Recent Exploration of the Olympic Dam

Transcription

1 Recent Exploration of the Olympic Dam Southern Orebody DAVE THOMAS Olympic Dam Development Study SA Explorers Conference 2 December 2005

2 BHP Billiton profile (2005) The company BHP Billiton is the world s largest diversified mining company It employs more than 100, people in 20 countries Australia is the largest region with 38% of employees BHP Billiton consists of seven Customer Sector Groups: Aluminium Base Metals Carbon Steel Materials Diamonds and Speciality Products Energy Coal Petroleum Stainless Steel Materials BHP Billiton s global headquarters is in Melbourne Base Metals global HQ is in Santiago, Chile HQ is in Adelaide Page

3 BHP Billiton - The world s largest diversified resources company Petroleum Aluminium Base Metals Carbon Steel Materials Diamonds & Spec Prod Energy Coal Stainless Steel Materials Page

4 Olympic Dam is part of BHP Billiton - Base Metals Group Resolution Project, Arizona Base Metals Marketing, The Hague Marketing presence in Shanghai, Tk Tokyo and dseoul Cerro Colorado Chile Antamina, Peru Tintaya, Peru Escondida, Chile Spence Project, Chile Olympic Dam Cannington, Australia Page Base Metals Head Office Santiago Chile

5 Olympic Dam Page

6 The Mining lease Marree 170km Borefields 120 & 200km Operation 8km 10km Roxby Downs Woomera 90km Page Port Augusta 270km

7 Operation History 1975 Discovery 1982 SA Parliament Ratifies Indenture Agreement 1989 First Production (45,000 tonnes) 1992 Optimisation Optimisation Major Expansion (200,000 tonnes) 2002 Optimisation June - BHP Billiton gains majority control of WMC June - BHP Billiton gains over 90% of WMC August - BHP Billiton gains 100% of WMC Page

8 Production History Ore (Mtpa) Copper (tpa) U 3 O 8 (tpa) ,000 1, ,000 1, ,000 1, ,000 4, ,000 4, (proposed) ,000 15,000 Page

9 Olympic Dam Mining Page

10 The PFS Study

11 Objectives of Study Identify the total resource base Select a single preferred, sustainable life of mine plan Identify key HSEC risks and opportunities Identify development costs Identify implementation requirements Assess strategic t implications of the preferred development option Page

12 Project budgets and timelines Budgets $5 billion plus estimated for total project 10% of budget proposed for the PFS/FS $130m allocated to drilling programme $24m for new underground tunnel into Southern Ore body to allow for bulk sampling Timelines Pre-Feasibility Study (PFS) Commonwealth/State approvals (EIS) Feasibility Study (FS) Pre-strip and construction Ramp up to full production Page

13 Olympic Dam Development Current Proposed Mine production Ore = 10 Mt Ore = ~40 Mt (per year) Roxby Downs population Copper = 220,000 t Uranium = 4,000 t Gold = 80,000 ounces Silver = 800,000 ounces 4000 (avg. age 27yrs, 32% under 15yrs) Copper = ~500,000 t Uranium = ~15,000 t Gold = ~500,000 ounces Silver - ~2,900,000 ounces Total ~ Energy 120 MW, from grid Total of ~400 MW, from State grid, on-site gas or a combination (per year) Water 32 Ml/d, from GAB Total of ~120 Ml/d, from GAB / regional aquifers or coastal desalination Transport In/Out (per year) 1 Mt, by road 12,000 trucks (30 per day) Total of ~2.2 Mt, by road/rail intermodal or direct rail Exports Via Port Adelaide Via Port Adelaide and / or Darwin Page

14 B ulk S am p le D rift L o c atio n Surface Raise Position Page

15 Mineral Resource

16 Change to mineral resource wireframe 2003 resource plan outline July 2004 indicative plan outline The indicative outline above incorporates drill results up to June 2004; drilling continues. Page

17 Footprint of Southern resource Page

18 Recent Drill results Hole ID Interval Cu U3O8 Au Ag % kg/t g/t g/t RD RD RD RD RD RD Page

19 Olympic Dam Mineral Resources Category Model Tonnes (Mt) Cu (%) U 3 O 8 (kg/t) Au (g/t) Ag (g/t) Cu:S Measured Indicated Inferred TOTAL The estimates of Mineral Resources in this slide were prepared in accordance with the standards for reporting and classification set out in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code'). The information is based on information compiled by Neil Pickers (AusIMM), a full-time employee of BHP Billiton who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a Competent Person as defined in the JORC Code. Page

20 Mining

21 Mining Methods Studied Sub level open stope Block Cave Sub level cave Open Pit Page

22 Pit with Drill holes Page

23 Final Pit Shell (October 2004 Model) Pre-stripping Total waste Total Ore: ~4.0 years Mt Mt Stripping Ratio 4.5: 1 Life of mine Indicative Dimensions Mtpa m West-East m North-South Depth m RL (1 120 m Below Surface) Page

24 Principal Mining Equipment Conceptual Mining Equipment Required for 325 Mtpa Material Movement capacity: Drill Rigs 10 Face shovels 8-10 Haul trucks Track dozers 5 Water carts 3 In-Pit/Ex-Pit Crushers 6 Ramp Conveyors 3 Waste Dump Conveyors 3 Waste Dump Spreaders 3 Estimated Capital Costs $US - $1 billion (Contingency allowance 15%) Final Equipment Size, Type and Quantity subject to Engineering g trade offs and Optimization Studies Page

25 Olympic Dam Pit Outline Open pit outline compared to the Adelaide CBD area Page