Carrapateena, an Exploration and Project Update - SA Explorers
Carrapateena, an Exploration and Project Update - SA Explorers
Carrapateena, an Exploration and Project Update - SA Explorers
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OZ MINERALSCARRAPATEENAAN EXPLORATION &PROJECT UPDATEMICK <strong>SA</strong>WYERMICK <strong>SA</strong>WYERSENIOR EXPLORATION GEOLOGISTWWW.OZMINERALS.COM
DISCLAIMERThis presentation has been prepared by OZ Minerals Limited (“OZ Minerals”) <strong>an</strong>d consists of written materials/slides for a presentation concerningOZ Minerals. By reviewing/attending this presentation, you agree to be bound by the following conditions.No representation or warr<strong>an</strong>ty, express or implied, is made as to the fairness, accuracy, or completeness of the information, contained in the presentation or of theviews, opinions <strong>an</strong>d conclusions contained in this material. To the maximum extent permitted by law, OZ Minerals <strong>an</strong>d its related bodies corporate <strong>an</strong>d affiliates, <strong>an</strong>dits respective directors, officers, employees, agents <strong>an</strong>d advisers disclaim <strong>an</strong>y liability (including, without limitation <strong>an</strong>y liability arising from fault or negligence) for <strong>an</strong>yloss or damage arising from <strong>an</strong>y use of this material or its contents, including <strong>an</strong>y error or omission there from, or otherwise arising in connection with it.Some statements in this presentation are forward-looking statements within the me<strong>an</strong>ing of the US securities laws. Such statements include, but are not limited to,statements with regard to capacity, future production <strong>an</strong>d grades, projections for sales growth, estimated revenues <strong>an</strong>d reserves, targets for cost savings, theconstruction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow <strong>an</strong>d debt levels, the outlook for minerals <strong>an</strong>d metalsprices, the outlook for economic recovery <strong>an</strong>d trends in the trading environment <strong>an</strong>d may be (but are not necessarily) identified by the use of phrases such as “will”,“expect”, “<strong>an</strong>ticipate”, “believe” <strong>an</strong>d “envisage”. By their nature, forward-looking statements involve risk <strong>an</strong>d uncertainty because they relate to events <strong>an</strong>d depend oncircumst<strong>an</strong>ces that will occur in the future <strong>an</strong>d may be outside OZ Minerals’ control. Actual results <strong>an</strong>d developments may differ materially from those expressed orimplied in such statements because of a number of factors, including levels of dem<strong>an</strong>d <strong>an</strong>d market prices, the ability to produce <strong>an</strong>d tr<strong>an</strong>sport products profitably, theimpact of foreign currency exch<strong>an</strong>ge rates on market prices <strong>an</strong>d operating costs, operational problems, political uncertainty <strong>an</strong>d economic conditions in relev<strong>an</strong>t areasof the world, the actions of competitors, activities by governmental authorities such as ch<strong>an</strong>ges in taxation or regulation.Given these risks <strong>an</strong>d uncertainties, undue reli<strong>an</strong>ce should not be placed on forward-looking statements which speak only as at the date of the presentation. Subjectto <strong>an</strong>y continuing obligations under applicable law or <strong>an</strong>y relev<strong>an</strong>t stock exch<strong>an</strong>ge listing rules, OZ Minerals does not undertake <strong>an</strong>y obligation to publicly release <strong>an</strong>yupdates or revisions