In Kenya, on the shore of Indian Ocean, a Canadian company Tiomin Resources Inc. explored found four placer titanium-zirconium deposits: Kwale, Vipingo, Kilifi and Mambrui with identified resources of heavy mineral sands, equal to 1.7 billion of tones. All fields are located at a distance of 6-12 km from the Indian Ocean coast and are easily accessible, as they are connected with the roads running along the coast. In total, on the territory of Kenya Tiomin Resources explored 3.1 billion of tones of heavy mineral sands resources.
The largest deposit of Kwale is located 40 km south-west from the port of Mombasa and 10 km from the coastline. Kwale is one of the largest deposits of titanium in the world. Proven reserves of Kwale deposit amount to 38.9 million tons of sand that contains heavy minerals of 7.1% of probable reserves and 78 million tons of heavy minerals with 4.16%.
Tiomin Resources prepared to draw Kwale deposit. The project involves the development of an annual production of 10 million tons of ore. Operations of the deposit were predicted to last for 11 years.
Independent consulting agency SRK Consulting, in November 2005, has completed an independent assessment of the project Kwale and rated it as low-risk. Kwale project had the opportunity to become one of the lowest cost development projects of titanium placers in the world, as a result of which in the first six years would be achieved annual revenue of more than 40 million dollars.
Evaluation made by Barclays Capital in order to provide it further to potential lenders of the project, ensure that the plans and preparation of mining operations at the mine Kwale and enrichment plants are based on adequate data and principles to achieve projected operating results.
A significant portion of future production of Kwale mine is already distributed according to the letter of intent and agreements with major consumers of titanium and zircon concentrates.
Since the first evaluation of the project carried out by SRK in 1999, Tiomin made a number of improvements in the mining project. The consultants found the low political and economic risk of the project, as the company is guaranteed all the rights and fiscal agreement signed by the Minister of Finance of Kenya, provides a preferential tax regime.
Resources and reserves are determined based on the results of professionally conducted drilling and sampling and analyzed by several experts who confirmed the availability of resources, which are likely to be transferred to probable and proven reserves.
In Kenya, on the shore of Indian Ocean, a Canadian company Tiomin Resources Inc. explored found four placer titanium-zirconium deposits: Kwale, Vipingo, Kilifi and Mambrui with identified resources of heavy mineral sands, equal to 1.7 billion of tones.