Aberfoyles Case History: Survival and Diversification through Exploration

The company was formed in 1926 to exploit tin bearing veins adjacent to Aberfoyle Creek in north-east Tasmania. In 1928 a 923ft tunnel was driven to explore and develop the mine 150ft below surface. This put the company on a path to become Australia's second largest tin producer by the late 1960's. Recently, Aberfoyle Resources Limited completed a 1.1km tunnel to access the major Hellyer zinc, silver, lead orebody at 300m depth. Production at 1 million tonnes a year is likely, and will make the company a significant world supplier of zinc by the late 1980's. The intervening 20 year history of survival and diversification illustrates principles of mineral exploration which proved valid in the Australian context. The objective of exploration should be to develop mines which can survive rigorous competition and downturns in commodity prices. Such mines will be based on orebodies with many of the following characteristics described by Richards (1986).