2. OZ MINERALS • PAGE 2
This presentation has been prepared by OZ Minerals Limited (“OZ Minerals”) and consists of written materials/slides for a presentation
concerning OZ Minerals. By reviewing/attending this presentation, you agree to be bound by the following conditions.
No representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information, contained in the
presentation or of the views, opinions and conclusions contained in this material. To the maximum extent permitted by law, OZ Minerals and its
related bodies corporate and affiliates, and its respective directors, officers, employees, agents and advisers disclaim any liability (including,
without limitation any liability arising from fault or negligence) for any loss or damage arising from any use of this material or its contents,
including any error or omission therefrom, or otherwise arising in connection with it.
Some statements in this presentation are forward-looking statements within the meaning of the US securities laws. Such statements include, but
are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and
reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash
flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and
may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature,
forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future
and may be outside OZ Minerals’ control. Actual results and developments may differ materially from those expressed or implied in such
statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products
profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and
economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities, such as changes in
taxation or regulation.
Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements which speak only as at the date of the
presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, OZ Minerals does not
undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation, whether
as a result of any change in OZ Mineral’s expectations in relation to them, or any change in events, conditions or circumstances on which any
such statement is based.
Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been
independently verified.
All figures are expressed in Australian dollars unless stated otherwise.
DISCLAIMERS
3. OZ MINERALS • PAGE 3
DISCLAIMERS CONTINUED:
Production Outlook
a) The information that relates to Prominent Hill future production outlook (on pages 11 and 12) is extracted from the
report entitled “Prominent Hill Mineral Resources and Ore Reserves Statement as at 30 June 2013” released to the
market on 11 December 2013 (‘PHRR’) and is available to view on ww.ozminerals.com/operations/resources--
reserves.html. The Company confirms that it is not aware of any new information or data that materially affects the
information included in the PHRR and that all material assumptions and technical parameters underpinning the
estimates in the PHRR continue to apply and have not materially changed.
b) The production target for Malu Underground (on pages 11, 12, 56 and 58) is based on the Company’s current
expectations of future results or events and should not be solely relied upon by investors when making investment
decisions. It is based on the Company’s current understanding of the Resource. The Malu Underground Resource is
based on measured, indicated and inferred Resources. There is a low level of geological confidence associated with
inferred mineral resources, and there is no certainty that further exploration work will result in the determination of
indicated mineral resources or that the production target itself will be realised. The Company has not yet completed
the necessary technical studies to determine an ore reserve, and the production target should not be misconstrued
as an ore reserve. Further evaluation work and appropriate studies are required to establish sufficient confidence that
this target will be met.
4. OZ MINERALS • PAGE 4
DISCLAIMERS CONTINUED:
Reserves and Resources
The information in this presentation that relates to Prominent Hill Mineral Resources and Ore Reserves as at 30
June 2013 (on pages 30-33 and 45) is extracted from the report entitled “Prominent Hill Mineral Resources and
Ore Reserves Statement as at 30 June 2013” which was released to the market on 11 December 2013 and is
available to view on www.ozminerals.com/operations/resources--reserves.html. The Company confirms that it is
not aware of any new information or data that materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions
and technical parameters underpinning the estimates in the relevant market announcement continue to apply
and have not materially changed. The Company confirms that the form and context in which the Competent
Person’s findings are presented have not been materially modified from the original market announcement.
Ankata Resource Drilling
The information in this presentation that relates to Ankata Underground Resource Drilling is based on and fairly
represents information compiled by Mr Jim Hodgkison who is a member of the Australasian Institute of Mining
and Metallurgy. Jim Hodgkison is a full time employee of OZ Minerals Limited. He is a shareholder of OZ
Minerals and is entitled to participate in the OZ Minerals Performance Rights Plan. Mr Hodgkison has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity 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 (JORC 2012). Jim Hodgkison consents to
the inclusion in this presentation of the matters based on his information in the form and context in which it
appears.
5. OZ MINERALS • PAGE 5
CONTENTS
1. Site overview
2. Strategic planning
3. Costs
4. Geology
5. Open pit operations
6. Underground operations
7. Processing
8. Engineering
6. OZ MINERALS • PAGE 6
South Australia is a favourable mining
jurisdiction and Prominent Hill is well
located with respect to road and rail,
power and water. Export route to Asian
and European markets via Adelaide.
PROMINENT HILL
LOCATION
7. OZ MINERALS • PAGE 7
Deposit Iron-Oxide Copper Gold (IOCG)
Hematite breccia hosted
Mines Malu Open Pit
Ankata Underground - sub-level open stoping mine.
Malu Underground - commissioning expected to commence late 2014*
Mining rates Total material movement in Malu Open Pit to reduce steadily over the
remaining life of mine. Equipment de-mobilisation has commenced and
will continue.
Mining rates at Ankata to remain steady at ~1.2Mtpa
Mining rates at Malu Underground expected at 1.3-1.6Mtpa*
Plant Crush, grind, flotation
Nameplate 8Mtpa
Operating at ~9.5Mtpa since 2010.
Workforce Approximately 1,400 including contractors
and approximately 75% from South Australia.
Organisations on site Open cut mining: Thiess, Ausdrill
Underground mining: Byrnecut, Boart Longyear
Concentrate transport: Qube/Giacci
Village services: Sodexo
*Refer to p3 for Malu Underground disclaimer
PROMINENT HILL
COPPER GOLD OPERATION
8. OZ MINERALS • PAGE 8
Waste
Dumps
Pit
TAILINGS STORAGE
FACILITY
OPEN PIT
ROM PAD
PROCESSING
PLANT
VILLAGE
ANKATA
DEPOSIT
AREA
NORTHERN
WASTE DUMP
SOUTHERN
WASTE DUMP
MALU
UNDERGROUND
AREA
SITE
PROMINENT HILL
9. OZ MINERALS • PAGE 9
21.92
19.73
10.49
7.69
4.38
1.50 1.46 0.96
* Per millions hours worked
SAFETY MANAGEMENT
• Continuous improvement in safety performance since 2010.
• Twenty-six percent improvement in total recordable injury frequency rate (TRIFR) year on
year (2013: 7.69).
• Site Safety Forum enables OZ Minerals and contractors to identify strategies for better
safety outcomes across Prominent Hill.
• Focus on analysing incidents with potential for more serious consequences (high potential
incidents).
• Building a safety culture through the Culture Development Strategy – self-assessment tool
that assists OZ Minerals and contractors improve aspects of their culture that impact on
safety.
* *
Rate
* *
10. OZ MINERALS • PAGE 10
SITE CULTURE DEVELOPMENT STRATEGY
• Supports the OZ Minerals Values and site
wide culture development.
• Strives for consistency between all areas.
• Drives continuous improvement in
organisational culture and outcomes.
• Improved safety performance as an
outcome.
• Complements the business strategy of
key organisational alliances – Thiess,
Byrnecut & Sodexo.
11. OZ MINERALS • PAGE 11
MaluOpenPitand
AnkataReserve*
MaluUG
Resource*
2013 2014 2015 2016 2017 2018
73,362t
75-80,000t
95,000t+
Prominent Hill copper production profile
~10,000t
Average
10,000 – 20,000t
• Malu Open Pit and
Ankata Underground
production target for
2015 and beyond
based only on
Reserves.
• Treatment of
underground ore and
ROM stockpiles to
continue post 2018.
• Commissioning
planned in late 2014*.
