Sandfire Resources announces, on behalf of the Springfield Joint Venture (Sandfire: 70%; Talisman Mining 30%), the award of the first major contract for the development of the new Monty copper-gold mine in Western Australia. The contract, which has an estimated value of A$8.2 million, has been awarded to the Yagahong Alliance, a joint venture between the Geraldton-based earthmoving and civil contracting company Central Earthmoving and the Yugunga-Nya People, the traditional owners of the project area.
The contract includes:
- 14 km haul road from Monty to DeGrussa
- Local access roads
- Stockpile and laydown area pads
- Box-cut for underground access
- Infrastructure earthworks and drainage.
Development of the box-cut for the underground portal at the Monty mine is expected to commence in Q2 FY 2018, with other upcoming key milestones expected to include:
- Award of underground mining contract
- Award of power supply contract
- Remaining statutory approvals.
Sandfire’s Managing Director & CEO, Karl Simich, said the award of the first major contract for the Monty project to the Yagahong Alliance was a great opportunity to extend the strong working relationship between Sandfire and the Yugunga-Nya People through that alliance.
“We are glad to be able to continue to support the alliance between Centrals and Yugunga-Nya and in the process continue our Aboriginal engagement across the mining operation while also generating employment and opportunities for communities in the Midwest region,” he said. “We look forward to commencing the development of what will be the first new copper mine in the Bryah Basin since the development of DeGrussa six years ago.”
The feasibility study completed for the high-grade Monty copper-gold project confirmed its suitability to be developed as a satellite source of high-grade ore feed for the existing DeGrussa operation (pictured). Robust life-of-mine (LOM) study outcomes include:
- Mine Plan of 0.80 Mt grading 9.4% Cu and 1.5g/t Au
- Total contained metal production of 70,000 t copper, 21,000oz gold, 288,000oz silver
- Three-year production life following one year of access development
- Pre-production outlay of A$50 million (70% JV share) including project capital and pre-production costs.