Australian Report Australian gold exploration declining

The Northern Territory government is considering a legal challenge to the Commonwealth government’s uranium policy. The Australian Labour Party (ALP), which was returned to office in the March 24 election, has refused to permit any new uranium mines to open since it first came to power in 1983. It has, however, allowed the two mines that were already in production to continue operating, and is allowing the export of coproduct uranium from the Olympic Dam mine in South Australia. Other known deposits in Western Australia, the Northern Territory, and Queensland, have been forced to defer development, although some of them are high enough grade to compete in world markets.

Recently, a spokesman for the Northern Territory Chamber of Mines suggested that this restrictive policy may violate the Australian constitution. One of the constitution’s clauses bids the Commonwealth to make any law or regulation that would give any state preference over any other in matters of trade or commerce. The Chamber of Mines said that the present “three mine policy” does discriminate against some states, and is therefore unconstitutional, and suggested that the territorial government should challenge it in the courts. Expedition to Search for Lost Gold Deposit

Tales or legends about rich lost gold deposits are told in many countries. In Australia, the lost Eldorado is “Lassiter’s Reef.”

The story of the reef is better based than most such legends, and Goldsearch Ltd., a small Australian exploration group, is planning an expedition to try to locate it.

The tale begins in the late 1890s when a young prospector named Harold Lassiter claimed that he had found a rich gold-bearing quartz vein in the Petermann Ranges, west of Alice Springs. Samples were said to contain three ounces of gold per ton. However, gold was discovered about the same time in the Kalgoorlie region of Western Australia, a much more accessible area. Consequently, Lassiter was unable to interest anyone in his discovery.

Lassiter persisted in his efforts to raise money for a search expedition for many years. Finally, in 1930, the depression made gold prospecting attractive again, and he interested a Sydney-based syndicate in backing the venture. Unfortunately, conflict developed between Lassiter and his backers. The expedition returned to its base at Alice Springs, leaving Lassiter to continue alone in November, 1930.

He never returned, but his body and diaries were found in desert country between Alice Springs and the Petermann Ranges several months later. The diaries recorded that he had found his lost vein, and staked claims on it in December, 1930. He was short of water, and tried to reach the nearest known source far to the east, but died of thirst in route.

Several unsuccessful attempts have since been made to find the deposit. Goldsearch now proposes to try again although procedures are now much more complex than in Lassiter’s time. The company must negotiate with the aboriginal land owners for permission to explore, as well as getting the usual exploration licences from the government. The details available about Lassiter’s Reef, make it seem likely that he did in fact discover a gold- bearing quartz vein. Even if it is rediscovered, it remains to be shown, of course, whether it is rich enough and large enough to be mined in such a remote location. Diamond Exploration Boom in Australia

The success of the Argyle diamond mine in Western Australia has sparked an exploration boom for diamonds. Argyle has now become the world’s largest single producer, after a detailed exploration program starting in the 1970s located the source of alluvial diamonds that had been known for many years.

Alluvial diamonds, whose bedrock sources are not known, occur in Western Australia and New South Wales. Many exploration companies are exploring these areas. The activity seems to be centred in northern New South Wales, where there are several alluvial diamond occurrences. However, work is also going on in most other states and the Northern Territory.

Most projects are at a relatively early stage, but diamond-bearing intrusive pipes and dykes have been found in at least three areas. These are being tested to determine whether they are rich enough to be mined. Bloom off Gold Exploration

The triple problems of falling gold prices, environmental concerns, and the introduction of the gold tax in 1991 are causing a sharp reduction in exploration for new gold deposits. This is causing concern in both the industry and governments, especially in the Northern territory and Western Australia, where gold mining forms a significant part of the total economy.

Until recently, economic conditions in Australia favored gold exploration. The low level of the Australian dollar made for a high gold price in local currency. The environmental lobby was much less active than it has since become. Also, profits from gold mining were exempt from taxation; this important factor is unique to Australia, and faces potential gold mine developers with a new situation.

For example, the Northern Territory Chamber of Mines has studied the operation cost data for the seven large gold mines operating in the territory. They concluded that only one of these would have been opened up if a gold tax had been in effect at the time. They also pointed out that it has been almost impossible to raise new risk capital for exploration since the October, 1987, stock market crash, and that gold exploration has held up well because it was supported by tax- free earnings from existing producers. However, these will cease at the end of 1990.

The Chamber of Mines’ concern seems to be well-based. Statistics recently released by the Bureau of Mineral Resource suggest that funds spent on gold exploration were substantially down so far in 1990, and that the decline is continuing.