Bhp Announces Qld Minerals Find

Sydney Morning Herald

Friday December 20, 1991

By BRUCE HEXTALL Resources Writer

BHP Minerals has added to a series of significant discoveries in central Queensland in recent months by announcing a lead, zinc and silver discovery 140 kilometres south of Cloncurry.

The company said yesterday that a resource exceeding 20 million tonnes of ore, containing 10.2 per cent lead, 3.3 per cent zinc and 470 grams per tonne silver, had been identified after the completion of a 50-hole drilling program.

Initial mineralisation indications were discovered in November last year after a five-hole drilling program at the deposit, now known as Cannington.

The details released yesterday did not include information about the depth of the discovery or whether the orebody had been fully defined. A spokesman said the company had decided not to release any further details at this stage

However, a pre-feasibility study was under way and would continue well into next year.

Decisions on further detailed evaluation of developing the orebody would depend on the outcome of the pre-feasibility study.

Analysts said the economics of the project would depend largely on the depth of the deposit which would determine whether it could be developed as an open-cut mine.

The grades encountered to date would be sufficient to allow open-cut mining, but a higher zinc grade would greatly enhance the discovery's economics.

Because of Cloncurry's relative closeness to Mt Isa, the economics would be enhanced due to the existence of infrastructure, including rail linkages.

Last week, Western Mining Corporation said it had made a significant gold-copper discovery about 40 kilometres north-west of Cloncurry, although more drilling was needed before the potential of the find could be assessed.

Several other discoveries have also been made in the region during the past year.

© 1991 Sydney Morning Herald

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