PROMINENT HILL DEVELOPMENT, OPERATION AND GROWTH ...
PROMINENT HILL DEVELOPMENT, OPERATION AND GROWTH ANALYST TOUR 3 June 2009
SAFETY INDUCTION EMPLOYMENT OVERVIEW ENVIRONMENT COMMUNITY RELATIONS
PROMINENT HILL
Safety Health and Environment • Opportunity to develop a “Culture of Safety” from the beginning of operations • Safety, Health, Environment, Community, Management System - Is aligned to AS 4801 - 60 Integrated Management Standards as the structure - Has an Incident Management and Reporting system - Involves rigorous document control and audit regime - All aspects of regulatory health monitoring • Key aspects will be: - Key behavioural safety activities - Safety Leadership in Action - Well equipped and staffed remote location emergency response and medical facility
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4
PROMINENT HILL
H&S Lag Indicators – Totally Recordable Injury Frequency Rate
12
55
11
50
10
45
9
40
8
35
TRI
7
30
6 25
5
20
4
15
3 2
10
1
5
0 No. of TRI's 12 M M A TRIFR Target 3 M M A TRIFR
Sep06 0 0.00 10 0.00
Oct 06
Nov06
Dec06
Jan07
1
4
3
1
Feb- M ar07 07 4
2
Apr07
M ay07
Jun07
Jul07
Aug07
Sep07
Oct07
Nov07
Dec07
Jan08
1
3
2
2
1
2
1
3
2
2
Feb- M ar08 08 1
2
Apr- M ay08 08 5
11
Jun08
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
M ar09
Apr09
7
7
9
4
2
3
2
7
0
0
0
8.69 25.80 29.66 25.02 28.08 25.94 23.30 23.13 21.63 20.75 19.18 18.57 17.02 15.06 13.69 13.14 10.62 9.81 10.74 13.14 14.26 15.02 16.77 16.51 15.99 15.40 14.94 16.26 16.34 16.42 15.73 10
10
10
10
10
10
10
10
10
10
10
10
9.43 29.63 36.57 32.70 29.71 22.69 21.41 16.73 15.16 16.26 11.00 10.49
10
10
10
10
10
7.61 10.38 10.48 11.31 7.36
10 6.26
10
10
10
10
10
10
10
10
9.45 20.56 25.90 26.65 23.77 19.76 14.49 8.58
Target is based on a 25% reduction from the December 2008 figure
10 7.12
10
10
13.80 12.53
10
10
11.89 0.00
0
TRIFR (per mill hours)
OZ Prominent Hill TRIFR Graph - TRI, 3 Month Moving Average & 12 Month Moving Average
PROMINENT HILL Environment
In compliance with licence and agreement requirements Monitoring of natural resources (water) -
Borefields, pastoralists’ bores, creeks
MARCR (Mine and rehabilitation closure requirement) -
Significant Environment Benefit offset area
-
Cultural heritage identification and protection
-
Flora and Fauna audits
-
Mine closure plan
-
Green house requirement
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PROMINENT HILL
Community – Mutual Benefits Our local community
Our principles
• Those people who live in the area we influence
• Integrate with Government plans
Our stakeholders • Indigenous groups, pastoralists, township communities, local councils, State Government, NGO’s in the area. Our vision • To develop mutually beneficial partnerships with the local community that serve to ensure the community’s robust and sustainable future.
• Facilitate development • Build capacity • Transparency • Build relationships • Measure our impact Our target areas • Education • Health • Social development • Skills development • Sport • Culture
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PROMINENT HILL STRATEGY Building the “People System”
Commercially sensible to be a good employer
Attract
Retain
1.
Engagement of the community
2.
Recruitment of high quality personnel
3.
Engagement of these people in our values
4.
Planning and building the systems required for the business
5.
Close interaction with design construction and commissioning activities
Systems
Engage
PROMINENT HILL
Employment – a diverse workforce
Other 28% Elsewhere in South Australia 49% Upper Spencer Gulf, Coober Pedy or local area 23%
OZ MINERALS EMPLOYEES: 165 CONTRACTORS: 415 TOTAL EMPLOYEES: 580
Peak construction workforce was 1,500 including those on site and those employed in design and administration offsite.
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PROMINENT HILL Skills Development •
Pre Employment Program (PEP) 4 completed - PEP Employment Outcome review and report - Local recruitment process review and report - PEP Trainee feedback report
•
Scholarships – 1 female, 1 male
•
Entry level roles (band 1 and some band 2) – local preference
•
Participation in a number of local employment initiatives
•
Project Unity - Hygiene and compliance factors - Critical mass of females onsite - Current focus – research and action - “Resourceful women – perspectives from a remote mine site” – Carly Taylor (HR Projects Officer)
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PROMINENT HILL Overview – Construction Background
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PROMINENT HILL Project Snapshot
Location:
South Australia, Australia.
Ownership:
100%.
First production:
Late February 2009, currently ramping up.
Reserves:
72.4Mt @ 1.3% Cu, 0.6g/t Au, 3.2g/t Ag. (0.95Mt Cu, 1.4Moz Au, 7.5Moz Ag)
Resources:
289Mt @ 0.9% Cu, 0.8g/t Au, 2.5g/t Ag (2.6Mt copper, 7.6Moz gold, 23Moz silver)
Mine:
Open pit.
Product:
High grade, high quality, copper concentrate LOM average 45% Cu, 19g/t Au, 57g/t Ag.
Estimated mine life:
10 years for Stage 1 open pit. Potential underground, or additional open pit, capable of supporting significant additional mine life and production expansion.
Plant:
8Mtpa crush, grind, flotation.
Production: 2009E
85,000t to 100,000t contained copper, 60,000oz to 70,000oz gold.
Capital cost:
A$1.17 billion, vast majority now spent.
