Name of the Project
Carrapateena copper/gold sublevel cave project.

Location
The project is located north of Port Augusta, in South Australia’s highly prospective Gawler Craton.

Client
Oz Minerals.

Project Description
Oz Minerals has progressed the project to feasibility-study stage, outlining plans for a 4.25-million-tonne-a-year sublevel cave mining operation with a 20-year mine life and average copper equivalent grade of 2.31% in ore milled.

The project entails a conventional copper concentration processing plant, producing an estimated average of 66 000 t/y of copper and 80 000 oz/y of gold for the first three years of full production. Average life-of-mine production is estimated at 65 000 t/y of copper and 67 000 oz/y of gold.

Main access is through a decline and secondary access through a conveyor decline.

Oz Minerals has removed the construction of a conventional copper concentrate treatment plant from the project base case.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value (NPV), at a 9.5% discount rate, of about A$910-million and an internal rate of return of 20%.

Since the prefeasibility study, the NPV of Carrapateena has increased by 18%, owing to increased metal production, higher consensus prices and the removal of the concentrate retreatment plant costs.

The project has a five-year capital payback from the start of production.

Value
The project has a preproduction capital cost of about A$916-million.

Duration
The project will progress in two phases, the first of which will begin in September with the construction of enabling infrastructure, including the accommodation village and airstrip. The second phase is scheduled to start in the second quarter of 2018 and includes the construction of the process plant and other above-ground infrastructure.

Commissioning and first ore to be processed are scheduled for the fourth quarter of 2019.

Latest Developments
The Oz Minerals board has approved the development of the copper/gold mine. Chairperson Rebecca McGrath has said the approval of the mine is a significant enabling step in realising the company’s strategy of becoming a low-cost, multi-asset copper miner.

Work on the dual access decline is under way. Development of the access decline has reached a total of 2 594 m and the second conveyer decline has broken through the completed boxcut.

Oz Minerals has enhanced its caving knowledge by recruiting a number of experienced cave miners into key operational roles, including general management, technical services and mining.

Key Contracts and Suppliers
Ausenco-Downer joint venture (processing plant, nonprocessing and underground infrastructure), NRW (tailings storage facility, civil, western access road and airstrip), PYBAR (decline development) and ElectraNet (build, own, operate and maintain agreement).

On Budget and on Time?
None stated.

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