QUARTERLY REPORT FIRST QUARTER REPORT 2015 FOR THE THREE MONTHS ENDING 31 MARCH 2015

Transcription

1 QUARTERLY REPORT FIRST QUARTER REPORT 2015 FOR THE THREE MONTHS ENDING 31 MARCH 2015 PROMINENT HILL CONTAINED METAL PRODUCTION MAR Q TOTAL COPPER (TONNES) 31,160 TOTAL GOLD (OUNCES) 32,874 C1 CASH COSTS (US cents/lb) 63.2 OPERATIONAL HIGHLIGHTS Strong start to 2015 with copper production of 31,160 tonnes and gold production of 32,874 ounces. Open pit unit mining costs of $5.77/t with one excavator and 12 trucks demobilised in January. Reduction in C1 unit costs to US63.2 c/lb guidance for copper production of 110,000 to 120,000 tonnes, gold production of 100,000 to 110,000 ounces. STATEGIC REVIEW COMPLETED Strategic review commenced in December has now been completed. OZ Minerals new global growth strategy will be facilitated by reliable and optimised production from Prominent Hill. Outcomes delivered in the first quarter include: Sale of Sandfire stake for gross proceeds of $125 million, following a revised equity strategy. Decision to relocate the Corporate function to Adelaide to reduce cost, improve accountabilities, and better align with current business scope and opportunities in SA. Value optimising studies commenced at Carrapateena including Hydromet, rail and actions including suspension of the sale process, suspension of Fremantle Doctor drilling, and clarification regarding the path forward. Entered into partnership with South Australian Government, including funding contribution to Carrapateena studies. Refer to separate ASX release and associated strategic review presentation for further details. OZ Minerals Managing Director and CEO Andrew Cole says The OZ Minerals team has focused on delivering an encouraging first quarter with below guidance costs, above guidance copper production and an improvement in safety. We also announced a number of significant strategic changes to unlock long-term sustainable growth. The changes announced in today s Strategic Review will begin to flow through the business in the second quarter but will take longer to be fully realised across the entire Company. We are committed to implementing our announced strategy to create significant value in the long term in a manner that does not distract the front line teams from delivering short term profit. Andrew Cole Managing Director and Chief Executive Officer 20 April 2015

2 OZ MINERALS QUARTERLY ACTIVITIES TO 31 MARCH 2015 SAFETY OZ Minerals total recordable injury frequency rate per million hours worked was 6.86 at the end of March 2015, a decrease on 2014 (8.18). The lost time injury frequency rate also reduced to 1.72 (2014: 2.45). While these results are an improvement, the Company recognises that further work is required. The Company re-affirms its commitment to zero harm at work. OZ Minerals must do more to improve our safety practices. The Company s senior leadership has developed a program of work to improve our safety performance. PROMINENT HILL OPERATIONS PROMINENT HILL Overview Prominent Hill has started 2015 strongly with copper metal production of 31,160 tonnes for the quarter. Gold production of 32,874 ounces for the quarter was below the prior quarter s result due to copper fed being prioritised, lower milled gold grades and less gold only ore in the mill feed. In January one primary excavator and 12 trucks were demobilised from the open pit mining fleet. The reduction in equipment is in line with the value optimised mine plan. The demobilisation mainly reflects the reducing waste movement profile, together with continuing operational and production improvements. The reduced fleet and lower material movement is expected to result in lower open pit expenditure in 2015 compared to For operating and cost statistics please refer to Tables 1 and 2 on pages 6 and 7 of this report Guidance OZ Minerals has also released guidance for Prominent Hill is expected to produce between 110,000 to 120,000 tonnes of copper and 100,000 to 110,000 ounces of gold. C1 costs expressed in US cents per payable pound of copper are expected to be in the range of 80 to 95 cents. For further 2015 guidance statistics please refer to Table 3 on page 8 of this report. MINING Malu Open Pit Operations in the Malu Open Pit continued recent strong performance. Excavator productivities improved following the Christmas period and the demobilisation event. The current mining fleet now consists of two primary excavators and 32 trucks. The next stage of equipment demobilisation is currently forecast to occur in early Ore material moved in the first quarter was 2.9Mt consisting of 2.0Mt of copper-gold ore and 0.9Mt of gold only ore. Waste material movement in the first quarter was 10.1Mt, which was 3.1Mt less than the fourth quarter of The waste strip ratio for the quarter was 3.5:1. Focus in the open pit for 2015 will be the continued optimisation of excavator productivities, truck payloads and maximising equipment efficiencies. The delivery of reliable and predictable production from the Malu Open Pit is a key tenent of the Company s strategy. In order to further de-risk the open pit, minor overburden from the top of the open pit and associated south waste dump is planned to be removed in the second quarter. The total cost of this work is estimated at $4 million. Underground operations The Ankata mine maintained a consistent performance with 343,548 tonnes mined at an average copper grade of 2.19%. Ankata has proven to be a reliable source of high grade ore and production from Ankata is again expected to total 1.2Mt for Mining from Malu Underground continued with 117,398 tonnes mined in the first quarter at an average copper grade of 2.42%. The high grade reflects the mining of the Felix stope with mined grades expected to revert closer to reserve grade over the remainder of the year. Mining development rates at both underground mines is a critical area of focus in Development rates in the first quarter were hampered by lower levels of equipment availability as older equipment is replaced with new. The expected expenditure at the Malu Underground has been reduced in 2015 to $80 million, below previous guidance of $91 million. This change reflects deferred diamond drilling, given the current significant reserve and lower levels of development. 2

