Sandfire moves first shipment of DeGrussa copper

THE BOURSE WHISPERER: Sandfire Resources (ASX: SFR) has sold its first shipment of copper concentrate from the company’s 100 per cent-owned DeGrussa copper-gold mine in Western Australia.

 

DeGrussa copper mine location. Source: Company announcement

 

The maiden shipment comprised 4,958 dry tonnes of copper concentrate grading approximately 22 per cent copper and was produced as part of the commissioning process for the 1.5 million tonnes per annum DeGrussa concentrator.

The company explained this lower grade commissioning concentrate is being produced and sold on a spot basis ahead of its main copper concentrate sales contracts, which are scheduled to commence in January 2013.

To date Sandfire has moved 10 shipments of high-grade Direct Shipping Ore (DSO) chalcocite from the open pit at DeGrussa, totalling 98,489 tonnes grading 28 per cent copper containing 27,555 tonnes of copper metal.

Mining of Stage I of the open pit is now complete with all DSO chalcolcite mined.

Mining of Stage II will continue into mid-2013 extracting further sulphide and oxide copper material.

Sandfire has also inked a further three sales contracts for DeGrussa’s copper concentrate, increasing its total number of sales contracts to four.

The sales contracts, for up to 3-year terms, have been signed with international trading companies and smelters.

Shipments under the sales contracts are scheduled to commence in January 2013 as the company completes its production ramp-up.

“Plant commissioning and production ramp-up at DeGrussa is proceeding with the company on track to achieve steady-state nameplate production rates of 77,000 tonnes per annum of copper in concentrate in early 2013.” Sandfire resources managing director Karl Simich said in the company’s announcement to the Australian Securities Exchange.

“Our first shipment of copper concentrate is another pleasing milestone for our project development team, and represents another great achievement.”

Simich went on to explain Sandfire now has product sales agreements in place, which cover the bulk of its forecast near-term production from DeGrussa.

“Over the next few months we plan to complete production ramp up, ready to commence full scale commercial shipments in the New Year,” he said.