Sheffield Resources Limited · ASX:SFX
Sheffield Resources — Corporate Update (December 2016)
55 slides from Sheffield Resources's corporate update, December 2016
Slide 1: Thunderbird: World's Best Undeveloped Mineral Sands Project
Thunderbird World’s Best Undeveloped Mineral Sands Project Community Consultation December 2016 ASX : SFX 1
Slide 2: Disclaimer
DISCLAIMER PREVIOUSLY REPORTED INFORMATION This report includes information that relates to Exploration Results, Exploration Targets, Mineral Resources, Ore Reserves, a Pre-feasibility Study and Technical Studies which were prepared and first disclosed under the JORC Code 2012. The information was e
Slide 3: Presentation Outline
PRESENTATION OUTLINE • About Sheffield Resources • About Mineral Sands • Thunderbird Mineral Sands Project • Video • Timeline • The Deposit • Mining and Processing • Community • Public Environmental Review • Ports and Logistics • Marine Impacts and Management • Project Water • Bilby Management • Fir
Slide 4: About Sheffield - Vision and Values
ABOUT SHEFFIELD - VISION AND VALUES Vision To build a successful mining company that will deliver superior returns for all stakeholders Values Honesty and integrity in dealings Putting health and safety first Being environmentally responsible Supporting and partnering with the communit
Slide 5: Sheffield & Thunderbird
SHEFFIELD & THUNDERBIRD Discovery to Production ASX listed December 2010 Initial drill hole to BFS in 4 Years 2013 Explorer of the year 2013 Diggers and Dealers Best Emerging Company Award Lead Agency status with Department of Mines and Petroleum Targeting first production from Thunderbird
Slide 6: What Are Mineral Sands?
WHAT ARE MINERAL SANDS? Deposits of mineral sands are formed along coastlines where the heavier minerals have been concentrated by wave and wind action. Mineral sands deposits are forming in the present environment King Sound Port Beach, Broome 6
Slide 7: What Are Mineral Sands? Products
WHAT ARE MINERAL SANDS? PRODUCTS Zircon and titanium minerals are the products commonly extracted from mineral sands deposits. These are non-toxic minerals with every-day domestic and industrial applications. Zircon Ceramics (tiles, porcelain, tableware), refractory linings (kiln) Global marke
Slide 8: Thunderbird Project Location
THUNDERBIRD PROJECT LOCATION One Arm Point Derby Thunderbird Broome 8
Slide 9: Thunderbird Project Overview
THUNDERBIRD project overview 1. Mineral sands mining and processing project 2. Being developed by Sheffield Resources 3. Large scale 4. Low environmental impacts 5. Long life 6. Construction planned for 2017 7. First exports planned for 2019 8. Expect 140 local permanent DIDO jobs 9
Slide 10: Deposit Geometry
THUNDERBIRD DEPOSIT GEOMETRY Layer of mineral sands 16-42m thick Shallow to north, deeper to south Mining planned to start at shallow end More “overburden” to be removed as deposit gets deeper Water table at ~35m depth 10
Slide 11: Proposed Mining Method
PROPOSED MINING METHOD Mining and Rehabilitation Process The mining process involves restoring the land as closely as possible to its original condition The valuable heavy mineral (about 5% of the ore) is extracted, all other materials placed back into the previously mined void 11
Slide 12: Mining Method
MINING METHOD Dry mining by dozer trap method Screening & trommel to remove oversize Oversize returned to mining void (could be used for road building?) Sand & clay are mixed with water and pumped to wet concentrator Dozer Trap Mining of Dunes, Oversize +2mm North Stradbroke Island 12
Slide 13: Recovery of Products – Wet Concentrator
RECOVERY OF PRODUCTS – WET CONCENTRATOR Separation of clay fraction from sand via a cyclone & thickener Gravity separation of heavy minerals from sand fraction using spirals Uses water – no chemicals needed other than a flocculent to help recover water from clays Waste sand fraction is combi
