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
N O V E M B E R
1 9 9 9
INSIDE THIS ISSUE •
MINERS HELP CLEANUP
•
OTWAY BASIN INTEREST
•
NEW DATA RELEASE
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
N O V E M B E R
1 9 9 9
contents MINERS AID DOCKLANDS CLEANUP
2
Mining industry skills help a major redevelopment
VIC WEATHERS SPENDING SLUMP
4
Trend figures show Victoria is doing better than other states
OTWAY BASIN ATTRACTS NEW PLAYERS
6
More companies join the search for gas
UNDERGROUND STORAGE BOOSTS GAS RESERVES
8
WUGS means more security for Victoria’s gas supplies
SANTOS STARTS VICTORIAN GAS PRODUCTION
10
More gas flows for Victorian consumers
MINERAL SANDS TENDERS ATTRACT MANY BIDDERS
10
Explorers snap up new mineral sands acreage
VICTORIAN MINERS READY FOR ANYTHING
cover picture
11
Stawell’s safety team make it two in a row
ALL THAT GLITTERS ISN’T GOLD
18
Victoria’s commitment to providing high-quality airborne geophysical data over the vast majority of the state is providing explorers with unequalled advantages in locating exploration targets. The latest package of airborne magnetic and geophysical data plus accompanying maps was released during Victorian Mining Week in November. It covers large areas of eastern Victoria and the highlands near Omeo. Our cover image is one of the many new images from the latest data release and covers the Mansfield-Howitt region.
Victoria’s Mining Week focuses on new minerals
NEW DATA WILL BOOST EXPLORATION
19
Explorers get plenty of encouragement from this new data release
BOOST FOR BASE METALS TOO!
21
GSV reveals a new look at the prospects for base metals
MINERAL REPORTING STANDARDS AND THE JORC CODE
There’s a new force in developing Victoria’s mining and oil and gas industries.
2 001
It’s called VIMP 2001 (the Victorian Initiative for Minerals and Petroleum for the 21st Century) and has already led to major new discoveries, particularly of gold, base metals and world-class deposits of mineral sands. Funded by the Victorian State Government, the VIMP 2001 program uses the latest technology to provide industry with extensive geophysical and geological data. New information is being added continuously, particularly from airborne geophysical surveys both on and offshore, broadening the knowledge of Victoria’s sedimentary basins and identifying exciting new target areas of mineralisation. Contact Minerals and Petroleum
Minerals and Petroleum Victoria Level 15, 8 Nicholson Street East Melbourne Victoria 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
22
Australia leads the world in setting the standards
A SHOW FOR LAKES OIL
24
The pioneering spirit is still alive in the Gippsland Basin
NEW LIGHT ON HIGHLANDS
25
New geological data is released for the Omeo region
COMPETITION FOR KIPPER DEVELOPMENT SPREADS
28
More companies join the Kipper group
NEW RFA HAS LITTLE IMPACT ON EXPLORERS
28
Victoria signs another regional forest agreement
regular features RESPONSIBLE INDUSTRY WILL BE GOVT FOCUS
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.
5
New Minister Candy Broad has positive plans for the industry
INDUSTRY NEWS
12
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.
What’s new in the Victorian industry
RESOURCES MAP
14
A visual review of Victoria’s mineral 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 mineral exploration licences
OIL AND GAS RESOURCES
17
Victoria’s major petroleum resources
© Minerals and Petroleum Victoria 1999.
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: Rex Banks. 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
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
N O V E M B E R
1 9 9 9
contents MINERS AID DOCKLANDS CLEANUP
2
Mining industry skills help a major redevelopment
VIC WEATHERS SPENDING SLUMP
4
Trend figures show Victoria is doing better than other states
OTWAY BASIN ATTRACTS NEW PLAYERS
6
More companies join the search for gas
UNDERGROUND STORAGE BOOSTS GAS RESERVES
8
WUGS means more security for Victoria’s gas supplies
SANTOS STARTS VICTORIAN GAS PRODUCTION
10
More gas flows for Victorian consumers
MINERAL SANDS TENDERS ATTRACT MANY BIDDERS
10
Explorers snap up new mineral sands acreage
VICTORIAN MINERS READY FOR ANYTHING
cover picture
11
Stawell’s safety team make it two in a row
ALL THAT GLITTERS ISN’T GOLD
18
Victoria’s commitment to providing high-quality airborne geophysical data over the vast majority of the state is providing explorers with unequalled advantages in locating exploration targets. The latest package of airborne magnetic and geophysical data plus accompanying maps was released during Victorian Mining Week in November. It covers large areas of eastern Victoria and the highlands near Omeo. Our cover image is one of the many new images from the latest data release and covers the Mansfield-Howitt region.
Victoria’s Mining Week focuses on new minerals
NEW DATA WILL BOOST EXPLORATION
19
Explorers get plenty of encouragement from this new data release
BOOST FOR BASE METALS TOO!
21
GSV reveals a new look at the prospects for base metals
MINERAL REPORTING STANDARDS AND THE JORC CODE
There’s a new force in developing Victoria’s mining and oil and gas industries.
2 001
It’s called VIMP 2001 (the Victorian Initiative for Minerals and Petroleum for the 21st Century) and has already led to major new discoveries, particularly of gold, base metals and world-class deposits of mineral sands. Funded by the Victorian State Government, the VIMP 2001 program uses the latest technology to provide industry with extensive geophysical and geological data. New information is being added continuously, particularly from airborne geophysical surveys both on and offshore, broadening the knowledge of Victoria’s sedimentary basins and identifying exciting new target areas of mineralisation. Contact Minerals and Petroleum
Minerals and Petroleum Victoria Level 15, 8 Nicholson Street East Melbourne Victoria 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
22
Australia leads the world in setting the standards
A SHOW FOR LAKES OIL
24
The pioneering spirit is still alive in the Gippsland Basin
NEW LIGHT ON HIGHLANDS
25
New geological data is released for the Omeo region
COMPETITION FOR KIPPER DEVELOPMENT SPREADS
28
More companies join the Kipper group
NEW RFA HAS LITTLE IMPACT ON EXPLORERS
28
Victoria signs another regional forest agreement
regular features RESPONSIBLE INDUSTRY WILL BE GOVT FOCUS
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.
5
New Minister Candy Broad has positive plans for the industry
INDUSTRY NEWS
12
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.
What’s new in the Victorian industry
RESOURCES MAP
14
A visual review of Victoria’s mineral 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 mineral exploration licences
OIL AND GAS RESOURCES
17
Victoria’s major petroleum resources
© Minerals and Petroleum Victoria 1999.
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: Rex Banks. 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
ENVIRONMENT
WEST MELBOURNE GAS WORKS, A LIVING HISTORY The West Melbourne Gas Works was built and completed in 1856 on the northern side of the Yarra River by the City of Melbourne Gas and Coke Company. Originally the gasworks operated on a two hectare but between 1900 to 1910 extra land was acquired to allow for a major extension of the retort houses and associated gas storage tanks. In 1962 a catalytic oil to gas conversion plant was established at the site following the demolition of a number of retort houses. Earlier, in 1950 the Gas and Fuel Corporation of Victoria had been established to become the umbrella organisation for the unification of the previously diverse gas industry in Victoria and to start production of gas from the State’s vast brown coal reserves. Gas production at the West Melbourne site continued until 1970, when natural gas was introduced across the state. The massive task of converting household and industrial gas appliances from town gas to natural gas took over a year but in 1970 the West Melbourne gas works closed with the buildings and gasometer storage tanks demolished in 1974. However demolition was confined to the removal of above ground structures. Buried structures such as tar pits, gas holder sumps and miscellaneous pits and pipelines were left in place, creating today’s environmental problem.
Miners aid Docklands cleanup T
he ambitious redevelopment of Melbourne’s Yarra River heartland is rejuvenating a vast area of waterfront property lost for a century to wharves and heavy industry, re-acquainting the state with its maritime origins.
Most Victorians have never seen the inner city parts of the Yarra River area which has been effectively barricaded from the city by the high wire fences surrounding the Spencer Street rail yards, unsightly cargo sheds and the former West Melbourne Gas Works. Now the area is being reclaimed by the city as new life is being pumped into the area through the development of the Docklands stadium and creation of a whole new residential and light commercial precinct. But some parts of the site, now known as Docklands, still require substantial effort and considerable technical expertise before the ground can be reused. In particular, the former West Melbourne Gasworks site must undergo a major environmental rehabilitation program to remove soil contaminants, a legacy of a century of industrial practices, thankfully no longer acceptable. The large scale of the contamination and the complex nature of the hydrocarbons and other chemicals in the soil has required the skills of
the mining industry to be employed in the site remediation.
Industrial site remediation specialist Enterra Pty Ltd, with back-up from engineering and environmental specialists such as GHD and Woodward-Clyde, has been awarded a $46 million contract to rehabilitate the eight hectare site. One innovative solution to the problem of contamination at the old gasworks will also help generate electricity for Victoria while removing potentially harmful waste products.
Up to 40,000 tonnes of heavily contaminated soil from the gasworks site will be removed and sent to the Hazelwood power station near Morwell where it will be mixed with brown coal and burnt as fuel. The high content of tars and similar products make it a useful addition to the brown coal normally burnt in the power station. Ash from the power station will be sent to landfill as normal. The West Melbourne Gas Works produced coal gas for over a century, from 1856 until its closure in 1970, after the development of natural gas from Bass Strait. To manufacture coal gas, black coal, acquired from the coal fields of New South Wales, was heated in a vacuum to prevent the coal from burning. The vast retort houses, where the coal was heated, were a familiar landmark at the city’s 2
western end for a century, with the tall chimney stacks creating an impressive reminder of the industrial progress of Melbourne, one of the first cities in the world to widely reticulate gas for domestic and industrial use.
In more recent times the West Melbourne works also processed crude oil and industrial waste oils to manufacture gas, generating a different range of waste products. Once heated the coal or oil turns into gas but also produces a large range of other products such as coal tar, bitumen and waste products, some of which were discarded on site. The gas serviced homes and industries throughout Melbourne, while coal tars were used to make bitumen and valuable household and industrial products, including soaps, medicines and dyes. For a century coal gas played a crucial role in the economic development of Melbourne but the introduction of clean-burning, natural gas superseded the need for coal gas. Over its 100 year working life waste and liquid by-products from the gas making process were deposited into storage ponds on-site, a common practice in gas works around the world. But when the gas works was finally decommissioned, it was only demolished to ground level, leaving the underground waste pits still remaining on the site.
New residential precincts will be developed in the area formerly occupied by the old West Melbourne gasworks.
Substantial testing has been conducted over several years to determine the location and nature of the contaminants. Significant levels of contamination at the West Melbourne Gas Works have been identified to depths of 3 to 5 metres and are more concentrated within the boundaries of the gas works site. Further contamination has been located off site in areas where gas works waste may have been used for landfill in surrounding areas. The contaminants identified include metals, cyanide, monocyclic aromatic hydrocarbons (MAH’s), polycyclic aromatic hydrocarbons (PAHs), phenols, sulphate, tar and ammomiacol liquors.
risk to the health of human beings or the environment; • Protects the use of the land and surrounding area for the purpose of and for the future use of the development; • Protects the existing beneficial uses of the Yarra River and the groundwater; and • Qualifies the premises to be issued with a statement by an environmental auditor attesting to the suitability of the land for the development.
