Expansion Options

The initial ‘Starter Pit’ development is valuable in its own right. Importantly, the infrastructure to support this development has been designed to facilitate options to expand production, extend the life, and add value to the products. Once the ‘Starter Pit’ is well established, these options will be progressed.

Expansion

The FEL mining operation is ‘low intensity’ with only 2 FEL’s operating to maintain the initial production rate. This mining operation could be readily duplicated to expand production.

The port and haul road have latent expansion capacity, which would allow a significant increase in production, for modest capital expenditure.

The PCP and MSP would need to be expanded to handle increased production.

Value add

A dry plant, to separate zircon and rutile products form the non-magnetic concentrate, would add value to these products.

Life Extension

The starter pit utilises only 17% of the 959 million tonnes at 6.1% THM Mineral Resource at Ranobe.

A modest amount of in-fill drilling would enable more of the Mineral Resource to be upgraded to the Measured and Indicated categories and therefore be added to the Ore Reserve.

The ’Starter Pit’ utilises just 3% of the total exploration target of more than 4.7 billion tonnes for the Toliara Sands Project.