SANDFIRE RESOURCES LIMITED 30 May 2017
ASX Limited
Level 40, Central Park
152-158 St George's Terrace Perth WA 6000
I am pleased to attach the following items for immediate release to the market:
DeGrussa Mine Plan, Ore Reserve and Mineral Resource Update; and
Resources Rising Stars Presentation. Yours sincerely,
Level 1, 31 Ventnor Avenue | PO BOX 1495 | T | +61 8 6430 3800 | |
WEST PERTH WA 6005 AUSTRALIA | WEST PERTH WA 6005 |
| F | +61 8 6430 3849 |
ABN 55 105 154 185 | www.sandfire.com.au | E | admin@sandfire.com.au |
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Updated Mine Plan, incorporating the Monty Mine and OSPA (100% basis):
Total 7.0Mt grading 5.1% Cu and 1.6g/t Au for 359,000t of contained copper and 368,000oz of contained gold;
DeGrussa's 1.6Mtpa concentrator to be fed from DeGrussa at 1.2-1.3Mtpa from mid-
CY2019 to allow ore from Monty to be blended in at a rate of 0.3-0.4Mtpa; and
Sandfire will purchase Talisman Mining Limited's ("TLM") 30% share of the Monty JV ore under an Ore Sale and Purchase Agreement (OSPA).
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Updated Underground Ore Reserve, incorporating the Monty Mine (70% basis):
6.8Mt grading 5.0% Cu and 1.6g/t Au for 337,000t of contained copper and 355,000oz of contained gold (including UG ore on surface stockpiles); and
Updated DeGrussa Ore Reserve based on underground mining depletion and mining modifying factors.
- Open Pit Ore Reserve:
o 2.8Mt grading 1.2% Cu and 1.0g/t Au for 35,000t of contained copper and 84,000oz of contained gold (copper oxide ore stockpiled at surface).
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Updated Underground Mineral Resource, incorporating the Monty Mine (70% basis):
7.2Mt grading 6.0% Cu and 1.9g/t Au for 434,000t of contained copper and 450,000oz of contained gold; and
Updated DeGrussa Mineral Resource based on mining depletion, sterilisation and resource definition drilling.
Sandfire Resources NL (ASX: SFR, "Sandfire") is pleased to announce an updated Mine Plan, Mineral Resource and Ore Reserve for the 1.6Mtpa DeGrussa Copper-Gold Mine.
The updated Mine Plan, Mineral Resource and Ore Reserve includes the DeGrussa, Conductor 1, Conductor 4 and Conductor 5 lenses at DeGrussa as well as the Monty deposit (70% SFR: 30% TLM under the Springfield JV). These deposits underpin the mine life of the DeGrussa operation through until CY2021.
Figure 1 - Monty Copper-Gold Project Location (WA)
Table 1 and Table 2 summarises a combined DeGrussa and Monty Mine Plan, Ore Reserve and Mineral Resource by mining tonnes, key output and orebody (refer Appendix 1 and 2 for full details of the Ore Reserve and Mineral Resource).
Table 1 - DeGrussa and Monty Mine Plan, Ore Reserve and Mineral ResourceDeGrussa and Monty | Tonnes (Mt) | Copper (%) | Gold (g/t) | Contained Copper (t) | Contained Gold (oz) | Monty basis |
Mine Plan** | 7.0 | 5.1 | 1.6 | 359,000 | 368,000 | 100% |
Ore Reserve** | 9.5 | 3.9 | 1.4 | 372,000 | 439,000 | 70% |
Mineral Resource* | 10.1 | 4.6 | 1.6 | 469,000 | 539,000 | 70% |
DeGrussa and Monty | Tonnes (Mt) | Stockpiles (Mt) | DG (Mt) | C1 (Mt) | C4 (Mt) | C5 (Mt) | Monty (Mt) | Monty basis |
Mine Plan** | 7.0 | 0.1 | 0.6 | 2.2 | 1.8 | 1.6 | 0.8 | 100% |
Ore Reserve** | 9.5 | 2.9 | 0.6 | 2.1 | 1.7 | 1.6 | 0.6 | 70% |
Mineral Resource* | 10.1 | 3.0 | 0.5 | 2.5 | 1.8 | 1.6 | 0.7 | 70% |
Notes:
Calculations have been rounded to the nearest: 1,000t; 0.1% Cu grade; and 1,000t Cu metal and 0.1g/t Au grade; and 1,000oz Au metal. Differences may occur due to rounding.