Metal contamination is likely to have come from both fill material and gasworks waste. Soils on site contain a mixture of assorted building rubble and gas works by-products including black staining, tar and oily liquids.
Past practice for remediating these sites usually involved removing much of the contaminated soil and transporting it to an EPA-licensed contained landfill before refilling the hole with clean soil from elsewhere.
The Environment Protection Authority issued a clean-up notice on August 15, 1994. The notice required the State to undertake a series of cleanup measures to remove contaminants and rehabilitate the land occupied by the former gas works site to a standard that:
But modern EPA guidelines are aimed at minimising the volume of material going to landfill so the latest soil rehabilitation processes involve containing contaminants in a sealed enclosure on site and treating and re-using other contaminated material on site.
• Ensures that the development can proceed in a safe manner and that there is no undue
These are processes developed and most often used at mine sites where large areas can be contaminated by tailings or waste rock dumps.
3
The remediation works will renew the gasworks site, creating eight hectares of prime waterfront land safe for residential and commercial development. During the rehabilitation work local residents and commuters, particularly at Spencer Street railway station may notice some odours as the underground storage pits are excavated and the contaminated soil removed. Up to 40,000 tonnes of soil will be transported by covered trucks to Hazelwood power station. After the work is complete the contained portion of the site will be turned into an attractive boulevard and public parkland. The remainder of the land will be released for sale to commercial and residential developers who will create a new business and residential precinct right on the waterfront, something Melbourne has never before experienced. F O R M O R E I N F O R M AT I O N C O N TA C T:
Matthew Russell Public Affairs Officer, Docklands Authority Telephone (03) 9628 4499
ENVIRONMENT
WEST MELBOURNE GAS WORKS, A LIVING HISTORY The West Melbourne Gas Works was built and completed in 1856 on the northern side of the Yarra River by the City of Melbourne Gas and Coke Company. Originally the gasworks operated on a two hectare but between 1900 to 1910 extra land was acquired to allow for a major extension of the retort houses and associated gas storage tanks. In 1962 a catalytic oil to gas conversion plant was established at the site following the demolition of a number of retort houses. Earlier, in 1950 the Gas and Fuel Corporation of Victoria had been established to become the umbrella organisation for the unification of the previously diverse gas industry in Victoria and to start production of gas from the State’s vast brown coal reserves. Gas production at the West Melbourne site continued until 1970, when natural gas was introduced across the state. The massive task of converting household and industrial gas appliances from town gas to natural gas took over a year but in 1970 the West Melbourne gas works closed with the buildings and gasometer storage tanks demolished in 1974. However demolition was confined to the removal of above ground structures. Buried structures such as tar pits, gas holder sumps and miscellaneous pits and pipelines were left in place, creating today’s environmental problem.
Miners aid Docklands cleanup T
he ambitious redevelopment of Melbourne’s Yarra River heartland is rejuvenating a vast area of waterfront property lost for a century to wharves and heavy industry, re-acquainting the state with its maritime origins.
Most Victorians have never seen the inner city parts of the Yarra River area which has been effectively barricaded from the city by the high wire fences surrounding the Spencer Street rail yards, unsightly cargo sheds and the former West Melbourne Gas Works. Now the area is being reclaimed by the city as new life is being pumped into the area through the development of the Docklands stadium and creation of a whole new residential and light commercial precinct. But some parts of the site, now known as Docklands, still require substantial effort and considerable technical expertise before the ground can be reused. In particular, the former West Melbourne Gasworks site must undergo a major environmental rehabilitation program to remove soil contaminants, a legacy of a century of industrial practices, thankfully no longer acceptable. The large scale of the contamination and the complex nature of the hydrocarbons and other chemicals in the soil has required the skills of
the mining industry to be employed in the site remediation.
Industrial site remediation specialist Enterra Pty Ltd, with back-up from engineering and environmental specialists such as GHD and Woodward-Clyde, has been awarded a $46 million contract to rehabilitate the eight hectare site. One innovative solution to the problem of contamination at the old gasworks will also help generate electricity for Victoria while removing potentially harmful waste products.
Up to 40,000 tonnes of heavily contaminated soil from the gasworks site will be removed and sent to the Hazelwood power station near Morwell where it will be mixed with brown coal and burnt as fuel. The high content of tars and similar products make it a useful addition to the brown coal normally burnt in the power station. Ash from the power station will be sent to landfill as normal. The West Melbourne Gas Works produced coal gas for over a century, from 1856 until its closure in 1970, after the development of natural gas from Bass Strait. To manufacture coal gas, black coal, acquired from the coal fields of New South Wales, was heated in a vacuum to prevent the coal from burning. The vast retort houses, where the coal was heated, were a familiar landmark at the city’s 2
western end for a century, with the tall chimney stacks creating an impressive reminder of the industrial progress of Melbourne, one of the first cities in the world to widely reticulate gas for domestic and industrial use.
In more recent times the West Melbourne works also processed crude oil and industrial waste oils to manufacture gas, generating a different range of waste products. Once heated the coal or oil turns into gas but also produces a large range of other products such as coal tar, bitumen and waste products, some of which were discarded on site. The gas serviced homes and industries throughout Melbourne, while coal tars were used to make bitumen and valuable household and industrial products, including soaps, medicines and dyes. For a century coal gas played a crucial role in the economic development of Melbourne but the introduction of clean-burning, natural gas superseded the need for coal gas. Over its 100 year working life waste and liquid by-products from the gas making process were deposited into storage ponds on-site, a common practice in gas works around the world. But when the gas works was finally decommissioned, it was only demolished to ground level, leaving the underground waste pits still remaining on the site.
New residential precincts will be developed in the area formerly occupied by the old West Melbourne gasworks.
Substantial testing has been conducted over several years to determine the location and nature of the contaminants. Significant levels of contamination at the West Melbourne Gas Works have been identified to depths of 3 to 5 metres and are more concentrated within the boundaries of the gas works site. Further contamination has been located off site in areas where gas works waste may have been used for landfill in surrounding areas. The contaminants identified include metals, cyanide, monocyclic aromatic hydrocarbons (MAH’s), polycyclic aromatic hydrocarbons (PAHs), phenols, sulphate, tar and ammomiacol liquors.
risk to the health of human beings or the environment; • Protects the use of the land and surrounding area for the purpose of and for the future use of the development; • Protects the existing beneficial uses of the Yarra River and the groundwater; and • Qualifies the premises to be issued with a statement by an environmental auditor attesting to the suitability of the land for the development.
Metal contamination is likely to have come from both fill material and gasworks waste. Soils on site contain a mixture of assorted building rubble and gas works by-products including black staining, tar and oily liquids.
Past practice for remediating these sites usually involved removing much of the contaminated soil and transporting it to an EPA-licensed contained landfill before refilling the hole with clean soil from elsewhere.
The Environment Protection Authority issued a clean-up notice on August 15, 1994. The notice required the State to undertake a series of cleanup measures to remove contaminants and rehabilitate the land occupied by the former gas works site to a standard that:
But modern EPA guidelines are aimed at minimising the volume of material going to landfill so the latest soil rehabilitation processes involve containing contaminants in a sealed enclosure on site and treating and re-using other contaminated material on site.
• Ensures that the development can proceed in a safe manner and that there is no undue
These are processes developed and most often used at mine sites where large areas can be contaminated by tailings or waste rock dumps.
3
The remediation works will renew the gasworks site, creating eight hectares of prime waterfront land safe for residential and commercial development. During the rehabilitation work local residents and commuters, particularly at Spencer Street railway station may notice some odours as the underground storage pits are excavated and the contaminated soil removed. Up to 40,000 tonnes of soil will be transported by covered trucks to Hazelwood power station. After the work is complete the contained portion of the site will be turned into an attractive boulevard and public parkland. The remainder of the land will be released for sale to commercial and residential developers who will create a new business and residential precinct right on the waterfront, something Melbourne has never before experienced. F O R M O R E I N F O R M AT I O N C O N TA C T:
Matthew Russell Public Affairs Officer, Docklands Authority Telephone (03) 9628 4499
REGULAR FEATURE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST:
MINERALS AND PETROLEUM DIVISION: Fax: (03) 9412 7834 David Lea Executive Director Minerals and Petroleum Telephone: (03) 9637 8535 David Wallish Business Manager Telephone: (03) 9637 8534 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) 5444 6697 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Tom Dickson Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager - Geophysics Telephone: (03) 9412 5131
Responsible industry will be govt focus
Vic weathers spending slump
HEAD OFFICE: Level 15, 8 Nicholson Street, East Melbourne Vic 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
Kouroush Mehin Acting Manager Petroleum Resources Telephone: (03) 9412 5082
FALL IN EXPLORATION SPENDING 1998/99 COMPARED TO 1997/98 0
NSW
VIC
QLD
SA
WA
TAS
NT
AUST
-5
Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135
-6.9
-10 -15
% fall
MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150
Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081
-14.2
-15
-20
-20.8
-21.5
-25
-25.6
-35 -40 -45
Geoff Collins Manager Petroleum Projects Telephone: (03) 9637 8531
-42.5
T
he level of mineral exploration spending in Victoria has remained relatively strong despite the national down trend over the past two years. Figures released recently by the Australian Bureau of Statistics (ABS), show that for the period to June 30 last, Australia’s level of mineral exploration spending has fallen in each of the past eight consecutive quarters.
MINERALS AND PETROLEUM REGULATION: Fax: (03) 9412 5152 Rob King Manager Minerals and Petroleum Telephone: (03) 9412 5069
Expenditure of $838 million for the year ended June 30 was 21 per cent lower than the previous year ‘s rate of $1,067 million and the lowest reported annual expenditure since the 1993-94 financial year figure of $793 m. Gold was the hardest hit with exploration falling 25 per cent to $486 million in 1998-99. This represented over 70 per cent of the total decrease in all exploration for the year.
George Buckland Manager Minerals and Petroleum Tenements Telephone: (03) 9412 4778
Trend figures show June quarter 1999 mineral exploration spending was 10 per cent lower than the March quarter and 26 per cent lower than the corresponding 1998 June quarter.
INFORMATION: Janne Bonnett Manager Library Telephone: (03) 9412 5022 Fax: (03) 9412 5157
On these figures, national Australia’s quarterly mineral exploration expenditure has fallen by 40 per cent since the peak of $302 million reached in the June quarter of 1997. Drilling activity was also at its lowest annual reported figure since 199293, with 8.1 million metres drilled for exploration to the year ended June 1999. This was 28 per cent down on the previous year. Similarly, petroleum exploration was also down 12 per cent on the previous year, with reported expenditure of $868 million for 1998-99.
Chandri Corray Manager Marketing Development Telephone: (03) 9637 8532 Fax: (03) 9637 8118
The Victorian figures show that exploration did fall sharply in the June quarter, in line with the rest of the country. Spending in the June quarter was $6.7 million, compared with $10.3 million in the March quarter. However on the trend estimates, the March quarter expenditure level of $9.4 million fell to only $8.4 million in the June quarter, only the second consecutive quarter of falling expenditure.
Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025
Nationally, the trend estimate for mineral exploration expenditure fell by 10 per cent in the June quarter, the eighth consecutive quarter to show a decline. Between the March and June 1999 quarters, the trend estimate fell $21 million to $181 million and the June quarter estimate was 40 per cent lower than the peak of $302 million reached in the June quarter 1997, showing that Victorian exploration activity has remained relatively strong.
PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156 Kathy Hill Manager Petroleum Developments Telephone: (03) 9637 8530
The trend estimate for mineral exploration expenditure fell for four states. South Australia was unchanged and Queensland and the Northern Territory reported small increases. The most significant fall was in Western Australia where the trend estimate fell by 17 per cent. 4
t is often said that a week is a long time in politics, but in the last month even a day seems to be a long time!
and petroleum developments goes directly to local and regional communities, in jobs and wealth creation.
As you are aware I have been the Minister for Energy and Resources for eight weeks now and I was in the interesting position of becoming a minister even before I was sworn in as a member of Parliament.
A key focus of this Government’s agenda is the rebuilding of regional Victoria.
-25.5
-30
Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053
I
I believe that responsible mining industries, including minerals and petroleum, can make a significant contribution to that process.
In this, my first Discovery column, it is appropriate for me as a new minister in a new government to comment on the Government’s general thinking as regards your industry.
There are good prospects for new developments in our rich goldfields and for mineral sands in the Mallee and Wimmera.
Firstly, the great contribution that the minerals and petroleum industries have already made to Victoria must be acknowledged.
I am sure that the extractive sector of the minerals industry will continue to provide Victorians with low cost materials to meet the state’s infrastructure and construction needs.
• The discovery of gold was the main driver of Victoria’s early development and the building of Melbourne and our great regional cities, such as Bendigo and Ballarat, • Latrobe Valley coal has provided the vast majority of Victoria’s power since the 1920’s, and • Bass Strait has been Australia’s major oil and gas province and has provided natural gas for Victoria’s domestic use and industry. Much of our secondary industry is based on Bass Strait gas as was so graphically illustrated during the Longford incident last year.
Major gas developments onshore and offshore will help ensure future supply and provide Victoria and New South Wales with energy alternatives and assist in mitigating greenhouse gas emissions in the near to medium term. Innovation and technical advances will enable the brown coal based electricity generators to play their part in meeting the greenhouse challenge. The government will work closely with these mineral and petroleum industries to encourage exploration and facilitate development opportunities.
The great contribution that the mining and petroleum industries have already made to Victoria must be acknowledged. What then for the future of minerals and petroleum in Victoria? The Government recognises the contribution these industries currently make to the state and the potential for them to make a greater contribution in the future. Much of the benefit that flows from mineral
concern that mining, petroleum and pipelining is well regulated and conducted in a manner that minimises the impact on the environment and the amenity of local residents. It is critical to the future prospects of these industries that the community has a high level of confidence in: • The processes by which it can contribute to project approvals and monitoring, • Government as a regulator, and • Industry as a responsible corporate citizen. I believe we all have some more work to do in this area. I am looking forward with immense enthusiasm to working in this portfolio and to developing a close working relationship with representatives of the minerals and petroleum industries.
The role that government plays is very important to the future of both industries - government sets the general investment climate, provides regional geological data for explorers and regulates the industries. One of the challenges which we in government and you in industry face is community 5
Candy Broad Minister for Energy and Resources
REGULAR FEATURE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST:
MINERALS AND PETROLEUM DIVISION: Fax: (03) 9412 7834 David Lea Executive Director Minerals and Petroleum Telephone: (03) 9637 8535 David Wallish Business Manager Telephone: (03) 9637 8534 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) 5444 6697 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Tom Dickson Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager - Geophysics Telephone: (03) 9412 5131
Responsible industry will be govt focus
Vic weathers spending slump
HEAD OFFICE: Level 15, 8 Nicholson Street, East Melbourne Vic 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
Kouroush Mehin Acting Manager Petroleum Resources Telephone: (03) 9412 5082
FALL IN EXPLORATION SPENDING 1998/99 COMPARED TO 1997/98 0
NSW
VIC
QLD
SA
WA
TAS
NT
AUST
-5
Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135
-6.9
-10 -15
% fall
MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150
Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081
-14.2
-15
-20
-20.8
-21.5
-25
-25.6
-35 -40 -45
Geoff Collins Manager Petroleum Projects Telephone: (03) 9637 8531
-42.5
T
he level of mineral exploration spending in Victoria has remained relatively strong despite the national down trend over the past two years. Figures released recently by the Australian Bureau of Statistics (ABS), show that for the period to June 30 last, Australia’s level of mineral exploration spending has fallen in each of the past eight consecutive quarters.
MINERALS AND PETROLEUM REGULATION: Fax: (03) 9412 5152 Rob King Manager Minerals and Petroleum Telephone: (03) 9412 5069
Expenditure of $838 million for the year ended June 30 was 21 per cent lower than the previous year ‘s rate of $1,067 million and the lowest reported annual expenditure since the 1993-94 financial year figure of $793 m. Gold was the hardest hit with exploration falling 25 per cent to $486 million in 1998-99. This represented over 70 per cent of the total decrease in all exploration for the year.
George Buckland Manager Minerals and Petroleum Tenements Telephone: (03) 9412 4778
Trend figures show June quarter 1999 mineral exploration spending was 10 per cent lower than the March quarter and 26 per cent lower than the corresponding 1998 June quarter.
INFORMATION: Janne Bonnett Manager Library Telephone: (03) 9412 5022 Fax: (03) 9412 5157
On these figures, national Australia’s quarterly mineral exploration expenditure has fallen by 40 per cent since the peak of $302 million reached in the June quarter of 1997. Drilling activity was also at its lowest annual reported figure since 199293, with 8.1 million metres drilled for exploration to the year ended June 1999. This was 28 per cent down on the previous year. Similarly, petroleum exploration was also down 12 per cent on the previous year, with reported expenditure of $868 million for 1998-99.
Chandri Corray Manager Marketing Development Telephone: (03) 9637 8532 Fax: (03) 9637 8118
The Victorian figures show that exploration did fall sharply in the June quarter, in line with the rest of the country. Spending in the June quarter was $6.7 million, compared with $10.3 million in the March quarter. However on the trend estimates, the March quarter expenditure level of $9.4 million fell to only $8.4 million in the June quarter, only the second consecutive quarter of falling expenditure.
Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025
Nationally, the trend estimate for mineral exploration expenditure fell by 10 per cent in the June quarter, the eighth consecutive quarter to show a decline. Between the March and June 1999 quarters, the trend estimate fell $21 million to $181 million and the June quarter estimate was 40 per cent lower than the peak of $302 million reached in the June quarter 1997, showing that Victorian exploration activity has remained relatively strong.
PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156 Kathy Hill Manager Petroleum Developments Telephone: (03) 9637 8530
The trend estimate for mineral exploration expenditure fell for four states. South Australia was unchanged and Queensland and the Northern Territory reported small increases. The most significant fall was in Western Australia where the trend estimate fell by 17 per cent. 4
t is often said that a week is a long time in politics, but in the last month even a day seems to be a long time!
and petroleum developments goes directly to local and regional communities, in jobs and wealth creation.
As you are aware I have been the Minister for Energy and Resources for eight weeks now and I was in the interesting position of becoming a minister even before I was sworn in as a member of Parliament.
A key focus of this Government’s agenda is the rebuilding of regional Victoria.
-25.5
-30
Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053
I
I believe that responsible mining industries, including minerals and petroleum, can make a significant contribution to that process.
In this, my first Discovery column, it is appropriate for me as a new minister in a new government to comment on the Government’s general thinking as regards your industry.
There are good prospects for new developments in our rich goldfields and for mineral sands in the Mallee and Wimmera.
Firstly, the great contribution that the minerals and petroleum industries have already made to Victoria must be acknowledged.
I am sure that the extractive sector of the minerals industry will continue to provide Victorians with low cost materials to meet the state’s infrastructure and construction needs.
• The discovery of gold was the main driver of Victoria’s early development and the building of Melbourne and our great regional cities, such as Bendigo and Ballarat, • Latrobe Valley coal has provided the vast majority of Victoria’s power since the 1920’s, and • Bass Strait has been Australia’s major oil and gas province and has provided natural gas for Victoria’s domestic use and industry. Much of our secondary industry is based on Bass Strait gas as was so graphically illustrated during the Longford incident last year.
Major gas developments onshore and offshore will help ensure future supply and provide Victoria and New South Wales with energy alternatives and assist in mitigating greenhouse gas emissions in the near to medium term. Innovation and technical advances will enable the brown coal based electricity generators to play their part in meeting the greenhouse challenge. The government will work closely with these mineral and petroleum industries to encourage exploration and facilitate development opportunities.
The great contribution that the mining and petroleum industries have already made to Victoria must be acknowledged. What then for the future of minerals and petroleum in Victoria? The Government recognises the contribution these industries currently make to the state and the potential for them to make a greater contribution in the future. Much of the benefit that flows from mineral
concern that mining, petroleum and pipelining is well regulated and conducted in a manner that minimises the impact on the environment and the amenity of local residents. It is critical to the future prospects of these industries that the community has a high level of confidence in: • The processes by which it can contribute to project approvals and monitoring, • Government as a regulator, and • Industry as a responsible corporate citizen. I believe we all have some more work to do in this area. I am looking forward with immense enthusiasm to working in this portfolio and to developing a close working relationship with representatives of the minerals and petroleum industries.
The role that government plays is very important to the future of both industries - government sets the general investment climate, provides regional geological data for explorers and regulates the industries. One of the challenges which we in government and you in industry face is community 5
Candy Broad Minister for Energy and Resources
EXPLORATION
EXPLORATION
Otway Basin attracts new players
T H E C O M PA N I E S Woodside Energy Ltd Woodside is Australia’s largest independent oil and gas company and operator of Australia’s largest resource development, the North West Shelf Gas Venture, at Karratha in Western Australia. Woodside’s business is based on liquefied natural gas (LNG), natural gas, condensate, liquid petroleum gases (LPG) and crude oil.
A
major new phase in the exploration of Victoria’s offshore petroleum basins could add substantial new reserves to the state’s already impressive list of oil and gas discoveries.
The company has interests in Australia, Papua New Guinea, West Africa and Cambodia.
A multi-million dollar effort to locate new commercial gas reserves in the offshore Otway Basin region, south of Port Campbell in the state’s west, will start before the end of the year. A joint venture of Woodside Energy, Boral Energy and CalEnergy expects to begin exploring after being awarded a six-year exploration lease over permit area Vic/P43, previously designated V98-2, a 2960 square km area off Victoria’s rugged shipwreck coast.
Boral Energy Resources Limited Boral is the only integrated explorer, producer and distributor of natural gas in Australia and has interests in the Victorian natural gas retailer Energy 21. Boral has also entered the national electricity market and is becoming a significant electricity generator, trader and retailer. The company is an established gas explorer in the Otway Basin and operates producing facilities in Queensland, South Australia, Victoria and Western Australia and owns between 13% and 17% of oil and gas reserves in the CooperEromanga Basins.