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PROMINENT HILL
Initial Discovery – November 2001
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PROMINENT HILL
Discovery to production in just over 7 years 2001 2003 2005
2006
2007 2008 2009
Initial discovery by Minotaur in November Oxiana Joint Venture Oxiana takes over Minotaur 100% ownership Pre-Feasibility Study Conceptual Development Plan Bankable Feasibility Study Mining and Rehabilitation Plan approval Environment Protection and Biodiversity Conservation Act Approval Woomera Access Deed Native Title Agreement Issue of mining lease Power connection agreement with BHPB Project Board Approval Commence mining on site Project development and construction First ore mined October 2007 Project development and construction Operations team build-up First ore to mill February First concentrate shipment April
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PROMINENT HILL
Construction Milestones EPCM Award
4 September 2006
Construction water supply to site
19 October 2006
Bulk earthworks commence
21 February 2007
Construction camp
23 March 2007
First concrete pour
29 May 2007
Announced timing slippage
16 April 2008
Permanent power supply to site
2 July 2008
SAG mill delivery to site
7 July 2008
Processing plant commissioning – first ore to the crusher
18 October 2008
First ore to the mill
10 February 2009
PROMINENT HILL
Construction Statistics Peak manpower
1,200
Man hours
4.3 million
No of flights/week
37
Trucks/day
23
Meals/day
2,400
Litres of fuel (diesel)/day
113,000
Concrete
23,000 m3
Tonnes of steel
2,400 t
Metres of cable
252,000 m
Metres of pipe
43,000 m
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PROMINENT HILL Mining
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PROMINENT HILL Mining Fleet
Thiess contractor – scheduled rates - 30% fixed (fleet and admin) - 70% variable, based on BCM’s • 3 x Liebherr 996s • 20 x Cat 793s (240t) • 2 x Drilltek SKF • 2 x Drilltek SKS • 5 x dozers • 2 x graders • 2 x watercarts
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PROMINENT HILL Mining Costs
2008
Total Mined (Mt) Drill & Blast Cost Load & Haul Cost Other Cost Total Cost
Actual $/t 69 $0.28 $1.51 $0.84 $2.63
Budget $/t 72 $0.30 $1.69 $0.73 $2.72
2009 Budget $/t 47 $0.49 $1.33 $1.38 $3.20
Overburden (Mt) Cost Fresh Rock (Mt) Cost
48 $2.46 21 $3.00
51 $2.56 21 $3.12
11 $2.71 36 $3.35
AUD$
2010 Budget $/t 63 $0.42 $1.68 $1.03 $3.13 24 $2.71 39 $3.38
• Other costs include mine geology, fleet ownership, OZ and Thiess overheads, etc. Increase from 2008 to 2009 due to crusher loading and extra fleet. • 2009 – 2 operational excavators, one overburden excavator and its truck fleet stood down. Load and haul costs reduce from 2008 to 2009 due to reduction in diesel price. • Overburden costs are lower than basement rock due to reduced blasting requirements and shorter haulage distances.
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PROMINENT HILL Four Mining Stages
Stage 3 Stage 4
Stage 2
Stage 1
Hanging Wall fault zone CCBN Cu Mineralisation
Other Cu Mineralisation
Prominent Hill Shear Zone CCBN Cu Mineralisation Gold Only
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PROMINENT HILL
Mining Schedule – 30% of waste already moved 2006
07
Ore (Mt) Overburden (Mt)
10
67
Fresh Waste (Mt) Total (Mt)
10
67
08
09
10
11
5
10
7
8
Average 12 to 18 8
52
11
24
26
5
225
13
26
32
28
26
279
70
47
63
62
39
589
May 2009 Survey
Stage 3 Mesoproterozoic Basement Fresh Waste Stage 4
Chalcocite Bornite
Chalcopyrite
Gold Only
85
Cover Sequence Overburden
Stage 1
Stage 2
Total
Chalcocite Bornite
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PROMINENT HILL Mining – Ahead of Schedule Actual
06
07
Ore (Mt) Overburden (Mt)
10
67
Fresh Waste (Mt) Total (Mt)
10
67
Q1 09
Total
5
1.8
6.8
52
4.8
133.8
• 6.1 Mt in ore stocks vs 4.7 Mt
13
4.3
17.3
• 18 Mt more overburden moved
69
10.9
156.9
0.7
0.7
• One excavator stood down in Q1 2009 to minimise 2009 costs without material impact to copper production
08
Q1 09
Total
7.7
2.0
9.7
34.7
9.7
110.4
• Overburden – ~1.8
14.0
4.5
18.5
• Ore and fresh waste – ~3.6
56.4
16.2
138.6
3.2
1.8
5.0
Milled (Mt)
BFS Schedule
06
07
Ore (Mt) Overburden (Mt)
12.3
53.7
Fresh Waste (Mt) Total Mined (Mt) Milled (Mt)
12.3
53.7
Actual compared to BFS to Q1 2009
08
• Deferred mill start-up
Material Specific Gravities
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PROMINENT HILL Geotechnical Cross section looking West – Stage 2 BFS design
Current design
• History of cover sequence instability associated with faults and weak Fresh Bulldog Shale • Flattened cover sequence slopes to base of Fresh Bulldog Shale from 38° in BFS to 31° currently and ultimately 29° in final pit walls • ~ 10Mbcm over the LOM overburden stripping compared to the BFS – the majority of which has already been mined • Robust slope monitoring and failure prediction • Potentially problematic Hangingwall Skarn exposed in Stage 1 • Photogramme mapping of Hangingwall to assess stability in future cutbacks
Prism Movement Plot Adjusted Slope Distance Adjusted Slope Distance (mm/day)
12 April 2009 to 19 April 2009 12800
3 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0
12600
12400
12200
12000
Plot Key South 0.5 toWall 1.5 Prisms North 1.5 toWall 2.5Prisms 2.5 to -3.5 Survey Pillar 3.5 Pillar to 4.5 Ref 4.5 to 5.5Prism Removed
11800
11600 55200
55400
55600
55800
56000
56200
56400
56600 Produced By : Peter Le Lievre
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PROMINENT HILL Ore Reconciliation
Stage 1 Mining 5.2 Mt Copper Ore 2.5 Mt Gold Ore Compared to the Resource: Grade higher, Tonnes lower Overall Stage 1 Reconciliation - Contained Metal Within 10% for Cu and Au Early indications are good correlation between milling results and grade control drilling estimates 2009 Mined Cu Grade vs Milled Cu Grade 3.00 2.50 2.00
Mined Cu Grade
Cu % 1.50
Milled Cu Grade
1.00 0.50
09 -F eb 16 -F eb 23 -F eb 02 -M ar 09 -M ar 16 -M ar 23 -M ar 30 -M ar 06 -A pr 13 -A pr 20 -A pr 27 -A pr 04 -M ay 11 -M ay 18 -M ay
0.00
Date
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PROMINENT HILL
Ore supply - +4 Months Copper Ore on ROM pad
ROM pad ore High Grade Cu Low Grade Cu Au Total / Average
Tonnes (m) 1.8 2.2 2.5 6.5
Cu % 2.0 1.2 0.2 1.0
Au (g/t) 0.5 0.4 1.2 0.8
Chalcocite Bornite Chalcopyrite Gold
PROMINENT HILL
Processing Operations
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PROMINENT HILL
Process Flow Diagram
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PROMINENT HILL
Processing Plant – ramping up on schedule Tonnes milled to 30th April
1,297,000 t
Head grade
1.55% Cu; 0.5 g/t Au
0.00
Actual BFS
15-Jun 22-Jun 29-Jun
17-Jun 24-Jun
11-May
04-May
27-Apr
20-Apr
13-Apr
10-Jun
0
08-Jun
500
03-Jun
1,000