3 Processing During the quarter 2.5Mt of ore was milled, with the plant continuing to perform well. The plant is scheduled to mill approximately 10Mt of ore in A planned shutdown was competed safely in January and the plant is expected to again run to a three primary shutdown schedule in Plant recoveries remained high at 89 percent for copper and 75 percent for gold. Copper content in concentrate produced was 54 percent. During the quarter the stockpile management program was enhanced to further enable customised concentrate parcels to be produced in order to maximise sales opportunities. Costs C1 cash costs of production for the quarter were US63.2 c/lb. Costs were lower than the previous quarter (US83.0 c/lb) due to lower underground costs, higher copper production and a lower Australian dollar, partially offset by lower by-product credits from lower gold production. Open pit mining unit costs were $5.77 per tonne mined for the quarter, reflecting a reduction in material movement using less equipment. Total cash expenditure for the Malu Open Pit was significantly less than the fourth quarter of The waste mining deferral was lower than the prior quarter primarily due to lower total expenditure. A combination of increased tonnes mined, timing of paste fill and a high capitalisation ratio resulted in Ankata unit costs decreasing to $30 per tonne mined. Processing and maintenance costs were lower with a planned shutdown successfully completed in early January and slightly lower mill throughput. Treatment and refining charges increased with US Dollar based settled benchmark rates higher in Revenue and associated costs for the Malu Underground continued to be capitalised in the first quarter. Sales and Marketing Shipments of Prominent Hill concentrates for the quarter totalled 45,767 dry metric tonnes, containing 25,289 tonnes copper, 29,650 ounces of gold and 144,430 ounces of silver. In 2015 the Company intends to continue its strategy of diversifying its customer base through sales of customised concentrate to smelters, traders and blending operations. CARRAPATEENA PROJECT On 11 February the Company announced a number of initiatives to maximise value from the Carrapateena project, including: Progressing to demonstration scale, the development of a hydrometallurgical process with the potential to significantly increase the value of OZ Minerals copper concentrates. Progressing to Pre-feasibility Study, the option of railing ore from Carrapateena to Prominent Hill for treatment in the existing facility. A partnership with the South Australian Government to advance research and development in the State and to explore potential infrastructure solutions. As a result of the potential of these opportunities to enhance the project s value, the Carrapateena partnering process was suspended. Given that drilling to date has proven the prospectivity of the Carrapateena district, further drilling was also suspended. Exploration Exploration in the first quarter was focused on Fremantle Doctor prospect where four holes were drilled to completion and drilling was then suspended. The mineralised zone at Fremantle Doctor remains open to the east north and west. Complete assay results for three holes were returned during the quarter. The best intersection is 283.8m at 1.1% Cu and 0.9g/t Au in massive hematite breccia from 1275m downhole** in DD14FDR017. See results in table 1 below. 3

