TIDMBHP
RNS Number : 9855W
BHP Group Limited
21 April 2023
A version of this document with diagrams related to the Ocelot
project referred to as Figure 1, Figure 2 and Figure 3 in Appendix
1: BHP Copper Exploration Ocelot is available at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Release Time IMMEDIATE
Date 21 April 2023
Release Number 9/23
BHP OPERATIONAL REVIEW
FOR THE NINE MONTHSED 31 MARCH 2023
-- A colleague, Jody Byrne, tragically was fatally injured in a
rail incident in our Port Hedland operations in February.
-- Production guidance for the 2023 financial year remains
unchanged for iron ore, metallurgical coal and energy coal. Strong
performance means Olympic Dam and Pampa Norte are expected to be
toward the upper end of their guidance ranges, while BHP Mitsubishi
Alliance (BMA) is expected to be at the bottom of its range.
-- Production guidance at Escondida has been lowered to between
1,050 and 1,080 kt (from between 1,080 and 1,180 kt). Given the
strong performance at the other copper assets, full year total
copper production guidance remains unchanged at between 1,635 and
1,825 kt. Full year nickel production has been lowered to between
75 and 85 kt (from between 80 and 90 kt).
-- Western Australia Iron Ore (WAIO) achieved record production
of 212 .6 Mt (100% basis) for the nine month period. Pleasingly,
there was no significant damage or reported injuries at our WAIO
sites as a result of Tropical Cyclone Ilsa. Our Port Hedland
operations were suspended in coordination with the Pilbara Ports
Authority.
-- Full year unit cost guidance(1) remains unchanged from the
half year period ended 31 December 2022. Escondida and WAIO are
expected to be at the top of their respective ranges.
-- On 13 April 2023, shareholders of OZ Minerals Ltd (OZL) voted
to approve the scheme of arrangement for BHP to acquire 100 per
cent of the shares in OZL . The Scheme became effective on 18 April
2023 and is expected to be implemented on 2 May 2023.
-- The South Australian government has granted environmental
approval for the next phase of exploration drilling at Oak Dam.
-- BHP has identified a new copper porphyry mineralised system,
Ocelot, in the Miami-Globe copper district in Arizona, United
States.
BHP Chief Executive Officer, Mike Henry:
"Safety is paramount, and we are deeply saddened by the tragic
death of Jody Byrne in an incident at Port Hedland in February. An
investigation into the cause of the incident is underway, the
findings of which will be shared widely.
"Our WA iron ore business achieved record production, and total
copper output for the Group was up for the nine months, while
metallurgical coal volumes were down slightly due to significant
wet weather. Overall copper production for the year remains on
track, however we've reduced production guidance at Escondida and
also at Nickel West. We continue to focus on safety, productivity
and costs as we navigate ongoing challenges and inflationary
impacts.
1
"Last week, OZ Minerals shareholders voted overwhelmingly in
favour of BHP's offer. We are now focused on the safe integration
of the two businesses and we look forward to building an
internationally competitive copper business in South Australia and
incorporating West Musgrave into our nickel options in Western
Australia. We are pursuing growth options in copper and nickel
globally - we aim to have up to 10 drill rigs on the ground at Oak
Dam in South Australia in the next few months and have seen
promising results from a potential new copper prospect in Arizona.
In Canada, we signed $260 million (CAD) in new contracts with
Indigenous suppliers in March, and construction of the Jansen
potash project is on track.
"Recent engagements with customers in China and India have
reaffirmed our positive outlook for commodity demand, with China's
economic rebound and solid momentum in India's steelmaking growth
helping to offset the impact of slowing growth in the US, Japan and
Europe."
Summary
Operational performance
Production and guidance are summarised below.
Mar YTD23 Mar Q23 Mar Q23 Previous Current
Mar Mar vs vs vs FY23 FY23
Production YTD23 Q23 Mar YTD22 Mar Q22 Dec Q22 guidance guidance
--------------------------- -------- ----- ---------- -------- -------- ------------- -------------
Copper (kt) 1,240.3 405.9 12% 10% (4%) 1,635 - 1,825 1,635 - 1,825 Unchanged
Escondida (kt) 762.3 251.6 7% 11% (2%) 1,080 - 1,180 1,050 - 1,080 Lowered
Pampa Norte (kt) 220.3 73.0 8% 7% (5%) 240 - 290 240 - 290 Upper end
Olympic Dam (kt) 155.8 51.7 88% 33% (5%) 195 - 215 195 - 215 Upper end
Antamina (kt) 101.9 29.6 (8%) (18%) (16%) 120 - 140 120 - 140 Unchanged
Iron ore (Mt) 191.7 59.8 1% 0% (11%) 249 - 260 249 - 260
WAIO (Mt) 188.5 58.7 1% 0% (11%) 246 - 256 246 - 256 Unchanged
WAIO (100% basis) (Mt) 212.6 66.2 1% (1%) (11%) 278 - 290 278 - 290 Unchanged
Samarco (Mt) 3.3 1.0 7% 5% (4%) 3 - 4 3 - 4 Top end
Metallurgical coal - BMA
(Mt) 20.5 6.9 (2%) (13%) 0% 29 - 32 29 - 32
BMA (100% basis) (Mt) 41.1 13.9 (2%) (13%) 0% 58 - 64 58 - 64 Bottom end
Energy coal - NSWEC (Mt) 9.4 3.9 (4%) 53% 38% 13 - 15 13 - 15 Unchanged
Nickel (kt) 58.0 19.6 0% 5% 11% 80 - 90 75 - 85 Lowered
Mar YTD23 Mar Q23
Production (vs Mar YTD22) (vs Dec Q22) Mar Q23 vs Dec Q22 commentary
----------------------- --------------- ------------- ------------------------------------------------------------------------------------------
Copper (kt) 1,240.3 405.9 Lower concentrate volumes at Escondida reflect the impact of different ore feed sources on
throughput and recovery performance, and lower volumes at Olympic Dam as a result of reduc
ed
refinery productivity following the tie-in of minor upgrade works.
12% (4%)
Iron ore (Mt) 191.7 59.8 Lower volumes at WAIO due to the temporary shutdown of all operations following the tragic
fatality in February, and the planned tie-in activity of the Port Debottlenecking Project
1 (PDP1).
1% (11%)
Metallurgical coal (Mt) 20.5 6.9 Production in line with the prior period despite continued significant wet weather.
(2%) 0%
Energy coal (Mt) 9.4 3.9 Higher production following improved weather, labour stability and strip ratios, and a red
uced
proportion of washed coal.
