EL 8189 Second annual report ending 6 October 2005

Abstract

EL 8189 is situated within the highly prospective Proterozoic McArthur Basin, host to the world class McArthur River (HYC) zinc-lead-silver deposit. The application for EL 8189 was first submitted by Mount Isa Mines Ltd on 28th April 1993 over MLN's 1121, 1122, 1123 and 1124 held by McArthur River Mining Pty Ltd. The application was lodged because of concerns over: i) The adoption of the geodetic datum GDA94 leaving a 200m wide vacant strip of land between the Mineral Leases and adjoining MIM exploration licence EL 807 and ii) The validity of the Mineral leases post Mabo High Court decision in 1992. EL 8189 encompasses the entire mining and mineral leases associated with the McArthur River Mining Pty Ltd zinc-lead-silver mine. Access is via the adjacent Carpentaria Highway, McArthur River airport, mine access roads and formed station tracks.All activities in the reporting period centred on site investigations for the proposed expansion of the McArthur River zinc-lead deposit from the existing underground mine to a large scale open cut operation which would require significant civil works prior to the commencement of mining. This would include the diversion of the McArthur River and Barney Creek, the construction of a levee around the perimeter to retain flood waters during a 1 in 500 year event and the construction of an emplacement facility to contain waste rock. These investigations were undertaken by Golders Associates on behalf of civil designers, Kellogg, Browning and Root (KBR) and Environment Engineers (URS) to assist in the process of finalising the Environmental Impact Study, and comprised geotechnical, geophysical and hydrogeological studies.