OZ Minerals provides an array of updates related to the company’s operations

  • Apr 12, 2019 AEST
  • Team Kalkine
OZ Minerals provides an array of updates related to the company’s operations

OZ Minerals Limited (ASX: OZL) announced an array of announcements on 12th April 2019 including resource statement for Nebo-Babel, company’s 2019 first-quarter report, presentation and Webcast.

OZ Minerals presented the upgrade Mineral Resource estimate for Nebo and Babel nickel-copper deposits in west Musgrave Prospect, Western Australia.

Mineral Resource: The company collected and estimated the data from 695 drill holes for a total of 16,558 2 m composited samples in mineralised domains and reported that data under the JORC 2012 edition.

The company reported the total resources for the Nebo-Babel prospect at 238Mt with 0.35% of nickel, 0.38% of copper, 0.06ppm of gold, 129ppm of cobalt, 0.10ppm of palladium, 0.09ppm of platinum.

The resources were further sub-divided as per the JORC 2012 edition, and the company reported the total inferred resources for the twin deposit prospect at 98 Mt with 0.34% of nickel, 0.38% of copper, 0.06ppm of gold, 121ppm of cobalt, 0.11ppm of palladium, 0.09ppm of platinum.

Oz reported the indicated resources for the twin prospect of Babel and Nebo at 141Mt with 0.36% of nickel, 0.38% of copper, 0.06ppm of gold, 134ppm of cobalt, 0.10ppm of palladium, 0.08ppm of platinum.

The company mentioned that the Resource confidence of the company increased for the twin deposit at West Musgrave as approx.53km infill program, which was conducted by the company during the year 2018, resulted into the conversion of inferred resources into indicated resources.

OZ Minerals mentioned that the resource conversion from inferred to indicated resulted in a 26% increase in Indicated Resources for the twin deposit to 141 million tonnes. As per the company, the infill program is still progressing, and now about 59% of total resources at the twin deposit represents Indicated Resources.

As per the company, it converted almost 30Mt of Inferred Resources into Indicated Resources amid infill drilling; however, overall mineral resources declined in the twin deposit by overall 15%.

The company used 30% of the diamond drilling at Nebo which accounts and comprises PQ, HQ and NQ2 sized core.

The company used 33% of the diamond drilling at Babel which accounts and comprises PQ, HQ and NQ2 sized core. RC drilling for the prospect consists of 140 mm diameter face sampling hammer drilling.

First Quarter Production and Costs:

In the first quarter report of the year 2019, the company reported the total Copper production at 27,442 and the Carrapateena prospect did not mark any production. The FY19 Guidance of the production is in the range of 97,000 – 109,000.

The company’s production guidance of copper and gold from Prominent Hill and Antas met previously as well in the third quarter of year 2018.

Oz reported the total Gold production at 34,648 ounces and the Carrapateena prospect did not mark any production. The FY19 Guidance of the production is in the range of 118,000 – 131,000 and the company recently completed a scoping study at the prospect.

The C1 cash cost remained at 60.7cents/lb for the first quarter with the guidance of the year in the range of 65-75 cents/lb. The All-in-Sustaining Costs stood at 103.9cents/lb for the first quarter, whereas the guidance range is 110 - 120 cents/lb for the year.

Carrapateena did not account for any production; however, the company mentioned that the development at the prospect reaches first ore and the project is on schedule for Q4 commissioning.

OZ mined ore stood at 1,322,106 tonnes, with 102,974 tonnes remained open pit ore and 741,921 tonnes remained underground ores. The open pit ore grades 0.93% for copper and 0.15g/t of gold. The underground ore stood at 1.92% of copper and 0.47g/t of gold.

The company signed an Earn-in/Joint Venture agreement with Cassini Resources (ASX: CZI) and in an announcement Cassini Resources mentioned that the company satisfied the 70% earn-in requirement at West Musgrave project and contributed $36m towards the Nebo-Babel Pre-Feasibility Study and regional exploration.

OZ minerals mentioned that the company would proceed towards the Pre-Feasibility test in Q2 of 2019 in the quarterly update.

The stock of the company is trading at A$10.595 (as on 12th April 2019, 01:25 PM), down by 0.047% as compared to its previous close.


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