Mineral Commodities Closer to South African Sands Project

Adelaide, Mar 2, 2006 (ABN Newswire) - Australian resources developer, Mineral Commodities Limited (ASX: MRC) is one step closer to being able to mine its Tormin Mineral Sands Project in South Africa.

Mineral Commodities has announced that it has received written advice from the South African Department of Minerals and Energy (DME), approving the application for a Prospecting Right for the Tormin Project.

"Approval of the Prospecting Right is a significant event in the development of the Tormin Mineral Sands Project," the Company's Managing Director, Mr Mark Caruso, said.

The Tormin mineral sands prospect covers an approximately 90 hectare enriched zircon and HiTi beach deposit located on the isolated west coast of South Africa, approximately 400 kilometres north of Cape Town and 14 kilometres north of the Olifants River.

Anglo Base Metals' Namakwa Sands mining operation at Brand se Baai is 100 kilometres to the north by well maintained road, with the mineral separation processing operations at Lutzville approximately 40 kilometres inland by sealed road.

"Tormin's heavy mineral deposits have accumulated along the 12 kilometre long, 100 metre wide beach, to a maximum depth of 12 metres," Mr Caruso said.

The mineralisation occurs on an active beach currently being mined for diamonds and continually being supplemented through erosion of a heavy mineral enriched, 25 metre thick paleo-beach terrace situated 35 metres above the beach's current sea level.

Trans Hex Operations (Pty) Ltd (THG), a South African diamond producer, in 1992 undertook drilling and pilot plant operations to determine plant operation parameters.

Based on this work, THG concluded the beach contained an average grade of 42.3% Heavy Mineral. The predominant heavy mineral is garnet with ilmenite, pyroxene, zircon, rutile, and leucoxene contained in the heavy mineral assemblage.

In 2004/2005, the Company commissioned a Feasibility Study conducted by Bateman Engineering based on the THG drilling at Tormin and supplementary bulk sampling which indicated a result that would yield a high quality (ceramic grade) zircon and high Ti product. The study is currently under independent review.

"Achieving the Prospecting Right was an important checkpoint and with some environmental studies already done for the Mining Right, the Prospecting advice adds to our confidence in more rapidly accelerating work at Tormin during 2006," Mr Caruso said.