Annual Report on Exploration Activities conducted on MLN 1122 at the McArthur River Mine 2011 to 2012

Abstract

The McArthur River mine is one of the world's largest zinc, lead and silver mines, situated about 70 kilometers southwest of Borroloola, near the Gulf of Carpentaria in the Northern Territory. It is operated by McArthur River Mining (MRM), a subsidiary of the Swiss mining company Xstrata. Although discovered in the 1950s, when it was originally named the HYC ('Here's Your Chance') deposit, mining operations commenced in 1995. MLN 1122 encompasses MLN 1121 which contains the main pit area of the McArthur River Mine and was granted in 1993. Initially an underground mining operation, the mine was been converted to open-cut 2006. The sediment hosted stratiform HYC deposit is approximately 1.5km long and 1.0km wide with an average thickness of 55m. The HYC deposit has similarities with ore-bodies at Mount Isa, Queensland. During the 2011 - 2012 reporting period, no exploration work has been undertaken on the MLN. Normal mining operations took place throughout the year with most of MLN 1122 being utilised for mining operations infrastructure and mine access routes.