PERTH (miningweekly.com) – A scoping study into ASX-listed Sheffield Resource’s Thunderbird mineral sands deposit, in Western Australia, has revealed that the project could have an initial mine-life of about 32 years.

Based on the current resource of 2.62-billion tonnes, grading 6.5% heavy mineral sands, for 170-million tonnes of contained heavy mineral sands, the project could, on average, deliver 118 200 t/y of zircon, 545 000 t/y of ilmenite and 21 700 t/y of rutile and leucoxene.

Sheffield MD Bruce McQuitty said on Monday that the scoping study demonstrated exceptional financial returns for Thunderbird over a long mine life, which underlined the project’s world-class status.

“The scoping study has demonstrated Thunderbird has the potential to generate consistently strong cash margins from globally significant levels of production, over a 32-year mine life.

“At the current modelled production rates, Thunderbird will supply around 8% and 4% of the global zircon and ilmenite markets, respectively. Furthermore, the large-scale and favourable geometry of the deposit are conducive to significant production expansion,” he said.

With a preproduction capital expenditure of about A$257-million, plus a A$37-million contingency, Thunderbird was expected to deliver an operating cash flow of about A$5-billion over the project life, and an annual earnings before interest, tax, depreciation and amortisation of A$140-million.

“The strong life-of-mine cash flows are supported by a 30% higher cash flow in the first ten years of operations, advantaging estimated capital payback and project financing,” said McQuitty.

He added that Sheffield had now launched a prefeasibility study on Thunderbird, during which time the company would look to enhance the project margins and reduce the development capital requirements.

“We look forward to progressing towards the development of the project, targeting an initial production in 2017.”