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MZI Resources In Final Construction Steps Before Mineral Sands Production

MZI Resources (ASX:MZI) is on the fast-track to becoming Australia's next mineral sands producer from the Keysbrook project in Western Australia.

Keysbrook will commence commissioning in November 2015 with first sales planned for early Q1 2016.

The project is scheduled to produce over 95,000 tonnes of leucoxene and zircon products annually.

Under the leadership of managing director, Trevor Matthews, construction of the project remains on schedule and on budget, with 74% now complete.

This is also one of the reasons why the share price of $0.41 is close to double where it was at the start of 2015.

At the Keysbrook site, construction activities have moved to be predominantly focussed on the wet concentrator plant.

The facility is well advanced, with the third level now accessible and the installation of the spiral banks that will separate the heavy mineral from the sand underway.

Following the arrival of the thickener in early July, all equipment is now onsite and will be installed over the next few months.

Matthews, commented: "We have entered a busy period for the project and it is great to see the construction and operations teams working together towards project completion and the commencement of operations."

Next steps

Delivery of MZI's new mining fleet has commenced, with all mining equipment due on site this week.

In addition, the majority of MZI's mining operators have now commenced and are currently undergoing inductions and training.

MZI plans to commission the new mining fleet and train the mobile equipment operators whilst undertaking mine development activities ahead of the commencement of full scale mining operations in November.

At the Doral site at Picton, all mechanical items have now been installed and all equipment is on site awaiting construction.

Importantly, having all equipment now on site at both plants means there is no longer any long-lead time equipment risk in the project schedule.

Analysis

Keysbrook is on track to commence commissioning in November 2015 with first sales planned for early Q1 2016.

The project is scheduled to produce over 95,000 tonnes of leucoxene and zircon products annually.

The company remains well-funded with $33.8 million in available cash at the end of June 2015, and a further A$12.8 million in available undrawn facilities.

Next key catalyst:

A revised resource for Keysbrook with the latest drilling data, which will be a key driver in extending the mine life and potentially providing a boost to economics.

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