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Gunson Resources appoints Bryan Oliver to the board

Published: 16:17 11 Apr 2011 AEST

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Gunson Resources (ASX: GUN) has appointed the experienced Bryan Oliver to the board, as a non-executive director.

Oliver brings additional new mine developments and existing operations expertise, as Gunson moves towards the development of the company's Coburn Zircon Project.

Gunson received some great news for Coburn earlier in the year, with the 21.2% jump in pre-tax internal rate of return in a Project Definitive Feasibility Study due to using new price forecasts for the price of zircon and titanium minerals.

This figure is based on the Australian and United States dollars at parity, and assumes a drop in the royalty rate to 2.5% from the current 5%.

Gunson considers there is a strong case for the royalty reduction as the new Iluka Resources (ASX: ILU) Eucla Basin mineral sands mine in South Australia is only paying a 1.5% gross royalty for the first five years.

Gunson said the current Western Australian state royalty regime provides no incentive for heavy mineral sand producers to refine their concentrates to final mineral product, as the royalty for both is the same, at 5%.

This is in contrast to the lower 2.5% incentive rate provided to base metal concentrate producers to produce a final metal product.

The project covers 1200 square kilometres of a fossil coastline which has the potential to host a world class heavy mineral sand field.

 

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