Over the next three years, the companies are committed to running a significant seismic program, evaluating existing data and drilling at least one wildcat well offshore. The Otway Exploration Manager for Woodside Energy Ltd, Dr Mark Shuster, said plans were underway for a 71.5 metre seismic vessel, the Western Pride (pictured below), to begin a fourweek program late this year. The seismic survey will cover 800 sq km of the permit area. To record seismic data compressed air is released from underwater cylindrical ‘airguns’ trailed behind the seismic vessel. This generates an acoustic wave which is reflected from rock layers beneath the seabed and is received by pressure sensitive hydrophones also towed within long (up to 5km) cables behind the ship. The time taken for the echo to return to the surface of the sea provides scientists with an accurate picture of the sub-sea rock formations. Data collected will be processed over
CalEnergy Gas (UK) Limited the next six to 12 months to create threedimensional computer images of the earth’s layers and assist in the search for potential oil and gas reservoirs. Sophisticated computer manipulation of the data can identify potential oil and gas reservoirs and direct explorers where best to drill their wells. Dr Shuster said the offshore Otway Basin was prospective for gas. The Vic/P43 permit area lies due south of the BHP owned Minerva gas field and east of the LaBella gas discovery, also made by BHP. “Our companies have identified two areas where we might find gas and we are now planning to better define the geology of the area before deciding where we might drill a well,” Dr Shuster said. Dr Shuster said the joint venture was briefing federal, state and local governments, fishing organisations, conservation groups, shipping authorities, community groups, and members of parliament to ensure people were aware of the seismic program. The joint venturers share a common goal of participating in the eastern Australia gas market and of bringing increased competition and gas supply security to Victoria. Boral and CalEnergy each has a 25% interest in the project and Woodside has a 50% stake. Woodside - operator of Australia’s largest resource pro-
6
CalEnergy is a London-based oil and gas exploration and production company and a subsidiary of Northern Electric and MidAmerican Energy Holdings Company. Northern Electric is one of the United Kingdom’s largest utilities and Mid-American is a large mid-western utilities company.
ject, the North West Shelf gas venture in Western Australia - has been contracted by the joint venture to manage the exploration phase. The joint venturer’s winning work program tender includes: Year 1:
200 sq km of 3D seismic
A recent entrant to Australian oil and gas exploration, the company has a minority interest in the Yolla gas field off northern Tasmania.
500 km of 2D seismic 5000 km of 2D seismic reprocessing Data evaluation Year 2:
Data evaluation
Year 3:
One well
The highly prospective Otway Basin will be explored in a new program of offshore drilling.
Data evaluation Years 4-6:
JUNIOR AIMS TO STRIKE GAS TOO!
One well
Total value of the primary work program (years 1 to 3) is about $15 million, with the secondary work program in years 4 to 6 costing another $15.5 million. The joint venture is proposing to begin seismic acquisition from December 1999 or January 2000 with the program expected to take at least 30 days. F O R M O R E I N F O R M AT I O N C O N TA C T:
Rob Millhouse Public Affairs Manager, Woodside Energy Ltd. Toll Free: 1800678151 W: (08)9348 4281 Mobile (0419) 588 166
A
Perth-based petroleum exploration junior, Strike Oil NL, will also join the exploration push in the offshore Otway Basin after winning the exploration permit V98-4, adjacent to the Boral operated V98-2, in the July acreage release. The V98-4 permit is adjacent to the Minerva and LaBella gas discoveries and holds significant potential for new commercial gas discoveries. The deregulation of the Australian gas industry has created new demand for natural gas as competition between suppliers and distribu-
tors generates new markets. Strike Oil now holds a suite of assets all strategically located to access the rapidly developing east coast gas markets.
and the obvious market benefits that such a location provides, investors have been extremely interested in bidding for the two new licences,” he said.
Federal Resources Minister, Senator Nick Minchin, said the V98-2 and V98-4 permits offered in the July round, offered new potential for discoveries.
Strike Oil has proposed a guaranteed work program for the first three years of a 3D seismic program over 108 square kilometres, geological and geophysical and seismic reprocessing work valued at $1.8 million.
“While there has been some previous exploration of the area, they remain underexplored and of significant potential,” Senator Minchin said. “Because of the exploration area’s relative proximity to Melbourne
7
The company has also proposed a secondary program comprising a further 100 sq km of 3D seismic, comprehensive data review and two wells estimated to cost $18 million.
EXPLORATION
EXPLORATION
Otway Basin attracts new players
T H E C O M PA N I E S Woodside Energy Ltd Woodside is Australia’s largest independent oil and gas company and operator of Australia’s largest resource development, the North West Shelf Gas Venture, at Karratha in Western Australia. Woodside’s business is based on liquefied natural gas (LNG), natural gas, condensate, liquid petroleum gases (LPG) and crude oil.
A
major new phase in the exploration of Victoria’s offshore petroleum basins could add substantial new reserves to the state’s already impressive list of oil and gas discoveries.
The company has interests in Australia, Papua New Guinea, West Africa and Cambodia.
A multi-million dollar effort to locate new commercial gas reserves in the offshore Otway Basin region, south of Port Campbell in the state’s west, will start before the end of the year. A joint venture of Woodside Energy, Boral Energy and CalEnergy expects to begin exploring after being awarded a six-year exploration lease over permit area Vic/P43, previously designated V98-2, a 2960 square km area off Victoria’s rugged shipwreck coast.
Boral Energy Resources Limited Boral is the only integrated explorer, producer and distributor of natural gas in Australia and has interests in the Victorian natural gas retailer Energy 21. Boral has also entered the national electricity market and is becoming a significant electricity generator, trader and retailer. The company is an established gas explorer in the Otway Basin and operates producing facilities in Queensland, South Australia, Victoria and Western Australia and owns between 13% and 17% of oil and gas reserves in the CooperEromanga Basins.
Over the next three years, the companies are committed to running a significant seismic program, evaluating existing data and drilling at least one wildcat well offshore. The Otway Exploration Manager for Woodside Energy Ltd, Dr Mark Shuster, said plans were underway for a 71.5 metre seismic vessel, the Western Pride (pictured below), to begin a fourweek program late this year. The seismic survey will cover 800 sq km of the permit area. To record seismic data compressed air is released from underwater cylindrical ‘airguns’ trailed behind the seismic vessel. This generates an acoustic wave which is reflected from rock layers beneath the seabed and is received by pressure sensitive hydrophones also towed within long (up to 5km) cables behind the ship. The time taken for the echo to return to the surface of the sea provides scientists with an accurate picture of the sub-sea rock formations. Data collected will be processed over
CalEnergy Gas (UK) Limited the next six to 12 months to create threedimensional computer images of the earth’s layers and assist in the search for potential oil and gas reservoirs. Sophisticated computer manipulation of the data can identify potential oil and gas reservoirs and direct explorers where best to drill their wells. Dr Shuster said the offshore Otway Basin was prospective for gas. The Vic/P43 permit area lies due south of the BHP owned Minerva gas field and east of the LaBella gas discovery, also made by BHP. “Our companies have identified two areas where we might find gas and we are now planning to better define the geology of the area before deciding where we might drill a well,” Dr Shuster said. Dr Shuster said the joint venture was briefing federal, state and local governments, fishing organisations, conservation groups, shipping authorities, community groups, and members of parliament to ensure people were aware of the seismic program. The joint venturers share a common goal of participating in the eastern Australia gas market and of bringing increased competition and gas supply security to Victoria. Boral and CalEnergy each has a 25% interest in the project and Woodside has a 50% stake. Woodside - operator of Australia’s largest resource pro-
6
CalEnergy is a London-based oil and gas exploration and production company and a subsidiary of Northern Electric and MidAmerican Energy Holdings Company. Northern Electric is one of the United Kingdom’s largest utilities and Mid-American is a large mid-western utilities company.
ject, the North West Shelf gas venture in Western Australia - has been contracted by the joint venture to manage the exploration phase. The joint venturer’s winning work program tender includes: Year 1:
200 sq km of 3D seismic
A recent entrant to Australian oil and gas exploration, the company has a minority interest in the Yolla gas field off northern Tasmania.
500 km of 2D seismic 5000 km of 2D seismic reprocessing Data evaluation Year 2:
Data evaluation
Year 3:
One well
The highly prospective Otway Basin will be explored in a new program of offshore drilling.
Data evaluation Years 4-6:
JUNIOR AIMS TO STRIKE GAS TOO!
One well
Total value of the primary work program (years 1 to 3) is about $15 million, with the secondary work program in years 4 to 6 costing another $15.5 million. The joint venture is proposing to begin seismic acquisition from December 1999 or January 2000 with the program expected to take at least 30 days. F O R M O R E I N F O R M AT I O N C O N TA C T:
Rob Millhouse Public Affairs Manager, Woodside Energy Ltd. Toll Free: 1800678151 W: (08)9348 4281 Mobile (0419) 588 166
A
Perth-based petroleum exploration junior, Strike Oil NL, will also join the exploration push in the offshore Otway Basin after winning the exploration permit V98-4, adjacent to the Boral operated V98-2, in the July acreage release. The V98-4 permit is adjacent to the Minerva and LaBella gas discoveries and holds significant potential for new commercial gas discoveries. The deregulation of the Australian gas industry has created new demand for natural gas as competition between suppliers and distribu-
tors generates new markets. Strike Oil now holds a suite of assets all strategically located to access the rapidly developing east coast gas markets.
and the obvious market benefits that such a location provides, investors have been extremely interested in bidding for the two new licences,” he said.
Federal Resources Minister, Senator Nick Minchin, said the V98-2 and V98-4 permits offered in the July round, offered new potential for discoveries.
Strike Oil has proposed a guaranteed work program for the first three years of a 3D seismic program over 108 square kilometres, geological and geophysical and seismic reprocessing work valued at $1.8 million.
“While there has been some previous exploration of the area, they remain underexplored and of significant potential,” Senator Minchin said. “Because of the exploration area’s relative proximity to Melbourne
7
The company has also proposed a secondary program comprising a further 100 sq km of 3D seismic, comprehensive data review and two wells estimated to cost $18 million.
SPECIAL FEATURE
Underground storage boosts gas reserves
T
he security of Victoria’s long-term gas supply has been dramatically improved with the completion of three major new pipeline and storage projects, worth more than $250 million, aimed at diversifying the State’s energy supplies. The latest project to come on line is the Western Underground Gas Storage (WUGS) facility near Port Campbell. Built at a cost of more than $100 million, WUGS now provides vital new gas storage reserves for Victoria which can be used at short notice in the event of any interruption to Bass Strait supplies. TXU Australia Pty Ltd (formerly Texas Utilities Australia), a subsidiary of the giant US gas and electricity group, has used the partially depleted gas field near Port Campbell to create the underground gas storage project. Originally conceived by the former Gas and Fuel Corporation before its break-up and sale, the project draws gas produced from Bass Strait fields, and potentially other sources, and pumps it into the partially depleted reservoir of the Iona field, about 8km north of Port Campbell. Nearby fields at Wallaby Creek, North Paarratte and Grumby will be considered for future storage developments. The gas is pumped underground during the low-demand summer months so it is available during peak demand periods in the winter. Speaking at the official opening of the project in August, TXU Australia Chief Executive, Bob Shapard, said that the WUGS project was an additional solution to cater for peak natural gas supply for Victorians.
