MEDIA RELEASE
28 August 2007
Matilda increases production capacity by 30%
·
New feeder
increases plant capacity by 30%
·
Second shipment this
week
·
Mineral sands
quality above test work expectations
·
Stockpile finance
in place for wet season working capital
Matilda Minerals (ASX:MAL),
Australia’s only mid-tier Mineral Sands producer, is ramping up
production at its primary Tiwi Islands mineral sands project, with improvements
to the plant delivering a material increase to production capacity.
Matilda Managing
Director Bruce Maluish said the introduction of the new feeder system to the
processing plant was expected to increase production by 30%.
“The new
front end to the plant will enable production to increase from 90 tonnes per
hour to 120 tonnes per hour with expected better availability – an
immediate 30% increase in capacity,” Mr Maluish said.
The addition
includes a high capacity apron feeder and wet trommel to the existing
concentrator.
Mr Maluish said the
additional capacity would allow Matilda to capitalise on the considerable
minerals sands potential in the region.
“These
improvements have been funded from cashflow, and with additional processing
potential will add direct value for shareholders,” he said.
Matilda commenced
production on the Tiwi Islands late last year, and sailed its first shipment
of over 7,000 tonnes of high grade zircon concentrate to China
in June 2007.
Market results from
its first shipment have been positive, with the quality testing delivering
higher than expected results.
“Quality
results from the first shipment have shown that this is a premium quality
zircon and rutile concentrate. The better than expected quality means that the
production value is increased,” Mr Maluish said.
“We are also
encouraged by the demand outlook for our high grade zircon product, with demand
from China and India
expected to see a steady growth in demand over the next five years.”
Demand for zircon
will also be driven by an expected increase in demand for high quality
ceramics, refractories and castings.
Matilda’s
second shipment to China has
left the Tiwi Islands this week, and the company has
scheduled a shipment of high grade concentrate approximately every six weeks.
Mr Maluish said the
Company had also take steps to maintain cashflow for the company through the
wet season.
“We have
negotiated “stockpile finance” which means we can continue to
readily fund the Tiwi
Islands project
operations and development work during the wet season, and drive value for
shareholders,” Mr Maluish said.
With the certainty
of the plant now consistently achieving production throughput, the Company is
now in a position to introduce some accuracy with hedging and is taking
advantage of the recent drop in the Australian / US exchange rate.
“We have engaged
Oakvale Capital as currency and risk advisors, and introduced a hedging
approach that will allow us to cover sales at opportunistic exchange
rates,” he said.
For further
information contact:
Bruce Maluish – Managing Director
Matilda Minerals Ltd
Tel:
(08) 9481 1444 or 0418
940 417
Warrick Hazeldine
Investor
Relations
Tel:
(08) 9485 1254 or 0417 944 616
Background
ASX Code MAL
Issued Capital 62m
Unlisted Options 11.5m
Closing price 0.51
Market cap $31m
Matilda Minerals is focused on developing high-value zircon and
rutile-rich mineral sands deposits on its flagship Tiwi Islands
project.
Low capital and operating costs distinguish Matilda from traditional
mineral sands companies where lower‑priced ilmenite is the primary
product.
Its Tiwi Islands
mineral sands project is situated on Bathurst
and Melville (Tiwi) Islands north of Darwin, Northern Territory, and is in full production for the
next 4 years on the Andranangoo project on Melville Island.
Increased
worldwide demand for zircon has led to the price exceeding
US$800 per tonne.
Matilda has compiled an impressive portfolio of exploration tenements
that covers the highly prospective far north Queensland region on the west of
Cape York including Urquhart Point and more recently, Mapoon.
Matilda also has other projects in Western
Australia at Pender Bay (north of Broome), Anson
Bay (north Western Australia) and Carnarvon.
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