Name of the Project
Monty copper/gold project.

Location
Australia.

Client
Springfield Unincorporated Joint Venture, comprising Sandfire Resources (70%) and Talisman Mining (30%).

Project Description
Maiden Joint Ore Reserves Committee 2012-compliant indicated and inferred resources of 1.05-million tonnes grading 9.4% tungsten and 1.6 g/t gold was completed for the Monty copper/gold volcanic massive sulphide deposit in April, providing the foundation for a potential new satellite mining operation, located 10 km east of the DeGrussa copper/gold project.

A recent high-level study completed on the project has determined that there are no fatal flaws. It has identified the preferred location of surface infrastructure, including the boxcut and decline entrance portal.

Owing to the proximity of Monty to the existing DeGrussa mine, it is envisaged that a number of mining administrative and support services will be provided by the existing mining and infrastructure services and facilities at DeGrussa.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
To be determined.

Value
To be determined.

Duration
To be determined.

Latest Developments
Sandfire has submitted a mining lease application to the Department of Mines and Petroleum of Western Australia for the Monty project.

The mining lease application process will be progressed in parallel with consultations and negotiations with relevant stakeholders and preparations for future mining activities.

Meanwhile, Sandfire has started a feasibility study on the project for which several work streams are in progress, including:
• metallurgical testwork, with a specific focus on communition and flotation testwork;
• geotechnical and structural geology studies;
• mine design engineering, with stoping, ore access and ventilation work under way;
• a preferred boxcut location, with follow-up geotechnical drilling to start shortly; and
• a proposed overhaul route between the DeGrussa and Monty operations, with design work to follow.

In parallel with the feasibility study, negotiations are continuing to progress formal agreements between Sandfire and Talisman pertaining to the Monty project’s construction and mining activities, as well as potential ore process routes and terms.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800, fax +61 8 6430 3849 or email admin@sandfire.com.au.