01-Jun
1,500
27-May
2,000
25-May
2,500
20-May
Weekly Copper Production
18-May
BFS
13-May
06-May
Actual
29-Apr
22-Apr
15-Apr
BFS
08-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
Mill Capability
01-Apr
0.50
25-Mar
1.00
18-Mar
Mill Head Grade
11-Mar
1.50
04-Mar
3.00
02-Mar
0
25-Feb
20
23-Feb
40
16-Feb
60
09-Feb
80
Cu Recovery (%)
100
18-Feb
2.00
Copper Production (t Cu)
2.50 29-Jun
22-Jun
15-Jun
08-Jun
01-Jun
25-May
18-May
11-May
04-May
27-Apr
20-Apr
13-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
02-Mar
23-Feb
16-Feb
09-Feb
Mill Capability Used (%) 120
11-Feb
25/05/2009
18/05/2009
11/05/2009
04/05/2009
27/04/2009
20/04/2009
Actual
13/04/2009
06/04/2009
30/03/2009
23/03/2009
16/03/2009
09/03/2009
02/03/2009
23/02/2009
16/02/2009
09/02/2009
Mill Head Grade (%Cu)
PROMINENT HILL 28
Processing Start-up and Ramp-up Performance, 2009 Recovery
100 90
80
70
60
50
40
30
20
10 0
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PROMINENT HILL
Processing Plant – Concentrate Quality, 2009 • Copper grade in concentrate is dependent on mineral type being treated
Concentrate Copper Grade 70 Copper (%Cu)
60
• Chalcocite (Cu2S) and Bornite (Cu5FeS4) ore is the predominant mineral being treated presently
50 40 30 20
• Gold content is high but variable
10
• Uranium and Fluorine controlled by fine grinding to less than 20 microns
25-May
18-May
11-May
04-May
27-Apr
20-Apr
13-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
02-Mar
23-Feb
16-Feb
09-Feb
0
• Generally producing concentrate at less than 80ppm U and less than 1,000ppm F
18-May
11-May
04-May
27-Apr
20-Apr
13-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
02-Mar
23-Feb
16-Feb
50 45 40 35 30 25 20 15 10 5 0 09-Feb
Gold (ppm)
Concentrate Gold Grade
PROMINENT HILL Processing Plant – IsaMill and Jameson Cell
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• The IsaMill/Jameson cell is an innovative combination of technologies • The IsaMill is a high energy efficiency fine grinding mill • The fine grinding is required to liberate fluorine and uranium • In the Jameson cell, the high intensity and froth washing reduce gangue entrainment with the fast floating particles • This produces a lower volume of slower floating particles to be cleaned in the conventional cleaner circuit
PROMINENT HILL
Processing Opportunities • Robust flowsheet allows variety of ore types to be treated – chalcocite, bornite and chalcopyrite • Desk top study as part of Underground Study, by plant designer, has indicated expansion achievable by: –
Pebble crusher on SAG mill
–
Additional IsaMill
–
Allowance for these items in plant layout
• Expansion beyond nameplate capacity (8Mtpa) may require further development of bore field within the existing licence
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PROMINENT HILL Transport, Water, Power, Costs
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PROMINENT HILL
Concentrate Handling – First Ship out of Darwin 30 April 09 Logistics 48 hours from mine to port Up to 1 month’s storage capacity at port Darwin, 8-10 days sailing time to customers Marketing Total sales ~200,000 dmt concentrate in a full calendar year Shipping to smelters in Asia/Europe with some small domestic tonnages
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PROMINENT HILL
Infrastructure - Water Water used for processing, mining, accommodation Arckaringa basin Independent of the Great Artesian Basin New industrial water source for South Australia Bore field
12-18 wells 26ML per day up to 400m deep
Well field 65km from site
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PROMINENT HILL
Infrastructure – Power
Aries Borefield
132KV power line
• • • •
Length of line 180km Line capacity 50MW Steady state draw 40MW Potential mine expansion would not require a new line
PROMINENT HILL Preliminary Unit Costs
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A realistic breakdown of operating costs will not be possible until the plant is fully ramped up and operating in steady state Indicative early costs are in line with BFS estimates A$/t ore milled Mining Processing Overheads Concentrate Transport Total Cost to market C1 cost USD per lb*
• • • • • •
Forecast 2009 cost 22.00 11.00 4.00 3.00 40.00 0.75
Total operating costs have increased in real terms from 2006 to 2009 due to inflation Power costs are higher than expected due to market rates Concentrate transport costs are higher than expected from BFS Mining costs have increased due to fuel prices Processing consumables unit costs have increased from BFS estimates C1 costs have remained close to plan despite higher operating costs due to higher gold price than forecast i.e. US$800/oz in budget vs US$550/oz in BFS
*pre royalty, post gold credit
PROMINENT HILL
Exploration and future development potential
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MINERAL RESOURCES 30 June 2008
Prominent Hill Mineral Resources COPPER (0.5% Cu cut-off grade)
Contained Metal Tonnes (Mt)
Copper grade (% Cu)
Measured
44.20
1.71
0.5
Indicated
62.70
1.29
Inferred
67.20
GOLD-Dominant (0.5g/t Au cut-off grade below 0.5% Cu)
Gold grade (g/t Au)
Silver grade (g/t Ag)
Copper ('000 t)
Gold (Moz)
Silver (Moz)
4
755.8
0.8
5.7
0.5
3
808.8
1.1
6.0
1.29
0.6
4
866.9
1.3
7.6
174.10
1.40
0.6
3
2,431.5
3.2
19.3
0.40
0.38
0.9
2
1.5
0.0
0.0
Indicated
37.50
0.08
1.1
1
30.0
1.3
1.4
Inferred
71.20
0.09
1.3
1
64.1
2.9
1.8
109.10
0.09
1.2
1
95.6
4.3
3.3
2,527.1
7.4
22.6
Prominent Hill Copper
Total Prominent Hill Gold Measured
Total Total Resources
Significant figures do not imply precision. Figures are rounded according to JORC Code guidelines. Competent Persons: Patrick Say (Member of AusIMM, employee of OZ Minerals) Jared Broome (Fellow of AusIMM and Member of AIG, employee of OZ Minerals)
Excludes recent Western Copper Zone update
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RESOURCE GROWTH
Outstanding Return on Investment Inferred Resource
Contained Cu Contained Au (Mt) (Moz)
Change Contained Cu Change Change Contained Cu eq. Contained Cu Contained Au eq. (Mt)* (Mt) (Moz) (Mt)*
Year
Tonnage (Mt)
Cu (%)
Au (g/t)
2005
97
1.5
0.50
1.46
1.56
1.73
2006
125
1.2
0.64
1.50
2.58
1.95
0.05
1.02
0.22
2007
146
1.3
0.79
1.90
3.72
2.55
0.40
1.14
0.60
2008
283
0.9
0.81
2.55
7.39
3.85
0.65
3.67
1.29
1.09
5.83
2.12
TOTAL CHANGE
4.0
Resource inventory has been low cost
3.5
Contained Cu eq.* in inferred resource
• During 2006-2008:
-
more than 1 million tonnes of contained copper was added at an average unit cost of 28 US$/t Cu more than 2.1 million tonnes of contained copper equivalent was added at average unit cost of 15 US$/t Cu eq
3.0
Million Tonnes
-
Contained Cu in inferred resource
2.5 2.0 1.5 1.0 0.5 0.0
2005
* Copper equivalent tonnes based on $US 850/oz Au and $US 2.20/lb Cu.