95,000t+
95,000t+
95,000t+
(‘000t)
PROMINENT HILL
COPPER PRODUCTION OUTLOOK
100
0
*Refer to p3 for Production Outlook and Malu Underground disclaimer
12. OZ MINERALS • PAGE 12
MaluOpenPitand
AnkataReserve*
MaluUG
Resource*2013 2014 2015 2016 2017 2018
128,045oz
130-140,000oz
Prominent Hill gold production profile
~10,000
oz
• Malu Open Pit and
Ankata Underground
production target for
2015 and beyond based
only on Reserves.
•Treatment of
underground ore and
ROM stockpiles to
continue post 2018.
• High gold content
within copper ore.
Average
25,000-35,000oz
95,000oz+
95,000oz+
95,000oz+
95,000oz+
(‘000oz)
PROMINENT HILL
GOLD PRODUCTION OUTLOOK
100
0
*Refer to p3 for Production Outlook and Malu Underground disclaimer
13. OZ MINERALS • PAGE 13
PROMINENT HILL
No serious injuries. High
potential incidents focus.
Strong Malu Open Pit
performance.
Steady Ankata performance,
Malu Underground on track.
Open Pit focused on business
improvement initiatives
delivering results.
Strong site copper production
performance.
Costs within guidance.
2014 QUARTER 1 – PERFORMANCE HIGHLIGHTS
15. OZ MINERALS • PAGE 15
PROMINENT HILL
2014 KEY OPERATIONAL STRATEGIC OBJECTIVES AND FOCUS
SHEC
•High potential
incidents and critical
risk focus.
•Safety ownership at
all levels.
•MATES program.
Mining
•Mine +60Mt from
Malu Open Pit.
•Mine 1.2Mt Ankata
Underground ore.
•Begin Malu
Underground
production stoping.
Production
•Meet or exceed
market guidance on
quarterly and annual
basis.
Projects
•Maiden Malu
Underground
Reserve.
•Site wide optimised,
integrated LOM plan.
Business
Improvement
•34 active improvement
projects across site.
•Ongoing Malu Open
Pit production and
efficiency measures.
•Process plant
improvements.
Costs
•Whole of business
focus on unit and
total costs.
•Open pit equipment
demobilisation.
•Contract re-
negotiations.
2014 Prominent Hill Site Operational Strategic Objective
“Safe, Sustainable, Cost Effective Production”
16. OZ MINERALS • PAGE 16
•Feed blend optimisation
•Marketing requirements
•Scenario comparison for
value, risk and
opportunity
•Outcomes are aligned to
strategic objectives
•Mining sequence
optimisation
•Operational cut-off grade
analysis
•Malu project integration
•Resource optimisation
•Near mine extensional
Drilling targeting areas of
highest value
Resource
Development
and
Estimation
Mine
Planning and
Extraction
Mineral
Processing
Whole of
Operation
Value
Assessment
Resource value is
being maximised
through ongoing
integrated LOM
analysis.
Outcomes are
being
implemented
throughout the
operation.
PROMINENT HILL
LIFE OF MINE PLAN OPTIMISATION
17. OZ MINERALS • PAGE 17
*Refer to p3 for Production Outlook and Malu Underground disclaimer.
• LOM concept built
on integrated Malu
Open Pit, Ankata and
Malu Underground
mines paired with
current processing
plant.
• Malu Underground
studies improving
knowledge in key
areas i.e. potential
processing regimes
beyond open pit
stockpiles.
• Malu Underground is
the next progressive
step in establishing
longer term mine life
post the open pit.
PROMINENT HILL
CURRENT LIFE OF MINE CONCEPT
19. OZ MINERALS • PAGE 19
COSTS
• Overview of site production costs
Recent trends/performance
• Malu Open Pit
Recent history
Expenditure to decrease going forward
Break down of expenditure by activity and nature
• Modelling topics:
Taxation
Low grade gold ore
Stockpiles
• Cash balance
20. OZ MINERALS • PAGE 20
OVERVIEW OF SITE PRODUCTION COSTS
• Improvements in total site production costs quarter on quarter.
Improved efficiency and productivity in the open pit.
Ankata costs remain steady - Q1 2014 saw higher proportion of capital expenditure.
• Processing costs lower quarter on quarter. Reducing shut downs will also improve costs.
• Site G&A decreasing due to restructures.
• Reduction in gross cash spend has commenced with demobilisation of open pit equipment.
• Contract renegotiations have delivered material improvements in terms, efficiencies and
effectiveness.
MAR QTR 13 JUN QTR 13 SEP QTR 13 DEC QTR 13 MAR QTR 14
Open Pit mining costs 112.8 121.1 131.2 129.0 116.2
Ankata Underground mining costs 15.7 14.4 17.4 18.0 10.9
Deferred mining (33.5) (79.2) (88.0) (76.9) (68.4)
Ore inventory adjust (16.5) 11.2 15.7 (9.6) (5.5)
Total site processing costs 28.1 26.3 24.8 23.4 23.6
Other direct cash costs 9.5 9.7 9.4 8.8 7.6
Production Costs 116.1 103.5 110.6 92.7 84.4
Physicals
Tonnes mined Malu OP (kt) 18,298 20,223 23,836 24,427 22,249
Malu OP unit cost $6.16 $5.98 $5.50 $5.28 $5.22
Tonnes mined Ankata (kt) 289 303 275 336 286
Ankata UG unit cost $49 $45 $63 $54 $37
Tonnes milled (kt) 2,355 2,365 2,486 2,291 2,281
Payable lbs (m) 20,474 17,379 17,390 18,119 18,182
Brook Hunt C1 USc/lb $1.85 $1.95 $2.06 $1.34 $1.22
A$m
21. OZ MINERALS • PAGE 21
MALU OPEN PIT
GROSS OPEN PIT EXPENDITURE TO DECREASE
• Waste mining tonnages continue to progressively reduce – gross open pit expenditure to
decrease.
• One excavator and trucks demobilised in December 2013, next excavator and equipment to
be removed in Q2 2014.
• Future unit cost per tonne to be impacted by fixed costs being spread over fewer tonnes.
• Good progress is being made on efficiencies and costs – as demonstrated by Q1 performance
and general trend.
-
25.0
50.0
75.0
100.0
125.0
150.0
-
5
10
15
20
25
30
Q1 Q2 Q3 Q4 Q1
$AmKT
Tonnes & Gross A$ spend
Tonnes mined Malu OP (kt) Open Pit Mining costs
0
10
20
30
40
50
60
2014 2015 2016 2017 2018
Mt
Open Pit ore and waste movements
Open Pit waste hauled (Mt) Open Pit ore mined (Mt)
22. OZ MINERALS • PAGE 22
OPEN PIT EXPENDITURE
BY ACTIVITY & NATURE
• Negotiation with suppliers has yielded savings and/or avoided cost escalations.
23. OZ MINERALS • PAGE 23
Payment of taxation
• Because of timing differences between tax deductions and accounting deductions, tax
payments cannot be calculated as a function of accounting profit.
• Significant timing differences arise because a majority of the deferred waste capitalised for
accounts may be deducted immediately for tax.
• The 2013 Annual Report, Note 8, provides the opening deferred tax assets and tax liabilities.
• Current modelling indicates tax payment liabilities arising in respect of the 2016 year with
payments commencing in 2017.
• Fractional tax losses which are available for offset after utilisation of unrestricted tax losses
effectively reduce the corporate tax rate for the Group from 30 percent to 27 percent.
Write down of low grade gold ore
• As in December 2013, write downs for low grade gold ore will be part of underlying profit.