The new gas processing plant also built at the site removes condensate, water and carbon dioxide from the natural gas stream, although the condensate and carbon dioxide will decline over time as the native gas is replaced by injected gas. Mr Shapard said that a team of up to 400 worked virtually around the clock to complete the processing plant in time for winter 1999. “WUGS project engineers and managers worked closely with the DNRE and the Environment Protection Agency to ensure a comprehensive environmental management program was in place,” he added. The WUGS project has been a dream for Victoria’s gas industry for many years. However, it was the Longford gas plant explosion and subsequent gas shortage in 1998 which, combined with other factors, drew attention to the need for accelerated development of Victoria’s gas storage infrastructure. One key piece of infrastructure was the construction of the $83m Southwest Gas Pipeline which runs from Port Campbell to Lara near Geelong and links the gas fields and pipeline infrastructure of western Victoria to the main gas pipeline network in the Melbourne area and the fields of Bass Strait. As reported in the last issue of Discovery, commissioning of the SouthWest gas pipeline started during May. The pipeline can carry 130 terajoules a day of natural gas in either direction,
“This unique project is Australia’s first commercial underground natural gas storage facility,” he said. “It will feed gas into the Victorian network during high demand periods and will inject gas back into the underground reservoir for storage during lower demand periods.” The WUGS project involved drilling three new injection and withdrawal wells, reperforating two existing wells and drilling two observation wells on the site.
Left: The Southwest gas pipeline terminates at Lara near Geelong where a network of high pressure lines emerge to feed into the main metropolitan gas network. Right: The Western Underground Gas Storage project is a vital link in the strategy to improve the security of Victoria’s gas supply.
9
equivalent to about 14 per cent of peak Victorian winter demand. Victoria’s average winter gas demand is equivalent to 890 Tj a day, but it peaks at up to 1,100 Tj a day. Extra compression facilities could lift capacity to 230 Tj a day and ultimately up to 400 Tj a day if required. This upgrade may be required if BHP develops its Minerva gas field, which lies 10 km offshore from Port Campbell. BHP is expected to make its final decision early next year. Another recently completed project - the upgrading of the ‘interconnect’ gas pipeline from NSW to Victoria - has also added to the certainty of Victorian gas supplies. Costing a $74 million, the pipeline capacity was lifted from 35 Tj a day to 92 Tj a day. Together, the two pipelines (Southwest and the Interconnect) now have the capacity to deliver around 25 per cent of Victoria’s daily winter gas demand in the event of a complete shutdown of supplies from the Esso plant at Longford. And there is still more to come! Duke Energy has started construction on the Eastern Gas Pipeline which will deliver Bass Strait gas from Longford into the Sydney market. Duke Energy hopes to have the pipeline completed by September next year. The 975 km gas pipeline, costing $450 million, is being constructed in five major sections involving three crews totalling about 600 workers.
SPECIAL FEATURE
Underground storage boosts gas reserves
T
he security of Victoria’s long-term gas supply has been dramatically improved with the completion of three major new pipeline and storage projects, worth more than $250 million, aimed at diversifying the State’s energy supplies. The latest project to come on line is the Western Underground Gas Storage (WUGS) facility near Port Campbell. Built at a cost of more than $100 million, WUGS now provides vital new gas storage reserves for Victoria which can be used at short notice in the event of any interruption to Bass Strait supplies. TXU Australia Pty Ltd (formerly Texas Utilities Australia), a subsidiary of the giant US gas and electricity group, has used the partially depleted gas field near Port Campbell to create the underground gas storage project. Originally conceived by the former Gas and Fuel Corporation before its break-up and sale, the project draws gas produced from Bass Strait fields, and potentially other sources, and pumps it into the partially depleted reservoir of the Iona field, about 8km north of Port Campbell. Nearby fields at Wallaby Creek, North Paarratte and Grumby will be considered for future storage developments. The gas is pumped underground during the low-demand summer months so it is available during peak demand periods in the winter. Speaking at the official opening of the project in August, TXU Australia Chief Executive, Bob Shapard, said that the WUGS project was an additional solution to cater for peak natural gas supply for Victorians.
The new gas processing plant also built at the site removes condensate, water and carbon dioxide from the natural gas stream, although the condensate and carbon dioxide will decline over time as the native gas is replaced by injected gas. Mr Shapard said that a team of up to 400 worked virtually around the clock to complete the processing plant in time for winter 1999. “WUGS project engineers and managers worked closely with the DNRE and the Environment Protection Agency to ensure a comprehensive environmental management program was in place,” he added. The WUGS project has been a dream for Victoria’s gas industry for many years. However, it was the Longford gas plant explosion and subsequent gas shortage in 1998 which, combined with other factors, drew attention to the need for accelerated development of Victoria’s gas storage infrastructure. One key piece of infrastructure was the construction of the $83m Southwest Gas Pipeline which runs from Port Campbell to Lara near Geelong and links the gas fields and pipeline infrastructure of western Victoria to the main gas pipeline network in the Melbourne area and the fields of Bass Strait. As reported in the last issue of Discovery, commissioning of the SouthWest gas pipeline started during May. The pipeline can carry 130 terajoules a day of natural gas in either direction,
“This unique project is Australia’s first commercial underground natural gas storage facility,” he said. “It will feed gas into the Victorian network during high demand periods and will inject gas back into the underground reservoir for storage during lower demand periods.” The WUGS project involved drilling three new injection and withdrawal wells, reperforating two existing wells and drilling two observation wells on the site.
Left: The Southwest gas pipeline terminates at Lara near Geelong where a network of high pressure lines emerge to feed into the main metropolitan gas network. Right: The Western Underground Gas Storage project is a vital link in the strategy to improve the security of Victoria’s gas supply.
9
equivalent to about 14 per cent of peak Victorian winter demand. Victoria’s average winter gas demand is equivalent to 890 Tj a day, but it peaks at up to 1,100 Tj a day. Extra compression facilities could lift capacity to 230 Tj a day and ultimately up to 400 Tj a day if required. This upgrade may be required if BHP develops its Minerva gas field, which lies 10 km offshore from Port Campbell. BHP is expected to make its final decision early next year. Another recently completed project - the upgrading of the ‘interconnect’ gas pipeline from NSW to Victoria - has also added to the certainty of Victorian gas supplies. Costing a $74 million, the pipeline capacity was lifted from 35 Tj a day to 92 Tj a day. Together, the two pipelines (Southwest and the Interconnect) now have the capacity to deliver around 25 per cent of Victoria’s daily winter gas demand in the event of a complete shutdown of supplies from the Esso plant at Longford. And there is still more to come! Duke Energy has started construction on the Eastern Gas Pipeline which will deliver Bass Strait gas from Longford into the Sydney market. Duke Energy hopes to have the pipeline completed by September next year. The 975 km gas pipeline, costing $450 million, is being constructed in five major sections involving three crews totalling about 600 workers.
COMPANY NEWS
SAFETY
Santos starts Victorian gas production
Victorian miners ready for anything Tracey lewis-Jones in stretcher being lowered by (L-R)- Troy Cox, Brad Evans, Liam McMahon and John Kerr from the winning Stawell team.
to the Cooper Basin gas which Santos sells to AGL Ltd which is supplied to Victoria through the Interconnect Pipeline which runs into Victoria at Albury from Wagga Wagga in NSW.
events the Stawell team won the overall prize for the second year in succession.
The Interconnect Pipeline has recently been upgraded from 35 to 92 terajoules a day to provide additional flexibility of gas supply to Victoria. The Mylor and Fenton Creek fields are 100 per cent owned by Santos and located near Heytesbury, 160 km south west of Melbourne, in permit PEP 108.
The teams were treated to a civic reception at the Stawell Town Hall after the event hosted by Stawell Mayor, Karen Douglas. A presentation dinner, hosted by explosives manufacturer, Orica, was also held in Stawell. At the dinner a special award was made to Noel Justice, one of the founders of the modern mine safety competitions, honoring his efforts to improve the standards of mine safety and rescue teams.
A gas processing facility at the field was built at a cost of $9 million to ensure all gas production meets strict specifications. Left: New gas processing facilities at Santos’ Mylor/Fenton Creek field at Heytesbury. Below: The gas is cleaned and dewatered before passing into the main gas pipeline network.
S
antos Ltd has become a new entrant to Victoria’s gas industry with output from its Mylor and Fenton Creek fields in south-west Victoria’s Otway Basin.
Gas from the fields is already flowing to Victorian markets as well as to consumers in the metropolitan areas of Melbourne through the recently commissioned South-West Gas Pipeline. Deregulation of the gas industry nationally means that Victorian gas producers can now offer gas to customers in NSW and the rela-
tively undeveloped Queensland and South Australian markets. Santos recently signed a gas sales contract from the Mylor and Fenton Creek fields with the Victorian Government owned Gascor for the supply of 10.7 petajoules of gas over four years with the contract expiring at the end of 2003. “While only involving a relatively small quantity of gas, this contract will provide additional flexibility for Victorian gas distributors in meeting peak winter demand.” Santos Executive General Manager, John McArdle said.
E
Blocks 1 and 2 were awarded to Basin Minerals NL, which already holds a large area of ground in the Murray Basin and has reported a number of potentially large deposits. Block 3 went to a joint venture between Imperial Mining (Australia) NL and Probo Mining Pty Ltd while block 5 was awarded to
MPI Gold Pty Ltd, operator of the Stawell gold mine and its partner Pittston Mineral Ventures of Australia Pty Ltd. Blocks 6 and 7 were awarded to GDM Resources Pty Ltd. Exploration licences over the areas have been granted or are in the process of being granted to the successful tenderers. The areas, which were opened for tender earlier this year, attracted a large number of bidders, reflecting the demand for prime exploration areas in the region. The blocks cover areas previously held by Rio 10
V
Kambalda and Yilgarn Star mines in WA, the Hellyer and Renison mines in Tasmania and a team from the Bendigo Gold Mines project in Victoria in addition to the Stawell team.
The 1999 competition, hosted by the Victorian Chamber of Mines and held at the Stawell gold mine, gave the local team a home ground advantage but tough competition from Western Australia, Tasmania and New South Wales meant the win was no pushover.
Search and Rescue - Stawell First Aid - Northparkes Rope Rescue - Kambalda Fire Fighting - Kambalda Theory - Kambalda Breathing Apparatus (practical) - Yilgarn Star Skills - Yilgarn Star Despite winning only one of the individual
Eight teams competed with teams from the Cadia and Northparkes mines in NSW, the
He added that the Gascor contract was in addition
Mineral sands tenders attract many bidders xploration companies have snapped up six of the seven highly prospective mineral sands exploration acreage areas in the Murray Basin region around Horsham in Victoria’s north west.
ictorian miners have proved they can meet any challenge with a team from the Stawell Gold Mine winning the Victorian Mines rescue competition for the second time running.
Tinto and are near to the massive WIM 150 deposit. Rio Tinto relinquished the ground when it was unable to find an economically viable method of processing the fine grained ilmenite, rutile and zircon content of the discovery. Now the exploration focus in the area has moved on to the discovery of smaller-sized, but coarse-grained mineral sands deposits, with a number of discoveries already made in ‘strand lines’ adjacent to ancient sand dunes along the beaches of the former inland sea.
Winners in each individual category were:
Director of the VCM, Chris Fraser, said he was pleased with the commitment of the mine safety team members and their sponsoring companies. The Victorian mine safety competition was now regarded as one of the country’s leading events, he added. This is the seventh year of fire and mine safety competitions in Victoria. The event began at Wonthaggi in 1993, sparked by an incident during a rescue exercise which had been held by the local DisPlan (Disaster Plan) organisation. That incident highlighted the need for a specialist mine rescue team. Teams now compete from all over Australia and are called on for their expertise in a wide range of disaster scenarios. In 1997, all mines rescue teams and personnel were placed on standby to assist with rescuing people trapped in the Thredbo landslide disaster in NSW.
