ASX-listed Matilda Zircon on Tuesday reported that it had secured a full mining lease for its Lethbridge South mineral sands project, from the Northern Territory Department of Minerals and Energy.

The mining lease would be valid for the next 25 years, and represented the final regulatory requirement for the Lethbridge South project, Matilda said. The company was now fully permitted to start mining.

Chairperson Mal Randall said in a statement that this was an exciting step forward for the company, especially in the light of recent zircon prices.

All roads, tailings dams, power and site facilities were completed in readiness for mining, and Randall said that Matilda was working expeditiously to restore processing capacity and, therefore, zircon concentrate production, on Melville Island.

In May, Matilda re-optimised the mine plan for the Lethbridge South mine, after zircon prices continued to climb.

The miner said at the time that the higher prices have allowed it to lower the cut-off grade for the Lethbridge South mine, which has led to a 22% jump in reserves, up to 28 650 t of heavy minerals, from the previous estimate of 23 480 t.

With the increasing prices, sales revenue was also expected to increase.