Name and Location
Sembehun dry mine project, Sierra Leone.

Client
Sierra Rutile.

Project Description
A prefeasibility study (PFS) undertaken on the Sembehun dry mine project has provided further certainty that it is value-enhancing and capital efficient. The PFS supports reduced levels of capital expenditure, a shorter lead time and improved economic returns.

The aim is to extend the life and scope of operations at Sierra Rutile’s fully permitted Sembehun group of deposits.

The mine will consist of two separate 500 t/h concentrator plants.

The PFS supports economic dry mining of a significant resource base totalling 3.6-million tonnes of contained rutile at an average in situ grade of 0.98%.

The projected life-of-mine is expected to be 21 years. The mine is expected to contribute an average of 71 000 t/y of rutile as a 1 000 t/h operation.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $224-million for a 1 000 t/h operation and an internal rate of return of 66%.

Value
The cost of the project is estimated at $72-million for the first 500 t/h unit.

Total capital for a 1 000 t/h operation is estimated at $99-million. The operation retains flexibility to accelerate ramp-up by building two 500 t/h units concurrently, gaining further capital efficiencies.

Duration
The PFS expects Sembehun to be developed in 15 months, with production starting after 12 months.

Latest Developments
Sierra Rutile will now focus on further detailed value engineering, specifically focused on operational flexibility, capital cost reductions and operating cost optimisations.

Key Contracts and Suppliers
DRA Projects (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sierra Rutile investor relations, email investors@sierra-rutile.com.
DRA Global, tel +27 11 202 8600 or email info@DRAglobal.com.