Name of the Project
Motheo processing plant expansion.

Location
Botswana.

Project Owner/s
Sandfire Resources.

Project Description
A prefeasibility study (PFS) has confirmed the strong business case for development of the Motheo project’s A4 deposit as part of the expanded 5.2-million-tonne-a-year Motheo production hub strategy.

The A4 deposit has estimated openpit ore reserves of 9.7-million tonnes grading 1.2% copper and 18 g/t silver.

The A4 PFS outlines the first additional satellite deposit to the Motheo copper mine, expanding plant production from 3.2-million tonnes a year to 5.2-million tonnes a year over its five-year mine life. Estimated copper production contained in concentrate over the life of the A4 openpit is estimated at 105 000 t.

Mine facilities include surface mining operations at the A4 deposit, expansion of the processing plant and supporting infrastructure.

The Motheo project has a total mine life of 10.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $682-million and an internal rate of return of 36%, with a payback of 2.9 years from the start of production.

Capital Expenditure
Total preproduction development capital has increased to $366-million, incorporating development costs for the A4 openpit and an updated cost forecast for the Motheo plant to account for increased steel costs, foreign exchange movements and Covid-related disruptions.

Planned Start/End Date
Subject to the granting of the mining licence for A4 and the timing of the award of contracts, site construction activities are scheduled to start in the first quarter of the 2023 financial year. Following construction and plant expansion commissioning, first copper concentrate production is expected in the first quarter of the 2025 financial year, 24 months from the start of site works.

Latest Developments
Opportunities have been identified to further enhance the economic and technical outcomes of the A4 PFS through integrated mine scheduling and pit optimisation, with these enhancements to be incorporated into the definitive feasibility study (DFS) for the 5.2-million-tonne-a-year expansion case.

Work programmes to support the Motheo expansion DFS are well under way, with significant work advanced on areas such as environmental studies and approvals, metallurgical testwork, geotechnical drilling and analysis, groundwater drilling, mine scheduling and openpit optimisation.

 This work has identified areas for further optimisation, including combined T3 and A4 openpit scheduling and refined geotechnical parameters, which may result in a lower strip ratio for the A4 openpit and potentially bringing forward A4 ore production.

The 5.2-million-tonne-a-year expansion case DFS is scheduled to be completed in the third quarter of the 2022 financial year.

Key critical path items for the expansion include the environmental- and social-impact assessment and mining licence approvals; they are being fast-tracked.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800.