OZ to advance Carrapateena block cave expansion; FY'20 output within guidance

OZ Minerals Ltd. said Jan. 29 that it will proceed with the block cave expansion at the Carrapateena copper-gold mine in South Australia after receiving board approval for the project, with the block cave decline's early works scheduled to begin in the fourth quarter.

A June 2020 preliminary feasibility study outlined a net present value of about A$600 million, discounted at 8.5%, for the expansion project, with an internal rate of about 19%.

The Australia-listed miner reaffirmed certain findings from the study, including the increase in production to 12 million tonnes per year, with average yearly production to reach up to 120,000 tonnes of copper and up to 120,000 ounces of gold.

Earlier this month, OZ Minerals signed a five-year contract with Byrnecut Australia Pty. Ltd. for the delivery of underground mining services at Carrapateena.

In the fourth quarter of 2020, the miner's copper production totaled 28,939 tonnes, up 1% from year-ago quarter output of 28,659 tonnes, while gold production soared 81% to 66,895 ounces from 36,808 ounces.

Full-year 2020 copper output fell 11% to 97,620 tonnes while gold output doubled to 257,987 ounces, both meeting guidance.