Industrial Mineral Sands Projects
Mayur is pioneering the development of a highly prospective industrial and mineral sands province in southern PNG. Tenement portfolio is located along the southern coastline and delta regions of the Gulf of Papua. Potential for multiple products, short term routes to market and significant scalability to expand future low-cost operations.
Orokolo Bay Industrial Sands Project
The Orokolo Bay Industrial Sands Project will produce a number of products including titano-magnetite, DMS magnetite, construction sands and a zircon-rich valuable heavy mineral concentrate.
Definitive feasibility study (DFS) completed with the following outputs1 :
- Simple on shore surface mining (use of excavators; no requirement for blasting) targeting 5Mtpa run of mine to produce a range of products;
- Basic gravity and magnetic separation (no requirement for chemical processing);
- Proposed transhipping solution using a combination of tug and barge to load ocean going vessels;
- Products include fine grain construction sands (~1Mtpa planned for transport to the Sydney market), titanomagnetite (~400,000 tpa for steelmaking markets in Asia and ~100,000 tpa for use as Dense Medium Separation for coal washing end users in Australia), and a zircon rich valuable heavy mineral concentrate (VHMC) with potential for other heavy minerals;
- Marketing via non-binding letters of intent signed with various end users for titanomagnetite and VHMC in Asia and for DMS in Australia;
- An initial CAPEX of US$20.48 million to establish a 1.5 million product tonne per annum mining and processing operation with a forecast pay back of just over one year;
- Post-tax (real) NPV of US$131 million (10% discount rate) and IRR of 103.7% (on a 100% ownership basis).
1 For details of the DFS please refer to ASX Announcement dated 11 September 2020
- Medium term growth pipeline – Mayur has completed various exploration, drilling and metallurgical testwork on a number of other projects across the remainder of the tenement holding; offering opportunity to expand and / or replicate the planned approach at Orokolo Bay on these other projects.
- The Amazon Bay project hosts significant potential for vanadium-rich titanomagnetite given the extensive amount of historic work that has been conducted.
Orokolo Bay mineral sands pilot scale processing plant
Purari River mouth adjacent to the Orokolo Bay project
A typical mineralised profile at Orokolo Bay
Magnetic separation test works on Orokolo Bay ore