Sandfire Resources (ASX:SFR) hopes to begin underground mining at its flagship DeGrussa project in the coming year.
The Department of Mines and Petroleum of Western Australia has granted it the mining lease for its copper and gold deposits besides the approval for its treatment facility, accommodation buildings and supporting infrastructure at the Meekatharra site.
Karl Simich, company mining director, said that it was a significant milestone on the back of last month's news confirming the deposits contain about 644,000 tonnes of copper and 724,000 ounces of gold. He also said that today’s spot metal prices the contained ore body value would approach something like Australian $7 billion.
Mining Lease grant comes after the signing of a second Land Access Agreement with the Gingirana Native Title claimant group. This is in addition to the recently announced signing of a similar agreement with the Yugunga Nya Native Title group with the company.
Mr Simich called it a fantastic early Christmas present for the team which brought the year to a suitably upbeat and forward looking conclusion.