4 Table 1 Hole Number From (m) Interval (m) Cu (%) Au (g/t) DD14FDR014* Including** DD14FDR014* Including** DD14FDR015* Including** Table 2 Hole ID From To Interval Cu (%) Au (g/t) CuEq (%) CON Including Including Intervals calculated using unlimited internal dilution. Copper equivalents are calculated using a US $3.00/lb. copper and a US$1200 per ounce gold price assuming 100% recovery of both metals. All intersections are drilled lengths. Too little information is available to estimate actual true widths. DD14FDR017* Including** Including** DD14FDR017* Including** Including** Including** Including** Including** DD14FDR018* DD14FDR018* Including** Including** Including** *Intervals calculated using a 0.1 percent copper cut-off grade with unlimited internal dilution. **Intervals calculated using a 0.7 percent cut-off grade up to/including 4m internal dilution. Detailed information required under JORC 2012 can be found in Appendix 1 to this Report. GLOBAL EXPLORATION Jamaica potential earn-in to 80 percent In Jamaica at the Bellas Gate project, drilling is targeting shallow copper-gold porphyry-style systems. Two rigs are currently drilling at Bellas Gate. One at the Geo Hill prospect located 2km west of the Connors prospect and the other at Hendley which is 5km northwest of Connors. Assays are pending for both prospects. Significant results from the Connors prospect during the period are contained in table 2. Detailed information required under JORC 2012 can be found in Appendix 1 to this report. CORPORATE Relocation to Adelaide As announced in February the corporate functions currently conducted in Melbourne will be relocating to Adelaide in Recruitment for roles relocated to Adelaide has commenced with the Melbourne office expected to close in August 2015, with most functions transitioning before this date. CORPORATE INFORMATION Webcast As is OZ Minerals established practice, a presentation associated with this Quarterly Report will be broadcast at 10am (AEST) on the day that the Report is lodged with the ASX. Access to this live broadcast is available to all interested parties via the OZ Minerals website ( and is archived on the website shortly thereafter for ongoing public access. The date of each Quarterly Report presentation is announced in advance and can be found on the OZ Minerals website. While we will endeavour to release the Report on the date provided in advance, we may bring the announcement forward if the relevant information is finalised earlier than expected or delay the Report if information is not final. 4

5 ANNUAL GENERAL MEETING OZ Minerals Annual General Meeting will be held on Monday 25 May 2015 at 2:30 pm Adelaide time (3.00pm AEST) at the Adelaide Oval, William Magarey Room, Level 3, Riverbank Stand, North Adelaide, South Australia REPORTS OZ Minerals 2014 Annual report and sustainability report are available on the OZ Minerals website at ISSUED SHARE CAPITAL AT 17 APRIL 2015 Competent Persons Statement The information in this report that relates to exploration results in respect to the Fremantle Doctor and Connors prospects are based on and fairly represents information and supporting documentation compiled by Mr Anthony Houston BSc, a competent person who a member of the Australian Institute of Geoscientists. Mr Houston who is a full time employee of OZ Minerals Limited. Mr Houston is a shareholder of OZ Minerals and is entitled to participate in the OZ Minerals Long Term Incentive Plan. Mr Houston has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Houston consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. OZMINERALS.COM ORDINARY SHARES 303,470,022 SHARE PRICE ACTIVITY FOR THE MARCH QUARTER (CLOSING PRICE) HIGH $4.25 LOW $3.11 LAST $3.91 (17 APRIL 2015) AVERAGE DAILY VOLUME 2.5 MILLION SHARES SHARE REGISTRY Link Market Services Limited Level 1, 333 Collins Street, Melbourne VIC 3000 Telephone Australia: (+61) Facsimile: +61 (2) registrars@linkmarketservices.com.au REGISTERED OFFICE Level 10, 31 Queen Street Melbourne, VIC 3000 GPO Box 1291K, Melbourne, VIC 3001 Telephone: +61 (3) Fax: +61 (3) INVESTOR AND MEDIA ENQUIRIES CONTACT INVESTORS & MEDIA Peter Hannam Acting Head of Investor and External Relations Telephone: +61 (3) Mobile: +61 (0) peter.hannam@ozminerals.com 5

