Sandfire Resources America Updates Black Butte Copper Project Pre-Feasibility Study, Extends Mine Life to 12 Years

en.Wedoany.com Reported - Sandfire Resources America has updated the pre-feasibility study for its Black Butte Copper Project in Montana, USA, incorporating the Lowry deposit into the development plan. Following the update, the project's recoverable reserves have increased to 14.3 million tonnes, with an average copper grade of 2.6%, containing approximately 370,000 tonnes of copper. The mine life has been extended from the previously planned 8 years to 12 years, with an expected average annual copper production of about 31,000 tonnes. Based on a copper price of $4.70 per pound, the project's after-tax net present value is $126 million, with an internal rate of return of 13.3% and initial capital expenditure of approximately $474 million. The full lifecycle is expected to generate after-tax cash flow of $476 million, a 34% increase over the previous study.

The primary reason for this pre-feasibility study update is the inclusion of the Lowry deposit, located approximately 2 kilometers from the main ore body, into the overall development plan. The company stated that the newly added ore body helps further enhance resource development potential and plans to adopt mechanized deep-hole mining methods to reduce unit operating costs. Currently, the underground mine and supporting processing facilities for the project's main ore body, the Johnny Lee deposit, have received state and federal regulatory permits, and the company is steadily advancing project development.