MOUNT MORGAN PLANS

Poverty Bay Herald, Volume LXIV, Issue 19454, 13 October 1937, Page 9

MOUNT MORGAN PLANS

HUGE MINING SCHEME COST OF ABOUT £IOO,OOO A scheme to mine 7,000,000 tons of ore by open cut methods over a period of 20 years was outlined by Mr. Eric Campbell, chairman of directors of Mount Morgan, Limited, Queensland, at the annual meeting in Sydney last week. The equipment for the open cut would cost about £IOO,OOO, spread over the next two or three years, but the saving in costs would exceed the outlay. The board expected to be able to provide the equipment without calling for any more capital. Mr. Campbell said that the 7,000,000 tons should average 4.26dwt. gold and 177 per cent copper a ton. Over the 20 years, an average of 350,000 tons of sulphide ore, containing 74,5500 z. gold and 6195 tons copper should be mined and treated each year, for an estimated average profit of 20s a ton, based on present gold and copper prices. After the scheme had been completed there would remain at least 1921,000 tons of sulphide ore. The scheme referred only to the sulphide ore, Mr. Campbell continued. The oxidised ore had a considerable life on a through-put of 800 tons a day, and he felt that it would continue to yield profits for many years. Drop in Grade of Ore Referring to the year's operations, Mr. Campbell said that, though the tonnage treated was greater by 62,392 tons than in any previous year, it? grade was the lowest treated in any period of 12 months. Despite this, the profit was £32,611 more than in any corresponding period. The drop in grade could safely be regarded -xs temporary.

"It has been demonstrated," Mr. Campbell sajd, "that the mine can make a record profit on a very low head value. This should give shareholders confidence in the ability of the mine to meet adverse fluctuations in economic conditions, together with justified optimism for its ability to earn large profits when the development has enabled more effective control of tonnage and grade."

Mr. Campbell said the problem of treating the' concentrates at Mount Morgan, instead of sending them to the United States, was still being considered. It would appear that a capital expenditure of about £50,000 would be enough to construct the plant, and with higher returns from the mine, this sum would be provided out of the company's resources, without seeking an increase of capital.