Name of the Project
T3 (Motheo) copper/silver project.

Location
Ghanzi, in Botswana.

Project Owner/s
Motheo is held through Sandfire Resources subsidiary, Tshukudu Metals.

Project Description
The T3 project feasibility study has presented compelling results.

The project is based on the T3 resource, and the T3 openpit is modelled on the T3 ore reserve. The project has a probable ore reserve of 39.9-million tonnes at 0.9% copper and 12.2 g/t silver for 360 000 t of contained copper metal and 15.6-million ounces of contained silver.

The openpit project has a 12.5-year mine life, with average production of about 30 000 t/y of copper and 1.2-million ounces of silver.

Ore will be processed through a conventional process plant with a yearly throughput of up to 3.2-million tonnes at a head grade of 1% copper and 13.2 g/t silver. The flowsheet includes a primary crusher/semiautogenous grinding/ball mill comminution circuit to achieve a grind size of P80 180 µm, a natural pH flotation circuit, rougher flotation with a regrind circuit to achieve a grind size of P80 90μm and a cleaner flotation circuit.

The possibility to expand the project to 5.2-million tonnes has also been proposed. The immediate and most advanced expansion opportunity for the expanded production hub is the A4 deposit, located 8 km west from T3.

Potential Job Creation
The Motheo development will generate about 1 000 jobs during construction and 600 full-time jobs during operations.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $316-million and an internal rate of return of 25%, with a payback of 3.8 years from the start of production.

Capital Expenditure
Capital expenditure is estimated at $259-million. This includes mining prestrip, process plant construction, site infrastructure development, tailings storage, owner’s costs and contingency.

An additional $20-million has also been approved for capital works to support rapid future expansion of the T3 Motheo plant to 5.2-million tonnes a year.

Planned Start/End Date
Not stated.

Latest Developments
Sandfire Resources has awarded an openpit mining contract for the T3 pit at its Motheo copper project to African Mining Services, the surface mining business of mining services group Perenti Global.

The contract has an estimated value of $496-million, and is the biggest operational contract for the new Motheo project, covering seven years and three months, with the provision of a one-year extension.

Awarding the openpit mining contract marks another key milestone in the development of the Motheo project, which is one of the very few new copper projects of scale being developed anywhere in the world.

Under the terms of the mining contract, African Mining Services will partner with a suitable local company through a 70:30 joint venture – a structure that will generate a significant number of high-quality employment opportunities, as well as long-lasting social and economic benefits for local and regional communities.

“We expect that at least 95% of the workforce employed under this contract will be citizens of Botswana – a fantastic outcome for this new flagship project. In addition, this will provide a unique opportunity to leverage African Mining Services’ existing state-of-the-art mining training centre in Maun, providing the local workforce with access to world-leading mining techniques and technology,” Sandfire MD and CEO Karl Simich has said.

Full-scale construction of the mine development is expected to start immediately upon receipt of the mining licence, which is expected over the coming weeks, and the finalisation of the terms of the mining services contract, with mining scheduled to start in early 2022 ahead of first production in early 2023.

Key Contracts, Suppliers and Consultants
Loci Environmental (environmental consultant) and Lycopodium (Motheo process plant engineering and associated infrastructure definitive feasibility study for the copper concentrate treatment plant, and engineering and procurement services); African Mining Services (openpit mining contract).

Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800.