OZ Minerals : Brazil Operational Update
A key outcome of the nine-month review and concurrent drilling program is the planned implementation of a staged, low risk and capital conservative hub strategy creating a development profile commensurate with the relative size of the Brazilian assets within
'The review focused on increasing our understanding of each asset and how value could be optimised within our existing risk framework and in line with our devolved operating model where assets operate autonomously within a strong company-wide governance framework.
'Mining studies underpinned by the updated Mineral Resource estimation indicate the future of the small operating copper mine at Antas to be limited. The mine is expected to be marginally cash flow positive over the remainder of its life as costs progressively reduce from 2020 following completion of the open pit cutback.
'We did not purchase
'The continued operation of Antas' existing processing facilities will enable it to become the first Carajas province hub, processing ore trucked 70km from the potential
'We are currently working on a new
'Our foothold in the Carajas extends over 1,800 km2 , excluding Pantera, giving us long term exploration opportunities in a high-quality region to support our province strategy and continued operation of Antas as a core processing hub.
'The potential of Gurupi province has strengthened on completion of the CentroGold Pre-Feasibility Study (PFS) 2 showing it to be a 10-year, low cost, open pit operation. The PFS sees CentroGold average gold production3 of 100,000-120,000 oz pa, with 190,000-210,000 oz pa in the first two years, tapering as the mine matures. Construction costs are estimated to be around
'Importantly, CentroGold also has the potential to become a Gurupi processing hub servicing nearby deposits such as Chega Tudo, eight kilometres to the west.
'We have also recently acquired the Jiboia exploration tenements to the north of CentroGold from Kinross, expanding our presence in the Gurupi province5. Our total land package is now 2,300km2 along 85 km of strike length. We now have an extensive footprint in a highly prospective region, with CentroGold comprising less than 3% of the land package.
'Overall our confidence has grown in the value of the
'The foundations are in place for a long-term sustainable position in each province in line with
The nine-month review and drilling program included: Resource infill and extensional drilling at Antas,
Internal and external reviews of all Mineral Resource estimates
Revised estimates of Antas and Pedra Branca Mineral Resources, restated CentroGold estimate at a lower cut off (CentroGold update expected Q4 2019)
Project optimisation for CentroGold Pre-Feasibility Study, Pedra Branca Feasibility Study and the Antas operational mine plan with a focus on cost reduction
Compilation of all disparate exploration data into a single data warehouse
Antas Resource update and guidance
The key drivers for change are as follows: Inclusion of additional drilling data and geological mapping information which was used to update the geological interpretation and estimation parameters. The changes in geological interpretation and estimation parameters resulted in a decrease of 4.0 million tonnes and 55kt of copper metal outside of the constraining pit shell and an additional decrease of 19kt of copper metal inside the constraining pit shell after application of the 0.3% copper cut-off.
Limitation of estimated Mineral Resources to defined pit shells and zones of mineralisation with reasonable prospects for eventual economic extraction resulted in the reduction of 2 million tonnes and 19kt of copper metal.
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