(4%) 38%
Nickel (kt) 58.0 19.6 Higher volumes due to planned maintenance at the smelter and refinery in the prior quarter
and increased purchases of third party products.
0% 11%
2
Corporate update
Portfolio
In February, BHP issued US$2.75 billion in senior unsecured
bonds in the US market comprising: US$1.0 billion in three-year
bonds; US$1.0 billion in five-year bonds; and US$0.75 billion in
10-year bonds with the proceeds intended for general corporate
purposes.
On 13 April, BHP announced that OZ Minerals Ltd (OZL)
shareholders approved the scheme of arrangement for BHP to acquire
100 per cent of the shares in OZL (the Scheme). The Scheme became
effective on 18 April 2023 and is expected to be implemented on 2
May 2023. Once effective, the acquisition of OZL and its assets
will provide BHP with further exposure to copper, nickel and
uranium. OZL's shareholders will be paid total cash consideration
of A$28.25 per OZL share, comprising the scheme consideration paid
by BHP of A$26.50 for each OZL share held at the scheme record
date, which is 24 April 2023, and a fully franked special dividend
paid by OZL of A$1.75 for each OZL share held on the special
dividend record date, which is 21 April 2023. The cash payment by
BHP will be funded using a combination of BHP's existing cash
reserves and the proceeds of a debt facility.
Decarbonisation
Throughout the March 2023 quarter we continued to make progress
towards our decarbonisation targets and goals and supported efforts
to reduce greenhouse gas (GHG) emissions across our value chain.
For example:
-- BHP signed an agreement with Hatch to design an electric
smelting furnace (ESF) pilot plant to demonstrate a pathway to
lower carbon dioxide (CO(2) ) intensity in steel production using
iron ore from our WAIO mines. Estimates show that reductions of
more than 80 per cent in CO(2) emissions intensity are potentially
achievable processing Pilbara iron ores through a Direct Reduced
Iron (DRI)-ESF pathway, compared to the current industry average
using the conventional blast furnace route.
-- BHP expanded its Memorandum of Understanding (MoU) with
China's HBIS Group , one of the world's largest steelmakers and a
major iron ore customer of BHP, to incorporate a pilot of carbon
capture and utilisation technology at HBIS's steel operations in
China.
-- BHP announced the trial of Hydrotreated Vegetable Oil (HVO)
to power haul trucks and other mining equipment over an initial
three-month trial period at the Yandi iron ore operations in
Western Australia in collaboration with BP. The HVO has
internationally recognised certification as being sourced from more
sustainable feedstocks such as waste products.
Copper
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
--------- ------- ---------- -------- --------
Copper (kt) 1,240.3 405.9 12% 10% (4%)
Zinc (t) 86,226 23,612 (10%) (28%) (21%)
Uranium (t) 2,593 833 62% 7% (12%)
Copper - Total copper production increased by 12 per cent to
1,240 kt. Guidance for the 2023 financial year remains unchanged at
between 1,635 and 1,825 kt.
3
Escondida copper production increased by seven per cent to 762
kt primarily due to higher concentrator feed grade of 0.79 per
cent, compared to 0.74 per cent in the nine months to March 2022.
The positive impact of higher grade was partially offset by the
impact of road blockades across Chile in the December 2022 quarter,
which reduced availability of some key mine supplies. Full year
production has been lowered to between 1,050 and 1,080 kt (from
between 1,080 and 1,180 kt) as we manage geotechnical risk in a
high grade section of the Escondida pit. This has led to a
resequencing of the mine plan, resulting in lower volumes of mined
ore and increased processing of lower grade stockpiles through the
concentrators. Concentrator feed grade is expected to improve in
the June 2023 quarter, compared to the nine months ended March
2023. Medium term guidance of 1.2 Mtpa of copper production on
average over the next five years remains unchanged.
Pampa Norte copper production increased by eight per cent to 220
kt as a result of higher concentrator throughput at the Spence
Growth Option (SGO). Full year production is expected to be towards
the upper end of the guidance range of between 240 and 290 kt. The
SGO plant modifications which commenced in August 2022 are planned
to be completed in the 2023 calendar year. Expected capital
expenditure for the works remains unchanged at approximately US$100
million. Further studies are ongoing for additional capacity uplift
at SGO. Cerro Colorado continues to transition towards planned
closure at the end of the 2023 calendar year.
Olympic Dam copper production of 156 kt was an increase of 88
per cent on the prior period, primarily as a result of the major
smelter maintenance campaign (SCM21) across the December 2021 and
March 2022 quarters. Continued strong concentrator and smelter
performance has delivered record concentrate smelted for the nine
month period. The March 2023 quarter was also a record gold
production quarter, contributing to a record nine months for both
gold and silver production following the implementation of
debottlenecking initiatives in the prior year. Copper production is
expected to be towards the upper end of the guidance range for the
2023 financial year at between 195 and 215 kt.
Antamina copper production decreased by eight per cent to 102 kt
reflecting expected lower copper feed grades, partially offset by
higher throughput. Zinc production was 10 per cent lower at 86 kt
reflecting expected lower zinc feed grades, partially offset by
higher throughput. Production guidance remains unchanged for the
2023 financial year, with copper production of between 120 and 140
kt, and zinc production of between 115 and 135 kt.
4
Iron ore
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
------------- -------------- ---------- -------- --------
Iron ore production (kt) 191,748 59,773 1% 0% (11%)
Iron ore - Total iron ore production increased by one per cent
to 192 Mt. Guidance for the 2023 financial year remains unchanged
at between 249 and 260 Mt.
WAIO production increased by one per cent to a nine month record
of 188 Mt (213 Mt on a 100 per cent basis), reflecting continued
strong supply chain performance, including improved car dumper
utilisation and lower COVID--19 related impacts than the prior
period. This was partially offset by a 24 hour safety stop across
the WAIO business and a further two day suspension of rail
operations following the tragic fatality, and the planned tie-in of
PDP1, which remains on track to be completed in the 2024 calendar
year.
The production ramp up at South Flank remains on track to reach
full capacity of 80 Mtpa (100 per cent basis) by the end of the
2024 financial year. Current year performance has contributed to
record year to date WAIO lump sales. Additionally, the deployment
of autonomous haul trucks is well progressed and is expected to be
completed by the end of the 2023 calendar year.
WAIO production guidance for the 2023 financial year remains
unchanged at between 246 and 256 Mt (278 and 290 Mt on a 100 per
cent basis). There has been no significant damage or reported
injuries at our WAIO sites as a result of Tropical Cyclone Ilsa in
April 2023. Our Port Hedland operations were suspended in
coordination with the Pilbara Ports Authority, but have since
ramped up to full capacity. Full year unit cost guidance at WAIO of
between $18 and $19 per tonne is expected to be at the top of the
range.
