PROMINENT HILL DELIVERING TODAY’S PLAN AND INCREASING TOMORROW’S VALUE
Inventory replacement Continue asset optimisationUnderground production ramp up to 3.5-4Mtpa*
⁄ Delineation drilling campaign to replace FY17-18 underground mining inventory nearing completion with no material changes to current mineralisation interpretation
⁄ 43 resource delineation (~10,900 metres) and 79 grade control (~15,600 metres) diamond drill holes completed since 2017 Mineral Resource update
⁄ Utilising pit ramp as drill platform to reduce drill metres and improve angle intercepts
⁄ Data to be processed and included in 2018 Mineral Resource Update
⁄ Design refinement to follow on new information and included in 2018 Ore Reserve update
⁄ View towards maintaining 10+ year mine life
⁄ Procurement process underway for Malu UG backfill plant and eastern primary fans
⁄ Rehandle into large surface fleet to commence in coming months to further increase efficiencies
⁄ Processing plant to remain at full capacity whilst processing higher grade underground ore and stockpiled open pit ore until mid-2023
⁄ Internal mining study undertaken aimed at identifying the potential of a higher value mine plan by leveraging all known mineralisation as additional mining fronts (majority i.e. 85% of material considered was inferred)
⁄ Two stage study investigating large range of design cut offs, extraction methodology, combinations of mining areas and haulage options
⁄ High level first pass to analyse value trends, generated ~80,000 scenarios
⁄ Second pass narrowed from ~30 to 4 indicative options for future investigation
⁄ Pathway identified to increase confidence in selected scenarios (subject to work program finalisation and internal funding approvals):
⁄ Staged further drilling at depth to confirm interpretations
⁄ Parallel haulage options investigation
⁄ Increase efficiency of existing plan
⁄ Identify opportunities for future growth
⁄ Realise value from resource synergies
⁄ Leverage existing expertise and infrastructure
⁄ Breakthrough of third portal lower in Open Pit complete
⁄ Establishment of three production areas underway, each to have independent ventilation systems and haulage routes
Existing Stopes and Declines
Looking NNW
Planned StopesInferred Mineral
Resources
Diamond Drilling from ramp in east of pit.
Liru DeclineReturn Air Exhaust
Ankata Decline
Fresh Air Intake
Malu Decline
Looking NNE
Existing Stopes and Declines
Planned Stopes
Planned Declines
Liru Decline Ankata Decline
Malu Decline East Decline
East MaluWest Malu
Ankata
0.00.51.01.52.02.53.03.54.04.5
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Mt o
f Ore
Actual Forecast
Underground production ramp up*
Prominent Hill processing profile**
2018 20242019 2020 2021 2022 2023
3.5–4.0Mt
9–10Mt
To 2029
Copper Stockpiles
Ore Reserve as at 30/6/17
12Mt @ 0.8% Cu, 0.4 g/t Au, 2 g/t Ag
Gold Stockpiles
Ore Reserve as at 30/6/17
15Mt @ 0.1% Cu, 0.8 g/t Au, 2 g/t Ag
Underground Ore Treatment
Ore Reserve as at 30/6/17
39Mt @ 1.4% Cu, 0.6 g/t Au, 3 g/t Ag
Reduction in plant capacity from 10Mtpa to 4Mtpa
Capital cost ~$5 millionOperating cost ~$15/t
Stockpile processing with no associated open pit mining
costs or fixed overheads
UG Ramp Up
OP
Ore
Tre
atm
ent
Plant Capacity
Chart not to scale
Drilling programs to continue Resource to Reserve conversion~ 90% of UG mining inventory currently in Reserve
* These production targets must be read in conjunction with the production cautionary statement on slide 3 of the Strategy Day 2018 ASX Release, dated 30 May 2018** Please read in conjunction with the Prominent Hill Mineral Resource and Ore Reserve compliance statement on slide 3 of the Strategy Day 2018 ASX Release, dated 30 May 2018
Proposed Further Drilling
• ~500 metres of development
• ~ 6,000 metres of diamond drilling
CARRAPATEENA – NEW MINE AND PROVINCE POTENTIAL On time project delivery
LIFE OF PROVINCE PLAN REVIEW UNDERWAY
⁄ Regional mineralisation:
⁄ Carrapateena (JORC Resource)⁄ Fremantle Doctor⁄ Khamsin⁄ Punt Hill⁄ Other province exploration targets
⁄ Mining methods:⁄ Sub Level Cave⁄ Block Cave⁄ Sub Level Open Stopes
⁄ Testing:⁄ Production rate, cut off grade, capital and operating costs as
inputs into Hill of Value analysis⁄ Site infrastructure requirements
⁄ Regional infrastructure capacity
