Tiomin Secures Land at Kwale for Plant Construction.
The Mineral Processing Plant (MPP) will comprise the Feed Preparation Circuit, Rutile Dry Circuit and Zircon Wet/Dry Circuits and will be permanently established adjacent to the Wet Plant at the Central Dune. The MPP will be designed to receive up to 80 tph of heavy mineral concentrate (HMC) reaching an annual projected production rate of 330,000 tpa of ilmenite, 75,000 tpa of rutile and 40,000 tpa of zircon. Up to 95% of the titanium heavy minerals can be extracted using an environmentally friendly process of water, gravity, spirals and magnets.
Infrastructure to and from the proposed plant site is excellent with the main Mombasa Coastal Highway located just 8.4 km away. The Company has already acquired all the surface area necessary for construction of the ship loading facility at Likoni on the south side of Mombasa Harbour, the second largest port on the east coast of Africa. Located within a 50 km haul distance from the Kwale processing facilities, the port location represents a major competitive advantage with easy accessibility to the major consumer centers in Europe and Asia. The presence of a large oil refinery in Mombasa is another significant benefit to the Kwale project.
Significant strides have been made to resolve all remaining issues relating to the resettlement of the local farmers from the mine site. The resettlement area, located approximately 20 km from the mine site, has been allocated and agreed to by all parties. The relocation process is expected to commence on schedule in mid-November 2005 with construction expected to be underway by the end of the year.
A substantial portion of Kwale's production has been committed through letters of intent and offtake agreements with major titanium and zircon consumers. Project financing continues to take shape as a number of multilateral agencies and international banks have indicated strong interest. Based on the recently updated Feasibility Study, production from Kwale is expected to generate pre-tax cash flow of over US $40 million in the first six years of operation, largely deriving from the premium priced rutile (50%) and zircon (30%), with ilmenite representing 20% of sales. Once underway, the Company's other large titanium exploration projects may be placed into development, providing the potential for substantial long term growth.
Certain of the information contained in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the prices of rutile, zircon and ilmenite, estimated future production, estimated costs of future production, the Company's sales policy and permitting time lines, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of rutile, zircon and ilmenite, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the Ontario Securities Commission.
Tiomin Resources Inc. (TSX:TIO)
|Printer friendly Cite/link Email Feedback|
|Date:||Sep 13, 2005|
|Previous Article:||International Monetary Systems Initiates Organic Growth Strategy; Appoints Barbara Martin National Sales Manager.|
|Next Article:||Onelink4travel Announces Financial Projections For 2005 And 2006.|