Samarco production increased by seven per cent to 3.3 Mt (BHP
share), reflecting strong concentrator performance. Production for
the 2023 financial year is expected to be at the top of the
guidance range of between 3 and 4 Mt (BHP share).
In late March, the Fourth Federal Court in Brazil ordered BHP
Brasil and Vale to deposit a total of BRL 10.3 billion
(approximately US$1.0 billion, BHP Brasil share) in 10 instalments
to be paid every 40 days, with the first instalment due on 20 May.
The decision relates to a dispute as to whether certain territories
in the State of Espírito Santo were affected by the dam failure.
The Fourth Federal Court ordered that the deposit be paid to ensure
that funds are available if required for reparation in those
territories. BHP Brasil has appealed the decision.
The Group's provisions related to the Samarco dam failure and
Germano dam decommissioning are subject to ongoing assessment and
totalled US$3.3 billion as at 31 December 2022, including an
expected cash outlay for the 2023 calendar year of US$1.95
billion.
There are a number of matters related to the Samarco dam failure
which are disclosed as contingent liabilities and given the status
of proceedings it is not possible to provide a range of possible
outcomes or a reliable estimate of potential future exposures for
BHP. Please refer to the financial results for the period ending 31
December 2022 for further information.
5
Coal
Production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
--------------- --------------- ---------- -------- --------
Metallurgical coal (kt) 20,543 6,929 (2%) (13%) 0%
Energy coal (kt) 9,408 3,934 (4%) 53% 38%
Metallurgical coal - BMA production decreased by two per cent to
21 Mt (41 Mt on a 100 per cent basis) as a result of significant
wet weather. This was partially offset by continued improvement in
underlying truck productivity, in particular at Goonyella and
Daunia following the completion of their autonomous fleet
transitions, as well as reduced COVID-19 related labour
constraints. In the nine months to March 2023, BMA has experienced
the highest level of rainfall in the past 10 years, significantly
impacting production.(2)
Full year production is expected to be at the bottom of the
guidance range of between 29 and 32 Mt (58 and 64 Mt on a 100 per
cent basis), with further wet weather in the June 2023 quarter
posing a risk to this outcome. The additional long wall move at
Broadmeadow noted in the December 2022 Operational Review is
planned to commence in June 2023.
While we will continue to sustain and optimise our existing
assets, BMA is not making significant new investments in Queensland
given the changes to the royalty regime imposed by the current
government which have increased risk and reduced competitiveness of
investments in the State.
Energy coal - New South Wales Energy Coal (NSWEC) production
decreased by four per cent to 9 Mt reflecting the impacts of the
wet weather experienced in the December 2022 half, and the
increased proportion of washed coal. This was partially offset by
improved stability in labour, particularly reduced absenteeism
which impacted stripping performance and mine productivity in the
prior period. Higher quality products made up approximately 85 per
cent of sales, compared to approximately 90 per cent in the prior
period. Production guidance for the 2023 financial year remains
unchanged at between 13 and 15 Mt.
Following the NSW Government Directions to local thermal coal
producers, NSWEC has started delivering their domestic allocation
of 0.175 Mt per quarter from April 2023. The full allocation for
the June 2023 quarter has been sold at 100 per cent of the current
price cap of A$125 per tonne. The reservation allocation for the
2024 financial year is expected to be 0.7 Mt in line with the
Directions.
Other
Nickel production
Mar YTD23 Mar Q23 Mar Q23
vs vs vs
Mar YTD23 Mar Q23 Mar YTD22 Mar Q22 Dec Q22
--------- ------- ---------- -------- --------
Nickel (kt) 58.0 19.6 0% 5% 11%
Nickel - Nickel West production was in line with the prior
period at 58 kt, with the ramp up of the refinery following planned
maintenance in the December 2022 quarter offset by the increased
proportion of concentrate and matte products.
In March, Nickel West advised one of its third party product
providers, Mincor Resources, that it will no longer accept
off-specification product containing high levels of arsenic due to
the issues with processing this ore. Further, a heavy rain event
was experienced at the Mt Keith operations in early April 2023
impacting mine progression. As a result, production guidance for
the 2023 financial year has been revised to between 75 and 85 kt
(from between 80 and 90 kt).
6
Potash - Our major potash project under development at Jansen is
tracking to plan. In the March 2023 quarter, we commenced blasting
and excavation work at the bottom of the shafts. For the remainder
of the 2023 financial year, we will continue to focus on civil and
mechanical construction on the surface and underground, as well as
equipment procurement and port construction. The feasibility study
for Jansen Stage 2 continues to progress and is on track to be
completed during the 2024 financial year.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
------------ ------------ ----------- ------------------------------- --------------
Jansen Stage 5,723 End-CY26 Design, engineering and Project is 20%
1 construction of an underground complete
potash mine and surface
infrastructure, with capacity
to produce 4.35 Mtpa.
(Canada)
100%
Minerals exploration
Minerals exploration expenditure for the nine months to 31 March
2023 was US$239 million, of which US$196 million was expensed.
BHP has identified a new copper porphyry mineralised system,
Ocelot, located 140 km east of Phoenix, Arizona, United States in
the Miami-Globe copper district. From 2019 to present, BHP has
drilled 12 holes in the project area, totalling 17,748 metres with
10 holes intersecting porphyry copper style mineralisation. Ten of
the holes resulted in 12 intervals of significant intercepts with
laboratory assay results average copper grades ranging from 0.44 to
0.92 per cent copper. The project remains at an early exploration
stage with two holes to be completed from the current exploration
drill program and is expected to be completed by May 2023. For
further details refer to Appendix 1.
At Oak Dam in South Australia we continue to work in close
partnership with traditional owners, and the South Australian
government have recently granted environmental approval for the
next phase of exploration drilling. The approval permits up to 14
drill rigs, more than double the current approval, an accommodation
camp for up to 150 people and core processing facilities. We
currently operate 6 drills rigs in the area and expect to increase
this to 10 drill rigs by the end of the September 2023 quarter.
Following the execution of the Option Agreement with Mundoro
Capital in January 2023, covering three exploration projects in
Serbia (Trstenik, Borsko and South Timok), Mundoro has commenced
initial drilling on the Borsko project.
The inaugural BHP Xplor accelerator program, supporting
early-stage mineral exploration companies to find critical
resources, such as copper and nickel, is now underway. Seven
companies were selected into the program, which offers participants
in-kind services, mentorship and networking opportunities.
