SANDFIRE GROUP JORC MINERAL RESOURCE and ORE RESERVE STATEMENT Group Mineral Resource for All Australian Projects Plus the Black Butte Project, USA
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ASX Announcement 19 October 2017 SANDFIRE GROUP JORC MINERAL RESOURCE AND ORE RESERVE STATEMENT Group Mineral Resource for all Australian projects plus the Black Butte Project, USA Highlights Group Mineral Resource: DeGrussa, Monty, Black Butte, Thaduna, Green Dragon and Temora Projects are estimated to contain 1.9Mt of copper, 2.7Moz of gold and 15.8Moz of silver. Group Ore Reserve: DeGrussa Copper-Gold Mine (100%-owned) and Monty Copper- Gold Project (70%-owned; under development): 6.8Mt at 5.0% Cu, 1.6g/t Au, 13g/t Ag for 337,000t of contained copper, 355,000oz of contained gold and 2,766,000oz of contained silver; 2.8Mt at 1.2% Cu, 1.0g/t Au, 36g/t Ag for 35,000t of contained copper, 84,000oz of contained gold and 3,175,000oz of contained silver (oxide copper stockpile); and Total 9.5Mt at 3.9% Cu, 1.4g/t Au, 19g/t Ag for 372,000t of contained copper, 439,000oz of contained gold and 5,941,000oz of contained silver. Mineral Resource for Sandfire’s 78.1%-owned Black Butte Copper Project in central Montana, USA (JORC reported): 18.0Mt at 3.3% Cu, 14g/t Ag, 0.10% Co for 597,000t of copper, 7,980,000oz of silver and 18,000t of cobalt. Mineral Resource for the Thaduna and Green Dragon Copper Projects, located within the wider Doolgunna Project north-east of DeGrussa (Updated): 8.2Mt at 1.8% Cu, 3.7g/t Ag for 150,000t of copper and 963,000oz of silver. Mineral Resource for the Temora Copper-Gold Project in the Lachlan Fold Belt, NSW (Updated): 240Mt at 0.30% Cu, 0.29g/t Au for 728,000t of copper and 2,207,000oz of gold. Sandfire Resources NL (ASX: SFR, “Sandfire” or “the Company”) is pleased to report its Group Mineral Resource and Ore Reserve (MROR) estimate1. The annual MROR estimates are reported on a Group-wide basis and include the Company’s Australian copper-gold and base metal projects (both in the Doolgunna region, WA and at Temora, NSW), as well as its 78.1%-owned Black Butte Copper Project in the USA, which is held via its interest in Tintina Resources Inc (TSX-V: TAU) (Figure 1). Sandfire’s Managing Director, Mr Karl Simich, said the MROR reflected the substantial endowment across its key resource-level projects in Australia and the USA. “With a significant contained metal inventory approaching 2 million tonnes of contained copper, 2.8 million ounces of gold and nearly 16.0 million ounces of silver, the Group Mineral Resource and Ore Reserve estimates demonstrate the depth of Sandfire’s emerging growth pipeline. This is underpinned by a high-quality Ore Reserve at our flagship DeGrussa Mine and the new satellite Monty Project, currently being developed, which is estimated to contain 372,000 tonnes of copper and 439,000oz of gold.” 1 Mineral Resource and Ore Reserve for the Monty Project is stated as at 31 March 2017. DeGrussa Mine and others stated as at 31 December 2016. “In addition, there is a significant Mineral Resource inventory both at DeGrussa and at other deposits within the surrounding Doolgunna Project such as Thaduna and Green Dragon which offer potential future upside. We currently have studies underway to determine potential economic development pathways for all of these growth opportunities. “Meanwhile, the high-grade Mineral Resource reported for the Black Butte Copper Project in Montana is a key medium-term growth project outside of DeGrussa, and it has recently moved to the next key stage of permitting with the commencement of the Environmental Impact Study process. “Against the backdrop of a stronger commodity price environment, we are focused on unlocking the full value of all of the resource-level projects within our portfolio, both in Western Australia and further afield on the East Coast and in the USA. “And, of course we are continuing to explore aggressively for new VMS discoveries in the Doolgunna region, and for new base metal deposits within our East Coast portfolio in Australia. Success in any of these areas could result in further growth in our mineral resource inventory, and the creation of significant additional value for our shareholders.” Group Mineral Resource Group Mineral Resource at DeGrussa, Monty, Black Butte, Thaduna and Green Dragon and Temora is summarised in Tables 1, 3, 5, 7, 8 and 9. Table 1: Total Mineral Resource as at 31 December 2016 Tonnes Grade Contained Metal Cu Au Ag Co Cu Au Ag Co Project Mt (%) (g/t) (g/t) (%) (kt) (koz) (koz) (kt) DeGrussa 9.5 4.2 1.6 21 - 400 500 6,425 - Monty1 0.7 9.4 1.6 17 - 69 39 400 - Black Butte2 18.0 3.3 - 14 0.10 597 - 7,980 18 Thaduna and Green Dragon 8.2 1.8 - 4 - 150 - 963 - Temora 240 0.3 0.3 - - 728 2,207 - - Total 1,944 2,748 15,766 18 1. Monty refers to the Springfield Unincorporated Mining Joint Venture which comprises participating interests of Sandfire (70%) and Talisman Mining Limited (30%). Sandfire is the manager of the Joint Venture. The figures shown represent 70% of the Mineral Resource. 