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 launched a scoping study at its Carrapateena project, after the identification of a 61-million-tonne high-grade resource, grading 2.9 g/t copper equivalent.

Oz Minerals suspended its search for a joint venture partner for the Carrapateena project in February, instead undertaking value-add initiatives at the project area.

As part if this strategy, Oz, in April, committed to evaluating three development options for the Carrapateena project – a standalone block cave project, a Gawler Craton strategy linking Carrapateena to the Prominent Hill mine through a 250 km rail line, and a high-grade option.

It was while investigating the high-grade option that existing data identified the high-grade resource.

The scoping study aims to define a potential mining and processing project of up to three-million tonnes a year, with a capital spend of less than A$1-billion.

Included in this study will be an assessment of early mine access options.

While all three development options for Carrapateena remain actively under consideration, Oz MD and CEO Andrew Cole has said the higher-grade project will initially involve mining the high-grade bornite and chalcopyrite core using a selective mining method, already implemented at the Prominent Hill underground mine.

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.