Sandfire Advancing Its DeGrussa Project
Sandfire Resources has received conditional board approval to start development of
its 100%-owned DeGrussa copper-gold
mine on its Doolgunna project in Western
Australia. The approval is subject to completion of a definitive feasibility study and
arrangement of project funding, both of
which are expected to be in place before
the end of the second quarter of 2011.
Construction is expected to begin during
the third quarter.
The conditional approval enables the
letting of key mining and construction contracts, and Sandfire announced March 23,
2011, it signed a contract with Outotec for
purchase key of long-lead processing
equipment for a sum in excess of $20 million. The contract covers supply and delivery of the ball mill, SAG mill, flotation
cells, thickeners, and a concentrate filter
that will installed in the 1.5-million-mt/y
DeGrussa concentrator.
DeGrussa is located about 900 km
north of Perth and 150 km north of the
mining center of Meekatharra. The project
will be developed as an integrated open-
pit and underground mining operation,
with a conventional copper processing
facility and supporting infrastructure
located on site. Pre-production capital,
including contingencies, is estimated at
A$270 million for plant and infrastructure
and A$130 million for open-pit and
underground development.
The first two years of open-pit mining will
extract 151,000 mt of direct shipping ore,
grading 25.6% copper and 2.6 g/mt gold,
along with 3.58 million mt of oxide copper
resource grading 1.2% copper and 0.5 g/mt
gold. Chalcocite and massive sulphide material from the pit will be stockpiled.
A long-term underground mine will be
undertaken using long-hole open stoping
(both transverse and longitudinal), with
minor areas of jumbo cut and fill or up-hole
benching in some of the narrower areas.
Open stopes will be up to 50 m high by 25 m long by the orebody width (up to 40 m
but averaging 20 m), with the proposed
mining sequence aiming for maximum
extraction of the resource using paste fill.
The concentrator flowsheet includes
conventional crushing, milling, and classification circuits, followed by conventional
flotation, de-watering, and filtration.
Concentrate production is expected to
average 220,000 to 240,000 mt/y grading
27% copper and will be transported by
road to Port Hedland for export to international customers. Payable metal contained
in concentrate will total about 60,000 to
70,000 mt/y copper and 40,000 to
45,000 oz/y gold.
As featured in Womp 2011 Vol 03 - www.womp-int.com