Ann: Fungoni Mining Licence Approved, page-21

https://www.livewiremarkets.com/wir...nvestors-some-of-the-best-days-of-their-lives

BARRY FITZGERALD

STRANDLINE (STA)

Strandline was a 6c stock last November and has since motored to 17c as it sets about becoming a mineral sands producer in Tanzania and Australia.

News flow in coming months is expected to be strong on both fronts.

In Tanzania, Strandline is waiting on a mining licence for the smallish Fungoni project. Its grant has been delayed by Tanzania’s overhaul of its mining laws but there was the recent news that it was now in the works.

A definitive feasibility study into Fungoni’s development pointed to a robust project with low capital expenditure of $US30m. A 12-month construction period was forecast, and capex payback was put at 18 months.

It is seen as very much a “starter” project as Strandline is working up a number of larger-scale opportunities along its dominant tenement position in the north of the country to its own account, and in a joint venture with Rio Tinto in the south.

The company is not fussed by the delay in the mining licence as it plans to be around in the mineral sands business in Tanzania for decades to come.

In the meantime, Strandline’s big Coburn project in WA is building up a head of steam.

Strandline is now refreshing the 2013 definitive feasibility study into its development and it is expected to capture significant capex and opex savings.

Strandline itself has said previously the refreshed DFS would capture the “value left on the table” in the original DFS, which was penned during the last fling of the mining construction boom.

Coburn has already had $30m invested in it and has all of its approvals in the bag. And although it did not proceed last time because the mineral sands market was tanking, the previous DFS nevertheless did point to a robust project.

Given zircon in particular is doing the right thing demand and price-wise (23% of the mineral assemblage), there is every chance the revised DFS will surprise to the upside