COMMERCIAL B.H.P. to explore copper find

Press, Volume CXIV, Issue 33464, 20 February 1974, Page 15

COMMERCIAL B.H.P. to explore copper find

GV.Z.P.-t.-Reuter— Copyright I SYDNEY, February 19. The Broken Hill Proprietary Company, Ltd, has reached agreement to acquire a controlling interest in two listed mining companies. Triako .Mines, N.L. and Buka Minerals, N.L. The agreement which will give B.H.P. an interest in (he Yandera copper prospect in Papua-New Guinea, is subject to the approval of Buka and Triako’s shareholders.

Triako and Buka share thei right to earn a 61 per cent! interest in the Yandera prospect. which is covered byi prospecting authorities held 1

■i by Kennco Explorations I i(Australia) Pty, Ltd. Under the arrangement between B.H.P. the Triako'•Buka consortium Dampier •

Mining Company, Ltd. is to. spend up to s2m on an exploration programme in the Yandera area and in other areas of interest held by the Consortium. Dampier is a wholly-owned subsidiary of B.H.P.

In return Dampier Mining will be granted the right to acquire a controlling interest in Triako and Buka. The total consideration for the acquisition would be more than slsm the chairman of Buka and Triako (Mr 1. Shulman) said. Mr Shulman said that it had been arranged under the agreement that the development of Triako’s and Buka’s more promising prospects would be expedited and that the shareholders could expect to receive an earlier return on their investment than would otherwise be the case.

A feasibility' study of the Yandera prospect could now be completed within two years.

Drilling programme

The Triako-Buka consortium announced late last year that geological exploration and assay results from two drill holes indicated the existence of a major structural zone along which prophyritic intrusions and sulphide copper mineralisation were localised. Mr Shulman was enthusiastic about the prospect and said that 20 major companies had shown interest in it.

An extensive drilling programme would be required at the Yandera prospect in order to confirm the indications obtained from extensive surface exploration and the two drill holes.

The Papua New Guinea Government plans to build a road from Madang, which should pass close to the prospect, and a hydro-elec-tric power station is also planned for the area. Mr Shulman said that the Governments policy statements were reasonable and fair and the consortium had every confidence that a satisfactory arrangement would' be made.