Name of the Project
Thunderbird mineral sands project.

Location
The project is located near Derby, in Western Australia.

Client
Sheffield Resources.

Project Description
A bankable feasibility study (BFS) on the project has demonstrated it to be financially robust and technically strong project with a 42-year mine life. The BFS is underpinned by one of the world’s largest and highest-grade zircon- and ilmenite-rich mineral sands ore reserves, totalling 680.5-million tonnes grading 11.3% in heavy minerals.

The BFS is based on a conventional dozer trap mineral sands mining and processing operation, involving an initial 8.5-million-tonnes-a-year throughput (single mining unit), doubling to 17-million tonnes a year in Year 5 through the addition of a second mining unit and processing stream.

The first stage of the project is expected to produce more than 500 000 t/y of saleable product and the second stage more than one-million tonnes of saleable product a year with a life-of-mine average of about 800 000 t/y.

Over its 42-year mine life, the project is expected to deliver an estimated 76 1000 t/y of premium zircon, 68 500 t/y of zircon concentrate, 387 800 t/y of ilmenite and 229 800 t/y of titanomagnetite.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 10% discount rate, of A$676-million and an internal rate of return of 25%.

Value
Stage 1 capital has been estimated at A$324-million and Stage 2 at A$195-million.

Duration
Initial production from the mine is targeted for 2019. The first stage is expected to start in 2019 and end in 2023. Stage 2 is expected to start in 2024.

Latest Developments
The BFS has confirmed the technical viability and robust economics of the Thunderbird project, paving the way for development.

Sheffield has advanced the permitting process, offtake negotiations and funding arrangements in parallel with the BFS and expects these to be finalised this year.

During the preparation of the BFS, Sheffield identified an opportunity to expedite the project construction timeline by accelerating the construction tender process with the inclusion of engineering, procurement and construction and build, own and operate bids.

While subject to final negotiation, this process has expedited the tendering route by several months.

Permitting, offtake and mine construction are scheduled to start in the fourth quarter of 2017, subject to financing.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sheffield Resources, tel +61 8 6555 8777, fax +61 8 6555 8787 or email info@sheffieldresources.com.au.