OZ Minerals launches South Australian exploration JV

Image: OZ Minerals

OZ Minerals has formed a partnership with Woomera Exploration to explore for magmatic nickel and copper sulphides in the Eastern Musgrave province in South Australia.

The exploration joint venture will target magmatic nickel-copper sulphide systems similar to what has been identified at the Nebo Babel deposits in West Musgrave, another OZ JV that recently progressed to pre-feasibility.

OZ head of exploration, Richard Holmes, said the application of the vector residual magnetic intensity (VRMI) geophysical technique, in addition to previous encouraging exploration results, led to the identification of multiple drill-ready targets on Woomera’s tenements.

“Current targeting will use the VRMI technique, as it has been shown to enhance the ability to focus on prospective targets in areas with complex magnetic responses,” Holmes said.

“Previous work undertaken on Woomera Exploration’s prospects has shown prospective geology and mineralisation occurring within the tenement package.

“Modelling of the processed magnetic data suggests prospective geology may occur as shallow as 10m below surface. However, traditional geophysical processing methods do not highlight the anomalies that are usually associated with mineralisation.

“Application of the VRMI technique, which is traditionally used in iron ore and gold exploration, should enable rapid exploration of the region. If successful, it will provide another layer on which we can target prospective geology under cover.”

Holmes added that OZ believes there are several drill-ready targets. The company has commenced the development of a Native Title mining agreement for exploration as part of its first venture in the Eastern Musgraves.

Once this agreement has been negotiated, OZ will fund the exploration, culminating in around 4000m of drilling at seven targets.

After drilling is complete OZ can earn 51 per cent of the project by spending $2.5 million on exploration over 18 months. By spending an additional $5 million on exploration and drilling within the following two years it can secure a 75 per cent interest.

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