Sandfire's Motheo hub strategy gathers pace
Sandfire Resources has boosted the resource for its A4 satellite deposit, part of the Motheo copper project in Botswana (reports The West Australian).
23rd July 2021
Resources Rising Stars
A4 now has an indicated and inferred resource of 9.8 million tonnes at 1.4% copper and 21 grams per tonne silver for 134,000 tonnes of copper and 6.6 million ounces of silver, using a 0.5% copper cut-off and constrained by a US$4.50 per pound optimised pit shell.
Contained copper is up 34% over the previous all-inferred estimate, while 93% of the resource is now indicated and available for inclusion in reserves.
A maiden reserve is due in the December quarter.
A4 is just 8km from Sandfire's $279 million T3-Motheo mine development and is seen as a potential satellite deposit as the company looks at increasing production from the base case 3.2Mt per annum to 5.2Mtpa.
The base case mine is expected to produce about 30,000t of copper and 1.2 million ounces of silver per annum over the first 10 years from early 2023.
A feasibility study on A4 is due in the March 2022 quarter.
Sandfire managing director and CEO Karl Simich said the updated resource put the company in a strong position to deliver on its expansion plans in Botswana.
"Following the recent award of the mining licence, site works and construction activities have now kicked off in earnest at Motheo, with the current development plan already incorporating a significant upfront investment in additional processing and infrastructure capacity to support our growth objectives," he said.
"It's also important to remember that A4 represents just the first in a long line of prospective targets that we've identified in the near-mine and broader regional environment that we'll progressively test."
Further drilling is underway along the A4 Dome. In addition to high-grade vein systems, the drilling will also target the Ngwako Pan Formation contact below the dome.
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