The Role of Geology and Exploration Within the Mining Cycle at the Osborne Mine, NW Queensland

The Osborne Mine commenced production from an open pit in December 1994 with the first ore being hauled from underground one year later. Currently all ore is hauled up a decline by trucks until the shaft system is commissioned in early-1998. The mine is hosted within a multiply deformed and complex sequence of metamorphic, igneous and metasomatic rocks of mid Proterozoic age that are concealed beneath 20-40 metres of Mesozoic sedimentary cover. Epigenetic and largely hypogene copper - gold mineralisation occurs in a close spatial relationship with quartz - magnetite ironstones and is an important example of a significant mineralisation style in the Mt Isa inlier. Life of mine concentrator production, to year end 1997, totals 3.2 Mt of ore at 3.40 per cent Cu and 1.13 g/t Au. Total metal produced was 97 000 tonnes of copper and 2900 Kg of gold (95 600 oz) from some 348 000 tonnes of dry concentrates averaging 28.01 per cent Cu and 6.99 g/t Au. At the start of 1998 OsborneÆs total measured and indicated resource was stated at 11.38 Mt at 3.24 per cent Cu and 1.21 g/t Au with an ore reserve of 11.42 Mt at 2.90 per cent Cu and 1.09 g/t Au. Exploration efforts in and around the mine have been increased since 1996 and have resulted in an early success, with a 28 per cent increase in ore reserves since mine start-up, and the establishment of a 1.5 Mt inferred resource open to depth. During 1997 the performance of the concentrator has exceeded expectations with throughput having been increased to 1.45 Mt per annum. The Mining Cycle at Osborne has proceeded from discovery through feasibility and is currently seen to be in the latter part of the development stage and/or the early part of an expansion stage. This paper will describe the role of geology and exploration within these stages and will highlight how a number of key interpretations and decisions based on geology have both favourably and unfavourably affected the project.