Melior Provides Update on Goondicum Project Commissioning and Production Ramp-Up
23 May 2019 - 12:24AM
Melior Resources Inc. (TSXV: “MLR”) (“Melior” or the “Company”)
today updated the market about progress at its Goondicum Ilmenite
Project.
Commissioning at Goondicum continued through
April with ilmenite production of 7,830 tonnes and apatite
production of 860 tonnes against budget goals of 10,700 tonnes and
2,300 tonnes respectively.
Cumulative ilmenite production since start of
commissioning through the end of April 2019 is at 89% of budget
with 30,570 tonnes produced against a budget of 34,420 tonnes.
Recent plant performance has reached the 330
tonnes per day of ilmenite required to be cash flow breakeven,
however, this is yet to be achieved on a sustained basis and at the
quality levels required.
No Lost Time Incidents were recorded during
April.
Management is confident of reaching the
projected production levels and cost targets although it is not
expected that these will be achieved by the end of the June quarter
2019 as previously advised.
The following points are of note:
- Apatite production has been below budget since the resumption
of operations in November 2018, averaging 33 tonnes per day (tpd)
for March and April against a budget of 70tpd. However, as a result
of minor plant modifications, production over the past 7 days has
averaged 115tpd of on-specification product, 138% above the
nameplate production level of 82tpd.
- Ilmenite production has also performed below expectation for
March and April averaging 257tpd against a budget average of
328tpd. Over the past 7 days, production has increased to an
average 330tpd against a budget level of 397tpd. The
underperformance is largely throughput related and actions to
increase the hourly plant throughput are underway. The project is
anticipated to achieve a consistent production level of 460tpd at
full production.
- The production of the targeted AA ilmenite quality
specification has taken longer than anticipated to be consistently
achieved. However, modifications to the dephos circuit are leading
to a gradual improvement in product quality and we expect to
consistently produce AA product in due course. The lower than
planned product quality is manifesting itself through lower than
anticipated project revenue.
- Operating costs, inclusive of the cost of minor plant
modifications, for March and April have been above budget levels
and are forecast to reduce once production targets are
achieved.
Notwithstanding delays in achieving the required
quality and introductory discounts, in Australian dollar terms,
current market ilmenite prices appear to be close to budget of
$275/t for the AA spec ilmenite. Ilmenite demand remains strong
with continuing enquiries from around the world for Goondicum
ilmenite products.
Mark McCauley, Melior’s CEO, said, “The
project has fallen below the anticipated production trajectory
although, in the past seven days, there has been a significant
improvement in apatite production and we anticipate further
improvements to the ilmenite production through continued
debottlenecking and increase in the plant throughput. The next goal
for the project is to achieve consistent cash breakeven status
which, at current pricing, is estimated to occur at production of
330tpd (10,000 tonnes per month) of AA specification ilmenite.”
About Melior
Melior is the owner and operator of the
Goondicum ilmenite and apatite mine located in Queensland,
Australia. Further details on Melior and the Goondicum mine can be
found at www.meliorresources.com and regulatory filings are
available on SEDAR. Melior is incorporated under the provisions of
the Business Corporations Act (British Columbia) and has a
registered office in Vancouver, British Columbia. Melior is
classified as a Tier 1 Mining Issuer under the policies of the TSX
Venture Exchange.
Amelia Bauer, BEng (Environment), (member of
Engineers Australia and Member of Association of Professional
Engineers and Geoscientists Manitoba), employed by Goondicum
Resources Pty Ltd is the Qualified Person re this announcement.
The expectations outlined in this press release
regarding the Goondicum mine represent the information contained in
the PEA prepared independently by TZ Minerals International Pty
Ltd. for the purposes of National Instrument 43-101 (“NI 43-101”)
and rely, in part, on inferred resources. As a result, the PEA is
subject to increased uncertainty and technical and economic risks
of mine failure and there can be no assurance that the report’s
expectations will be achieved.
The PEA is preliminary in nature and includes
Inferred Resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no
certainty the PEA will be realized. Shareholders are strongly
encouraged to refer to the complete updated Technical Report
prepared in accordance with NI 43-101 in respect of the Goondicum
mine, which includes the results of the PEA described in this news
release, which has been filed on SEDAR at www.sedar.com under
the Company’s profile on August 30, 2018.
Forward Looking Statements
Disclaimer
This press release contains forward-looking
information within the meaning of applicable securities laws that
reflects the current expectations of management of Melior regarding
the production ramp up of the Goondicum mine. The words “may”,
“would”, “could”, “should”, “will”, “anticipate”, “believe”,
“plan”, “expect”, “intend”, “estimate”, “aim”, “endeavor”,
“project”, “continue”, “predict”, “potential”, or the negative of
these terms or other similar expressions have been used to identify
these forward-looking statements and include, but are not limited
to statements regarding anticipated production, timing for first
ilmenite shipment and haulage and target production rates.
Forward-looking statements are based upon a number of assumptions
and are subject to a number of known and unknown risks and
uncertainties, many of which are beyond management’s control, and
that could cause actual results to differ materially from those
that are disclosed in or implied by such forward-looking
statements. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those expected or estimated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. Risks, assumptions and
uncertainties regarding Melior and the forward-looking information
herein are described in its publicly available disclosure documents
including the Technical Report, as filed by Melior on SEDAR
(www.sedar.com) except as updated herein. This forward-looking
information represents management’s views as of the date of this
press release. While subsequent events and developments may cause
such views to change, Melior does not intend to update this
forward-looking information, except as required by applicable
securities laws.
For further information please
contact:
MELIOR RESOURCES INC.Mark McCauleyChief
Executive Officer+61 7 3233
6300mark.mccauley@meliorresources.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/121495bf-d4c7-407c-870b-5c995a5c9fca
https://www.globenewswire.com/NewsRoom/AttachmentNg/08a00692-bbc1-4638-a0d8-d43dc99ab36e
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