Name of the Project
T3 (Motheo) copper/silver project.

Location
Ghanzi, in Botswana.

Project Owner/s
Motheo is held through Sandfire Resources subsidiary, Tshukudu Metals.

Project Description
The T3 project feasibility study has presented compelling results.

The project is based on the T3 resource, and the T3 openpit is modelled on the T3 ore reserve. The project has a probable ore reserve of 39.9-million tonnes at 0.9% copper and 12.2 g/t silver for 360 000 t of contained copper metal and 15.6-million ounces of contained silver.

The openpit project has a 12.5-year mine life, with average production of about 30 000 t/y of copper and 1.2-million ounces of silver.

Ore will be processed through a conventional process plant with a yearly throughput of up to 3.2-million tonnes at a head grade of 1% copper and 13.2 g/t silver. The flowsheet includes a primary crusher/semiautogenous grinding/ball mill comminution circuit to achieve a grind size of P80 180 µm, a natural pH flotation circuit, a rougher flotation with a regrind circuit to achieve a grind size of P80 90 μm, and a cleaner flotation circuit.

The possibility to expand the project to 5.2-million tonnes has also been proposed. The immediate and most advanced expansion opportunity for the expanded production hub is the A4 deposit, located 8 km west from T3.

Potential Job Creation
The Motheo development will generate about 1 000 jobs during construction and 600 full-time jobs during operations.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $316-million and an internal rate of return of 25%, with a payback of 3.8 years from the start of production.

Capital Expenditure
Capital expenditure is estimated at $259-million. This includes mining prestrip, process plant construction, site infrastructure development, tailings storage, owner’s costs and contingency.

An additional $20-million has also been approved for capital works to support the rapid future expansion of the T3 Motheo plant to 5.2-million tonnes a year.

Planned Start/End Date
Mining is expected to start in early 2022, and first production is targeted for early 2023.

Latest Developments
Construction of the Motheo mine is ramping up, with the delivery of a maiden ore reserve for the satellite A4 deposit and the completion of a positive prefeasibility study (PFS) for the 5.2-million-tonne-a-year ‘expansion case’ at Motheo.

“The PFS indicated that an expanded 5.2-million-tonne-a-year project development would deliver a positive uplift in the project’s overall economic credentials, including an 88% increase in pretax net cash flow to $1.24-billion.

With these results, Sandfire plans to proceed immediately to a definitive feasibility study (DFS) for the 5.2-million-tonne-a-year expansion case, with the intention of blending high-grade ore from the A4 openpit with baseload feed from the T3 openpit.

The details of the DFS are expected to be announced in the first quarter of the 2022. 

Key Contracts, Suppliers and Consultants
Loci Environmental (environmental consultant); Lycopodium (Motheo process plant engineering and associated infrastructure definitive feasibility study for the copper concentrate treatment plant, and engineering and procurement services) and African Mining Services (openpit mining contract).

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