OZ Minerals pulling out of Jamaica

Thursday, September 22, 2016

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AUSTRALIAN mining company, OZ Minerals, yesterday announced that it is pulling out of Jamaica after three years of exploration activities.

OZ Minerals’ operations comprise five wholly owned tenements at Bellas Gate in Clarendon, and the Rodinia in Portland.

The company said its withdrawal should be completed in late 2016 after it closes out formal legal agreements and tenement transfers with Carube Copper Corp, its local partners. Carube is expected to continue exploration on its own, OZ said.

OZ Chief Executive Officer Andrew Coles said the company had decided to quit its operations here because the mineral deposits it discovered were not satisfactory.

"After a comprehensive review of exploration results, we determined that while copper porphyry style mineralisation was identified at multiple prospects, the drill intersected grades weren’t indicative of the types of deposits we are looking for. Capital discipline is a core part of our strategy and while the Jamaican exploration programmes were completed on time and budget, we have decided not to invest further in the programme," Coles stated.

He added:"OZ Minerals is committed to building a pipeline of opportunities and rigorously progressing these. If at any time it is determined that a project does not meet target objectives, we will cease expenditure and withdraw from the arrangement. We will continue to carry out due diligence of exploration projects as well as established projects both nationally and internationally."

According to OZ, Carube could have to pay over up to $14 million in cash payments and a two per cent royalty if it undertakes commercial production.

"Over the three years, OZ Minerals has based exploration activity at its office in Bellas Gate and trained and employed a total of approximately 500 local workers, and four Jamaican geologists at various times led by an international team," OZ, a leading Australian mining firm, said.

"OZ Minerals, and especially the Bellas Gate management and geological team, would like to take this opportunity to thank Jamaica and its people for their support, hard work and friendship during the company’s time here," the company said.




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