6 OZ MINERALS PROMINENT HILL PRODUCTION & COSTS Table 3 Operating Statistics DEC 14 MAR 15 MINED (TONNES) MALU OP COPPER-GOLD ORE 2,077,955 2,015,181 MINED GRADE - SOURCE MALU OP - COPPER-GOLD ORE MALU OP - GOLD-ONLY ORE ANKATA - TOTAL ORE MALU UG - TOTAL ORE* MALU OP GOLD-ONLY ORE 1,477, ,489 ANKATA TOTAL ORE 292, ,548 MALU UG TOTAL ORE 126, ,398 WASTE 14,036,393 9,937,196 COPPER (%) GOLD (G/T) COPPER (%) GOLD (G/T) COPPER (%) GOLD (G/T) COPPER (%) GOLD (G/T) MINED GRADE - TOTAL MALU COPPER (%) ANKATA COPPER (%) GOLD (G/T) SILVER (G/T) ORE MILLED (TONNES) 2,598,466 2,483,464 MILLED GRADE COPPER (%) GOLD (G/T) SILVER (G/T) RECOVERY COPPER (%) GOLD (%) SILVER (%) COPPER CONCENTRATE PRODUCED CONCENTRATE GRADE CONTAINED METAL IN CONCENTRATES PRODUCED TONNES 47,860 57,331 COPPER (%) GOLD (G/T) SILVER (G/T) COPPER (TONNES) 26,002 31,160 GOLD (OZ) 36,288 32,874 SILVER (OZ) 169, ,596 TOTAL CONCENTRATE SOLD** (DM TONNES) 68,317 45,767 * In Q1 2015, revenue and associated costs relating to concentrate attributable to the Malu Underground were capitalised. Concentrate sold during the quarter attributable to the pre commissioning ore from the Malu Underground mine was 5,582 dry metric tonnes, containing 3,121 tonnes of copper, 317 ounces of gold and 801 ounces of silver. **Excludes sales of third party concentrates. 6

7 Table 4 Operating Costs ( C1 Costs ) US CENTS PER POUND DEC 15 MAR 15 MINING COSTS DEFERRED MINING (66.6) (43.4) ORE INVENTORY ADJ (31.9) (7.3) TOTAL MINING COSTS TOTAL SITE PROCESSING COSTS TC/RC AND TRANSPORT NET BY-PRODUCT CREDIT (79.6) (61.2) OTHER DIRECT CASH COSTS TOTAL C1 COSTS ROYALTIES OTHER INDIRECT COSTS TOTAL CASH COSTS D&A OTHER NON CASH COSTS (31.2) (14.1) LOW GRADE GOLD ORE NET REALISABLE VALUE ADJUSTMENT TOTAL PRODUCTION COSTS

8 Table 5 Guidance ITEM RANGE/AMOUNT 2015 COPPER PRODUCTION 110,000 TO 120,000 TONNES COPPER PRODUCTION 105,000 TO 115,000 TONNES 2018 COPPER PRODUCTION 95,000 TO 105,000 TONNES GOLD PRODUCTION 100,000 TO 110,000 OUNCES PER ANNUM 2015 OPEN PIT TOTAL MOVEMENT 48MT TO 52MT 2015 OPEN PIT STRIP RATIO TIMES 2015 UNDERGROUND ORE MOVEMENT MT 2015 OPEN PIT UNIT MINING COSTS (INC GEOLOGY) $5.80-$6.10/T 2015 C1 COSTS US80 TO US 95 C/LB 2015 MALU UNDERGROUND CAPITAL EXPENDITURE $80M 2015 SUSTAINING CAPITAL EXPENDITURE $16M 2015 STUDIES AND EXPLORATION HYDROMET $19M OTHER STUDIES (RAIL, MALU DEEPS) $6M CARRAPATEENA DRILLING $5M GLOBAL DRILLING $8M OTHER CARRAPATEENA ACTIVITIES AND LEASE RETENTION $7M 8

9 CARRAPATEENA PROJECT: FREMANTLE DOCTOR DRILL HOLE INFORMATION Table 6 Hole Name Total Depth (m) East (MGA) North (MGA) RL (Local) Dip Azimuth (MGA) From (m) To (m) Width (m) DD14FDR015* DD14FDR016** DD14FDR017* DD14FDR018* N/A Cu % Au g/t *Intervals calculated using a 0.1% Cu cut-off grade with unlimited internal dilution. **Drilling terminated in cover sequence no sample s were taken. Redrilled as DD14FDR017. All intervals are drilled lengths. 9