Rio Tinto Ltd has now relinquished its remaining mineral sands acreage in Victoria covering the WIM 150 and WIM 100 mineral sands deposits. These areas will also be put out to tender, maintaining the steady and rapidly growing interest in mineral sands exploration in Victoria. The vacant Block 4 surrounding the WIM 150 discovery, which was not awarded in the first tender, will also be included in the new package of exploration acreage. Some other prospective areas of the Basin, further to the north in the Mallee, have been relinquished recently and exempted from further licence application.
WIM 150
WIM 100
It also planned to put these areas out to tender for exploration with all the new tenders to be initiated in early 2000.
11
COMPANY NEWS
SAFETY
Santos starts Victorian gas production
Victorian miners ready for anything Tracey lewis-Jones in stretcher being lowered by (L-R)- Troy Cox, Brad Evans, Liam McMahon and John Kerr from the winning Stawell team.
to the Cooper Basin gas which Santos sells to AGL Ltd which is supplied to Victoria through the Interconnect Pipeline which runs into Victoria at Albury from Wagga Wagga in NSW.
events the Stawell team won the overall prize for the second year in succession.
The Interconnect Pipeline has recently been upgraded from 35 to 92 terajoules a day to provide additional flexibility of gas supply to Victoria. The Mylor and Fenton Creek fields are 100 per cent owned by Santos and located near Heytesbury, 160 km south west of Melbourne, in permit PEP 108.
The teams were treated to a civic reception at the Stawell Town Hall after the event hosted by Stawell Mayor, Karen Douglas. A presentation dinner, hosted by explosives manufacturer, Orica, was also held in Stawell. At the dinner a special award was made to Noel Justice, one of the founders of the modern mine safety competitions, honoring his efforts to improve the standards of mine safety and rescue teams.
A gas processing facility at the field was built at a cost of $9 million to ensure all gas production meets strict specifications. Left: New gas processing facilities at Santos’ Mylor/Fenton Creek field at Heytesbury. Below: The gas is cleaned and dewatered before passing into the main gas pipeline network.
S
antos Ltd has become a new entrant to Victoria’s gas industry with output from its Mylor and Fenton Creek fields in south-west Victoria’s Otway Basin.
Gas from the fields is already flowing to Victorian markets as well as to consumers in the metropolitan areas of Melbourne through the recently commissioned South-West Gas Pipeline. Deregulation of the gas industry nationally means that Victorian gas producers can now offer gas to customers in NSW and the rela-
tively undeveloped Queensland and South Australian markets. Santos recently signed a gas sales contract from the Mylor and Fenton Creek fields with the Victorian Government owned Gascor for the supply of 10.7 petajoules of gas over four years with the contract expiring at the end of 2003. “While only involving a relatively small quantity of gas, this contract will provide additional flexibility for Victorian gas distributors in meeting peak winter demand.” Santos Executive General Manager, John McArdle said.
E
Blocks 1 and 2 were awarded to Basin Minerals NL, which already holds a large area of ground in the Murray Basin and has reported a number of potentially large deposits. Block 3 went to a joint venture between Imperial Mining (Australia) NL and Probo Mining Pty Ltd while block 5 was awarded to
MPI Gold Pty Ltd, operator of the Stawell gold mine and its partner Pittston Mineral Ventures of Australia Pty Ltd. Blocks 6 and 7 were awarded to GDM Resources Pty Ltd. Exploration licences over the areas have been granted or are in the process of being granted to the successful tenderers. The areas, which were opened for tender earlier this year, attracted a large number of bidders, reflecting the demand for prime exploration areas in the region. The blocks cover areas previously held by Rio 10
V
Kambalda and Yilgarn Star mines in WA, the Hellyer and Renison mines in Tasmania and a team from the Bendigo Gold Mines project in Victoria in addition to the Stawell team.
The 1999 competition, hosted by the Victorian Chamber of Mines and held at the Stawell gold mine, gave the local team a home ground advantage but tough competition from Western Australia, Tasmania and New South Wales meant the win was no pushover.
Search and Rescue - Stawell First Aid - Northparkes Rope Rescue - Kambalda Fire Fighting - Kambalda Theory - Kambalda Breathing Apparatus (practical) - Yilgarn Star Skills - Yilgarn Star Despite winning only one of the individual
Eight teams competed with teams from the Cadia and Northparkes mines in NSW, the
He added that the Gascor contract was in addition
Mineral sands tenders attract many bidders xploration companies have snapped up six of the seven highly prospective mineral sands exploration acreage areas in the Murray Basin region around Horsham in Victoria’s north west.
ictorian miners have proved they can meet any challenge with a team from the Stawell Gold Mine winning the Victorian Mines rescue competition for the second time running.
Tinto and are near to the massive WIM 150 deposit. Rio Tinto relinquished the ground when it was unable to find an economically viable method of processing the fine grained ilmenite, rutile and zircon content of the discovery. Now the exploration focus in the area has moved on to the discovery of smaller-sized, but coarse-grained mineral sands deposits, with a number of discoveries already made in ‘strand lines’ adjacent to ancient sand dunes along the beaches of the former inland sea.
Winners in each individual category were:
Director of the VCM, Chris Fraser, said he was pleased with the commitment of the mine safety team members and their sponsoring companies. The Victorian mine safety competition was now regarded as one of the country’s leading events, he added. This is the seventh year of fire and mine safety competitions in Victoria. The event began at Wonthaggi in 1993, sparked by an incident during a rescue exercise which had been held by the local DisPlan (Disaster Plan) organisation. That incident highlighted the need for a specialist mine rescue team. Teams now compete from all over Australia and are called on for their expertise in a wide range of disaster scenarios. In 1997, all mines rescue teams and personnel were placed on standby to assist with rescuing people trapped in the Thredbo landslide disaster in NSW.
Rio Tinto Ltd has now relinquished its remaining mineral sands acreage in Victoria covering the WIM 150 and WIM 100 mineral sands deposits. These areas will also be put out to tender, maintaining the steady and rapidly growing interest in mineral sands exploration in Victoria. The vacant Block 4 surrounding the WIM 150 discovery, which was not awarded in the first tender, will also be included in the new package of exploration acreage. Some other prospective areas of the Basin, further to the north in the Mallee, have been relinquished recently and exempted from further licence application.
WIM 150
WIM 100
It also planned to put these areas out to tender for exploration with all the new tenders to be initiated in early 2000.
11
REGULAR FEATURE
REGULAR FEATURE
Industry News BENDIGO DECLINE AHEAD OF SCHEDULE Better than expected progress at the $A35 million Swan decline project in Bendigo has taken the fledgling mine to a vertical depth of 300 metres as the tunnel heads towards its estimated target of 10 million ounces of new gold resources. The project, operated by Bendigo Mining NL, is excavating a 4.5 kilometre long decline ramp down to 700 metres vertical depth to gain access to ore reserves left behind by early miners a century ago. Bendigo, one of the richest gold reef systems found anywhere in the world, was mined intensively last century and even up to the 1950’s but rising water and limited pumping technology finally killed off most of the mines. Now technology and modern geology have combined to create a rebirth of the Bendigo field. More than a decade ago WMC Ltd gave the rejuvenation of the Bendigo field its best chance when the company acquired virtually every mining and exploration lease over the entire Bendigo field, allowing a methodical, field-wide approach to new exploration. But WMC eventually walked away, ultimately leaving the field in the hands of Bendigo Mining. Supported by the late Sir James Goldsmith, Bendigo Mining has raised sufficient capital to reach its primary target of the Deborah and Sheepshead lines of reef by mid-2001. From there it hopes drilling will identify large
tonnages of the high grade gold ore which originally made Bendigo famous. Bendigo Mining Managing Director, Doug Buerger, said progress was ahead of schedule and under budget at this stage but he expected to enter broken ground and encounter greater water flows once the tunnel reached the new Chum line of reef in November. Salty water from the project, extracted at the rate of 3.5 megalitres a day, is evaporated using mist sprays and storage ponds.
RISING GOLD PRICE LIFTS HOPES Perseverance Corporation Ltd has reactivated plans for its bacterial oxidation of its large sulphide gold ore reserves at its Fosterville gold project in central Victoria. The recent rise in the gold price to levels around $US300 an ounce has relieved pressure on all gold producers allowing companies to again seek finance for new projects. The Fosterville sulphides project was deferred while gold prices hit 20-year lows at levels below $US250 an ounce. Managing Director, John Kelly, said Perseverance had continued to produce gold from its oxide gold ore reserves during the gold price slump. The company is aiming for total gold output in the current year of 35,000 ounces. The company is currently seeking permits to develop two new oxide pits outside the present mining lease. In another move Perseverance is planning to drop an application for permits to build a tailings dam outside the existing mining lease in favor of refilling the original Fosterville open pit.
Industry News Refilling the pit would eliminate the need for additional ground and allow rapid rehabilitation of the site once the pit was refilled.
and BHP in which Sedimentary will acquire three exploration tenements near Lonarch in Western Victoria.
assays yet to be completed, the Ironbark system produced a large central reef system with a comprehensive spur system adjacent.
THERE’S MOVEMENT IN THE VALLEY
In exchange for a royalty on any future gold production, Sedimentary will take over operation of the permits which adjoin the company’s existing tenement area EL 3838.
Both targets could easily be accessed from the existing decline into the Poverty Reef mine. In the September quarter, the Nick o’ Time and Bonanza shoots in the Poverty Reef mine produced 4,585 ounces from just 3,600 tonnes of ore. That compares with the June quarter in which 3,837 ounces were generated. In the year to June 30 Reef Mining produced 19,187 ounces. Since resuming production three years ago, the mine has produced 42,000 ounces in total.
Golden Triangle Resources, the Victorian resources company working towards a commercial magnesium metal project, has joined Hazelwood power and HRL Technology Pty Ltd to further develop the light metal concept. GTR will exchange information with Hazelwood Power and the HRL group to explore potential synergies between Hazelwood’s flyash to magnesium project and GTR’s magnesium pilot plant project. Hazelwood power is exploring the possibility of producing magnesium metal from flyash produced as a result of burning brown coal for power generation at the LaTrobe Valley power station. Golden Triangle has moved away from a development of its Tasmanian magnesite deposit in favor of sourcing magnesium ore from its Woodsreef mine tailings dumps in NSW. Serpentinite tailings left over from the mining are high in magnesium content and are easily extracted and processed as a feedstock.
SEDIMENTARY STILL PRODUCING Sedimentary Holdings NL has produced 3,618 ounces of gold from its alluvial operations at the Wildebeest project near Avoca in the year to June 30. In the June quarter, the company produced 1,006 ounces from 70,653 bank cubic metres of mined material at an average grade of just 0.44 grams of gold per bcm at an average cash cost per ounce of $375. Cash operating costs in the year came to $A370 an ounce. But operations could expand in Victoria through a deal between Sedimentary A group of 21 senior Chinese coal mining representatives visited Australia recently for a three-week course focused on change in all key facets of mine management and policy development, including special training in safety and risk management conducted by leading OHS advisers, Zeal Consulting. Pictured are two of the Chinese representatives with Zeal’s Managing Director Carl Luttig (right) and Zeal’s Chairman Dick Carter, who is a past president of AIMM.
