Thank you chairman, good afternoon ladies and gentlemen. In my talk this afternoon I intend to cover a brief history, some of the recent experiences and an overview of the McArthur River project. If we consider the themes of this forum, Obstacles and Opportunities, I can confidently say that in attempting to develop the McArthur River deposit Mount Isa Mines Limited (MIM) must have encountered almost every obstacle that can be imagined. However the large size and the high grade of the deposit has ensured an opportunity, from which it is very difficult to walk away from.
The McArthur River Here's Your Chance (HYC) Deposit is located in the Northern Territory of Australia. It was discovered by Mount Isa Mines Limited geologists in 1955 and is one of the largest known sedimentary stratiform zinc-lead-silver deposits. The deposit has been the subject of numerous investigations and considerable expenditure culminating in a major feasibility study in 1979. There were a number of factors which prevented development, these being the size of the project, the fine grained mineralization, geographical location, market, social and capital cost. The latter had been estimated in the 1979 study to be $800 million at that time.