10 CARRAPATEENA PROJECT: FREMANTLE DOCTOR JORC 2012 Table 1 Section 1: Sampling techniques and data Criteria Sampling techniques Comments All basement samples consist of diamond drill core (NQ2 and HQ) cut with an automatic core saw and sampled as half core, except for field duplicates, where quarter core was sampled. The method of sampling is considered to be of an acceptable quality for the reporting of Exploration Results. Predominantly 1m samples were obtained, but lengths range from 0.5m to 1.5m where adjusted to geological or major alteration boundaries. All available basement drill core was sampled. Entire samples were crushed then pulverised to a nominal 90% passing 75 microns. The resulting pulps were analysed using a variety of methods which included multi acid digest with ICP-OES determination for Cu, and fire assay (40g charge) with AAS finish for Au. Sub-sampling, sample preparation, assay methods and assay quality are discussed in the criterion Sub-sampling techniques and sample preparation below. Drilling techniques Drill sample recovery Drill holes were diamond cored from surface using a combination of PQ, HQ and NQ2 core sizes. Holes were inclined and core was oriented using an ACT core orientation tool. Length-based core recovery was measured from reassembled core for every drill run. The data were recorded in a SQL Server database via a GBIS front end. Average core recovery was high with more than 99 percent recovered through the reported intersections. The style of mineralisation and drilling methods employed lead to very high sample recovery, so no further effort was considered necessary to increase core recovery. Scatterplots of grade and core recovery do not suggest any relationship. The very high core recovery means that any effect of such losses would be negligible if such a relationship were to exist. Logging All core samples were geologically logged by geologists and are considered to have been logged in appropriate detail to support Mineral Resource estimation, mining studies and metallurgical studies. Detailed geotechnical logging was not carried out for the reported drill holes, however RQD and geological structural data were collected for all core drilled. Core logs were qualitative and quantitative in nature. Lithology and alteration were logged qualitatively; mineralisation was logged quantitatively. Core was photographed both dry and wet after metre marking and orientation. All recovered core (3667 metres, 100 percent) from the relevant intersections was geologically logged. Sub-sampling techniques and sample preparation All sampled core was cut with an automatic core saw in a consistent way that preserved the bottom of hole reference line, where present. Half core was used for normal sampling and quarter core for field duplicates. Samples were mostly 1m in length, but also ranged from 0.5m to 1.5m if adjusted to geological or major alteration boundaries. Only core samples were used in basement. Sample preparation included drying, crushing, and pulverising in full to a nominal 90% passing 75 microns. This is considered industry standard for this style of mineralisation. Controlled copies of SOPs (Standard Operating Procedures) and sign-offs exist for all sampling steps, and all staff were adequately trained in these. Checks were made by geologists on sampling prior to loading data into the database. Sample representativity was monitored by taking field duplicates, lab coarse crush, and pulp duplicates every 50 samples. Sizing data was collected for one in every 20 pulverised samples by the laboratory analysing the samples. Analysis of these results indicates that the sampling is representative. 10

11 Criteria Quality of assay data and laboratory tests Comments Analysis of duplicate data from a variety of scales, from quarter core to crushed core to pulp duplicates, indicates the sample sizes are appropriate to the grain size of the material being sampled. All samples were assayed at Bureau Veritas Adelaide Laboratory (Amdel). Copper grades were determined using a multi-acid digest with ICP-OES finish. Gold grades were determined by 40g fire assay with AAS finish. Review of QAQC results confirms that the quality of the data is acceptable. Geophysical measurements of magnetic susceptibility and radioactivity were taken on drill core but this data has not been used to determine any element concentrations. Assay data quality was monitored through submission of certified standards and blanks every 25 samples, quarter core field duplicates and lab coarse crush and pulp duplicates every 50 samples. Analysis of results from these samples showed that levels of bias, precision and contamination are within limits that are considered acceptable. Verification of sampling and assaying Documented verification of significant intervals by independent personnel has not been done, however the intersections have been verified by alternative personnel within OZ Minerals and the tenor of Cu is visually predictable. No twin holes have been drilled because the focus to date has been on finding high grade mineralisation. Primary data is stored both in its source electronic form, and, where applicable, on paper. Assay data is retained in both the original certificate (.pdf) form, where available, and the text files received from the laboratory. Core logging was directly into the database using Toughbooks. Core length measurements for recovery were made on paper prior to entry into the database. Different user profiles and security settings exist to minimise the possibility of inadvertent modification of data. Assay data were reviewed visually for reasonableness. Where assay results are below detection limit, a value of half the detection limit has been used. No other adjustments were made to assay data. Location of data points All collar locations were determined by DGPS, or GPS for easting and northing, projected onto a digital terrain model (DTM) to determine elevation. All drill holes had magnetic down hole surveys taken at nominal 30m intervals using digital Reflex EZ-Trac equipment. Completed holes were gyro surveyed using a conventional Reflex Gyro tool. The collar reference azimuth for most holes was calculated using a "best-fit" with EZ-Trac (magnetic) surveys in non-magnetic ground in the cover sequence. To minimise the effect of drift of azimuth measurements with the conventional gyro, an average of multiple runs was normally used, typically four runs. The difference in interpreted volume of mineralisation due to drill hole position uncertainty is considered to be immaterial for the purpose of reporting Exploration Results or estimating Mineral Resources. The grid is MGA94 zone 53 south. Local elevations have been used, where 5000mRL is equal to Australian Height Datum. A DTM was flown by OZ Minerals in April The accuracy of the 2012 DTM is considered to be acceptable for the determination of collar elevation for the reported Exploration Results. Data spacing and distribution Drill holes at Fremantle Doctor were drilled in a variety of directions and the spacing between holes is not uniform. Drill hole locations are shown on page 19 of this document. At Fremantle Doctor, holes have been drilled in different directions so the hole spacing varies widely depending on the location. The closest distance between any two neighbouring significant intersections reported to date varies from 23m (between DD13FDR005 and DD14FDR005W1) to approximately 250m (between DD14FDR008 and DD14FDR011). It should be noted that these are the closest distances, the holes generally diverge with depth and the mean distances between significant intervals are larger than this. No new or updated Mineral Resource or Ore Reserve estimate has been reported in this release. 11

