Sandfire Resources celebrates DeGrussa mine opening

THE BOURSE WHISPERER: Sandfire Resources (ASX: SFR) celebrated the official opening of the company’s DeGrussa copper mine and The Roadhouse was there.

The mine was officially opened by Colin Barnett the Premier of Western Australia.

The opening comes just over four years after Sandfire first discovered the high-grade DeGrussa VMS copper-gold deposit. 

Watch our interview with Sandfire Resources managing director Karl Simich

Sandfire commenced mining at DeGrussa via a 2-year open pit operation in conjunction with the development of a longer-term underground mine which is now ramping up to a full production rate of 1.5 million tonnes per annum.

Ore is fed to an on-site concentrator which produces copper concentrate grading 25 per cent copper that is subsequently transported for export through Port Hedland and Geraldton.

DeGrussa has already produced over 70,000 tonnes of copper metal and 50,000 ounce of gold worth over $500 million since operations started.

Sandfire produced 64,017 tonnes of copper and 42,697oz of gold for the 2013 financial year.

The company is moving towards ramp-up to full nameplate production and has provided production guidance for the 2014 financial year of 65-75,000 tonnes of contained copper-in-concentrate and 35-45,000 ounces of gold

Sandifre claims tis will position DeGrussa as Western Australia’s largest copper mine.

Sandfire expects to be spending approximately $20 million per year on exploration in Western Australia.

It also has an active Business Development program both in Australia and offshore with $10 million of committed exploration and business development expenditure.