2. Black Butte is owned by North American-listed Company Tintina Resources (TSX-V: TAU) of which Sandfire Resources holds a 78.1% interest. The figures shown represent 100% of the Mineral Resource. 3. DeGrussa, Thaduna and Green Dragon, and Temora are 100% SFR owned. 4. The Measured, Indicated and Inferred Mineral Resource Categories are detailed in Tables 3, 5 and 7 to 9. 5. Data is rounded to reflect appropriate precision in the estimate and differences may occur due to rounding. 6. Mineral Resources are inclusive of Ore Reserves. Group Ore Reserve Group Ore Reserve are summarised in Tables 2, 4 and 6. Table 2: Total Ore Reserve as at 31 December 2016 Tonnes Grade Contained Metal Cu Au Ag Co Cu Au Ag Co Project Mt (%) (g/t) (g/t) (%) (kt) (koz) (koz) (kt) DeGrussa 8.9 3.6 1.4 20 - 316 410 5,622 - Monty1,2 0.6 8.7 1.4 15 - 56 29 319 - Total 9.5 3.9 1.4 19 - 372 439 5,941 - 1. Monty refers to the Springfield Unincorporated Mining Joint Venture which comprises participating interests of Sandfire (70%) and Talisman Mining Limited (30%). Sandfire is the manager of the Joint Venture. The figures shown represent 70% of the Ore Reserve. 2. Monty stated as at 31 March 2017 (currently under development). 3. The Proven and Probable Ore Reserves are detailed in Tables 4 and 6. 4. Data is rounded to reflect appropriate precision in the estimate and differences may occur due to rounding. 5. Ore Reserves include mining dilution and mining recovery. SANDFIRE RESOURCES NL Page 2 DeGrussa Copper-Gold Mine The DeGrussa Copper Mine is Sandfire’s cornerstone asset and is located within the 100%-owned Doolgunna Project, a 400km2 tenement package in WA’s Bryah Basin mineral province, ~900km north-east of Perth. Table 3: DeGrussa Copper-Gold Mine – Total Mineral Resource as at 31 December 2016 Tonnes Grade Contained Metal Resource Cu Au Ag Cu Au Ag Project Category Mt (%) (g/t) (g/t) (kt) (koz) (koz) DeGrussa Measured 8.5 4.2 1.6 22 356 447 5,949 Indicated 0.7 4.3 1.8 16 29 38 343 Inferred 0.3 5.2 1.6 14 15 15 133 Total 9.5 4.2 1.6 21 400 500 6,425 1. Includes 2.8mt of oxide material stockpiles at 1.2% Cu, 1.0g/t Au and 35.6g/t Ag. 2. Mineral Resource is based on a 1.0% Cu cut-off. 3. Data is rounded to reflect appropriate precision in the estimate and differences may occur due to rounding. Table 4: DeGrussa Copper-Gold Mine – Total Ore Reserve as at 31 December 2016 Tonnes Grade Contained Metal Resource Cu Au Ag Cu Au Ag Project Category Mt (%) (g/t) (g/t) (kt) (koz) (koz) DeGrussa Proven 8.4 3.5 1.4 20 292 385 5,422 Probable 0.5 4.6 1.5 12 24 25 201 Total 8.9 3.6 1.4 20 316 410 5,622 1. Data is rounded to reflect appropriate precision in the estimate and differences may occur due to rounding. 2. Ore Reserves include mining dilution and mining recovery. Monty Copper-Gold Mine – 100% Basis (SFR 70.0%) The Monty VMS Copper-Gold Project is located 10km east of the DeGrussa Copper-Gold Mine and forms part of the Springfield Unincorporated Mining Joint Venture. Sandfire is the manager of the Joint Venture, which comprises participating interests of Sandfire (70%) and Talisman Mining Limited (30%). Table 5: Monty Copper-Gold Mine – Total Mineral Resource as at 31 December 2016 Tonnes Grade Contained Metal Resource Cu Au Ag Cu Au Ag Project Category Mt (%) (g/t) (g/t) (kt) (koz) (koz) Monty Measured - - - - - - - Indicated 1.04 9.3 1.6 17 97 54 565 Inferred 0.01 20.7 2.7 19 2 1 5 Total 1.05 9.4 1.6 17 99 55 571 1. Mineral Resource is based on a 1.0% Cu cut-off. 2. Data is rounded to reflect appropriate precision in the estimate and differences may occur due to rounding. Table 6: Monty Copper-Gold Mine – Total Ore Reserve as at 31 March 2017 Tonnes Grade Contained Metal Resource Cu Au Ag Cu Au Ag Project Category Mt (%) (g/t) (g/t) (kt) (koz) (koz) Monty Proven - - - - - - - Probable 0.92 8.7 1.4 15 80 42 455 Total 0.92 8.7 1.4 15 80 42 455 1.