Slide 14: Mine to Market Logistics Chain
MINE TO MARKET LOGISTICS CHAIN MINING & SITE INFRASTRUCTURE • BFS start dry mining ore rate 7.5Mtpa to 15Mtpa by Year 4 • Conventional dozer trap mining (Jacinth Ambrosia) • Mining commences in shallow northern sector of deposit • WCP, MSP and initial tailings storage facility adjacent to deposit •
Slide 15: Key Targets & Next Steps
THUNDERBIRD KEY TARGETS & NEXT STEPS1 KEY TARGETS • BFS – announced early 2017 • Native Title Agreement 2016/17 • Environmental permitting 2017 • Off-take partner discussions 2016/17 • Funding options assessed 2016/17 • Exploration drilling 2017 • Partner identified 2016/17 • Construction commences
Slide 16: Thunderbird Mineral Sands Project Community
Thunderbird Mineral Sands Project Community 16
Slide 17: A Project for the Community
THUNDERBIRD– A PROJECT FOR THE COMMUNITY • In excess of 140 direct full time jobs from the regional community. • Substantially more employment via indirect support for the operations • Significant business opportunities including Aboriginal participation • Low environmental impact • Extensive stakeh
Slide 18: Employment, Training & Business Opportunities
EMPLOYMENT, TRAINING & BUSINESS OPPORTUNITIES Operational Stage 40 years + Approximately 140 permanent workforce Preference for locally-sourced DIDO vs FIFO Examples of positions: Environmental officers Plant operators Truck drivers Laboratory assistants Management & supervision Engi
Slide 19: Sustainability
SUSTAINABILITY Native Title Process continues Negotiations with TO representatives are continuing. Agreement anticipated in 2017, consistent with Project timeline. Aboriginal Heritage Heritage Surveys undertaken since 2012 All work programs cleared Aboriginal monitors and participation i
Slide 20: Emerging Community Themes
Emerging COMMUNITY THEMES Engagement and consultation …. community sentiment Social, Economic, Conservation, Commercial 1. Employment and training - local benefit 2. Port user impacts 3. Community safety - dust, noise, emissions, haulage 4. Environment, conservation, water, bilby 5. Indigenous oppor
Slide 21: Public Environmental Review
Thunderbird Mineral Sands Project Public Environmental Review 21
Slide 22: Environmental Studies
THUNDERBIRD Environmental Studies Extensive baseline environmental surveys, commenced in 2012 and ongoing at both the Mine Site and in Derby have included: Flora, vegetation and fauna including targeted Bilby, Stygofauna and SRE surveys Groundwater, surface drainage, soil and landform studies
Slide 23: Public Environmental Review
THUNDERBIRD Public Environmental Review Public Environmental Review State / EPA Controlled Action Commonwealth EPBC Act Joint Assessment Bilateral Agreement Process 1. Sheffield - environment studies, survey, assessment from 2012 - 2016 2. Sheffield - local engagement from 2012 and is ongoing 3. WA
Slide 24: Ports and Logistics Broome and Derby
Thunderbird Mineral Sands Project Ports and Logistics Broome and Derby 24
Slide 25: Port of Derby
THUNDERBIRD Port of Derby Product Transport to Port of Derby (140kms) Mt Jowlaenga Road Great Northern Highway Loch St – ‘major highway’ Jetty Road Existing port facilities and new port facilities for storage and export of bulk products Product export from the Port of Derby Estimated ave
Slide 26: Port of Broome
THUNDERBIRD Port of Broome Product Transport to Port of Broome (150kms) Mt Jowlaenga Road Great Northern Highway Gubinge Road and Port Drive – dedicated heavy vehicle bypass Existing port facilities used for storage and export of packaged products Product export from the Port of Broome Pac
Slide 27: Materials Handling Schedule
