IN 1904-5 diamond drilling operations in the Mount Morgan mine proved the presence of some millions of tons of rich copper-gold ore, averaging about 45%to 50%silica and 22%Fe as sulphide. To smelt this ore in blast furnaces, without previous concentration, large quantities of basic flux were required. Unlimited quantities of cheap limestone were available at Marmor, on the GladstoneRockhampton railway, 50 miles from Mount Morgan, but the supply of iron flux was a more difficult problem. Smelting Operations started with one furnace in January, 1906, using as flux low-grade sulphide ore from the mine, containing very little silica. When the second furnace was blown in this was supplemented by ironstone from small deposits in the immediate district. It was recognized that these sources of supply would be insufficient to keep the full plant going after the third furnace had been blown in. Accordingly, the deposits at Kabra and Mount Etna were opened, neither of which proved capable of supplying the quantity required-viz., 1000 tons per week. Negotiations were meanwhile being conducted with the Marble Island Iron and Limestone Co. to obtain the right to mine at Iron Island, where a sufficiently large deposit was known to exist. Shipments from this source commenced in January, 1907, and ceased at the end of July of this year, when the metallic flux from...