Name of the Project
West Musgrave nickel/copper project.

Location
The project is located 20 km from Jameson, in Western Australia.

Client
Cassini Resources and OZ Minerals.

Oz Minerals has earned a 51% interest in the West Musgrave nickel/copper project, in Western Australia, after spending A$22-million on the project area.

Project Description
The West Musgrave project encompasses the Nebo-Babel nickel/copper sulphide deposit and the Succoth copper deposit.

A further scoping study on the project has delivered positive outcomes for a large, low-cost mine.

The study advances the development of the Nebo-Babel deposits and has evaluated several development scenarios, ranging from a 6-million-tonne-a-year to 12-million-tonne-a-year throughput, with the ten-million-tonne-a-year scenario having presented the most financial potential.

The Nebo-Babel deposit has total indicated and inferred resources of 283-million tonnes grading 0.36% nickel, 0.39% copper and 137 parts per million cobalt.

The mining operation will have an initial mine life of eight years, with several opportunities to add significant mine life by upgrading the inferred resources to indicated resources and progressing the Succoth mineral resource, and the potential for the advancement of other existing regional exploration targets.

An ore processing plant will be built on site and will comprise conventional crushing, milling and classification circuits followed by two stages of conventional flotation, with cleaning and recleaning to produce separate nickel and copper concentrates.

Average production has been estimated at 20 000 t to 25 000 t of nickel in concentrate and between 25 000 t and 30 000 t of copper in concentrate during the first eight years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax internal rate of return of 25% to 30%, with a payback of two to three years.

Value
The FSS estimates preproduction capital of between A$730-million and A$800-million.

Duration
Following a positive decision to mine, the FSS envisages an 18-month construction period, with the start of production expected in July 2022.

Latest Developments
Oz and Cassini Resources are conducting a prefeasibility study (PFS), with OZ CEO Andrew Cole saying early results have been encouraging.

The PFS is scheduled for completion in the second quarter of 2019.

Meanwhile, the planned 2019 infill drilling programme will also be brought forward to start later this year to enhance the potential feasibility study schedule.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
OZ Minerals, tel +61 8 8229 6600, fax +61 8 8229 6601 or email info@ozminerals.com.