Sandfire hits the button at new Monty mine in WA

Sandfire Resources hits the button on first blast at its new Monty mine in WA

Nick Evans
Monday, 7 August 2017 2:00AM


Sandfire Resources is eyeing off a major new base metals province in the Doolgunna region.Picture: Nick Evans, The West Australian

Sandfire Resources pushed the button on the first blast at its new Monty copper mine yesterday, marking out the next stage of development of what managing director Karl Simich believes will be a major new base metals province in the Doolgunna region of WA.

Yesterday’s blast was the start of the box-cut at the underground mine. When construction is complete in 18 months, Monty will add a high feed to the processing plant at Sandfire’s DeGrussa copper mine, about 14km away, and extend the life of the operation.

Speaking at the company’s exploration offices at DeGrussa, Mr Simich admitted it was tough to convince an impatient market that it was only a matter of time before the $20 million that Sandfire was pumping into the ground in the region each year translated into further discoveries.

Sandfire’s most recent quarterly results were greeted with a shrug by many analysts and, with five years of mine life remaining at DeGrussa, the pressure on the company will grow as the clock ticks down.

“The market is an animal, the market is a beast,” Mr Simich said. “And to a large extent it is very reactionary. It is difficult for it to have that longer view on perception on certain things — it is a here-and-now proposition.”

Mr Simich said the evidence was now clear that DeGrussa was part of a volcanogenic massive sulphide system, and those systems occurred in clusters.

“When we made the discovery they thought we were never going to make another discovery,” he said.

“Now we’ve made another discovery they’re saying, well you’ll never make another one.

“And when we make another one there will be a school of thought saying there’s nothing more to be made. So patience is not a very big thing for commentary in the market.”

Mr Simich said Sandfire would stand by its methodical and systematic approach to exploring its 5000sqkm footprint in the Mid West.

“Statistically you would be making, I think, a great error of judgment to bet against the likelihood of there being another discovery,” he said.

The reporter travelled as a guest of Sandfire.







................................................................................................................................................................................................