2006
2007
2008
GROWING RESOURCE BASE Lateral and Vertical Extensions
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WESTERN COPPER DEPOSIT Recent Discovery, Further Upside
Long Section PH08D429 59m at 3.9% Cu, 0.3g/t Au
PH08D386 51m at 3.5% Cu
PH08D384 26m at 2.1% Cu
PH08D384 86m at 2.9% Cu PH08D429 34m at 2.0% Cu, 0.8g/t Au
PH08D434 99m at 0.8% Cu PH08D346 50m at 1.8% Cu, 0.6g/t Au PH08D434 23m at 2.4% Cu, 0.7g/t Au
PH08D430 129.3m at 2.6% Cu, 0.6g/t Au
LEGEND
PH08D386 65m at 2.5% Cu, 0.7g/t Au
UPDATED INFERRED RESOURCE 14.5Mt at 1.7% Cu, 0.28g/t Au, 3.7g/t Ag
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PROMINENT HILL
Underground Update: two potential new ore sources
Eastern Cu
Western Au
Inferred Resource
Inferred Resource
3.7Mt @ 1.4%Cu, 0.6g/t Au
1.6Mt @ 6.2g/t Au Western Cu Inferred Resource 14.5Mt @ 1.7%Cu, 0.28g/t Au Scoping Studies Ongoing Potential 1.0Mtpa SLOS
“Main” Underground Feasibility Studies Ongoing Potential 1.0 - 2.0Mtpa SLOS
Main Cu - Au Inferred & Indicated Resource 95.8Mt @ 1.2%Cu, 0.62g/t Au
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GEOLOGIGAL SETTING
World Class IOCG Cu-Au-(u) Province TOP TEN IOCG DEPOSITS BY TONNAGE Deposit Olympic Dam Salobo Candelaria Crystalino Carrapateena Mt Elliot Sossego-Sequerinho Prominent Hill Alemao-Igarape Bahia Ernest Henry
Country - Province Australia - Gawler Brazil - Carajas Chile - Central Brazil - Carajas Australia - Gawler Australia - Mt Isa Brazil - Carajas Australia - Gawler Brazil - Carajas Australia - Mt Isa
Mt 8330 986 600 500 >500? 475 355 >289 195 122
Cu (%) 0.8 0.8 1.0 1.0 0.9? 0.5 1.1 0.9 1.5 1.2
Au (g/t) 0.76 0.49 0.20 0.25 0.8? 0.30 0.28 0.80 0.55 0.55
– Proven geological setting for large-scale IOCG systems – Very under explored due to widespread barren cover rocks – High potential for further discovery – Competitive and expanding knowledge base
DISTRICT EXPLORATION
Prospectivity to be followed up
High prospectivity for iron oxide-copper-gold (IOCG) deposits in the Mount Woods Domain is indicated by: • Presence of numerous known mineralization and alteration systems; anomalism of Rare Earth Elements, Fluorine, Barium, Copper and Gold (e.g. PH, Manxman, Joes Dam, Neptune) • High magnetic relief indicating presence of iron-oxides • Extensive sodic and potassic alteration halos • Evidence of high structural levels (i.e. presence of Gawler Range Volcanics) • Major NE and NW trending structures • Presence of mantle derived mafic rocks and related Hiltaba-aged (ca. 1585 Ma) granites
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District Exploration
OZ Mt Woods Tenements 4177 sq. km
High Potential for a New Discovery
•
• • •
Encouraging results from first-pass drilling of initial geophysical targets – Several IOCG alteration systems encountered – Broad zones of low-tenor copper-gold mineralisation – Numerous near-mine prospects require follow-up work including Larissa, Triton, Taurus, the Caliban-Prominent Hill corridor, Cressida and Umbria Drilling planned at the Homer target (strong magnetic feature) New drill targets are being generated by infill-gravity surveys and focussed technical studies Large under-explored tenement holding, highly prospective for IOCG deposits
Area shown
146m @ 0.51g/t Pt+Pd from 236m White Hills Complex
Umbria
20m @ 0.3% Cu, 10% Fe from 206m
Cressida
Prominent Hill
32m @ 0.11% Cu from 333m
N 4 km Homer
background image: magnetics
77m @ 0.23% Cu and 0.10g/t Au from 250m
DISTRICT EXPLORATION
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Leveraging off our Competitive Advantage
• Maximising targeting capability via applied research on a high quality IOCG ore body – Geochemical sampling studies assessing multi-element dispersion in the mine cover sequence > increasing the target footprint > improving our ability to explore under cover • Internally co-ordinated, integrated research programs on mafic-ultramafic rocks, hydrothermal fluid evolution, isotope signatures and age relationships – Fingerprinting the economic deposit signatures – Advancing understanding of the ore-forming criteria and developing targeting tools to maximise exploration success • Significant in-house expertise • Strategic external relationships
MINERAL RESOURCES Summary
• Resource inventory growth continues to be achieved at low cost by industry standards • Prominent Hill deposit remains open in most directions, and intensive drilling continues to extend known mineralisation and discover new zones e.g. Western Copper • Outstanding potential exists to further increase the resource base via extension drilling, conversion of near mine exploration results and ongoing regional testing in the Mt Woods Inlier
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PROMINENT HILL
Competitive Fundamentals
• 100% ownership
• High grade
• Attractive jurisdiction
• Excellent Metallurgy
• Established infrastructure
• Significant Upside
• Suitable scale
• Excellent People
Truck carrying first load of concentrate
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IMPORTANT NOTICE
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SAFETY INDUCTION EMPLOYMENT OVERVIEW ENVIRONMENT COMMUNITY RELATIONS
