PERTH (miningweekly.com) – Metals miner Oz Minerals has withdrawn from its Jamaica joint venture (JV), transferring its interest in the exploration assets to Canada-based Carube Copper Corporation.
“After a comprehensive review of exploration results, we determined that while copper porphyry style mineralisation was identified at multiple prospects, the drill intersected grades weren’t indicative of the types of deposits we are looking for,” Oz Minerals CEO Andrew Cole said on Thursday.
“Capital discipline is a core part of our strategy and while the Jamaican exploration programmes were completed on time and budget, we decided not to invest further in the programme.”
Oz Minerals has earned a 70% interest in the tenements making up the Bellas Gate JV, and is earning an initial 40% interest in the Rodinia JV. Following the withdrawal, Oz could receive up to A$14-million in cash payments, and a 2% royalty in the event that Carube started commercial production at the assets.
Cole said that Oz Minerals was committed to building a pipeline of opportunities and rigorously progressing these projects.
“If at any time it is determined that a project does not meet target objectives, we will cease expenditure and withdraw from the arrangement.”
He noted that the company would continue to carry out due diligence on exploration projects, as well as established projects, with the company maintaining its 2016 exploration guidance of between A$10-million and A$15-million.