Diatreme Resources boosts Cyclone HM resource estimate to 132.1Mt at 2.33%

Oct. 5 - Brisbane based diversified mineral explorer Diatreme Resources has upgraded the Cyclone HM resource estimate to 132.1 million tonnes at 2.33% heavy minerals (HM) at a 1% cut-off grade, containing 3.1Mt HM, of which >40% is classified as Measured.
The upgrade confirms the economic potential of Diatreme's fully owned zircon rich Cyclone HM Deposit in Western Australia and demonstrates the robustness of previous estimates.
It is situated within the emerging world class Eucla Basin heavy mineral sands province, along with extensive areas of underexplored ground prospective for heavy mineral sands.
There are 998,000 tonnes of zircon (excluding titanium minerals) within Cyclone, a 6.7% increase over previous estimates within DRX ground.
The company expects that the conversion rate of the resource to reserves will be high due to the approach adopted by DRX personnel and knowledge gained by prefeasibility work.
The deposit is "shaping as a significant new Zircon development project," when combined with the JORC resource announced by Image Resources in July 2010 over their neighbouring Cyclone Extended Deposit.
Recent MOU's entered into with the BaoTi Group and Image Resources are positive indications that the Cyclone Deposit is attracting both local and overseas interest.
The high percentages of these minerals within Cyclone (and Cyclone Extended) are significant for future development and market infiltration, as the current upturn in zircon and rutile prices expected to continue.
Prices for Zircon are at record highs and the market conditions are entering a period wherein the current producers are finding it difficult to meet consumer demands, as there is a shortage of developed/developing zircon producing mines throughout the world.
Diatreme said Cyclone represents potential for new, long-term, HM supply source for both Australian and overseas industries and good exploration potential remains for the confirmation of further HM resources in nearby areas.