Elsewhere, we continue to progress exploration activities in
Canada, Chile, Ecuador, and Peru.
7
Variance analysis relates to the relative performance of BHP
and/or its operations during the nine months ended March 2023
compared with the nine months ended March 2022, unless otherwise
noted. Production volumes, sales volumes and capital and
exploration expenditure from subsidiaries are reported on a 100 per
cent basis; production and sales volumes from equity accounted
investments and other operations are reported on a proportionate
consolidation basis. Numbers presented may not add up precisely to
the totals provided due to rounding.
The following footnotes apply to this Operational Review:
1 2023 financial year unit cost guidance: Escondida
US$1.25-1.45/lb, WAIO US$18-19/t, BMA US$100-105/t and NSWEC
US$84-91/t; based on exchange rates of AUD/USD 0.72 and USD/CLP
830.
2 767mm of rainfall recorded at Moranbah in the nine months
ended 31 March 2023 compared to 498mm in the nine months ended 31
March 2022. The first nine months of financial year 2023 are the
wettest in the last ten years, and the fifth wettest in the last
fifty years.
The following abbreviations may have been used throughout this
report: cost and freight (CFR); cost, insurance and freight (CIF);
dry metric tonne unit (dmtu); free on board (FOB); grams per tonne
(g/t); kilograms per tonne (kg/t); kilometre (km); megawatt (MW);
metre (m); millimetre (mm); million tonnes (Mt); million tonnes per
annum (Mtpa); ounces (oz); pounds (lb); thousand ounces (koz);
thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand
tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
In this release, the terms 'BHP', the 'Group', 'BHP Group',
'we', 'us', 'our' and 'ourselves' are used to refer to BHP Group
Limited and, except where the context otherwise requires, our
subsidiaries. Refer to note 28 'Subsidiaries' of the Financial
Statements in BHP's 30 June 2022 Appendix 4E for a list of our
significant subsidiaries. Those terms do not include non-operated
assets. Notwithstanding that this release may include production,
financial and other information from non-operated assets,
non-operated assets are not included in the BHP Group and, as a
result, statements regarding our operations, assets and values
apply only to our operated assets unless stated otherwise. Our
non-operated assets include Antamina and Samarco. BHP Group
cautions against undue reliance on any forward-looking statement or
guidance in this release, particularly in light of the current
economic climate and significant volatility, uncertainty and
disruption arising in connection with COVID-19. These
forward-looking statements are based on information available as at
the date of this release and are not guarantees or predictions of
future performance and involve known and unknown risks,
uncertainties and other factors, many of which are beyond our
control and which may cause actual results to differ materially
from those expressed in the statements contained in this
release.
8
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Email: media.relations@bhp.com Email: investor.relations@bhp.com
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9
Production summary
Year to
Quarter ended date
--------------------------------------------------------------- ------------------------
BHP Mar Jun Sep Dec Mar Mar Mar
interest 2022 2022 2022 2022 2023 2023 2022
--------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Copper (1)
Copper
Payable metal in
concentrate (kt)
Escondida (2) 57.5% 178.2 233.5 203.1 208.3 200.8 612.2 569.1
Pampa Norte (3) 100.0% 32.4 28.2 28.6 32.5 32.0 93.1 83.0
Antamina 33.8% 36.1 39.6 37.1 35.2 29.6 101.9 110.3
Total 246.7 301.3 268.8 276.0 262.4 807.2 762.4
Cathode (kt)
Escondida (2) 57.5% 48.2 55.8 49.6 49.7 50.8 150.1 145.6
Pampa Norte (3) 100% 35.8 49.0 42.0 44.2 41.0 127.2 121.0
Olympic Dam 100% 39.0 55.7 49.7 54.4 51.7 155.8 82.7
Total 123.0 160.5 141.3 148.3 143.5 433.1 349.3
Total copper (kt) 369.7 461.8 410.1 424.3 405.9 1,240.3 1,111.7
Lead
Payable metal in
concentrate (t)
Antamina 33.8% 282 181 228 114 169 511 937
Total 282 181 228 114 169 511 937
Zinc
Payable metal in
concentrate (t)
Antamina 33.8% 32,732 27,576 32,685 29,929 23,612 86,226 95,624
Total 32,732 27,576 32,685 29,929 23,612 86,226 95,624
Gold
Payable metal in
concentrate (troy
oz)
Escondida (2) 57.5% 36,303 45,770 38,236 48,402 48,954 135,592 121,202
Pampa Norte (3) 100% 7,929 8,198 5,521 3,875 8,152 17,548 20,672
Olympic Dam
(refined
gold) 100% 29,355 26,080 47,184 43,280 49,086 139,550 93,437
Total 73,587 80,048 90,941 95,557 106,192 292,690 235,311
Silver
Payable metal in
concentrate (troy
koz)
Escondida (2) 57.5% 1,270 1,311 1,210 1,510 1,346 4,066 4,023
Pampa Norte (3) 100% 261 262 252 245 409 906 749
Antamina 33.8% 1,191 1,212 1,190 923 801 2,914 3,866
Olympic Dam
(refined
silver) 100% 149 145 295 261 277 833 598
Total 2,871 2,930 2,947 2,939 2,833 8,719 9,236
10
Production summary
Year to
Quarter ended date
--------------------------------------------- ------------------
BHP Mar Jun Sep Dec Mar Mar Mar
interest 2022 2022 2022 2022 2023 2023 2022
---------- ------- ------- ------- ------- --------- -------- --------
Uranium
Payable metal in
concentrate (t)
Olympic Dam 100% 781 776 817 943 833 2,593 1,599
Total 781 776 817 943 833 2,593 1,599
Molybdenum
Payable metal in
concentrate (t)
Pampa Norte (3) 100% - 71 34 216 407 657 -
Antamina 33.8% 190 249 262 348 229 839 549
Total 190 320 296 564 636 1,496 549
Iron Ore
Iron Ore
Production (kt) (4)
Newman 85% 11,940 14,063 14,053 16,172 11,925 42,150 42,978
Area C Joint Venture 85% 24,888 27,685 26,971 26,302 25,284 78,557 66,746
Yandi Joint Venture 85% 8,418 6,409 5,497 5,613 4,941 16,051 32,513
Jimblebar (5) 85% 13,444 15,005 17,404 17,720 16,575 51,699 43,777
Samarco 50% 994 1,000 1,148 1,095 1,048 3,291 3,071
Total 59,684 64,162 65,073 66,902 59,773 191,748 189,085
Coal
Metallurgical coal
Production (kt) (6)
BHP Mitsubishi Alliance
(BMA) 50% 7,944 8,183 6,662 6,952 6,929 20,543 20,959
Total 7,944 8,183 6,662 6,952 6,929 20,543 20,959
Energy coal
Production (kt)
NSW Energy Coal 100% 2,577 3,919 2,623 2,851 3,934 9,408 9,782
Total 2,577 3,919 2,623 2,851 3,934 9,408 9,782
Other
Nickel
Saleable production
(kt)
Nickel West 100% 18.7 18.8 20.7 17.7 19.6 58.0 58.0
Total 18.7 18.8 20.7 17.7 19.6 58.0 58.0
Cobalt
Saleable production
(t)
