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(Kitco News) – Sandfire Resources (ASX: SFR) today announced that the mining license has been granted for its Motheo copper mine in Botswana, representing the last major step in the authorization required to start construction at large-scale project.
The company said the Motheo copper mine will be developed over a two-year period, with mining scheduled to begin in early 2022 and commissioning and ramp-up scheduled for early in the year. 2023.
Initial work on the Motheo site began earlier this year, with sterilization drilling, a 15 km access road and construction of a 200-person camp already well underway. Following the granting of the mining permit, Sandfire announced that it will now mobilize additional staff to the site to begin construction of the processing plant and other infrastructure. Orders have already been placed for all key processing equipment and long lead time items.
According to the company statement, the final T3-Motheo feasibility study, completed in December 2020, confirmed the strong economic and technical results of an initial treatment capacity of 3.2 Mtpa from the baseline scenario and development at open sky of the T3 deposit.
DFS described a robust 12.5 year initial operation, averaging around 30 kt of contained copper and 1.2 Moz of contained silver per year over the first 10 years of operation, with relatively low capital intensity. and strong operating margins, added Sandfire.
The DFS T3-Motheo was based on a forecast copper price of US $ 3.16 / lb reflecting the long-term consensus price at the time the feasibility study was carried out. The development of the 3.2 million tonnes per year baseline project was expected to generate US $ 664 million (AU $ 867 million) in pre-tax free cash flow and US $ 987 million (US $ 1,289 million) Australian) EBITDA, at an expected all-inclusive sustaining cost of $ 1.76 / lb during its first 10 years of operation.
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