* Mineral Resource for DeGrussa is based on a 1.0% Cu cut-off and allows for mining depletion and sterilisation as at 31 December 2016. Mineral Resource for Monty is based on a 1.0% Cu cut-off.
** Mine Plan and Ore Reserve include mining dilution and mining recovery
Mine PlanThe Mine Plan is Sandfire's internal plan which schedules forecasted production parameters, operating and capital works programs. It is developed with the assistance of both internal Sandfire employees and external consultants and includes both Mineral Resource and Ore Reserve. Table 3 summarises the underground mining and processing plans of the DeGrussa and Monty Mines.
Underground Mine | Tonnes (Mt) | Copper (%) | Gold (g/t) | Contained Copper (t) | Contained Gold (oz) |
DeGrussa | 6.2 | 4.6 | 1.6 | 286,000 | 330,000 |
Monty (100% basis) | 0.8 | 9.4 | 1.5 | 74,000 | 38,000 |
Total | 7.0 | 5.1 | 1.6 | 359,000 | 368,000 |
Monty is included in the Mine Plan on a 100% basis. Sandfire holds 70% of Monty under the unincorporated Springfield JV, and has entered into an Ore Sale and Purchase Agreement (OSPA) with Talisman Mining Limited to purchase its 30% of ore mined by the JV - refer Sandfire's ASX announcement "Positive Monty Feasibility Study Paves Way for Development of New High-Grade Copper Mine" released dated 6 April 2017.
The Company continues to incorporate Inferred Mineral Resources from portions of Conductor 1, Conductor 4 and Conductor 5 and Monty into its Mine Plan process due to the geological continuity and high copper grade tenor of these deposits.
A zone of mineralisation at DeGrussa associated with Conductor 5 adjacent to the Shiraz and Merlot Faults and the water-bearing dolomite unit has not been included in the Mineral Resource, Ore Reserve or Mine Plan. Further diamond drilling is required to assess the extent and nature of this mineralisation and the potential for mining. It is planned for this drilling to start in Q1 FY2018 following commissioning of a new underground pump system.
Production from the DeGrussa mine is currently sourced from Conductor 1, Conductor 4, Conductor 5 and DeGrussa. The Mine Plan confirms underground mine production continuing at the current rate of 1.6Mtpa until mid-CY2019, when it will progressively reduce to allow capacity for ore from Monty to be blended. This strategy will provide alignment of the production profiles of the two mines through to mid-2021.
Ore Reserve UpdateThe DeGrussa Ore Reserve has been updated based on the December 2016 Mineral Resource model, depletions and mining modifying factors as applicable up to 31 December 2016. Ore Reserves for Monty are as outlined in Sandfire's ASX announcement "Positive Monty Feasibility Study Paves Way for Development of New High-Grade Copper Mine" released dated 6 April 2017, with both summarised and combined in Table 4.
Table 4 - Ore ReserveDeGrussa Mine Ore Reserve | Tonnes (Mt) | Copper (%) | Gold (g/t) | Contained Copper (t) | Contained Gold (oz) |
Underground Mine (includes stockpiles) | 6.1 | 4.6 | 1.7 | 281,000 | 326,000 |
Stockpiles (Open Cut) | 2.8 | 1.2 | 1.0 | 35,000 | 84,000 |
December 2016 - Total | 8.9 | 3.6 | 1.4 | 316,000 | 410,000 |
Monty Mine Ore Reserve (70% basis) | Tonnes (Mt) | Copper (%) | Gold (g/t) | Contained Copper (t) | Contained Gold (oz) |
Underground Mine | 0.6 | 8.7 | 1.4 | 56,000 | 29,000 |
March 2017 - Total | 0.6 | 8.7 | 1.4 | 56,000 | 29,000 |
Total Ore Reserve | Tonnes (Mt) | Copper (%) | Gold (g/t) | Contained Copper (t) | Contained Gold (oz) |
Underground Mine (includes stockpiles) | 6.8 | 5.0 | 1.6 | 337,000 | 355,000 |
Stockpiles (Open Cut) | 2.8 | 1.2 | 1.0 | 35,000 | 84,000 |
Total | 9.5 | 3.9 | 1.4 | 372,000 | 439,000 |
The DeGrussa Mineral Resource has been updated as at 31 December 2016 based on mining depletions, sterilisation and resource definition drilling. Mineral Resources for Monty are as outlined in Sandfire's ASX announcement "Maiden High-Grade Mineral Resource for Monty VMS Deposit: 99,000t Copper and 55,000oz Gold" released dated 13 April 2016, with both summarised and combined in Table 5:
Sandfire Resources NL published this content on 30 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 May 2017 23:06:08 UTC.
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