Nickel West 100% 125 110 238 93 175 506 522
Total 125 110 238 93 175 506 522
1 Metal production is reported on the basis of payable metal.
2 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
3 Includes Cerro Colorado and Spence.
4 Iron ore production is reported on a wet tonnes basis.
5 Shown on a 100% basis. BHP interest in saleable production is 85%.
6 Metallurgical coal production is reported on the basis of
saleable product. Production figures may include some thermal
coal.
Throughout this report figures in italics indicate that this
figure has been adjusted since it was previously reported.
11
Production and sales report
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2022 2022 2022 2022 2023 2023 2022
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Copper
Metals production is payable metal
unless otherwise stated.
Escondida, Chile
(1)
Material mined (kt) 107,676 115,409 110,248 101,987 106,170 318,405 338,834
Concentrator throughput (kt) 30,235 34,318 32,894 33,911 33,309 100,114 99,550
Average copper grade
- concentrator (%) 0.80% 0.88% 0.83% 0.76% 0.78% 0.79% 0.74%
Production ex mill (kt) 191.5 239.5 214.6 212.8 210.0 637.4 596.3
Production
Payable copper (kt) 178.2 233.5 203.1 208.3 200.8 612.2 569.1
Copper cathode (EW) (kt) 48.2 55.8 49.6 49.7 50.8 150.1 145.6
- Oxide leach (kt) 12.2 17.5 15.2 17.6 14.7 47.5 40.1
- Sulphide leach (kt) 36.0 38.3 34.4 32.1 36.1 102.6 105.5
Total copper (kt) 226.4 289.3 252.7 258.0 251.6 762.3 714.7
(troy
Payable gold concentrate oz) 36,303 45,770 38,236 48,402 48,954 135,592 121,202
(troy
Payable silver concentrate koz) 1,270 1,311 1,210 1,510 1,346 4,066 4,023
Sales
Payable copper (kt) 177.0 230.4 196.7 216.0 197.3 610.0 567.7
Copper cathode (EW) (kt) 47.2 58.9 45.9 53.5 43.8 143.2 143.6
(troy
Payable gold concentrate oz) 36,303 45,770 38,236 48,402 48,954 135,592 121,202
(troy
Payable silver concentrate koz) 1,270 1,311 1,210 1,510 1,346 4,066 4,023
1 Shown on a 100% basis. BHP interest in saleable production is 57.5%.
12
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Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 3,516 3,604 3,179 583 172 3,934 13,676
Ore stacked (kt) 3,181 4,259 4,373 4,119 3,567 12,059 10,776
Average copper grade
- stacked (%) 0.53% 0.55% 0.54% 0.56% 0.57% 0.56% 0.59%
Production
Copper cathode (EW) (kt) 11.6 14.7 12.8 12.2 12.0 37.0 40.3
Sales
Copper cathode (EW) (kt) 10.5 16.2 13.3 12.2 10.9 36.4 38.6
Spence
Material mined (kt) 24,040 26,749 26,956 26,980 24,858 78,794 69,219
Ore stacked (kt) 5,055 5,099 5,577 5,155 4,947 15,679 15,384
Average copper grade
- stacked (%) 0.67% 0.66% 0.70% 0.66% 0.64% 0.67% 0.66%
Concentrator throughput (kt) 6,512 6,311 6,433 7,602 7,290 21,325 18,532
Average copper grade
- concentrator (%) 0.65% 0.66% 0.63% 0.60% 0.61% 0.61% 0.63%
Production
Payable copper (kt) 32.4 28.2 28.6 32.5 32.0 93.1 83.0
Copper cathode (EW) (kt) 24.2 34.3 29.2 32.0 29.0 90.2 80.7
Total copper (kt) 56.6 62.5 57.8 64.5 61.0 183.3 163.7
(troy
Payable gold concentrate oz) 7,929 8,198 5,521 3,875 8,152 17,548 20,672
(troy
Payable silver concentrate koz) 261 262 252 245 409 906 749
Payable molybdenum (t) - 71 34 216 407 657 -
Sales
Payable copper (kt) 28.1 28.1 26.0 22.0 39.6 87.6 81.4
Copper cathode (EW) (kt) 20.2 35.4 29.1 33.4 25.1 87.6 79.1
(troy
Payable gold concentrate oz) 7,929 8,198 5,521 3,875 8,152 17,548 20,672
(troy
Payable silver concentrate koz) 261 262 252 245 409 906 749
Payable molybdenum (t) - 25 25 216 492 733 -
13
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Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 58,118 64,026 63,865 68,750 57,939 190,554 182,878
