Perth-based Sandfire Resources has extended the mine life of its DeGrussa copper and gold mine near Meekatharra to mid-2021.
Perth-based Sandfire Resources has extended the mine life of its DeGrussa copper and gold mine near Meekatharra to mid-2021.
In a statement, the company said it had upgraded the resource at DeGrussa to 9.5 million tonnes at 5.7 per cent copper, and 2 grams per tonne gold for 546,000 tonnes of contained copper and 616,000 ounces of contained gold.
Sandfire said its mine plan confirmed underground mine production would continue at its current rate of 1.5mt per annum, with a 100 per cent increase in the mineral resource since discovery in 2009.
Managing director Karl Simich said the life of the DeGrussa operation had been extended to mid-2021, with the overall life of the mine now approaching 10 years since the start of copper production in 2011.
“Underground drilling in and around C1 and the deeper C4 and C5 deposits will be an increasing focus for Sandfire in 2015 as more drilling positions become available from the expanding underground infrastructure,” he said.
“We are encouraged by what we have seen recently with some of these underground exploration activities.
In particular, recent underground drilling has returned strong grade intersections outside of the known ore reserves, identifying potential feeder zones in the footwall of the C1 deposit.”
Mr Simich said further drilling could lead the company closer to finding the underlying volcanic source of the DeGrussa deposits.
Meanwhile, Sandfire released its quarterly report today, which disclosed an increase in gold production but a decrease in copper production.
It projected a second-half production guidance of 34,000t to 37,000t of copper at C1 costs in the range of $US1.05 to $US1.15 per pound.
Sandfire said the lower copper production was the result of a temporary suspension of mining activity at DeGrussa as a result of increased water flows into one of the conductors.
“These inflows occurred at the location of underground drill holes completed as part of a long-term water management program for the underground mine,” the company said.
“The cost rectification works amounted to $7.7 million during November and December, including holding costs for affected mining operations.”
The company held $45.8 million cash on hand at the end of December.
Sandfire is ranked at number 7 on Business News' BNiQ List of Public Companies - Resources.
Sandfire shares closed 3.6 per cent lower at $3.94 per share.
