Slide 1: March 2017 Quarterly Report Presentation and Webcast
For personal use only March 2017 Quarterly Report Presentation and Webcast 27 April 2017 Access this presentation at: http://webcasting.boardroom.media/broadcast/58e584458ac6f038fedd5fc0 or http://www.sandfire.com.au Follow-up diamond drilling underway at the Donnington porphyry copper-gold prospect
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements For personal use only This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the date of this presentation. The presentation is in summary form
Slide 3: Important Information and Disclaimer: Competent Person's Statements
Important Information and Disclaimer Competent Person’s Statement – Ore Reserves and Mine Plan The information in this report that relates to Ore Reserves and Mine Plan is based on information compiled by Mr. Neil Hastings who is a Member of The Australasian Institute of For personal use only Mining
Slide 4: Agenda
Agenda For personal use only ► Highlights ► Safety ► Operations ► Development Monty Project Black Butte ► Exploration Doolgunna NSW ► Summary & Outlook 4
Slide 5: March 2017 Quarterly Highlights
March 2017 Quarterly Highlights Production and Operations For personal use only ► March 2017 Quarter: 16,256t copper and 8,988oz gold produced; C1 US$0.94/lb ► FY2017 guidance maintained: 65-68kt of contained copper, 35-40koz of contained gold; lower end of C1 guidance US$0.95-1.05/lb Development ►
Slide 6: Safety
Safety Total Recordable Injury Frequency Rate (TRIFR) of 5.7 at Quarter-end (vs. 6.8 at For personal use only ► December 2016 Quarter-end) ► Safety systems development and critical control management – ongoing ► Focus being applied to improving safety leadership, culture and assurance controls 10 TR
Slide 7: Operations – Mining
Operations – Mining For personal use only Underground production and mine development ► Total ore production for the Quarter of 402,784 tonnes grading 4.4% Cu ► Mine remains in balance between production and back-fill ► Underground ventilation system completed for Conductor 4 and Conductor 5 ► Under
Slide 8: Operations – Processing
Operations – Processing For personal use only Mill throughput ► 405,025 tonnes milled at average head feed grade of 4.4% Cu Recovery ► Quarterly copper recovery of 91.3%; Gold recovery 44.3% (FY2017 guidance: copper ~91%, gold ~43%) ► Further improvements to recovery in FY2018 with additional roughe
Slide 9: Operations – Sales
Operations – Sales For personal use only ► Sales of 63,507 tonnes of concentrate (dry) containing 15,160 tonnes of copper (14,524 tonnes payable) and 8,222 ounces of gold (7,616 ounces payable) ► 6 shipments completed for the quarter 9
Slide 10: Operations – Unit Operating Costs
Operations – Unit Operating Costs Q3FY2017 For personal use only Unit costs – DeGrussa Mine Commentary (US$/lb) Mining (net of development) 0.39 Processing 0.29 Pleasing cost performance at both a gross and unit Business services 0.12 cost level. Q4 FY2017 C1 costs expected to approach US$1.00/lb wi
Slide 11: Development – Monty Copper-Gold Project
Development – Monty Copper-Gold Project ►Sandfire is Manager of the Springfield JV – interests For personal use only Sandfire 70%/Talisman 30% ►Feasibility Study completed: – Ore Reserve – 0.92Mt at 8.7% Cu and 1.4g/t Au for 80,000t Cu and 42,000oz Au – Mine Plan – 0.80Mt at 9.4% Cu and 1.5g/t Au fo
Slide 12: Development and Growth – Emerging VMS Field
Development and Growth – Emerging VMS Field For personal use only ► 67% increase in Mine Plan ore since initial discovery of DeGrussa in 2009 12
Slide 13: Development and Growth – Black Butte Copper Project, USA
Development and Growth – Black Butte Copper Project, USA ► 61% stake in Black Butte Copper Project, central Montana (via stake in For personal use only Tintina Resources Inc) ► Advanced, high quality copper project in stable jurisdiction: – NI 43-101 Measured and Indicated Resources of 15.7Mt gradin
Slide 14: Doolgunna Exploration Overview
Doolgunna Exploration Overview Exploration continuing as a priority along highly prospective VMS For personal use only ► corridor that hosts the DeGrussa and Monty deposits: – RC drilling at the Red Bore East Prospect to test the C5 host stratigraphy along strike from DeGrussa – The continuation of
Slide 15: Doolgunna Exploration Overview
Doolgunna Exploration Overview ► Exploration advancing at multiple prospects within Greater Doolgunna area: For personal use only ► ~18,000m of AC/RAB and RC drilling during the quarter ► Committed to in-ground spend with over ~ 121,000m drilled FY to date ► Farm-in deal completed with Great Western
Slide 16: Donnington Prospect, Temora - 100% Sandfire
Donnington Prospect, Temora - 100% Sandfire ► New porphyry system intercepted at Donnington, Temora in New South For personal use only Wales ► First diamond hole at prospect intersected – 125m @ 0.3% copper and 0.5g/t gold including – 44m and 28m at 0.4% copper and 0.6g/t gold ► Porphyry-style miner
Slide 17: Donnington Prospect, Temora - 100% Sandfire
Donnington Prospect, Temora - 100% Sandfire ► Mineralisation associated with quartz-magnetite-pyrite-chalcopyrite For personal use only veined stockwork surrounding a narrow porphyry intrusive Location of TMMRD006 on regional aeromagnetics ► Associated weak magnetic anomaly, untested anomalies along
Slide 18: Summary & Outlook
Summary & Outlook ► Strong and consistent production and cost performance: For personal use only – FY2017 guidance maintained: 65-68kt contained copper, 35-40koz contained gold, C1 cost lower end US$0.95-1.05/lb ► Original $380M DeGrussa finance facility now fully repaid ► Monty Feasibility Study, O
Slide 19: Appendix: Monty Project
Appendix: Monty Project For personal use only Cu Au Contained Contained Mt (%) (g/t) Cu (t) Au (oz) Mineral Resource 1.05 9.4 1.6 99,000 55,000 Ore Reserve 0.92 8.7 1.4 80,000 42,000 Mine Plan 0.80 9.4 1.5 74,000 38,000 Table 1: Monty Mineral Resource, Ore Reserve and Mine Plan (100% basis) ► The Mi
Slide 20: Contact Details: Sandfire Resources NL
For personal use only Contact Details: Sandfire Resources NL Registered Office and Principal Place of Business Level 1, 31 Ventnor Avenue, West Perth, Western Australia 6005 T +61 8 6430 3800 F +61 8 6430 3849 www.sandfire.com.au 20