Discovered in 2007, the project is located along the Barton shoreline within the Wanna Lakes area of the northern Eucla Basin, 25 kilometres from Western Australia’s state border with South Australia and 220km north of the transcontinental railway.
The Cyclone deposit occurs within adjoining tenements M69/141 (Cyclone), held by wholly owned subsidiary, Lost Sands Pty Ltd and R69/1, (Cyclone Extended), held by Diatreme Resources.
Following the acquisition of the Cyclone Extended Heavy Mineral Resource, Cyclone’s JORC Mineral Resource (Measured and Indicated) has been estimated at comprising 211 million tonnes at 2.3% heavy minerals (HM) (1% cut-off grade), containing 4.8 million tonnes HM (refer ASX announcement 9 April 2015). This includes a Measured Resource of 156Mt at 2.4% HM and an Indicated Resource of 55Mt at 1.8% HM (both at 1% HM cut-off grade).
In November 2014, Western Australia’s Department of Mines and Petroleum granted a Mining Lease for the project (ML69/141), which followed the signing of a Project Agreement with the traditional owners, the Pila Nguru Spinifex People. In January 2017, the project received final ministerial consent, allowing for the development of a mineral sands mine and associated infrastructure.
In January 2018, Diatreme signed Cooperation and Consulting Services agreements with leading mining services company China ENFI Engineering Corporation (ENFI), for the completion of Cyclone’s definitive feasibility study (DFS). ENFI, which is backed by one of the world’s largest mining groups, China Minmetals, also agreed to use its network within China’s state-owned enterprise and banking sectors to assist in sourcing potential project investors, offtakers and project debt funding.