www.gunson.com.au
Gunson Resources is focused on exploration for and development of mineral deposits in Australia. Since its public listing in 2000, Gunson has discovered then completed a Definitive Feasibility Study, in January 2010, on its Coburn Zircon Project in Western Australia and completed a Pre Feasibility Study, in October 2009, on its Mount Gunson Copper Project in South Australia.
A 15 month Bankable Feasibility Study on the Mount Gunson commenced at the end of 2009, with strong interest being shown by several commodity trading houses in funding this Study and the subsequent mine development.
Gunson Resources receives investment interest in Coburn Zircon Project
Perth-based mineral exploration company Gunson Resources (ASX: GUN) has reported that mineral sands marketing consultancy TZMI is bullish on the investment climate and market fundamentals have become increasingly more buoyant in the zircon sector in recent months.
TZMI’s view has been reflected in significantly increased industry offtake/investment interest in Gunson’s Coburn Zircon development project in Western Australia over the past several months.
Gunson's Coburn Zircon Project covers 1200 square km of a fossil coastline which has the potential to host a world class heavy mineral sand field.
Further, TZMI commented that more favourable market conditions and forecast price increases over the next few years should provide an investment environment that supports the advancement of new projects, for the first time in many years.
A Definitive Feasibility Study (DFS) on Coburn was completed at the end of 2009 and the results announced to ASX on 7th January 2010.
David Harley, managing director, said this study concluded that the capital cost of establishing a mine at Coburn to produce final mineral products for export would be $169 million at a P90 level, meaning a 90% chance of the final cost being at or below the $169 million estimate.
The mine life, three quarters of which is based on JORC compliant ore reserves, is 23.5 years with further potential to increase these reserves.
Financial returns on a pre tax, ungeared basis, include an operating cash surplus of $37 million per annum, NPV of $163 million at an 8% discount rate and an IRR of 16.8%.
Gunson said several companies with the financial resources to invest in the Coburn Project are currently reviewing the investment opportunity, with a view to reaching a decision during the September quarter of 2010.
Two of these companies are European owned, with the remainder based in Asia.
