DISCOVERY V I C T O R I A ’ S
E A R T H
R E S O U R C E S
J O U R N A L
A U G U S T
1 9 9 8
VARIAN AD HERE (MAY ‘98 issue)
INSIDE THIS ISSUE •
MINERVA GAS PROJECT
•
NEW BENDIGO UNDERWAY
•
BALLARAT GOLD EXPANDS
DISCOVERY V I C T O R I A’ S
E A RT H
R E S O U R C E S
J O U R N A L
A U G U S T
1 9 9 8
contents MINERVA GAS PROJECT
2
Offshore gas could launch a new industry.
BALLARAT GOLD SPREADS ITS WINGS
6
Major moves are underway on the historic Ballarat gold fields.
RUBBISH GAS CUTS GREENHOUSE EMISSIONS
COMMERCIAL HYDRAULICS AD HERE (NOV ‘97 issue)
8
Old rubbish tips help produce electricity and cut greenhouse gas.
RUBY GETS A FINAL POLISH
9
A new look for an old quarry.
MORE GOOD NEWS FOR EXPLORERS
10
cover picture
New drilling at Mt Wellington produces good results.
NEW BENDIGO HEADS DOWN
17
Work starts to mine deep orebodies beneath the city of Bendigo.
VIMP WILL DIG DEEPER INTO THE STATE’S RESOURCES
Petroleum exploration throughout Victoria will be significantly enhanced by the State Government’s $7 million extension of the Victorian Initiative for Minerals and Petroleum. While mineral exploration was the focus of the initial stages of the VIMP program, the emphasis has now swung to the petroleum industry with extensive new seismic surveys scheduled for the highly productive Gippsland Basin region while much of the existing seismic data will be also be reprocessed. Based on the early impact of the VIMP program, the latest extension is likely to stimulate a sharp rise in petroleum exploration in Victoria, hopefully leading to new discoveries.
19
New search programs are planned for the VIMP program.
IT’S BOOM TIME IN THE BASIN
23
The Murray Basin is emerging as a world-class mineral sands region.
INDUSTRY LEGEND RETIRES
25
John Reynolds calls it a day at the VCM.
NEW GRAMPIANS MAPPING UNLOCKS OLD SECRETS
26
Recent survey work by GSV may lead to new exploration targets.
NEW DATA RELEASES
28
MPV releases four new data sets for explorers.
regular features KEY ROLE FOR NEW INDUSTRY BOARD
5
DISCLAIMER: This publication may be of assistance to you, but the State of Victoria and its officers do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.
Pat McNamara reveals plans for a new consultive body.
INDUSTRY NEWS
12
What’s new in the Victorian industry.
RESOURCES MAP
Minerals and Petroleum Victoria acknowledges contributions made by private enterprise. Acceptance of these contributions, however, does not endorse or imply endorsement by the Department of Natural Resources and Environment of any product or service offered by the contributors.
14
A visual review of Victoria’s mineral, oil and gas resources.
LICENCE REVIEW
16
All photographs, maps, charts, tables and written information in this publication are copyright under the Copyright Act and may not be reproduced by any process whatsoever without the written permission of the Department of Natural Resources and Environment.
The latest on exploration licences.
MPV REFOCUSES ON MAIN GOAL
18
David Lea details VIMP strategy for the next three years.
© Minerals and Petroleum Victoria 1998.
Published quarterly on behalf of the Minerals and Petroleum Division of the Department of Natural Resources & Environment by RBA Communications, 86 Cooloongatta Rd, Camberwell Vic 3124 Tel: (03) 9889 1094 Fax: (03) 9889 9997 EMail:
[email protected] Editor: Ian Howarth Advertising: Watts Media, 1396 Malvern Rd, Tooronga, Vic 3146 Tel: (03) 9822 4461 Fax: (03) 9822 9192. Distribution enquires to Chandri Corray, Manager Marketing Development, Minerals and Petroleum Division, Department of Natural Resources & Environment, Level 15, 8 Nicholson St, East Melbourne, Vic, 3002, Tel: (03) 9637 8532 Fax: (03) 9637 8118. Website:
Australia Post Print Publication PP349472/00128. ISSN Number 13282409.
1
INDUSTRY DEVELOPMENTS
Minerva gas to fertilise new industry growth BHP will review these studies now that the full environmental impact assessment process has resumed and will complete the remaining studies.
BHP plans to drill under the coastline near Port Campbell to bring gas 12 km from the offshore Minerva field to a processing plant inland behind the sensitive coastal dune region (pictured below). The undersea/underground line would be east of the coastline’s famous Twelve Apostles (pictured left).
The key components of the development include an offshore facility at which the production wells will be connected and the gas combined into a single pipeline for transportation ashore. A processing plant inland from the coast will be required to remove any impurities and produce a clean gas for delivery to customers. A transmission pipeline will take the gas to Geelong where Incitec is planning to build its fertiliser plant (see accompanying story). In early planning for the development of the Minerva field, BHP envisaged the construction of a small, single-leg, offshore platform, called a monotower, to act as the primary gathering point for the three to four planned gas production wells.
A
$700 million project to develop a new offshore gas field and associated pipeline to supply a major new fertiliser plant near Geelong has been launched by BHP and chemical company Incitec Ltd. The project has been announced as a feasibility study including investigations into supplying Minerva gas to, and construction of, a major fertiliser plant by Incitec. The Minerva gas discovery lies about 12 kilometres offshore from Port Campbell on Victoria’s south-western coast.
Natural gas is the raw material from which nitrogen based fertilisers, such as urea, are produced.
to stimulate pasture growth, a prime requirement across much of Victoria’s drought-ravaged farmlands.
Incitec is planning to build a plant near Geelong to produce 455,000 tonnes of ammonia a year which would be converted into 735,000 tonnes of urea fertiliser.
Initial studies by Incitec have shown that locally produced urea will be cost competitive with imported fertilisers, with the cost savings to be passed through to farmers.
This would largely replace imported urea, currently sold across the eastern and southern seaboard. Australia imports more than 800,000 tonnes of urea annually.
The Minerva gas field lies in a sub-surface reservoir under 60 metres of water. Its discovery was followed up by the discovery of a smaller gas accumulation further offshore called La Bella.
The nitrogen-based fertiliser is used on cereal, sugar, sunflower and canola oil crops and also
Gas reserves in the Minerva field are sufficient to supply the planned Incitec fertiliser plant for 15 years. A full Environmental Impact Assessment (EIA) of the Minerva development was begun by the Commonwealth and Victorian Governments early in 1994 but was suspended in November 1996 pending the location of a secure market for the gas. However, when the EIA was suspended, many of the other environmental studies for the assessment of the project were near completion.
2
BHP now plans to place a facility, called a manifold, on the seabed over the Minerva reservoir to act as a gathering point for the production wells. This will be connected to a pipeline heading towards the shore. The pipeline will dive under the sea floor, travel beneath the coastal region and emerge from the ground 4 kilometres inland at the gas plant. BHP says this will avoid any disturbance to the coastline or the Port Campbell National Park. The company says that completion of the EIA process will allow a completed statement to be publicly available early next year. It added: “The co-ordinated projects are a major potential development, capable of providing significant economic benefits to Victoria. “They are expected to create about 1,250 jobs during peak construction months and 220 during operation. “However, they will not proceed until all government, commercial and board approvals have been given.”
F O R M O R E I N F O R M AT I O N C O N TA C T:
Dr Robert Porter, BHP Petroleum Telephone (03) 9652 7366 Or toll free 1800 650 260
Southern Fertiliser project A major part of the plan to commercialise the Minerva gas field involves a joint venture between BHP Petroleum and Incitec Limited to study the feasibility of building a world-scale fertiliser plant near Geelong. The plant would take gas from the Minerva field to Geelong via a 150 km high-pressure, underground gas pipeline. The natural gas from Minerva would be converted to ammonia and then urea (a fertiliser) which would then be delivered to Victorian and other customers via ship, road or rail. Neither BHP nor Incitec expect to build, own or operate the gas pipeline linking the two projects. Under the joint venture agreement, BHP and Incitec will each have a 50% share of the Southern Fertiliser study which is expected to take 12 to 18 months. ▲
These included studies of the natural environment, coastal land forms, plants and animals, marine and coastal ecology, oceanography and coastal processes, marine acoustics, landscape and visual assessment, landform and land capability, land-use planning, noise, social and economic impacts, community attitudes and Aboriginal archaeology and heritage.
But new technology has allowed BHP to develop a new approach which will leave the ocean surface free of any sign of the gas production activities operating on the seabed.
3
INDUSTRY DEVELOPMENTS
Minerva gas to fertilise new industry growth BHP will review these studies now that the full environmental impact assessment process has resumed and will complete the remaining studies.
BHP plans to drill under the coastline near Port Campbell to bring gas 12 km from the offshore Minerva field to a processing plant inland behind the sensitive coastal dune region (pictured below). The undersea/underground line would be east of the coastline’s famous Twelve Apostles (pictured left).
The key components of the development include an offshore facility at which the production wells will be connected and the gas combined into a single pipeline for transportation ashore. A processing plant inland from the coast will be required to remove any impurities and produce a clean gas for delivery to customers. A transmission pipeline will take the gas to Geelong where Incitec is planning to build its fertiliser plant (see accompanying story). In early planning for the development of the Minerva field, BHP envisaged the construction of a small, single-leg, offshore platform, called a monotower, to act as the primary gathering point for the three to four planned gas production wells.
A
$700 million project to develop a new offshore gas field and associated pipeline to supply a major new fertiliser plant near Geelong has been launched by BHP and chemical company Incitec Ltd. The project has been announced as a feasibility study including investigations into supplying Minerva gas to, and construction of, a major fertiliser plant by Incitec. The Minerva gas discovery lies about 12 kilometres offshore from Port Campbell on Victoria’s south-western coast.
Natural gas is the raw material from which nitrogen based fertilisers, such as urea, are produced.
to stimulate pasture growth, a prime requirement across much of Victoria’s drought-ravaged farmlands.
Incitec is planning to build a plant near Geelong to produce 455,000 tonnes of ammonia a year which would be converted into 735,000 tonnes of urea fertiliser.
Initial studies by Incitec have shown that locally produced urea will be cost competitive with imported fertilisers, with the cost savings to be passed through to farmers.
This would largely replace imported urea, currently sold across the eastern and southern seaboard. Australia imports more than 800,000 tonnes of urea annually.
The Minerva gas field lies in a sub-surface reservoir under 60 metres of water. Its discovery was followed up by the discovery of a smaller gas accumulation further offshore called La Bella.
The nitrogen-based fertiliser is used on cereal, sugar, sunflower and canola oil crops and also
Gas reserves in the Minerva field are sufficient to supply the planned Incitec fertiliser plant for 15 years. A full Environmental Impact Assessment (EIA) of the Minerva development was begun by the Commonwealth and Victorian Governments early in 1994 but was suspended in November 1996 pending the location of a secure market for the gas. However, when the EIA was suspended, many of the other environmental studies for the assessment of the project were near completion.
2
BHP now plans to place a facility, called a manifold, on the seabed over the Minerva reservoir to act as a gathering point for the production wells. This will be connected to a pipeline heading towards the shore. The pipeline will dive under the sea floor, travel beneath the coastal region and emerge from the ground 4 kilometres inland at the gas plant. BHP says this will avoid any disturbance to the coastline or the Port Campbell National Park. The company says that completion of the EIA process will allow a completed statement to be publicly available early next year. It added: “The co-ordinated projects are a major potential development, capable of providing significant economic benefits to Victoria. “They are expected to create about 1,250 jobs during peak construction months and 220 during operation. “However, they will not proceed until all government, commercial and board approvals have been given.”
F O R M O R E I N F O R M AT I O N C O N TA C T:
Dr Robert Porter, BHP Petroleum Telephone (03) 9652 7366 Or toll free 1800 650 260
Southern Fertiliser project A major part of the plan to commercialise the Minerva gas field involves a joint venture between BHP Petroleum and Incitec Limited to study the feasibility of building a world-scale fertiliser plant near Geelong. The plant would take gas from the Minerva field to Geelong via a 150 km high-pressure, underground gas pipeline. The natural gas from Minerva would be converted to ammonia and then urea (a fertiliser) which would then be delivered to Victorian and other customers via ship, road or rail. Neither BHP nor Incitec expect to build, own or operate the gas pipeline linking the two projects. Under the joint venture agreement, BHP and Incitec will each have a 50% share of the Southern Fertiliser study which is expected to take 12 to 18 months. ▲
These included studies of the natural environment, coastal land forms, plants and animals, marine and coastal ecology, oceanography and coastal processes, marine acoustics, landscape and visual assessment, landform and land capability, land-use planning, noise, social and economic impacts, community attitudes and Aboriginal archaeology and heritage.
But new technology has allowed BHP to develop a new approach which will leave the ocean surface free of any sign of the gas production activities operating on the seabed.
3
REGULAR FEATURE
DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150
MINERALS AND PETROLEUM DIVISION: Fax: (03) 9412 7834 David Lea Executive Director Minerals and Petroleum Telephone: (03) 9637 8535 MINERALS BUSINESS CENTRE: Fax: (03) 9412 5150 Kim Ricketts Client Services Officer Telephone: (03) 9412 5103 MINERALS DEVELOPMENT: Fax: (03) 9637 8118 Phil Roberts Manager Minerals Development Telephone: (03) 9637 8529 Graham Gooding Regional Manager Ballarat Telephone: (03) 53 336 521 Guy Hamilton Regional Manager Bendigo Telephone: (03) 5430 4531 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Tom Dickson Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager Geophysical Surveys Telephone: (03) 9412 5131 Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025
Key role for new industry board
HEAD OFFICE: Level 15, 8 Nicholson Street, East Melbourne Vic 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135
A
Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081
Depending on the study confirming the commercial viability of the proposal and with appropriate company, regulatory and environmental approvals, the fertiliser plant will buy gas from the Minerva joint venturers, BHP Petroleum (90%) and Santos (10%).
Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053
The feasibility study will investigate suitable sites for the fertiliser plant, potential environmental impacts and the commercial viability of developing the plant in the Geelong area.
Geoff Collins Manager Petroleum Projects Telephone: (03) 9637 8531
If the Minerva and fertiliser projects are environmentally and commercially viable and government and board approvals are received, it is anticipated that construction and commissioning would take between 30 and 36 months.
MINERALS AND PETROLEUM REGULATIONS: Fax: (03) 9412 5152
BHP says the combined projects would create about 1250 direct jobs during peak construction and an estimated 220 permanent jobs.
Rob King Manager Minerals and Petroleum Telephone: (03) 9412 5069
Approximately 20 of the permanent jobs would be required for Minerva.
David Wallish Compliance and Performance Auditing Manager Telephone: (03) 9412 5124
It is anticipated that the flow on effects from the permanent new jobs created will provide significant new employment opportunities in associated and service industries. Capital expenditure for Minerva is estimated between $150 and $200 million while the fertiliser plant is estimated to cost between $450 and $500 million. First production is expected in 2002.
George Buckland Manager Minerals and Petroleum Tenements Telephone: (03) 9412 4778
On the basis of the current potential market, Minerva’s field life is expected to be about 15 years.
INFORMATION: Janne Bonnett Manager Library Telephone: (03) 9412 5022 Fax: (03) 9412 5157
BHP Petroleum will manage the feasibility study stage of both projects, using its own and Incitec expertise. If the project proceeds, Incitec would manage the fertiliser plant which would be designed to produce about 455,000 tonnes of ammonia a year which would mainly be converted into about 733,000 tonnes of urea.
Chandri Corray Manager Marketing Development Telephone: (03) 9637 8532 Fax: (03) 9637 8118
Incitec is Australia’s largest supplier of fertiliser products to the agricultural sector and operates Australia’s only other urea plant located in Brisbane. Several potential sites around Geelong are being considered and these will be discussed with landowners, neighbours and relevant authorities as well as the general community.
Bob Dalgarno VIMP Co-ordinator Telephone: (03) 9412 5032 PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156
The site assessment process will identify and assess the potential environmental impacts of the fertiliser plant such as air and water emissions and risks and hazards associated with the manufacture of urea and ammonia.
Kathy Hill Manager Petroleum Developments Telephone: (03) 9637 8530
The assessment will also detail environmental management plans which would be developed to eliminate or minimise the potential environmental impacts.
Reza Malek Manager Petroleum Resources Telephone: (03) 9412 5074
The fertiliser plant will need a Victorian Environment Protection Authority works approval and operating licence and all emissions and discharges from the plant will need to meet stringent EPA requirements.
4
s we start a new financial year it is a time to reflect on past achievements and look to shaping the future.
Since first coming to office late in 1992, the Government has been committed to reforming the energy industry and the resurrection of the mining industry in Victoria. The platform for these achievements has been largely put in place over the past five years. The 1997-98 financial year has been one in which a number of key strategic milestones were achieved which symbolise the progress which has been made. These milestones include: • the announcement of a feasibility study into the development of the Minerva gas reservoir in association with an ammonia/urea project, • commencement of work on the $35 million underground exploration phase of the New Bendigo project, • completion of the Environmental Effects Statement hearings for the Wemen mineral sands project, and • announcement of a further $7 million commitment to the Victorian Initiative for Minerals and Petroleum, making a total of $25.5 million. Clearly, the foundation has been laid to achieve our vision of a billion dollar plus mining industry and diversified supply of competitively-priced natural gas. It is not the role of Government to invest directly in achieving this vision, that is the clear role for industry in our market driven economy. The Government’s role is to provide geological data, the right processes for development approval and to ensure that all operations meet the broader community’s expectations for health, safety and environmental performance. In order to ensure that communication between Government and industry is occurring effectively, I have decided to create and chair a new Advisory Board to act as a forum to discuss the key strategic issues in the extractive and mining industries. Known as the Extractive & Mining Industry Advisory Board, this body will enable representatives of the various extractive industry bodies, the Victorian Chamber of Mines and The Prospectors and Miners Association of Victoria, to meet with myself and
senior Department staff on a regular basis. By meeting with the broader extractive and mining industry through one body, the Government is taking the view that many of the strategic issues are common to the industries and that these can be more efficiently and effectively progressed in a collective manner. Examples of such issues include native title, planning approval processes and the management of health, safety and the environment. The key strategic issues for Government over the next five years are: • Developing a 21st Century approach to the regulation of industry health, safety and environment performance. The major vehicle for this will be the development of new regulations under the Extractive Industry Development, Minerals Resources Development and Pipeline Acts. These will replace the current regulations which sunset over the next two years.
“the Government is taking the view that many of the strategic issues are common to the industries and that these can be more efficiently and effectively progressed in a collective manner.” • Consolidate exploration expenditure at levels sufficient to underpin the development of a viable mining industry. • Facilitate the transformation of successful exploration results into viable production activities. • Complete the implementation of the reformed extractive industry regime to the satisfaction of all stakeholders. To progress these issues effectively, it will be essential to work in partnership with the industry and stakeholders at the State and local level. The Extractive and Mining Industry Advisory Board will play a key role in ensuring that this happens. 5
Patrick McNamara Deputy Premier Minister for Agriculture and Resources
REGULAR FEATURE
DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150
MINERALS AND PETROLEUM DIVISION: Fax: (03) 9412 7834 David Lea Executive Director Minerals and Petroleum Telephone: (03) 9637 8535 MINERALS BUSINESS CENTRE: Fax: (03) 9412 5150 Kim Ricketts Client Services Officer Telephone: (03) 9412 5103 MINERALS DEVELOPMENT: Fax: (03) 9637 8118 Phil Roberts Manager Minerals Development Telephone: (03) 9637 8529 Graham Gooding Regional Manager Ballarat Telephone: (03) 53 336 521 Guy Hamilton Regional Manager Bendigo Telephone: (03) 5430 4531 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Tom Dickson Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager Geophysical Surveys Telephone: (03) 9412 5131 Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025
Key role for new industry board
HEAD OFFICE: Level 15, 8 Nicholson Street, East Melbourne Vic 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135
A
Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081
Depending on the study confirming the commercial viability of the proposal and with appropriate company, regulatory and environmental approvals, the fertiliser plant will buy gas from the Minerva joint venturers, BHP Petroleum (90%) and Santos (10%).
Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053
The feasibility study will investigate suitable sites for the fertiliser plant, potential environmental impacts and the commercial viability of developing the plant in the Geelong area.
Geoff Collins Manager Petroleum Projects Telephone: (03) 9637 8531
If the Minerva and fertiliser projects are environmentally and commercially viable and government and board approvals are received, it is anticipated that construction and commissioning would take between 30 and 36 months.
MINERALS AND PETROLEUM REGULATIONS: Fax: (03) 9412 5152
BHP says the combined projects would create about 1250 direct jobs during peak construction and an estimated 220 permanent jobs.
Rob King Manager Minerals and Petroleum Telephone: (03) 9412 5069
Approximately 20 of the permanent jobs would be required for Minerva.
David Wallish Compliance and Performance Auditing Manager Telephone: (03) 9412 5124
It is anticipated that the flow on effects from the permanent new jobs created will provide significant new employment opportunities in associated and service industries. Capital expenditure for Minerva is estimated between $150 and $200 million while the fertiliser plant is estimated to cost between $450 and $500 million. First production is expected in 2002.
George Buckland Manager Minerals and Petroleum Tenements Telephone: (03) 9412 4778
On the basis of the current potential market, Minerva’s field life is expected to be about 15 years.
INFORMATION: Janne Bonnett Manager Library Telephone: (03) 9412 5022 Fax: (03) 9412 5157
BHP Petroleum will manage the feasibility study stage of both projects, using its own and Incitec expertise. If the project proceeds, Incitec would manage the fertiliser plant which would be designed to produce about 455,000 tonnes of ammonia a year which would mainly be converted into about 733,000 tonnes of urea.
Chandri Corray Manager Marketing Development Telephone: (03) 9637 8532 Fax: (03) 9637 8118
Incitec is Australia’s largest supplier of fertiliser products to the agricultural sector and operates Australia’s only other urea plant located in Brisbane. Several potential sites around Geelong are being considered and these will be discussed with landowners, neighbours and relevant authorities as well as the general community.
Bob Dalgarno VIMP Co-ordinator Telephone: (03) 9412 5032 PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156
The site assessment process will identify and assess the potential environmental impacts of the fertiliser plant such as air and water emissions and risks and hazards associated with the manufacture of urea and ammonia.
Kathy Hill Manager Petroleum Developments Telephone: (03) 9637 8530
The assessment will also detail environmental management plans which would be developed to eliminate or minimise the potential environmental impacts.
Reza Malek Manager Petroleum Resources Telephone: (03) 9412 5074
The fertiliser plant will need a Victorian Environment Protection Authority works approval and operating licence and all emissions and discharges from the plant will need to meet stringent EPA requirements.
4
s we start a new financial year it is a time to reflect on past achievements and look to shaping the future.
Since first coming to office late in 1992, the Government has been committed to reforming the energy industry and the resurrection of the mining industry in Victoria. The platform for these achievements has been largely put in place over the past five years. The 1997-98 financial year has been one in which a number of key strategic milestones were achieved which symbolise the progress which has been made. These milestones include: • the announcement of a feasibility study into the development of the Minerva gas reservoir in association with an ammonia/urea project, • commencement of work on the $35 million underground exploration phase of the New Bendigo project, • completion of the Environmental Effects Statement hearings for the Wemen mineral sands project, and • announcement of a further $7 million commitment to the Victorian Initiative for Minerals and Petroleum, making a total of $25.5 million. Clearly, the foundation has been laid to achieve our vision of a billion dollar plus mining industry and diversified supply of competitively-priced natural gas. It is not the role of Government to invest directly in achieving this vision, that is the clear role for industry in our market driven economy. The Government’s role is to provide geological data, the right processes for development approval and to ensure that all operations meet the broader community’s expectations for health, safety and environmental performance. In order to ensure that communication between Government and industry is occurring effectively, I have decided to create and chair a new Advisory Board to act as a forum to discuss the key strategic issues in the extractive and mining industries. Known as the Extractive & Mining Industry Advisory Board, this body will enable representatives of the various extractive industry bodies, the Victorian Chamber of Mines and The Prospectors and Miners Association of Victoria, to meet with myself and
senior Department staff on a regular basis. By meeting with the broader extractive and mining industry through one body, the Government is taking the view that many of the strategic issues are common to the industries and that these can be more efficiently and effectively progressed in a collective manner. Examples of such issues include native title, planning approval processes and the management of health, safety and the environment. The key strategic issues for Government over the next five years are: • Developing a 21st Century approach to the regulation of industry health, safety and environment performance. The major vehicle for this will be the development of new regulations under the Extractive Industry Development, Minerals Resources Development and Pipeline Acts. These will replace the current regulations which sunset over the next two years.
“the Government is taking the view that many of the strategic issues are common to the industries and that these can be more efficiently and effectively progressed in a collective manner.” • Consolidate exploration expenditure at levels sufficient to underpin the development of a viable mining industry. • Facilitate the transformation of successful exploration results into viable production activities. • Complete the implementation of the reformed extractive industry regime to the satisfaction of all stakeholders. To progress these issues effectively, it will be essential to work in partnership with the industry and stakeholders at the State and local level. The Extractive and Mining Industry Advisory Board will play a key role in ensuring that this happens. 5
Patrick McNamara Deputy Premier Minister for Agriculture and Resources
SPECIAL FEATURE
REGULAR FEATURE
Ballarat Gold spreads its wings B
allarat Goldfields NL has gained full control of virtually the entire Ballarat goldfield after acquiring the Ballarat West project, adjacent to its one million ounce resource at Ballarat East.
“In the past 12 months we have achieved significant technical advances at Ballarat East which have been pivotal in increasing our understanding of the mineralisation styles and structures. “We believe these successes can be productively applied to this geologically similar project.
The deal with Ballarat Consolidated NL puts Ballarat Goldfields into a strategically dominant position in the region and follows the company’s recent acquisition of the Berringa gold field, 25 km south of Ballarat (see separate story).
“The synergy of the two projects, in respect to their position, history and geological characteristics, provides further reinforcement of the long-term future of the Ballarat gold project.”
Ballarat Goldfields managing director, Andrew Woskett, said the acquisition of Ballarat West boosted the company’s position in a proven goldmining region.
Mr Woskett said the consolidation of Ballarat East and Ballarat West, which cover a combined 300 square km area, opened up exciting new exploration opportunities.
“The strategic acquisition of the 265-square kilometre Ballarat West project consolidates our position in the region by giving us control of contiguous land holdings incorporating all the major reef and alluvial mines in the Ballarat area,” Mr Woskett said.
Historic production of both fields totals 7 million ounces of alluvial gold and 2 million ounces of reef gold at grades around 10 grams/tonne from depths down to 700 metres.
Andrew Woskett
DRILLED CROSS SECTION
Ballart Goldfields paid $450,000 plus a 2% royalty on future production capped at $2 million for the Ballarat West project. This leaves the company in a strong cash position, with more than $4 million available.
Mr Woskett said exploration data from Ballarat Consolidated would be assessed and integrated into Ballarat Goldfields’ existing database. Significantly, it will be the first time a company has had access to both sets of data. Coordination of the data sets into one system is expected to lead to a better understanding of the geological relationship between the east and west fields which, until now, have been assessed separately. “Consolidation of titles and integration of data into a single package reflects a wider industry trend and this conveys a positive signal about exploration investment opportunities in Victoria,” Mr Woskett said. The acquisition of Ballarat West will enhance Ballarat Goldfields’ aim of establishing a substantial new underground mining operation in unworked ground beneath the abandoned reef mines of the gold fields.
Ballarat Goldfields’ senior geologist Peter d’Auvergne, inspects core samples.
only 1.5 kilometres east of the three major subparallel lode systems of Ballarat West - namely the Consols, the Guiding Star and the Albion,” he said. “These structures were developed over strike lengths of 2,500 metres 4,000 metres and 1,400 metres respectively.” The Woolshed Gully decline recently provided Ballarat Goldfields with access to the old New Normanby workings and shaft within the Ballarat East project which, historically, was the deepest working shaft at the south end of the field and a major producer. Mr Woskett said that a comprehensive engineering review would be conducted over the next few months to assess all available options for the company’s resource access strategy at Ballarat East, including extension of the onekilometre long decline now at 140 metres below the surface. Construction of the Woolshed Gully access decline has been one third completed and is now in stable and competent ground. Ballarat Goldfields operates and manages the Ballarat Gold Project Joint Venture which is owned by BGF 75% and subsidiaries of NM Rothschild and Sons (Australia) Ltd 25%.
Mr Woskett said effective exploration of the Ballarat West goldfield could be conducted by cross-cut development from a planned extension of the Woolshed Gully decline.
Left: Drill exploration by Ballarat Consolidated Gold has identified the potential for a 200,000 oz shoot on structural extensions of mined lodes in Ballarat West;
“The trajectory of the decline is located
Above: An indicator drive in Ballarat East;
6
Ballarat buys Berringa reefs Ballarat Goldfields NL has enhanced its Victorian exploration portfolio by acquiring the Berringa goldfield, 35 kilometres south-west of Ballarat. The Berringa goldfield is an historic mining area containing a system of high-grade quartz reefs similar to the company’s flagship Ballarat East gold project. The acquisition, from private interests, demonstrates Ballarat Goldfields’ confidence in the prospectivity of Victoria’s central highlands region and consolidates its position in the Ballarat gold district. The area purchased covers Mining Licence MIN 4194, an area extending over 3.7 kilometres by 0.85 kilometres and covering all the productive reef mines on the Berringa field. Berringa was actively mined between 1898 and 1917. Six underground operations, over a strike of 2.5 kilometres, mined ore zones grading in excess of 10 g/t, yielding almost 300,000 ounces of gold from a maximum depth of 300 metres. Between 1937 and 1952, the Berringa Prospecting Syndicate mined zones grading more than 10 g/t within the Berringa mine between 40 metres and 70 metres below surface.
A total of 13,500 ounces were produced from 24,000 tonnes of crushings at an average recovered grade of 17 g/t. “The Berringa goldfield is a Ballarat East look-alike and has received even less exploration attention than had Ballarat East when we acquired it back in 1983,” the managing director of Ballarat Goldfields Andrew Woskett, said. “The landholdings have been consolidated, but there has not been any systematic modern exploration. “Nor has all the information on all the separate mines been put together. Our approach would be to take a whole-of-goldfield look at the area - as we did with Ballarat - and also to look at areas which had not been mined previously. “We believe it has the potential to be slightly smaller, but still a significant version of Ballarat East, hosting anywhere between 200500,000 ounces.” Mr Woskett added that access to the area was facilitated by the fact that the mining licence pre-dated native title. Ballarat Goldfields has also recently purchased extensive strategic freehold within the MIN area, including an unworked section of the goldfield which is regarded as highly prospective. Mr Woskett said the old mines had targeted the high-grade reefs at depth, taking out material grading more than 12 g/t, but had not extracted any near-surface ore or anything grading less than 8 g/t. “The near surface zones are quite prospective and there is good potential to find remnant orebodies at shallow 7
depth at reasonable grades,” he added. “There is also the possibility of at-depth repetitions of the high grade quartz veins - as is typical in these goldfields.” Mr Woskett said a 700-metre zone in the middle of the old goldfield was unexplored, apart from several shallow prospecting pits, and would provide a good initial target for the company. Other positives were that there was a relatively new shaft which was sunk to a depth of around 120 metres in the 1970s - providing excellent underground access and a potential de-watering point. Also, while the geological conditions were very similar to Ballarat East, the ground conditions were much better. (Ballarat Goldfields struck initial trouble at its Ballarat East gold project when poor ground conditions hampered the development of a decline into the workings, requiring extensive ground support.) The area is sparsely settled, covered mainly by small farming settlements -which will make exploration access far easier than at Ballarat East. Ballarat Goldfields’ initial program will entail surface mapping and digitising all available information on the goldfield. F O R M O R E I N F O R M AT I O N C O N TA C T:
Mr Andrew Woskett, managing director Ballarat Goldfields Telephone: (03) 5333-5444
SPECIAL FEATURE
REGULAR FEATURE
Ballarat Gold spreads its wings B
allarat Goldfields NL has gained full control of virtually the entire Ballarat goldfield after acquiring the Ballarat West project, adjacent to its one million ounce resource at Ballarat East.
“In the past 12 months we have achieved significant technical advances at Ballarat East which have been pivotal in increasing our understanding of the mineralisation styles and structures. “We believe these successes can be productively applied to this geologically similar project.
The deal with Ballarat Consolidated NL puts Ballarat Goldfields into a strategically dominant position in the region and follows the company’s recent acquisition of the Berringa gold field, 25 km south of Ballarat (see separate story).
“The synergy of the two projects, in respect to their position, history and geological characteristics, provides further reinforcement of the long-term future of the Ballarat gold project.”
Ballarat Goldfields managing director, Andrew Woskett, said the acquisition of Ballarat West boosted the company’s position in a proven goldmining region.
Mr Woskett said the consolidation of Ballarat East and Ballarat West, which cover a combined 300 square km area, opened up exciting new exploration opportunities.
“The strategic acquisition of the 265-square kilometre Ballarat West project consolidates our position in the region by giving us control of contiguous land holdings incorporating all the major reef and alluvial mines in the Ballarat area,” Mr Woskett said.
Historic production of both fields totals 7 million ounces of alluvial gold and 2 million ounces of reef gold at grades around 10 grams/tonne from depths down to 700 metres.
Andrew Woskett
DRILLED CROSS SECTION
Ballart Goldfields paid $450,000 plus a 2% royalty on future production capped at $2 million for the Ballarat West project. This leaves the company in a strong cash position, with more than $4 million available.
Mr Woskett said exploration data from Ballarat Consolidated would be assessed and integrated into Ballarat Goldfields’ existing database. Significantly, it will be the first time a company has had access to both sets of data. Coordination of the data sets into one system is expected to lead to a better understanding of the geological relationship between the east and west fields which, until now, have been assessed separately. “Consolidation of titles and integration of data into a single package reflects a wider industry trend and this conveys a positive signal about exploration investment opportunities in Victoria,” Mr Woskett said. The acquisition of Ballarat West will enhance Ballarat Goldfields’ aim of establishing a substantial new underground mining operation in unworked ground beneath the abandoned reef mines of the gold fields.
Ballarat Goldfields’ senior geologist Peter d’Auvergne, inspects core samples.
only 1.5 kilometres east of the three major subparallel lode systems of Ballarat West - namely the Consols, the Guiding Star and the Albion,” he said. “These structures were developed over strike lengths of 2,500 metres 4,000 metres and 1,400 metres respectively.” The Woolshed Gully decline recently provided Ballarat Goldfields with access to the old New Normanby workings and shaft within the Ballarat East project which, historically, was the deepest working shaft at the south end of the field and a major producer. Mr Woskett said that a comprehensive engineering review would be conducted over the next few months to assess all available options for the company’s resource access strategy at Ballarat East, including extension of the onekilometre long decline now at 140 metres below the surface. Construction of the Woolshed Gully access decline has been one third completed and is now in stable and competent ground. Ballarat Goldfields operates and manages the Ballarat Gold Project Joint Venture which is owned by BGF 75% and subsidiaries of NM Rothschild and Sons (Australia) Ltd 25%.
Mr Woskett said effective exploration of the Ballarat West goldfield could be conducted by cross-cut development from a planned extension of the Woolshed Gully decline.
Left: Drill exploration by Ballarat Consolidated Gold has identified the potential for a 200,000 oz shoot on structural extensions of mined lodes in Ballarat West;
“The trajectory of the decline is located
Above: An indicator drive in Ballarat East;
6
Ballarat buys Berringa reefs Ballarat Goldfields NL has enhanced its Victorian exploration portfolio by acquiring the Berringa goldfield, 35 kilometres south-west of Ballarat. The Berringa goldfield is an historic mining area containing a system of high-grade quartz reefs similar to the company’s flagship Ballarat East gold project. The acquisition, from private interests, demonstrates Ballarat Goldfields’ confidence in the prospectivity of Victoria’s central highlands region and consolidates its position in the Ballarat gold district. The area purchased covers Mining Licence MIN 4194, an area extending over 3.7 kilometres by 0.85 kilometres and covering all the productive reef mines on the Berringa field. Berringa was actively mined between 1898 and 1917. Six underground operations, over a strike of 2.5 kilometres, mined ore zones grading in excess of 10 g/t, yielding almost 300,000 ounces of gold from a maximum depth of 300 metres. Between 1937 and 1952, the Berringa Prospecting Syndicate mined zones grading more than 10 g/t within the Berringa mine between 40 metres and 70 metres below surface.
A total of 13,500 ounces were produced from 24,000 tonnes of crushings at an average recovered grade of 17 g/t. “The Berringa goldfield is a Ballarat East look-alike and has received even less exploration attention than had Ballarat East when we acquired it back in 1983,” the managing director of Ballarat Goldfields Andrew Woskett, said. “The landholdings have been consolidated, but there has not been any systematic modern exploration. “Nor has all the information on all the separate mines been put together. Our approach would be to take a whole-of-goldfield look at the area - as we did with Ballarat - and also to look at areas which had not been mined previously. “We believe it has the potential to be slightly smaller, but still a significant version of Ballarat East, hosting anywhere between 200500,000 ounces.” Mr Woskett added that access to the area was facilitated by the fact that the mining licence pre-dated native title. Ballarat Goldfields has also recently purchased extensive strategic freehold within the MIN area, including an unworked section of the goldfield which is regarded as highly prospective. Mr Woskett said the old mines had targeted the high-grade reefs at depth, taking out material grading more than 12 g/t, but had not extracted any near-surface ore or anything grading less than 8 g/t. “The near surface zones are quite prospective and there is good potential to find remnant orebodies at shallow 7
depth at reasonable grades,” he added. “There is also the possibility of at-depth repetitions of the high grade quartz veins - as is typical in these goldfields.” Mr Woskett said a 700-metre zone in the middle of the old goldfield was unexplored, apart from several shallow prospecting pits, and would provide a good initial target for the company. Other positives were that there was a relatively new shaft which was sunk to a depth of around 120 metres in the 1970s - providing excellent underground access and a potential de-watering point. Also, while the geological conditions were very similar to Ballarat East, the ground conditions were much better. (Ballarat Goldfields struck initial trouble at its Ballarat East gold project when poor ground conditions hampered the development of a decline into the workings, requiring extensive ground support.) The area is sparsely settled, covered mainly by small farming settlements -which will make exploration access far easier than at Ballarat East. Ballarat Goldfields’ initial program will entail surface mapping and digitising all available information on the goldfield. F O R M O R E I N F O R M AT I O N C O N TA C T:
Mr Andrew Woskett, managing director Ballarat Goldfields Telephone: (03) 5333-5444
ENVIRONMENTAL NEWS
REGULAR FEATURE
‘Rubbish gas’ cuts greenhouse emissions
Ruby gets a final polish
A network of pipelines delivers the methane gas to a central processing plant.
