extension to the deposit at or greater than 3% HM in the overlying younger dunes and the underlying Upper Sand Unit is indicated by the drilling data, no mineralogical data for the younger dune system is available at present, and thus the Company is not currently treating this area as a resource, and has excluded it from the current resource estimate.
World Titanium Resources Limited issued this content on 2016-01-21 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-22 00:29:15 UTC
Original Document: http://www.worldtitaniumresources.com/files/160121-Quarterly-Activities-and-Cashflow-Report1.pdf