• This accounting entry has no impact on the cash flow, NPV or reserves of Prominent Hill.
• OZ Minerals will provide the written down amount separately to allow analysis of the result.
Stock movement of ore
• Ore mined from Malu Open Pit, Ankata Underground and Malu Underground is expected to
be 10mtpa+ in 2015 – 2018. The mill has historically treated 9-10mtpa – this will result in an
increase in ore inventories.
MODELLING TOPICS
24. OZ MINERALS • PAGE 24
• Strong site performance in H1.
• Increases in concentrate stocks due to shipment timing and will likely reverse in H2.
• Cash expected to be lower at June 30 and increase in H2, to be neutral for the year
(excluding dividend payments).
ACCELERATED PRODUCTION -> HIGHER WORKING CAPITAL
LOWER CASH AT 30/6; FULL YEAR CASH GUIDANCE REMAINS
• Better open pit performance with improved
efficiencies and lower unit costs results in
higher cash spend in H1.
• Good start to year leading to increased
copper ore in stockpiles at end of H1.
• Increased concentrate stocks currently
expected at end H1. Sales biased to H2.
• Receivables currently expected to
increase in H1 due to timing of sales
revenue.
• Payables at normal levels.
H1
Compared to expectations
OPEN PIT MOVEMENT
ORE STOCKS
CONCENTRATE STOCKS
RECEIVABLES
PAYABLES
26. OZ MINERALS • PAGE 26
PROMINENT HILL
REGIONAL GEOLOGICAL SETTING
Total Magnetic Intensity image
showing mine locations and regional
geological features
27. OZ MINERALS • PAGE 27
0 500mmetres
N
PROMINENT HILL
LOCAL GEOLOGY – SHOWING MALU OPEN PIT AND ANKATA UNDERGROUND
Ankata Deposit
(at depth)
Sandstone/Conglomerate Basalt/Andesite (Gawler Range Volcanics)
Calc-silicate Meta-sandstone
Felsic Volcanic
Argillite
Dolomite
Granitoid
Skarn
Cu ore
Au Sandstone
Malu Pit outline
V V V V V V V V V V V V V V V V
V V V V V V V V V V V V V V V
V V V V V V V V V V V V
V V V V V
V V V V V V V V V V V V V V V
V V V V V V V V V V V V V V
V V V V V V V V V V V V V
V V V V V V V
V V V V V V V V V V V V V V V
V V V V V
V V V V V V V V V V V V V V V
V V V V V V V V V V V V V V
V V V V V V V V V V V V V
V V V V V V V
V V V V V V V
V V V V V V
V V V V V V
V V V V V
V V V V V
V V V V V V V V
V V V V V V V
V V V V V V V
V V V V V V
V V V V V V
V V V V V
V V V V
V V V V
V V V
V V V
V V
V
V V V V V
V V V V V
V V V V
− − − − − − − − − − − − − − − −
− − − − − − − − − − − − − − − −
− − − − − − − − − − − − − − − −
− − − − − − − − − − − − − −
− − − − − − − − − − − − − −
− − − − − − − − − − − − −
− − − − − − − − − − − − −
− − − − − − − − − − −
− − − − − − − − −
28. OZ MINERALS • PAGE 28
PROMINENT HILL
MALU OPEN PIT GEOLOGY
Meta-sediments
Skarn
HW Volcanics
Chlorite Breccia
Dolomite
HW Sediments
Haematite Breccia
Haematite-Qtz Breccia
FW Sediments
FW Volcanics
Lithology Domains
(north-south)
N
Basement Contact = ~10100RL
Plan view of the Malu Open pit showing geology at the basement contact at – 10100RL
29. OZ MINERALS • PAGE 29
ANKATA KEY LITHOLOGIES
DACITE
HEMATITE BRECCIADACITE CARBONACEOUS ROCK
CARBONACEOUS ROCKHEMATITE BRECCIA
30. OZ MINERALS • PAGE 30
PROMINENT HILL RESOURCES & RESERVES
AS AT 30 JUNE 2013
Ankata*
Cu Resource2: 9Mt @ 2.4% Cu, 0.4g/t Au
Reserve: 7.5Mt @ 2.0% Cu, 0.4g/t Au
Kalaya*
Cu Resource2: 35Mt @ 1.3% Cu, 0.5g/t Au
Au Resource3: 6Mt @ 0.0% Cu, 2.6g/t Au
Malu Open Pit*
Cu Resource1: 43Mt @ 1.2% Cu, 0.5g/t Au
Au Resource3: 14Mt @ 0.1%Cu, 1.0g/t Au
Reserve: 59Mt @ 0.8% Cu, 0.6g/t Au
Malu Underground*
Cu Resource2: 67Mt @ 1.2% Cu, 0.6g/t Au
Au Resource3: 4Mt @ 0.4% Cu, 2.0g/t Au
1 0.3% Cu cut-off; 2 0.9% CuEq cut-off ; 3 0.5g/t Au cut-off Below 0.3% Cu.
* Resource figures are based on Measured, Indicated and Inferred resource classification and Reserve figures are based on Proven and Probable classified material.
Full summary of information relating to Prominent Hill Mineral Resources and Reserves is set out in the ‘Prominent Hill Mineral Resources and Ore Reserves Statement as at
30 June 2013’ created on 11 December 2013 and is available at www.ozminerals.com/operations/resources--reserves.html . Refer to disclaimer on page 4.
Surface Stocks*
Cu Stocks: 1Mt @ 0.7% Cu, 0.3g/t Au
Au Resource: 6Mt @ 0.1% Cu, 0.8g/t Au
31. OZ MINERALS • PAGE 31
Dolomite & Volcanics
MALU OPEN PIT MINERALISATION
Oblique View (looking down and north-east) of the main Cu domains in the Malu Open Pit
Mine. Pit shell represents the ultimate pit design as at the end of open pit mine life.
* Full summary of information relating to Prominent Hill
Mineral Resources is set out in the ‘Prominent Hill
Mineral Resources and Ore Reserves Statement as at 30
June 2013’ created on 11 December 2013 and is
available at www.ozminerals.com/operations/resources--
reserves.html . Refer to disclaimer on p 4.
Malu OP Resources:
Copper-Gold
43Mt @ 1.2% Cu, 0.5g/t Au*
Gold-Only
14.5Mt @ 1.0g/t Au*
N
Ultimate Pit Shell Design
Prominent Hill Shear Zone
Hematite-Qtz Breccia
32. OZ MINERALS • PAGE 32
MALU UNDERGROUND MINERALISATION
Oblique View (looking down and south-east) of the main copper domains in the Malu
Underground Mine below the ultimate open pit design.
Inset – showing plan view. * Full summary of information relating to Prominent Hill Mineral Resources is set out in
the ‘Prominent Hill Mineral Resources and Ore Reserves Statement as at 30 June 2013’
created on 11 December 2013 and is available at
www.ozminerals.com/operations/resources--reserves.html . Refer to disclaimer on p 4.
N
Malu UG Resources:
Copper-Gold
67Mt @ 1.5% CuEq,
1.2% Cu, 0.6g/t Au*
Gold-Only
4Mt @ 2.0g/t Au*
2014 Resource delineation
and grade control delineation
drilling program.
Ultimate Pit Shell Design
Dolomite & Volcanics
(Chalcocite mineralisation)
Prominent Hill Shear Zone
(Chalcocite and Bornite mineralisation)
33. OZ MINERALS • PAGE 33
ANKATA MINERALISATION
Oblique View (looking down and south-east) of the main Cu
domains in the Ankata Mine. Inset – showing view looking back
north west.