to <strong>an</strong>y forward looking statements contained in this presentation, whether as a result of <strong>an</strong>y ch<strong>an</strong>ge in OZ Mineral’s expectations in relation tothem, or <strong>an</strong>y ch<strong>an</strong>ge in events, conditions or circumst<strong>an</strong>ces on which <strong>an</strong>y such statement is based.Certain statistical <strong>an</strong>d other information included in this presentation is sourced from publicly available third party sources <strong>an</strong>d has not been independently verified.All figures are expressed in Australi<strong>an</strong> dollars unless stated otherwise.OZ MINERALS • PAGE 2
CARRAPATEENA COPPER – GOLD DEPOSIT INSOUTH AUSTRALIA• Acquired in May 2011.• 250km south-east of Prominent Hill.• Large IOCG deposit – similar toProminent Hill.• Northeastern margin of the GawlerCraton.• Within the Olympic MetallogenicProvince.• <strong>Project</strong> Meets OZ Minerals Strategy• Potential for production of50,000 – 150,000t per yearcontained copper• Potential for 20+ years mine life• Favourable mining jurisdiction.OZ MINERALS • PAGE 3
EXCELLENT LOCATION – WELL ENDOWED COPPERPROVINCE• 112 person exploration camp.• Access to site from Bookaloo rail sidingthen through Pernatty Station.• Four tenements for combined holding of1,072 sq/km.OZ MINERALS • PAGE 4
DISCOVERY AND TECK COMINCO JV• Discovery Hole CAR02 drilled in mid-2005by RMG Services (Rudy Gomez) intersecting i178m @ 1.83%Cu, 0.64 g/t Au (red collar).• JV with Teck Cominco Australia for~80,000m 000 – majority of drilling was vertical.• No compli<strong>an</strong>t (JORC or NI43-101) resourcereleased - Main mineralised zone notintersected t until drill hole CAR032 (yellowcollar).• An initial Inferred Resource of203Mt at 1.31% copper, 0.56g/t gold, inthe southern area of the <strong>Carrapateena</strong>deposit released by OZ Minerals in mid-2011.OZ MINERALS • PAGE 5
CARRAPATEENA COPPER – GOLD EXPLORATIONSOUTH AUSTRALIA* These are early stage studies which occur before pre-feasibility <strong>an</strong>dfeasibility studies <strong>an</strong>d <strong>an</strong>y subsequent decision to mine.• Native title agreement reached forexploration activity.• Infill drilling of southern area toconvert Inferred Resources to Indicatedmajor focus during 2012.• Drilling to establish resource innorthern area – <strong>Exploration</strong> Target of25-45Mt @ 1% Cu.• ~43,000m diamond drilling through toend Q3 2012, with 41 holes.• Scoping studies* commencingc −−−Mining options: sub-level openstoping, sub-level caving, blockcaving <strong>an</strong>d hybridMining inventories <strong>an</strong>d rates beingdevelopedProduction schedules/early stagecosts being investigated.OZ MINERALS • PAGE 6
GEOLOGY• A deep deposit with 500m ofStuart Shelf sedimentary cover.CAR106W1 Chalcopyrite Mineralisation• Mineralisation starts at 500m<strong>an</strong>d extends to 1500m belowsurface.• Cu-Au hosted in Paleo – Mesoproterozoic hematite breccias.• Breccia clasts dominated byDonington Gr<strong>an</strong>ite, with lessergneiss <strong>an</strong>d othermetasediments.• Alteration is classical IOCG withhematite, sericite, chlorite,carbonate (HSCC).CAR075 Bornite Mineralisation• Two high grade bornite podssurrounded by a chalcopyriteshell.OZ MINERALS • PAGE 7
CARRAPATEENA – SELECTED EARLY DRILLINGRESULTS – Q1 2012:• CAR075 – 1,060m @ 1.88% Cu <strong>an</strong>d 0.69 g/t Au from 510m• CAR076 – 680m @ 1.45% Cu <strong>an</strong>d 0.64 g/t Au from 548m• CAR077 – 450m @ 1.24% Cu <strong>an</strong>d 0.59 g/t Au from 668m 203.7Including: 203.7m @ 1.87% Cu <strong>an</strong>d 0.93g/t Au from 810m @old f• CAR078 – 658m @ 1.97% Cu <strong>an</strong>d 0.67 g/t Au from 741mIncluding: 430.5m @ 2.34% Cu <strong>an</strong>d 0.73 g/t Au from 879.5m• Thick Cu intersections within modelled mineralised shell• Grade continuity outst<strong>an</strong>ding• Extension to mineralisation at depth <strong>an</strong>d to the north of modelledinferred resourceOZ MINERALS • PAGE 8