PROMINENT HILL
Safety Health and Environment • Opportunity to develop a “Culture of Safety” from the beginning of operations • Safety, Health, Environment, Community, Management System - Is aligned to AS 4801 - 60 Integrated Management Standards as the structure - Has an Incident Management and Reporting system - Involves rigorous document control and audit regime - All aspects of regulatory health monitoring • Key aspects will be: - Key behavioural safety activities - Safety Leadership in Action - Well equipped and staffed remote location emergency response and medical facility
3
4
PROMINENT HILL
H&S Lag Indicators – Totally Recordable Injury Frequency Rate
12
55
11
50
10
45
9
40
8
35
TRI
7
30
6 25
5
20
4
15
3 2
10
1
5
0 No. of TRI's 12 M M A TRIFR Target 3 M M A TRIFR
Sep06 0 0.00 10 0.00
Oct 06
Nov06
Dec06
Jan07
1
4
3
1
Feb- M ar07 07 4
2
Apr07
M ay07
Jun07
Jul07
Aug07
Sep07
Oct07
Nov07
Dec07
Jan08
1
3
2
2
1
2
1
3
2
2
Feb- M ar08 08 1
2
Apr- M ay08 08 5
11
Jun08
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Jan09
Feb09
M ar09
Apr09
7
7
9
4
2
3
2
7
0
0
0
8.69 25.80 29.66 25.02 28.08 25.94 23.30 23.13 21.63 20.75 19.18 18.57 17.02 15.06 13.69 13.14 10.62 9.81 10.74 13.14 14.26 15.02 16.77 16.51 15.99 15.40 14.94 16.26 16.34 16.42 15.73 10
10
10
10
10
10
10
10
10
10
10
10
9.43 29.63 36.57 32.70 29.71 22.69 21.41 16.73 15.16 16.26 11.00 10.49
10
10
10
10
10
7.61 10.38 10.48 11.31 7.36
10 6.26
10
10
10
10
10
10
10
10
9.45 20.56 25.90 26.65 23.77 19.76 14.49 8.58
Target is based on a 25% reduction from the December 2008 figure
10 7.12
10
10
13.80 12.53
10
10
11.89 0.00
0
TRIFR (per mill hours)
OZ Prominent Hill TRIFR Graph - TRI, 3 Month Moving Average & 12 Month Moving Average
PROMINENT HILL Environment
In compliance with licence and agreement requirements Monitoring of natural resources (water) -
Borefields, pastoralists’ bores, creeks
MARCR (Mine and rehabilitation closure requirement) -
Significant Environment Benefit offset area
-
Cultural heritage identification and protection
-
Flora and Fauna audits
-
Mine closure plan
-
Green house requirement
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PROMINENT HILL
Community – Mutual Benefits Our local community
Our principles
• Those people who live in the area we influence
• Integrate with Government plans
Our stakeholders • Indigenous groups, pastoralists, township communities, local councils, State Government, NGO’s in the area. Our vision • To develop mutually beneficial partnerships with the local community that serve to ensure the community’s robust and sustainable future.
• Facilitate development • Build capacity • Transparency • Build relationships • Measure our impact Our target areas • Education • Health • Social development • Skills development • Sport • Culture
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PROMINENT HILL STRATEGY Building the “People System”
Commercially sensible to be a good employer
Attract
Retain
1.
Engagement of the community
2.
Recruitment of high quality personnel
3.
Engagement of these people in our values
4.
Planning and building the systems required for the business
5.
Close interaction with design construction and commissioning activities
Systems
Engage
PROMINENT HILL
Employment – a diverse workforce
Other 28% Elsewhere in South Australia 49% Upper Spencer Gulf, Coober Pedy or local area 23%
OZ MINERALS EMPLOYEES: 165 CONTRACTORS: 415 TOTAL EMPLOYEES: 580
Peak construction workforce was 1,500 including those on site and those employed in design and administration offsite.
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PROMINENT HILL Skills Development •
Pre Employment Program (PEP) 4 completed - PEP Employment Outcome review and report - Local recruitment process review and report - PEP Trainee feedback report
•
Scholarships – 1 female, 1 male
•
Entry level roles (band 1 and some band 2) – local preference
•
Participation in a number of local employment initiatives
•
Project Unity - Hygiene and compliance factors - Critical mass of females onsite - Current focus – research and action - “Resourceful women – perspectives from a remote mine site” – Carly Taylor (HR Projects Officer)
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PROMINENT HILL Overview – Construction Background
10
PROMINENT HILL Project Snapshot
Location:
South Australia, Australia.
Ownership:
100%.
First production:
Late February 2009, currently ramping up.
Reserves:
72.4Mt @ 1.3% Cu, 0.6g/t Au, 3.2g/t Ag. (0.95Mt Cu, 1.4Moz Au, 7.5Moz Ag)
Resources:
289Mt @ 0.9% Cu, 0.8g/t Au, 2.5g/t Ag (2.6Mt copper, 7.6Moz gold, 23Moz silver)
Mine:
Open pit.
Product:
High grade, high quality, copper concentrate LOM average 45% Cu, 19g/t Au, 57g/t Ag.
Estimated mine life:
10 years for Stage 1 open pit. Potential underground, or additional open pit, capable of supporting significant additional mine life and production expansion.
Plant:
8Mtpa crush, grind, flotation.
Production: 2009E
85,000t to 100,000t contained copper, 60,000oz to 70,000oz gold.
Capital cost:
A$1.17 billion, vast majority now spent.
