Company Summary

Matilda zircon (ASX:MZI) is a zircon and leucoxene focussed mineral sands development company with projects in the northern Territory, Western Australia and Indonesia.
Matilda has commenced mining on the Tiwi Islands in the northern Territory. The Tiwi project includes a 300 tph processing plant and supporting equipment and infrastructure.

The company is developing a significant leucoxene project near Keysbrook in Western Australia.

The Keysbrook project consists of a low overburden and low clay deposit with a reserve of 41 million tonnes at 2.7% heavy mineral (hm)to produce 1.2 million tonnes of heavy mineral comprising Proven Reserves of 39 million tonnes at 2.7% hm and Probable Reserves of 2mt at 2.6% hm.

Environmental Approvals have been granted to mine at Keysbrook by the Western Australian Minister for the Environment. Matilda is currently seeking Development Approvals from the Western Australian Department of Planning. Assuming Development Approvals are granted.
Matilda intends to begin construction at Keysbrook in 2012 and mining in early 2013.

The Indonesian Project includes a small processing plant at Sampit in Kalimantan which is currently on Care and maintenance.

The company has targeted zircon and leucoxene as high value mineral sands products with strong demand fundamentals. Zircon is primarily used to produce ceramic and porcelain product with demand driven by global urbanisation trends particularly in countries such as China and India.

Leucoxene is a high titanium mineral used in the production of titanium pigment for paint and plastics. It is also used in the manufacture of welding electrodes and titanium metal.

Both zircon and leucoxene have increased significantly in price since mid 2010.

Leucoxene prices are not commonly quoted but are related to the price of rutile. Typically the sales price of high titanium leucoxene is approximately 20% lower than rutile.