Cyclone looming after China ENFI agreements

DIATREME Resources claims to be “a major step closer” to developing the Cyclone zircon project in Western Australia after signing cooperation and consulting services agreements with China ENFI Engineering Corp.
Cyclone looming after China ENFI agreements Cyclone looming after China ENFI agreements Cyclone looming after China ENFI agreements Cyclone looming after China ENFI agreements Cyclone looming after China ENFI agreements

Part of Diatreme's Eucla Basin project

Michael Quinn

The agreements replace the "previous non-binding MoU" reported last September.

However the exact nature of the agreements remains somewhat hazy.

So far as the cooperation agreement is concerned, ENFI is to use its network in China "to assist" in sourcing investors, offtakers, debt financiers.

With regards the consulting services agreement, "detailing the remaining definitive feasibility study aspects" is to be completed by ENFI.

One detail provided was the expectation the DFS would be completed in five months.

ENFI is a subsidiary of China Minmetals Group.

The agreements with ENFI are said to follow the issuing of final environmental approvals from the Western Australian government 12 months ago for Cyclone, along with the determination of a suitable water supply, agreement with the Native Title holders and award of a mining lease.

Cyclone. located in the Eucla Basin near the border with South Australia, has a reserve of 138 million tonnes grading 2.6% heavy minerals containing 1Mt of zircon.

The project has previously been assessed as a 10Mt per annum operation producing 144,000tp of concentrate grading 96% HM.

An assessment completed by Sedgman in 2016 put capex at A$161 million.

Shares in Diatreme jumped 150% to 3.5c in late trade, capitalising the company at about $33 million. 

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