MINERAL sands exploration company Sheffield Resources has restructured the cost of its flagship Thunderbird project in WA following a review of company strategy.
Sheffield Resources said the scaled-back project would generate annual cost savings of $7.5m, representing 60pc of the project’s current cost base, for the tier-one zircon-rich mineral sands deposit.
Company managing director Bruce McFadzean said the company had achieved important milestones in recent years to make Thunderbird construction ready.
“The Thunderbird mineral sands project is a world-class asset that is fully permitted, construction ready and perfectly positioned to meet the market need,” Mr McFadzean said.
The company said that by changing the scale and product mix of its Thunderbird project, it can significantly reduce its capital cost and provide a more financeable project.
Thunderbird is zircon-rich mineral sands project in the Dampier peninsula located between Broome and Derby in WA, and its ore reserves are some of the largest and highest grade in the world, said the company.
A bankable feasibility study was completed for Thunderbird in 2017, and the project’s ore reserves stand at 680mt including a high-grade component of 1mt with high grade (0.9pc) zircon.
The ASX-listed company is maintaining the integrity of its licences, permits and relationships with Kimberley stakeholders and traditional owners.
Sheffield said it may take further action to strengthen its balance sheet, including divesting non-core assets outside its Thunderbird project and consider potential partnerships and joint ventures.