THUNDERBIRD Materials Handling Schedule Materials Handling Daily Hours Op Schedule DERBY 24 Est 10 truck return journeys Transport from Mine to Port daily. 7 days a week Product Storage Facility 24 7 days a week Transhipment Vessel Loading 2 x 6 hour periods Approx. 6-10 days a month, daily (tides)
Slide 28: Traffic and Logistics
THUNDERBIRD Traffic and Logistics 1. Buses 140km to and from site accommodation (2 crews) 2. 24 x 7 mining, processing and trucking operation 3. On-site weigh bridge, driver rest area, truck wash down and turning areas 4. Bulk transport in road trains to Derby Port, packaged to Broome 5. Derby = 3 –
Slide 29: Marine Impacts
Thunderbird Mineral Sands Project Marine Impacts 29
Slide 30: Marine Impacts & Management
THUNDERBIRD Marine Impacts & Management Shipping increase in Kimberley Ports areas ~ 3% King Sound supports commercial fisheries, Kimberley aquaculture development zone, recreational fisheries, trocus shell farm & pearl licences. Potential impacts from increased shipping activities: Water po
Slide 31: Marine Impacts
THUNDERBIRD Marine Impacts 31
Slide 32: Project Water
Thunderbird Mineral Sands Project Project Water 32
Slide 33: Groundwater Subareas of the Canning Kimberley Groundwater Area
Groundwater Subareas of the Canning Kimberley Groundwater Area Two major aquifers beneath the Dampier Peninsula. Broome Sandstone aquifer is 38- 383m in thickness and sits above the Wallal Sandstone aquifer. Thunderbird The sandy soils and the expanse of Broome the Peninsula means that there is Grou
Slide 34: Water Needs
THUNDERBIRD Water Needs Groundwater Dampier Peninsula – significant amounts of water Broome Sandstone and Wallal Sandstone aquifers Thunderbird is located in the Canning-Pender Subarea (50GL/yr) DoW Distinct from Broome groundwater area (51GL/yr) DoW Thunderbird Water Needs Thunderbird is
Slide 35: Water Needs: Management of Impacts
THUNDERBIRD Water Needs Management of Impacts - Water Permit - Part IV Environmental Protection Act 1986 approval Permit - Rights in Water and Irrigation Act 1914 approvals, DoW Sheffield best practice commitment Environmental Performance Environmental Management System Implementation of a
Slide 36: Water Needs
THUNDERBIRD Water Needs 1. Mine and mineral separation activities require water 2. Water -recycled within the processing circuit 3. Early years - water demand met by Broome Aquifer borefield 4. Later mining years - mine will be dewatered 5. When dewatering volume exceeds demand, excess will be reinj
Slide 37: Groundwater Modelling Year 15
THUNDERBIRD Groundwater Modelling Year 15 • Bores will be constructed to about 120 m and target the Broome Aquifer. • For the first 15 years, up to 15 bores will be required to achieve sufficient process water supplies 37
Slide 38: Groundwater Modelling Year 32
THUNDERBIRD Groundwater Modelling Year 32 • Dewatering will be needed to keep the pit dry • After approximately Year 32, up to 40 bores may be required to maintain dry mining conditions. 38
Slide 39: Groundwater Modelling Year 47
THUNDERBIRD Groundwater Modelling Year 47 • Groundwater mounding up to about 13m at the end of mine life • Unsaturated zone is more than 30m deep, ie no surface-waterlogging • Two years post-mining, drawdown has declined from 40m to less than 7.5m • After 10 years post-mining the drawdown is confine
Slide 40: Water Impact Management
THUNDERBIRD Water Impact Management Flooding Fraser River Design will not cause or Mine site vegetation not dependent on increase flood risk groundwater Potential groundwater dependent ecosystem 5km SE of site Monitor, manage, aquifer reinjection Water quality Surface water Testing shows m
Slide 41: Bilby Management
Thunderbird Mineral Sands Project Bilby Management 41
Slide 42: Greater Bilby