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PROMINENT HILL
Initial Discovery – November 2001
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PROMINENT HILL
Discovery to production in just over 7 years 2001 2003 2005
2006
2007 2008 2009
Initial discovery by Minotaur in November Oxiana Joint Venture Oxiana takes over Minotaur 100% ownership Pre-Feasibility Study Conceptual Development Plan Bankable Feasibility Study Mining and Rehabilitation Plan approval Environment Protection and Biodiversity Conservation Act Approval Woomera Access Deed Native Title Agreement Issue of mining lease Power connection agreement with BHPB Project Board Approval Commence mining on site Project development and construction First ore mined October 2007 Project development and construction Operations team build-up First ore to mill February First concentrate shipment April
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PROMINENT HILL
Construction Milestones EPCM Award
4 September 2006
Construction water supply to site
19 October 2006
Bulk earthworks commence
21 February 2007
Construction camp
23 March 2007
First concrete pour
29 May 2007
Announced timing slippage
16 April 2008
Permanent power supply to site
2 July 2008
SAG mill delivery to site
7 July 2008
Processing plant commissioning – first ore to the crusher
18 October 2008
First ore to the mill
10 February 2009
PROMINENT HILL
Construction Statistics Peak manpower
1,200
Man hours
4.3 million
No of flights/week
37
Trucks/day
23
Meals/day
2,400
Litres of fuel (diesel)/day
113,000
Concrete
23,000 m3
Tonnes of steel
2,400 t
Metres of cable
252,000 m
Metres of pipe
43,000 m
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PROMINENT HILL Mining
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PROMINENT HILL Mining Fleet
Thiess contractor – scheduled rates - 30% fixed (fleet and admin) - 70% variable, based on BCM’s • 3 x Liebherr 996s • 20 x Cat 793s (240t) • 2 x Drilltek SKF • 2 x Drilltek SKS • 5 x dozers • 2 x graders • 2 x watercarts
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PROMINENT HILL Mining Costs
2008
Total Mined (Mt) Drill & Blast Cost Load & Haul Cost Other Cost Total Cost
Actual $/t 69 $0.28 $1.51 $0.84 $2.63
Budget $/t 72 $0.30 $1.69 $0.73 $2.72
2009 Budget $/t 47 $0.49 $1.33 $1.38 $3.20
Overburden (Mt) Cost Fresh Rock (Mt) Cost
48 $2.46 21 $3.00
51 $2.56 21 $3.12
11 $2.71 36 $3.35
AUD$
2010 Budget $/t 63 $0.42 $1.68 $1.03 $3.13 24 $2.71 39 $3.38
• Other costs include mine geology, fleet ownership, OZ and Thiess overheads, etc. Increase from 2008 to 2009 due to crusher loading and extra fleet. • 2009 – 2 operational excavators, one overburden excavator and its truck fleet stood down. Load and haul costs reduce from 2008 to 2009 due to reduction in diesel price. • Overburden costs are lower than basement rock due to reduced blasting requirements and shorter haulage distances.
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PROMINENT HILL Four Mining Stages
Stage 3 Stage 4
Stage 2
Stage 1
Hanging Wall fault zone CCBN Cu Mineralisation
Other Cu Mineralisation
Prominent Hill Shear Zone CCBN Cu Mineralisation Gold Only
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PROMINENT HILL
Mining Schedule – 30% of waste already moved 2006
07
Ore (Mt) Overburden (Mt)
10
67
Fresh Waste (Mt) Total (Mt)
10
67
08
09
10
11
5
10
7
8
Average 12 to 18 8
52
11
24
26
5
225
13
26
32
28
26
279
70
47
63
62
39
589
May 2009 Survey
Stage 3 Mesoproterozoic Basement Fresh Waste Stage 4
Chalcocite Bornite
Chalcopyrite
Gold Only
85
Cover Sequence Overburden
Stage 1
Stage 2
Total
Chalcocite Bornite
21
PROMINENT HILL Mining – Ahead of Schedule Actual
06
07
Ore (Mt) Overburden (Mt)
10
67
Fresh Waste (Mt) Total (Mt)
10
67
Q1 09
Total
5
1.8
6.8
52
4.8
133.8
• 6.1 Mt in ore stocks vs 4.7 Mt
13
4.3
17.3
• 18 Mt more overburden moved
69
10.9
156.9
0.7
0.7
• One excavator stood down in Q1 2009 to minimise 2009 costs without material impact to copper production
08
Q1 09
Total
7.7
2.0
9.7
34.7
9.7
110.4
• Overburden – ~1.8
14.0
4.5
18.5
• Ore and fresh waste – ~3.6
56.4
16.2
138.6
3.2
1.8
5.0
Milled (Mt)
BFS Schedule
06
07
Ore (Mt) Overburden (Mt)
12.3
53.7
Fresh Waste (Mt) Total Mined (Mt) Milled (Mt)
12.3
53.7
Actual compared to BFS to Q1 2009
08
• Deferred mill start-up
Material Specific Gravities
22
PROMINENT HILL Geotechnical Cross section looking West – Stage 2 BFS design
Current design
• History of cover sequence instability associated with faults and weak Fresh Bulldog Shale • Flattened cover sequence slopes to base of Fresh Bulldog Shale from 38° in BFS to 31° currently and ultimately 29° in final pit walls • ~ 10Mbcm over the LOM overburden stripping compared to the BFS – the majority of which has already been mined • Robust slope monitoring and failure prediction • Potentially problematic Hangingwall Skarn exposed in Stage 1 • Photogramme mapping of Hangingwall to assess stability in future cutbacks
Prism Movement Plot Adjusted Slope Distance Adjusted Slope Distance (mm/day)
12 April 2009 to 19 April 2009 12800
3 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 2 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0
12600
12400
12200
12000
Plot Key South 0.5 toWall 1.5 Prisms North 1.5 toWall 2.5Prisms 2.5 to -3.5 Survey Pillar 3.5 Pillar to 4.5 Ref 4.5 to 5.5Prism Removed
11800
11600 55200
55400
55600
55800
56000
56200
56400
56600 Produced By : Peter Le Lievre
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PROMINENT HILL Ore Reconciliation
Stage 1 Mining 5.2 Mt Copper Ore 2.5 Mt Gold Ore Compared to the Resource: Grade higher, Tonnes lower Overall Stage 1 Reconciliation - Contained Metal Within 10% for Cu and Au Early indications are good correlation between milling results and grade control drilling estimates 2009 Mined Cu Grade vs Milled Cu Grade 3.00 2.50 2.00
Mined Cu Grade
Cu % 1.50
Milled Cu Grade
1.00 0.50
09 -F eb 16 -F eb 23 -F eb 02 -M ar 09 -M ar 16 -M ar 23 -M ar 30 -M ar 06 -A pr 13 -A pr 20 -A pr 27 -A pr 04 -M ay 11 -M ay 18 -M ay
0.00
Date
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PROMINENT HILL
Ore supply - +4 Months Copper Ore on ROM pad
ROM pad ore High Grade Cu Low Grade Cu Au Total / Average
Tonnes (m) 1.8 2.2 2.5 6.5
Cu % 2.0 1.2 0.2 1.0
Au (g/t) 0.5 0.4 1.2 0.8
Chalcocite Bornite Chalcopyrite Gold
PROMINENT HILL
Processing Operations
25
PROMINENT HILL
Process Flow Diagram
26
27
PROMINENT HILL
Processing Plant – ramping up on schedule Tonnes milled to 30th April
1,297,000 t
Head grade
1.55% Cu; 0.5 g/t Au
0.00
Actual BFS
15-Jun 22-Jun 29-Jun
17-Jun 24-Jun
11-May
04-May
27-Apr
20-Apr
