Sandfire enters supply deal for DeGrussa

Sandfire Resources has signed a $20 million supply deal with European-based process technology group, Outotec to advance its DeGrussa copper-gold project.

Under terms of the deal, Outotec will supply and deliver a ball mill, SAG mill, flotation cells, thickeners and a concentrate filter for the construction of Sandfire's 1.5 million tonne per annum DeGrussa concentrator.

Sandfire said the deal reflected its high level of confidence in the DeGrussa copper-gold project.

"We are delighted to have signed a contract with a highly respected international organisation such as Outotec for the provision of key long-lead items and services required for the construction of the DeGrussa concentrator," Sandfire managing firector Karl Simich said.

"The award of this contract ahead of the completion of the Definitive Feasibility Study and project financing reflects our confidence in the DeGrussa Project and our commitment to move ahead with development as rapidly as possible.

"Placing orders for key long-lead items now puts us in a position to achieve our timetable of commencing construction by mid-2011 and starting to commission the concentrator in the 3rd quarter of next year.''