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 (BFS) update 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 BFS update has set out to materially improve project financial metrics by rescoping the project to reduce capital expenditure, increase zircon production to meet strong global demand as the structural supply deficit widens and supply primary ilmenite to the high-growth chloride slag market.

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 BFS update follows a similar project development strategy described in the 2017 BFS using 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 BFS update 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 BFS update.

Planned Start/End Date
Not stated.

Latest Developments
Sheffield Resources has reported a 68-million-tonne, or 10%, increase in the ore reserve at its Thunderbird project.

The project is now estimated to host a reserve of 748-million tonnes, at 11.2% heavy minerals.

The greater Dampier project is estimated to host a mineral resource of 3.36-billion tonnes, at 6.8% heavy minerals, with the Thunderbird resource accounting for 3.23-billion tonnes and the Night Train mineral resource for 130-million tonnes.

Sheffield has reported that the company has made excellent progress with brownfields exploration at the Dampier project, increasing the Dampier mineral resource with the addition of a maiden Night Train inferred mineral resource, and a material increase in the Thunderbird reserve.

Meanwhile,  the Western Australian Department of Mines, Industry Regulation and Safety has approved the mining proposal and mine closure plan for the Thunderbird project.

Sheffield Resources has said that the approval will enable the company to undertake mining, processing, maintenance and haulage activities during Stage 1 of the Thunderbird project, while ensuring safety, environmental and mine closure outcomes for the project.

“This key approval of the mining proposal and mine closure plan is another milestone towards the development of Thunderbird. This tremendous achievement allows work to commence on site and paves the way for future construction activities,” Sheffield MD Bruce McFadzean has said.

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.