After a year of pandemic-impacted work, Dome says it has defined a resource of magnetite and other commercial minerals at Kulukulu South that is far better than expected, and which could underpin the mine's first 6-7 years of production.

 

Kulukulu, near the Sigatoka River mouth, was previously recognised as a single deposit, but drilling over the past year defined the southern portion was distinct.

 

Kulukulu South resource is now seen as substantially higher grade than the remainder of Sigatoka's resource 34 million tonnes at 20.2% heavy minerals and 12.9% clay for 7Mt HM, including a small but high-grade 610,000t resource grading 48.3% that sits mostly above sea level.

 

There is also an unclassified resource at Kulukulu North of 73Mt grading 17.4% and 6% clay, for 12.7Mt HM that requires additional work, including further assessment of the impact of existing settlements on mineable resources.

 

Chairman Garry Lowder said Kulukulu South was accessible for mining, with a mix of high-grade and low slime contents that would impact positively on the viability of magnetite sand mining at Sigatoka.

 

Total resources at Sigatoka are now 189.3Mt at 12.7% HM split over Kulukulu, Koroua Island and the Sigatoka River, a small increase over the year in terms of tonnes.

 

Lowder said the company's next step would be to collect a bulk sample for shipping to Australia for testing, as part of Dome's resumed definitive feasibility studies, which it had hoped to complete this year, although COVID-19 had slowed work considerably. 

 

A prefeasibility study completed in 2015 suggested A$105 million would be needed in stages to start operations, but would offer a two-year payback based on production of 351,000tpa of magnetite concentrate, 260,000tpa of non-magnetic bulk heavy mineral concentrates and up to 2Mtpa of sand and gravel.

 

Kulukulu South area is expected to feature prominently in the bulk sampling process, however recent activities have been hampered by COVID-19 restrictions that have limited travel between Fiji and Australia.

 

There is little the local Fijian staff can do without supervision and involvement from Australia, Dome said recently.

 

The same access issues have prevented Dome from farming out its Nadrau and Ono Island gold projects.

 

The company started the quarter with $6386 in cash and debts of $1.2 million, but had undrawn facilities of $3.6 million available.

 

Dome's stock has traded between 11.5-21.5c over the past year, and closed at 16c yesterday, valuing the company at $47 million.