T
wenty-first century technology and a commitment to reducing greenhouse gas emissions has given new meaning to the old maxim: ‘Where there’s muck there’s money’. Melbourne-based electricity generation company, Energy Developments Ltd, has proved the point by perfecting a unique technique to extract the waste gases from rotting organic matter in rubbish tips and use the gas in turbines to generate electricity. Not only has the company succeeded locally, it has also spread its corporate wings internationally. Landfill gas power generation sites in Melbourne are located at Broadmeadows, Berwick, Springvale and Clayton and incorporate a large number of separate tip sites connected to four separate power generation facilities. Energy Developments also operates plants in NSW and South Australia as well as the United Kingdom and (check if it has plants in the US too) the United States. Already the company generates more than 260 megawatts of electricity which it sells back into the mainstream power grids for use by domestic and industrial consumers The company opened its first landfill gas recovery project at Broadmeadows tip in 1988, proving the effectiveness of its technol-
GREENHOUSE BENEFITS The landfill gas electricity generation system has many benefits at a local, national and international level. Local residents often oppose tips being established in nearby areas, primarily because of the smell generated by the tonnes of rotting garbage. The bad odour is caused largely by the creation of methane which, until the tip site is capped, escapes into the atmosphere, often tainting the local environment. Even after they are capped, the gas continues to seep from rubbish dumps. However, extraction of the gas for power generation virtually eliminates the smell by drawing the gas into the production wells where it is burned as a low-cost fuel, providing benefits to local residents and the environment generally. At a national level, Energy Developments is also gaining significant benefits through the Federal Government’s greenhouse policy which encourages the use of renewable and waste energy sources. The company is Australia’s biggest electricity
ogy right from the beginning to become the market leader in Australia’s emerging independent power industry. It also has a number of operating power plants in the United Kingdom. Power plants presently operated by Energy Developments have a total generating capacity of 261MW with the company’s ownership
interest in this capacity totalling 214MW. The primary fuel extracted from tip sites is methane gas. Methane is generated from the decomposition of organic matter, usually household and garden waste materials, but which also includes paper, some plastics and other material. Landfill gas, which is principally composed of
generator using ‘waste’ methane fuel created by decomposing organic material in landfill. It has 14 landfill gas plants around Australia, generating a total of 73 megawatts (MW) of electricity sold to electricity utilities under long-term contracts. Energy Developments also operates a 97MW coal seam, methane-fuelled power generator at the Appin and Tower collieries in NSW, the world’s largest coal methane power project. These plants represent a total investment exceeding $200 million in technology for capturing and using “waste” methane for power generation. Australia’s greenhouse gas emissions reduction commitments under the Kyoto Protocol, have given the company a further boost. “We are already reducing greenhouse gas emissions by using methane gas that would otherwise be discharged into the atmosphere,” Energy Developments’ managing director Walter Pahor, told Discovery.
“Over a 20-year period, the release of one tonne of methane into the atmosphere has 21 times the global warming potential of one tonne of carbon dioxide. “Our existing plants prevent the equivalent of more than 6 million tonnes of carbon dioxide a year being released to the atmosphere.. “Clearly, technology and processes that use ‘waste’ methane from the likes of landfill and coal mines are valuable tools in reducing greenhouse gas emissions and that is the whole purpose of the renewables policy.” The Federal Government’s greenhouse policy proposes mandatory targets for the use of renewable energy sources in power supplies. Electricity retailers and other large electricity buyers will be legally required to source an additional 2 per cent of their electricity from renewable or specified waste-product energy sources by 2010. “We have shown these ‘waste’ methane technologies can be commercial, “ Mr Pahor said.
“This is clearly the kind of technology envisaged in the Prime Minister’s renewables policy on using ‘specified waste-product energy sources’. 8
“The company is a world leader in the application of these technologies. And we have more
methane but which also contains other gases, is extracted from the landfill sites using large diameter wells drilled into the rubbish dumps once they have been capped with clay and soil. A large number of wells are drilled across the tip site in a grid pattern and connected at the surface by a network of pipelines which deliver the gas to a central processing plant. The wells are fitted with wellheads comprising valves and flow meters to control the flow from each well while an underground pipeline network connects the wells to a central gas compression and processing plant at each landfill site. Gas blowers maintain a vacuum on the gas extraction system and compress the gas to the pipeline and the processing plant. There the gas is treated to remove moisture and any fine particles before the gas is fed into a converted diesel engine attached to a turbine for generating electricity with the power produced supplied to the utility distribution system. A typical generating plant comprises several gas engine generator sets. Power is generated at 415 volts with a transformer installed on each generator set to increase voltage to 22,000 volts. The plant is electrically connected with the utility distribution system at 22,000 volts.
waste-to-energy ideas being investigated in our research and development programs which we think have great commercial potential.” Mr Pahor said that the quantity of organic waste material going into landfill continued to grow and was constantly being renewed. “Some may argue that landfill gas and coal seam methane are not renewable, but we must not lose sight of the objective of reducing greenhouse gas emissions,” he added. “The fact is that the fuel resource is there and it will be wasted if we don’t capture it. It isn’t feasible to pretend that we will suddenly stop producing garbage or mining coal. “Therefore, we must strive to utilise these resources as efficiently as possible and take all steps to mitigate the environmental impacts.” F O R M O R E I N F O R M AT I O N C O N TA C T:
Richard Edwards, finance director Energy Developments Ltd Telephone: 9283 9284 E-mail: [email protected]
A
major rehabilitation project at the old Ruby basalt quarry, 10 kilometres east of Leongatha, has been completed by Melbourne Metropolitan Quarries, a division of CSR Ltd. The project, costing $500,000, took 10 weeks. Rehabilitation work included extensive reshaping of 30 metre high, vertical rock faces, some of which were severely undercut and dangerous. The aim was to blend the quarry slopes into the surrounding topography using the overburden and weathered rock onsite. Computer models were used to assess the volumes of cut and fill required to achieve an appropriate landform. The quarry was originally closed in 1997 due to poor market conditions and the difficulty in extracting the remaining reserves. The lease with the land owner was re-negotiated to allow a two-year rehabilitation period starting in October, 1997. The rehabilitation aimed to achieve a final Before and After: Rehabilitation of dangerous landform that was stable and aesthetically rock faces at the Ruby quarry has restored much pleasing but also to allow a limited ongoing of the area to useable farmland and made safe use that was compatible with the surround- other areas of the former pit. ing grazing land. The earthworks, which commenced in January, 1998, were conducted by Roche Theiss Linfox Joint Venture, a local earthmoving contractor. During the restoration work, the finer material and topsoil was initially segregated and stockpiled at the sides of the quarry and used at the end of the project to enhance the revegetation of the slopes. As the quarry was subject to many free flowing natural groundwater springs and prone to landslides, several rock lined drainage channels were created through the quarry floor. This allowed the naturally occurring groundwater to drain away from the base of the fill material and ensured the stability of the final landform. Once the drainage channels were completed, larger rubble and weathered rock was placed to create the required slopes. Topsoil and finer material was then spread across the larger material and graded to create a smooth, even landform to allow rapid revegetation. The earthworks and shaping of the final landform were completed in approximately nine weeks. All the disturbed areas and newly created slopes were grassed using a combination of native and grazing species, including a combination of rye corn, fescues and other pastoral grasses . The quarry’s old crushing plant and stockpile areas were also reshaped and topsoiled. Due to the instability of the surrounding areas and the potential for landslides, it was important to ensure revegetation occurred immediately after the soils were disturbed to minimise erosion and impact from dust and sediment. To complete the project native trees and shrubs will be planted in Spring using help from local schools and community landcare groups. The site is one of several that have recently being rehabilitated by the CSR Melbourne Quarry Division under the co-ordination and management of the division’s resource and planning engineer, Sally Harle. 9
F O R M O R E I N F O R M AT I O N C O N TA C T:
Sally Harle, CSR Readymix Quarries Telephone (03) 9286 2666
ENVIRONMENTAL NEWS
REGULAR FEATURE
‘Rubbish gas’ cuts greenhouse emissions
Ruby gets a final polish
A network of pipelines delivers the methane gas to a central processing plant.
T
wenty-first century technology and a commitment to reducing greenhouse gas emissions has given new meaning to the old maxim: ‘Where there’s muck there’s money’. Melbourne-based electricity generation company, Energy Developments Ltd, has proved the point by perfecting a unique technique to extract the waste gases from rotting organic matter in rubbish tips and use the gas in turbines to generate electricity. Not only has the company succeeded locally, it has also spread its corporate wings internationally. Landfill gas power generation sites in Melbourne are located at Broadmeadows, Berwick, Springvale and Clayton and incorporate a large number of separate tip sites connected to four separate power generation facilities. Energy Developments also operates plants in NSW and South Australia as well as the United Kingdom and (check if it has plants in the US too) the United States. Already the company generates more than 260 megawatts of electricity which it sells back into the mainstream power grids for use by domestic and industrial consumers The company opened its first landfill gas recovery project at Broadmeadows tip in 1988, proving the effectiveness of its technol-
GREENHOUSE BENEFITS The landfill gas electricity generation system has many benefits at a local, national and international level. Local residents often oppose tips being established in nearby areas, primarily because of the smell generated by the tonnes of rotting garbage. The bad odour is caused largely by the creation of methane which, until the tip site is capped, escapes into the atmosphere, often tainting the local environment. Even after they are capped, the gas continues to seep from rubbish dumps. However, extraction of the gas for power generation virtually eliminates the smell by drawing the gas into the production wells where it is burned as a low-cost fuel, providing benefits to local residents and the environment generally. At a national level, Energy Developments is also gaining significant benefits through the Federal Government’s greenhouse policy which encourages the use of renewable and waste energy sources. The company is Australia’s biggest electricity
ogy right from the beginning to become the market leader in Australia’s emerging independent power industry. It also has a number of operating power plants in the United Kingdom. Power plants presently operated by Energy Developments have a total generating capacity of 261MW with the company’s ownership
interest in this capacity totalling 214MW. The primary fuel extracted from tip sites is methane gas. Methane is generated from the decomposition of organic matter, usually household and garden waste materials, but which also includes paper, some plastics and other material. Landfill gas, which is principally composed of
generator using ‘waste’ methane fuel created by decomposing organic material in landfill. It has 14 landfill gas plants around Australia, generating a total of 73 megawatts (MW) of electricity sold to electricity utilities under long-term contracts. Energy Developments also operates a 97MW coal seam, methane-fuelled power generator at the Appin and Tower collieries in NSW, the world’s largest coal methane power project. These plants represent a total investment exceeding $200 million in technology for capturing and using “waste” methane for power generation. Australia’s greenhouse gas emissions reduction commitments under the Kyoto Protocol, have given the company a further boost. “We are already reducing greenhouse gas emissions by using methane gas that would otherwise be discharged into the atmosphere,” Energy Developments’ managing director Walter Pahor, told Discovery.
“Over a 20-year period, the release of one tonne of methane into the atmosphere has 21 times the global warming potential of one tonne of carbon dioxide. “Our existing plants prevent the equivalent of more than 6 million tonnes of carbon dioxide a year being released to the atmosphere.. “Clearly, technology and processes that use ‘waste’ methane from the likes of landfill and coal mines are valuable tools in reducing greenhouse gas emissions and that is the whole purpose of the renewables policy.” The Federal Government’s greenhouse policy proposes mandatory targets for the use of renewable energy sources in power supplies. Electricity retailers and other large electricity buyers will be legally required to source an additional 2 per cent of their electricity from renewable or specified waste-product energy sources by 2010. “We have shown these ‘waste’ methane technologies can be commercial, “ Mr Pahor said.
“This is clearly the kind of technology envisaged in the Prime Minister’s renewables policy on using ‘specified waste-product energy sources’. 8
“The company is a world leader in the application of these technologies. And we have more
methane but which also contains other gases, is extracted from the landfill sites using large diameter wells drilled into the rubbish dumps once they have been capped with clay and soil. A large number of wells are drilled across the tip site in a grid pattern and connected at the surface by a network of pipelines which deliver the gas to a central processing plant. The wells are fitted with wellheads comprising valves and flow meters to control the flow from each well while an underground pipeline network connects the wells to a central gas compression and processing plant at each landfill site. Gas blowers maintain a vacuum on the gas extraction system and compress the gas to the pipeline and the processing plant. There the gas is treated to remove moisture and any fine particles before the gas is fed into a converted diesel engine attached to a turbine for generating electricity with the power produced supplied to the utility distribution system. A typical generating plant comprises several gas engine generator sets. Power is generated at 415 volts with a transformer installed on each generator set to increase voltage to 22,000 volts. The plant is electrically connected with the utility distribution system at 22,000 volts.
waste-to-energy ideas being investigated in our research and development programs which we think have great commercial potential.” Mr Pahor said that the quantity of organic waste material going into landfill continued to grow and was constantly being renewed. “Some may argue that landfill gas and coal seam methane are not renewable, but we must not lose sight of the objective of reducing greenhouse gas emissions,” he added. “The fact is that the fuel resource is there and it will be wasted if we don’t capture it. It isn’t feasible to pretend that we will suddenly stop producing garbage or mining coal. “Therefore, we must strive to utilise these resources as efficiently as possible and take all steps to mitigate the environmental impacts.” F O R M O R E I N F O R M AT I O N C O N TA C T:
Richard Edwards, finance director Energy Developments Ltd Telephone: 9283 9284 E-mail: [email protected]
A
major rehabilitation project at the old Ruby basalt quarry, 10 kilometres east of Leongatha, has been completed by Melbourne Metropolitan Quarries, a division of CSR Ltd. The project, costing $500,000, took 10 weeks. Rehabilitation work included extensive reshaping of 30 metre high, vertical rock faces, some of which were severely undercut and dangerous. The aim was to blend the quarry slopes into the surrounding topography using the overburden and weathered rock onsite. Computer models were used to assess the volumes of cut and fill required to achieve an appropriate landform. The quarry was originally closed in 1997 due to poor market conditions and the difficulty in extracting the remaining reserves. The lease with the land owner was re-negotiated to allow a two-year rehabilitation period starting in October, 1997. The rehabilitation aimed to achieve a final Before and After: Rehabilitation of dangerous landform that was stable and aesthetically rock faces at the Ruby quarry has restored much pleasing but also to allow a limited ongoing of the area to useable farmland and made safe use that was compatible with the surround- other areas of the former pit. ing grazing land. The earthworks, which commenced in January, 1998, were conducted by Roche Theiss Linfox Joint Venture, a local earthmoving contractor. During the restoration work, the finer material and topsoil was initially segregated and stockpiled at the sides of the quarry and used at the end of the project to enhance the revegetation of the slopes. As the quarry was subject to many free flowing natural groundwater springs and prone to landslides, several rock lined drainage channels were created through the quarry floor. This allowed the naturally occurring groundwater to drain away from the base of the fill material and ensured the stability of the final landform. Once the drainage channels were completed, larger rubble and weathered rock was placed to create the required slopes. Topsoil and finer material was then spread across the larger material and graded to create a smooth, even landform to allow rapid revegetation. The earthworks and shaping of the final landform were completed in approximately nine weeks. All the disturbed areas and newly created slopes were grassed using a combination of native and grazing species, including a combination of rye corn, fescues and other pastoral grasses . The quarry’s old crushing plant and stockpile areas were also reshaped and topsoiled. Due to the instability of the surrounding areas and the potential for landslides, it was important to ensure revegetation occurred immediately after the soils were disturbed to minimise erosion and impact from dust and sediment. To complete the project native trees and shrubs will be planted in Spring using help from local schools and community landcare groups. The site is one of several that have recently being rehabilitated by the CSR Melbourne Quarry Division under the co-ordination and management of the division’s resource and planning engineer, Sally Harle. 9
F O R M O R E I N F O R M AT I O N C O N TA C T:
Sally Harle, CSR Readymix Quarries Telephone (03) 9286 2666
EXPLORATION ACTIVITIES
EXPLORATION ACTIVITIES
More good news for explorers
F
urther exploration at Mt Wellington, 150 km east of Melbourne, by New Holland Mining NL, has thrown up more exciting results with a dramatic expansion of the known mineralised area. A substantial 24-hole reverse circulation drill program late in autumn produced a large number of encouraging intersections of gold bearing rock, expanding the known mineralised zone to 300 metres along strike and 50 metres wide. The Hill 800 discovery remains open along strike, to either side, north east and south west and at depth. Best results from the drilling program included a 25 metre intersection grading an average of 5.96 grams of gold per tonne, although grades of up to 75 g/t were encountered. But the onset of winter rain made further field work impossible at the main target Hill 800 zone, with the company now concentrating on analysing the results of its latest drilling program. The Mt Wellington exploration program is significant in that it has opened up a new type of exploration play in Victoria with large areas of Cambrian age volcanic rocks exposed at the surface within the two tenements being explored.
Quartz outcrops exposed during road cutting operations on New Holland’s Hill 800 area show the intensity of mineralisation.
Principal targets in the area are gold bearing massive sulphide deposits with base metals, including copper lead and zinc. In the latest drilling program, 24 holes were drilled for a total length of 1207 metres. The program followed an earlier 10-hole program in which the best intersection recorded was of 35 metres grading an average of 4.1 g/t was recorded in the very first hole. Copper values of up to 1 per cent and zinc at 0.27 per cent was also encountered along with indications of lead. The Mount Wellington region is considered significant for the occurrence of the Barkly River Greenstone rocks in several locations indicating potential for substantial gold and base metal deposits. It is these targets New Holland Mining is currently chasing. Copper/gold mineralisation at the Hill 800 location has been identified in a volcanic hosted massive sulphide formation with potential for a similar gold VHMS target at a nearby location called Long Ridge. Anomalous copper values were also found at a third location, Mike’s Bluff. The first drilling in 1996 produced some encouraging signs, enhanced by a second round of drilling last year. The latest program has now significantly extended the mineralised zone at Hill 800 with more drilling planned in the Spring to follow up the recent results. New Holland managing director Alan Fraser, said the drilling results had provided, “great encouragement.” Several new tracks have been cut along contours around the Hill 800 location, with some positive signs located along the ‘Minister’s Track’.
Above: Reverse circulation drilling over the summer on Hill 800 provided new impetus to the exploration program, indicating the potential for a major new gold and base metals province in north eastern Victoria.
Intense quartz vein systems, featuring tight folding, were located at surface as the track was being cut, indicating significant potential for future drilling.
Right: Alan Fraser checks a Hill 800 Gossan new exposure.
10
Table 1 - Calculated zones of gold mineralisation (using a 0.5 gm/t gold cut-off) Hole
From (M)
To (M)
Intersection (M)
Au (ppm)
HEC12
7.0
20.0
13.0
1.39
HEC12 HEC12
71.0 90.0
72.0 95.0
1.0 5.0
1.18 5.74
HEC13 HEC14 HEC15
0.0 18.0 0.0
25.0 29.0 9.0
25.0 11.0 9.0
5.96 0.53 0.53
HEC15 HEC17
24.0 56.0
25.0 73.0
1.0 17.0
1.11 1.29
HEC18 HEC19 HEC20 HEC23
36.0 0.0 0.0 4.0
60.0 15.0 6.0 12.0
24.0 15.0 6.0 8.0
1.32 1.00 0.49 1.02
HEC23
18.0
22.0
4.0
1.25
HEC23 HEC24 HEC24 HEC24 HEC25
24.0 1.0 30.0 40.0 0.0
28.0 27.0 36.0 47.0 6.0
4.0 26.0 6.0 7.0 6.0
2.09 1.50 1.23 0.82 5.00
HEC26
19.0
20.0
1.0
1.08
HEC27
0.0
9.0
9.0
1.12
HEC27 HEC27
15.0 36.0
17.0 38.0
2.0 2.0
1.04 19.60
HEC28 HEC33
1.0 43.0
2.0 44.0
1.0 1.0
2.45 1.37
11
All holes in this program were drilled vertically to test the proposed mineralisation model of a shallow to moderately, northwest dipping structure, with a south-westerly strike. The mineralisation is hosted by strongly sericite-silica-pyrite altered andesitic lavas and volcaniclastic sediments of Cambrian age - copper, zinc and lead sulphides are accessory minerals. The mineralisation/alteration envelope is oblique to the regional stratigraphy in the Hill 800 area and has been subjected to minor cross faulting. Some holes were stopped within zones of strong pyrite mineralisation due to high water inflows or slow penetration rates. This shallow drilling program was designed to test the model near surface, with holes testing the down dip extensions to be drilled on confirmation of the model. Drilling further along strike and down dip will continue when exploration resumes after the winter break.
