MZI chief executive Trevor Matthews. Picture: Bill Hatto/The West Australian.
MZI chief executive Trevor Matthews. Picture: Bill Hatto/The West Australian.

UPDATE 1.50pm: MZI Resources has put a $64.3 million price tag on its proposed Keysbrook mineral sands project south of Perth and says a feasibility study has shown it will have very strong economics.

The project's net present value is estimated at $133 million (post tax), assuming a 7.2-year minelife, although this could be extended to 11 years.

Its internal rate of return was estimated at 71 per cent with a payback period of less than 15 months.

The study assumed an average mining rate of 4.5mtpa, producing an average 91,000tpa of dry mineral sands products including leucoxene and zircon.

Annual operating costs are estimated at about $34.1 million, or $379 per tonne of product.

MZI also has an ore processing agreement with the Japanese-owned Doral.

Work on the project is expected to begin early next year with first sales scheduled for early 2014.

MZI chief executive Trevor Matthews said the study made a compelling case for developing Keysbrook.

"The findings of this study provide a strong platform for MZI to move to the next phase of project development," he said.

"This will see the company continue detailed design and engineering work as well as increase its financing activities as part of the plan to complete construction next year."

MZI shares closed off 0.3 cents, or 7.69 per cent, at 3.6 cents.

The West Australian

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