Sandfire Resources has extended the mine life of the DeGrussa copper-gold operation in Western Australia.
The Perth-based company today updated the operation’s mine plan, mineral resource and ore reserve, including outcomes of a review of unconverted measured and indicated resources in technically and economically assessed zones, resulting in their conversion to ore reserves.
This, together with an upgrade to the mineral resource at the Conductor 5 deposit, has added around 1.3Mt of copper, at 3.5 per cent grading, for 46,000t of copper to the DeGrussa reserve.
DeGrussa’s mine life has been extended to early-2022, from the previous 2021 outlook, with the upgrades. The updated mine plan, incorporating the near-by Monty mine, now totals 6.6Mt, at grading 5 per cent copper and 1.6g/t gold, for 332,000t of contained copper and 354,000oz of contained gold.
Sandfire managing director Karl Simich said the updated mine plan and ore reserves reflected the success of diligent work programs completed over the past 6–12 months to re-evaluate key zones of mineralisation within the broader DeGrussa underground mineral resource inventory.
“This work has been undertaken with the aid of improved technical understanding and increased drilling within many of these areas and against the backdrop of continued strength and the strong outlook for the copper market,” Simich said.
“The conversion of a material component of our broader mineral resource inventory to ore reserves means that our overall mine plan underpins a mine life which now extends into 2022.
“This is a great result which puts us in a very strong position to continue to take full advantage of the current and anticipated strength in the copper market.”
Sandfire produced 15,531t of copper and 10,926oz of gold in the March quarter. The company is also making progress on the development of the Monty project, with first ore on track to be delivered in the second quarter of the 2019 financial year.
Simich added Sandfire was continuing to pursue an aggressive exploration campaign across the Greater Doolgunna district, where it has expanded its footprint to over 6600 square kilometres through a farm-in agreement with Auris Minerals.
“A discovery anywhere within this belt will add further value to what we already have at DeGrussa and Monty,” he said.