F O R M O R E I N F O R M AT I O N C O N TA C T:
Alan Fraser, managing director New Holland Mining NL Telephone (03) 9614 0600 e-mail [email protected]
EXPLORATION ACTIVITIES
EXPLORATION ACTIVITIES
More good news for explorers
F
urther exploration at Mt Wellington, 150 km east of Melbourne, by New Holland Mining NL, has thrown up more exciting results with a dramatic expansion of the known mineralised area. A substantial 24-hole reverse circulation drill program late in autumn produced a large number of encouraging intersections of gold bearing rock, expanding the known mineralised zone to 300 metres along strike and 50 metres wide. The Hill 800 discovery remains open along strike, to either side, north east and south west and at depth. Best results from the drilling program included a 25 metre intersection grading an average of 5.96 grams of gold per tonne, although grades of up to 75 g/t were encountered. But the onset of winter rain made further field work impossible at the main target Hill 800 zone, with the company now concentrating on analysing the results of its latest drilling program. The Mt Wellington exploration program is significant in that it has opened up a new type of exploration play in Victoria with large areas of Cambrian age volcanic rocks exposed at the surface within the two tenements being explored.
Quartz outcrops exposed during road cutting operations on New Holland’s Hill 800 area show the intensity of mineralisation.
Principal targets in the area are gold bearing massive sulphide deposits with base metals, including copper lead and zinc. In the latest drilling program, 24 holes were drilled for a total length of 1207 metres. The program followed an earlier 10-hole program in which the best intersection recorded was of 35 metres grading an average of 4.1 g/t was recorded in the very first hole. Copper values of up to 1 per cent and zinc at 0.27 per cent was also encountered along with indications of lead. The Mount Wellington region is considered significant for the occurrence of the Barkly River Greenstone rocks in several locations indicating potential for substantial gold and base metal deposits. It is these targets New Holland Mining is currently chasing. Copper/gold mineralisation at the Hill 800 location has been identified in a volcanic hosted massive sulphide formation with potential for a similar gold VHMS target at a nearby location called Long Ridge. Anomalous copper values were also found at a third location, Mike’s Bluff. The first drilling in 1996 produced some encouraging signs, enhanced by a second round of drilling last year. The latest program has now significantly extended the mineralised zone at Hill 800 with more drilling planned in the Spring to follow up the recent results. New Holland managing director Alan Fraser, said the drilling results had provided, “great encouragement.” Several new tracks have been cut along contours around the Hill 800 location, with some positive signs located along the ‘Minister’s Track’.
Above: Reverse circulation drilling over the summer on Hill 800 provided new impetus to the exploration program, indicating the potential for a major new gold and base metals province in north eastern Victoria.
Intense quartz vein systems, featuring tight folding, were located at surface as the track was being cut, indicating significant potential for future drilling.
Right: Alan Fraser checks a Hill 800 Gossan new exposure.
10
Table 1 - Calculated zones of gold mineralisation (using a 0.5 gm/t gold cut-off) Hole
From (M)
To (M)
Intersection (M)
Au (ppm)
HEC12
7.0
20.0
13.0
1.39
HEC12 HEC12
71.0 90.0
72.0 95.0
1.0 5.0
1.18 5.74
HEC13 HEC14 HEC15
0.0 18.0 0.0
25.0 29.0 9.0
25.0 11.0 9.0
5.96 0.53 0.53
HEC15 HEC17
24.0 56.0
25.0 73.0
1.0 17.0
1.11 1.29
HEC18 HEC19 HEC20 HEC23
36.0 0.0 0.0 4.0
60.0 15.0 6.0 12.0
24.0 15.0 6.0 8.0
1.32 1.00 0.49 1.02
HEC23
18.0
22.0
4.0
1.25
HEC23 HEC24 HEC24 HEC24 HEC25
24.0 1.0 30.0 40.0 0.0
28.0 27.0 36.0 47.0 6.0
4.0 26.0 6.0 7.0 6.0
2.09 1.50 1.23 0.82 5.00
HEC26
19.0
20.0
1.0
1.08
HEC27
0.0
9.0
9.0
1.12
HEC27 HEC27
15.0 36.0
17.0 38.0
2.0 2.0
1.04 19.60
HEC28 HEC33
1.0 43.0
2.0 44.0
1.0 1.0
2.45 1.37
11
All holes in this program were drilled vertically to test the proposed mineralisation model of a shallow to moderately, northwest dipping structure, with a south-westerly strike. The mineralisation is hosted by strongly sericite-silica-pyrite altered andesitic lavas and volcaniclastic sediments of Cambrian age - copper, zinc and lead sulphides are accessory minerals. The mineralisation/alteration envelope is oblique to the regional stratigraphy in the Hill 800 area and has been subjected to minor cross faulting. Some holes were stopped within zones of strong pyrite mineralisation due to high water inflows or slow penetration rates. This shallow drilling program was designed to test the model near surface, with holes testing the down dip extensions to be drilled on confirmation of the model. Drilling further along strike and down dip will continue when exploration resumes after the winter break.
F O R M O R E I N F O R M AT I O N C O N TA C T:
Alan Fraser, managing director New Holland Mining NL Telephone (03) 9614 0600 e-mail [email protected]
REGULAR FEATURE
REGULAR FEATURE
Industry News ESSO SAFETY MILESTONE
Resources Minister Pat McNamara checks out the safety facilities on the Bass Strait oil rigs.
Esso Australia recently passed a major safety milestone winning it a global safety award from the parent company Exxon Co of New Jersey. Esso’s Bass Strait and associated Gippsland petroleum operations passed five million working hours without a lost time injury accident to either staff or any of the company’s contractors. That represents more than a working year without a lost time injury accident. An Esso spokesperson said the award was a major “feather in the cap” for the company’s Australian operations.
NEW ADVISORY BOARD Victoria’s Minister for Agriculture and Resources Pat McNamara, has formed an extractive and mining industry advisory board to provide advice and recommendations to the Government in a bid to boost the economic contribution from these sectors. All aspects of the industry will be considered including health and safety, environmental management, profitability, research, exploration, planning, development, production and processing. The Minister will chair the board which will include members from the Victorian Chamber of Mines, the Prospectors and Miners Association of Victoria, the Extractive Industries Association, Crushed Stone Association, Sand Producers Association and the Clay Brick and Paver Association. The new board will replace the Mining Industry Consultative Group which has provided a forum for industry groups in the past.
FASTER WORK PLAN APPROVALS Processing mining work plans has been accelerated with a dramatic reduction in the turnaround time for work plan approvals lodged with the Department of Natural Resources and Environment. The system, introduced in north-west Victoria last December, has proved extremely successful for both the (DNRE) programs and customers. A six -month trial of the new Mining Work Plan process has shortened the period required for approval of a plan from an average of 120 days to just 31.6 days from the date the Work Plan is received.
Industry News
Under the Mineral Resources Development Act 1990, before any work starts, mining companies are required to provide, for approval by DNRE, a detailed description, known as the work plan, of the proposed mining operations. This provides details of key operational features such as the method used for mining, the land area disturbed and the ore treatment and rehabilitation plans. The new process allows a better use of specialist information within DNRE, a smooth transfer of responsibility, early consultation and identification of major issues, open communication, effective comment on issues of significance and ultimately a comprehensive work plan that addresses all of the work and environmental issues. The Mining Work Plan Process was developed by DNRE staff in North West Victoria after reviewing the existing system. A quality assurance program is near completion to ensure that Mining Work Plan approvals continue to be streamlined with guaranteed outcomes concentrating on customer service.
RMIT STUDY DEAL RMIT University has signed an historic agreement with one of Europe’s most prestigious mining institutions, the Frieberg University of Mining and Technology in Germany, for selected engineering students to study at the partner institution. 12
The deal comes four months after a visit to Frieberg by associate professors John Brumley and Warren Peck of RMIT University’s faculty of Engineering’s department of civil and geological engineering to present lectures to doctoral research students at Frieberg on the complex technical and environmental aspects of mining in Australia. Under the RMIT/Frieberg agreement, third year under-graduate geological, civil and environmental engineering and applied geology students at RMIT will be able to include one or two semesters of study at Frieberg as part of their course with similar arrangements for Frieberg students. RMIT’s head of Civil and Geological Engineering, Professor Arun Kumar, said the specialised undergraduate courses and post graduate research in geological and environmental engineering at Frieberg are also core strengths at RMIT. “There is a strong parallel between RMIT and Frieberg, as both universities have expanded their expertise from long established mining traditions into the multi-disciplinary world of the twenty-first century,” Prof Kumar said.
STAWELL GOLD TO RESUME OPEN PIT OPERATIONS Stawell Gold Mines plans to restart open pit operations at the Big Hill mine after new exploration revealed almost 300,000 ounces of gold at the Allens, Mariners and Iron Duke deposits. An Environmental Effects Statement is to be prepared by the Stawell Gold Mines joint venture for the project. The new pit will be opened to the north of the existing Davis open cut and may include an extension of the Wonga pit, both previously mined by SGM. Ore from the new project will be trucked to the existing plant and being located at the surface is generally oxidised and will be free milling, allowing low cost gold recovery. The Stawell gold mine is Victoria’s largest gold producer, generating around 80,000 ounces a year. But like all gold mines Stawell has been hit hard by the falling gold price. The move to open pit operations will help reduce the mine’s overall gold recovery costs and helping
to assure a long term future for the mine. The mine is already a major economic force in the Stawell region with at least 44 per cent, equivalent to $19 million, of the mine’s total cash payments distributed locally each year. A further 26 per cent, or $11 million, is spent within Victoria. The new gold resource is partially located beneath the existing Davis open cut and includes the Big Hill area. To ensure the timely approval of the new project and the satisfaction of all environmental issues SGM will commission studies into the effects of noise, air quality, vibration from blasting, visual impacts, rehabilitation of the land, waste and water management, aboriginal and european heritage issues, traffic and transport impacts, hazards and risk, flora and fauna effects and existing land uses
INTERNATIONAL PROMOTION Two officers from the Petroleum Development Group of Minerals and Petroleum Victoria travelled to Canada and the US recently promoting Victorian petroleum exploration acreage opportunities. The prime venue was the American Association of Petroleum Geologists (AAPG) convention, held this year in Salt Lake City. The AAPG convention is the biggest oil and gas exploration convention in the world, attended this year by over 6,300 delegates. By comparison, the equivalent Australian conference attracts attendances of about 1000.. A key convention feature for the MPV contingent was the convention’s International Pavilion which was reserved for countries to promote their acreage. The Australian contingent provided a strong presence, thanks to planning which started at the end of last year’s convention. The Australian display booths were placed together and had unifying banners. Officers staff the booths wore distinctive ‘team’shirts so that a clear Australian identity was assured. Attendance at the Victorian display was solid with over 60 visits and 10 to 15 serious expressions of interest. Potential investors were exposed to Victoria’s significant advantages over other areas in terms of its markets and infrastructure. Victoria’s petroleum basins are close to the Melbourne market which is currently 255
Petrajoules (PJ) and growing at 5% per year. Thanks to the Wodonga to Wagga Wagga pipeline, it is also now linked to the Sydney market which is 150 PJ and growing. The presence of the world-class Gippsland Basin oil and gas province on Melbourne’s doorstep for over 30 years has lead to substantial infrastructure, including pipelines, refineries and export facilities. In the west, a proposed pipeline will link the Otway Basin gas fields to Melbourne. In addition, the soon-to-be-privatised gas utilities will be seeking gas supply diversity to ensure security of supply, thus providing opportunities for new players in the industry. Large tracts of acreage with significant potential for both oil and gas, mainly in the Otway Basin but also in Gippsland, is available this year, as part of the largest ever release of Commonwealth acreage. MPV’s Petroleum Development Group has produced three sizeable VIMP reports highlighting the geology and hydrocarbon potential of the acreage. In addition to providing this information to explorers at the AAPG Convention, the MPV contingent sponsored and organised seminars in Calgary and Houston. These two cities are the centres of oil and gas exploration in Canada and the US respectively. The seminars gave an opportunity to present information to about 40 people based in those cities who were unable to attend the convention. The objective of these promotions was to attract players to Victorian oil and gas areas. Now that these international contacts have been established, they will be followed up to reinforce the fact that MPV can provide the information necessary for easy entry to acreage by providing in-house knowledge or of putting international and local companies in touch. There has been a high level of interest expressed in the acreage on offer already, with a record number of reports requested.
Natural gas supply is reaching more areas of country Victoria.
13
MILDURA GAS RETICULATION Gas reticulation in Mildura has moved a major step closer with the office of the Regulator General in Victoria releasing for public consultation the draft access arrangements for natural gas distribution in the region. The gas distribution networks from Berri in South Australia to Mildura will be built by Envestra Ltd at a cost of about $30 million. Envestra, a subsidiary of Boral Ltd, will be the first retailer of natural gas in the area after obtaining a retail licence from the Regulator General. Construction of the pipeline is expected to begin in September this year with the first gas expected to flow to premises in Mildura by the middle of next year. Boral Energy’s regional manager Ron James, said natural gas tariffs would be competitive with other forms of energy in the region.t empered LPG supplies in bottles until now. Envestra managing director Ollie Clark, said he was confident the complex issues involved in negotiating gas pipeline access arrangements would be completed soon through negotiations with the Australian Competition and Consumer Commission.
REGULAR FEATURE
REGULAR FEATURE
Industry News ESSO SAFETY MILESTONE
Resources Minister Pat McNamara checks out the safety facilities on the Bass Strait oil rigs.
Esso Australia recently passed a major safety milestone winning it a global safety award from the parent company Exxon Co of New Jersey. Esso’s Bass Strait and associated Gippsland petroleum operations passed five million working hours without a lost time injury accident to either staff or any of the company’s contractors. That represents more than a working year without a lost time injury accident. An Esso spokesperson said the award was a major “feather in the cap” for the company’s Australian operations.
NEW ADVISORY BOARD Victoria’s Minister for Agriculture and Resources Pat McNamara, has formed an extractive and mining industry advisory board to provide advice and recommendations to the Government in a bid to boost the economic contribution from these sectors. All aspects of the industry will be considered including health and safety, environmental management, profitability, research, exploration, planning, development, production and processing. The Minister will chair the board which will include members from the Victorian Chamber of Mines, the Prospectors and Miners Association of Victoria, the Extractive Industries Association, Crushed Stone Association, Sand Producers Association and the Clay Brick and Paver Association. The new board will replace the Mining Industry Consultative Group which has provided a forum for industry groups in the past.
FASTER WORK PLAN APPROVALS Processing mining work plans has been accelerated with a dramatic reduction in the turnaround time for work plan approvals lodged with the Department of Natural Resources and Environment. The system, introduced in north-west Victoria last December, has proved extremely successful for both the (DNRE) programs and customers. A six -month trial of the new Mining Work Plan process has shortened the period required for approval of a plan from an average of 120 days to just 31.6 days from the date the Work Plan is received.
Industry News
Under the Mineral Resources Development Act 1990, before any work starts, mining companies are required to provide, for approval by DNRE, a detailed description, known as the work plan, of the proposed mining operations. This provides details of key operational features such as the method used for mining, the land area disturbed and the ore treatment and rehabilitation plans. The new process allows a better use of specialist information within DNRE, a smooth transfer of responsibility, early consultation and identification of major issues, open communication, effective comment on issues of significance and ultimately a comprehensive work plan that addresses all of the work and environmental issues. The Mining Work Plan Process was developed by DNRE staff in North West Victoria after reviewing the existing system. A quality assurance program is near completion to ensure that Mining Work Plan approvals continue to be streamlined with guaranteed outcomes concentrating on customer service.
RMIT STUDY DEAL RMIT University has signed an historic agreement with one of Europe’s most prestigious mining institutions, the Frieberg University of Mining and Technology in Germany, for selected engineering students to study at the partner institution. 12
The deal comes four months after a visit to Frieberg by associate professors John Brumley and Warren Peck of RMIT University’s faculty of Engineering’s department of civil and geological engineering to present lectures to doctoral research students at Frieberg on the complex technical and environmental aspects of mining in Australia. Under the RMIT/Frieberg agreement, third year under-graduate geological, civil and environmental engineering and applied geology students at RMIT will be able to include one or two semesters of study at Frieberg as part of their course with similar arrangements for Frieberg students. RMIT’s head of Civil and Geological Engineering, Professor Arun Kumar, said the specialised undergraduate courses and post graduate research in geological and environmental engineering at Frieberg are also core strengths at RMIT. “There is a strong parallel between RMIT and Frieberg, as both universities have expanded their expertise from long established mining traditions into the multi-disciplinary world of the twenty-first century,” Prof Kumar said.
STAWELL GOLD TO RESUME OPEN PIT OPERATIONS Stawell Gold Mines plans to restart open pit operations at the Big Hill mine after new exploration revealed almost 300,000 ounces of gold at the Allens, Mariners and Iron Duke deposits. An Environmental Effects Statement is to be prepared by the Stawell Gold Mines joint venture for the project. The new pit will be opened to the north of the existing Davis open cut and may include an extension of the Wonga pit, both previously mined by SGM. Ore from the new project will be trucked to the existing plant and being located at the surface is generally oxidised and will be free milling, allowing low cost gold recovery. The Stawell gold mine is Victoria’s largest gold producer, generating around 80,000 ounces a year. But like all gold mines Stawell has been hit hard by the falling gold price. The move to open pit operations will help reduce the mine’s overall gold recovery costs and helping
to assure a long term future for the mine. The mine is already a major economic force in the Stawell region with at least 44 per cent, equivalent to $19 million, of the mine’s total cash payments distributed locally each year. A further 26 per cent, or $11 million, is spent within Victoria. The new gold resource is partially located beneath the existing Davis open cut and includes the Big Hill area. To ensure the timely approval of the new project and the satisfaction of all environmental issues SGM will commission studies into the effects of noise, air quality, vibration from blasting, visual impacts, rehabilitation of the land, waste and water management, aboriginal and european heritage issues, traffic and transport impacts, hazards and risk, flora and fauna effects and existing land uses
INTERNATIONAL PROMOTION Two officers from the Petroleum Development Group of Minerals and Petroleum Victoria travelled to Canada and the US recently promoting Victorian petroleum exploration acreage opportunities. The prime venue was the American Association of Petroleum Geologists (AAPG) convention, held this year in Salt Lake City. The AAPG convention is the biggest oil and gas exploration convention in the world, attended this year by over 6,300 delegates. By comparison, the equivalent Australian conference attracts attendances of about 1000.. A key convention feature for the MPV contingent was the convention’s International Pavilion which was reserved for countries to promote their acreage. The Australian contingent provided a strong presence, thanks to planning which started at the end of last year’s convention. The Australian display booths were placed together and had unifying banners. Officers staff the booths wore distinctive ‘team’shirts so that a clear Australian identity was assured. Attendance at the Victorian display was solid with over 60 visits and 10 to 15 serious expressions of interest. Potential investors were exposed to Victoria’s significant advantages over other areas in terms of its markets and infrastructure. Victoria’s petroleum basins are close to the Melbourne market which is currently 255
Petrajoules (PJ) and growing at 5% per year. Thanks to the Wodonga to Wagga Wagga pipeline, it is also now linked to the Sydney market which is 150 PJ and growing. The presence of the world-class Gippsland Basin oil and gas province on Melbourne’s doorstep for over 30 years has lead to substantial infrastructure, including pipelines, refineries and export facilities. In the west, a proposed pipeline will link the Otway Basin gas fields to Melbourne. In addition, the soon-to-be-privatised gas utilities will be seeking gas supply diversity to ensure security of supply, thus providing opportunities for new players in the industry. Large tracts of acreage with significant potential for both oil and gas, mainly in the Otway Basin but also in Gippsland, is available this year, as part of the largest ever release of Commonwealth acreage. MPV’s Petroleum Development Group has produced three sizeable VIMP reports highlighting the geology and hydrocarbon potential of the acreage. In addition to providing this information to explorers at the AAPG Convention, the MPV contingent sponsored and organised seminars in Calgary and Houston. These two cities are the centres of oil and gas exploration in Canada and the US respectively. The seminars gave an opportunity to present information to about 40 people based in those cities who were unable to attend the convention. The objective of these promotions was to attract players to Victorian oil and gas areas. Now that these international contacts have been established, they will be followed up to reinforce the fact that MPV can provide the information necessary for easy entry to acreage by providing in-house knowledge or of putting international and local companies in touch. There has been a high level of interest expressed in the acreage on offer already, with a record number of reports requested.