⁄ Progression to Scoping Study expected by 2019
DECLINE DEVELOPMENT
⁄ Progressed through most challenging shale material
WATER
⁄ Successful water exploration program
⁄ Sufficient water identified to meet anticipated demand
WESTERN INFRASTRUCTURE CORRIDOR
⁄ ElectraNet awarded contract for construction of powerline
⁄ Fibre link installation underway - on track for November 2018 step change in site connectivity
General Manager -Operations
Myles Johnston
Deputy General Manager
Jack Dermody
Mine ManagerJohn Lean
Downer General Manager
Mark Roderick
Downer Operations Manager
James Glover
Downer Mining SuperintendentJason Dswonitzky
Processing ManagerJoe Seppelt
Maintenance ManagerPaul Barac
Integrated Planning Manager
Andrew Mooney
Principal Engineer
Rod Hocking
Geotechnical Superintendent
Glen Balog
Lead Geologist Heather Pearce
Operational readiness advancing
Cave flow monitoring
Indicative cave back propagation
Carrapateena design site layout
Province planning underway
Carrapateena actual site
MINING AND OPERATIONS
⁄ Transition underway to the OZ / Downer EDI Mining Alliance
⁄ Simplified mine design and ongoing optimisation of schedule to support operational delivery
⁄ Integrated UG Mining and UG Infrastructure team
⁄ Key Operational Manager roles recruited – extensive caving experience
AIRSTRIP
⁄ On schedule for flights in July
PROCESSING PLANT AND NON-PROCESS INFRASTRUCTURE
⁄ Long lead items ordered
⁄ Detailed design progressing
⁄ Plant bulk earthworks underway
TAILINGS STORAGE FACILITY
⁄ Detailed design to be complete early June
⁄ Commencing discussions with Contractor to execute scope mid-June
ADDITIONAL GEOTECHNICAL DRILLING⁄ Independent review and logging of core⁄ Cover drill holes for raise bores, underground chambers and
cave cover sequence⁄ Updated geotechnical stress information to better inform
cave modelling⁄ Ability to refine mine design prior to reaching orebody
CAVE MANAGEMENT⁄ Updated cave flow modelling with new data⁄ Defined cave management strategy and monitoring plan
equipment⁄ Additional cave flow modelling and pre-production test work
underway⁄ Management of potential fines dilution from soft cover
sequence being improved
CAVE REVIEW BOARD⁄ Independent technical review and guidance⁄ Supports safe and efficient cave operations⁄ Every quarter through project phase and into operations
2017 Ore Reserve SLC footprint
Mineralised Hematite Breccia*
LEGEND
Classification Tonnes(Mt)
Cu(%)
Au(g/t)
Ag(g/t)
Cu(Kt)
Au(Koz)
Ag(Moz)
Proved 0 0 0 0 0 0 0Probable 79 1.8 0.7 8.5 1,400 1,800 22Total 79 1.8 0.7 8.5 1,400 1,800 22
Carrapateena Ore Reserve estimate August 2017 (at A$90/t NSR cut-off)*
* Please read in conjunction with the Carrapateena Mineral Resource and Ore Reserve compliance statement on slide 4 of the Strategy Day 2018 ASX release, dated 30 May 2018
Wireframes showing interpreted limits of the hematite brecciaCarrapateena SLC mine design layout
Carrapateena geophysical
Exploration tenements
Deputy Project Director
Rob Gerrard
Commercial Manager
Kenneth HoggQCLNG ProjectGLNG ProjectAPLNG ProjectEagle Downs
Roy HillAdaniFMGTelfer
Ichthys LNG ProjectGorgon LNG ProjectPluto LNG Project
Ichthys LNG ProjectQCLNG ProjectGLNG Project
Roy HillCadia East
Kestrel Mine Extension
Mako Gold ProjectPanama Copper/Gold
ProjectYandi
Project DirectorDavid Gallery
Surface Construction Manager
Archie Ferguson
Processing Plant and NPI
Ben Baade
Underground Infrastructure
Peter Burns
Project Controls Ron Hasting
BHP Olympic DamFMG Chichester HubRio Tinto Nammuldi
Mount IsaErnest Henry SLC
Dugald River
Cadia East BCRidgeway BC
Telfer SLC
Cadia ValleyOlympic Dam
Prominent HillArrium
Cadia East BCPalabora
Olympic Dam
Northparkes
Cadia East BCTelfer SLC
Las Bambas
Cadia East BCRidgeway BC
Wafi-Golpu BCNorthparkes
Telfer SLC
Mount Gordon
SLC
Telfer SLCDugald River
WEST MUSGRAVE – SOLID BASE CASE AND PROVINCE OPPORTUNITYPre-Feasibility Study activity Province exploration potential Adding value through project development
⁄ Nebo and Babel deposits primary focus with copper and nickel mineralisation
⁄ Resource infill drilling to extend mine life and upgrade the mineral resource
⁄ Additional metallurgical test work
⁄ Environmental surveys for mine permitting
⁄ Groundwater investigations
⁄ Renewable energy baseline data collection
