Annual Report on Exploration Activities conducted on MLN 1121 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 called the HYC ('Here's Your Chance') deposit, it only opened as a mine in 1995. MLN1121 encompasses 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, waste rock characterisation and metallurgical sampling has been undertaken on MLN 121. The study was undertaken and reported by Ross Logan and Associates. A total of 3508 meters of reverse circulation and 857 meters of diamond drilling were completed. The completed report with all associated information is contained in Appendix A. Results are still pending from the study.