Natural gas supply is reaching more areas of country Victoria.
13
MILDURA GAS RETICULATION Gas reticulation in Mildura has moved a major step closer with the office of the Regulator General in Victoria releasing for public consultation the draft access arrangements for natural gas distribution in the region. The gas distribution networks from Berri in South Australia to Mildura will be built by Envestra Ltd at a cost of about $30 million. Envestra, a subsidiary of Boral Ltd, will be the first retailer of natural gas in the area after obtaining a retail licence from the Regulator General. Construction of the pipeline is expected to begin in September this year with the first gas expected to flow to premises in Mildura by the middle of next year. Boral Energy’s regional manager Ron James, said natural gas tariffs would be competitive with other forms of energy in the region.t empered LPG supplies in bottles until now. Envestra managing director Ollie Clark, said he was confident the complex issues involved in negotiating gas pipeline access arrangements would be completed soon through negotiations with the Australian Competition and Consumer Commission.
LICENCE REVIEW
SPECIAL FEATURE
Mineral Licences
New Bendigo heads down
EXPLORATION LICENCES GRANTED APRIL/JUNE 1998 TITLE NO.
STATUS
EVENT
MAP
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EL 4267 EL 4292 EL 4164 EL 4287 EL 4286 EL 4285 EL 4284 EL 4283 EL 4282 EL 4253 EL 4186 EL 4279 EL 4235 EL 4250 EL 4249 EL 4268 EL 4265 EL 4271 EL 4298 EL 4307 EL 4308 EL 4270 EL 4260 EL 4243 EL 4242 EL 4244 EL 4275 EL 4300
CANAM CURRENT SURR CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CANAM CANAM CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT
GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT
DUNOLLY DUNOLLY MURRUNGOWAR BALMORAL BALMORAL EDENHOPE NATIMUK GOROKE NATIMUK DUNOLLY BENDOC RUPANYUP CASTLEMAINE BEAUFORT BEAUFORT BACCHUS MARSH CASTLEMAINE ALBURY DUNOLLY CASTLEMAINE CASTLEMAINE YEA BACCHUS MARSH LINDSAY ROBINVALE PINNAROO CASTERTON DUNOLLY
CENTRAL VICTORIAN GOLD NL PLAYFORD RESOURCES NL MR B MCLENNAN BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL SPEHR HOLDINGS PTY LTD ACTION MINING (AUST) P/L STAWELL GOLD MINES PTY LTD DUKETON GOLDFIELDS NL SEDIMENTARY HOLDINGS NL SEDIMENTARY HOLDINGS NL MR DANIEL G TOOHEY GOLDMINCO NL HIGHLAKE RESOURCES NL PLAYFORD RESOURCES NL HIGHLAKE RESOURCES NL HIGHLAKE RESOURCES NL RANGE RIVER GOLD NL GOLDEN HILLS MINING NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL GOLDEN TRIANGLE RESOURCES NL HIGHLAKE RESOURCES NL
02/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 07/05/98 07/05/98 14/05/98 14/05/98 21/05/98 21/05/98 21/05/98 21/05/98 29/05/98 29/05/98 4/06/98 04/06/98 11/06/98 11/06/98 18/06/98 18/06/98 18/06/98 26/06/98 26/06/98
02/04/98 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 07/05/2000 07/05/2000 14/05/2000 14/05/2000 21/05/2000 21/05/2000 21/05/2000 21/05/2000 29/05/2000 29/05/2000 04/06/1998 04/06/1998 11/06/2000 11/06/2000 18/06/2000 18/06/2000 18/06/2000 26/06/2000 26/06/2000
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EL 3362 EL 3139 EL 4010 EL 3816 EL 4164 EL 3253 EL 3817 EL 3873 EL 3353 EL 3600 EL 3464 EL 3964 EL 4205 EL 4215 EL 3940 EL 4186 EL 4013 EL 3842
CANCELLED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED CANCELLED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED
DUNOLLY BEAUFORT ARARAT BENDOC MURRUNGOWAR ST ARNAUD ST ARNAUD CRESWICK ST ARNAUD MANSFIELD BENDOC DUNOLLY CASTLEMAINE CASTLEMAINE BALMORAL BENDOC GRAIGIE BENDOC
GREYFIELD PTY LTD HIGHLAKE RESOURCES NL WARREN JAY HOLDINGS P/L ZEPHYR MINERALS NL MR B MCLENNAN INTERNATIONAL MINERAL RESOURCES NL INTERNATIONAL MINERAL RESOURCES NL MR JOHN E RISINGER FOUR PROSPECT PTY LTD RIDGE CREST PTY LTD ZEPHYR MINERALS NL TALAGER PTY LTD TARGET MINING CORPORATION LTD TARGET MINING CORPORATION LTD AUSTRALIAN GOLD DEVELOPMENT NL ACTION MINING (AUSTRALIA) PTY LTD ACTION MINING (AUSTRALIA) PTY LTD PACIFIC MINERALS PTY LTD
14/04/98 14/04/98 20/04/98 14/05/98 21/05/98 21/05/98 21/05/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 11/06/98 18/06/98 18/06/98 26/06/98
14/04/98 14/04/98 20/04/98 14/05/98 21/05/98 21/05/98 21/05/98 4/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 11/06/98 18/06/98 18/06/98 26/06/98
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MIN 5215 MIN 5220 MIN 5123 MIN 5226 MIN 5225 MIN 5203
CURRENT CURRENT CURRENT CURRENT CURRENT CANAM
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OUYEN DUNOLLY NHILL NHILL NHILL HOPETOUN
MR DARREN B MOLE MRS HEATHER FORD MR GREG WALKER GRAEME BOND GRAEME BOND W E BROWN
02/04/98 23/04/98 14/05/98 18/06/98 18/06/98 26/06/98
02/04/2006 23/04/2003 14/05/2008 18/06/2018 18/06/2018 26/06/1998
TITLE NO.
STATUS
MIN 4997 MIN 5218 MIN 5024 MAL 39 MIN 5122 MIN 4822 MIN 4821 MIN 4820 MIN 4819 MIN 4802 MIN 4372 MIN 4822 MIN 4821 MIN 4819 MIN 4802 MIN 4820 MIN 4372 ABBREVIATIONS:
SURR HEATHCOTE MR B MCLENNAN SURR TALBOT MR D BOYOVSKI SURR DEREE MR M C COX SURR MATLOCK FINE GOLD NL SURR CRESWICK (M COX & M SPENCE) T/A TRI-MINING SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR SWANWATER NORTH INTERNATIONAL MINERAL RESOURCES SURR ST ARNAUD NORTH INTERNATIONAL MINERAL RESOURCES SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR SWANWATER NTH INTERNATIONAL MINERAL RESOURCES NL SURR MATLOCK PLUTONIC OPERATIONS LTD SURR SWANWATER NTH INTERNATIONAL MINERAL RESOURCES N SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED
B
endigo Mining has begun work on its New Bendigo Goldfield - a move hailed by the Minister for Agriculture and Natural Resources, Pat McNamara, and the Victorian Chamber of Mines as a “tremendous event” for Victoria’s mining industry. The first phase of the project is the construction of a 4.2 kilometre decline to tap into a potential 10 million ounce gold resource under the city. The project has given a significant boost to the Victorian mining industry.
Major new projects are also underway at Ballarat while the well established, MPI Ltd, continues to operate the state’s biggest gold mine at Stawell in the state’s north west. Bendigo Mining managing director, Doug Buerger, said work was already underway to clear the site at Kangaroo flat and erect security fencing before moving in excavators to start the box cut for the decline. The Deborah decline, named after one of Bendigo’s most famous mines, will take two years to construct to its original target depth of 650 metres.
EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED APRIL/JUNE 1998
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EVENT DATE
EXPIRY DATE
30/04/98 30/04/98 07/05/98 14/05/98 14/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98
30/04/98 30/04/98 07/05/98 14/05/98 14/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98
It will start in the southern part of the New Bendigo field, accessing the well-known and previously productive Napoleon, Nelle Gwynn, New Chum, Sheepshead and Deborah lines of reef before testing deeper, expected repetitions of the reef structures. The deeper, unmined ribbons of reef are expected to be encountered at between 600m to 800 metres vertical depth. Agriculture and Resources Minister Pat McNamara, who gave the go-ahead for the project, welcomed the development. “This is a great step forward in the resurgence of mining in Victoria,” he said. “I believe it will show the way to other mining companies considering redevelopment of Victoria’s historic goldfields. “The government remains strongly committed to encourage development in Victoria and will support responsible and valuable projects such as the New Bendigo development.” Retiring Victorian Chamber of Mines executive director, John Reynolds, also welcomed the work start. “This is a tremendous event for Victoria,” he said. “In the past, Bendigo has produced 22 million ounces of gold which today would be worth $45 billion. “It was a powerful engine which propelled Victoria into its position as the financial hub of Australia.” Mr Reynolds said the decision to start work would “lift the confidence of the community and investors in Victoria’s mineral resources and bring a range of benefits to the state.” The modern exploration of the Bendigo field started more than 20 years ago when mining major, WMC Ltd, spent a large amount of capital and time amalgamating all of the formerly fragmented Bendigo field mining and exploration leases. WMC then accumulated huge volumes of known data to help generate an overall picture of the field to determine its regional geology. Much of that work has formed the basis of subsequent efforts to unlock the secrets of the geologically complex goldfield. The Central Deborah mine, now a popular tourist attraction, may become the symbol of Bendigo’s rebirth as a major gold producing area. F O R M O R E I N F O R M AT I O N C O N TA C T:
Doug Buerger, President Victorian Chamber of Mines Telephone (03) 5447 1834
17
LICENCE REVIEW
SPECIAL FEATURE
Mineral Licences
New Bendigo heads down
EXPLORATION LICENCES GRANTED APRIL/JUNE 1998 TITLE NO.
STATUS
EVENT
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4267 EL 4292 EL 4164 EL 4287 EL 4286 EL 4285 EL 4284 EL 4283 EL 4282 EL 4253 EL 4186 EL 4279 EL 4235 EL 4250 EL 4249 EL 4268 EL 4265 EL 4271 EL 4298 EL 4307 EL 4308 EL 4270 EL 4260 EL 4243 EL 4242 EL 4244 EL 4275 EL 4300
CANAM CURRENT SURR CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CANAM CANAM CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT
GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT GRANT
DUNOLLY DUNOLLY MURRUNGOWAR BALMORAL BALMORAL EDENHOPE NATIMUK GOROKE NATIMUK DUNOLLY BENDOC RUPANYUP CASTLEMAINE BEAUFORT BEAUFORT BACCHUS MARSH CASTLEMAINE ALBURY DUNOLLY CASTLEMAINE CASTLEMAINE YEA BACCHUS MARSH LINDSAY ROBINVALE PINNAROO CASTERTON DUNOLLY
CENTRAL VICTORIAN GOLD NL PLAYFORD RESOURCES NL MR B MCLENNAN BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL SPEHR HOLDINGS PTY LTD ACTION MINING (AUST) P/L STAWELL GOLD MINES PTY LTD DUKETON GOLDFIELDS NL SEDIMENTARY HOLDINGS NL SEDIMENTARY HOLDINGS NL MR DANIEL G TOOHEY GOLDMINCO NL HIGHLAKE RESOURCES NL PLAYFORD RESOURCES NL HIGHLAKE RESOURCES NL HIGHLAKE RESOURCES NL RANGE RIVER GOLD NL GOLDEN HILLS MINING NL BASIN MINERALS NL BASIN MINERALS NL BASIN MINERALS NL GOLDEN TRIANGLE RESOURCES NL HIGHLAKE RESOURCES NL
02/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 30/04/98 07/05/98 07/05/98 14/05/98 14/05/98 21/05/98 21/05/98 21/05/98 21/05/98 29/05/98 29/05/98 4/06/98 04/06/98 11/06/98 11/06/98 18/06/98 18/06/98 18/06/98 26/06/98 26/06/98
02/04/98 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 30/04/2000 07/05/2000 07/05/2000 14/05/2000 14/05/2000 21/05/2000 21/05/2000 21/05/2000 21/05/2000 29/05/2000 29/05/2000 04/06/1998 04/06/1998 11/06/2000 11/06/2000 18/06/2000 18/06/2000 18/06/2000 26/06/2000 26/06/2000
TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 3362 EL 3139 EL 4010 EL 3816 EL 4164 EL 3253 EL 3817 EL 3873 EL 3353 EL 3600 EL 3464 EL 3964 EL 4205 EL 4215 EL 3940 EL 4186 EL 4013 EL 3842
CANCELLED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED CANCELLED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED
DUNOLLY BEAUFORT ARARAT BENDOC MURRUNGOWAR ST ARNAUD ST ARNAUD CRESWICK ST ARNAUD MANSFIELD BENDOC DUNOLLY CASTLEMAINE CASTLEMAINE BALMORAL BENDOC GRAIGIE BENDOC
GREYFIELD PTY LTD HIGHLAKE RESOURCES NL WARREN JAY HOLDINGS P/L ZEPHYR MINERALS NL MR B MCLENNAN INTERNATIONAL MINERAL RESOURCES NL INTERNATIONAL MINERAL RESOURCES NL MR JOHN E RISINGER FOUR PROSPECT PTY LTD RIDGE CREST PTY LTD ZEPHYR MINERALS NL TALAGER PTY LTD TARGET MINING CORPORATION LTD TARGET MINING CORPORATION LTD AUSTRALIAN GOLD DEVELOPMENT NL ACTION MINING (AUSTRALIA) PTY LTD ACTION MINING (AUSTRALIA) PTY LTD PACIFIC MINERALS PTY LTD
14/04/98 14/04/98 20/04/98 14/05/98 21/05/98 21/05/98 21/05/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 11/06/98 18/06/98 18/06/98 26/06/98
14/04/98 14/04/98 20/04/98 14/05/98 21/05/98 21/05/98 21/05/98 4/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 04/06/98 11/06/98 18/06/98 18/06/98 26/06/98
TITLE NO.
STATUS
EVENT
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
MIN 5215 MIN 5220 MIN 5123 MIN 5226 MIN 5225 MIN 5203
CURRENT CURRENT CURRENT CURRENT CURRENT CANAM
GRANT GRANT GRANT GRANT GRANT GRANT
OUYEN DUNOLLY NHILL NHILL NHILL HOPETOUN
MR DARREN B MOLE MRS HEATHER FORD MR GREG WALKER GRAEME BOND GRAEME BOND W E BROWN
02/04/98 23/04/98 14/05/98 18/06/98 18/06/98 26/06/98
02/04/2006 23/04/2003 14/05/2008 18/06/2018 18/06/2018 26/06/1998
TITLE NO.
STATUS
MIN 4997 MIN 5218 MIN 5024 MAL 39 MIN 5122 MIN 4822 MIN 4821 MIN 4820 MIN 4819 MIN 4802 MIN 4372 MIN 4822 MIN 4821 MIN 4819 MIN 4802 MIN 4820 MIN 4372 ABBREVIATIONS:
SURR HEATHCOTE MR B MCLENNAN SURR TALBOT MR D BOYOVSKI SURR DEREE MR M C COX SURR MATLOCK FINE GOLD NL SURR CRESWICK (M COX & M SPENCE) T/A TRI-MINING SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR SWANWATER NORTH INTERNATIONAL MINERAL RESOURCES SURR ST ARNAUD NORTH INTERNATIONAL MINERAL RESOURCES SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR MATLOCK PLUTONIC OPERATIONS LTD SURR SWANWATER NTH INTERNATIONAL MINERAL RESOURCES NL SURR MATLOCK PLUTONIC OPERATIONS LTD SURR SWANWATER NTH INTERNATIONAL MINERAL RESOURCES N SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED
B
endigo Mining has begun work on its New Bendigo Goldfield - a move hailed by the Minister for Agriculture and Natural Resources, Pat McNamara, and the Victorian Chamber of Mines as a “tremendous event” for Victoria’s mining industry. The first phase of the project is the construction of a 4.2 kilometre decline to tap into a potential 10 million ounce gold resource under the city. The project has given a significant boost to the Victorian mining industry.
Major new projects are also underway at Ballarat while the well established, MPI Ltd, continues to operate the state’s biggest gold mine at Stawell in the state’s north west. Bendigo Mining managing director, Doug Buerger, said work was already underway to clear the site at Kangaroo flat and erect security fencing before moving in excavators to start the box cut for the decline. The Deborah decline, named after one of Bendigo’s most famous mines, will take two years to construct to its original target depth of 650 metres.
EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED APRIL/JUNE 1998
MINING LICENCES GRANTED APRIL/JUNE 1998
MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED APRIL/JUNE 1998 MAP
PRIMARY OWNER
16
EVENT DATE
EXPIRY DATE
30/04/98 30/04/98 07/05/98 14/05/98 14/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98
30/04/98 30/04/98 07/05/98 14/05/98 14/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98 29/05/98
It will start in the southern part of the New Bendigo field, accessing the well-known and previously productive Napoleon, Nelle Gwynn, New Chum, Sheepshead and Deborah lines of reef before testing deeper, expected repetitions of the reef structures. The deeper, unmined ribbons of reef are expected to be encountered at between 600m to 800 metres vertical depth. Agriculture and Resources Minister Pat McNamara, who gave the go-ahead for the project, welcomed the development. “This is a great step forward in the resurgence of mining in Victoria,” he said. “I believe it will show the way to other mining companies considering redevelopment of Victoria’s historic goldfields. “The government remains strongly committed to encourage development in Victoria and will support responsible and valuable projects such as the New Bendigo development.” Retiring Victorian Chamber of Mines executive director, John Reynolds, also welcomed the work start. “This is a tremendous event for Victoria,” he said. “In the past, Bendigo has produced 22 million ounces of gold which today would be worth $45 billion. “It was a powerful engine which propelled Victoria into its position as the financial hub of Australia.” Mr Reynolds said the decision to start work would “lift the confidence of the community and investors in Victoria’s mineral resources and bring a range of benefits to the state.” The modern exploration of the Bendigo field started more than 20 years ago when mining major, WMC Ltd, spent a large amount of capital and time amalgamating all of the formerly fragmented Bendigo field mining and exploration leases. WMC then accumulated huge volumes of known data to help generate an overall picture of the field to determine its regional geology. Much of that work has formed the basis of subsequent efforts to unlock the secrets of the geologically complex goldfield. The Central Deborah mine, now a popular tourist attraction, may become the symbol of Bendigo’s rebirth as a major gold producing area. F O R M O R E I N F O R M AT I O N C O N TA C T:
Doug Buerger, President Victorian Chamber of Mines Telephone (03) 5447 1834
17
VIMP REVIEW
REGULAR FEATURE
MPV refocuses on main goal
A
s part of the process of focusing expenditure in the key areas of health, education and justice, the Victorian Government’s 1998/99 budget required reduction of about $20 million in the recurrent budget for the Department of Natural Resources and Environment.
you have picture from last issue
All Divisions in the Department have been required to make their share of savings as part of meeting this target. The MPV share equates to a nearly 8% reduction in the ongoing budget. However, more than offsetting this reduction is the $7 million, three-year extension to the VIMP program. Now to be called VIMP 2001, this brings total expenditure on this program to $25.5 million. This investment is a strong vote of confidence from the Government in the work which MPV is doing and the very positive industry response.
