Sandfire Resources (ASX:SFR) reports an updated Mineral Resource Estimate (MRE) for the MATSA mining operations in the Iberian Pyrite Belt in southern Spain is significantly higher than the previous MRE released in December 2019.
The company reports the updated Measured, Indicated, and Inferred MRE now totals 147.2Mt at 1.4% Cu, 3.0% Zn, 1.0% Pb and 39.6g/t Ag containing an estimated 2.1Mt of copper, 4.4Mt of zinc, 1.5Mt of lead, and 187.6Moz of silver.
When compared with the previous MRE reported in 2019, the updated December 2021 MRE has delivered a 21% increase in contained tonnes, an 11% increase in contained copper, and a 10% increase in contained zinc.
This represents Sandfire’s first MRE for MATSA since it assumed ownership of the project in February 2022.
The company has employed rigorous estimation and reporting methodologies including constraining the Mineral Resource to exclude sections of the orebodies unlikely to be accessible from planned workings.
An updated Ore Reserve Estimate for the MATSA mining complex is scheduled to be delivered in the 2022 September quarter.
Commenting on the update, Sandfire Managing Director Karl Simich said: “The key takeaway for investors is therefore that this is a high-quality resource with 109 million tonnes in the high-confidence Measured and Indicated categories, which provides a strong platform for life-of-mine optimisation and planning, with an updated Ore Reserve estimate scheduled for completion in the September Quarter.
“The key takeaway for investors is therefore that this is a high-quality resource with 109 million tonnes in the high-confidence Measured and Indicated categories”
The Measured and Indicated Mineral Resource of 109Mt equates to around 2.8 million tonnes of contained metal on a copper equivalent basis and has been broken down into its key components of 73.6Mt of Polymetallic material at 1.3% Cu and 4.7% Zn and 35.4Mt of Cupriferous and Stockwork material at a combined grade of 1.8% Cu.”
The increase in overall tonnes, contained copper, and zinc since has more than made up for mining depletion at MATSA over the 2 years prior to Sandfire’s ownership, the company reports.
Importantly, about 74% of the updated MRE is classified in the higher confidence Measured and Indicated Resource categories.
The strong outcome confirms MATSA’s geological potential as assessed by Sandfire during its due diligence process for the project acquisition, delivering a robust and high-quality MRE that will provide a strong platform for future life-of-mine planning.
The updated MRE also includes initial Inferred Mineral Resources for the satellite Concepción, Poderosa, and Castillo-Buitrón deposits totalling 19.8Mt at 1.2% Cu and 1.6% Zn.
Sandfire is preparing an updated drilling budget with more than 35,000m of resource development drilling planned for FY23, targeting extensions to known mineralisation domains at all three mines.
All three deposits are located close to the existing 4.7Mtpa processing plant.
The three MATSA mines are located in close proximity to one another with the Aguas Teñidas mine 7km west of the Magdalena mine, within the Almonaster la Real municipality and less than 2km from the villages of Valdelamusa and Cueva de la Mora. The Sotiel mine is located about 38km south of the Aguas Teñidas mine within the municipality of Calañas, immediately on the southern border of the village of Sotiel Coronada.
