- Newly listed mining company Sierra Rutile (SRX) kicks off a definitive feasibility study (DFS) for its Sembehun project in Sierra Leone
- Sembehun is considered one of the largest and highest grade natural rutile deposits in the world
- A preliminary feasibility study (PFS) found expansion into the Mine Lease Area 5 would produce around 13.6 million tonnes of ore annually, expanding the mine life by 13 years
- Hatch, who completed the PFS, will also undertake the DFS, which will be funded by existing cash reserves and operating cashflow, with completion expected in 12 months
- SRX shares end the day in the grey to close at 29.5 cents
Sierra Leone-based mining company Sierra Rutile (SRX) has begun a definitive feasibility study (DFS) for its Sembehun project.
Sembehun, located in Sierra Leone, is closely situated to other SRX mining operations, and is considered one of the largest and highest grade natural rutile deposits in the world.
The previous preliminary feasibility study (PFS) completed found expansion into the Mine Lease Area 5 (MLA 5) would produce around 13.6 million tonnes of ore per year and expand the mine’s life by 13 years.
The DFS will be funded by existing cash reserves and operating cashflow, and is expected to be complete in around 12 months, allowing the company to make a final investment decision for the mine towards the end of 2023.
Consulting engineers Hatch, who completed the PFS, have once again been brought on to undertake the DFS.
“We are pleased to commence the Sembehun DFS on schedule following our recent demerger and ASX listing,” Managing Director and CEO, Theuns de Bruyn said.
“Sierra Rutile is already one of the largest natural rutile producers in the world, and Sembehun is one of the largest and highest grade natural rutile deposits in the world.
“So we are very well positioned to significantly extend our mine life and continue to deliver value to our shareholders through the development of Sembehun.”
Sierra Rutile demerged from Iluka Resources and listed on the ASX, just over a month ago, and the company is planning on releasing their first financial report in February 2023.
SRX shares ended the day in the grey to close at 29.5 cents.