12
Managing Director, Rob Devereux, said the permits were prospective for very large sediment- hosted gold deposits.
WEMEN MINERAL SAND PROJECT DELAYED The multi-million dollar development of the Wemen mineral sands project in the Murray Basin near Robinvale in the Wimmera region of north western Victoria has been deferred until next year. Mine owner, RZM Corporation, announced recently that a plan by its joint venture partner, Western Metals NL, to sell its 30 per cent stake in the Wemen project had caused the delay. The sale of the stake, expected to be acquired by RZM, is likely to be completed by the end of the year. RZM, a subsidiary of the Japanese trading house, Nissho Iwai, said a development decision for the Wemen project was now expected in January. Wemen is expected to produce up to 500,000 tonnes of rutile, zircon and ilmenite a year, generating revenues of over $20 million annually.
REEF LOCATES NEW TARGETS Gold miner, Reef Mining NL, has found several potential gold ore bodies on its Tarnagulla mining lease near Bendigo through its latest exploration drilling program. The company, recently taken over by Sydneybased hardware seller and property developer, Hudson Group, drilled a series of holes on targets adjacent to the existing mine. The first holes, on the Watts Reef system, 4.5 km north of the mine, hit a rich reef system returning 0.3 metre intervals grading up to 14 grams per tonne and containing visible gold. At the Specimen Reef, 3.5 km north of the mine, similar width intersections were found grading up to 31 g/t, also with visible gold. To the south, at the Ironbark and Potato Patch targets, a large gold mineralised system was located. With
The Tarnagulla mine will now be sold by the Hudson group after taking control of the company. Former director, Dick Sandner, has been retained by the Hudson group to find a buyer for the project which is to be sold as a going concern. Hudson offered seven cents a share cash for Reef mining in a takeover worth $5.25 million.
RENEWABLE ENERGY SOLUTIONS Victoria will host one of Australia’s biggest ever renewable energy displays and conferences starting with a fair to be held at Hanging Rock, near Mt Macedon in November. The Renewable Energy and Sustainable Living Fair, organised by the Australian Going Solar group and the New Zealand Solar Energy Society, will be held on the weekend of November 27/28. It will be followed by the Solar 99 conference, the annual conference of the Australian and New Zealand Solar Energy Society, to be held in the historic Geelong Woolstores campus of Deakin University. More than 6,000 people are expected to attend the fair which will feature working displays of solar, wind and micro-hydro technologies for power generation along with straw bale, earth and timber building and sustainable agriculture. The entire sitewill be powered by gridinteractive solar generators.
SLOW PAYERS Another indicator of the downturn in the resources sector comes from research released recently by the credit rating group Dun and Bradstreet. The latest D&B study of its corporate credit records showed that, despite a national aver13
Kouroush Mehin, Acting Manager of MPV’s Petroleum Resources unit, has added another feather to his cap by completing his Doctorate in Philosophy in Petroleum Geology at RMIT University.
age of 99.3 per cent of all commercial trade being arranged on 30-day terms, the overall payment time during the 16 months to last April was 65.3 days — 35.3 days beyond terms. Mining and oil exploration companies were paying their debts even more slowly and average payments in this sector could soon hit 70 days, D&B said. In a warning to creditors, particularly start up companies looking to provide credit, D&B warned that the time taken by Australian companies to pay their debts was ‘stretching out to well over twice the terms agreed upon, and looked set to go even higher.’
CORRECTION In the August issue of Discovery, we reported that GPU GasNet Pty Ltd, formerly the Victorian Government owned Transmission Pipelines of Australia, announced during May that the south-west gas pipeline was fully pressurised and guaranteed continuing gas supplies to communities throughout western Victoria. GPU GasNet did not announce that the commissioning of the south-west gas pipeline guaranteed continuing gas supplies. A company spokesman has stated ...“Whilst the commissioning of the south west gas pipeline increases the diversity of gas sources to gas users, it does not guarantee supply of gas to gas users”. The error was a reporting error.
REGULAR FEATURE
REGULAR FEATURE
Industry News BENDIGO DECLINE AHEAD OF SCHEDULE Better than expected progress at the $A35 million Swan decline project in Bendigo has taken the fledgling mine to a vertical depth of 300 metres as the tunnel heads towards its estimated target of 10 million ounces of new gold resources. The project, operated by Bendigo Mining NL, is excavating a 4.5 kilometre long decline ramp down to 700 metres vertical depth to gain access to ore reserves left behind by early miners a century ago. Bendigo, one of the richest gold reef systems found anywhere in the world, was mined intensively last century and even up to the 1950’s but rising water and limited pumping technology finally killed off most of the mines. Now technology and modern geology have combined to create a rebirth of the Bendigo field. More than a decade ago WMC Ltd gave the rejuvenation of the Bendigo field its best chance when the company acquired virtually every mining and exploration lease over the entire Bendigo field, allowing a methodical, field-wide approach to new exploration. But WMC eventually walked away, ultimately leaving the field in the hands of Bendigo Mining. Supported by the late Sir James Goldsmith, Bendigo Mining has raised sufficient capital to reach its primary target of the Deborah and Sheepshead lines of reef by mid-2001. From there it hopes drilling will identify large
tonnages of the high grade gold ore which originally made Bendigo famous. Bendigo Mining Managing Director, Doug Buerger, said progress was ahead of schedule and under budget at this stage but he expected to enter broken ground and encounter greater water flows once the tunnel reached the new Chum line of reef in November. Salty water from the project, extracted at the rate of 3.5 megalitres a day, is evaporated using mist sprays and storage ponds.
RISING GOLD PRICE LIFTS HOPES Perseverance Corporation Ltd has reactivated plans for its bacterial oxidation of its large sulphide gold ore reserves at its Fosterville gold project in central Victoria. The recent rise in the gold price to levels around $US300 an ounce has relieved pressure on all gold producers allowing companies to again seek finance for new projects. The Fosterville sulphides project was deferred while gold prices hit 20-year lows at levels below $US250 an ounce. Managing Director, John Kelly, said Perseverance had continued to produce gold from its oxide gold ore reserves during the gold price slump. The company is aiming for total gold output in the current year of 35,000 ounces. The company is currently seeking permits to develop two new oxide pits outside the present mining lease. In another move Perseverance is planning to drop an application for permits to build a tailings dam outside the existing mining lease in favor of refilling the original Fosterville open pit.
Industry News Refilling the pit would eliminate the need for additional ground and allow rapid rehabilitation of the site once the pit was refilled.
and BHP in which Sedimentary will acquire three exploration tenements near Lonarch in Western Victoria.
assays yet to be completed, the Ironbark system produced a large central reef system with a comprehensive spur system adjacent.
THERE’S MOVEMENT IN THE VALLEY
In exchange for a royalty on any future gold production, Sedimentary will take over operation of the permits which adjoin the company’s existing tenement area EL 3838.
Both targets could easily be accessed from the existing decline into the Poverty Reef mine. In the September quarter, the Nick o’ Time and Bonanza shoots in the Poverty Reef mine produced 4,585 ounces from just 3,600 tonnes of ore. That compares with the June quarter in which 3,837 ounces were generated. In the year to June 30 Reef Mining produced 19,187 ounces. Since resuming production three years ago, the mine has produced 42,000 ounces in total.
Golden Triangle Resources, the Victorian resources company working towards a commercial magnesium metal project, has joined Hazelwood power and HRL Technology Pty Ltd to further develop the light metal concept. GTR will exchange information with Hazelwood Power and the HRL group to explore potential synergies between Hazelwood’s flyash to magnesium project and GTR’s magnesium pilot plant project. Hazelwood power is exploring the possibility of producing magnesium metal from flyash produced as a result of burning brown coal for power generation at the LaTrobe Valley power station. Golden Triangle has moved away from a development of its Tasmanian magnesite deposit in favor of sourcing magnesium ore from its Woodsreef mine tailings dumps in NSW. Serpentinite tailings left over from the mining are high in magnesium content and are easily extracted and processed as a feedstock.
SEDIMENTARY STILL PRODUCING Sedimentary Holdings NL has produced 3,618 ounces of gold from its alluvial operations at the Wildebeest project near Avoca in the year to June 30. In the June quarter, the company produced 1,006 ounces from 70,653 bank cubic metres of mined material at an average grade of just 0.44 grams of gold per bcm at an average cash cost per ounce of $375. Cash operating costs in the year came to $A370 an ounce. But operations could expand in Victoria through a deal between Sedimentary A group of 21 senior Chinese coal mining representatives visited Australia recently for a three-week course focused on change in all key facets of mine management and policy development, including special training in safety and risk management conducted by leading OHS advisers, Zeal Consulting. Pictured are two of the Chinese representatives with Zeal’s Managing Director Carl Luttig (right) and Zeal’s Chairman Dick Carter, who is a past president of AIMM.
12
Managing Director, Rob Devereux, said the permits were prospective for very large sediment- hosted gold deposits.
WEMEN MINERAL SAND PROJECT DELAYED The multi-million dollar development of the Wemen mineral sands project in the Murray Basin near Robinvale in the Wimmera region of north western Victoria has been deferred until next year. Mine owner, RZM Corporation, announced recently that a plan by its joint venture partner, Western Metals NL, to sell its 30 per cent stake in the Wemen project had caused the delay. The sale of the stake, expected to be acquired by RZM, is likely to be completed by the end of the year. RZM, a subsidiary of the Japanese trading house, Nissho Iwai, said a development decision for the Wemen project was now expected in January. Wemen is expected to produce up to 500,000 tonnes of rutile, zircon and ilmenite a year, generating revenues of over $20 million annually.
REEF LOCATES NEW TARGETS Gold miner, Reef Mining NL, has found several potential gold ore bodies on its Tarnagulla mining lease near Bendigo through its latest exploration drilling program. The company, recently taken over by Sydneybased hardware seller and property developer, Hudson Group, drilled a series of holes on targets adjacent to the existing mine. The first holes, on the Watts Reef system, 4.5 km north of the mine, hit a rich reef system returning 0.3 metre intervals grading up to 14 grams per tonne and containing visible gold. At the Specimen Reef, 3.5 km north of the mine, similar width intersections were found grading up to 31 g/t, also with visible gold. To the south, at the Ironbark and Potato Patch targets, a large gold mineralised system was located. With
The Tarnagulla mine will now be sold by the Hudson group after taking control of the company. Former director, Dick Sandner, has been retained by the Hudson group to find a buyer for the project which is to be sold as a going concern. Hudson offered seven cents a share cash for Reef mining in a takeover worth $5.25 million.
RENEWABLE ENERGY SOLUTIONS Victoria will host one of Australia’s biggest ever renewable energy displays and conferences starting with a fair to be held at Hanging Rock, near Mt Macedon in November. The Renewable Energy and Sustainable Living Fair, organised by the Australian Going Solar group and the New Zealand Solar Energy Society, will be held on the weekend of November 27/28. It will be followed by the Solar 99 conference, the annual conference of the Australian and New Zealand Solar Energy Society, to be held in the historic Geelong Woolstores campus of Deakin University. More than 6,000 people are expected to attend the fair which will feature working displays of solar, wind and micro-hydro technologies for power generation along with straw bale, earth and timber building and sustainable agriculture. The entire sitewill be powered by gridinteractive solar generators.
