Name of the Project
Motheo processing plant expansion.

Location
Botswana.

Project Owner/s
Sandfire Resources.

Project Description
A prefeasibility study (PFS) has confirmed the strong business case for the development of the Motheo project’s A4 deposit as part of the expanded 5.2-million-tonne-a-year Motheo production hub strategy.

The A4 deposit has estimated openpit ore reserves of 9.7-million tonnes grading 1.2% copper and 18 g/t silver.

The A4 PFS outlines the first additional satellite deposit to the Motheo copper mine, expanding plant production from 3.2-million tonnes a year to 5.2-million tonnes a year over its five-year mine life. Estimated copper production contained in concentrate over the life of the A4 openpit is estimated at 105 000 t.

Mine facilities include surface mining operations at the A4 deposit, expansion of the processing plant and supporting infrastructure.

The project has a total mine life of 12.5 years.

Potential Job Creation
Sandfire reported in August 2022 that there were more than 1 700 personnel on site.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $682-million and an internal rate of return of 36%, with a payback of 2.9 years from the start of production.

Capital Expenditure
Total preproduction development capital has increased to $366-million, incorporating the development costs for the A4 openpit and an updated cost forecast for the Motheo plant to account for increased steel costs, foreign exchange movements and Covid-19-related disruptions.

Planned Start/End Date
Motheo produced its first copper concentrate in May 2023 and reached commercial production 45 days later.

Latest Developments
Sandfire Resources has completed a $60-million uplift to the Motheo finance facility, from $140-million to $200-million to support the expansion of the project.

The finance facility will maintain the company’s overall seven-year tenure to June 2029, with the usual conditions precedent to be satisfied ahead of the first drawdown in the coming weeks.

“The uplift of the Motheo finance facility highlights the confidence that our international banking syndicate has in the Motheo operations, and we appreciate their support,” Sandfire CEO and MD Brendan Harris has said.

Harris has said that it expects to build concentrate stocks through the value chain over the course of this financial year as it ramps up operations, with about 34 000 t of payable copper sales anticipated.

The company plans to test an open extension of the high-grade A4 deposit and undertake a medium-density drilling programme of the newly discovered A1 mineralised zone with the objective of identifying a maiden mineral resource. Sandfire will also test several other targets within economic distance of the Motheo processing facility.

Key Contracts, Suppliers and Consultants
African Mining Services (delivery of all surface mining services associated with the development and production activities at the A4 openpit).

Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800.