Sandfire Resources Limited
Sandfire Resources Limited
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Explorer Intrepid Mines has signed to spend a minimum $A2.15M over 2-years to earn 70% of Ausgold’s Doolgunna Station Gold Project, 150km NE of Meekatharra in Western Australia.
Ausgold then can either retain a 30% contributing interest or revert to a 20% interest free-carried to decision to mine the project, which is 13km along trend from Sandfire Resources’ DeGrussa copper-gold operations.
West Australian miner Sandfire has extended the mine life of its DeGrussa project by a year to 2022 under an updated mine plan targeting 6.6Mt @ 5% for 332,000t contained copper and 1.7g/t for 354,000oz contained gold.
After March qtr (Q3FY18) production of 15,531t (Q2: 16,263t) Cu and 10,926oz (8,130oz) Au, Sandfire has lifted FY18 gold guidance to 38,000-40,000oz (previously 35,000-38,000oz). Copper guidance remains 63,000-66,000t.
Lower production costs and a rising copper price lift copper-gold revenue from Sandfire Resources’ DeGrussa mine in Western Australia to a record $A296.2M in the Dec 2017 half (H1 18) from H1 17’s $259.9M, despite lower copper-gold production, taking the after tax profit up 66% to $59.5M.
Copper down to 31,521t from 33,740t, gold down to 18,799oz from 19,914oz. C1 costs also down from $US1/lb to $0.92/lb. Copper sales down to 30,222t from 32,893t and gold to 18,504oz from 19,790oz.
Lower production costs and better copper prices have seen Sandfire Resources overcome a fall in copper-gold production for an H1 18 profit up 66% to $59.5M
West Australian miner Sandfire has overcome an extensive plant maintenance shutdown to maintain production at its DeGrussa mine at 16,263t copper and 8,130oz gold for the Dec qtr (Q2FY18), compared to 15,258t Cu and 10,669oz Au in Q1. C1 costs were $US1.02/lb ($0.95/lb).
FY18 production guidance remains 63,000-66,000t Cu and 35,000-38,000oz Au at $1-1.05/lb.
Sandfire scheduled the final EIS and record of decision by end-2018 at its Monty project, on track for first production in Q2FY19.
Talisman has finalised a $US20M project debt deal with Taurus Mining Finance Fund to fully fund its 30% share of pre-production capital costs at the Monty underground copper-gold development in Western Australia's Bryah Basin.
The development by 70% partner Sandfire Resources is underway, with mining contractor Byrnecut working on the portal and decline with a target of first production in the Dec qtr 2018.
Sandfire will purchase Talisman's share of production for processing at its DeGrussa plant 10km away.
West Australian miner Sandfire is maintaining its production guidance for y/e June 2018 after posting Sept qtr (Q1 FY18) production at its DeGrussa mine, 900km NE of Perth, of 15,258t copper (Q4 FY17: 17,092t) and 10,669oz gold (9,721oz). C1 costs were steady at $US0.95/lb.
Its FY18 forecast is 63,000-66,000t Cu and 35,000-38,000oz Au at $1-1.05/lb.
Australian-based Sandfire could be a year away from construction approval at its 78%-owned Black Butte high-grade underground copper project in central Montana, USA after gaining its draft operating permit from the state's Hard Rock Mining Bureau.
The permit launches Black Butte's formal EIS process that will lead to a final record of decision.
Sandfire says Black Butte is one of the world’s premier undeveloped copper projects and a key part of its longer-term strategic growth pipeline.
Strong production and lower costs in a rising copper market have enabled West Australian miner Sandfire lift NPAT for the year to end-June to $A77.5M, up from $48M in FY16.
The DeGrussa copper-gold mine 900km NE of Perth generated revenue of $523.5M (FY16: $485.8M) from payable metal sales of 62,663t (65,832t) copper and 34,333oz (33,302oz) gold.
Western Australia copper-gold miner Sandfire Resources is stumping up another $C7.1M to take its potential stake in Tintina Resources and its flagship high grade underground Black Butte Copper Project in central Montana, US, to over 81.5%.