PERTH (miningweekly.com) – ASX-listed Sierra Rutile on Thursday announced that the current definitive feasibility study (DFS) at its Sembehun project, in Sierra Leone, will be adjusted to assume full development rather than a phased approach.
The company in September last year launched the DFS continuing the phased development approach originally considered in the prefeasibility study. However, after looking at a range of factors, the board has now decided to adjust the basis of the DFS to assume full development.
The factors considered in this decision included project execution efficiencies, minimising the risk of uneconomic production prior to full production, fiscal uncertainty relating to Area 1 operations, maximising project valuation, and simplifying and maximising funding availability.
The company told shareholders that the change in basis of the DFS is not expected to materially impact the timetable for the DFS, which is still expected to complete by the end of 2023, and with a final investment decision on the project anticipated for early 2024.
“Sembehun studies continue to progress well, with the DFS on schedule to complete by the end of this year. As a part of this process, we have decided to develop Sembehun as a single development, replacing the originally planned phased approach for the project,” said Sierra Rutile FD Martin Alciaturi.
“This provides a number of advantages to maximise project value and debt capacity. With the DFS well underway, we are pleased to have appointed global mining finance advisers, Cutfield Freeman & Co, as debt advisers for Sembehun. We are very focused on retaining our major role in global rutile supply and adding significant long term shareholder value through the development of Sembehun.”