Bhp Uncovers Big Minerals Deposit

The Age

Friday December 20, 1991

BARRY FitzGERALD

BHP Minerals was able yesterday to lift some of the gloom caused by lower iron-ore and coal prices by announcing a big silver and lead/ zinc discovery in north-west Queensland.

The group's Cannington discovery, 140 kilometres south of Cloncurry, builds the reputation of the Mt Isa-Cloncurry region as a major world metals province.

Apart from the fabulous Mt Isa mine and the nearby Hilton operation, the region also contains the huge Century (zinc-lead) find of CRA, the Lady Loretta (zinc-lead) deposits of Pancontinental, the Dugald River (zinc-lead) deposit of Pasminco/CRA, the Fort Constantine (copper-gold) find of WMC and the Osborne (copper-gold) discovery of Placer Pacific.

BHP Minerals said the ``identified" resource at Cannington was more than 20 million tonnes of ore containing 10.2 per cent lead, 3.3 per cent zinc and and 470 grams a tonne silver.

The company would not provide any further details, although it did say that a pre-feasibility study was under way.

``Decisions on further detailed evaluation of the economics of developing the ore body will depend on the outcome of the pre-feasibility program." Analysts said that given BHP's conservative nature, it was likely that Cannington was substantially bigger than the 20 million tonne estimate BHP Minerals used yesterday.

But they also noted that the mix of metals at Cannington was not particularly favorable.

Zinc has more than twice the value of lead, so the preference is for deposits where the zinc count dominates.

That is not the case at Cannington, with its 10.2 per cent lead and 3.3 per cent zinc. The silver grade is nice and high at 15 ounces or $74 a tonne.

BHP Minerals said earlier exploration had identified a high-grade but small copper and gold deposit at Eloise, about 60 kilometres from Cloncurry.

Its size means it is not an economic proposition.

© 1991 The Age

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