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
Sheffield Resources has signed a maiden ilmenite offtake agreement for its Thunderbird project.

The five-year agreement with Bengbu Zhongheng New Materials will result in the company’s supplying 150 000 t/y of ilmenite.

The offtake agreement represents about 50% of the estimated total volume of ilmenite produced from the Stage 1 operation at Thunderbird.

With the Bengbu offtake agreement in place, more than 75% of the Stage 1 forecast revenue has been contracted under binding offtake agreement covering 100% of the Stage 1 zircon products and 50% of the ilmenite.

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.