OMH updated its resource and ore reserve data for its Bootu Creek mine in Australia; operations at the mine were suspended in December 2015 and it reopened in February 2017.
Bootu Creek resources as of Dec. 31 2017 were 9.95 million mt at an average grade of 22.4 % Mn, a net reduction of 6.3-million mt after allowing for 4.2-million mt of ore processed through the Bootu Creek processing plant in 2015 and 2017.
Bootu Creek Ore reserve at the end of 2017 was 7.32-million mt at an average grade of 20.7% Mn, a net increase of 2.6-million after allowing for 4.2-million mt of ore processed through the Bootu Creek processing plant in 2015 and 2017.
There is a 74% conversion of the Mineral Resource estimate to Ore Reserves.
OMH plans exploration drilling of several untested geophysical anomalies (GAIP) for Renner Springs and follow up of a prospect located to the northwest of Masai planned for 2018.
Local lower yield estimation in conjunction with a lower FOB Darwin price, has resulted in the removal of the low grade and low yielding Foldnose and Zulu South deposits from the Dec. 31, 2017 Mineral Resource estimate (-1-million mt).
Significant changes in the Dec. 31, 2017 ore reserve estimate included an increased FOB Darwin price used in the Ore Reserve estimation of $4.80 per dmtu ($4.00 per dmtu in Dec 2014) and an improved yield estimation for those deposits with a significant high-grade core. All Ore Reserve estimates are based on Life of Mine open pit designs. At the current annual production rate of 800,000 mtpy, the ore reserve is expected to be depleted by mid-2021.