OZ Minerals has announced that Havilah Resources Limited shareholders approved granting OZ Minerals the option to purchase the Kalkaroo copper project in the Curnamona Province, South Australia (SA).
OZ Minerals Managing Director and Chief Executive Officer Andrew Cole said the Kalkaroo project offers the chance to add one of Australia’s largest undeveloped copper-gold deposits to OZ Minerals’ organic growth pipeline, complementing existing expansions at Prominent Hill and Carrapateena, and the greenfield West Musgrave Project to be considered for final investment decision later this year.
“Since the proposed transaction was announced in May 2022, our project team has been planning work programs, engaging with suppliers, and working closely with the Havilah team to enable the study to commence immediately upon Havilah shareholder approval,” Cole stated.
OZ Minerals intends to conduct a study to decide whether to exercise the option to acquire the Kalkaroo project. The study workstream will concentrate on opportunities to add value, better understand regional exploration for provincial potential, and use the OZ Minerals Think & Act Differently (TAD) incubator to explore creative concepts.
“The aim of the study is to improve our understanding and confidence in the project, and it will include an infill drilling program to confirm the current Mineral Resources estimate prior to making a decision whether to exercise the option to acquire 100 per cent of the Kalkaroo project,” he said.
According to Cole, if the option is taken, the timetable for project development will be at the discretion of OZ Minerals, allowing progressive capitalisation of internal project development expertise built on the success of Carrapateena and potential with West Musgrave.
In a statement, OZ Minerals said the company might elect not to exercise the Kalkaroo option at any time during the 18 months of study provided 5,000 metres have been drilled, or a shortfall payment is paid to Havilah.