12 Criteria Comments No physical compositing of samples has occurred. Orientation of data in relation to geological structure Sample security Audits or reviews At Fremantle Doctor, the current, preliminary interpretation of the mineralisation is a sub-vertical body trending to the NNE/SSW dipping steeply to the WNW. The reported drilling occurs in a north, southeast and northwest orientation and intersects the interpreted structure of copper mineralisation obliquely. The orientations of drill holes are sufficiently varied that drilling orientation is not considered to have introduced a significant sampling bias. Samples were sent via road transport from Carrapateena Exploration Site to the laboratory in Adelaide. Despatches listing samples were sent electronically to the laboratory. Any discrepancy between listed and received samples was communicated back to site staff for resolution. An external audit of Bureau Veritas Adelaide laboratory was undertaken by ioglobal in October OZ Minerals geologists inspected Bureau Veritas Adelaide laboratory during April Minor issues were noted on both the audit and inspection but were not considered to be material overall. Drilling and core processing at Fremantle Doctor is conducted using the same facilities and protocols as for the Carrapateena deposit. AMC Consultants Pty Ltd undertook a review of the data collection and sampling procedures during an audit of the Carrapateena Mineral Resource estimate between 30 September and 3 October AMC formed the view that the data collection procedures were industry standard practice, with the exception of the monitoring of the quality control samples, which did not appear to be being undertaken on a batch by batch and continuous basis. Since AMC s audit, quality control data has been reviewed more frequently, and systematic monitoring of quality data occurs prior to the release of Exploration Results in any case. 12

13 CARRAPATEENA PROJECT: FREMANTLE DOCTOR JORC 2012 Table 1 Section 2: Reporting of exploration results Criteria Mineral tenement and land tenure status Exploration done by other parties Geology Comments The Fremantle Doctor prospect is located in South Australia in Exploration Licence 4903 which is held by OZ Minerals Carrapateena Pty Ltd (34 percent) and OZM Carrapateena Pty Ltd (66 percent), both wholly owned subsidiaries of OZ Minerals Limited. The tenement is located on the traditional lands of the Kokatha people. EL4903 is currently in good standing. No known impediments exist to obtaining a licence to operate in the area. In 2007 under a joint venture between RMG Services Pty and Teck Cominco Australia Pty Ltd, two holes were drilled on the northern margin of the Fremantle Doctor prospect (FD001 and FD002). They intersected altered granite-hematite breccias with patchy chalcopyrite mineralisation and altered granite with no observed mineralisation respectively. The Fremantle Doctor prospect is located within the Olympic copper gold (Cu-Au) Province on the eastern edge of the Gawler Craton. Mineralisation is hosted within Donington Suite granite and unconformably overlain by approximately 530m to 570m of Neoproterozoic sediments. Mineralisation and alteration is in the form of that seen at other large South Australian iron oxide copper gold (IOCG) deposits including Prominent Hill, Carrapateena and Olympic Dam. Drill hole Information Refer to Table 6. Data aggregation methods Relationship between mineralisation widths and intercept lengths All information material to the understanding of the Exploration Results has been included. Drill hole information for holes shown on the plan and section slides which are not included in Table 6 have been previously reported. All drill hole intervals referred to in this releaseare length-weighted and are calculated using the following cut-off grades: 0.1% Cu delimiting cut-off grade with unlimited internal dilution and no adjustments to high-grade samples. 0.4% Cu delimiting cut-off grade with unlimited internal dilution and no adjustments to high-grade samples. 0.7% Cu delimiting cut-off grade with up to/including 4 metres internal dilution and no adjustments to high-grade samples. High grade copper intervals within broader low grade intervals are reported as included using 0.4% Cu or 0.7% Cu cut-off grade with unlimited or up to/including 4 metres internal dilution respectively. Metal equivalents are not used for reporting of Exploration Results. At Fremantle Doctor, preliminary modelling indicates the mineralisation envelope is a massive body dipping steeply to the north-northwest with localised high grade zones having uncertain orientations. The interpreted envelope starts approximately 530m below the surface. Envelope boundaries are unknown at this stage as they are not constrained by many drill holes. The current modelling for the Fremantle Doctor prospect is still preliminary, and the angle at which mineralisation has been intersected is not known. Mineralisation at Fremantle Doctor has been reported as down hole lengths as the true width is not known. Diagrams Plan view diagram shown on page 18. Balanced reporting Other substantive exploration data All significant Exploration Results at Fremantle Doctor are reported. Drill holes for which information has been omitted for clarity in Table 3 have been previously reported or are historical holes drilled under a joint venture between RMG Services Pty and Teck Cominco Australia Pty Ltd and the results for these holes are not materially different from adjacent OZ Minerals drill holes. There is no other material exploration data at this time. Further work No further drilling work is planned in

