potential of big c

NCM’s Golpu Porphyry deposit in PNG could be a good guide to the potential of Big C. As an overview, the key metrics of Golpu are:

• Golpu is a Porphyry Copper gold resource off about 1 Bt @ 0.9%Cu and 0.63 g/T Au (0.2% Cu cut-off). So a slightly larger resource at similar grades to Big C.
• The top of the ore body is around 400m below the surface.
• A PFS recommends a block cave mine, with two, possibly three lifts and a 15Mtpa plant that would expand to 25 Mtpa after year 5. Average production would be 250Kt of Cu and 400Koz of AU.
• Mine life of 32years with potential extensions.
• CAPEX is 4.8bn to first production and 9.8bn over the life of the project.
• Operating costs are $22.6/t or –ve $1,900 oz. Not sure what this equates to in cost per pound of Cu but it would be low. Break even at $22t would be ore mined at 0.3% Cu.
• First production expected in 2019.

I would speculate that CAPEX and OPEX would be lower in SA due to existing infrastructure and resource availability.

While it is early days, Big C indications are that Big C could be a Tier 1 resource, especially if further resource extentions and regional discoveries are made.

The CAPEX might stretch OZL’s funding capacity.