There were no alarms and no surprises at BHP Billiton's Melville project update at the recent Yorkton Chamber of Commerce Luncheon. Work at the site is continuing, with the project in the survey phase. Chris Ryder, VP of External Affairs (pictured) and John Kilroe, Senior Manager of Land and Exploration provided the update.
While there was nothing to announce at the update, BHP Billiton assured people that the results of the surveys have been very promising at the present time. Ryder says that while there is nothing to announce, and it remains in the survey phase, they want people to be as optimistic as they are about the potential of the area.
He also says that the future of the Melville project would look very similar to the Jansen project if all goes as planned.
The Jansen project will see 2,000 people employed during the construction phase and 1,000 during operation.
Kilroe admits the surveys have gone slower than anticipated, since the wet weather made it more difficult to drill than it would be otherwise. Where the plan saw nine holes being drilled at this point, this year there have been three. The company has also had to deal with unexpected setbacks from the weather, such as the drill rig sinking in the wet ground at one point.
In spite of the difficulty, the results are promising, and Kilroe suggests that if the results are consistent with what has been seen thus far, Melville could be the next major project for BHP after Jansen.
The next phase of surveys will begin in early October, and last until March. After these tests are complete, there will be a better idea of the future of the project. So far, $35 million has been spent at Melville, and $70 million more is to be spent. Kilroe says this is evidence of the confidence BHP Billiton has in the future of the site.
"What I can say at this time is that we have not done anything to discourage us. The seismic surveys have been very pleasing, the holes we have drilled have been quite pleasing, and we hope that the remainder of the holes we drill will be encouraging as well. So, no bad news, but I can't stand here and definitively say that Melville Project is a fantastic project and we're going to proceed with it," Kilroe concludes.