13-Apr
10-Jun
0
08-Jun
500
03-Jun
1,000
01-Jun
1,500
27-May
2,000
25-May
2,500
20-May
Weekly Copper Production
18-May
BFS
13-May
06-May
Actual
29-Apr
22-Apr
15-Apr
BFS
08-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
Mill Capability
01-Apr
0.50
25-Mar
1.00
18-Mar
Mill Head Grade
11-Mar
1.50
04-Mar
3.00
02-Mar
0
25-Feb
20
23-Feb
40
16-Feb
60
09-Feb
80
Cu Recovery (%)
100
18-Feb
2.00
Copper Production (t Cu)
2.50 29-Jun
22-Jun
15-Jun
08-Jun
01-Jun
25-May
18-May
11-May
04-May
27-Apr
20-Apr
13-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
02-Mar
23-Feb
16-Feb
09-Feb
Mill Capability Used (%) 120
11-Feb
25/05/2009
18/05/2009
11/05/2009
04/05/2009
27/04/2009
20/04/2009
Actual
13/04/2009
06/04/2009
30/03/2009
23/03/2009
16/03/2009
09/03/2009
02/03/2009
23/02/2009
16/02/2009
09/02/2009
Mill Head Grade (%Cu)
PROMINENT HILL 28
Processing Start-up and Ramp-up Performance, 2009 Recovery
100 90
80
70
60
50
40
30
20
10 0
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PROMINENT HILL
Processing Plant – Concentrate Quality, 2009 • Copper grade in concentrate is dependent on mineral type being treated
Concentrate Copper Grade 70 Copper (%Cu)
60
• Chalcocite (Cu2S) and Bornite (Cu5FeS4) ore is the predominant mineral being treated presently
50 40 30 20
• Gold content is high but variable
10
• Uranium and Fluorine controlled by fine grinding to less than 20 microns
25-May
18-May
11-May
04-May
27-Apr
20-Apr
13-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
02-Mar
23-Feb
16-Feb
09-Feb
0
• Generally producing concentrate at less than 80ppm U and less than 1,000ppm F
18-May
11-May
04-May
27-Apr
20-Apr
13-Apr
06-Apr
30-Mar
23-Mar
16-Mar
09-Mar
02-Mar
23-Feb
16-Feb
50 45 40 35 30 25 20 15 10 5 0 09-Feb
Gold (ppm)
Concentrate Gold Grade
PROMINENT HILL Processing Plant – IsaMill and Jameson Cell
30
• The IsaMill/Jameson cell is an innovative combination of technologies • The IsaMill is a high energy efficiency fine grinding mill • The fine grinding is required to liberate fluorine and uranium • In the Jameson cell, the high intensity and froth washing reduce gangue entrainment with the fast floating particles • This produces a lower volume of slower floating particles to be cleaned in the conventional cleaner circuit
PROMINENT HILL
Processing Opportunities • Robust flowsheet allows variety of ore types to be treated – chalcocite, bornite and chalcopyrite • Desk top study as part of Underground Study, by plant designer, has indicated expansion achievable by: –
Pebble crusher on SAG mill
–
Additional IsaMill
–
Allowance for these items in plant layout
• Expansion beyond nameplate capacity (8Mtpa) may require further development of bore field within the existing licence
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PROMINENT HILL Transport, Water, Power, Costs
32
PROMINENT HILL
Concentrate Handling – First Ship out of Darwin 30 April 09 Logistics 48 hours from mine to port Up to 1 month’s storage capacity at port Darwin, 8-10 days sailing time to customers Marketing Total sales ~200,000 dmt concentrate in a full calendar year Shipping to smelters in Asia/Europe with some small domestic tonnages
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PROMINENT HILL
Infrastructure - Water Water used for processing, mining, accommodation Arckaringa basin Independent of the Great Artesian Basin New industrial water source for South Australia Bore field
12-18 wells 26ML per day up to 400m deep
Well field 65km from site
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PROMINENT HILL
Infrastructure – Power
Aries Borefield
132KV power line
• • • •
Length of line 180km Line capacity 50MW Steady state draw 40MW Potential mine expansion would not require a new line
PROMINENT HILL Preliminary Unit Costs
36
A realistic breakdown of operating costs will not be possible until the plant is fully ramped up and operating in steady state Indicative early costs are in line with BFS estimates A$/t ore milled Mining Processing Overheads Concentrate Transport Total Cost to market C1 cost USD per lb*
• • • • • •
Forecast 2009 cost 22.00 11.00 4.00 3.00 40.00 0.75
Total operating costs have increased in real terms from 2006 to 2009 due to inflation Power costs are higher than expected due to market rates Concentrate transport costs are higher than expected from BFS Mining costs have increased due to fuel prices Processing consumables unit costs have increased from BFS estimates C1 costs have remained close to plan despite higher operating costs due to higher gold price than forecast i.e. US$800/oz in budget vs US$550/oz in BFS
*pre royalty, post gold credit
PROMINENT HILL
Exploration and future development potential
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MINERAL RESOURCES 30 June 2008
Prominent Hill Mineral Resources COPPER (0.5% Cu cut-off grade)
Contained Metal Tonnes (Mt)
Copper grade (% Cu)
Measured
44.20
1.71
0.5
Indicated
62.70
1.29
Inferred
67.20
GOLD-Dominant (0.5g/t Au cut-off grade below 0.5% Cu)
Gold grade (g/t Au)
Silver grade (g/t Ag)
Copper ('000 t)
Gold (Moz)
Silver (Moz)
4
755.8
0.8
5.7
0.5
3
808.8
1.1
6.0
1.29
0.6
4
866.9
1.3
7.6
174.10
1.40
0.6
3
2,431.5
3.2
19.3
0.40
0.38
0.9
2
1.5
0.0
0.0
Indicated
37.50
0.08
1.1
1
30.0
1.3
1.4
Inferred
71.20
0.09
1.3
1
64.1
2.9
1.8
109.10
0.09
1.2
1
95.6
4.3
3.3
2,527.1
7.4
22.6
Prominent Hill Copper
Total Prominent Hill Gold Measured
Total Total Resources
Significant figures do not imply precision. Figures are rounded according to JORC Code guidelines. Competent Persons: Patrick Say (Member of AusIMM, employee of OZ Minerals) Jared Broome (Fellow of AusIMM and Member of AIG, employee of OZ Minerals)
Excludes recent Western Copper Zone update
39
RESOURCE GROWTH
Outstanding Return on Investment Inferred Resource
Contained Cu Contained Au (Mt) (Moz)
Change Contained Cu Change Change Contained Cu eq. Contained Cu Contained Au eq. (Mt)* (Mt) (Moz) (Mt)*
Year
Tonnage (Mt)
Cu (%)
Au (g/t)
2005
97
1.5
0.50
1.46
1.56
1.73
2006
125
1.2
0.64
1.50
2.58
1.95
0.05
1.02
0.22
2007
146
1.3
0.79
1.90
3.72
2.55
0.40
1.14
0.60
2008
283
0.9
0.81
2.55
7.39
3.85
0.65
3.67
1.29
1.09
5.83
2.12
TOTAL CHANGE
4.0
Resource inventory has been low cost
3.5
Contained Cu eq.* in inferred resource
• During 2006-2008:
-
more than 1 million tonnes of contained copper was added at an average unit cost of 28 US$/t Cu more than 2.1 million tonnes of contained copper equivalent was added at average unit cost of 15 US$/t Cu eq
3.0
Million Tonnes
-
Contained Cu in inferred resource
2.5 2.0 1.5 1.0 0.5 0.0
2005
* Copper equivalent tonnes based on $US 850/oz Au and $US 2.20/lb Cu.
