Name and Location
Carrapateena copper/gold project, Australia.

Client
OZ Minerals.

Project Description
The Carrapateena project prefeasibility study (PFS) demonstrates that the project is technically and financially viable, with a risk and opportunity profile that is competitive with, or better than, other global long-life copper assets at a similar stage of development.

The PFS indicates that block caving is technically feasible.

The mine will produce a high-quality copper/gold concentrate, with uranium below typical penalty levels and no arsenic.

The average production rate is estimated at 114 000 t/y of copper and 117 000 oz/y of gold at an assumed steady state.

The PFS estimates a mine life of 24 years, from a plant operating at a production rate of 12.4-million tonnes a year.

Net Present Value/Internal Rate of Return
The project has a net present value of $1.146-billion post-tax at an 8% real discount rate, and an internal rate of return of 13%.

Value
The PFS estimates the capital cost of the project at $2.985-billion.

Duration
The expected completion date of the project has not been disclosed.

Latest Developments
OZ Minerals has suspended its search for a joint venture partner for its Carrapateena project, while the company looks to maximise the medium- to long-term value of the copper asset.

OZ Minerals CEO Andrew Cole says the company will suspend its data room and partnering process until the value-add initiatives have been completed, and the results of these integrated into a PFS.

He notes that initial concentrate treatment tests conducted last year have indicated that the project’s copper concentrate grade could be nearly doubled from the existing 30% to 35% up to 55% to 60%.

“These results warrant us progressing with a demonstration plant at a total cost of A$18-million in 2015, to verify the process scalability to full production,” he says.

Further, the recently announced infrastructure partnership with the South Australian government, under which OZ Minerals would collaborate with the state government on the development of infrastructure solutions, will allow OZ Minerals to explore significantly lower capital development costs for Carrapateena by transporting ore to the existing production facilities at Prominent Hill.

The state government has also agreed to provide A$10-million in funding for testwork, at a demonstration plant scale, for a hydrometallurgical process that could result in significant benefits for the Carrapateena project.

Twenty-five parties have indicated their interest in partnering in the development of the Carrapateena project, including major and midtier mining companies, potential offtake partners, royalty participants and State-owned enterprises.

On Budget and on Time?
Not stated.

Contact Details for Project Information
OZ Minerals investor and external relations, Natalie Worley, tel +61 3 9288 0345 or email natalie.worley@ozminerals.com.