Elray enters JV to develop Indonesian zircon sands project

Nevada-based junior mineral explorer Elray Resources, Inc. announced Wednesday it has acquired a 50% interest in a zircon sands mining project in Central Kalimantan, Indonesia.

The joint venture partner, PT. Indo Imperial Resources Tambang, has been operating the project on a small scale for the last two years, and is teaming up with Elray Resources to provide the resources and technical expertise required to take production to the next level, the company said.

Data available from the project demonstrates that the zircon is of a very high quality so will command premium prices, it added.

The company said it intended to conduct a comprehensive exploration program and independent feasibility study on the project. This will largely comprise drilling / test pitting programs, trace element analysis, metallurgical testing for plant specification and design, and financial modeling.

By-product opportunities, including for gold, illmenite and rutile will be investigated, it said.(alex)