Mr BALDWIN - 1997-04-24
Is it correct that a mining company is to undertake a feasibility study into proposals to mine a world-class mineral deposit near Batchelor?
ANSWER
Mr Speaker, I am very pleased to confirm that Compass Resources has advised the Australian Stock Exchange that it will proceed with a full feasibility study into the Browns ore body near Batchelor. Compass Resources, the former mineral arm of Esso, was floated separately in 1992 in a similar fashion to the creation of Acacia Resources from Shell. Compass is the operator and it holds 75% equity in the Browns project which consists of 12 mining leases in the Mt Finch area. The leases were bought from CRA in 1993. I shall table a map which sets out the resources.
CRA has been examining the potential of lead deposits in the area. Compass had been examining the potential of cobalt in the resource. Compass believes that it is a world-class cobalt deposit with significant amounts of copper, lead and nickel. The company states:
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The Browns measured and indicated resource currently stands at 37 million tonnes of ore, averaging 0.1%
cobalt, 0.4% copper, 3.9% lead and 0.09% nickel. High-grade zones occur within the resource and a recent
drilling campaign is likely to lift the copper grade.
Compass puts the estimated value of the resource at $3500m in the ground, using prices per pound of $US1 for copper, $US14 for cobalt, $US3 for nickel and $US0.35 for lead. The full feasibility study will take about 9 months and will examine the metallurgy and processing techniques for the project. I have been advised that a project team has been established to progress the Browns project to a decision about developing the mine as soon as possible. It is worth noting that it would be the first proposal to mine cobalt and nickel in the Territory. It would expand our resource base quite significantly. For the information of members, cobalt is used in the chemical, magnet and powder metallurgical industries, principally in heat and corrosive-resistant materials, high-strength materials and permanent magnets. It is also used for electrical equipment and supplies, for machine tools in construction and mining, for paint, for ceramics and for aircraft and surface engine parts.
Obviously, while it is too early yet to state definitely that the mine will go ahead, the report to the Stock Exchange is very encouraging. I am certainly very optimistic about the project's prospects. This good news is a result of very aggressive policies by this government to encourage as much activity in the mining area as possible. I table a copy of the announcement to the Stock Exchange.
Page 2064
ANSWER
Mr Speaker, I am very pleased to confirm that Compass Resources has advised the Australian Stock Exchange that it will proceed with a full feasibility study into the Browns ore body near Batchelor. Compass Resources, the former mineral arm of Esso, was floated separately in 1992 in a similar fashion to the creation of Acacia Resources from Shell. Compass is the operator and it holds 75% equity in the Browns project which consists of 12 mining leases in the Mt Finch area. The leases were bought from CRA in 1993. I shall table a map which sets out the resources.
CRA has been examining the potential of lead deposits in the area. Compass had been examining the potential of cobalt in the resource. Compass believes that it is a world-class cobalt deposit with significant amounts of copper, lead and nickel. The company states:
Page 2063
The Browns measured and indicated resource currently stands at 37 million tonnes of ore, averaging 0.1%
cobalt, 0.4% copper, 3.9% lead and 0.09% nickel. High-grade zones occur within the resource and a recent
drilling campaign is likely to lift the copper grade.
Compass puts the estimated value of the resource at $3500m in the ground, using prices per pound of $US1 for copper, $US14 for cobalt, $US3 for nickel and $US0.35 for lead. The full feasibility study will take about 9 months and will examine the metallurgy and processing techniques for the project. I have been advised that a project team has been established to progress the Browns project to a decision about developing the mine as soon as possible. It is worth noting that it would be the first proposal to mine cobalt and nickel in the Territory. It would expand our resource base quite significantly. For the information of members, cobalt is used in the chemical, magnet and powder metallurgical industries, principally in heat and corrosive-resistant materials, high-strength materials and permanent magnets. It is also used for electrical equipment and supplies, for machine tools in construction and mining, for paint, for ceramics and for aircraft and surface engine parts.
Obviously, while it is too early yet to state definitely that the mine will go ahead, the report to the Stock Exchange is very encouraging. I am certainly very optimistic about the project's prospects. This good news is a result of very aggressive policies by this government to encourage as much activity in the mining area as possible. I table a copy of the announcement to the Stock Exchange.
Page 2064
Last updated: 09 Aug 2016