MZI Resources Ltd.: Quarterly Activities Report March 2016
02.05.2016 | ABN Newswire
Perth, Australia - MZI Resources Ltd. (ASX:MZI) are pleased to provide the Company's Quarterly Activities Report for March 2016.HIGHLIGHTS
- Quarterly saleable production increased 173% to 16,168 tonnes
- Total quarterly product sales of 11,397 tonnes and sales revenue of $6.3 million
- Balance of US$25.5m RCF Bridge Facility repaid
- Leucoxene sales commenced with first L70 shipment
- Total Ore Reserves increased 177%, pointing to +15 year mine life
- Keysbrook Project officially opened 4 April 2016
- 12 month Lost Time Injury free milestone achieved
The March quarter 2016 represented the first full quarter of commercial operations at the Company's flagship Keysbrook Project, following commissioning in the preceding quarter. The primary focus during the period was the production ramp-up towards targeted recovery and production rates following the achievement of nameplate plant throughput capacity and reliability in December 2015.
Production and sales data for the March quarter are depicted in Table 1 on page 3 of this report.
Comment
MZI Managing Director Trevor Mathews said: "MZI successfully achieved a number of important milestones in the March quarter, despite encountering operational challenges not uncommon during the ramp-up phase of a major new project such as Keysbrook.
"On the corporate front, the repayment of the US$25.5 million RCF Bridge Facility has significantly streamlined our capital structure and greatly reduced our annual interest obligations, leaving us well placed to consolidate our new status as a globally significant producer of high value mineral sands products.
"We also clearly demonstrated the long term value of our Keysbrook business by almost trebling our Ore Reserves to the equivalent of 16 years of operation at currently planned production rates.
"At the same time, we continued to ramp up production and exported our first leucoxene shipment from Bunbury whilst also implementing operational changes we are confident will enable us to achieve our recovery and production targets in the near term.
"With our ramp-up progressing, and positive market indications emerging for key products, I look forward to further improvement in the June quarter."
To view the complete report, please visit:
http://abnnewswire.net/lnk/1PSRCKX6
About MZI Resources Ltd:
MZI Resources Ltd. (ASX:MZI) is a mineral sands producer focused on the high value minerals of zircon and leucoxene, and owns the newly commissioned Keysbrook Mineral Sands Mine, 70 km south of Perth in Western Australia.
Development of Keysbrook was completed ahead of schedule and within budget in October 2015, and completed its first shipment of zircon concentrate in December 2015. Keysbrook is designed to produce approximately 96,000 tonnes of zircon concentrate and leucoxene annually, with over 85% of all planned production committed under offtake contracts with blue chip international customers.
Contact:
Trevor Matthews, Managing Director
T: +61-8-9328-9800
E: admin@mzi.com.au
www.mzi.com.au