Elray says C. Kalimantan zircon mining study ahead of schedule

Las Vegas-based junior exploration firm Elray Resources, Inc. announced that it is ahead of schedule for the completion of its mining study for its Central Kalimantan Zircon Sands Project.

Elray Resources Inc. has a 50% interest in a zircon sands mining project with PT. Indo Imperial Resources Tambang, who have been operating the project on a small scale for the last two years. PT Indo Imperial Resources Tambang is looking to Elray Resources to provide the resources and technical expertise required to take production to the next level.

Data available from the project demonstrates that the zircon is of a very high quality and is commanding premium prices, it claimed. As a result, Elray Resources is in the process of doing a study on the current operating Zircon mining project. The study is covering drilling / test pitting programs, trace element analysis, metallurgical testing for plant specification and design, and financial modelling. By-product opportunities, including for gold, illmenite and rutile are also being investigated as a priority.

China has recognized the high quality of the zircon currently being delivered against contracts by this project. The project requires low capital expenditure to increase production as demanded by China and Elray fully expects the use of new more efficient recovery technologies to enable rapid revenue stream development and attractive returns, it added.(alex)