Bonanza For Qld Mines

Press, Volume CX, Issue 32392, 3 September 1970, Page 14

Bonanza For Qld Mines

(N.Z. Press Association-r-Copyright)

SYDNEY, September 2

Queensland Mines, Ltd, has announced that drilling at the Narbalek site, 170 miles east of Darwin, had given indicated reserves of 55,000 short tons of uranium oxide, at an average grade of 5401 b of uranium oxide per ton of ore.

The company’s chairman (Mr E. E. Hudson) said that mining operations could start at Nabarlek after the middle of next year, provided contracts were available for the sale of uranium oxide. The ore body is mineable by open cut methods, and mineralised at the surface by high grade disseminated pitchblende, beginning at 4ft and extending to 16ft below the surface.

Mining costs would be “small per ton of ore” and were of “no per pound of uranium,” Mr Hudson said.

The area is accessible by road to Darwin during the dry season but would not be accessible’ without further road construction during the wet season.

The company had been discussing possible uranium sales over the last month but could not comment on these negotiations.

Mr Hudson added that treatment costs would be “a small number of cents” per lb. This means that if the company can negotiate sales contracts, its profit margins on mining the deposit would be very large. The proven reserves are more than the total Australian reserves so far known—and the limits of the find

have not yet been fully defined.

At present world prices of about $6.25 per lb, 55,000 short tons of uranium oxide is worth about s6Bom. Even in normal times, a find of this size would have sent the share price zooming, but today its significance is even greater. Uranium is an essential ingredient in the production of nuclear power, and only last year scientists were forecasting that there would be a world shortage of the mineral unless new discoveries were made.

Pressure On Sterling

(N.Z. Press Assn.—Copyright) LONDON, Sept 1. Renewed speculation that Britain’s bank rate might be raised hit the foreign exchange market tonight after sterling’s dollar rate had sunk to its lowest for a year. Although sterling is never at its best at this time of year, it is now having to face added worries. These include the effect on industry of recent strikes and fears that this and any switching out of sterling will adversely affect the balance of payments position, on the state of which overseas holders of currency place such great emphasis. Government spokesmen are going out of their way to stress that the position is not as serious as some think it looks and there are indications that the authorities are not worried by the present slump and are quite satisfied that they can reverse it when it suits them.