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) has demonstrated a 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.

Potential Job Creation
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
Sheffield Resources has mandated Taurus Mining Finance Fund to arrange for a $200-million debt facility to support the development of the Thunderbird project.

Taurus has agreed to arrange and underwrite a $200-million project development facility, comprising a $175-million term loan facility and a $25-million contingent instrument facility.

Additionally, a $10-million unsecured equity bridge loan facility is also available to advance project development activities.

Sheffield has received significant interest and responses from a variety of banks and debt investors over the past few months.

The funding facility provides Sheffield with $200-million in underwritten funding, without equity dilution, but with a reasonable cost structure and a seven-year tenor.

Sheffield is now strongly positioned to advance Thunderbird towards development.

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.