OZ Minerals to fast-track planning for the Carrapateena mine

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Image credit: OZ Minerals ASX release

OZ Minerals has announced that it will accelerate planning of its world-class Carrapateena copper-gold mine located in South Australia’s highly prospective Gawler Craton, approximately 160 kilometres north of Port Augusta.

Image credit: OZ Minerals ASX release
Image credit: OZ Minerals ASX release

The company’s next steps for developing the project include commencing a prefeasibility study (PFS) that draws on the extensive work already completed, as well as exploring opportunities to increase throughput from 2.8Mtpa to a maximum of 4.8Mtpa through cut-off grade optimisation and the addition of an alternate ore handling system by mid-2016.

The plan also includes drilling four holes with the aim of upgrading the mineral resource to Measured status and sample drill core form metallurgical testing by mid-2016.

OZ Minerals said it will cease work on all block cave mining option, and commit approximately $20 million in 2016 to complete the substantial work already undertaken including PFS, drilling and permitting activities.

Adertisement

The company said it hopes to start building the project at a “low point in the commodity cycle” when it is less expensive to develop and when the typical risks of schedule and capital overruns are lower.

“Our plan for Carrapateena to become a world-class project that generates strong returns has taken a big step forward,” said Oz Minerals’ Managing Director and CEO, Mr Andrew Cole.

“Whatever lens you look through, whether it is value, rate of return, grade cost, mine life, production profile, jobs or scalability, we believe Carrapateena will be an outstanding project.”

SA Treasurer Tom Koutsantonis welcomed OZ Minerals’ announcement that it will fast-track planning on the Carrapateena copper mine, saying the $770 million project could create up to 400 jobs during the construction phase and a further 400 operational jobs once it enters production in 2019.

“While there is still work required before OZ Minerals will finalise their mining plans and apply for a mining lease, today’s decision is an important milestone for the world-class copper deposit,” the Minister said.

“It has the potential to deliver significant jobs and investment in South Australia, in particular for the State’s North. The State Government also supports the focus placed by OZ Minerals on maximising the social and economic value of the project for the local community, including a partnership with the Kokatha people.”