2006
2007
2008
GROWING RESOURCE BASE Lateral and Vertical Extensions
40
41
WESTERN COPPER DEPOSIT Recent Discovery, Further Upside
Long Section PH08D429 59m at 3.9% Cu, 0.3g/t Au
PH08D386 51m at 3.5% Cu
PH08D384 26m at 2.1% Cu
PH08D384 86m at 2.9% Cu PH08D429 34m at 2.0% Cu, 0.8g/t Au
PH08D434 99m at 0.8% Cu PH08D346 50m at 1.8% Cu, 0.6g/t Au PH08D434 23m at 2.4% Cu, 0.7g/t Au
PH08D430 129.3m at 2.6% Cu, 0.6g/t Au
LEGEND
PH08D386 65m at 2.5% Cu, 0.7g/t Au
UPDATED INFERRED RESOURCE 14.5Mt at 1.7% Cu, 0.28g/t Au, 3.7g/t Ag
42
PROMINENT HILL
Underground Update: two potential new ore sources
Eastern Cu
Western Au
Inferred Resource
Inferred Resource
3.7Mt @ 1.4%Cu, 0.6g/t Au
1.6Mt @ 6.2g/t Au Western Cu Inferred Resource 14.5Mt @ 1.7%Cu, 0.28g/t Au Scoping Studies Ongoing Potential 1.0Mtpa SLOS
“Main” Underground Feasibility Studies Ongoing Potential 1.0 - 2.0Mtpa SLOS
Main Cu - Au Inferred & Indicated Resource 95.8Mt @ 1.2%Cu, 0.62g/t Au
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GEOLOGIGAL SETTING
World Class IOCG Cu-Au-(u) Province TOP TEN IOCG DEPOSITS BY TONNAGE Deposit Olympic Dam Salobo Candelaria Crystalino Carrapateena Mt Elliot Sossego-Sequerinho Prominent Hill Alemao-Igarape Bahia Ernest Henry
Country - Province Australia - Gawler Brazil - Carajas Chile - Central Brazil - Carajas Australia - Gawler Australia - Mt Isa Brazil - Carajas Australia - Gawler Brazil - Carajas Australia - Mt Isa
Mt 8330 986 600 500 >500? 475 355 >289 195 122
Cu (%) 0.8 0.8 1.0 1.0 0.9? 0.5 1.1 0.9 1.5 1.2
Au (g/t) 0.76 0.49 0.20 0.25 0.8? 0.30 0.28 0.80 0.55 0.55
– Proven geological setting for large-scale IOCG systems – Very under explored due to widespread barren cover rocks – High potential for further discovery – Competitive and expanding knowledge base
DISTRICT EXPLORATION
Prospectivity to be followed up
High prospectivity for iron oxide-copper-gold (IOCG) deposits in the Mount Woods Domain is indicated by: • Presence of numerous known mineralization and alteration systems; anomalism of Rare Earth Elements, Fluorine, Barium, Copper and Gold (e.g. PH, Manxman, Joes Dam, Neptune) • High magnetic relief indicating presence of iron-oxides • Extensive sodic and potassic alteration halos • Evidence of high structural levels (i.e. presence of Gawler Range Volcanics) • Major NE and NW trending structures • Presence of mantle derived mafic rocks and related Hiltaba-aged (ca. 1585 Ma) granites
44
45
District Exploration
OZ Mt Woods Tenements 4177 sq. km
High Potential for a New Discovery
•
• • •
Encouraging results from first-pass drilling of initial geophysical targets – Several IOCG alteration systems encountered – Broad zones of low-tenor copper-gold mineralisation – Numerous near-mine prospects require follow-up work including Larissa, Triton, Taurus, the Caliban-Prominent Hill corridor, Cressida and Umbria Drilling planned at the Homer target (strong magnetic feature) New drill targets are being generated by infill-gravity surveys and focussed technical studies Large under-explored tenement holding, highly prospective for IOCG deposits
Area shown
146m @ 0.51g/t Pt+Pd from 236m White Hills Complex
Umbria
20m @ 0.3% Cu, 10% Fe from 206m
Cressida
Prominent Hill
32m @ 0.11% Cu from 333m
N 4 km Homer
background image: magnetics
77m @ 0.23% Cu and 0.10g/t Au from 250m
DISTRICT EXPLORATION
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Leveraging off our Competitive Advantage
• Maximising targeting capability via applied research on a high quality IOCG ore body – Geochemical sampling studies assessing multi-element dispersion in the mine cover sequence > increasing the target footprint > improving our ability to explore under cover • Internally co-ordinated, integrated research programs on mafic-ultramafic rocks, hydrothermal fluid evolution, isotope signatures and age relationships – Fingerprinting the economic deposit signatures – Advancing understanding of the ore-forming criteria and developing targeting tools to maximise exploration success • Significant in-house expertise • Strategic external relationships
MINERAL RESOURCES Summary
• Resource inventory growth continues to be achieved at low cost by industry standards • Prominent Hill deposit remains open in most directions, and intensive drilling continues to extend known mineralisation and discover new zones e.g. Western Copper • Outstanding potential exists to further increase the resource base via extension drilling, conversion of near mine exploration results and ongoing regional testing in the Mt Woods Inlier
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PROMINENT HILL
Competitive Fundamentals
• 100% ownership
• High grade
• Attractive jurisdiction
• Excellent Metallurgy
• Established infrastructure
• Significant Upside
• Suitable scale
• Excellent People
Truck carrying first load of concentrate
THANK YOU WWW.OZMINERALS.COM
IMPORTANT NOTICE
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