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MZI Resources Appoints Michael Ferraro As Chief Operating Officer

MZI Resources (ASX:MZI) has appointed Michael Ferraro as its chief operating officer as it transitions to production in Q4 2015 from its Keysbrook Mineral Sands Project in Western Australia.

Ferraro has over 30 years' industry experience managing complex metallurgical businesses, mineral sands operations and related activities.

He has an extensive mining and mineral processing background, and has a proven performance record in senior roles encompassing marketing, commercial arrangements, strategic and operational planning, occupational health and safety and environmental management.

Ferraro was mostly recently the managing director of Doral Pty Ltd, a position he held from 2010 until late 2014.

He has also held senior roles with SIMCOA (silicon metal producer) and General Manager of Doral's mineral sands business.

Both businesses are based in the same region as the Keysbrook Project.

In addition, Keysbrook has an agreement to process its heavy mineral concentrates into final products at Doral's mineral separation plant.

Peter Gazzard is moving from the chief operating officer position into the part time role of Technical Director (not a board position).

He will focus on programs to further optimise the already high value Keysbrook Project and early studies reviewing options to expand Keysbrook annual production.

These changes are part of the company's transition from a project developer to a long term mineral sands producer.

Keysbrook Minerals Sands Project

The Keysbrook Mineral Sands Project is forecast to produce on average, 96,000 tonnes per annum of mineral sands products comprising:

- 28,800 tpa (dry) of L70;
- 38,400 tpa (dry) of L88; and
- 29,000 tpa (dry) of zircon concentrate.

Heavy mineral concentrate will be trucked about 120 kilometres to Doral Mineral Sands' mineral separation plant, which is just 10 kilometres from the Bunbury Port, for toll treatment.

Keysbrook has a high value JORC ore reserve of 26 million tonnes with in-situ THM of 670,000 tonnes grading 27.8% L70 (70% titanium dioxide), 46.6% L88 (88% titanium dioxide), 14.6% Zircon, and 11% other minerals.

Ore mining rate is set at 4.5 million tonnes per year to an average depth of 2.2 metres and no strip ratio for very low cost open pit mining.

Annual EBITDA has a base case of $44 million per year that is derived from a low OPEX of $331 per product tonne. The project is funded with a development cost of $69.6 million and pre-operations cost of $6.2 million.

About 85% of the project's annual production by volume has been sold under long term contracts.

The project is scheduled for commissioning and production in the fourth quarter of this year.

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