MPV executive director, David Lea
In order to meet our new ongoing budget target, we have had to make some major changes to the Division.
result in a reduction in ongoing positions and increased reliance on outsourced services as and when required.
In doing so we have been very mindful of the need to maintain service quality in those areas which are critical to our clients.
In recognition of the high degree of commonality of issues, the extractive industry and minerals development functions have been combined in the existing Minerals Development Branch under Phil Roberts.
I believe that we have achieved this and know that, after the inevitable “recovery” phase following any major reorganisation, this will be apparent to all. For some time we have been working to improve regulatory processes and service delivery. This work started in MP Titles and is now underway in MP Operations. In recognition of the high degree of integration of the processes and services undertaken across both units, we have combined the functions in one Branch, Minerals and Petroleum Regulation [MPR]. This Branch will be led by Rob King. A new position of Manager MP Tenements will be created to manage the Business Centre and Customer Service Officers. George Buckland will lead this important team.
industry (see VIMP 2001 story for details). This has resulted in changes in the Geological Survey to match resources and skills to the planned new work program. The major change is the restructuring of draughting services, with increased outsourcing. Strong emphasis will continue to be given to geological mapping and GIS data package development. In line with the Government’s Budget emphasis on stimulating petroleum exploration and development, there will be no reduction in ongoing funding of the Petroleum Development Branch. We will increase staffing to carry out an accelerated program to bring new petroleum explorers into Victoria. While it is never easy to go through major changes to any organisation, the main steps are now behind us. I extend my thanks to all MPV staff for their cooperation in the process and to our clients for their forbearance. We all look forward to refocussing on our main goal; working with industry and other stakeholders to develop the State’s geological inheritance in a responsible manner for the benefit of all Victorians.
“Major changes have been made to MPV..., but the main steps are now behind us.”
Following the announcement of the $7 million VIMP 2001 extension, a plan of work in the minerals and petroleum areas has been developed.
In addition, we will be re-structuring the Petroleum Regulation Unit to better match resources and skills to work demand. This will
This work plan shifts expenditure towards petroleum while still focusing on providing valuable new information for the minerals 18
digs deeper into state’s resources
F
urther exploration of Victoria’s petroleum and mineral fields will be boosted by the extension of the Victorian Initiative for Minerals and Petroleum (VIMP 2001) program.
The next three years of the program will include a wide range of seismic and aerial surveys, mapping and information retrieval work which is expected to stimulate strong new interest in Victoria’s natural resources potential. The VIMP 2001 program has already achieved outstanding results and is now set to run until June 2001 with an extra $7 million in funding recently provided by the Victorian Government. The program will include surveys aimed at providing an expanded data base for exploration of Victoria’s petroleum basins, both onshore and offshore. The data collected will greatly increase knowledge of Victoria’s petroleum basins, which, outside the intensively developed Gippsland Basin fields, have been only ‘lightly’ explored. One key focus area is the potential of the deepwater regions of Bass Strait. This area will be specifically targeted during the new VIMP 2001 work.
The position of Extractive Industry Development Manager no longer exists, but all other Minerals Development positions have been retained.
This re-organisation will strengthen our ability to service our customers and to manage the process and priority review currently underway.
VIMP
F O R M O R E I N F O R M AT I O N C O N TA C T:
David Lea Level 15, 8 Nicholson Street East Melbourne 3002 Telephone: (03) 9637 8535 Facsimile: (03) 9637 8155
Mineral work, including geological mapping, geophysical surveys and GIS data packages,will also a key part of VIMP 2001, adding to the volume of data already completed during the first four years of the program.
Drill floor activity at Pool rig 453 on Esso Australia’s Tuna platform, Bass strait.
VIMP REVIEW
VIMP REVIEW
VIMP 2001 program (June 1998 - June 2001) Expenditure
$000
Petroleum information
930,000
Gippsland Petroleum Potential Study - Seismic reprocessing - deep water seismic acquisition - gravity surveys
240,000 500,000 220,000
Aeromagnetic surveys (Gippsland/Otway)
1,600,000
Geological mapping
2,000,000
GIS data packages
890,000
Petroleum Resource Atlas
300,000
Publications and marketing
Airborne surveys continue to play an important role in further exploration work.
In total, the VIMP program will have cost $25.5 million over a period of seven years since it was launched in l994, making it one of the most extensive resources industry packages provided for any state. The impacts have already been impressive. Mineral exploration spending rose nearly four-fold to $45.7 million in 1997 and there has been a rush of new exploration licence applications, particularly in areas with newly released VIMP data. Already 4 million ounces of gold has been added to the State’s resource base. The rapid development of the Murray Basin region as a potentially major new mineral sands province is one of the most spectacular results of the VIMP program. Exploration interest in the Murray Basin exploded after the release of aerial surveys which clearly indicated new areas of potential for heavy mineral production. Victoria’s first major mineral sands mine will soon be developed while a major industry con-
Petroleum information database
7,000,000
and enabling Internet access. A major development in this area was the recent award of a tender for petroleum database software to Petrosys Pty Ltd to supply their “db-map” database software product.
The software will enable MPV to deliver data efficiently to the people who need it most. Eventually, the data will be available on CDROM, tape media and the Internet, so it is both up-to-date and easy to access.
Petroleum data CD-ROM
By making data widely available in a convenient form, explorers are able to evaluate Victorian exploration acreage more effectively and efficiently. This should help reduce exploration costs and promote the prospectivity of Victorian sedimentary basins. The package contains both raw data and metadata (data that describes the data - where, who, how, why, when) including: • seismic shot-point locations (navigation data); • well summary spreadsheets; • seismic survey summary information spreadsheets;
The VIMP 2001 funding over the next 3 years will enable the continuing implementation and population of Victoria’s petroleum database.
• basins, wells and field outlines;
This project continues the petroleum information component of the VIMP program which is aimed at improving access to information by preparing it in digital information sets, populating a relational database
• pipelines;
20
Airborne geophysical surveys
Petrosys will supply both the base software package and support services and also modify/add software to meet MPV’s specific requirements.
Petroleum data available at present includes a CD-ROM package which is designed to be a useful method of non-confidential data distribution.
• roads and towns; • current permits; • national parks and restricted areas; • rivers, lakes, coastlines and islands; and • the text of recent departmental reports.
Gravity rock density This is one of the most important and diagnostic of the physical properties of rocks. It is one of the few analytical methods that allows an interpretation of the third dimension and, when used in conjunction with airborne magnetics, is a powerful exploration and mapping tool. Because of the masking effect of the brown coal layers in seismic surveys, gravity surveys are particularly important as a tool to determine basin structure below the brown coal layers. Geological mapping Detailed geological mapping of the basin margins is critical to establish major geological features that extend out under the basin and to determine the fundamental timing relationship in the build up of the sediments within the basin. Structures control the depth of burial, the generation of hydrocarbons and their pathways of movement through the sediments to trap sites
320,000
TOTAL
ference on the mineral sand potential of the region will be held early next year in Mildura (see page 23 for details). Victoria has the potential to attract a substantial share of the $1.1 billion a year heavy mineral sands industry as it shifts its focus from the east and west coasts to the Murray Basin. New gold and base metal deposits in the state’s east are emerging as new work continues to test magnetic and geophysical targets. To date, about one third of Victoria’s strategic areas have been mapped with new generation 1:50,000 scale geological mapping while 71% of the whole State has been covered by industry standard airborne magnetic and radiometric surveys and half covered by closely spaced gravity data. To date, approximately 50 VIMP reports have been released along with 12 of the more prestigious Geological Survey reports. VIMP also has sparked new interest in petroleum acreage bidding, with the this year’s round of bids stronger and more competitive than in recent years The next three year’s work will put Victoria’s public mineral and petroleum database at the forefront in Australia, offering advantages to the industry not available elsewhere in the country.
New aerial magnetic and gravity surveys to be conducted as part of the new extensions to the VIMP program will provide Victorian explorers with a head start in seeking new petroleum and mineral resources.
A geochemical database, palynology database (comprising information from over 700 reports) will be released as CD ROMs over the next 18 months.
The production of regional magnetic and radiometric maps and images from airborne surveys is recognised by both government and industry bodies as the most valuable framework for exploration work and as being fundamental to the better understanding of regional geology, structure and tectonics. A detailed coverage of the entire Gippsland Basin including the near basin margins, the onshore section, the 3-mile offshore zone and the deep offshore areas, will assist in direct correlation of rock units and structure across the whole basin. Basement structures also play a major role in basin architecture and mapping of basement
Gippsland Potential Study This project will take a fresh look at Australia’s most prolific petroleum basin and seek new opportunities, particularly for gas, in response to the anticipated rapid increase in demand and consequent need for supply. The work will involve: Geophysical reprocessing Reprocessing existing data to a consistent high standard over a regional grid will assist new and potential explorers with a regional understanding of the critical systems and geometries of the Gippsland Basin. Deepwater acquisition Gippsland Currently the data in the largely unexplored deepwater Gippsland Basin is very sparse. Release of the acreage would be enhanced if accompanied by at least a modern seismic grid. Acquisition of 400 km combined with selective reprocessing will permit a regional geological map to be generated. 21
structures for aeromagnetic surveys will be an important tool in new target generation. Petroleum and natural gas exploration is now moving out into deeper waters (even out as far as 2500 metres) and surveys of the deeper sections of the Gippsland Basin will provide a first detailed look at this new frontier area. Considerable interest is being expressed in the onshore section of the Otway Basin for natural gas exploration and a detailed survey of this area is an essential aid to further evaluation of the area. The associated radiometric surveys will be of considerable assistance to exploration for nonmetallic mineral products and in soil mapping for agricultural purposes. It is anticipated that some airborne geophysical surveys also will be conducted over the Warburton quarter-million map sheet area, subject to Commonwealth contribution to the off-shore magnetic surveys. The Warburton area has considerable potential for gold and base metal minerals and these surveys will provide valuable new information to assist explorers in their quest for new discoveries.
Geological mapping program Up to date and accurate geological maps are one of the essential requirements of the exploration industry and are needed for any activity that has anything even remotely associated with earth sciences - from mineral and petroleum exploration to agriculture, forestry, environment, land use planning, town planning and infrastructure development. New petroleum database software is being provided by Petrosys, an Australian company which specialises in developing software for the international oil exploration and production industry.
VIMP REVIEW
VIMP REVIEW
VIMP 2001 program (June 1998 - June 2001) Expenditure
$000
Petroleum information
930,000
Gippsland Petroleum Potential Study - Seismic reprocessing - deep water seismic acquisition - gravity surveys
240,000 500,000 220,000
Aeromagnetic surveys (Gippsland/Otway)
1,600,000
Geological mapping
2,000,000
GIS data packages
890,000
Petroleum Resource Atlas
300,000
Publications and marketing
Airborne surveys continue to play an important role in further exploration work.
In total, the VIMP program will have cost $25.5 million over a period of seven years since it was launched in l994, making it one of the most extensive resources industry packages provided for any state. The impacts have already been impressive. Mineral exploration spending rose nearly four-fold to $45.7 million in 1997 and there has been a rush of new exploration licence applications, particularly in areas with newly released VIMP data. Already 4 million ounces of gold has been added to the State’s resource base. The rapid development of the Murray Basin region as a potentially major new mineral sands province is one of the most spectacular results of the VIMP program. Exploration interest in the Murray Basin exploded after the release of aerial surveys which clearly indicated new areas of potential for heavy mineral production. Victoria’s first major mineral sands mine will soon be developed while a major industry con-
Petroleum information database
7,000,000
and enabling Internet access. A major development in this area was the recent award of a tender for petroleum database software to Petrosys Pty Ltd to supply their “db-map” database software product.
The software will enable MPV to deliver data efficiently to the people who need it most. Eventually, the data will be available on CDROM, tape media and the Internet, so it is both up-to-date and easy to access.
Petroleum data CD-ROM
By making data widely available in a convenient form, explorers are able to evaluate Victorian exploration acreage more effectively and efficiently. This should help reduce exploration costs and promote the prospectivity of Victorian sedimentary basins. The package contains both raw data and metadata (data that describes the data - where, who, how, why, when) including: • seismic shot-point locations (navigation data); • well summary spreadsheets; • seismic survey summary information spreadsheets;
The VIMP 2001 funding over the next 3 years will enable the continuing implementation and population of Victoria’s petroleum database.
• basins, wells and field outlines;
This project continues the petroleum information component of the VIMP program which is aimed at improving access to information by preparing it in digital information sets, populating a relational database
• pipelines;
20
Airborne geophysical surveys
Petrosys will supply both the base software package and support services and also modify/add software to meet MPV’s specific requirements.
Petroleum data available at present includes a CD-ROM package which is designed to be a useful method of non-confidential data distribution.
• roads and towns; • current permits; • national parks and restricted areas; • rivers, lakes, coastlines and islands; and • the text of recent departmental reports.
Gravity rock density This is one of the most important and diagnostic of the physical properties of rocks. It is one of the few analytical methods that allows an interpretation of the third dimension and, when used in conjunction with airborne magnetics, is a powerful exploration and mapping tool. Because of the masking effect of the brown coal layers in seismic surveys, gravity surveys are particularly important as a tool to determine basin structure below the brown coal layers. Geological mapping Detailed geological mapping of the basin margins is critical to establish major geological features that extend out under the basin and to determine the fundamental timing relationship in the build up of the sediments within the basin. Structures control the depth of burial, the generation of hydrocarbons and their pathways of movement through the sediments to trap sites
320,000
TOTAL
ference on the mineral sand potential of the region will be held early next year in Mildura (see page 23 for details). Victoria has the potential to attract a substantial share of the $1.1 billion a year heavy mineral sands industry as it shifts its focus from the east and west coasts to the Murray Basin. New gold and base metal deposits in the state’s east are emerging as new work continues to test magnetic and geophysical targets. To date, about one third of Victoria’s strategic areas have been mapped with new generation 1:50,000 scale geological mapping while 71% of the whole State has been covered by industry standard airborne magnetic and radiometric surveys and half covered by closely spaced gravity data. To date, approximately 50 VIMP reports have been released along with 12 of the more prestigious Geological Survey reports. VIMP also has sparked new interest in petroleum acreage bidding, with the this year’s round of bids stronger and more competitive than in recent years The next three year’s work will put Victoria’s public mineral and petroleum database at the forefront in Australia, offering advantages to the industry not available elsewhere in the country.
New aerial magnetic and gravity surveys to be conducted as part of the new extensions to the VIMP program will provide Victorian explorers with a head start in seeking new petroleum and mineral resources.
A geochemical database, palynology database (comprising information from over 700 reports) will be released as CD ROMs over the next 18 months.
The production of regional magnetic and radiometric maps and images from airborne surveys is recognised by both government and industry bodies as the most valuable framework for exploration work and as being fundamental to the better understanding of regional geology, structure and tectonics. A detailed coverage of the entire Gippsland Basin including the near basin margins, the onshore section, the 3-mile offshore zone and the deep offshore areas, will assist in direct correlation of rock units and structure across the whole basin. Basement structures also play a major role in basin architecture and mapping of basement
Gippsland Potential Study This project will take a fresh look at Australia’s most prolific petroleum basin and seek new opportunities, particularly for gas, in response to the anticipated rapid increase in demand and consequent need for supply. The work will involve: Geophysical reprocessing Reprocessing existing data to a consistent high standard over a regional grid will assist new and potential explorers with a regional understanding of the critical systems and geometries of the Gippsland Basin. Deepwater acquisition Gippsland Currently the data in the largely unexplored deepwater Gippsland Basin is very sparse. Release of the acreage would be enhanced if accompanied by at least a modern seismic grid. Acquisition of 400 km combined with selective reprocessing will permit a regional geological map to be generated. 21
structures for aeromagnetic surveys will be an important tool in new target generation. Petroleum and natural gas exploration is now moving out into deeper waters (even out as far as 2500 metres) and surveys of the deeper sections of the Gippsland Basin will provide a first detailed look at this new frontier area. Considerable interest is being expressed in the onshore section of the Otway Basin for natural gas exploration and a detailed survey of this area is an essential aid to further evaluation of the area. The associated radiometric surveys will be of considerable assistance to exploration for nonmetallic mineral products and in soil mapping for agricultural purposes. It is anticipated that some airborne geophysical surveys also will be conducted over the Warburton quarter-million map sheet area, subject to Commonwealth contribution to the off-shore magnetic surveys. The Warburton area has considerable potential for gold and base metal minerals and these surveys will provide valuable new information to assist explorers in their quest for new discoveries.
Geological mapping program Up to date and accurate geological maps are one of the essential requirements of the exploration industry and are needed for any activity that has anything even remotely associated with earth sciences - from mineral and petroleum exploration to agriculture, forestry, environment, land use planning, town planning and infrastructure development. New petroleum database software is being provided by Petrosys, an Australian company which specialises in developing software for the international oil exploration and production industry.
VIMP REVIEW
SPECIAL FEATURE
With the advent of regional airborne geophysical surveys, the technology is now available to produce a new generation of 1:50,000 scale maps at a much higher standard than previously possible.
The rate of mapping varies considerably depending on topography, tree cover, and geological complexity but, using a team approach which includes mappers and geophysical staff, the rate of mapping has increased dramatically.
This is the ideal scale for industry project generation work. It is small enough to show considerable structural detail but also large enough to provide the regional scale overview as well.
With the funding now available from VIMP 2001, and in conjunction with the normal Geological Survey Program, a further ten of the 1:100,000 map sheet areas, each consisting of 4 x 50,000 scale maps, will be completed over the next 3 years.
AIRBOURNE GEOPHYSICAL SURVEYS Completed June 1998 Programmed to June 2001
GRAVITY Completed June 1998
Areas to be mapped include the Glenelg Province which is believed to contain Adelaide Fold Belt rocks, possible Proteozoic rocks and volcanics. Areas on the margin of the Murray Basin, prospective for both heavy mineral sands and extensions under shallow cover of the goldfields areas and greenstone volcanic belts, will also be mapped. Two map sheets within the central goldfields areas Castlemaine and Woodend are also on the program as are four strategic areas in Eastern Victoria - Tallangatta, Buffalo, Bogong and Bairnsdale.
Gravity surveys
Programmed to June 2001
Exploration companies are making increasing use of the data being provided under the VIMP program and gravity data is proving particularly important in areas where companies are exploring under sediment or basalt cover.
GIS DATA SETS Completed June 1998 Programmed to June 2001
able data is huge, and of considerable importance to explorers Typical data sets include past mineral exploration licence summaries, magnetics, radiometrics, digital terrain models and gravity data as images, geology, mineral occurrences, mine plans, exploration geochemistry, current and expired EL’s, ML’s, boreholes, national parks, Crown lands, towns, roads and mapsheet boundaries. The packages are in MapInfo or MapInfo Export format and are available on CD ROM or Exabyte tape. About one third of the State is currently available in these GIS packages and future work programs include Mallacoota, Warburton, Bendigo, St Arnaud and Ballarat quarter million map sheet areas.
Victorian Petroleum Resource Atlas This atlas will be a very early stop for any potential explorer. It will provide the geological framework, field information and starting maps to enable explorers to rapidly assimilate the key facts concerning the basin and will also summarise the state’s infrastructure and markets. It will be readily updated through flexible binding while the maps will be prepared for downloading from NRE’s Website. The first edition of the Atlas is planned be ready to celebrate the year 2000.
The previous 11 km spaced data has been progressively reduced to new generation 1.5km spaced data over almost the entire western half of the State.
GIS data bases Completed June 1998 Programmed to June 2001
There are also major spin offs with data available in this form to environment, agricultural, mine hazard, and strategic land use and planning activities.