Pons,
Callosum
(Red)
Hematite Breccia hosted
Chalcocite and Bornite
mineralisation.
Peabrain
(Blue)
Hematite Breccia and
Dacite hosted Chalcocite
and Bornite
mineralisation.
Globus
(Yellow)
Massive Graphite altered
carbonaceous rock
hosted Chalcocite and
Bornite mineralisation.
Callosum 2
(Light
Brown)
Hematite Breccia hosted
Chalcocite and Bornite
mineralisation.
* Full summary of information relating to Prominent Hill Mineral Resources is set out
in the ‘Prominent Hill Mineral Resources and Ore Reserves Statement as at 30 June
2013’ created on 11 December 2013 and is available at
www.ozminerals.com/operations/resources--reserves.html . Refer to disclaimer on p 4.
Ankata Resource:
9Mt @ 2.4% Cu, 0.4g/t Au*
N 80m
34. OZ MINERALS • PAGE 34
ANKATA UNDERGROUND RESOURCE DRILLING
PEABRAIN AREA – POTENTIAL FUTURE INCREMENTAL ORE ADDITION
* For full details of the 2012 Prominent Hill Mineral Resources and Ore Reserves Statement go to http://www.ozminerals.com/operations/resources--reserves.html
Only a 6.8% reduction in
resource ore tonnage since
2008.
Net 92kt growth in
contained Cu Metal since
2008.
Addition
of Ankata,
Kalaya and
Malu UG
Resources
Addition
of Ankata,
Kalaya and
Malu UG
Resources
Peabrain outline
2013 Resource
Current Peabrain resource
outline
9845 Level
Cu %
Current Peabrain
InterpretationPeabrain 2013
Resource Outline
Current Pons
Resource
Outline
SECTION 11637.5mN Looking North
Refer to Reserves and Resources Disclaimer p4.
Cross section through the Peabrain area at Ankata showing recent drilling locations.
35. OZ MINERALS • PAGE 35
Current Peabrain
Interpretation
Peabrain 2013 Resource
9845 Drill Platform
ANKATA UNDERGROUND RESOURCE DRILLING
PEABRAIN AREA – ISOMETRIC VIEW LOOKING NE
Refer to p4 Reserves and Resources Disclaimer.
Model of the Peabrain area at Ankata showing resource interpretation.
37. OZ MINERALS • PAGE 37
PROMINENT HILL
MALU OPEN PIT MINE – H1 2014
38. OZ MINERALS • PAGE 38
Liebherr 996 Excavator
Manufacturer: Liebherr
Machine Weight: 659 t
Engine: 16 Cyl water cooled V-engine (2)
Engine Output: 3000HP (2240kW)
Fuel Capacity: 13,000 litres
Bucket Capacity (Vol): 29 – 33m3
Bucket Capacity (Mass): ~56t
Target Production: ~3200 t/hr (material
CAT 793 Mining Truck
Manufacturer: Caterpillar
Machine Weight (Gross): ~384 tonnes
Engine: 16 Cylinder four stroke diesel
engine
Engine Output: 2300HP (1750kW)
Tray Capacity: ~ 218+ t
Current Fleet
• 4 x Liebherr R996 Excavators
• 1 x Liebherr R9350 Excavator
• 46 x CAT 793 (220t) Trucks
• 2 x CAT 994 Loader for ROM
• 3 x CAT 785 Trucks for ROM
• 7 x D10 Dozers
• 1 x Wheel Dozer
• 4 x Graders
• 3 x CAT 777 Water carts
• 3 x Cubex drills
• 5 x Terex Reedrill SK Rigs
• 2 x RC Grade Control Rigs
Forecast
De-Mobilisation
- Mid 2014
• 1 x Liebherr 996
• 1x CAT 793 Unit
• 1 x Wheel Dozer
PROMINENT HILL
OPEN PIT MINING FLEET – H1 2014
Source: Liebherr 996.pdf, Caterpillar 793 Technical Specificatons.pdf
39. OZ MINERALS • PAGE 39
PROMINENT HILL
32
563
39
76
7
OZ Minerals
Thiess
Thiess Sub
AusDrill
Orica
Greater integration of planning
& production
Improved communication, issue
resolution & shared learnings
RESTRUCTURED OPEN CUT MINING TEAM
Opencut Operations
Manager
Production
Department
D&B, Projects,
Dewatering
Technical Services
Planning, Engineering,
Geotechnical
Maintenance
Department
Maintenance Planning,
Supply / Inventory
HSET
OHS, Training and
Environment
Finance / Admin / Cost
Travel, Accounts, KPIs
Numbers of staff and contractors
40. OZ MINERALS • PAGE 40
PROMINENT HILL – LONG SECTION
FACE POSITION AND LOM MINING SCHEDULE
Cross section through the Malu Open Pit showing mining stages.
41. OZ MINERALS • PAGE 41
PROMINENT HILL – FORECAST
STRIP RATIO TO REDUCE SIGNIFICANTLY POST 2014
Cross section through the Malu Open Pit showing ore and waste to be mined by year.
42. OZ MINERALS • PAGE 42
EXTENSIVE GEOTECHNICAL MONITORING COVERAGE
RADAR Coverage Prism Location Plan
• 540 prisms currently reading, using 2 x
computer controlled survey instruments
• Measurements are accurate to less than 1mm (3
dimensions of measurement, xyz)
• Majority of the south and north walls are monitored.
• Displacement measurement is accurate to less than
0.1mm (1 dimension of measurement)
• Scans every 5 minutes, 24/7.
• Approximately 540 prisms currently reading
• Measurements are accurate to less than
1mm
• Effective for both short and long term
monitoring & analysis of movement.
43. OZ MINERALS • PAGE 43
1 FLITCH
AHEAD
1 BENCH
AHEAD
1 FLITCH
AHEAD
1 BENCH AHEAD
ON
SCHEDULE
PROMINENT HILL
MALU OPEN PIT - MINING AHEAD OF SCHEDULE
Malu Open Pit showing face positions at
end Q1 2014. Mining ahead of schedule
compared to forecast positions in
December 2013.
Dig rates higher with productivity
improvements introduced including:
• Integrated mine planning
• Flitch/bench height adjustment
• Off-camber ramps
• Improved dispatch system
45. OZ MINERALS • PAGE 45
UNDERGROUND MINE - BASELINE STATISTICS
Ankata Reserves*
Mining rates 1.2Mtpa
Mining method Sub level open stoping with paste fill
Personnel OZ Minerals 65
Contractors 220
5 Senior Managers - combined 84 years mining experience
- 73 years underground, 11 years open cut
- 4 First Class Mine Managers
- Mix of OZ Minerals and Byrnecut
Contractors Byrnecut (162) – UG operations with Jetcrete
Boart Longyear (40) – diamond drilling
Raisebore Australia (10) – raise boring
Jetcrete (8) – concrete supply
*The informationset out in this table is a summary of informationrelating to Prominent Hill Mineral
Resources set out in the ‘ProminentHill Mineral Resources and Ore Reserves Statement as at 30 June
2013’ created on 11 December 2013 and is availableat www.ozminerals.com/operations/resources--
reserves.html. Refer to page 4 for Reserves and Resources Disclaimer.
Ankata Ore Reserves - June 2013*
46. OZ MINERALS • PAGE 46
ANKATA UNDERGROUND MINE - GROWTH
UPPER
EVE
LOWER
EVE
AUDREY
GLADYSKATHLEEN
• Ankata mineralisation discovered 2007.
