Ann: Argonaut underwrites $3m SPP , page-9

This report came out today 18 July 2013. Its good reading and augers well for MZI!!


"Gunson Resources has been working on the Coburn mineral sands project for over 10 years.


But since completion of a feasibility study in late 2009, it has struggled to secure financing for the project.

This struggle may be over.

Last month, the company announced that (subject to due diligence) a “major Asian industrial group” is to take “a large minority share” in the project, allowing construction to commence by mid-2012.

Mineral sands consist of titanium-dioxide minerals, used mainly as a pigment for paint, and zircon, used particularly in ceramics (e.g. tiles, sanitary ware).

Prices for these minerals, particularly zircon, are strong. The industry is confident that this will continue.

This was spelt out in a presentation in December 2011 by Mr David Robb, the managing director of Australia’s largest producer, Iluka Resources.

He forecast that annual zircon demand in China will grow by 9% between now and 2020.

He noted that, in China and in other fast-growing developing countries (e.g. Brazil, India, Indonesia), the intensity of zircon use is still low.

Similarly, the intensity of pigment use is still low in developing countries: for example, in terms of kilograms per person, the figure is less than 1 for China, around 3 for Europe and over 5 for the United States.

Iluka Resources is sharply increasing exploration expenditure, to a projected $35 million in 2012. It share price has doubled in the past 12 months.

This is good news for all mineral-sands companies."