Pyx Resources Limited: Operating a High-Grade Zircon Resource

Pyx’s Mandiri deposit is high grade with a typical sample valued at the high end of current mineral prices. Demand for mineral sands is expected to exceed supply in the next few years if economies return to growth. Processed ore graded at 65.5% Zircon is delivered to three international customers.

Zircon has broad application in a range of industries however demand is typically driven by residential construction where ceramic tiles using Zircon as a colour and hardness enhancer are the main product, while novel applications in recent years continue to drive up demand. China has been the largest user of Zircon and relative growth rates suggest this will remain the case. Mandiri also has the potential to supply a range of additional minerals (rutile, ilmenite, etc.) from the mineral sands. Since Iluka (the largest mineral sands producer) changed the pricing structure for mineral sands trading in 2015, prices have remained at higher levels.

Following deal close the company has let a contract for additional mining equipment to enable a production expansion at Mandiri. The deposit has a JORC compliant Zircon resource exceeding 6mt. Its current processing capacity is 1,500 tpm (or 18,000 tpa) with further expansion planned. Further exploration of the 2,032ha Mandiri tenement is likely to increase resource size. Mandiri is the largest resource identified since Sheffield Resources’ Thunderbird deposit in 2012.

The company’s Singaporean subsidiary (Takmur Pte Ltd) owns 99% of Indonesian subsidiary PT Andary Usaha Makmur (PT AUM) which has a contract to mine and process ore from the Mandiri deposit in Central Kalimantan Province, Indonesia, in return for 95% of profits from the mine and exports. Rights to mine the deposit and export Zircon are held by PT Investasi Mandiri (PTIM).