OZ Minerals acquires 51% stake in West Musgrave copper nickel project

By Dale Benton
Share
A copper-focused international company based in South Australia has acquired a larger stake in the largest undeveloped copper nickel project in Australi...

A copper-focused international company based in South Australia has acquired a larger stake in the largest undeveloped copper nickel project in Australia.

OZ Minerals announced in a statement this week that it has completed the earn in of 51% of the West Musgrave project following a $22mn investment.

The project is a Joint Venture with Cassini Resources and together the two companies are currently conducting a Pre-Feasibility Study (PFS) of the project to focus on further drilling and improvement of the metallurgical recoveries.

OZ Minerals’ CEO, Andrew Cole, said early study results had been encouraging in a number of areas including resource extension drilling and metallurgy, with good progress made in heritage clearances and community engagement.

“Our confidence in the project’s potential has increased and supports reaching the 51 per cent earn-in level earlier than originally anticipated.

“Recent early metallurgical test work shows significant improvements over the results achieved during the Further Scoping Study with a material improvement in copper and nickel recoveries. On results to date, we have also seen an increase in copper concentrate grade while nickel concentrate grade remains in line with the Further Scoping Study.

“These encouraging, improvements together with results from our regional exploration drill program that intersected massive sulphides at Yappsu (located approximately six kilometres from the Nebo-Babel deposits which are the primary focus of the PFS), further support our view that West Musgrave has the potential to be an exciting new mineral province with near mine and district opportunities.

Related stories:

Oz Minerals to complete acquisition of Avanco Resources

Australian collaboration formed to "revolutionise" mineral separation technology

Kaz Minerals moves into Russia with $900 million acquisition of Baimskaya project

 

located in the Musgrave Province of Western Australia and including the Nebo-Babel nickel-copper and Succoth copper deposits, the West Musgrave Project will be a scaleable, low cost, long life, open pit mining operation.

The PFS for the project commenced in November 2017 and is scheduled for completion in Q2 2019. OZ Minerals can earn 70 per cent of the West Musgrave project by investing an additional $14 million towards project studies and regional exploration.

Share

Featured Articles

ABB and Codelco Partner on Chilean Mine Decarbonisation

State copper producer Codelco to collaborate with mines automation specialist ABB on digital solutions and electrification across Chilean mining operations

London Metal Exchange: Trading Hub With 450-Year History

From its origins in London's Royal Exchange to its acquisition by HK Exchanges and Clearing, the LME's history mirrors the evolution of the metals market

EY Survey Shows Capital As Top Mining Risk For 2025

Ernst & Young mining sector survey reveals the industry is experiencing capital allocation challenges against a backdrop of energy transition demands

Rio Tinto, BHP & Glencore 'Feeling the Pinch on Copper'

Supply Chain & Operations

Glencore & Schneider Partner on Copper Supply Chain

Sustainability

Elemental Holdings in Vanguard of Critical Metals Recycling

Sustainability