Impact of Extreme Weather Event at Capricorn Copper

Over a period of five days from 6–10 March 2023, Capricorn Copper recorded approximately 500 mm of rainfall, including two consecutive days of approximately 200 mm of rain on 8 and 9 March. To put this in context, the aggregate rainfall for five days was the highest five-day rainfall event ever recorded for the Mount Isa region, with the region now having also recorded its highest aggregate wet season rainfall of 1,364 mm in the first five months of the regional rainfall year (1 November to 31 October).

To ensure the health and safety of our team, and to mitigate the risk of an environmental incident as a result of the extreme weather, mining and mineral processing operations at Capricorn Copper were suspended. Road access to and from the site, for personnel and supplies, was cut off for a period of approximately eight (8) days.

The assessment of the impact of the extreme rainfall event and the recovery task is well advanced. The event has resulted in significant further accumulation of water on site. Current estimates are that this event has resulted in the accumulation of an additional 1.5 gigalitres of water on-site, including approximately 500 megalitres in the Esperanza South sub-level cave (‘ESS’). Flood waters on site as a result of this event have also resulted in inundation and damage affecting site infrastructure, including the water treatment plant (which provides water for mineral processing operations), the workshop and warehouse facilities, and infrastructure supporting the processing plant reclaim conveyor. The processing plant comminution and flotation circuit, as well as the camp and other facilities, do not appear to have been significantly damaged.

The tailings storage facility (‘TSF’), the Esperanza TSF, operated as planned and there has been no accumulation of water on the Esperanza TSF.

The ability of the site to withstand this event with no uncontrolled release of water from site water storage facilities and no loss of containment of tailings, combined with no injuries to our workforce, are a testament to the dedication of the team on site and 29Metals’ significant investment over the past nearly two years in water management infrastructure and management plans, as well as the support of our business partners and other stakeholders.

29Metals’ focus at Capricorn Copper is now on recovery as we seek to safely return the site to normal operations as soon as possible. Key drivers for recovery will be the treatment of the significantly increased volume of water held on site as a result of this event, reduction of site water levels, dewatering ESS, and repairing the water treatment plant. Functional expertise from across the Group is being deployed to support the site team, and external support being brought in as required, as we work towards the safe return to operations.

The recovery process will be challenging and we will update our investors as we finalise recovery planning. Despite the challenges ahead of us, we have great confidence in the team that is planning and will execute the recovery.

We also have great confidence in Capricorn Copper’s future. Capricorn Copper has a mine life in excess of ten years currently, and a pipeline of organic growth opportunities. We are committed to returning Capricorn Copper to safe operations and advance the site’s future growth potential.

For updates and further information, refer to our ASX Announcements page.

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