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 mine life, the project is expected to deliver an estimated 761 000 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
The Thunderbird mineral sands project has been granted environmental approval by the Western Australian Minister of Environment.

The Minister has dismissed all appeals on the Works Approval and the majority of the appeals on the ‘Environmental Protection Authority Report’, which was published in October last year.

“This is a great outcome for our shareholders and the local Kimberley communities and is another significant step towards the development of Thunderbird Sheffield’” MD Bruce McFadzean has said.

“We look forward to finalising the state consultation process over the coming weeks before concluding the federal environment approval, which is expected early in the third quarter of 2018.”

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.