Sandfire Resources Limited
Sandfire Resources Limited
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With construction of the new Monty copper-gold mine getting under way just 10km away, Sandfire's DeGrussa mine in Western Australia has met guidance with contained metal production of 67,088t copper and 38,623oz gold for the year to end-June (FY17), compared to 68,202t Cu and 37,612oz Au in FY16. C1 cash costs for the year were $US0.93/lb (FY16: $0.95/lb).
FY18 forecast production is 63,000-66,000t Cu and 35,000-38,000oz at $1.00-1.05/lb.
West Australian miner Sandfire's plan to link forces with neighbour Thundelarra to explore the Red Bore project adjoining its DeGrussa copper-gold mine in the Doolgunna region has been dashed after Thundelarra's existing 10% JV partner, private owner William Richmond, exercised his pre-emptive right.
Richmond has paid $A1.65M cash and can earn up to a further 75% interest by funding $1.5M exploration and defining a 30,000t copper equivalent resource.
Sandfire is ready to commence ground-breaking and mining activities at its $A90M Monty copper-gold project with the receipt of mining and mine closure approvals from the West Australian authorities.
The Yagahong Alliance of Central Earthmoving and the area's Yugunga-Nya traditional owners will begin construction of the 14km haul road to Sandfire's DeGrussa copper-gold mine and the box-cut.
It will move on to cutting the decline portal in the Dec qtr, aiming to access first ore in about a year.
West Australian companies Thundelarra and Sandfire have joined forces to accelerate exploration on Thundelarra's Red Bore project, which adjoins Sandfire's DeGrussa copper-gold mine in the Doolgunna region.
Sandfire will issue $A1.5M in shares to Thundelarra and spend at least $1.5M on exploration over 18 months, to earn 75% interest in the project by defining at least 30,000t of Cu/CuEq JORC resources.
West Australian miner Sandfire has confirmed the first major contract for the $A90M Monty underground copper-gold development, appointing indigenous partnership Yagahong Alliance to undertake $8.2M civil construction and earthworks.
Yagahong, a JV of leading civil contractor Central Earthmoving and the Yugunga-Nya People, will construct a 14km haul road from Monty to Sandfire's DeGrussa processing plant plus local access roads, stockpile and laydown area pads, box-cut and infrastructure earthworks and drainage.
Talisman is set to cover its 30% share of forecast pre-production costs for development of the Monty underground copper-gold project in Western Australia after mandating Taurus Mining Finance Fund to provide about $A23M debt finance facilities.
The company and 70% partner Sandfire Resources plan first production at Monty in the Dec 2018 qtr, with Sandfire committed to purchase Talisman's share of production for processing at its DeGrussa plant 10km away.
Sandfire is maintaining its FY17 production guidance for the DeGrussa mine in Western Australia after posting March qtr (Q3FY17) production of 16,256t copper and 8,988oz gold at C1 cost of $US0.94/lb, down from 18,130t Cu and 10,183oz Au at $0.81/lb in Q2. Mill throughput was impacted by planned shutdowns to reline the SAG mill and other works in Jan and a full plant maintenance in March.
Underground decline development and primary ventilation system is largely complete, the main underground pump station is targeted for completion in the June qtr.
Minority JV partner Talisman is confident of finalising debt finance soon for all its 30% share of the $A72M pre-production capital cost of the Monty copper-gold project in Western Australia. The company's share of Monty's LOM production equates to 20,000t payable copper.
A feasibility study has confirmed the high-grade Monty copper-gold project as a major satellite contributor to Sandfire Resources' DeGrussa mine in the Doolgunna Region of Western Australia. John Feary reports
It's not quite the full monty, but Sandfire's FS has confirmed the suitability of its Monty copper-gold project as a satellite producer of high-grade feed for its DeGrussa mine in Western Australia.
The study outlines total contained metal production of 70,000t copper, 21,000oz gold, 288,00oz silver over 3 years after pre-production outlay of $A72M. Sandfire, which is purchasing JV partner Talisman Mining's 30% of production, says the DeGrussa concentrator will be expanded to 400,000tpa to cater for the Monty ore.