PERTH (miningweekly.com) – ASX-listed Sheffield Resources on Thursday revealed that its Thunderbird mineral sands project, in Western Australia, would require an investment of some A$367-million to develop.
A prefeasibility study (PFS) estimated that the Thunderbird project would produce an average of 114 000 t/y of zircon, 439 000 t/y of ilmenite and 30 000 t/y of leucoxene, over a mine life of 32 years.
The study was based on a mineral resource of 3.2-billion tonnes, grading 6.8% heavy minerals for 19.3-million tonnes of zircon, 61.1-million tonnes of ilmenite and eight-million tonnes of leucoxene.
The project would generate an estimated life-of-mine revenue of A$9.5-billion, and an average yearly earnings before interest, taxes, depreciation and amortization of A$120-million.
Sheffield MD Bruce McQuitty said on Thursday that one of the aspects that set Thunderbird apart from other mineral sands projects globally, was the substantial projected yearly production of zircon. “The project is highly leveraged to the zircon price and with few major new zircon projects in the global development pipeline, Sheffield is well placed to meet future demand.”
McQuitty also pointed out that the project was located in a stable jurisdiction, and was well placed to take advantage of supply gaps that were aligned with initial planned production.
A definitive feasibility study for the Thunderbird project was planned for 2016, followed by mine construction in 2017. Commissioning work was expected in 2018 and the first full year of production was targeted for 2019.