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Black Butte has cleared its biggest regulatory
hurdle with Sandfire now preparing to start
early construction works

contains; we have three-quarters of it, they
have a quarter and our portion is underex-
plored, preserved under a calcrete cap.”
Sandfire’s belief in the potential of the
Kalahari copper belt was reinforced in May
with the acquisition of additional explora-
tion ground over the border in Namibia from
ASX-listed junior Kopore Metals Ltd for $1
million cash and $1 million in shares.
“The belt doesn’t stop at the border and
that is why when the Kapore opportunity in
Namibia came up we moved on it,” Simich
said. “It is the same geological structure,
potentially under more cover, but it is pre-
served and perhaps has never been ex-
plored. With modern exploration and ac-
cess to appropriate resources – knowledge
“A4 potentially has significant conse- and cash – it puts us in a fantastic position Where T3 displays lower grade copper, the
quences for the ultimate scale and longev- to develop multiple hubs of production that new A4 prospect is consistently turning up
ity of T3. It appears to be higher grade, at we sit on for many decades to come.” plus-1% copper grades
1.2-1.3% copper versus less than 1% at T3.” T3 is set to be Sandfire’s first develop-
Sandfire is currently optimising a 2019 ment project with the Black Butte copper
feasibility study on T3 with options being asset in the US state of Montana expected “The EIA is in the public domain and the
considered for increasing throughput rates to follow. The market has been frustrated by record-of-decision allows us to move into
from 3.2 mtpa to 4.2-5.1 mtpa depending a turgid approvals system in Montana but construction work,” he said. “There are
on additional ore sources. Simich said A4’s Simich said the timeline wasn’t a concern a few minor permits still required but the
emergence demonstrated how a larger for Sandfire. most critical have been achieved. We will
plant could be filled. “In the US people are actually surprised continue to progress at a more considered
“We now have 100% of more than with the speed we’ve been able to get our way in the US; this is the first new record-of-
11,000sq km on what is a world-scale belt. record-of-decision whereas if you talk to decision awarded in Montana in 24 years.”
In our view, it is the last of the belts that is people in Australia, they’ll ask you why it is Development timing could now depend
underexplored, and we know the Khome- taking so long,” he said. “We’re really com- more on markets then regulators.
cau project next door is 7mt of contained fortable with the hard work we’ve done in “We are busy doing our homework now,
copper. Cupric Canyon is developing an permitting that project.” so we are prepared for success when the
operation there which will have 60,000, In April, the company received the re- market improves and have projects in pro-
then 90,000, then 120,000 and eventu- cord-of-decision (essentially a mining per- duction at a better time in the copper cycle,”
ally 150,000 tpa of copper production. mit) for Black Butte, clearing the path for Simich said.
That gives an indication of what that belt development, according to Simich. “Botswana will come on in late 2022 with
Black Butte to be in production a year later.”
Simich said the fluctuations in commod-
Development at Monty ran smoothly with the orebody now a full contributor to the DeGrussa ity markets had not caused too many con-
production numbers
cerns but he did acknowledge the dampen-
ing effects of a slowing global economy.
“That is demand destructive but funda-
mentally that demand is not going away
forever, it is just being moved out,” he said.
“There has also been a bit of supply disrup-
tion.”
Longer-term, Simich remains a commit-
ted disciple of the red metal.
“Copper is still a wonderful product used
extensively for multiple purposes; particu-
larly electrification and green energy,” he
said. “If you look at the declining grades out
of mines, the cost of developing projects
and their capital intensity and cost profile,
there is a need for a higher copper price
long-term to justify development of the pro-
ject. People won’t invest in projects if there
is no return.”
– Dominic Piper

aUSTRaLIa’S PaYDIRT JULY 2020 Page 53