• Definition and Feasibility Study 2009-10.
• Project approved August 2010.
• Decline started November 2010.
• Decline accessed Ankata orebody.
• Underground orebody definition and
grade control drilling.
• Achieved first stope ore production.
• Ramped up to full production rate.
• Added 2 years’ mine life.
• Continued orebody definition and
grade control drilling.
• Achieved 1.2mt production.
• Mining depletion replaced in Ankata
Ore Reserve.
47. OZ MINERALS • PAGE 47
UNDERGROUND ORGANISATIONAL CHART
49. OZ MINERALS • PAGE 49
PROMINENT HILL - UNDERGROUND INFRASTRUCTURE
Infrastructure leveraged from existing site.
• Roads and hardstands
• Change-house and office, plus upgrade
• Communications to underground
• High voltage power supply
• Raw water supply to underground
• Underground crib room
• Surface workshop
• Paste-fill plant
• Boreholes to underground
• Underground pump-station
• Surface explosives magazine
• Underground explosives magazine
• Heavy vehicle washpad
• Orebody definition -
diamond drilling from underground.
50. OZ MINERALS • PAGE 50
ANKATA MINE VENTILATION
Two ventilation shafts sunk from surface for
Ankata Mine :
• VR4A intake air shaft
• VR2A exhaust air shaft
• 286m deep
• 5m diameter
• Shaft sink top half then raisebored
bottom half
• Installed two primary vent fans that can
move 440 m3/s of air.
Other rises raisebored from underground:
• 3.5m & 5m diameter for ventilation
• 1.5m diameter for emergency escape
ladderways.
51. OZ MINERALS • PAGE 51
COMMUNICATIONS MAP
Multiple layers of communications for safety, monitoring and control
RFID Tracking
Modular
Fleet Management System
Mobile
VOIP Phones
Wireless LAN access
Cameras
Pastefill pressure/stress sensors
ISS Seismic system
Communications to and from UG
• Drill Plans
• WPIs
• Servicing checklists & records
• Inspections
Fixed plant monitoring and control
• Primary Fans
• Pump-stations
• Vent Fans
• Vent controls
• Stench Gas Release
• Emergency Response
Fire Suppression alarms
Dust, gas, airflow monitoring
Pastefill monitoring & valve controls
Orica CEBS system
UG Access to CITECT
Digital VHF
Leaky Feeder Radio
PED System
Proximity Detection
OPTICAL FIBRE
BACKBONE
55. OZ MINERALS • PAGE 55
ANKATA 2014 MINE PLAN
Proposed Ankata Development and Production Q4 2013 and 2014.
Callosum orebody
Pons Orebody
Globus Orebody
Peabrain Orebody
56. OZ MINERALS • PAGE 56
MALU UNDERGROUND
COMMISSIONING PLANNED TO COMMENCE IN 2014*
• Capital expenditure of $71m in 2014 as part of
total construction capital $201m**
• First production stopes in Q4 2014
• 4,000t of copper production in 2014*
*Refer to p3 Malu Underground Disclaimer.
**including expenditure in 2013 but not including potential sales of concentrate
made from pre-production ore.
Malu Underground Mine concept showing 2014 planned development, stopes and drilling*
57. OZ MINERALS • PAGE 57
MALU UNDERGROUND
PLANNED PRIMARY VENTILATION SYSTEM
Malu Underground Primary Fans
• 2 x Underground Mounted Exhaust
Fans.
• Zitron 3.4m dia 1100 kW Axial Fans at
6o pitch.
• Approximate through-flow of 540
m3/s.
• To be installed in the second quarter
of 2014.
58. OZ MINERALS • PAGE 58
MALU UNDERGROUND
2014 SCOPE & KEY DELIVERABLES
• Continued development of the Hanging-Wall Decline.
• Develop early levels for stoping in 2014 and commence
development for 2015.
• Continue orebody delineation and grade control drilling.
• Upgrade ventilation with primary fans and ventilation shafts.
• Upgrade power supply, mine services, geotechnical
monitoring and safety infrastructure.
• Construct a preliminary cemented hydraulic fill plant and
install pastefill reticulation.
• Produce approximately 250kt of ore for ~4,000t of copper
metal.*
*Refer to p3 for Malu Underground Disclaimer.
61. OZ MINERALS • PAGE 61
Milling Circuit
• Design rate = 8Mtpa
• Current rate = 9.5Mtpa
• Size reduction to 80% passing 135µm.
Key statistics
• SAG Mill – 10.4m (34’) x 4.7m - 12MW installed
• Ball Mill – 7.3m (24’) x 10.4m -12MW installed
• IsaMill – M10000 - 3MW installed.
Key operating costs
• Power
• Grinding media and liners.
OVERVIEW OF PROCESSING OPERATIONS
Flotation Circuit
• Design Cu Recovery = 88% Chalcocite-bornite & 80%
Bornite-chalcopyrite
• Current Cu Recovery = 88% YTD.
Key Statistics
• 6 x 150m3 Rougher Cells
• 14 x 50 & 20m3 Cleaner Cells
• Jameson Cell B 5400 - 18 Downcomers
• Ethyl Xanthate collector, thionocarbamate.
Key Operating Costs
• Reagents
• IsaMill ceramic media.
62. OZ MINERALS • PAGE 62
PERFORMANCE TO DATE
MILL – FEED GRADES
• Higher copper feed grade targeted for H2 2014 subject to ongoing strong open pit
performance and improvement in Ankata ore grades, with an initial contribution from the
Malu Underground.
63. OZ MINERALS • PAGE 63
PERFORMANCE TO DATE
MILL – THROUGHPUT
• Throughput targeted to increase in H2 2014 subject to ongoing strong open pit performance.
64. OZ MINERALS • PAGE 64
PERFORMANCE TO DATE
MILL – AVAILABILITY
• High mill availability with improvements still on-going
65. OZ MINERALS • PAGE 65
PERFORMANCE TO DATE
FLOTATION - RECOVERY
66. OZ MINERALS • PAGE 66
PERFORMANCE TO DATE
FLOTATION - GRADES
• High grade copper concentrate
67. OZ MINERALS • PAGE 67
IMPROVEMENTS
ADDITIONAL FLOTATION CLEANER STAGE TO BE ADDED
– CONCENTRATE QUALITY
EXISTING DESIGN
- 70 percent of concentrate produced by
existing Jameson Cell. Low impurity
entrainment.
- 30 percent produced by conventional
flotation cells.
NEW DESIGN TRIAL
- Add second Jameson Cell to end of existing
conventional cleaning circuit.
- Improved wash water increases rejection of
entrained particles.
- Increases flexibility of circuit to deal with
impurities.
PILOT PLANT TRIAL RESULTS
- Reduced overall Fluorine in concentrate by
15 percent.
- Reduced overall Uranium in concentrate by
10 percent to 20 percent.
68. OZ MINERALS • PAGE 68
IMPROVEMENTS
PROJECT PIPELINE
PROJECTS
• Addition of mill noise control measurement into integrated mill control system.
• Mill liner redesign to increase life from 13 week availability to >17 weeks and hence
one less mill shut down per year.
• Increase flexibility and re-arranging of circuit to increase regrinding capacity and
classification.
• Greater substitution of process water versus raw water.
• Further grinding media, reagent and ceramic media substitutions to reduce unit
costs of consumables.
• Additional flotation cleaner stage to reduce entrained impurities.
69. OZ MINERALS • PAGE 69
CASE STUDY
IMPLEMENTED BUSINESS IMPROVEMENT PROJECTS
70. OZ MINERALS • PAGE 70
SUMMARY
PERFORMANCE
• Consistent and robust performance of the plant under changing feed conditions.