22
The Murray Basin, principally in Victoria but also across the border in NSW and South Australia, is on the verge of becoming a world-class mineral sands producing region. Five million years ago, the Murray Basin was an inland sea with its shoreline beaches formed by wave action washing sediment down from the Great Dividing Range. The beach sands have been found to contain valuable heavy minerals such as rutile, ilmenite and zircon. Rutile and ilmenite are used as feedstock for titanium oxide pigments as well as high- strength alloy steels, while zircon is a integral element in the ceramics industry and is increasingly used in the manufacture of computer discs. Interest in the Murray Basin and its mineral sands potential has been nothing
short of remarkable. Government support for the new industry is very strong and new projects are being facilitated by designated Minerals and Petroleum Victoria staff. While the presence of high grade mineral sands has been known for years, it has only been in the last year that the area has received serious attention by major players. One of these major players is RZM Pty Limited, a subsidiary of major Japanese trading house, Nissho Iwai Corporation, which plans to establish the first mineral sands operation at Wemen, near Robinvale RZM has mined mineral sands for more than 30 years in NSW and currently produces 25,000 tonnes per annum of high-quality rutile and zircon from two mining plants.
A number of significant deposits in the area have been identified, including Birthday Gift and Jacks Tank, wes and north of Willandra Lakes, and the Wemen deposit, close to the Murray River.
Ready access to past mineral exploration data is a major requirement of industry and to have the data in a fully relational GIS data base is particularly important.
The value of mineral exploration in Victoria over the past 30 years equivalent to $670 million in today’s dollar terms so volume of avail-
V
ictoria’s prolific agricultural base in the Murray Basin region surrounding Mildura, noted for its wheat, barley, citrus and grapes, will soon have a new boom industry.
In 1995, RZM formed a joint venture with Aberfoyle Resources Limited (an active player in the Murray Basin since the mid 1980s), over a 25,000 square kilometre exploration area in New South Wales and Victoria, with RZM earning the right to operate and a 70% interest.
Over the next three years the coverage will be extended to cover the onshore section of the Gippsland Basin and along the lower topographic areas adjacent to the Murray River. The work in the Gippsland Basin will play an important role in ‘looking’ below the thick coal seam which mask many of the normal techniques used by petroleum exploration companies.
1:50,000 SCALE GEOLOGICAL MAPPING
It’s boom time in the basin
Petroleum and gas exploration is moving into deeper waters of the Gippsland Basin.
RZM general Grieve Brown, Murray Basin potential to 23
manager said the has the become
Simulated view: Sand mining is expected to be low impact in the Mallee region with the deposits mined in strips with waste deposited immediately behind the mine face. Rapid backfilling and restoration of topsoil over the disturbed area quickly returns the region to its former use, principally as grazing land.
Australia’s main region for mineral sands and has become the major exploration focus for RZM. “Within the next few years, our mines at Tomago will close and we plan to relocate the current separation plant at a new site somewhere in the Murray Basin, possibly between Wemen and an export port,” he added. “Exploration has revealed a number of areas that have the potential to host major deposits and our long term objective is, once Wemen is established, to underwrite a project that will produce 300,000 to 500,000 tonnes of rutile, zircon and ilmenite per annum.” The Wemen Project, located three kilometres east of Wemen and 25 kilometres southwest of Robinvale, will have annual revenues of over $20 million per annum for nine years. RZM has prepared an environmental effects statement (EES) as the major step in gaining approval to commence mining operations. Located in an exploration licence area of 14.8 square kilometres, the orebody is approximately 12 kilometres long, 180 metres wide and between three and 12 metres thick with the mineable resource divided into two. The northern resource is 4.8 kilometres long and the heavy mineral averages 28% rutile, 12% zircon and 44% ilmenite (a mining reserve of 405,000 tonnes of heavy mineral) and the southern resource, approximately 3.8 kilometres long has a similar heavy mineral content. To recover the northern resource, 14 million tonnes of overburden will have to be moved and 10.9 million tonnes of sand averaging 3.7% heavy minerals will be processed. Mining will be achieved by using an electrically powered bucket-wheel dredge, that will float in a pond of natural groundwater. The dredge will pump the ore to a concentra-
VIMP REVIEW
SPECIAL FEATURE
With the advent of regional airborne geophysical surveys, the technology is now available to produce a new generation of 1:50,000 scale maps at a much higher standard than previously possible.
The rate of mapping varies considerably depending on topography, tree cover, and geological complexity but, using a team approach which includes mappers and geophysical staff, the rate of mapping has increased dramatically.
This is the ideal scale for industry project generation work. It is small enough to show considerable structural detail but also large enough to provide the regional scale overview as well.
With the funding now available from VIMP 2001, and in conjunction with the normal Geological Survey Program, a further ten of the 1:100,000 map sheet areas, each consisting of 4 x 50,000 scale maps, will be completed over the next 3 years.
AIRBOURNE GEOPHYSICAL SURVEYS Completed June 1998 Programmed to June 2001
GRAVITY Completed June 1998
Areas to be mapped include the Glenelg Province which is believed to contain Adelaide Fold Belt rocks, possible Proteozoic rocks and volcanics. Areas on the margin of the Murray Basin, prospective for both heavy mineral sands and extensions under shallow cover of the goldfields areas and greenstone volcanic belts, will also be mapped. Two map sheets within the central goldfields areas Castlemaine and Woodend are also on the program as are four strategic areas in Eastern Victoria - Tallangatta, Buffalo, Bogong and Bairnsdale.
Gravity surveys
Programmed to June 2001
Exploration companies are making increasing use of the data being provided under the VIMP program and gravity data is proving particularly important in areas where companies are exploring under sediment or basalt cover.
GIS DATA SETS Completed June 1998 Programmed to June 2001
able data is huge, and of considerable importance to explorers Typical data sets include past mineral exploration licence summaries, magnetics, radiometrics, digital terrain models and gravity data as images, geology, mineral occurrences, mine plans, exploration geochemistry, current and expired EL’s, ML’s, boreholes, national parks, Crown lands, towns, roads and mapsheet boundaries. The packages are in MapInfo or MapInfo Export format and are available on CD ROM or Exabyte tape. About one third of the State is currently available in these GIS packages and future work programs include Mallacoota, Warburton, Bendigo, St Arnaud and Ballarat quarter million map sheet areas.
Victorian Petroleum Resource Atlas This atlas will be a very early stop for any potential explorer. It will provide the geological framework, field information and starting maps to enable explorers to rapidly assimilate the key facts concerning the basin and will also summarise the state’s infrastructure and markets. It will be readily updated through flexible binding while the maps will be prepared for downloading from NRE’s Website. The first edition of the Atlas is planned be ready to celebrate the year 2000.
The previous 11 km spaced data has been progressively reduced to new generation 1.5km spaced data over almost the entire western half of the State.
GIS data bases Completed June 1998 Programmed to June 2001
There are also major spin offs with data available in this form to environment, agricultural, mine hazard, and strategic land use and planning activities.
22
The Murray Basin, principally in Victoria but also across the border in NSW and South Australia, is on the verge of becoming a world-class mineral sands producing region. Five million years ago, the Murray Basin was an inland sea with its shoreline beaches formed by wave action washing sediment down from the Great Dividing Range. The beach sands have been found to contain valuable heavy minerals such as rutile, ilmenite and zircon. Rutile and ilmenite are used as feedstock for titanium oxide pigments as well as high- strength alloy steels, while zircon is a integral element in the ceramics industry and is increasingly used in the manufacture of computer discs. Interest in the Murray Basin and its mineral sands potential has been nothing
short of remarkable. Government support for the new industry is very strong and new projects are being facilitated by designated Minerals and Petroleum Victoria staff. While the presence of high grade mineral sands has been known for years, it has only been in the last year that the area has received serious attention by major players. One of these major players is RZM Pty Limited, a subsidiary of major Japanese trading house, Nissho Iwai Corporation, which plans to establish the first mineral sands operation at Wemen, near Robinvale RZM has mined mineral sands for more than 30 years in NSW and currently produces 25,000 tonnes per annum of high-quality rutile and zircon from two mining plants.
A number of significant deposits in the area have been identified, including Birthday Gift and Jacks Tank, wes and north of Willandra Lakes, and the Wemen deposit, close to the Murray River.
Ready access to past mineral exploration data is a major requirement of industry and to have the data in a fully relational GIS data base is particularly important.
The value of mineral exploration in Victoria over the past 30 years equivalent to $670 million in today’s dollar terms so volume of avail-
V
ictoria’s prolific agricultural base in the Murray Basin region surrounding Mildura, noted for its wheat, barley, citrus and grapes, will soon have a new boom industry.
In 1995, RZM formed a joint venture with Aberfoyle Resources Limited (an active player in the Murray Basin since the mid 1980s), over a 25,000 square kilometre exploration area in New South Wales and Victoria, with RZM earning the right to operate and a 70% interest.
Over the next three years the coverage will be extended to cover the onshore section of the Gippsland Basin and along the lower topographic areas adjacent to the Murray River. The work in the Gippsland Basin will play an important role in ‘looking’ below the thick coal seam which mask many of the normal techniques used by petroleum exploration companies.
1:50,000 SCALE GEOLOGICAL MAPPING
It’s boom time in the basin
Petroleum and gas exploration is moving into deeper waters of the Gippsland Basin.
RZM general Grieve Brown, Murray Basin potential to 23
manager said the has the become
Simulated view: Sand mining is expected to be low impact in the Mallee region with the deposits mined in strips with waste deposited immediately behind the mine face. Rapid backfilling and restoration of topsoil over the disturbed area quickly returns the region to its former use, principally as grazing land.
Australia’s main region for mineral sands and has become the major exploration focus for RZM. “Within the next few years, our mines at Tomago will close and we plan to relocate the current separation plant at a new site somewhere in the Murray Basin, possibly between Wemen and an export port,” he added. “Exploration has revealed a number of areas that have the potential to host major deposits and our long term objective is, once Wemen is established, to underwrite a project that will produce 300,000 to 500,000 tonnes of rutile, zircon and ilmenite per annum.” The Wemen Project, located three kilometres east of Wemen and 25 kilometres southwest of Robinvale, will have annual revenues of over $20 million per annum for nine years. RZM has prepared an environmental effects statement (EES) as the major step in gaining approval to commence mining operations. Located in an exploration licence area of 14.8 square kilometres, the orebody is approximately 12 kilometres long, 180 metres wide and between three and 12 metres thick with the mineable resource divided into two. The northern resource is 4.8 kilometres long and the heavy mineral averages 28% rutile, 12% zircon and 44% ilmenite (a mining reserve of 405,000 tonnes of heavy mineral) and the southern resource, approximately 3.8 kilometres long has a similar heavy mineral content. To recover the northern resource, 14 million tonnes of overburden will have to be moved and 10.9 million tonnes of sand averaging 3.7% heavy minerals will be processed. Mining will be achieved by using an electrically powered bucket-wheel dredge, that will float in a pond of natural groundwater. The dredge will pump the ore to a concentra-
SPECIAL FEATURE
Industry legend retires
Conference to consider basin ‘treasure’
T
he explosion of interest in the mineral sands potential of the Murray Basin will be a hot topic at a major international conference in Mildura next year where the prospects for the new industry will be examined. The Australian Institute of Mining and Metallurgy (AusIMM), the Geological Society of Australia and the Australian Institute of Geoscientists, have combined to investigate all aspects of the resource ‘treasure’ of the Murray Basin. To be held in Mildura, the conference location is central to the three states into which the Murray Basin extends. Papers are now being invited for the conference, scheduled for April 21 to April 23, which is being held in collaboration with the state governments of Victoria, South Australia and New South Wales. Technical and social tours will be conducted before, during and after the conference. Papers covering the geology, resources, mining and recovery of mineral sand products from the Murray Basin region will be the core topic for the gathering. As an added attraction, a three-state golf challenge tournament will be conducted immediately before the conference at Mildura Golf Club, Coomealla at Dareton and at the Wentworth club in NSW. F O R M O R E I N F O R M AT I O N C O N TA C T:
Graham Gooding Chairman, Central Victorian AUSIMM PO Box 1298 Mail Centre Ballarat Telephone (03) 5332 6865
John Reynolds – retiring after more than 50 years in the industry.
tor located directly behind it, where the minerals are removed from the sand by centrifugal and magnetic processes which produce highgrade concentrates.
Mineral sands extraction at RZM’s Wemen project will be by traditional floating dredge and concentrator techniques used by the company in NSW.
These concentrates are then pumped to land based stockpiles to settle and dry.
tonnes of magnetic concentrate (ilmenite).
The actual operating area, which will cover approximately one square kilometre, will contain the 200 metre long by 200 metre wide dredge pond and move at a rate of approximately 80 metres per month along the orebody. Tailings, overburden and soil will be progressively replaced once the operations pass through. The time between mining and rehabilitation, on any part of the operation, will generally be less than one year, with full rehabilitation of mined land to agricultural use within two years, with productivity equal or possibly better than existing levels. The dredge and concentrator have a maximum throughput capacity of 600 tonnes per hour. However, a throughput of 450 tph will be adopted for the Wemen operations, which will achieve an annual throughput rate of 2.5 million tonnes (on the basis of a five-day week). Annual production of heavy mineral concentrate is estimated around 40,000 tonnes of non-magnetic concentrate (rutile and zircon) and 40,000
EXPRESSION OF INTEREST MURRAY BASIN CONFERENCE 21-23 April 1999, Mildura, Victoria Name
“Stringent measures have been taken to make sure that the local community is well informed on all issues, which range from water supply and management, storage and fauna, dust, noise and relevant archeological and historical sites,” Mr Brown said. “Through active community consultation, commissioning of independent specialist studies and the publication of the EES, we have addressed many of the issues concerning the local community. “However, as the first operation of its type in the region and as such, a major new element in the social and economic landscape, we will be closely monitoring all aspects of the operation once it has been given the green light to proceed. “We are currently looking at establishing an Environmental Review Committee (ERC) involving Wemen community representatives that would be actively consulted and oversee that all environmental commitments outlined in the EES are met or that any revisions are monitored and reviewed.” Mr Brown added that the project would provide new employment opportunities and, by virtue of the multiplier effect, benefit existing and create new suppliers of goods and services.
Organisation Title or Position Address
ictorian mining industry legend John Reynolds, has retired after a career spanning more than 50 years.
A metallurgist and chemical engineer for most of his working life, Mr Reynolds reached the age of “statutory senility” in 1986 but took on a new challenge as the founder of the Victorian Chamber of Mines. Now, after 11 years with the VCM and at the age of 77, he is finally downing tools to enjoy the retirement he never really started. Chris Fraser, a mining engineer with 30 years experience in the engineering and mineral industries, is VCM’s new executive director (see story box). VCM President Doug Buerger, said, “Chris Fraser will take over a very soundly based organisation built up under the stewardship of John Reynolds. “John will be sorely missed. However, we look forward to his continued input as a life member of the VCM.” Mr Reynolds was born in Melbourne and educated at Wesley College and Melbourne University, where he earned a science degree specialising in metallurgy. His interest in metallurgy was sparked by his father who was chief chemist and later deputy master of the Royal Mint in Melbourne. “I used to get taken on factory excursions.... and I got a bit interested in the Mint which dealt in metals,” Mr Reynolds said. “I graduated in 1943 during the war but I was immediately ‘manpowered’ which meant I couldn’t get into the defence force. “We were just locked in, and every time we moved out we got dragged back in to finish our course so we could join the war effort.”
“Initial construction of the mine will require 23 employees and once operational this will increase to 44, including contractors,” he said.
Country Tel
Initially, the heavy mineral concentrate will be transported by rail to RZM’s dry separation plant at Tomago in New South Wales and separated into rutile and zircon products for sale on the world markets. The ilmenite will be stockpiled for a maximum of 18 months or until a market is found for it.
V
Postcode Fax
E-mail All expressions of interests, queries and abstracts should be sent to: PO Box 1298 Mail Centre, Ballarat, Victoria 3354 Australia Or, for more information, contact Rebecca Norton at: Phone (613) 5332 6865 Fax (613) 5333 6516 e-mail [email protected]
24
“If government approvals are completed in the next few months, we could begin site works by the end of the year and finally produce the first heavy mineral concentrate mid 1999.” F O R M O R E I N F O R M AT I O N C O N TA C T:
Mr Grieve Brown, general manager, RZM Ltd Telephone (03) 4964 8081
Chris Fraser
His first job was at the munitions supply laboratories but he later moved to Port Kembla into copper smelting and refining. That job lasted until 1946 when he returned to Melbourne to work with the government “in a grandiose thing called the Department of Post-War Reconstruction”. “We just wrote reports and did investigations and I could never see anything happening so I got sick of that,” he said. Contacts in the smelting industry helped him land a job with the Imperial Smelting Company at the Avonmouth smelter in the United Kingdom, now owned by Mt Isa Mines. “In 1949 they sent me back to Cockle Creek, south of Newcastle and I was there until 1969. “I was superintendent of the acid plants. We had seven of the bloody things of varying ages and decrepitude to try and run and we were under pressure because the fertiliser market was growing and we needed every tonne we could get” His experience led to a new interest in a major research program into smelter technology with CRA. This work put him in contact with the Western Mining Corp (now WMC Ltd) which was considering adopting the CRA smelter technology.
VCM’s new executive director Chris Fraser holds a Bachelor of Engineering degree from RMIT and a qualification in Applied Science in Geology from Canberra CAE. He has also completed the advanced Management Program of the Australian Management College at Mt Eliza, is a fellow of the AUSIMM and holds a Mine Manager’s certificate. He started his career with the Snowy Mountains Engineering Corp in 1969 and worked with the Victorian State Electricity Commission, later becoming general manager, mining for Yallourn Energy Ltd. While in that post he was elected an executive councillor of the VCM. Early in 1996, he joined Geo-Eng Pty Ltd becoming regional manager, Indonesia in 1996 while also operating as principal engineer - mining for the company.
25
In 1972 he switched to Western Mining and became the company’s commercial manager, nickel. After some organisational changes in Western Mining, he became corporate manager planning and later moved into a new role of manager, corporate affairs. “It was one of the first appointments of that nature in the mining industry and we had to find out what corporate affairs meant. It meant discovering the environment and politics, uranium debates and international ramifications, so if was a very interesting time,” he said. By 1986, Mr Reynolds was approaching retirement. However, he opted instead to help form the Victorian Chamber of Mines and became its first executive director in January, 1987, at the age of 65. Now, retiring for the second and final time, he will retain an active interest in Victorian mining. He is a director of Golden Heritage Mining NL, a local explorer, and also plans to work part time as a consultant.
SPECIAL FEATURE
Industry legend retires
Conference to consider basin ‘treasure’
T
he explosion of interest in the mineral sands potential of the Murray Basin will be a hot topic at a major international conference in Mildura next year where the prospects for the new industry will be examined. The Australian Institute of Mining and Metallurgy (AusIMM), the Geological Society of Australia and the Australian Institute of Geoscientists, have combined to investigate all aspects of the resource ‘treasure’ of the Murray Basin. To be held in Mildura, the conference location is central to the three states into which the Murray Basin extends. Papers are now being invited for the conference, scheduled for April 21 to April 23, which is being held in collaboration with the state governments of Victoria, South Australia and New South Wales. Technical and social tours will be conducted before, during and after the conference. Papers covering the geology, resources, mining and recovery of mineral sand products from the Murray Basin region will be the core topic for the gathering. As an added attraction, a three-state golf challenge tournament will be conducted immediately before the conference at Mildura Golf Club, Coomealla at Dareton and at the Wentworth club in NSW. F O R M O R E I N F O R M AT I O N C O N TA C T:
Graham Gooding Chairman, Central Victorian AUSIMM PO Box 1298 Mail Centre Ballarat Telephone (03) 5332 6865
John Reynolds – retiring after more than 50 years in the industry.
tor located directly behind it, where the minerals are removed from the sand by centrifugal and magnetic processes which produce highgrade concentrates.
Mineral sands extraction at RZM’s Wemen project will be by traditional floating dredge and concentrator techniques used by the company in NSW.
These concentrates are then pumped to land based stockpiles to settle and dry.
tonnes of magnetic concentrate (ilmenite).
