Sandfire Resources (ASX: SFR) has provided an update on a pre-feasibility study for the Johnny Lee deposit and updated Mineral Resource for the Lowry deposit the Black Butte copper project in Montana, USA.
HIGHLIGHTS
- Increased tonnes within the Johnny Lee Mineral Resource by 64% for a 33% increase in contained copper
- Increased tonnes in the Johnny Lee Ore Reserve by 8% for a 19% increase in contained copper
- Increased tonnes within the Lowry Mineral Resource by 12% for a 5% increase in contained copper
Black Butte is a fully permitted, high‑grade copper development project. Sandfire’s interest is held through an 87% equity stake in Sandfire America, which owns 100% of the Project, comprising the Johnny Lee and Lowry deposits and a contiguous land package that remains underexplored with strong discovery potential.
The Johnny Lee PFS confirms the potential for a low technical risk underground operation and a conventional 1.2Mtpa processing plant producing ~35ktpa of contained copper in the initial four years of operation and an average ~29ktpa of contained copper over an initial eight‑year mine life. These plans are supported by an updated Mineral Resource for Johnny Lee of 22.3Mt at 2.4% Cu (520kt contained Cu) and an updated Ore Reserve of 9.5Mt at 2.9% Cu (270kt contained Cu).
In parallel, Sandfire America has reported an updated Mineral Resource for Lowry of 9.3Mt at 2.3% Cu (210kt contained Cu) which is within ~3km of Johnny Lee and has the potential to be accessed from the planned Johnny Lee underground workings, thereby providing an opportunity to materially extend mine life at a low capital cost.
A copy of Sandfire America’s TSX News Release describing the PFS outcomes and Mineral Resource and Mineral Reserve estimates prepared in accordance with NI 43-101 can be found at this link. A summary JORC Code (2012) Table 1 is attached as Appendix.
Sandfire’s Chief Executive Officer and Managing Director, Mr Brendan Harris, said:
“The completion of the Johnny Lee PFS marks a significant milestone for Sandfire America and I’d like to congratulate Lincoln and his team for taking the Black Butte Project one step closer to its ultimate development.
“All good projects in our industry are ultimately underpinned by high quality reserves and resources, and that’s why we’re particularly pleased to see the significant increase in tonnage that recent drilling and updated modelling assumptions have delivered at both Johnny Lee and Lowry. With all key permits in place, and the potential upside that the satellite Lowry deposit provides, Black Butte is well placed as one of the few near shovel ready copper projects in the United States.
“Having achieved this important milestone, Sandfire America is also ideally positioned to benefit from the tight fundamentals projected for the global copper market and the supportive investment environment for critical minerals projects located within the United States.
“As previously indicated, the completion of this significant body of work by the Sandfire America team and the announcement of the updated mineral resource and ore reserve estimates will enable Sandfire to appropriately assess the project’s strategic fit within our global portfolio.”
