OZ Minerals (ASX:OZL) has completed an updated resource estimate in December 2016 after having completed an additional 6,600 meters of drilling. The total resource now stands at 134 million tonnes with an average grade of 1.5% copper, 0.6 g/t gold and 6.5 g/t silver. With a total copper content of almost 4.5 billion pounds, 2.6 million ounces of gold and almost 28 million ounces of silver, the updated resource estimate confirms the importance of Carrapateena. As almost 50% of the tonnage has now been included in the measured resource category (and 95% belongs to measured & indicated), OZ Minerals is now ready for the feasibility study, which is expected at the end of the current quarter.
The construction of the Djati decline has already started, and OZ Minerals remains on track to generate its first operating cash flow from Carrapateena in 2019. This decline will also enable OZ Minerals to continue to define the deposit through underground drilling, which will be cheaper than the deep holes from surface.
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