CARRAPATEENA – SELECTED RECENT DRILLINGRESULTS – Q3 2012:• <strong>Exploration</strong> works continue to upgradeInferred Resources to Indicated status.• 17 holes completed for a total of 12,460mduring Q3• Outst<strong>an</strong>ding t results received in Q3 2012include:• 1,131.8m @ 1.52% Cu <strong>an</strong>d 0.63g/t Au;• 1,492.3m @ 0.90% Cu <strong>an</strong>d 0.38 g/t Au• High grade mineralisation extendingbeyond current resource envelope.OZ MINERALS • PAGE 9
CARRAPATEENA – SELECTED RECENT DRILLINGRESULTS – Q3 2012:OZ MINERALS • PAGE 10
CARRAPATEENA – SELECTED RECENT DRILLINGRESULTS – Q3 2012:OZ MINERALS • PAGE 11
CARRAPATEENA: REGIONAL EXPLORATION• Reviewing the regional exploration data hasproduced a number of high quality, drillready exploration targets.• Logistics for drill testing regional targetscurrently underway.• An ‘in-house’ ground gravity survey hascommenced to refine new targets prior todrilling.Drill targetPl<strong>an</strong>ned GravityCompleted GravityOZ MINERALS • PAGE 12
THREE MINING OPTIONSBLOCK CAVINGSUB LEVELOPENSTOPINGSUB LEVEL CAVINGOZ MINERALS • PAGE 13
MINING METHODSPillars are leftbetween eachfrontSLOS Front 1Sub Level CaveTop down in 25m slicesSLOS Front 2SLOS Front 3Lift 1500m (BC)Block Cave Lift 1Extraction Level at 1000 mSLOS Front 4SLOS Front 5Lift 2400m (BC)Block Cave Lift 2Extraction Level at 1400 mOZ MINERALS • PAGE 14
MINING CONCEPTSTwo lift block cave concept10 to 15 million tonnes per yearSub level open stoping concept4 to 6 million tonnes per yearOZ MINERALS • PAGE 15
CARRAPATEENA: DECLINE DESIGN (SECTION VIEW)5100RL• OZ Minerals Boardapproves <strong>Exploration</strong>Decline.West <strong>Exploration</strong>Access DriveGeotechnical Level 3Geotechnical Level 2Geotechnical Level 4Geotechnical Level 1South East<strong>Exploration</strong> Access Drive• Commencement in early2013 – Phase 1 includes,completion down to625m for geotechnicaltesting by mid-2016.-4475RL--4100RL-• <strong>Exploration</strong> decline willcontinue to a depth ofapproximately 1,000mfor further explorationaccess.LEGEND-3600RL-<strong>Exploration</strong> DeclineApproved by OZ Minerals BoardDevelopment Subject toFurther Approval by BoardNOZ MINERALS • PAGE 16
PURPOSE OF EXPLORATION DECLINE• In order to complete block cave feasibility study we need in situmeasurement of:− Rock mass characteristics (structures, joints, rock strength)− Rock stress conditions with depth− Hydrogeology− Plus additional resource drilling to depths greater th<strong>an</strong> 1,500mOZ MINERALS • PAGE 17
CARRAPATEENA CONCEPTUAL PROJECTSCHEDULE2011 2012 2013 2014 2015 2016 2017<strong>Exploration</strong> drilling to complete initialInferred Resource, 10,000mOption studies for miningPhase II exploration drilling to move toIndicated ResourceGeotechnical drillingPre-feasibility<strong>Exploration</strong> declineFeasibility studyConstructionOZ MINERALS • PAGE 18
OTHER CURRENT PROJECT TIMELINES• <strong>Update</strong>d Resource Statement – pl<strong>an</strong>ned for Q1 2013.• PFS – Commence Q1 2013.• Retention Lease – Awaits final response to public comment period.• <strong>Exploration</strong> Decline – Commence 2013. Work on accelerating thetimeline for potential development of <strong>Carrapateena</strong> includes evaluationof a tunnel boring machine to develop the exploration decline.• Scoping Studies – Ongoing - Potential sites for perm<strong>an</strong>ent village,mine area, mill site, airstrip etc.OZ MINERALS • PAGE 19
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