⁄ Consultation with key stakeholder groups
⁄ Additional exploration targets
⁄ Further Scoping Study delivered positive economic outcomes for a
large, low cost mine
⁄ Mining rate of 10+Mtpa with initial eight year mine life*
⁄ Capex cost estimate $730-800 million, project payback in 3-4 years
⁄ Average annual production:
⁄ 25-30ktpa copper contained in sulphide concentrate*
⁄ 20-25ktpa nickel contained in sulphide concentrate*
⁄ Cash costs forecast to be at the lowest end of the range of Australian
nickel and copper producers
^ Seconded from OZ Minerals
Expected project timeline
Drill rig at West Musgrave
Metallurgical drilling
⁄ Further near mine and district opportunities
⁄ Mineralised trend extends over 40km
⁄ Succoth Deposit copper Resource
⁄ Exploration targets at: One Tree Hill, Yappsu, Suez, Babylon, Esagila
West Musgrave Project Director
ExplorationManager
Senior Geologist
Technical Specialist
Geophysical Consultant
Project Geologist^
Logistics Officer
GIS Analyst/ Database Analyst
Field Personnel - Field Geologists- Field Technicians- Paramedic/ HSEC
Metallurgist Lead
Metallurgical Consultancy
Resource Geologist
Lead
Community and Heritage
Lead
EnvironmentApprovals
Lead
WaterConsultancy
EnvironmentalConsultancy
West Australian Government
Deputy Director
Joint Venture CommitteeCassini and OZ Minerals
Wind mast* The information regarding the West Musgrave Project is extracted from Cassini Resources’ ASX Release entitled ‘Positive OZ Minerals Decision & Scoping Study Results’ dated 14 November 2017 and is available at www.cassiniresources.com.au/investor-relations/asx-announcements . OZ Minerals is not aware of any new information or data that materially affects the information included in that announcement. OZ Minerals confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from that announcement.
*
EXPLORATION AND GROWTH – BUILDING THE OPPORTUNITY PIPELINE
Organisation Structure ⁄ Dedicated teams with distinct aptitude focusing on strategic initiatives across the full exploration and growth pipeline
⁄ Identify, assess and actively pursue the acquisition of multiple value accretive growth assets which are consistent with OZ Minerals’ strategy
⁄ Distinct teams provide agility to deliver during periods of high workflow
Richard HolmesHead of Exploration & Growth
Jared Jacob Group Manager M&A
Mark Irwin Chief Commercial Officer
Exploration & Growth Inorganic GrowthJoint Venture earn-ins, in-house exploration
Dedicated team focused on copper and base metals
Exploration – feeding the growth pipeline
Global exploration sites
Seek value accretive acquisitions and exploration opportunities⁄ Opportunities aligned to strategy, that meet rigorous investment hurdles and are value accretive
⁄ Consider geopolitical conditions, style of mineralisation, copper focus but also base metals
⁄ Province optimisation potential, copper-rich provinces where initial or existing developments work as a hub for wider extraction opportunities
⁄ Exploration approach generally earn-ins with experienced explorers
⁄ Exploration pipeline is churned, adding new ventures and quickly ceasing those that do not meet expectations
EXPLORATION DRILLING UNDERWAY
Infill EM results and J1 drilling (Complete, awaiting assays)
Complete
Ongoing
Regional targets from EM(Forward program to July)
Wide-spaced testing of J3(Initial Alteration Vectoring)
⁄ Targeting Eloise style massive sulphides in partnership with Minotaur Exploration⁄ 60km southeast of Cloncurry, Queensland⁄ OZ Minerals acquired a 51% interest in Q1 2018 and can earn up to 70% with an additional $5 million spend⁄ ~5,000m drill program commenced April 2018
Eloise
Eloise core samples
⁄ Targeting IOCG mineralisation in partnership with Avrupa Minerals ⁄ $1 million required spend by July 2018 for 51% earn-in, additional $3 million spend by Q3 2019 for 75%⁄ ~100km south east of Lisbon in the famed Iberian pyrite belt⁄ Drilling commenced April 2018 - 2,100m drill program in 2018 consists of 15 holes⁄ Testing a variety of target types based on geochemistry, geophysics, geologic mapping of rock types/contacts and structure⁄ Good correlation between collected geophysics and geologic float mapping (mapping completed between June and
November 2017)
Alvito
Alvito core samples Gossan samples
Gravity survey