Degrussa

The DeGrussa copper, gold and silver mining operation began production in early 2012 and is presently building production to between 70 and 80 thousand tonnes of copper and 36,000 ounces of gold a year.

DeGrussa is Destined to Become Australia's Largest Copper Mine
The DeGrussa Mine at Doolgunna, in the Murchison Region of Western Australia, about 900 kilometres north of Perth, is being developed as both an underground, as well as an open pit operation. It is destined to become Western Australia's largest copper mine with resources of 742,000 ounces of gold and 652,000 tonnes of contained copper.

The DeGrussa Open Pit
The open pit itself is expected to produce 143,000 tonnes of DSO (Direct Shipping Ore ) with a grading of 25.6 percent copper and 2.5 grams a tonne of gold. This is expected to return 37,000 tonnes of copper.

The Degrussa Underground Mine
During its lifetime the DeGrussa underground operation will mine an expected 10.72 million tonnes of ore grading at five percent copper and 1.7 grams per tonne of gold. This will return around 599,000 ounces of gold and 541,000 tonnes of copper. The sulphide present in the underground deposit will also be processed by means of a traditional 1.5 million tonnes a year flotation plant.

The DeGrussa Processing Plant
The DeGrussa processing plant produces concentrate at a rate of 300,000 tonnes annually with a grading of 27 percent copper for the first two years up to 2015 and 220,000 tonnes annually from 2016 going forward over the life of mine (LOM). Total copper production will amount to 480,000 tonnes along with 270,000 ounces of payable gold.

Impressing First Earnings at the DeGrussa Operations
The maiden profit, after income tax, made by Sandfire Resources from early mining at the DeGrussa Mine at the end of the December half year of 2012 amounted to $79.1 million. During this period it had produced 21,411 ounces of gold and 37,573 tonnes of copper. This revenue came from the mining of a high grade DSO chalcocite from the open pit. The underground mine that will come on board mid -2013 will have the processing plant handling primary sulphide ore.

DeGrussa Mine Features
The DeGrussa Mine has the following features:
- An airstrip. Capable of handling 100 seat aircraft
- An accommodation village. Containing 600 rooms along with recreation and sporting facilities, a bar and mess house
- Fibre optic communication. Located throughout the site as well as a Next G mobile phone service
- DSO Ore is trucked to Port Hedland. From where it is exported across Asia
- A 1.5 million tonne a year flotation processing plant. That also includes crushing, milling and classification circuits. The plant also includes a de-watering facility and filtration facility
- An underground and open pit mine. Direct Shipping Ore (DSO) from the open pit is exported with little processing being undertaken but chalcocite and sulphide ore from the open pit is put through the milling process to create a copper concentrate.

Sandfire Resources NL is Australia's newest copper, gold and silver producer as a result of the DeGrussa Mine coming online in February 2012. From when the discovery of the ore body was made in 2009 a comprehensive resource drill out was undertaken, followed by a comprehensive feasibility study and subsequent mine development, all within a period of less than three years.
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