Name of the Project
Thunderbird mineral sands project.

Location
The project is located near Derby, in Western Australia.

Client
Sheffield Resources.

Project Description
A bankable feasibility study (BFS) has demonstrated a financially robust and technically strong project with a 42-year mine life. The BFS is underpinned by one of the world’s largest and highest-grade zircon- and ilmenite-rich mineral sands ore reserves, totalling 680.5-million tonnes grading 11.3% in heavy minerals.

The BFS is based on a conventional dozer trap mineral sands mining and processing operation, involving an initial 8.5-million-tonnes-a-year throughput (single mining unit), doubling to 17-million tonnes a year in Year 5 through the addition of a second mining unit and processing stream.

The first stage of the project is expected to produce more than 500 000 t/y of saleable product and the second stage more than one-million tonnes of saleable product a year, with a life-of-mine average of about 800 000 t/y.

Over its mine life, the project is expected to deliver an estimated 761 000 t/y of premium zircon, 68 500 t/y of zircon concentrate, 387 800 t/y of ilmenite and 229 800 t/y of titanomagnetite.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 10% discount rate, of A$676-million and an internal rate of return of 25%.

Value
Stage 1 capital has been estimated at A$324-million and Stage 2 at A$195-million.

Duration
Initial production from the mine is targeted for 2019. The first stage is expected to start in 2019 and end in 2023. Stage 2 is expected to start in 2024.

Latest Developments
Sheffield Resources has signed its fifth binding offtake agreement for the future sale of premium zircon from the Thunderbird mineral sands project.

Qinqyuan Jinsheng ZR & TI Resources (Jinsheng) has agreed to a five-year minimum supply of 9 000 t/y of premium zircon, representing about 18% of the estimated total volume of premium zircon to be produced from Stage 1 of the mine.

The agreement with Jinsheng, a downstream processor of zircon materials into China boosts Sheffields’ total forecast revenue from Thunderbird under binding agreement to more than 60% of Stage 1 production, covering 93% of Stage 1 premium zircon production and 100% of the Stage 1 zircon concentrate product.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sheffield Resources, tel +61 8 6555 8777, fax +61 8 6555 8787 or email info@sheffieldresources.com.au.