Concentrator throughput
(100%) (kt) 13,135 13,131 13,858 14,272 12,349 40,479 39,365
Average head grades
- Copper (%) 0.94% 1.02% 0.93% 0.86% 0.88% 0.89% 0.97%
- Zinc (%) 1.13% 1.05% 1.09% 0.99% 1.06% 1.05% 1.13%
Production
Payable copper (kt) 36.1 39.6 37.1 35.2 29.6 101.9 110.3
Payable zinc (t) 32,732 27,576 32,685 29,929 23,612 86,226 95,624
(troy
Payable silver koz) 1,191 1,212 1,190 923 801 2,914 3,866
Payable lead (t) 282 181 228 114 169 511 937
Payable molybdenum (t) 190 249 262 348 229 839 549
Sales
Payable copper (kt) 32.9 40.7 37.6 34.7 32.4 104.7 107.5
Payable zinc (t) 29,920 30,847 33,820 29,127 25,851 88,798 95,068
(troy
Payable silver koz) 1,078 1,230 1,015 850 768 2,633 3,586
Payable lead (t) 269 363 130 91 181 402 845
Payable molybdenum (t) 199 205 250 298 297 845 455
Olympic Dam, Australia
Material mined (1) (kt) 2,424 2,477 2,412 2,264 2,317 6,993 6,357
Ore milled (kt) 2,122 2,436 2,570 2,687 2,433 7,690 5,251
Average copper grade (%) 2.21% 2.15% 2.13% 2.08% 1.95% 2.06% 2.13%
Average uranium grade (kg/t) 0.62 0.56 0.58 0.58 0.59 0.58 0.58
Production
Copper cathode (ER
and EW) (kt) 39.0 55.7 49.7 54.4 51.7 155.8 82.7
Payable uranium (t) 781 776 817 943 833 2,593 1,599
(troy
Refined gold oz) 29,355 26,080 47,184 43,280 49,086 139,550 93,437
(troy
Refined silver koz) 149 145 295 261 277 833 598
Sales
Copper cathode (ER
and EW) (kt) 36.3 55.8 45.9 56.8 50.5 153.2 83.3
Payable uranium (t) 236 1,031 272 1,127 683 2,082 1,313
(troy
Refined gold oz) 30,935 24,622 49,542 41,900 47,300 138,742 94,357
(troy
Refined silver koz) 182 87 320 233 307 860 598
1 Material mined refers to underground ore mined, subsequently hoisted or trucked to surface.
14
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Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Western Australia
Iron Ore, Australia
Production
Newman (kt) 11,940 14,063 14,053 16,172 11,925 42,150 42,978
Area C Joint Venture (kt) 24,888 27,685 26,971 26,302 25,284 78,557 66,746
Yandi Joint Venture (kt) 8,418 6,409 5,497 5,613 4,941 16,051 32,513
Jimblebar (1) (kt) 13,444 15,005 17,404 17,720 16,575 51,699 43,777
Total production (kt) 58,690 63,162 63,925 65,807 58,725 188,457 186,014
Total production
(100%) (kt) 66,674 71,660 72,135 74,292 66,163 212,590 211,113
Sales
Lump (kt) 16,966 20,006 19,561 20,375 18,021 57,957 52,339
Fines (kt) 42,187 44,308 42,696 44,121 41,183 128,000 134,035
Total (kt) 59,153 64,314 62,257 64,496 59,204 185,957 186,374
Total sales (100%) (kt) 67,110 72,796 70,276 72,688 66,580 209,544 211,147
1 Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil
Production (kt) 994 1,000 1,148 1,095 1,048 3,291 3,071
Sales (kt) 943 991 1,146 1,097 1,111 3,354 3,004
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Coal
Coal production is reported on the basis of saleable product.
BHP Mitsubishi Alliance (BMA), Australia
Production (1)
Blackwater (kt) 1,478 1,751 1,283 1,160 1,107 3,550 4,083
Goonyella (kt) 2,336 2,429 1,780 1,997 2,185 5,962 5,931
Peak Downs (kt) 1,395 1,366 1,325 1,480 1,251 4,056 3,578
Saraji (kt) 1,366 1,168 1,020 1,243 1,007 3,270 3,446
Daunia (kt) 338 472 324 441 607 1,372 1,019
Caval Ridge (kt) 1,031 997 930 631 772 2,333 2,902
Total production (kt) 7,944 8,183 6,662 6,952 6,929 20,543 20,959
Total production (100%) (kt) 15,888 16,366 13,324 13,904 13,858 41,086 41,918
Sales
Coking coal (kt) 6,334 6,734 5,615 5,872 5,372 16,859 16,624
Weak coking coal (kt) 805 1,118 600 727 710 2,037 2,293
Thermal coal (kt) 484 765 267 428 104 799 1,515
Total sales (kt) 7,623 8,617 6,482 7,027 6,186 19,695 20,432
Total sales (100%) (kt) 15,246 17,234 12,964 14,054 12,372 39,390 40,864
1 Production figures include some thermal coal.
16
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NSW Energy Coal, Australia
Production (kt) 2,577 3,919 2,623 2,851 3,934 9,408 9,782
Sales - export (kt) 2,703 3,923 2,441 2,862 3,667 8,970 10,201
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Other
Nickel production is reported on
the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 47.1 48.0 42.6 39.6 38.8 121.0 147.8
Average nickel grade (%) 14.4 16.1 17.0 15.5 16.5 16.3 14.1
Leinster
Nickel concentrate (kt) 78.0 76.0 66.8 47.9 68.4 183.1 229.2
Average nickel grade (%) 8.9 10.3 9.9 9.4 8.6 9.3 9.0
Saleable production
Refined nickel (1) (kt) 13.3 11.7 17.5 10.8 13.2 41.5 45.9
Nickel sulphate (2) (kt) 0.7 0.5 1.2 0.4 0.9 2.5 1.1
Intermediates and nickel
by-products (3) (kt) 4.7 6.6 2.0 6.5 5.5 14.0 11.0
Total nickel (kt) 18.7 18.8 20.7 17.7 19.6 58.0 58.0
Cobalt by-products (t) 125 110 238 93 175 506 522
Sales
Refined nickel (1) (kt) 15.3 11.7 18.1 10.2 13.0 41.3 46.0
Nickel sulphate (2) (kt) 0.7 0.5 0.8 0.5 0.9 2.2 0.8
Intermediates and nickel
by-products (3) (kt) 2.7 6.4 1.8 7.7 5.7 15.2 9.7
Total nickel (kt) 18.7 18.6 20.7 18.4 19.6 58.7 56.5
Cobalt by-products (t) 125 110 238 93 175 506 522
1 High quality refined nickel metal, including briquettes and powder.
2 Nickel sulphate crystals produced from nickel powder.
3 Nickel contained in matte and by-product streams.
17
Appendix 1: BHP Copper Exploration Ocelot
Project summary
The Ocelot project is located 140 kilometres east of Phoenix,
Arizona in the prolific Miami-Globe copper district (Figure 1). The
project area has a long exploration history with exploratory work
by BHP commencing in 2011, including ground geophysical surveys and
drilling campaigns.
BHP completed drill programs at Ocelot between January 2019 and
December 2022, which consisted of 12 broad-spaced diamond drill
holes to test the lateral extents, depth, and variability of
mineralisation (Figure 2) of 18 km in drilling. The drill program,
in conjunction with regional structural mapping and data
integration has led to a follow-up drill program that is expected
to be completed by May 2023.
[Figure 1: Regional geology of the Globe-Miami District showing
known porphyry copper deposits and the Ocelot project.]
Geology and mineralisation
Ocelot has a similar regional setting to the Resolution deposit,
which is approximately 32 km to the southwest, and is located in
the Globe-Miami mining district, known to host a cluster of
Laramide-age porphyry copper deposits including Miami-Inspiration,
Pinto Valley and Copper Cities.
