OZ Minerals Carrapateena Project Feasibility Study Update

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CARRAPATEENA Feasibility Study Update CA-MAN-REP-1000 24 August 2017 CA-MAN-REP-1000 Carrapateena Feasibility Study Update Carrapateena SLC FS Update / Doc # CA-MAN-REP-1000 Page 2 of 130 CA-MAN-REP-1000 Carrapateena Feasibility Study Update ACKNOWLEDGEMENTS Kokatha Aboriginal Corporation The Kokatha People have a direct, unbroken and unique relationship with the land on which the Carrapateena Project is located. OZ Minerals recognises the sense of place and belonging of the Kokatha People is linked to their identity, creation stories, travel, trade, ceremonies, family and places held sacred. We recognise the deep and ongoing feelings of relationship and attachment they hold for their lands. OZ Minerals acknowledges the Kokatha People’s connection to ‘country’, the contribution of the Kokatha People to their region and the enduring importance to the Kokatha People of values, cultural authority, cultural norms and customary laws. OZ Minerals places great value on our relationship with the Kokatha People. OZ Minerals and the Kokatha Aboriginal Corporation seek to work in partnership, as equals, to further develop the Partnering Agreement Nganampa palyanku kanyintjaku ‘Keeping the future good for all of us’. This collaborative agreement encapsulates, recognises and values the ongoing contribution of both partners, and will inform the relationship between the Kokatha People and OZ Minerals throughout and beyond the development of the Carrapateena Project. Pernatty and Oakden Hills Station Owners The Far North region of South Australia has a long and rich history of pastoralism. The proposed Carrapateena Project is located on Pernatty Station and the proposed supporting infrastructure is located within Oakden Hills Station. OZ Minerals recognises the importance of the land to its owners and their operations and acknowledges their cooperation in developing the Project. An ongoing relationship between pastoral owners and OZ Minerals will continue to be fostered. This will ensure development of mutual benefits for both parties as a result of the co-existence of pastoral enterprises and mining operations throughout the course of the mine life. Carrapateena SLC FS Update / Doc # CA-MAN-REP-1000 Page 3 of 130 CA-MAN-REP-1000 Carrapateena Feasibility Study Update DISCLAIMER The Carrapateena Project is still in a state of development, therefore the information in this document and conclusions presented should be viewed in this light. OZ Minerals and its Advisors have used reasonable endeavours to ensure this document is based on information that was current as of the date of the document. Statements contained in this document represent the reasonable judgments of OZ Minerals based on the information available at the time of preparation. OZ Minerals has relied on information provided by third parties (Information Providers) to produce this document and have not verified information provided by the Information Providers (unless specifically noted otherwise). OZ Minerals does not assume any responsibility or make any representations with respect to the adequacy, accuracy or completeness of such information. No responsibility is assumed for inaccuracies in reporting by the Information Providers or for inaccuracies in any other data source whether provided in writing or orally used in preparing or presenting the document. This document includes ‘forward-looking statements’. These statements relate to expectations, beliefs, intentions or strategies regarding the future. These statements may be identified by the use of words like ‘anticipate,’ ‘believe,’ ‘estimate,’ ‘expect,’ ‘intend,’ ‘may,’ ‘plan,’ ‘project,’ ‘will,’ ‘should,’ ‘seek,’ and similar expressions. The forward-looking statements reflect views and assumptions with respect to future events as of the date of this document and are subject to future conditions, and other risks and uncertainties, including but not limited to economic and political conditions and sovereign risk. Any forward-looking statements are subject to various risk factors that could cause the Project’s actual results to differ materially from the results expressed or anticipated in these statements. Such statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors (including the risks set out in Section 11), many of which are beyond the control of OZ Minerals and its directors and management. Forward-looking statements should therefore be read in conjunction with, and are qualified by reference to, risk factors as set out in Section 11, general assumptions, specific assumptions, the sensitivity analysis and other information in this document. OZ Minerals do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this document will actually occur and investors are cautioned not to place undue reliance on these forward- looking statements. OZ Minerals has no intention of updating or revising forward-looking statements, or publishing prospective financial and production information in the future, regardless of whether new information, future events or any other factors affect the information, contained in this document, except where required by law and which may affect the findings or projections contained in this document. All sections in this document should be viewed in the context of the entire document including, without limitation, any assumptions made or qualifications and statements of limitation contained in it, including this disclaimer. COPYRIGHT Copyright © OZ Minerals Carrapateena Pty Ltd and OZM Carrapateena Pty Ltd, 2017 All rights reserved This document and any related documentation is protected by copyright owned by OZ Minerals Carrapateena Pty Ltd and OZM Carrapateena Pty Ltd. Use or copying of this document or any related documentation, in whole or in part, without the written permission of OZ Minerals Carrapateena Pty Ltd and OZM Carrapateena Pty Ltd constitutes an infringement of its copyright. Carrapateena SLC FS Update / Doc # CA-MAN-REP-1000 Page 4 of 130 CA-MAN-REP-1000 Carrapateena Feasibility Study Update Carrapateena SLC FS Update / Doc # CA-MAN-REP-1000 Page 5 of 130 CA-MAN-REP-1000 Carrapateena Feasibility Study Update TABLE OF CONTENTS 1 INTRODUCTION ....................................................................................................................................................... 11 1.1 Purpose and scope ......................................................................................................................................................... 11 1.2 Overview .............................................................................................................................................................................. 11 1.3 Project Background ........................................................................................................................................................ 14 1.4 Study Objectives .............................................................................................................................................................. 17 1.5 Study Outcomes............................................................................................................................................................... 18 1.5.1 Major Work Packages .................................................................................................................................. 18 1.5.2 Verification of Key PFS Assumptions..................................................................................................... 20 1.5.3 Mine Plan Update .......................................................................................................................................... 21 2 RESOURCE AND RESERVE .................................................................................................................................... 22 2.1 Geology and Mineralisation ........................................................................................................................................ 22 2.2 Mineral Resource Estimate .......................................................................................................................................... 24 2.3 Ore Reserve ........................................................................................................................................................................ 24 2.4 Life of Mine Plan .............................................................................................................................................................. 25 2.5 Mineralised Grade Shells .............................................................................................................................................. 25 2.6 Regional Mineralisation ................................................................................................................................................ 29 3 MINING METHOD ................................................................................................................................................... 32 3.1 Geotechnical Background ............................................................................................................................................ 32 3.1.1 Caveability Assessment ..............................................................................................................................
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