Kidston - Discovery of the Kidston Deposit, Queensland, Australia

The Kidston gold discoveries were originally made about 1907, and by 1934, 1.76 Mg (62,000 oz) of gold had been produced from placer and lode mining of higher grade, most¬ly oxidized gold ore. As mining in the lode ore penetrated deeper, costs increased and the world gold price stagnated. The lode or underground production averaged close to 6.9 g/t (0.2 oz per ton) Au for the 201 kt mined. No mining or development took place from 1934 until 1965. Kidston's high grade ores were exhausted by 1934. From 1965 to 1976, exploration had developed 3 Mt of about 3 g/t (0.88 oz per ton) Au. Placer Pacific acquired rights to the property in 1976 and began a geologic and engineering study of the district. It was clear that the deposit had the potential for becom¬ing a large-tonnage, low-grade producer. However, explora¬tion had to discover the tonnage and grade and engineering needed to solve the obstacles of production costs. Bulk material handling problems were addressed by Placer's wide experience in open pit mining, and the increase in work index accompanying deeper ores was handled by Placer's metallurgists. The matter of power for the operation was solved by engineering studies. These showed that power could be generated and brought in economically. The price of gold also increased after 1976, and this helped in the economic analysis. The Kidston discovery since 1976 is really a combination of good exploration geology and careful engineering plan¬ning that overcame the obstacles presented by ore characteris¬tics and the location of the deposit. The attached paper by Harry Mustard is an extract of his honors thesis and explains the deposit geology.