Name of the Project
Thunderbird mineral sands project.

Location
The project is located near Derby, in Western Australia.

Client
Sheffield Resources.

Project Description
A bankable feasibility study (BFS) has demonstrated a financially robust and technically strong project with a 42-year mine life. The BFS is underpinned by one of the world’s largest and highest-grade zircon- and ilmenite-rich mineral sands ore reserves totalling 680.5-million tonnes grading 11.3% in heavy minerals.

The BFS is based on a conventional dozer trap mineral sands mining and processing operation involving an initial 8.5-million-tonne-a-year throughput (single mining unit), doubling to 17-million tonnes a year in Year 5 through a second mining unit and processing stream.

The first stage of the project is expected to produce more than 500 000 t/y of saleable product and the second stage more than one-million tonnes of saleable product a year, with a life-of-mine average of about 800 000 t/y.

Over its mine life, the project is expected to deliver an estimated 761 000 t/y of premium zircon, 68 500 t/y of zircon concentrate, 387 800 t/y of ilmenite and 229 800 t/y of titanomagnetite.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 10% discount rate, of A$676-million and an internal rate of return of 25%.

Value
Stage 1 capital has been estimated at A$463-million, with a transition from a build, own, operate model to infrastructure ownership expected to result in a further increase of about A$65-million.

Stage 2 is expected to cost A$195-million.

Duration
The first stage is expected to start in 2019 and end in 2023. Stage 2 is expected to start in 2024.

Latest Developments
Sheffield Resources has signed a seven-year offtake agreement for 650 000 t/y of primary ilmenite from its Thunderbird mineral sands project.

The agreement with China’s Bengbu Zhongheng New Materials encompasses all the primary ilmenite to be produced during the Stage 1 operations at Thunderbird.

The agreement enhances the economics of the Thunderbird project by generating additional revenue from primary ilmenite sales, and complements the strategy identified in the BFS, Sheffield MD Bruce McFadzean has said.

Under the agreement with Bengbu, the two companies have also formed a long-term strategic alliance that includes the sharing of ilmenite processing technology, samples and data that will be mutually beneficial to the future production of chloride grade slag.

Key Contracts and Suppliers
GR Engineering (design and construction of mineral processing plant, as well as the supporting infrastructure).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sheffield Resources, tel +61 8 6555 8777, fax +61 8 6555 8787 or email info@sheffieldresources.com.au.