14 CONNORS PROSPECT DRILL HOLE INFORMATION TABLE 7 Hole Name Total Depth (m) East (WGS84) North (WGS84) RL Dip AzimWGS84 From (m) To (m) Width (m) Cu % Au g/t CuEq % CON CON CON CON CON CON CON CON CON CON CON CON CON CON NSI CON CON CON NSI CON CON CON CON CON Complete assays not yet received 14

15 CONNORS PROSPECT JORC 2012 Table 1 - Section 1: Sampling techniques and data Criteria Sampling techniques. Commentary Exploration at the Connors prospect consists of diamond drilling from surface. All samples consist of diamond drill core (NQ3, HQ3, NTW and BTW) cut with a manual core saw and sampled as half core. The method of sampling is considered to be of an acceptable quality for the reporting of Exploration Results. Diamond drilling is used to obtain all samples. Predominantly 1m samples were obtained, but lengths range from 0.5m to 1.5m if adjusted to geological or major alteration boundaries. If core loss prohibits sampling on even metre intervals, sampling is based on individual runs (where runs are typically less than 1 m) The samples were crushed and pulverised to a nominal 95% passing -105 microns. The resulting pulp is assayed for a suite of 61 elements using a combination of Instrumental Neutron Activation Analysis (INAA) and ICP-MS, with over-range Cu analysed by ICP-OES. Sub-sampling, sample preparation, assay methods and assay quality are discussed in other parts of this table. Drilling techniques. Diamond holes were cored from surface using a combination of HQ3, NQ3, NTW and BTW core sizes. Where ground conditions permitted holes were oriented, initially using ACT II, and subsequently ACT III core orientation tools. Drill sample recovery. Length based core recovery was measured from core for every drill run. The data was recorded and archived in hard copy. Average recovery for reported holes is 96%. Drilling method as well as mud/water additives were selected to maximise drill core recovery. Logging. All core samples were geologically logged by trained geologists to a standard considered appropriate to reporting of exploration drill results. Core logs were qualitative and quantitative in nature. Lithology, alteration and mineralisation were logged qualitatively and structure quantitatively. Core is photographed both dry and wet prior to logging. 100% of the core drilled was geologically logged. Sub-sampling techniques and sample preparation. All core was cut with a manual core saw in a consistent way that preserved the bottom of hole reference line, where present. Half core was taken for sampling. Work reported is based solely on drill core. Sample preparation included drying, crushing to 90 per cent passing -2mm, rotary splitting 800 g, then pulverising this to 95 per cent passing -105 microns. Standard Operating Procedures (SOP's) exist for all sampling steps, and all staff were adequately trained in these. Due to the early stage exploratory nature of the two drill holes reported no lab or field duplicates were taken. It is considered that sample sizes are appropriate for the grain size of the material sampled. 15

