29Metals announces suspension of Capricorn Copper operations

29Metals Limited (ASX: $29M) has announced the suspension of operations at Capricorn Copper due to extended rainfall impacting the mining operations and future restart plans. The decision to suspend operations is a result of elevated water levels at the beginning of the wet season and sustained rainfall since late January, which has offset the successes in reducing water levels through mechanical evaporation and authorized releases of treated water within prescribed limits. The suspension is aimed at protecting the people, managing environmental responsibilities, conserving cash, and retaining value.

Executive Commentary on Capricorn Copper operations suspension

The decision to suspend operations has not been taken lightly, particularly because of the impact it will have on our team at Capricorn Copper who have worked tirelessly following the extreme weather event in March 2023, as well as the local community, our contractors, and the businesses across the region and the state of Queensland that support the site. Unfortunately, the combination of elevated water levels at the beginning of the wet season and the sustained rainfall since late January this year has more than offset our successes reducing water levels through mechanical evaporation and authorized releases of treated water within prescribed limits. The duration of the suspension will be dependent on a number of factors, including reducing the water levels held on site and securing the regulatory approvals required to set Capricorn Copper on a sustainable footing. 29Metals' objective will be to ensure the period of suspension is as short as possible. Planning for the restart will start almost immediately and we will use this pause in operations to build back stronger and set Capricorn Copper up for the future. During the suspension, 29Metals will continue to progress the growth potential at Capricorn Copper, including the targeted exploration activity currently underway to test the new mineralized zone identified last year east of the Mammoth orebody, and evaluation of the potential to produce a cobalt product. There will be a significant reduction in headcount and activity at site as we ramp down mining and milling activity over the next approximately six weeks. Activities during the suspension will focus on managing the water inventory (and related compliance activities) and preparing the asset for a future restart.

Summary of Capricorn Copper operations suspension and future outlook

29Metals has suspended operations at Capricorn Copper due to extended rainfall impacting the mining operations and future restart plans. The company aims to protect its people, manage environmental responsibilities, conserve cash, and retain value during this period. The duration of the suspension will depend on reducing the water levels held on site and securing the regulatory approvals required to set Capricorn Copper on a sustainable footing. 29Metals' objective is to ensure the period of suspension is as short as possible and to use this pause in operations to build back stronger and set Capricorn Copper up for the future. The company will continue to progress the growth potential at Capricorn Copper during the suspension, including targeted exploration activity and evaluation of the potential to produce a cobalt product. 29Metals is committed to restarting operations as soon as practicable to realize the potential of Capricorn Copper, with its substantial mineral endowment, established infrastructure, and organic growth opportunities. The company will provide updates regarding restart planning and ongoing activities in the quarterly report for the March quarter expected to be released on 23 April 2024.