Mineralisation occurs under approximately 700 m of post-mineral
cover and adjacent to the historic Old Dominion mine, which was
primarily focused on high-grade mineralisation of the Old Dominion
vein system and ceased production in 1931.
This drilling has intersected Laramide porphyry style alteration
and mineralisation related to the Schultze Granite intrusive
complex. The main copper sulphide species are chalcopyrite and
bornite, with lesser chalcocite. The copper sulphides occur
disseminated and vein-hosted, favouring permeable and chemically
reactive host lithologies including Dripping Spring Quartzite,
Pioneer Formation, and Proterozoic diabase. Assay results of
significant intercepts are presented in Table 1 with a simplified
geological cross section in Figure 3.
Further details relating to the drilling program are included
within this appendix.
Table 1 : Significant copper intercepts at Project Ocelot
From To Length(1) Copper
Hole ID (m) (m) (m) %
----------- ------ ------ ----------- --------
OCLT1902D 838 1,197 359 0.60
OCLT1903D 714 816 102 0.92
OCLT1903D 844 923 79 0.60
OCLT1903D 978 1,112 134 0.44
OCLT2104D 936 1,212 276 0.63
OCLT2105D 786 1,083 297 0.65
OCLT2106D 992 1,226 234 0.73
OCLT2107D 1,200 1,390 190 0.47
OCLT2209D 1,379 1,464 85 0.71
OCLT2210D 921 1,196 275 0.59
OCLT2211D 787 1,289 502 0.80
OCLT2212D 1,165 1,377 192 0.80
1. Downhole intercept lengths, true widths not known.
18
Further work
BHP's Metals Exploration team is currently completing a
follow-up drilling program, to test the presence and continuity of
a high-grade core of the mineralisation and BHP will continue to
evaluate the results as the program progresses. Additional work
also includes the interpretation and modeling of a recently
completed passive seismic, and borehole electromagnetic (EM)
surveys. This will be integrated into the structural interpretation
and geologic modelling.
[Figure 2: Plan of the Ocelot project area showing drill hole
collar locations and section A - A'.]
[Figure 3: Section A - A' (using a 150m projection from section
line as seen in Figure 2) looking northwest. Downhole traces
showing copper grade for drill holes OCLT2107D, OCLT2105D,
OCLT2104D and OCLT1901D.]
Table 2: Drill hole collar locations and depths in World
Geodetic System 1984 (WGS84 UTMZ12N)
Easting Northing RL Total Depth
Hole ID Drill Hole Type (m) (m) (m) Azimuth Dip (m)
----------- ----------------- -------- --------- ------ -------- ------ ------------
OD108 Historic(1) 519301 3696597 1,070 360 -90 909.8
OD109 Historic(1) 519064 3696453 1,085 360 -90 917.6
OD-13-1 Historic(1) 519505 3696448 1,082 120 -88 1,044.3
OD-13-2 Historic(1) 519204 3696998 1,073 92 -89 1,059.2
OCLT1901D DD 518857 3697648 1,072 178 -80 1,477.9
OCLT1902D DD 518286 3696293 1,131 41 -85 1,517.5
OCLT1903D DD 518779 3696813 1,104 135 -85 1,326.2
OCLT2104D DD 517943 3696902 1,133 245 -85 1,271.5
OCLT2105D DD 517972 3696564 1,104 190 -80 1,036.6
OCLT2106D DD 517908 3696050 1,122 0 -85 1,364.9
OCLT2107D DD 517242 3696368 1,031 355 -85 1,389.9
OCLT2108D DD 516531 3698255 1,100 175 -85 1,440.8
OCLT2209D DD 517996 3695796 1,144 185 -80 1,517.0
OCLT2210D DD 518184 3696067 1,134 0 -85 1,324.7
OCLT2211D DD 518779 3696796 1,104 160 -59 1,372.2
OCLT2212D DD 518001 3695800 1,144 2 -85.5 1,649.3
1. Historic drill holes include Phelps Dodge holes (OD108 and OD
109) drilled in 1965 to 1966 and BHP holes (OD-13-1 and OD-13-2)
drilled in 2013.
Sampling techniques
All samples were obtained from diamond drilling. The diamond
core analysed was predominantly HQ size, and core samples were
split using a core saw with half of the core being submitted for
assaying and the other half returned to BHPs custody.
19
Drilling techniques
All drill holes were completed using diamond drilling from
surface, initially as PQ sized, followed by HQ and some holes ended
in NQ.
PWT casing was typically set within the first 100m of the drill
hole. Depending on ground condition additional HWT casing or PQ
rods may be set when the hole was reduced to HQ (between 500m and
1,100m).
Each hole was surveyed using a north seeking gyroscopic camera
or equivalent, run within the drill rods at 200 foot (61 m)
intervals. Core was oriented using a True North or REFLEX ACT III
orientation tool.
Drill sample recovery
Drill core recovery was measured and recorded continuously from
the start of casing to the end of the hole for each drill hole. The
end of each run was marked on a wooden block which indicates the
end of the run depth, the total length drilled, and total length
recovered for that run.
Drill core recoveries are measured at the drill site, with an
average recovery of greater than 96%, and the majority of holes
recovering greater than 98%.
There is no known relationship between sample loss and grade to
indicate a sample bias may have occurred.
Logging
The following observations were recorded prior to sampling:
lithologic descriptions, including rock type and texture,
alteration mineral assemblages, sulphide abundance and
distribution, structural measurements and feature descriptions, and
the abundance and descriptions of any veining.
Handheld XRF readings were taken periodically on the whole core
at site using an Olympus Delta or Vanta XRF.
Magnetic susceptibility readings were taken systematically on
the whole core at site using a KT-10 Terraplus magnetic
susceptibility meter.
All recovered drill core was logged to depth.
All drill holes were logged in qualitative detail.
All core was photographed wet and dry as whole core inside the
core trays.
Sub-sampling techniques and sample preparation
Diamond core was split using a core saw with half of the core
being submitted to ALS Laboratory for assaying and the other half
returned to BHPs custody.
Submitted sample intervals were approximately 3 m in length
unless geological variability dictated smaller intervals.
All samples were crushed to 2 mm with 250 g being split off and
pulverized further to better than 85% passing 75 microns.
Duplicates were collected at each preparation stages where a
reduction in sample mass occurred. The combined duplicates taken
reflect approximately 3.5 to 5% total of the overall drill
core.
Sample size is considered appropriate for the style of
mineralisation.
Quality of assay data and laboratory tests
All samples were prepared using ALS laboratories in Tucson,
Arizona. Sample pulps are then shipped to ALS laboratories in Reno,
Nevada or Vancouver, Canada for analysis.
