Sandfire, Talisman JV to develop Monty

Sandfire Resources has lodged a mining lease application for the development of its majority-owned Monty copper-gold project, located near its flagship DeGrussa mine.

Sandfire and joint venture partner Talisman Mining (70:30 respectively) made the decision to proceed with the project after completing a study to determine a development pathway.

The study included the preferred location for a box-cut mine, a decline entrance portal, site access, mining methods and permitting and approval pathways.

The joint venture plans to leverage the proximity of Sandfire’s DeGrussa mine (10 kilometres away) by using its existing infrastructure services and facilities to support the Monty deposit.

The mining lease application, lodged with the Department of Mines and Petroleum, covers about 16.5 square kilometres of land, with the project to also include an electrical sub-station to provide power to the underground mine, workshops and offices.

As manager of the joint venture, Sandfire has commenced a feasibility study on the project with a budget of $3.9 million, which is on track for completion in the March quarter next year.

“With an exceptionally high-grade resource containing almost 100,000 tonnes of copper and 55,000 ounces of gold, Monty is a valuable and strategic asset with the potential to make a significant contribution to our future production profile at DeGrussa,” Sandfire managing director Karl Simich said.

“We look forward to receiving the results of the Monty feasibility study early next year which will include the results of a study on integrating ore feed from Monty into the future production profile at DeGrussa.

“We expect that this will pave the way for a positive development decision, allowing the joint venture partners to proceed with the construction of a new satellite underground mining operation at Monty, marking the start of an exciting new growth chapter for the DeGrussa-Doolgunna region.”

Talisman managing director Daniel Madden said lodgement of the mining lease application and commencement of a feasibility study highlighted the commitment of the joint venture partners to expedite production from the Monty project.

“We look forward to receiving the results of the Monty Feasibility Study and working with Sandfire to be in a position to make a decision on the Monty development early next year,” he said.

Sandfire shares were 1.4 per cent higher to $6.45 each at the close of trade, while Talisman shares were 3.4 per cent higher to 44.5 cents each.