16 Quality of assay data and laboratory tests. Copper grades were determined using a multi-acid digest with ICP-MS finish. Over-range samples were analysed with ICP-OES. Gold grades were determined by INAA. Analysis was undertaken by Activation Laboratories, Ancaster, Ontario, Canada. The techniques are considered to be total for all relevant elements. Review of QAQC results confirms that the quality of the data is acceptable. Measurements of magnetic susceptibility have been taken on drill core. Assay data quality was monitored through submission of certified standards and blanks every 25 samples. Analysis of results from these samples showed that levels of bias, precision and contamination are within limits that are considered acceptable. Verification of sampling and assaying. Documented verification of significant intervals by independent personnel has not been done No twin holes have been drilled. Primary data is stored both in its source electronic form, and, where applicable, on paper. Assay data is retained in both the original certificate (.pdf) form, where available, and as text files received from the laboratory. Sampling cutsheets are imported into a GBIS database. The GBIS database has inbuilt validation checks and triggers to ensure data is correct. Primary assay.sif file data from the laboratory is receipted and stored in a GBIS database. Where assay results are below detection limit, a value of negative detection limit (eg. <2ppb for Au is stored as -2 ppb). The impact of this on the interpretation is negligible. Location of data points. All collar locations were determined using a hand held GPS. All drill holes have magnetic downhole surveys taken at 50m intervals using digital Reflex EZ-Trac equipment. An azimuth adjustment of -7degrees was applied for the conversion from magnetic to WGS84 (zone 18N) Grid. The grid used is WGS 84 zone 18 north. Collar elevations were determined by handheld GPS. This is considered to be adequate for the reporting of exploration results. Data spacing and distribution. Spacing of drill sites was sufficient for the early stage of exploration. No Mineral Resource or Ore Reserve estimate has been reported for the Connors prospect. Sample compositing has not been applied. Orientation of data in relation to geological structure. Considering the deposit type, it is considered that the sampling is not biased by the sampling orientation. This is not considered material. Sample Security Audits or reviews. Samples were sent via road transport from the Bellas Gate core processing facility by project staff to the shipping agent in Kingston and forwarded by air to the laboratory in Ancaster, Ontario, Canada. Chain of Custody documentation is compiled through the shipping process. Any discrepancy between listed and received samples was communicated back to site staff for resolution. No audit has occurred on the sampling of the holes specific to this release. 16

17 CONNORS PROSPECT JORC 2012 Table 1 Section 2: Reporting of exploration results Criteria Mineral tenement and land tenure status Commentary The Connors Prospect is located on SEPL 538 within St Catherine Parish, Jamaica. SEPL 538 is held in the name of OZ Exploration Pty Ltd who hold a 60% interest and by Carube Resources Jamaica Limited, a wholly owned subsidiary of Carube Resources Inc., who hold the remaining 40%. OZ Exploration Pty Ltd can earn up to 80 per cent equity in the tenement under a joint venture agreement with Carube Resources Inc. SEPL538 is held in good standing. Exploration done by other parties Geology Shallow drilling with poor recoveries was undertaken by Jamaica Copper and Iron 1959 and by Geophysical Engineering in Several diamond holes completed by Golden Ring Resources (Jamaica) Ltd in Preliminary interpretation suggests porphyry copper- gold mineralisation. Drill hole information Refer to Table 7. All information material to the understanding of the Exploration Results has been included. Data aggregation methods All drill hole intervals referred to in this release are length-weighted and calculated with unlimited internal dilution. All drill hole intervals referred to in this release are length-weighted and calculated with unlimited internal dilution. Copper equivalents are calculated using a US$3.00/lb. copper and a US$1200 per ounce gold price assuming 100% recovery of both metals. Relationship between mineralisation widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data Further work These drill holes provide insufficient data to indicate mineralisation width. The geometry of mineralisation is not known. Mineralisation has been reported as down hole lengths, true width is not known. Plan view diagram for Connors prospect detailed below. All significant Exploration Results are reported. There is no other material exploration data at this time. Nearby areas of possible mineralisation are currently being reviewed and drilled. 17

18 DRILL HOLE LOCATIONS PLAN VIEW FREMANTLE DOCTOR PROSPECT CONNORS PROSPECT *Intervals calculated using unlimited dilution. Note: Copper equivalents are calculated using a US$3.00/lb. copper and a US$1200 per ounce gold price assuming 100% recovery of both metals. Intersections are drilled lengths only. Too little information is available to estimate actual true widths. 18