Alkane Resources has contracted international engineering group Hatch to provide front end engineering and design works for its Dubbo zirconia project.
The work provided by Hatch will give Alkane capital and operating cost estimates for the project.
Alkane said completion of the FEED would give it a core estimate to use for its bankable feasibility study, which will also include updated marketing and financial information.
The FEED is expected to be complete by the fourth quarter of this year.
“Work packages will be completed over the duration of the contract, steadily increasing the accuracy of the estimate from DFS level and enabling the project to proceed to the construction phase on receipt of development approval and financing,” Alkane said in a statement.
The Dubbo Zirconia project is located in the central west region of New South Wales.
It is considered to be a world-class zirconia deposit, with Alkane aiming to be a significant producer of zirconium products and heavy rare earths.
At close of trade today, Alkane shares had gained nearly 9 per cent, trading at 32 cents.
