An updated ore reserve for the DeGrussa mine, in Western Australia, has extended the copper/gold operation’s mine life to mid-2022, ASX-listed Sandfire Resources reported on Friday.
The company’s latest reserve and mineral resource update for DeGrussa includes the Conductor 1, Conductor 4 and Conductor 5 deposits, as well as the Monty mine.
Resource definition drilling in Conductor 5 and subsequent orebody remodelling resulted in an overall increase in underground ore reserves of 0.4-million tonnes and 2 000 t of contained copper. After accounting for yearly depletion of about 1.6-million tonnes, the mine life is supported for another two years.
Sandfire said that grade control drilling was under way at Monty with three underground diamond drill rigs operating. Its mineral resource and ore reserves would be updated in the second half of the year.
“This is a positive outcome which reflects our continued success in replacing ore reserves and identifying extensions of some of the key VMS lenses at DeGrussa,” said MD Karl Simich.
“Meanwhile, with the successful recent introduction of high-grade ore from the Monty mine, we are expecting a strong finish to the 2019 financial year, with copper production tracking to hit or exceed the upper end of our guidance range at 68 000 t of contained copper. As Monty mining rates continue to ramp up into next year we will see the head grade increase and further boost copper production and cash flow,” he added.