Project description Canning Resources Pty Limited, a wholly-owned subsidiary of Rio Tinto Limited, completed a pre-feasability study into the proposed development of the Kintyre uranium resource in the North West of Western Australia. This world-class uranium resource was discovered in 1985 by Rio Tinto's exploration subsidiary, Rio Tinto Exploration Pty Limited (then known as CRA Exploration). The discovery came after surface investigation of a number of radiometric anomalies detected during airborne surveys of Rio Tinto leases in the Rudall region. Despite the deposits having a very small surface expression, ground surveys and drilling confirmed the presence of a significant ore body at Kintyre. Rio Tinto Exploration is now responsible for the deposit.
Location The Kintyre Uranium Project lies on the edge of the Great Sandy Desert in the Eastern Pilbara region of Western Australia, about 1,200 kilometres NNE of Perth. The Kintyre Project area of 6 sq km is adjacent to the northern boundary of the Rudall River National Park, which was designated in 1977 to preserve and demonstrate an arid desert dry river ecosystem. With an area of about 15,000 square kilometres, Rudall River National Park is the largest national park in Western Australia, and the second largest in Australia.
	Estimated Ore Resource A resource of 36,000t of U3O8 has been estimated in the immediate Kintyre area. This includes the Kintyre, Whale and Pioneer ore deposits. Drilling has identified an indicated resource of 24,000t of U3O8 and more than 11,000 tonnes of inferred resources at a 0.5kg/t U3O8 cut off grade. Drilling had begun to upgrade these resources and prove up additional reserves. The potential value of the associated bismuth, gold, platinum and palladium mineralisation has yet to be assessed.
The Development Proposal The Kintyre Project involves a mine and associated treatment facilities at the Kintyre site with an initial production output of 1,200tpa of U3O8. Further studies will evaluate the extension of production from the existing known resource and other confirmed reserves in the immediate area. Technical Aspects Initially, the project will include mining of the Kintyre, Whale and deposits and the stockpiling of ore prior to sorting and treatment in a hydrometallurgical recovery plant. The ore will be mined using conventional open pit methods. Metallurgical tests have confirmed that the ore reacts favourably to an acid leach process. In addition, the vein-type ore is readily upgraded to radiometric sorting and gravimetric methods, which reduces the material input to the hydro metallurgical plant. The result is a significant reduction in equipment size and reagent consumption needed for processing, with consequent reduction in waste, capital and operating costs. Support Facilities Only a small area is needed for mining, processing and the storage of waste and water - about 4 square kilometres. Infrastructure includes an accommodation village, power supply, workshops, warehouse, airstrip and an upgraded access road. There is an ample supply of good quality underground water. The total project will occupy less than 6 square kilometres. Construction of the mine and infrastructure facilities is expected to take 15 to 18 months and will be carried out by contractors. The construction workforce will number about 200 people, with 70 of these dedicated to the development of the mine. All workers engaged in the project construction will be housed in transportable accommodation, with excellent on-site amenities and recreational facilities provided.

Once the mine has been commissioned and production has started, a permanent workforce of 150 to 200 will be needed for the first two years of operation. After this, the number will be about 100 people. A permanent accommodation village will be located two to three kilometres from the mine site. When mining commences, it is envisged that work will be on a 14 days on, 7 days off basis, with personnel commuting from Perth to the mine site by aircraft. Timing It was originally envisaged that the Kintyre Uranium Project could be in production late in 2000. However, in in 1997 the project was slowed down due to low international uranium prices and other outstanding approval requirements, then in 1998 Rio Tinto Exploration put it under care and maintenance pending improvement in the uranium market. Positive Impact of Development The proposed development at Kintyre will add significantly to the services available in the region. Kintyre will provide electronic communications, medical services, improved road access, and all-weather air service and other reliable, modern facilities. These will be available to the area without the stresses that might be created by an 'open' town in such a remote region. All services at the Kintyre site will be strictly controlled and supervised by Rio Tinto. Increased access to the region will be properly managed.