Name of the Project
Thunderbird mineral sands project.

Location
Kimberley region, northern Western Australia.

Project Owner/s
Kimberley Mineral Sands (KMS), a 50:50 joint venture between Sheffield Resources and YGH Australia Investment.

Project Description
Thunderbird will be developed in two stages.

Stage 1 and 2 of operations are expected to produce 1.4-million tonnes a year of zircon and ilmenite concentrates over an estimated 36-year life-of-mine (LoM).

The initial Stage 1 mining and processing feed rate is forecast at 1 085 dry tonnes an hour at the wet concentrate plant, with Stage 2 doubling the wet concentrate feed rate to 2 170 t/h during Year 5 of operations.

The project includes the Night Train deposit, 20 km to the east of Thunderbird.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Stage 1 has an after-tax net present value (NPV), at an 8% discount rate, of A$842-million and an internal rate of return (IRR) of 26.6%.

The project has an after-tax NPV, at an 8% discount rate, of A$548-million and an IRR of 27%.

Capital Expenditure
Total funding requirement for Stage 1 is estimated at A$484-million.

Total funding requirement for Stage 2 is estimated at A$258-million.

Planned Start/End Date
First production started in the December 2023 quarter.

Stage 2’s assumed execution is expected in 2026/27, and production in 2028.

Latest Developments
KMS continues to ramp up production and product shipments from Thunderbird.

For the current quarter to date, Thunderbird has achieved mine production totalling about 1.3-million tonnes, a significant step change from the previous quarter and monthly mine production of about 750 000 t during May 2024, consistent with the ramp-up schedule towards a mining rate of ten-million tonnes a year as contained in the 2022 bankable feasibility study (BSF).

Modifications to the dry mining unit, successfully undertaken early in the current quarter, have enabled sustained improved availability and production performance. The increase in mine production has resulted in increased production of concentrates, with about 65 000 t of ilmenite produced, and about 37 000 t in May. Production of zircon concentrate totalled 20 000 t for the quarter to date, with about 12 000 t produced during May.

As Thunderbird advances toward nameplate production capacity and consistent production, additional costs have been incurred, associated with inconsistent mining rates primarily because of observed oversize material. In addition, scope changes to mining and logistics contracts, including wider inflationary cost pressures as observed throughout the mining sector in Western Australia, have resulted in cost increases relative to BFS assumptions. 

During the 2025 financial year, a range of targeted programmes, including the transition to in-pit tailings disposal, are expected to deliver reductions in the Thunderbird cost structure.

Having recently fully drawn the available loan facilities from third-party lenders, KMS is funded to sustain the ramp-up at Thunderbird. Additionally, if required, Sheffield can provide KMS with sufficient working capital alongside its 50:50 joint venture partner Yansteel.

Key Contracts, Suppliers and Consultants
GR Engineering Services (engineering, procurement and construction – process facilities); and Piacentini & Son (services contract).

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