Metallica Minerals (ASX:MLM) has received its maiden Independent...

Metallica Minerals (ASX:MLM) has received its maiden Independent Ore Reserve Report and completed Feasibility Study for the Urquhart Point HMS Mineral Sands Project in Queensland.

During the life of the project, the concentrate is estimated to be valued between US$250 per tonne to US$330 per tonne FOB, depending on the mineral composition and spot price.

Estimated concentrate production is 87,000 tonnes with an average Valuable Heavy Mineral assemblage of 14.8% zircon, 17.3% rutile and 16.2% ilmenite, with the balance comprising predominately iron oxide sands.

Total operating costs are estimated at $11.02 and $12.52 per tonne of material mined, equating to between $2.5 million and $3 million per year.

Net revenue is estimated to be higher in the first 18 months of operation due to the high grades mined in the first mining areas allowing for early capital payback; and Metallica has $15 million in carried forward tax losses and therefore, the pre-tax and post-tax project returns are effectively the same.

In addition to Urquhart Point, Metallica holds more than 2,000 square kilometres of prospective mineral sands tenements in the Western Cape York region.

Several of these tenements also cover areas of Government mapped bauxite which will also be investigated during Metallica’s exploration drill programs from next quarter onwards.