Sheffield's Thunderbird to cost $348m

Sheffield Resources has moved to the next stage of progressing its Thunderbird mineral sands project near Derby, after releasing a bankable feasibility study which revealed a development capex of $348 million.

The study forecast an earnings before interest, tax, depreciation and amortisation return of $5.1 billion over Thunderbird’s 42-year mine life, with Sheffield managing director Bruce McFadzean heralding the project as world class.

“The study findings show Thunderbird is a technically low-risk project and is anticipated to generate significant and consistent financial returns over an exceptionally long mine life of 42 years,” Mr McFadzean said.

“Completion of the BFS clears the way for delivery of the next major milestones – offtake, permitting and project finance – ahead of a targeted construction start in the second half of 2017.

“Offtake discussions are progressing with leading global ilmenite and zircon customers.

“In conjunction with our corporate advisers Azure Capital, we are engaging with both project finance providers and potential strategic partners to arrive at an optimal funding solution.”

Sheffield shares were unchanged at 58 cents each at the close.