20
48 element suite was analysed using 4-acid digestion followed by
ICP-MS (ME-MS61).
30g or 50g fire assay was used to analyse Au.
Samples exceeding 1 wt% Cu were rerun utilising an analytical
method with higher accuracy (Cu-OG62).
Certified reference materials sourced from OREAS and duplicates
were inserted on a regular basis, and where dictated by geological
variability within each sample batch. Reference samples represent
at least 10% of the samples submitted for analysis.
Verification of sampling and assaying
Significant intercepts were identified from the assay results
and validated against visual inspection of drill core and logging
data.
The drilling programs were early-stage exploration with no
twinned holes drilled.
Geological logging of drill holes is captured digitally and
combined with the laboratory analysis in a drill hole database to
ensure consistency between the datasets. All drill hole data is
managed internally via a SQL server hosted database with strict
validation rules.
The database has a security model which requires user access
approval and is backed up regularly by standard backup
procedures.
There have been no adjustments to the assay data that is
uploaded to the database.
Location of data points
Drill hole collars were surveyed by handheld GPS with an
accuracy of 5 m. The data was manually entered in the acQuire
database.
All coordinates are recorded in the World Geodetic System 1984
coordinate system (WGS84 UTM Z12N).
Downhole surveys were completed every 200 ft (61 m) using either
a north seeking gyroscopic camera or equivalent.
The topography is slightly hilly, with elevations varying
between 1,025 m and 1,225 m.
Data spacing and distribution
The drill hole spacing ranged from 250 m to 1,955 m with an
average spacing of 646m as shown in Figure 2.
At the time of this release there is insufficient data to
provide an estimate of Mineral Resources.
No compositing has been applied to the samples.
Orientation of data in relation to geological structure
Drill holes have been drilled with varying dips throughout the
project area, ranging between 60deg and 90deg, with directions
spanning north, northeast, southeast, southwest, and west to avoid
biased trends due to structural features.
Mineralisation at this stage is not well defined but is
interpreted to drop down in depth to the southwest by a series of
post mineralised normal faults.
Sample security
Core was logged and sample intervals determined by the
supervising geologist. All drill core was sent directly from BHP
sites to the ALS laboratory via contracted transport company.
21
At the laboratory preparation facility in Tucson, Arizona, the
core was cut and sampled by the laboratory personnel based on BHP
staff identified sample intervals. The laboratory completed all
photography, cutting, and sample preparation. Once the samples were
prepared, the laboratory staff inserted the QA/QC samples based on
BHP requirements and transported all samples to the secondary
laboratories for analysis. Chain of custody was recorded to enable
verification of the samples.
Audits or reviews
The ALS laboratory sample preparation and analysis procedures
were audited by BHPs internal Practice Lead Geochemistry at the
beginning of calendar year 2022 with no significant issues
identified. Outcomes of the audit was communicated to ALS and
recommendations implemented.
Additional protocols relating to sample security were identified
and implemented for future drill programs.
Section 2 Reporting of Exploration Results
Mineral tenement and land tenure status
BHP holds 21 active mineral lode claims issued by the Bureau of
Land Management (BLM) in 2017 and 2022 which are renewed on an
annual basis and in good standing. Mineral lode claims are public
record and information on claimant, location, and tenure is
preserved for individual claims by the Bureau of Land Management's
Mineral & Land Records System.
In addition, BHP owns or has under license, approximately 72% of
the mineral rights and 40% of surface rights via direct ownership
or active access agreements in the project area of interest.
All drill holes have been located on privately owned surface, on
which BHP either owns or has an access agreement, and over BHP held
mineral rights. Prior to any ground disturbance, archeological and
biological clearance studies were completed by third parties to
ensure no sites of cultural importance nor protected flora and
fauna would be impacted.
Exploration done by other parties
The Ocelot project area and surrounding region has a long
history of exploration activity dating back to 1880s by multiple
companies including but not limited to Phelps Dodge, Magma Copper,
Freeport McMoRan, Bronco Creek Exploration and BHP.
BHP has records of 26 known drill holes, of which 14 were
assayed, in the areas adjacent to the Ocelot project. In addition,
there were 4 drill holes found at the eastern edge of the current
project area drilled in the early 2010s. The four "historical"
drill holes were not subjected to the same quality assurance
processes and therefore uncertainties can exist, and the results
are not part of this disclosure.
Drill hole Information
Tables 1 and 2 presented above summarise the drill hole
information.
Data aggregation methods
All significant intersections are length weighted downhole
widths. True widths are not known at this stage of the exploration
program.
Significant intercepts were defined as intersections greater
than 50 m with a minimum of 0.3% Cu and a maximum of 4 m of
continuous internal dilution (<0.15% Cu).
Metal equivalent calculations have not been used in this
report.
22
Relationship between mineralisation widths and intercepts
lengths
Insufficient data is available to confirm the geological model
or mineralised zones. Intercepts are reported based on downhole
length, true width not known.
Diagrams
Figure 1 provides regional location and context for the Ocelot
project location.
Figure 2 provided in this report shows all drill hole collar
locations with hole traces including historic drill holes in the
project area.
Figure 3 provided in this report is a northeast - southwest
oblique section through drill holes OCLT2107D, OCLT2105, OCLT2104D
and OCLT1901D looking northwest.
Balanced reporting
All drill holes available in the project area are included in
this report.
Only significant intercepts from drill holes completed after
2018 are shown in Table 1. Historic drill holes intercepts have not
been included as they have no supporting QAQC results and are yet
to be verified.
OCLT1901D and OCLT2108D were drilled but did not meet the
significant intercepts threshold as described in the data
aggregation methods section above.
Other substantive exploration data
Two ground direct current induced polarization with passive
magnetotelluric (DCIP-MT) geophysical survey were completed in 2016
and 2017 with an additional ground magnetotelluric (MT) survey
completed 2019. All surveys had varying results due do passive
noise in the area and local town infrastructure.
Downhole pulse electro magnetics (EM) surveys were run on 9 of
the 12 exploration holes drilled.
A ground passive seismic survey was completed in 2022, with
results still pending.
Competent Person statement
The information in the report to which this statement is
attached that relates to Exploration Results is based on
information compiled by Francisco Crignola, a Competent Person who
is a Member of The Australasian Institute of Mining and Metallurgy
(MAusIMM). Mr Crignola is a full-time employee of BHP. Mr Crignola
has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Crignola consents to the inclusion in the report of the matters
based on his information in the form and context in which it
appears.
23
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