• Over design performance for throughput, recoveries and grades.
• Cost profile reductions for variable costs.
PEOPLE
• Strong operational and technical team with average onsite retention rate of > 3.5 years.
• Offsite technical services to draw expert advice and technical support.
PROJECTS
• Continued focus on improvement projects and business improvement culture embedded in
the Processing department since 2010.
• Strong cost and performance focus.
75. OZ MINERALS • PAGE 75
SUMMARY
OPEN PIT
• Issues in 2013 now overcome.
• Restructure highly successful.
• Demonstrated productivity improvements.
• Strong performance in first quarter continues into second quarter.
UNDERGROUND
• Ankata Underground continues to perform well.
• Potential for incremental additions at ‘Peabrain’.
• Malu Underground on track for first production late 2014.
PROCESSING
• Consistent strong performer.
• Continuing improvements being implemented with expanded flotation circuit.
• Grades and throughput planned to increase in H2.
COSTS
• Cash to dip in H1 and recover in H2 due to strong material movement in H1 and shipments
weighted to H2.
• Costs being controlled and remain a key focus.
• Cash generation to improve as fleet is demobilised.
76. OZ MINERALS • NOVEMBER 2009 • PAGE 76
JORC 2012 REPORTING INFORMATION
TABLE 1: SECTIONS 1 & 2
78. OZ MINERALS • PAGE 78
ANKATA UNDERGROUND RESOURCE DRILLING
TABLE 1 – SECTION 1: SAMPLING TECHNIQUES AND DATA
- JORC 2012
9845 Level
CRITERIA COMMENTARY
Sampling techniques The Prominent Hill resources are sampled using underground and surface diamond drill holes and surface reverse circulation (RC) drill holes.
Surface RC holes were sampled at 1m intervals after a 1/8th field split. Field duplicates were collected at a rate of one every 20-30 samples. Each RC metre sampled
weighed ~4-6kg. All RC samples were sent to an offsite laboratory for crushing and pulverising to produce a 40 gram sample charge for analysis by fire assay and
inductively coupled plasma optical emission spectrometry (ICPOES).
Surface diamond drill holes were sampled on nominal 1m intervals; however sample lengths between 0.4 and 1.4m were permitted. Surface diamond drill holes were
sampled in full within the Prominent Hill mineralisation host lithologies and only periodically sampled within established waste domains.
All underground diamond drill holes were sampled on nominal 1m intervals. Sample lengths between 0.3 and 1.3m were permitted. There was no sampling across
obvious geological boundaries. All underground diamond drill holes were sampled along their entire length. Underground drill holes classed as “resource delineation”
were half cored before being sampled. Underground drill holes classed as “grade control” were full core sampled unless they met one of the following requirements, in
which case they were half core sampled:
The drill hole was the upper or lower most hole on any section of fan holes (limits of the domain being drilled).
The adjacent hole on section was full core sampled (result is every alternate hole is half core sampled).
All diamond core samples were completely crushed and pulverised to produce sample charges for analysis by fire assay and ICP methods.
A program of regular field duplicate sample submission at a rate of two samples per 40 to 60 samples has been undertaken historically and is still current sampling
practice for diamond drilling.
Drilling techniques The majority of drilling was by diamond coring, with only a small number of RC holes (8%).
RC drill holes utilised a face sampling bit and were of 5¾ or 5½ inches in diameter.
Surface Diamond drill holes were a combination of standard tube NQ2 and HQ sizes. Down hole orientations were completed through use of the “Ezy-Mark” tool pre
February 2005 and the “ACE” electronic core orientation tool thereafter.
Underground diamond drill hole were drilled with a combination of NQ2, LTK 60 and BQTK core sizes. Down hole orientations were completed using a “Reflex ACT”
digital orientation tool.
Drill sample recovery For RC drilling total weights (inclusive of moisture) were recorded for reverse circulation samples. Recoveries were calculated as a percentage of recorded weight versus
a theoretical 100% recovery weight. Recovery of RC drilling was calculated to be 92%. Measures taken to maximise sample recovery were centered around hole
conditioning and maintenance of steady drill perpetration rates. There does appear to exist a weak bias in low recovery RC samples with higher grade copper results.
However, the low number of high-grade reverse circulation samples affected by this apparent bias suggests no material effect on the global resource estimate by their
inclusion.
Diamond drilling core recovery was recorded for all core processed. This was recorded as a percentage of drilled run length. Core recovery was 93% recovered for the
Malu Resource area, 98% percent for the Ankata Resource and 94% for the Kalaya Resource (data available for only 48% of Kalaya drilling).
79. OZ MINERALS • PAGE 79
TABLE 1 – SECTION 1: SAMPLING TECHNIQUES AND DATA
- JORC 2012 - CONTINUED
9845 Level
Logging 92% of all drill holes have been geologically logged to a level of detail to support the definition geological domains appropriate to support mineral resource estimation
and classification. A majority of the unlogged metres are either located distal to the Prominent Hill resources or were drilled for geotechnical/metallurgical sampling
purposes with data not captured within the resource database.
Prominent Hill drilling prior to 2011 shows a total of 400,260m drilled and 367,762m logged (92%). Since 2011 the following drilling has been completed and logged:
Malu: 26,534m drilled, 25,846m logged (97%).
Kalaya: 2,103m drilled, 2,103m logged (100%).
Ankata: 102,808m drilled, 100,709m logged (98%)
Basic geotechnical logging has been completed on the drilled holes by Geologists and Geology Technicians. This has primarily been RQD/Rock Mass recordings and
orientated structural measurements.
The Geotechnical Engineers also undertake geotechnical logging of selected diamond holes in areas of direct relevance to underground infrastructure and operations.
A regular program of core photography has been undertaken on diamond drilling since 2004. Approximately 90% of all core holes have been photographed.
Sub-sampling
techniques and
sample preparation
Surface RC holes (2003-2006) were sampled at 1m intervals after a 1/8th field riffle split.
238 samples (0.01% of RC samples) were noted as being wet, such samples were dealt with via a specific sampling protocol to meet quality assurance requirements.
RC sample preparation at the laboratory was completed as follows:
•Weigh
•Drying @ 110°C
•Oven dry weigh
•Quartz wash
•Pulverise entire sample (multi-pass re-homogenise as required) to 90% at -75 micron
•Collect pulp, bag remaining reject.
Field duplicates were collected as a second 1/8th field split at the drill rig and were initially selected at a rate of 4%, spaced at 20-30 samples.
80. OZ MINERALS • PAGE 80
TABLE 1 – SECTION 1: SAMPLING TECHNIQUES AND DATA
- JORC 2012 - CONTINUED
9845 Level
Sub-sampling
techniques and
sample preparation
– continued
Surface diamond drill holes were sampled on nominal 1m intervals; however sample lengths between 0.4 and 1.4m were permitted. Core was sawn longitudinally and
half core samples submitted for analysis.
Surface core sample preparation at the laboratory was completed as follows:
•Weigh
•Drying @ 110°C
•Oven dry weigh
•Crush to -2mm
•Riffle split into two samples
•Quartz wash
•Pulverise both split samples separately (multi-pass re-homogenise as required) to 90% at -75 micron
•Collect two pulps from each sample, bag remaining rejects separately.
