Name of the Project
Monty copper/gold project.

Location
Western Australia.

Client
The Monty project is part of the Springfield Unincorporated Joint Venture, which comprises participating interests of Sandfire (as manager, with a 70% interest) and Talisman Mining (30%).

Sandfire has agreed to acquire Talisman’s 30% share of Monty ore under an ore sale and purchase agreement, with all the ore from the Monty project to be processed at the De Grussa processing plant.

Project Description
A feasibility study on the Monty project has confirmed its suitability to be developed as a satellite source of high-grade ore feed for the existing DeGrussa operation.

The project has a maiden ore reserve of 920 000 t grading 8.7% copper and 1.4 g/t gold.

The project has indicated and inferred mineral resources of 1.05-million tonnes grading 9.4% copper and 1.6 g/t gold and includes a high-grade massive sulphide component of 763 000 t grading 12.1% copper and 2.1g/t gold for 92 000 t of contained copper and 52 000 oz of contained gold.

The mine plan incorporates the mining of the lower zone, which is the higher-grade portion of the ore reserve. 

The upper zone, while marginally economic, will be subject to further technical and economic assessment. 

The feasibility study envisages the development of an underground mine, using long-hole open stoping with backfill, with a maximum planned mining rate of about 400 000 t/y.

Total mined and milled ore is estimated at 239 000 t, containing total copper-in-ore of 22 300 t, gold-in-ore of 11 500 oz and total silver-in-ore of 124 000 oz.

Mined ore will be hauled to the surface run-of-mine pad and transported to DeGrussa by road.

The project will have a mine life of 30 months.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$46-million and an internal rate of return of 78%, with a payback from first production of 18 months.

Value
Preproduction capital cost is estimated at A$22-million.

Duration
Targeted first production from Monty is expected in the fourth quarter if 2018.

Latest Developments
Since the start of ground-breaking activities in July 2017, site activities at the Monty project have been ramped up considerably; on time and within budget.

Infrastructure works completed to date include bulk earthworks and civil; opening the boxcut, the construction of the 10 km haul road and water pipeline from Monty to Sandfire’s DeGrussa copper/gold mine and site infrastructure being erected.

Further, underground mining contractor, Byrnecut Australia, continues to make good progress on Monty development and, at the end of December, the decline had advanced to 346 m, which was ahead of schedule compared with the corresponding feasibility study budget of 286 m.

Total development advance, including the decline, was 550 m, compared with the corresponding feasibility study budget of 440 m. First ore production remains on schedule for early in the fourth quarter.

Other development works continue to be advanced on schedule and under or on budget, including site office buildings, power station installation and reticulation, fuel storage facility, installation of site communications, ore haulage contracts and installation of permanent underground ventilation.

Key Contract and Suppliers
None stated.

On Budget and on Time?
Yes.

Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800, fax +61 8 8430 3849 or email admin@sandfire.com.