The Osborne copper-gold deposit (within the Trough Tank project area) is located in the Cloncurry Shire about 195 kilometres south-east of Mount Isa. It is hosted by Proterozoic metasediments of the Eastern succession of the Mount Isa Inlier. The deposit is overlain by 25-40 metres of Mesozoic cover, so it represents a true "blind target". Placer Exploration has 100% outright ownership of the property, having purchased the remaining 10% interest in the property from Shell in early 1993. Intensive exploration, both surface and via drilling at Osborne, has taken place since 1985, when CSR Limited Mineral Exploration and Development Group (acquired by Placer in 1988) entered into a joint venture with Billiton Minerals. Exploration effort from 1985 to June 1988 outlined a 20 kilometre strike length of magnetic horizons, in what was termed the North-East, Central and Southern anomalies, which were drilled with weak indications of copper-gold mineralization in the North-East anomaly. During the later half of 1989, four core holes were drilled into the shallower northern partofthe North-East anomalywhere previous drilling had outlined economic intersections of mineralization. These holes encountered high-grade copper-gold mineralization confirming the potential for an economic deposit to be hosted within the ironstone sequence. Further drilling involving over 400 holes (100 kilometres of drilling) has brought the deposit up to its present resource status.
The current resource inventory is 36 million tonnes grading 2.0% copper and 1.0 grams pertonne gold and includes a high-grade zone of 13 million tonnes grading 3.6% copper and 1.5 grams per tonne gold. The discovery of this potential economic mineralization resulted from a persistent exploration effort based on indications that a large mineralizing system existed within a sequence of ironstones.