As well as advanced exploration projects in the vicinity of our existing mines, OZ Minerals also has stand-alone advanced exploration and near–development projects in Australia, Canada and Indonesia. While requirements to reduce the company’s capital expenditure saw these projects suspended or deferred in late 2008, they remain able to be re-started when economic conditions permit.

Dugald River project

The Dugald River deposit is an undeveloped zinc, lead and silver resource in northern Queensland. A feasibility study completed in 2008 increased the resource to 54 million tonnes of 12.7 per cent zinc, 2.0 per cent lead and 39 g/t silver. The study determined that Dugald River is a robust project capable of producing 200,000 tonnes of zinc, 25,000 tonnes of lead and one million ounces of silver for a period of over 20 years. It also concluded that the project had mid tier costs, high grades and significant exploration upside. While the project remains a very attractive zinc deposit, plans to seek Board approval to commence construction of this project were deferred in December 2008 due to the decline in zinc prices.

Exploration work continues on the Dugald River leases.

Nunavut projects

OZ Minerals has a suite of polymetallic base metals and gold assets in the Nunavut Territories of northern Canada.

Principal assets include the Izok Lake copper, zinc, lead and silver resource, the High Lake copper, zinc, lead and silver resource, gold resources at Lupin and Ulu, base metal deposits at Gondor and Hood and around 2,000 square kilometres of exploration tenements. Assets also include gold mining and processing plant and equipment on care and maintenance at the Lupin mine.

The Izok Lake resource was the subject of a pre-feasibility study in 2008 which determined that discovery of further resources was required before investment in a full feasibility study was justified.

Martabe project

The Martabe project is located on the western side of the province of North Sumatra in Indonesia. It is 3 kilometres northwest of the district capital Batangtoru and 40 kilometres southeast of the coastal town of Sibolga.

The project is based on a gold and silver deposit which contains Mineral Resources of 6 million ounces of gold and 60 million ounces of silver. OZ Minerals had commenced work on developing a 4.5 million tonnes per annum gold mining operation with planned production of around 200,000 ounces of gold and 2 million ounces of silver. Following a review of capital and operating expenditure OZ Minerals announced that development of the operation would be suspended and capital expenditure of approximately US$225 million deferred until after 2009.

As at 31 December 2008 the project had a workforce of over 270 people.