Copper Captivates Cloncurry

Sydney Morning Herald

Tuesday June 15, 1993

By BRUCE HEXTALL Resources Writer

Rationalisation of mineral prospect positions in Queensland's Cloncurry district, acknowledged as one of Australia's most prospective gold/copper provinces, is gathering pace.

Yesterday, resources junior West Australian Metals NL signed an option agreement to deliver it 100 per cent of the Hidden Treasure copper deposit. MIM Holdings Ltd also announced it had increased its land position in the area by striking a deal with BHP Minerals to acquire the Eloise copper/gold deposit.

West Australian Metals, which to date has mainly concentrated its search for copper and gold in the west, views Hidden Treasure, 100 km north east of Cloncurry, as a potentially highly profitable prospect for a company its size

The company's chairman, Mr Paul Loudon, said the rich grade of the oxidised copper ore that occurred near surface, meant a heap leaching operation could be quickly brought into operation.

This gave West Australian Metals the potential to earn between $8 million and $10 million in a 12-month period, providing the company with a solid earnings base. Mr Loudon said the potential existed to expand the operation at depth as the local farming family that held the leases had only scratched the surface.

During the three years about $2 million of oxide copper ore has been extracted from a small open-cut pit down to a depth of 23 metres.

However, mining ceased late last year when MIM, which had toll treated the ore, stopped all local toll treating, declaring such operations as being unprofitable.

MIM's managing director, Mr Norman Fussell, said his company's decision to sign the option agreement to acquire the Eloise copper/gold deposit, 68 km south east of Cloncurry, was part of MIM's strategy of seeking additional copper and gold ore sources in the Mount Isa region.

MIM missed out in the initial rush for copper/gold properties in the Cloncurry district, sparked by the world-class Ernest Henry discovery made by Western Mining Corp. MIM has also moved to acquire an interest in this prospect, which is the subject of a legal dispute over the tenement ownership

"It may be that Eloise has the potential to be developed as an underground mine to provide copper concentrate for smelting at MIM's Mount Isa operations," Mr Fussell said.

MIM will test drill the deposit in the next six months before it is decided in mid-December whether to finalise the acquisition.

The agreement on the deposit, covering four exploration permits, obliges MIM to pay an initial $500 000 to BHP and a further $14.5 million if it decides to proceed.

© 1993 Sydney Morning Herald

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