Tiomin Resources Incorporated, a Canadian Company,recently announced that it has completed the acquisition of approximately 100 acres of land in proximity to the Central Dune area of the Kwale titanium project in Kenya necessary for the construction of the Gravity and Mineral Processing Plants.
The Mineral Processing Plant (MPP) will comprise the Feed Preparation Circuit, Rutile Dry Circuit and Zircon Wet/Dry Circuits and will be permanently established adjacent to the Wet Plant at the Central Dune.The MPP will be designed to receive up to 80 tph of heavy mineral concentrate (HMC) reaching an annual projected production rate of 330,000 tpa of ilmenite, 75,000 tpa of rutile and 40,000 tpa of zircon.
Up to 95% of the titanium heavy minerals can be extracted using an environmentally friendly process of water, gravity, spirals and magnets.
Infrastructure to and from the proposed plant site is excellent with the main Mombasa Coastal Highway located just 8.4 km away. The Company has already acquired all the surface area necessary for construction of the ship loading facility at Likoni on the south side of Mombasa
Harbour, the second largest port on the east coast of Africa. Located within a 50 km haul distance from the Kwale processing facilities, the port location represents a major competitive advantage with easy accessibility to the major consumer centers in Europe and Asia.
The presence of a large oil refinery in Mombasa is another significant benefit to the Kwale project.
Significant strides have been made to resolve all remaining issues relating to the resettlement of the local farmers from the mine site.The resettlement area, located approximately 20 km from the mine site,has been allocated and agreed to by all parties. The relocation process is expected to commence on schedule in mid-November 2005 with
construction expected to be underway by the end of the year.
A substantial portion of Kwale’s production has been committed through letters of intent and offtake agreements with major titanium and zircon consumers. Project financing continues to take shape as a number of multilateral agencies and international banks have indicated strong interest. Based on the recently updated Feasibility Study, production from Kwale is expected to generate pre-tax cash flow of over US $40 million in the first six years of operation, largely deriving from the
premium priced rutile (50%) and zircon (30%), with ilmenite
representing 20% of sales. Once underway, the Company’s other large titanium exploration projects may be placed into development, providing the potential for substantial long term growth.
For further information, please contact Tiomin at (416) 350-3776.
Jean-Charles Potvin, President, ext. 227,
Bruce Ramsden, Chief Financial Officer, ext. 232 or
Donna Yoshimatsu, Investor Relations ext. 222.
Visit the Company’s website at www.tiomin.com.
Photo: Tiomin Plant at Kwale, Kenya.
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