Black Butte Feasibility Study dated 8 December 2020

For those that may have missed it, on 10 December 2020 Sandfire Resources America Inc. filed on SEDAR an independent technical report prepared under National Instrument 43-101 entitled “Sandfire Resources America Inc., Black Butte Copper Project, Feasibility Study (Johnny Lee Deposit) and Mineral Resource Estimate Update (Lowry Deposit) – Technical Report NI 43-101”. The report was dated 8 December 2020.

The report is 29 Mb on www.sedar.com (make sure you search for 10 December 2020 as date of lodgement)

Sandfire Resources America Inc. (SRA) is pleased to announce the results of a Feasibility Study ('FS') for its 100% owned Black Butte Copper Project (the Project) in Meagher County, Montana.

The FS Case builds on, and replaces, the Updated Preliminary Economic Assessment ('PEA') published on July 12, 2013.

This Technical Report also includes an updated Mineral Resource for the Lowry deposit which is located approximately 2 km SE of the Johnny Lee deposit. The Lowry deposit Mineral Resources are not part of the Mineral Reserve.

1. The project has a pre-tax NPV of US$124.9 M and a post-tax NPV of US$77.6 M using a 5% discount rate;
2. The project has a pre-tax IRR of 17% and a post-tax IRR of 13%;

Mineral Reserve Estimate
A NSR was calculated for each block in a block model based on metallurgical recovery, grade, and payability factors. Mine design shapes were created to reach a cut-off value of US$70/t which was used for guidance to create detailed designs. All mining blocks then had dilution and recovery applied to them and were tested for economic viability. Summary Mineral Reserve statements for the Black Butte Copper Project are listed below.

	Column 1	Column 2	Column 3	Column 4
1
2
3
4	Class	Diluted Tonnes	Cu Grade	Contained Cu Metal (t)
5	Proven	1,998,000	3.0%	60,700
6	Probable	6,804,000	2.4%	165,400
7	Total	8,802,000	2.6%

Notes:

1. The Qualified Person for the Mineral Reserve estimate is Brad Evans MAusIMM CP (Mining).
2. Effective date: October 19, 2020. All Mineral Reserves have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum ('CIM') definitions, as required under NI 43-101.
3. Mineral Reserves were estimated using a US$3.10/lb Cu price and a NSR cut-off value of US$70/t.
4. Tonnages are rounded to the nearest 1,000 t, metal grades are rounded to one decimal place. All units are metric.
5. Rounding as required by reporting guidelines may result in summation differences.
6. Average metallurgical recovery is 84%.

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.