Sheffield Resources (ASX:SFX) reports that its 50% owned Thunderbird Mineral Sands Project in northern Western Australia is now more than 38% complete.
The company reports that site construction activities are advancing in accordance with the planned construction schedule.
Bulk earthworks and related civil construction activities have significantly advanced over recent months, following the mobilisation of GR Engineering Services (GRES) as the EPC contractor.
Construction of the tailings storage facility is underway, and contractors have mobilised to install the borefield.
Addressing the progress, Sheffield Resources Executive Chair Bruce Griffin said: “It’s extremely pleasing to see the Thunderbird site construction progressing well.
Committed equity proceeds of $130.1 million secured from Yansteel following the formation of the Kimberley Mineral Sands joint venture has been put to work and has enabled site construction continues to ramp up and KMS are moving ever closer to committing to full construction at the conclusion of the project financing activities.
“With first production on track for Q1 2024, Thunderbird is well positioned to deliver product into a buoyant market”
With first production on track for Q1 2024, Thunderbird is well positioned to deliver product into a buoyant market that continues to experience supply constraints across the globe.”
The Thunderbird Bankable Feasibility Study (BFS) estimated a NPV of $1.28 billion ($A:$US 0.75:1) and post-tax IRR of 27.5%. Sheffield’s 50% share of the NPV is estimated at $640 million.
The Thunderbird Mineral Sands Project is one of the largest and highest grade mineral sands discoveries in the last 30 years. The 2022 KMS Bankable Feasibility Study (BFS) shows Thunderbird is a technically low risk project, that generates strong cash margins from globally significant levels of production over a decades long mine-life.
The project will generate a ‘high-quality’ suite of mineral sands concentrate products suited to market requirements.
These products include a zircon concentrate and a magnetic concentrate that contains a ‘high-quality’ ilmenite suitable smelting into chloride slag or for manufacturing titanium dioxide pigment.
Thunderbird is located in one of the world’s most attractive mining investment jurisdictions and is well placed to deliver long-term, secure supply of ‘high-quality’ products to a range of potential customers.
Write to Adam Orlando at Mining.com.au
Images: Sheffield Resources Ltd
