The reverse circulation drilling is targeting additional high-grade nickel and copper sulphide mineralisation at the Nebo and Babel deposits.
11 holes for 1,800 metres will initially test a number of targets at relatively shallow depths that could be developed early in the conceptual mine plan to positively influence mine economics.
In addition, a number of significant deeper targets have also been identified but these will be tested at a later date.
Assay results are expected to start being received by late May and positive findings are expected to improve project economics.
West Musgrave Project
OZ Minerals can earn up to a 70% interest in the project by sole funding a minimum of $36 million on development and exploration.
The project includes the advanced stage Nebo and Babel nickel sulphide deposits and highly prospective exploration ground, including but not limited to the Succoth copper deposit.
The current drilling is a part of the further scoping study (FSS) in progress which is part of OZ Minerals’ Stage 1 earn-in.
The FSS comprises a number of work programs aiming to identify opportunities for economic improvements on the 2015 scoping study completed by Cassini.
The resource extension drill program is due to start imminently and expected to take 3 weeks to complete, with assays likely to be returned by late May.
An update of the geology interpretation and resource model will follow and form the basis of updated mine plans and schedules.
Drill results will also be incorporated into a revised mineral resource estimate, which will be done as part of FSS.