For core samples a sequence of matrix matched certified reference materials (Prominent Hill sourced), commercial certified reference materials and blanks were inserted
into the sample run at a frequency of ~1 in 25 samples:
•Coarse Blank
•Certified reference material
•Pulp Blank
All underground diamond drill holes were sampled on nominal 1m intervals. Sample lengths between 0.3 and 1.3m were permitted. Diamond core was sawn
longitudinally when half core samples were required for analytical analysis as specified under “Sampling Techniques”.
Underground core sample preparation at the laboratory was completed as follows:
Weigh
Drying @ 110°C
Oven dry weigh
Crush to -2mm
Riffle split into two samples (10mm aperture)
Quartz wash
Pulverise both split samples separately (multi-pass re-homogenise as required) to 90% at -75 micron
Collect two 250g pulps from each sample, bag remaining rejects separately.
For core samples a sequence of matrix matched certified reference materials (Prominent Hill sourced), commercial certified reference materials and blanks were inserted
into the sample run at a frequency of ~1 in 25 samples:
Coarse Blank
Certified reference materials
Pulp Blank
Sample sizes are considered to be appropriate for the style/texture of copper-gold mineralisation at Prominent Hill.
81. OZ MINERALS • PAGE 81
TABLE 1 – SECTION 1: SAMPLING TECHNIQUES AND DATA
- JORC 2012 - CONTINUED
9845 Level
Quality of assay data
and laboratory tests
All analytical methods used are considered to be total methods, through either four acid digests or sample fusion.
RC samples were assayed using Inductively Coupled Plasma Optical Emission Spectrometry, Modified Aqua Regia Digest and 40g Fire assay. These samples were
assayed for a suite of 31 elements; with the samples that may contain copper or gold and/or are close to a known mineralised zone also analysed for fluorine.
For RC holes QAQC controls involved matrix matched certified reference materials being inserted at a rate of 4%, i.e. spaced at 20-30 samples apart. Coarse-blanks /
pulp-blanks were inserted at a rate of 4% and preceded every matrix matched certified reference materials.
Surface core samples (2001-2010) were assayed using Aqua Regia Digest, 40g Fire assay, Alkali Fusion, Mixed Acid Digest, Screen Fire Assay and Glass Fusion. These
samples were assayed for a suite of 31 elements; with the samples that may contain copper or gold and/or are close to a known mineralised zone also analysed for
fluorine.
Field duplicates were inserted ~2 in every 60 samples. A split occurred at Amdel (offsite laboratory) after sample crush with then two pulps analysed from each
pulverised split giving rise to four results from the one sample interval.
Laboratory repeats/duplicates during this period were completed (on an approximate frequency depending on the analytical techniques) as shown below:
Fire Assays: rate of 4%
IC4: rate of 7%
MET1: rate of 4%
Samples from 2010-2013 were assayed using Aqua Regia Digest, 40g Fire assay, Inductively Coupled Plasma Optical Emission Spectrometry/ Inductively Coupled
Plasma Mass Spectrometry, Modified Aqua Regia and Alkali Fusion. These samples were assayed for a suite of 55 elements.
Field duplicates were inserted ~2 in every 40 to 50 samples. A split occurred at Amdel (offsite lab) after sample crush with then two pulps analysed from each
pulverised split giving rise to four results from the one sample interval.
Laboratory repeats/duplicates during this period were completed (on an approximate frequency depending on the analytical techniques) as shown below:
Fire Assays: 1/25 Samples
IC4: 1/20 Samples
MET1: 1/14 Samples
QAQC samples were monitored on a batch-by-batch basis and samples in each failed batch were re-assayed.
The assay data pass/fail criteria up to the end of December 2012 was as follows:
A batch was said to ‘fail’ if two standard samples were outside 2 standard deviations from the expected standard grade or if one standard was greater than 3
standard deviations from the expected standard grade. If a batch failed, the laboratory was contacted for batch re-assay.
The pass/fail criterion for coarse blanks followed that any blank returning a result, greater than a certain multiple of the detection limit will fail (dependent upon the
element). If a coarse blank returned a value outside of acceptable tolerances, the laboratory is contacted for batch re-assay.
The assay data pass/fail criteria from January 2013 to the end of June 2013 was as follows:
• A batch was said to ‘fail’ if a standard sat outside 3 standard deviations from the expected grade. If a batch failed, the laboratory was contacted for batch re-assay.
82. OZ MINERALS • PAGE 82
TABLE 1 – SECTION 1: SAMPLING TECHNIQUES AND DATA
- JORC 2012 - CONTINUED
9845 Level
Verification of
sampling and
assaying
High standard QAQC procedures are in place and audited frequently at Prominent Hill, therefore repeatability issues from a QAQC point of view are not considered to be
significant.
Significant and/or unexpected intersections are reviewed by alternate company personnel through review of geological logging data, core photography, physical
examination of remaining core samples (in instances of half core sampling) and review of digital geological interpretations.
In 2006 a number of diamond and RC hole pairs within the Prominent Hill dataset were deemed close enough to be considered twinned holes pairs.
Since 2006 there has been no systematic review of twinned pairs of drill holes, though a number of holes are known to be spatially coincident and as such lend themselves
to this evaluation. This is an area that will be reviewed for the June 2014 Resource update.
As part of data validation and verification for 2013 resource, review of analytical data for 130 drill holes was completed (10% of database). From these holes, 96% of the
original assay source data was able to be located and verified against the contents of the database. No adjustment to analytical data was required.
Data importation into the resource database is documented through standard operating procedures and is guided by on import validations to prevent incorrect data
capture/importation.
Geological, structural and density determination data is directly captured in the resource database through a validation controlled interface using Toughbook computers.
Primary data is stored in its source electronic form. Assay data is retained in both the original certificate (.pdf) form, where available, and the text files received from the
laboratory. Data entry, validation and storage are discussed in the section on database integrity below.
Location of data
points
A topographic survey was conducted in January 2005 by Engineering Surveys using differential GPS which provided +/- 100mm accuracy on surface elevation.
The correction from magnetic to mine plan grid is 6.3 degrees.
All surface diamond and reverse circulation holes drilled prior to mining operations were recorded using MGA94_53 grid. This data was subsequently converted to
truncated easting and northing grid coordinates to minimise the effects of inherent precision errors in mining software packages. An amount of 550,000 was subtracted
from Eastings and 6,710,000 from Northings of data coordinates. In addition, a value of 10,000 was added to the RL coordinates to eliminate negative elevations. This
truncated grid differs from the mine plan grid and as such a scaled transformation of data is required for use in the mining operation.
Surface diamond and reverse circulation drill holes exhibit collar survey methods of DGSP1 (Differential GPS), TAPE (Tape and Compass from nearby DGSP1 station), SURV
(survey department picked-up collar) and UNK (pick-up coordinates and appropriate ranking entered into GBIS but ‘unknown’ entered as method) type.
In 2006 a differential GPS survey validation exercise was completed by Engineering Survey. No gross errors were found in collar locations at that time.
The Mine Plan Grid has a common easting and northing origin at 56066.657E 12923.481N equivalent to MGA94_53 at 556066.657E 6712923.481N. Elevations are the
same as the truncated MGA94_53 grid.
All recent (post-2006) surface survey coordinates and underground survey coordinates were recorded in Mine Plan Grid.
Underground survey co-ordinates were calculated from traversed survey down the Ankata/Malu declines from the surface.
Historic surface down hole survey methods included use of a Reflex Tool, Ranger, Eastman Single Shot, Down Hole North Seeking Gyro and Down Hole Gyro.
All underground drill holes were surveyed using a Reflex digital down hole camera unit. Camera units were calibrated weekly using an on-site survey test beds. Down
hole surveys were recorded and entered into the database as magnetic bearing and converted within the database system to Mine Plan grid azimuths.