The actual operating area, which will cover approximately one square kilometre, will contain the 200 metre long by 200 metre wide dredge pond and move at a rate of approximately 80 metres per month along the orebody. Tailings, overburden and soil will be progressively replaced once the operations pass through. The time between mining and rehabilitation, on any part of the operation, will generally be less than one year, with full rehabilitation of mined land to agricultural use within two years, with productivity equal or possibly better than existing levels. The dredge and concentrator have a maximum throughput capacity of 600 tonnes per hour. However, a throughput of 450 tph will be adopted for the Wemen operations, which will achieve an annual throughput rate of 2.5 million tonnes (on the basis of a five-day week). Annual production of heavy mineral concentrate is estimated around 40,000 tonnes of non-magnetic concentrate (rutile and zircon) and 40,000
EXPRESSION OF INTEREST MURRAY BASIN CONFERENCE 21-23 April 1999, Mildura, Victoria Name
“Stringent measures have been taken to make sure that the local community is well informed on all issues, which range from water supply and management, storage and fauna, dust, noise and relevant archeological and historical sites,” Mr Brown said. “Through active community consultation, commissioning of independent specialist studies and the publication of the EES, we have addressed many of the issues concerning the local community. “However, as the first operation of its type in the region and as such, a major new element in the social and economic landscape, we will be closely monitoring all aspects of the operation once it has been given the green light to proceed. “We are currently looking at establishing an Environmental Review Committee (ERC) involving Wemen community representatives that would be actively consulted and oversee that all environmental commitments outlined in the EES are met or that any revisions are monitored and reviewed.” Mr Brown added that the project would provide new employment opportunities and, by virtue of the multiplier effect, benefit existing and create new suppliers of goods and services.
Organisation Title or Position Address
ictorian mining industry legend John Reynolds, has retired after a career spanning more than 50 years.
A metallurgist and chemical engineer for most of his working life, Mr Reynolds reached the age of “statutory senility” in 1986 but took on a new challenge as the founder of the Victorian Chamber of Mines. Now, after 11 years with the VCM and at the age of 77, he is finally downing tools to enjoy the retirement he never really started. Chris Fraser, a mining engineer with 30 years experience in the engineering and mineral industries, is VCM’s new executive director (see story box). VCM President Doug Buerger, said, “Chris Fraser will take over a very soundly based organisation built up under the stewardship of John Reynolds. “John will be sorely missed. However, we look forward to his continued input as a life member of the VCM.” Mr Reynolds was born in Melbourne and educated at Wesley College and Melbourne University, where he earned a science degree specialising in metallurgy. His interest in metallurgy was sparked by his father who was chief chemist and later deputy master of the Royal Mint in Melbourne. “I used to get taken on factory excursions.... and I got a bit interested in the Mint which dealt in metals,” Mr Reynolds said. “I graduated in 1943 during the war but I was immediately ‘manpowered’ which meant I couldn’t get into the defence force. “We were just locked in, and every time we moved out we got dragged back in to finish our course so we could join the war effort.”
“Initial construction of the mine will require 23 employees and once operational this will increase to 44, including contractors,” he said.
Country Tel
Initially, the heavy mineral concentrate will be transported by rail to RZM’s dry separation plant at Tomago in New South Wales and separated into rutile and zircon products for sale on the world markets. The ilmenite will be stockpiled for a maximum of 18 months or until a market is found for it.
V
Postcode Fax
E-mail All expressions of interests, queries and abstracts should be sent to: PO Box 1298 Mail Centre, Ballarat, Victoria 3354 Australia Or, for more information, contact Rebecca Norton at: Phone (613) 5332 6865 Fax (613) 5333 6516 e-mail [email protected]
24
“If government approvals are completed in the next few months, we could begin site works by the end of the year and finally produce the first heavy mineral concentrate mid 1999.” F O R M O R E I N F O R M AT I O N C O N TA C T:
Mr Grieve Brown, general manager, RZM Ltd Telephone (03) 4964 8081
Chris Fraser
His first job was at the munitions supply laboratories but he later moved to Port Kembla into copper smelting and refining. That job lasted until 1946 when he returned to Melbourne to work with the government “in a grandiose thing called the Department of Post-War Reconstruction”. “We just wrote reports and did investigations and I could never see anything happening so I got sick of that,” he said. Contacts in the smelting industry helped him land a job with the Imperial Smelting Company at the Avonmouth smelter in the United Kingdom, now owned by Mt Isa Mines. “In 1949 they sent me back to Cockle Creek, south of Newcastle and I was there until 1969. “I was superintendent of the acid plants. We had seven of the bloody things of varying ages and decrepitude to try and run and we were under pressure because the fertiliser market was growing and we needed every tonne we could get” His experience led to a new interest in a major research program into smelter technology with CRA. This work put him in contact with the Western Mining Corp (now WMC Ltd) which was considering adopting the CRA smelter technology.
VCM’s new executive director Chris Fraser holds a Bachelor of Engineering degree from RMIT and a qualification in Applied Science in Geology from Canberra CAE. He has also completed the advanced Management Program of the Australian Management College at Mt Eliza, is a fellow of the AUSIMM and holds a Mine Manager’s certificate. He started his career with the Snowy Mountains Engineering Corp in 1969 and worked with the Victorian State Electricity Commission, later becoming general manager, mining for Yallourn Energy Ltd. While in that post he was elected an executive councillor of the VCM. Early in 1996, he joined Geo-Eng Pty Ltd becoming regional manager, Indonesia in 1996 while also operating as principal engineer - mining for the company.
25
In 1972 he switched to Western Mining and became the company’s commercial manager, nickel. After some organisational changes in Western Mining, he became corporate manager planning and later moved into a new role of manager, corporate affairs. “It was one of the first appointments of that nature in the mining industry and we had to find out what corporate affairs meant. It meant discovering the environment and politics, uranium debates and international ramifications, so if was a very interesting time,” he said. By 1986, Mr Reynolds was approaching retirement. However, he opted instead to help form the Victorian Chamber of Mines and became its first executive director in January, 1987, at the age of 65. Now, retiring for the second and final time, he will retain an active interest in Victorian mining. He is a director of Golden Heritage Mining NL, a local explorer, and also plans to work part time as a consultant.
GEOLOGY NEWS
New Grampians mapping unlocks old secrets Recent work by the Geological Survey of Victoria has changed many of the old concepts of the regional geological setting of the Grampian Ranges and resulted in the generation of many new exploration targets in surrounding areas.
Infra-red LANDSAT image of the Grampians. Numerous large faults separate flat sheets of sandstone, clearly visible in the northern and eastern parts of the ranges. The large fold is the Wartook Syncline. Image: Australian Centre for Remote Sensing, Canberra.
he Grampians Ranges contains some of the most spectacular and scenic areas in Victoria. The ranges dominate the skyline from the surrounding plains and the jagged sandstone ranges and cliffs are unlike any other part of Victoria.
T
This poses an interesting question. While Victoria is trying to encourage mineral explorers to come to this state, why should the Geological Survey Group spend some of its scarce resources mapping an area from which mineral exploration companies are excluded?
It is the unusualness of the rock formations that attracts thousands of tourists to the area each year, and that same unusualness has also attracted the attention of MPV’s Geological Survey mapping team. The Grampians rocks are very different to the typical shales, siltstone and greywackes of the Victorian goldfields and they are completely different to the schists and gneisses of the Glenelg Province to the west. How were the Grampians formed? How did they get where they are today? Are they an integral part of the geological formation of Western Victoria or are they simply more recent rocks deposited in a shallow post-cratonic basin? These questions, of considerable interest and importance to geologists, relate to an area that is almost completely enclosed in a National Park.
However, not all the Grampians Group rocks are confined to the National Park. Grampians rocks occur in the Dundas Range, at Black Range and under Murray Basin cover to the north-west of Horsham.
STAWELL GOLDFIELD
MT DRUMMOND Pleasant Creek Fault
Stawell Fault
Magdala Antiform
CONCONGELLA HILL
Coongee Fault
So ut h
Mo yst on
Concongella Fault
Fa ult
Gold has been mined from several areas within the ranges, especially adjacent to granitic and porphyry intrusions. A very interesting palaeoplacer conglomerate horizon has been mined at Pohlners workings near Wartook. Traces of copper mineralisation have been recorded and several thin stratigraphic horizons within the ranges display strongly anomalous radioactivity. As well as this simple economic interest in the Grampians, there was a real need to understand the regional geological and structural setting of the adjacent Stawell mine (Victoria’s largest gold producer), the gold mining centres of Ararat and Moyston and the base metal prospects at Mt Ararat, Stavely, Mt Dryden and the Black Range. Therefore, although the Grampians is excluded from company exploration, an understanding of the area is crucial to the full understanding of the surrounding region and to the determination of its geological history. Recent detailed geological mapping of the Grampians area by Ross Cayley and David Taylor of the Geological Survey Victoria has solved many long term problems in Western Victorian geology. It has changed many of the old concepts of the regional geological setting and resulted in the generation of many new exploration targets in the surrounding areas.
Fa ult
CROSS SECTION THROUGH MT DRUMMOND / STAWELL GOLDFIELD / CONCONGELLA HILL
26
One of the most exciting scientific discoveries is the resolution of a long debated geological problem; the location of the eastern edge of the ancient Australian continent in western Victoria.
Cayley and Taylor have shown that the eastdipping Moyston Fault separates ancient Australia to the west (including the Adelaide Fold Belt), from the younger rocks of eastern Australia, now known as the Lachlan Fold Belt. The Moyston Fault is not only one of the largest faults recognised so far in Victoria, but appears to be a first-order control on Victoria’s gold. Central Victorian-style gold deposits, including Stawell, only occur east of the Moyston Fault, which is itself mineralised at Moyston. In the Cambrian to Ordovician periods (540430 Million years ago), before the Moyston Fault was active, marine volcanics and sediments were deposited in an ocean east of the present day Moyston Fault. They were deformed in the Ordovician and Silurian periods (440-420 million years ago), to become the Lachlan Fold Belt. In most places in the Lachlan Fold Belt in Victoria, only the upper (sedimentary) part of this sequence is exposed- the older marine volcanics remain deeply buried in the crust. It is only along major faults such as the Moyston that these deep level volcanics are brought to the surface in narrow north-south trending fault-bounded slices. Rocks of the Adelaide Fold Belt just to the west, were deformed in the Cambrian period, some 60 to 80 million years earlier. The Lachlan Fold Belt rocks just east of the Moyston Fault have an unusually complex character resulting from intense deformation and heating which occurred deep in the earth’s crust. They have been named the Moornambool Metamorphic Complex. These rocks, in which
the amphibolite metamorphic grades are among the highest recorded in Victoria, were subsequently brought towards the surface along the Moyston Fault. The Moornambool Metamorphic Complex occupies a 15 km wide region between the Moyston and Coongee faults and represents the midcrustal levels of the Lachlan Fold Belt emplaced upwards and westwards over a ramp of more ancient Adelaide Fold Belt rocks. Massive sulphide base-metal deposits associated with the volcanic rocks have also been brought to the surface within the complex as fault-bounded, strongly deformed lenses, such as at the Mount Ararat copper prospect. Cayley and Taylor’s recent mapping of the Grampians has turned out to be an intriguing and key part of this story. Once regarded as a thick, simple sequence of sediments, the Grampians are now seen as much more complex. They share a common geological history with Lachlan Fold Belt rocks to the east of the Moyston Fault. The Geological Survey mapping has recognised numerous bedding-parallel faults within the Grampians which stack thick sandstone layers, effectively thickening the original sequence by around 100%. The faults are folded about large scale folds and the whole complex is truncated at depth by a low angle fault which separates the Grampians from the older Adelaide Fold Belt rocks beneath. The deformation seen in the Grampians is not expressed in the Adelaide Fold Belt rocks beneath or to the west and is instead linked to the much younger Lachlan Fold 27
Belt deformation east of the Moyston Fault. As parts of the Lachlan Fold Belt were forced westwards onto the Adelaide Fold Belt along the Moyston Fault, the Grampians Group sequence was pushed west across the Adelaide Fold Belt and deformed in a ‘thin-skinned’ fashion. Rather than a thick fault-bounded basin fill, the Grampians have now been identified as exotic remnants of a fold and thrust belt that formed from fluvial to shallow marine sediments. They are the lateral equivalents of the deep water sediments in central Victoria and have been thrust up onto what was the edge of the Australian Continent in Cambrian to Silurian times some 540 - 410 million years ago. The unravelling of the stacked nature and westward transport direction for the deformation of the Grampians Group sediments has led directly to the understanding of the fundamental nature of the Moyston Fault as the boundary between two very different structural domains, each with very different geological histories. The structure and setting of the Grampians was the vital clue to the structure of the whole western Victorian region. These new ideas on the development of western Victoria will give exploration geologists the conceptual models they need to target mineralisation. The Stawell Gold mine can now be understood on a much broader scale, for example. While it has long been known that large faults have localised Stawell’s auriferous veins, Cayley and Taylor have shown that these faults are components of a regional network of faults. The mine faults link into the newly recognised Pleasant Creek Fault just west of Stawell
GEOLOGY NEWS
New Grampians mapping unlocks old secrets Recent work by the Geological Survey of Victoria has changed many of the old concepts of the regional geological setting of the Grampian Ranges and resulted in the generation of many new exploration targets in surrounding areas.
Infra-red LANDSAT image of the Grampians. Numerous large faults separate flat sheets of sandstone, clearly visible in the northern and eastern parts of the ranges. The large fold is the Wartook Syncline. Image: Australian Centre for Remote Sensing, Canberra.
he Grampians Ranges contains some of the most spectacular and scenic areas in Victoria. The ranges dominate the skyline from the surrounding plains and the jagged sandstone ranges and cliffs are unlike any other part of Victoria.
T
This poses an interesting question. While Victoria is trying to encourage mineral explorers to come to this state, why should the Geological Survey Group spend some of its scarce resources mapping an area from which mineral exploration companies are excluded?
It is the unusualness of the rock formations that attracts thousands of tourists to the area each year, and that same unusualness has also attracted the attention of MPV’s Geological Survey mapping team. The Grampians rocks are very different to the typical shales, siltstone and greywackes of the Victorian goldfields and they are completely different to the schists and gneisses of the Glenelg Province to the west. How were the Grampians formed? How did they get where they are today? Are they an integral part of the geological formation of Western Victoria or are they simply more recent rocks deposited in a shallow post-cratonic basin? These questions, of considerable interest and importance to geologists, relate to an area that is almost completely enclosed in a National Park.
However, not all the Grampians Group rocks are confined to the National Park. Grampians rocks occur in the Dundas Range, at Black Range and under Murray Basin cover to the north-west of Horsham.
STAWELL GOLDFIELD
MT DRUMMOND Pleasant Creek Fault
Stawell Fault
Magdala Antiform
CONCONGELLA HILL
Coongee Fault
So ut h
Mo yst on
Concongella Fault
Fa ult
Gold has been mined from several areas within the ranges, especially adjacent to granitic and porphyry intrusions. A very interesting palaeoplacer conglomerate horizon has been mined at Pohlners workings near Wartook. Traces of copper mineralisation have been recorded and several thin stratigraphic horizons within the ranges display strongly anomalous radioactivity. As well as this simple economic interest in the Grampians, there was a real need to understand the regional geological and structural setting of the adjacent Stawell mine (Victoria’s largest gold producer), the gold mining centres of Ararat and Moyston and the base metal prospects at Mt Ararat, Stavely, Mt Dryden and the Black Range. Therefore, although the Grampians is excluded from company exploration, an understanding of the area is crucial to the full understanding of the surrounding region and to the determination of its geological history. Recent detailed geological mapping of the Grampians area by Ross Cayley and David Taylor of the Geological Survey Victoria has solved many long term problems in Western Victorian geology. It has changed many of the old concepts of the regional geological setting and resulted in the generation of many new exploration targets in the surrounding areas.
Fa ult
CROSS SECTION THROUGH MT DRUMMOND / STAWELL GOLDFIELD / CONCONGELLA HILL
26
One of the most exciting scientific discoveries is the resolution of a long debated geological problem; the location of the eastern edge of the ancient Australian continent in western Victoria.
Cayley and Taylor have shown that the eastdipping Moyston Fault separates ancient Australia to the west (including the Adelaide Fold Belt), from the younger rocks of eastern Australia, now known as the Lachlan Fold Belt. The Moyston Fault is not only one of the largest faults recognised so far in Victoria, but appears to be a first-order control on Victoria’s gold. Central Victorian-style gold deposits, including Stawell, only occur east of the Moyston Fault, which is itself mineralised at Moyston. In the Cambrian to Ordovician periods (540430 Million years ago), before the Moyston Fault was active, marine volcanics and sediments were deposited in an ocean east of the present day Moyston Fault. They were deformed in the Ordovician and Silurian periods (440-420 million years ago), to become the Lachlan Fold Belt. In most places in the Lachlan Fold Belt in Victoria, only the upper (sedimentary) part of this sequence is exposed- the older marine volcanics remain deeply buried in the crust. It is only along major faults such as the Moyston that these deep level volcanics are brought to the surface in narrow north-south trending fault-bounded slices. Rocks of the Adelaide Fold Belt just to the west, were deformed in the Cambrian period, some 60 to 80 million years earlier. The Lachlan Fold Belt rocks just east of the Moyston Fault have an unusually complex character resulting from intense deformation and heating which occurred deep in the earth’s crust. They have been named the Moornambool Metamorphic Complex. These rocks, in which
the amphibolite metamorphic grades are among the highest recorded in Victoria, were subsequently brought towards the surface along the Moyston Fault. The Moornambool Metamorphic Complex occupies a 15 km wide region between the Moyston and Coongee faults and represents the midcrustal levels of the Lachlan Fold Belt emplaced upwards and westwards over a ramp of more ancient Adelaide Fold Belt rocks. Massive sulphide base-metal deposits associated with the volcanic rocks have also been brought to the surface within the complex as fault-bounded, strongly deformed lenses, such as at the Mount Ararat copper prospect. Cayley and Taylor’s recent mapping of the Grampians has turned out to be an intriguing and key part of this story. Once regarded as a thick, simple sequence of sediments, the Grampians are now seen as much more complex. They share a common geological history with Lachlan Fold Belt rocks to the east of the Moyston Fault. The Geological Survey mapping has recognised numerous bedding-parallel faults within the Grampians which stack thick sandstone layers, effectively thickening the original sequence by around 100%. The faults are folded about large scale folds and the whole complex is truncated at depth by a low angle fault which separates the Grampians from the older Adelaide Fold Belt rocks beneath. The deformation seen in the Grampians is not expressed in the Adelaide Fold Belt rocks beneath or to the west and is instead linked to the much younger Lachlan Fold 27
Belt deformation east of the Moyston Fault. As parts of the Lachlan Fold Belt were forced westwards onto the Adelaide Fold Belt along the Moyston Fault, the Grampians Group sequence was pushed west across the Adelaide Fold Belt and deformed in a ‘thin-skinned’ fashion. Rather than a thick fault-bounded basin fill, the Grampians have now been identified as exotic remnants of a fold and thrust belt that formed from fluvial to shallow marine sediments. They are the lateral equivalents of the deep water sediments in central Victoria and have been thrust up onto what was the edge of the Australian Continent in Cambrian to Silurian times some 540 - 410 million years ago. The unravelling of the stacked nature and westward transport direction for the deformation of the Grampians Group sediments has led directly to the understanding of the fundamental nature of the Moyston Fault as the boundary between two very different structural domains, each with very different geological histories. The structure and setting of the Grampians was the vital clue to the structure of the whole western Victorian region. These new ideas on the development of western Victoria will give exploration geologists the conceptual models they need to target mineralisation. The Stawell Gold mine can now be understood on a much broader scale, for example. While it has long been known that large faults have localised Stawell’s auriferous veins, Cayley and Taylor have shown that these faults are components of a regional network of faults. The mine faults link into the newly recognised Pleasant Creek Fault just west of Stawell