Greater Bilby 1. Conservation Significant species (Federal and State) 2. Distribution across Australia has decreased significantly 3. Dampier Peninsula supports significant Bilby populations 4. Zoologists conducted fauna surveys in project area including targeted Bilby surveys (2012- 2015) 5. Bilby
Slide 43: Greater Bilby – Potential Impacts
THUNDERBIRD Greater Bilby – Potential Impacts 1. Fragmentation of habitat 2. Land clearing causing injury or death 3. Vehicle strike causing injury or death 4. Increased predations causing injury or death 5. Altered fire regimes causing injury, death or loss of habitat 6. Light and noise emissions d
Slide 44: Greater Bilby – Proposed Management
THUNDERBIRD Greater Bilby – Proposed Management 1. Minimising clearing of Bilby habitat 2. Progressive rehabilitation of mined areas over time to restore habitat 3. Pre-clearance surveys prior to habitat disturbance 4. Vehicles not allowed to leave access tracks or cleared areas 5. Speed limits appl
Slide 45: Fire Management
Thunderbird Mineral Sands Project Fire Management 45
Slide 46: Fire Management
THUNDERBIRD Fire Management • Within Mt Jowlaenga pastoral lease • Low, sparse Eucalypt woodlands with Acacia and grass understoreys • Currently subject to planned & unplanned burns • Increasing fire trend within Dampier Peninsula • Fire can change ecosystems (frequency and intensity of burns) • Pro
Slide 47: Community Health and Safety
Thunderbird Mineral Sands Project Community Health and Safety 47
Slide 48: Road Impacts
THUNDERBIRD Road Impacts 1. Buses 140km to and from site accommodation camp; contractor 2. 2 crews 3. 24 x 7 mining, processing and trucking operation 4. On site weigh bridge, driver rest area, truck wash down and turning areas 5. Bulk transport in road trains to Derby, packaged to Broome 6. 3 – 4 c
Slide 49: Road Safety, Loch Street, Derby
THUNDERBIRD Road Safety, Loch Street, Derby • Loch Street door knock, 31 Aug 16 Concerns: trucks, people on street at night, noise, dust Mitigate: fix road bump, set times at night, covered loads, safety management • Consultation: undertaken with Main Roads, DoT, WAPOL, Roadwise, St Johns, WACH, DEM
Slide 50: Radiation Management, Derby
THUNDERBIRD Radiation Management, Derby • Radiation occurs naturally in the environment, including in mineral sands • The ilmenite to be exported through Derby Port has a very low radioactivity level which is considered inherently safe under all national and international guidelines 50
Slide 51: Closure and Rehabilitation
Thunderbird Mineral Sands Project Closure and Rehabilitation 51
Slide 52: Proposed Mining Method
THUNDERBIRD Proposed Mining Method Mining and Rehabilitation Process in Detail The mining process involves restoring the land as closely as possible to its original condition The valuable heavy mineral (about 5% of the ore) is extracted, all other materials placed back into the previously mined
Slide 53: Project Closure and Rehabilitation
THUNDERBIRD Project Closure and Rehabilitation 1. Mine Closure Plan prepared as part of PER 2. Land to be returned to current land use (pastoral) 3. Only 1 constructed landform to remain – initial Tailings Storage Facility 4. Progressive process: a) Mine wastes returned to void b) Tailings (process
Slide 54: Summary
THUNDERBIRD Summary THUNDERBIRD – A LONG LIFE PROJECT THAT WILL BENEFIT ALL STAKEHOLDERS Large-scale, long-life project Benign mineral products with every-day household applications Sound cash margins at long term forecast prices, still cash positive at low points in pricing cycles Very low
Slide 55: Thank You!
THANK YOU! For further information please contact: Sheffield Resources Ltd Level 2, 41-47 Colin Street West Perth WA 6005 Ph +61 (8) 6555 8777 [email protected]
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