18. Discovery of the Ertsberg East Copper-Gold Deposit, Irian Jaya, Indonesia

The Ertsberg East discovery was announced by Freeport in 1979 with proven geological reserves of 45 Mt (49.6 million tons) with a grade of 2.65% copper and recoverable gold values. This recently discovered deposit is one of a cluster of skarn-type copper occurrences found within the limits of Freeport Indonesia's mining con- cession at an elevation of about 3600 m (12,000 ft) in the extremely rugged Jaya Wijaya Mountains of Irian Jaya, the Indonesian half of the island of New Guinea. The Ertsberg East lies about 1.5 km (0.9 miles) east of the Ertsberg ore body, which is also known by the Indonesian name "Gunung Bijih" or "ore mountain." For general background, the original Ertsberg ore body was first discovered by the Dutch geologist Jacques Dozy in 1938 while on a mountain climbing expedition. It was mapped and sampled by Forbes Wilson and Del Flint after a two-week harrowing trek into the mountains from the coastal swamps. A drilling program in 1967- 1968 established that the Ertsberg was a viable mining venture, containing approximately 33 Mt (36.4 million tons) of skarn-type copper ore. The deposit averaged 2.5% copper, with significant values in gold and silver. The first shipment of copper concentrates was made in December 1972, following a capital investment of $200 million. Following the routine production of ore from this deposit, it became necessary to consider additional sources of ore to extend the life of the mining operation. An exploration program was thus started with the initial objective of finding shallow or surface ores which could be blended with the material being mined at Ertsberg. Project geologist Frank Nelson was transferred from Freeport Exploration Co. to the Freeport Indonesia organization at the Ertsberg mine. However, the exploration work was the functional responsibility of Freeport Exploration. Del Flint had overall responsibility for the program from the Reno headquarters office and provided liaison with management in the USA and Indonesia.