Prefeasibility Study Shows OZ Minerals’ Carrapateena is Technically, Financially Viable

OZ Minerals Ltd. (ASX:OZL) announced that the prefeasibility study for its Carrapateena project shows that it is technically and financially viable. Furthermore, it has “a risk and opportunity profile that is competitive with or better than other global long life copper assets at a similar stage of development.”

Study highlights include:

• Net cash flow of $8.5 billion, including capital expenditure.
• A net present value at 8 percent discount rate of $1.15 billion and an internal rate of return of 13 percent, both on a post tax basis.
• Total revenue over life of mine of $22.1 billion
• Project capital cost of $2.985 billion.
• A low risk jurisdiction relative to other parts of the world with a stable and well understood regulatory environment and encouraging state government.
• Orebody will cave with pre-conditioning, as confirmed by three independent geotechnical consulting firms.
• Demonstrated ability to produce a high quality copper-gold concentrate averaging 30-35 percent copper over life of mine with uranium and fluorine below typical penalty levels and no arsenic.
• High metal recoveries of 92 percent and 70 percent for copper and gold respectively.
• Average annual production rate of 114,000 tonnes of copper and 117,000 ounces of gold at assumed steady state.
• Average C1 unit cost of production of US$0.49 per payable pound of copper including by-product credits.
• Mine life of 24 years, from a plant operating at a production rate of 12.4 million tonnes per annum.
• The site offers an ideal location for access, construction and operation, being relatively flat, at low elevation and in a low rainfall environment.
• Good infrastructure when compared to other jurisdictions with close access to power, water, roads, rail, ports and a skilled labour market.
• Supportive community and other stakeholders, with an approved Retention Lease in place for development of an exploration decline.

Click here to read the full OZ Minerals Ltd. (ASX:OZL) press release.