The Discovery and Early History of the Mt Leyshon Gold Deposit, North Queensland

The Mt Leyshon gold deposit produced in excess of three million ounces of gold and considerable silver over a period of approximately 130 years. Most of this production occurred between 1987 and 2001. Mining commenced in 1872, however it was highly likely that Chinese miners were not only removing alluvial gold from the area but were also mining very rich æreefÆ gold. Records for early alluvial and hard rock mining do not exist, however gold production was probably considerable. In the early 1980s Marathon Petroleum (Australia) Ltd (MPAL) joint ventured into the Mt Leyshon area which had been held as a mining lease by Noranda Australia Ltd since 1968. Noranda at that time was concentrating its exploration effort on the Balcooma base metal prospect areas to the north of Charters Towers. In early 1982 MPALs parent company was taken over by US Steel. This led to an opportunity for MPALs Australian management to purchase all tenements and licences (except for coal, oil and gas) which were duly purchased for $US 1 million. At this time MPAL had a remarkable array of gold tenements (many of which were subsequently mined by other companies) and Mt Leyshon was considered to be the highlight. Early æseedÆ capital ($A 3.1 million) was raised with backers being the Bank of America, the NSW Government Superannuation Scheme, Westpac, private individuals and a Queensland grocery chain by the name of æJack the SlasherÆ.