ML 24511 Annual Report for period ending 4 December 2018

Abstract

This annual report covers ML 24511 located on the north east coast of Melville Island, part of the Tiwi Islands, in the Northern Territory (see Figure 1 and Figure 2). The area is prospective for zircon and rutile-rich mineral sands however suitable mining areas must be outside of environmentally sensitive beach, mangrove and river zones. The tenement was purchased by MZI Resources (previously Matilda Zircon) from Stirling Zircon Pty Ltd who obtained the tenement from the Administrator of Matilda Minerals in July 2009. The first tenement owner Matilda Minerals Ltd ('Matilda') was admitted to the Australian Stock Exchange on 15 September 2004. Matilda's objective was to explore and mine small to medium sized heavy mineral deposits which are rich in zircon and rutile, have low clay content, little or no overburden, a small environmental footprint and require low capital expenditure to develop. The potential deposits on the Tiwi Islands met these criteria. The tenement was awarded on the 5th December 2005. Based on a minable reserve of 190,250 tonnes at 7.5% heavy mineral concentrate containing approximately 52% zircon, 34% rutile and minor leucoxene and ilmenite heavy minerals the project was expected to have a mine life of approximately 6 months. Mining and processing operations commenced at the ML 24511 'Lethbridge Bay West' in July 2010 and were completed in October 2010. Total production by MZI was 11,094 tonnes of concentrate from 118,329 tonnes processed. The economic mineralisation within ML 24511 has been mined with only mineralisation within environmental buffers remaining. During the reporting period no mineral sand mining or exploration was completed. Focus was rehabilitation with rehabilitation monitoring and completion of a revised Mine Closure Plan.