All underground drill holes have a 15 metre survey measurement taken that must be within site tolerances of 0.5 (half) degree on dip measurements and 1 (one) degree on
azimuth to plan. Subsequent down hole survey measurements are taken at 30 metres and 30 metre intervals progressively down the hole path.
83. OZ MINERALS • PAGE 83
TABLE 1 – SECTION 1: SAMPLING TECHNIQUES AND DATA
- JORC 2012 - CONTINUED
9845 Level
Data spacing and
distribution
The deposit was drilled from surface predominantly on nominal north-south 50m sections, however areas of greater than 100 x 100 metre drill spacing do exist. Drilling
into the Ankata deposit was also conducted on several west-east sections to better inform the structural complexity in that area.
Underground diamond drill holes were generally designed to intersect the Malu resource close to perpendicular. Areas drilled within the Malu Underground Resource
have been closed up to an approximate 50 x 50m resource spacing with additional infill grade control drilling down to an approximate 25 x 25 metre spacing. Resource
delineation drilling is ongoing in this resource.
Underground diamond drill holes within Ankata Resource have been designed to infill the resource area to 25 x 30m spacing. Additional infill grade control drilling has
closed drill spacing down to 12.5 x 15m spacing.
Underground diamond drill holes within the Kalaya Resource have been designed to reduce drill spacing down to between a 100 x 100m to 200 x 200m resource spacing.
The data spacing and distribution in the resource areas has been sufficient to support geological and grade continuities for the purposes of generating mineral resources
and their classification.
Drill hole assay data was broken down into geological and mineralised domains as defined by wireframe boundaries, and then sample compositing was applied. A
sample composite length of 2m was used for Malu and a composite length of 1m was used for Ankata and Kalaya.
Orientation of data
in relation to
geological structure
In the Malu and Kalaya Resource areas, the surface diamond and RC drilling was conducted generally perpendicular to the strike of mineralisation. Mineralisation dip is
sufficiently steep that drilling from either side relative to the strike will have introduced minimal bias.
Surface diamond drilling in the Ankata resource area created the potential for sampling bias due to the complex morphology of the mineralisation. Subsequent drilling
from underground has significantly increased the size of the sample data set for Ankata to the extent that any bias from the original surface drilling in the Ankata area is
no longer material.
Underground diamond drilling was completed in fans from the available drilling platforms adjacent to the orebody. Drilling was designed to intersect the orebody close
to perpendicular to the strike of the mineralisation as possible to prevent the generation of sampling bias.
Sample security Access to the Prominent Hill site is secured with a manned security gatehouse. No external access to the Prominent Hill site is possible without direct authorisation from
the site Management.
Diamond core is drilled by the drilling contractor and brought to the Prominent Hill core processing facilities by a diamond driller or collected from the drill rig by a
geology technician. Core is measured, geotechnically and geologically logged and cut and sampled by employees of OZ Minerals at the same facility.
Samples were dispatched from Prominent Hill site to Bureau Veritas Adelaide (also formally known as Amdel) through a contracted transport and logistics operator.
Sample documentation is delivered digitally to Bureau Veritas where samples are physically verified against the documentation to confirm sample receipt.
Audits or reviews An informal review of underground diamond drill hole sampling and current QAQC procedures was completed in 2013 by Xstract Mining Consultants Pty Ltd. A number
of operational and technical adjustments were identified to improve validation of collected data, interpretation of data and management of QAQC practices. These
improvements have been updated into standard operating procedures.
An external review of the 2011 Mineral Resource was conducted by AMC Consultants in November 2011. No fatal flaws were identified.
External reviews of the Prominent Hill resources have been conducted by AMC Consultants and Behre Dolbear Australia since 2006.
84. OZ MINERALS • PAGE 84
TABLE 1 –SECTION 2: REPORTING OF EXPLORATION RESULTS
- JORC 2012
9845 Level
CRITERIA COMMENTARY
Mineral tenement
and land tenure
status
The Prominent Hill deposits are located in South Australia in Mining Lease ML6228, which was granted in August 2007 and is 100% owned by OZ Minerals.
ML6228 is currently in good standing.
All agreements with stakeholders are in good standing and will endure for the life of the Ore Reserve.
Exploration done by
other parties
Minotaur Resources Limited announced the discovery of Cu-Au mineralisation at Prominent Hill in November 2001.
Oxiana joint ventured into the property in September, 2003 and funded the mineralisation drill out to Inferred Resource status.
In February 2005 Oxiana purchased 100% of the project and by June 2005 had drilled the known mineralisation between 555400mE and 556200mE on a 50m X 50m
grid to a depth of 450m below cover.
The Ankata deposit was discovered by step out drilling to the west in 2007.
Significant surface drilling from 2009 to 2011 from both hanging wall and footwall locations within the Malu active mining area, targeting along strike and down dip
extensions of the Malu and Ankata deposits subsequently identified the Kalaya mineralisation between the two deposits.
Geology The Prominent Hill iron-oxide copper gold (IOCG) deposit is located in the Mount Woods Inlier, in the north-eastern portion of the Archaean to Mesoproterozoic
Gawler Craton, South Australia. Copper-gold-silver (-U-REE) mineralisation at Prominent Hill is hosted within haematitic breccias of felsic volcanic, sandstone, shale,
and dolomite.
The Peabrain area of the Ankata deposit is located at the southern end of the deposit. Copper- gold mineralisation is hosted within haematitic breccias with associated
mineralisation hosted in dacitic volcanics.
Drill hole
Information
All drilling in the Peabrain area is undertaken on an initial 25 x30m Resource Delineation(RD) spacing, before subsequent infill Grade Control(GC) drilling at a 12.5 x
15m spacing.
All holes reported were drilled via BQTK sized core.
For hole details pertaining to this release including collar and other relevant details refer to the table on p77.
Comments relating to drill hole information relevant to the Mineral Resource estimate can be found in Section 1 – “Sampling techniques”, “Drilling techniques” and
“Drill sample recovery”.
Data aggregation
methods
All assay intersections reported for the Peabrain area are reported based on a length weighted average grade for the intersection using parameters of greater than
0.5%Cu with < 2m of internal dilution.
Au grades were determined by the defined Cu grade interval, ie they were not calculated independently.
Comments relating to data aggregation methods relevant to the Mineral Resource estimate can be found in Section 1 – “Sampling techniques”, “Drilling techniques”
and “Drill sample recovery”.
85. OZ MINERALS • PAGE 85
TABLE 1 –SECTION 2: REPORTING OF EXPLORATION RESULTS
- JORC 2012 – CONTINUED
9845 Level
Relationship between
mineralisation
widths and intercept
lengths
The geometry of the reported Peabrain mineralisation is interpreted to strike north-south and to exhibit variable dips from 45 degrees to the west to sub vertical.
All intersection lengths reported in this presentaion are down-hole lengths and not true widths.
Interpreted true widths in Peabrain vary from 5 to 50m depending on location within the Peabrain shape.
Indicative intercept angles are shown in the accompanying diagram.
Diagrams Please refer to the diagrams within this presentation.
Balanced reporting A list of all new significant drill intersections post the 2013 Resource estimate for Peabrain have been included within the accompanying presentation.
Other substantive
exploration data
No additional exploration data is considered material to this release at this stage.
Further work The current drilling program will continue to test the Peabrain area on the existing drill spacing with the program expected to continue into Q3 2014.
Further results will be reported as they become available.
