Name of the Project
Thunderbird mineral sands project.

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

Project Owner/s
Sheffield Resources.

Project Description
A bankable feasibility study update (BFSU) has confirmed Thunderbird’s status as a world-class mineral sands project and has demonstrated a lower-risk, technically stronger project with robust financial metrics.

The BFSU has set out to materially improve project financial metrics by rescoping the project to reduce capital expenditure, increase zircon production to meet strong demand from consumers globally as the structural supply deficit widens, and supply primary ilmenite to the high-growth chloride slag market.

The BFSU ore reserve of 748-million tonnes at 11.2% heavy minerals is an increase of 68-million tonnes on the mineral reserves reported in the 2017 BFS.

The mining and processing rate has increased by 38% from 785 dry tonnes an hour to 1 085 dry tonnes an hour at the wet concentrate plant (WCP), targeting average zircon production of 202 000 t/y over the 37-year life-of-mine. This compares with zircon production of 145 000 t/y over a 42-year mine life in the 2017 BFS, elevating Thunderbird into the top tier of global zircon producers.

The BFSU follows a similar project development strategy described in the 2017 BFS, with the use of a conventional dozer trap mineral sands mining and processing operation, but with an increase in the Stage 1 mining rate from 8.5-million tonnes a year (single mining unit) to 10.4-million tonnes a year (single mining unit).

The duplication of a second mining unit and process stream in Year 5 takes the total mining rate to 20.8-million tonnes a year, up from 17-million tonnes a year in the 2017 BFS. The low-temperature roast ilmenite circuit has been removed and the project is forecast to export unroasted primary ilmenite.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The BFSU has estimated a pretax net present value (NPV), at a 10% discount rate, of A$1.13-billion and an internal rate of return
of 30.1%, compared with an NPV of A$676-million and an internal rate of return of 24.9% in the 2017 BFS.

Capital Expenditure
Project capital has decreased from A$463-million in the 2017 BFS to A$392-million in the BFSU.

Planned Start/End Date
Not stated.

Latest Developments
Sheffield is expected to determine the optimal funding solution for the project over the coming months, clearing the way for a final investment decision and the start of construction later this year.

Key Contracts and Suppliers
GR Engineering (design and construction of the 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.