Perth, May 1, 2006 AEST (ABN Newswire) - Olympia Resources (ASX: OLY) has shipped the first 120 tonnes of zircon concentrate from Kalimantan, Indonesia for trial testing by Chinese customer Zhangzhou Antai Zircon Industrial Development Co. Ltd ("Zhangzhou").
A second trial shipment is planned to China for Zibo Qi-Culture Technical and Economic Development Co. Ltd ("Zibo") in May.
Zhangzhou and Zibo have each agreed to purchase from Olympia at world market prices up to 50,000 tonnes of zircon per annum over the next 10 years. The zircon concentrate, containing 75-80% zircon, is purchased by Olympia from small zircon producers in Kalimantan; an under explored mineralised province Olympia believes is highly prospective for zircon and other heavy mineral sands.
Olympia plans to source approximately 35,000 tones of zircon per annum from local producers and anticipates increasing supply by establishing its own zircon mining operation in Kalimantan to produce up to 100,000 tonnes of zircon per annum. Olympia is aggressively exploring in Kalimantan with the aim of identifying a large resource containing at least one million tonnes of zircon.
Olympia Resources managing director Peter Gazzard said, "Our first shipment represents the beginning of what we hope is a very profitable long-term relationship with the Kalimantan mining community and our Chinese customers. This shipment represents early cashflow for Olympia, and we anticipate future cashflow from further sales of locally produced zircon will fully fund our zircon exploration program in Kalimantan.
Olympia's core objective is to become a reliable and respected supplier of premium quality heavy mineral sands, particularly zircon, to the world market. Kalimantan is important to achieving this objective."
After the second trial shipment of 120 tonnes in May, larger shipments are planned, progressively increasing zircon sales to approximately 3,000 tonnes per month.
Like other mineral commodities, zircon prices are being driven by strong demand from China and India. Zircon is extremely hard and resistant to corrosion. It is used in the steel industry to line blast furnaces, in the ceramics industry, and in engines, electronics and spacecraft. Zircon products are also used in computer disc drives, for lightweight warmth and protection in clothing, and in many domestic products such as ballpoint pens and wear-resistant knives.
Source:
Peter Gazzard
Managing Director
Olympia Resources Limited
www.olympiaresources.com
About MZI Resources Ltd
MZI Resources Ltd (ASX:MZI) is a mineral sands company focused on the high value minerals of zircon, rutile and leucoxene based in Perth, Western Australia. Its flagship operating asset is the Keysbrook Mineral Sands Project, located 70km south of Perth. At the Keysbrook mine, mineral sands are mined and processed to produce heavy mineral concentrate (HMC) which is processed into final products under a toll treating arrangement with Doral Mineral Sands Pty Ltd at the Picton Mineral Separation Plant (MSP) near Bunbury.
The Keysbrook mine hosts a world-class zircon / leucoxene ore body with total Ore Reserves equivalent to over 15 years of production at design output rates, and total Mineral Resources equivalent to over 30 years of production. Production commenced in late 2015, making the Keysbrook Project Australia’s first – and the world’s largest - primary producer of high value leucoxene.
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