MINERAL sands explorer Australian Zircon has appointed an administrator a week after mothballing its key Mindarie mine in SA's Murray Basin.

Pitcher Partners Perth-based administrator Bryan Hughes said a creditors' meeting would be held next Wednesday, October 21, at the Hilton Adelaide at 3pm.

Australian Zircon had ``full support'' of its major shareholder, Austrian-based DCM DECOmetal GmbH, which was likely to underwrite a future recapitalisation.

"We're really looking at this as a Chapter 11 process and hope to recapitalise through, probably, a rights issue,'' Mr Hughes said.

The voluntary administration process would take between three to five months for creditor approvals, before the company's shares began trading again on the Australian Securities Exchange, he said.

Australian Zircon would continue its mineral separations plant in SA and was talking with third parties to have their ore processed through the facility.

Australian Zircon made a $15.8 million loss in the 2008 financial year, is yet to report its annual result for last year and shares have remained untraded since September 1.