Core Insights - The updated Preliminary Feasibility Study (PFS) for the Johnny Lee Deposit highlights significant high-grade underground copper potential, with a Probable Mineral Reserve of 9.5 million tonnes at 2.9% copper, equating to 270,000 tonnes of copper, supporting an 8-year mine life at the Black Butte Copper Project in Montana, USA [1][5][6] - The updated Mineral Resource estimate for the nearby Lowry Deposit indicates a growing opportunity for future expansion beyond the initial mine plan [7][8] Group 1: Project Overview - The Black Butte Copper Project encompasses 8,078 hectares, including 7,684 hectares of fee simple lands and 1,040 unpatented mining claims [8] - The Johnny Lee Deposit consists of two mineralization zones: the upper copper zone (JL UCZ) and the lower copper zone (JL LCZ) [9][50] Group 2: Economic Analysis - The construction capital cost is estimated at US$474 million, with average annual post-tax cash flows projected at US$78 million for the first five years [4][5] - The project is expected to generate US$2.3 billion in gross revenue and US$1.0 billion in pre-tax net cash flow, based on a copper price of US$4.70 per pound [5][19] - The pre-tax NPV at an 8% discount rate is estimated at US$143 million, with an IRR of 13.6%, while the post-tax NPV is US$99 million with an IRR of 11.3% [19] Group 3: Mineral Resource and Reserve Estimates - The updated Measured and Indicated Mineral Resource for the Johnny Lee Deposit is 18.9 million tonnes at 2.4% copper, containing 462,000 tonnes of copper, with an Inferred Mineral Resource of 3.4 million tonnes at 1.9% copper [5][49] - The Lowry Deposit has a Measured and Indicated Resource of 6.6 million tonnes at 2.4% copper, containing 154,000 tonnes of copper, and an Inferred Mineral Resource of 2.8 million tonnes at 2.1% copper [33][39] Group 4: Mining and Processing - The mining method for the Johnny Lee Deposit will utilize a drift and fill approach, with a processing plant designed to produce approximately 35,000 tonnes of contained copper annually in the first four years [12][54] - The average annual production is projected at around 29,000 tonnes of copper metal over the initial 8-year mine life, with a direct operating cash cost of US$2.56 per pound [5][19] Group 5: Environmental and Legal Considerations - The project has undergone a comprehensive Environmental Impact Statement process, with a positive record of decision received from the Montana Department of Environmental Quality [10][71] - The Montana Supreme Court has upheld the Mine Operating Permit, allowing the company to proceed with construction [11][74] Group 6: Future Outlook - The company aims to advance the project through the completion of a feasibility study, emphasizing a commitment to responsible mining practices and long-term economic benefits for the local community [6][8]
Sandfire Resources America Announces Results of Updated Pre-Feasibility Study for the Johnny Lee Deposit and Updated Mineral Resource for the Lowry Deposit at the Black Butte Copper Project