SLOW PAYERS Another indicator of the downturn in the resources sector comes from research released recently by the credit rating group Dun and Bradstreet. The latest D&B study of its corporate credit records showed that, despite a national aver13
Kouroush Mehin, Acting Manager of MPV’s Petroleum Resources unit, has added another feather to his cap by completing his Doctorate in Philosophy in Petroleum Geology at RMIT University.
age of 99.3 per cent of all commercial trade being arranged on 30-day terms, the overall payment time during the 16 months to last April was 65.3 days — 35.3 days beyond terms. Mining and oil exploration companies were paying their debts even more slowly and average payments in this sector could soon hit 70 days, D&B said. In a warning to creditors, particularly start up companies looking to provide credit, D&B warned that the time taken by Australian companies to pay their debts was ‘stretching out to well over twice the terms agreed upon, and looked set to go even higher.’
CORRECTION In the August issue of Discovery, we reported that GPU GasNet Pty Ltd, formerly the Victorian Government owned Transmission Pipelines of Australia, announced during May that the south-west gas pipeline was fully pressurised and guaranteed continuing gas supplies to communities throughout western Victoria. GPU GasNet did not announce that the commissioning of the south-west gas pipeline guaranteed continuing gas supplies. A company spokesman has stated ...“Whilst the commissioning of the south west gas pipeline increases the diversity of gas sources to gas users, it does not guarantee supply of gas to gas users”. The error was a reporting error.
VICTORIAN RESOURCES
VICTORIAN RESOURCES
Victoria’s mineral resources
Mildura
EXPLORATION STATUS O P
MAJOR MINES/DEVELOPMENTS
Area available for exploration application
GOLD
Areas becoming available for exploration
A B C D E F G H J K L M N
(Please see moratorium list for available dates)
Area currently under exploration (licence tenure or application)
U 23
46
Area unavailable for exploration
Swan Hill
47
(National Parks etc)
Area under exemption
NON-METALLIC MINERALS O Victorian Gypsum P RZM & Aberfoyle Q Rio Tinto R Kaolin Aust S Osterfield T ACI U RGC Mineral Sands
19
Echuca Shepparton
11
Wangaratta
T
31 10
Horsham Q
50 22
6 49
C
Ararat
34 35
12 38
B
5
36
9 30
7
44
4
D
Benambra
M
Mansfield
32
8
26 37 17 N
24 Maddingley
16
Wood's Point
13
20 1
MELBOURNE
Orbost
15
Werribee
Bairnsdale
Walhalla
Geelong
Lakes Entrance Yallourn
Alcoa
Portland
29
14
H
Hazelwood
Loy Yang
Warrnambool
43
14
23
General area of major exploration project
NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
COMPANY Alcaston Alliance Alliance Ballarat Cons Centaur Rio Tinto Crest - Goldminco Duketon Gold Golden Heritage Golden Triangle Golden Triangle Highlake Res Highlake Res Highlake Res - Brady Intrepid Metex Mt Wellington North - Rio Tinto Expl Osprey Gold Osprey Gold Perseverance M Platsearch - Hume RGC St Barbara Minico & Melanti Sedimentary Vic Gold - Mines & Res Zephyr Min Continent - Range Gawler Gold Goldminco Goldminco Goldminco Goldminco Alliance Fortuna Golden Heritage Hardrock Exploration Highlake Res Highlake Res Highlake Res Perseverance - New H Range River Range River Reef Mining Range River (Flowerdale) Basin Minerals (B-Swan Hill) Basin Minerals (Culgoa) Basin Minerals (Douglas) Reef Mining Reef Mining
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
27
45
28
Ballarat
E
Hamilton
F
21
3
2
R
BROWN COAL
L
39
42
18
S
41
K
A 25
G
40
48
Stawell
33
Bendigo
J
Stawell Gold Mines Sedimentary Holdings Reef Mining Goldminco Ballarat Goldfields Alliance Gold Bendigo Mining Tech-Sol Resources Pty Ltd Perseverance Exploration Australian Gold Devel. Perseverance Mining Duketon Goldfields Mount Conqueror Minerals
MAJOR EXPLORATION PROJECTS
15
VICTORIAN RESOURCES
VICTORIAN RESOURCES
Victoria’s mineral resources
Mildura
EXPLORATION STATUS O P
MAJOR MINES/DEVELOPMENTS
Area available for exploration application
GOLD
Areas becoming available for exploration
A B C D E F G H J K L M N
(Please see moratorium list for available dates)
Area currently under exploration (licence tenure or application)
U 23
46
Area unavailable for exploration
Swan Hill
47
(National Parks etc)
Area under exemption
NON-METALLIC MINERALS O Victorian Gypsum P RZM & Aberfoyle Q Rio Tinto R Kaolin Aust S Osterfield T ACI U RGC Mineral Sands
19
Echuca Shepparton
11
Wangaratta
T
31 10
Horsham Q
50 22
6 49
C
Ararat
34 35
12 38
B
5
36
9 30
7
44
4
D
Benambra
M
Mansfield
32
8
26 37 17 N
24 Maddingley
16
Wood's Point
13
20 1
MELBOURNE
Orbost
15
Werribee
Bairnsdale
Walhalla
Geelong
Lakes Entrance Yallourn
Alcoa
Portland
29
14
H
Hazelwood
Loy Yang
Warrnambool
43
14
23
General area of major exploration project
NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
COMPANY Alcaston Alliance Alliance Ballarat Cons Centaur Rio Tinto Crest - Goldminco Duketon Gold Golden Heritage Golden Triangle Golden Triangle Highlake Res Highlake Res Highlake Res - Brady Intrepid Metex Mt Wellington North - Rio Tinto Expl Osprey Gold Osprey Gold Perseverance M Platsearch - Hume RGC St Barbara Minico & Melanti Sedimentary Vic Gold - Mines & Res Zephyr Min Continent - Range Gawler Gold Goldminco Goldminco Goldminco Goldminco Alliance Fortuna Golden Heritage Hardrock Exploration Highlake Res Highlake Res Highlake Res Perseverance - New H Range River Range River Reef Mining Range River (Flowerdale) Basin Minerals (B-Swan Hill) Basin Minerals (Culgoa) Basin Minerals (Douglas) Reef Mining Reef Mining
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
27
45
28
Ballarat
E
Hamilton
F
21
3
2
R
BROWN COAL
L
39
42
18
S
41
K
A 25
G
40
48
Stawell
33
Bendigo
J
Stawell Gold Mines Sedimentary Holdings Reef Mining Goldminco Ballarat Goldfields Alliance Gold Bendigo Mining Tech-Sol Resources Pty Ltd Perseverance Exploration Australian Gold Devel. Perseverance Mining Duketon Goldfields Mount Conqueror Minerals
MAJOR EXPLORATION PROJECTS
15
LICENCE REVIEW
REGULAR FEATURE
Mineral Licences
Victorian pipelines and permits
July to September 1999
At October 1999
EXPLORATION LICENCES GRANTED TITLE NO.
STATUS
EVENT
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4382
CANAM
GRANT
DUNOLLY
REEF MINING NL
23/07/99
12/08/99
EL 4299
CURRENT
GRANT
ARARAT
ADAP PTY LTD
12/08/99
12/08/01
EL 4413
CURRENT
GRANT
DUNOLLY
REEF MINING NL
18/08/99
18/08/01
MILDURA
Production Licences Retention Leases Current Permits 0
EL 4423
CURRENT
GRANT
RUPANYUP
MPI GOLD PTY LTD
23/09/99
22/09/01
EL 4421
CURRENT
GRANT
BALMORAL
BASIN MINERALS NL
23/09/99
22/09/01
EL 4422
CURRENT
GRANT
NATIMUK
BASIN MINERALS NL
23/09/199
22/09/01
EL 4420
CURRENT
GRANT
KERANG
NORTHERN PROPERTY DEVELOPERS PTY LTD
23/09/99
22/09/01
EL 4419
CURRENT
GRANT
DUNOLLY
TALAGER PTY LTD
30/09/99
29/09/01
20
40
60
80
100
Acreage Release Recommended 1999
Km
Gas Pipeline Oil & Other Pipeline
SWAN HILL
Proposed Pipeline Under Construction Gas Field
MURRAY BASIN
EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED
Oil Field
COBRAM RUTHERGLEN
TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4117
EXPIRED
HAMILTON
ANTIMONY GOLD CORPORATION NL
15/08/99
15/08/99
EL 4174
EXPIRED
COLERAINE
ANTIMONY GOLD CORPORATION NL
11/09/99
11/09/99
EL 4023
EXPIRED
CRESWICK
JASON MINING NL
22/09/99
22/09/99
EL 4034
SURR
BACCHUS MARSH
PERSEVERANCE EXPLORATION PTY LTD
21/07/99
21/07/99
EL 3171
SURR
BACCHUS MARSH
DAVNET LIMITED
12/08/99
12/08/99
EL 3191
SURR
CRESWICK
PIONEER GOLD MINING CORPORATION PTY LTD
12/08/99
12/08/99
EL 3918
SURR
EDENHOPE
DELTA GOLD EXPLORATION PTY LTD
12/08/99
12/08/99
EL 3827
SURR
CANN
ASHTON MINING LIMITED
12/08/99
12/08/99
EL 3826
SURR
CANN
ASHTON MINING LIMITED
12/08/99
12/08/99
EL 3581
SURR
BACCHUS MARSH
DAVNET LIMITED
12/08/99
12/08/99
EL 3129
SURR
YEA
AUSMINDE HOLDINGS PTY LTD
26/08/99
26/08/99
EL 4324
SURR
GRAMPIANS
YARDARINO MINING NL
26/08/99
26/08/99
EL 4325
SURR
BALMORAL
YARDARINO MINING NL
26/08/99
26/08/99
EL 3604
SURR
BENAMBRA
TALLANGALOOK PTY LTD
07/09/99
07/09/99
EL 4196
SURR
ARARAT
P S & G F FORWOOD PTY LTD
17/09/99
17/09/99
EL 4261
SURR
ST ARNAUD
FORRESTANIA GOLD NL
23/09/99
23/09/99
EL 3944
SURR
RUPANYUP
FORRESTANIA GOLD NL
23/09/99
23/09/99
ECHUCA
CHILTERN
WODONGA
WANGARATTA
SHEPPARTON BENALLA HORSHAM
EUROA
BENDIGO
SEYMOUR
CARISBROOK KYNETON ARARAT
WALLAN BALLARAT
GIPPSLAND BASIN MELBOURNE
ORBOST BAIRNSD ALE LAKES ENTRANCE
HAMILTON VIC/O99(2) VIC/O99(1)
OTWAY BASIN
MAFFRA
LARA GEELONG MOE
COBDEN PORTLAND
LONGFORD
SALE 200m
COLAC
WARRNAMBOOL
200 m
EL 4230
SURR
BENDIGO
TITLE NO.
STATUS
EVENT
MAP
MIN 5268
CURRENT
GRANT
KERANG
MIN 5273
CURRENT
GRANT
TRARALGON
HARVEST EXPLORATION PTY LTD
30/09/99
30/09/99
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
MR NEIL S HAMPTON
21/07/99
21/07/09
MR KENNETH J UNTHANK
20/09/99
19/09/09
V99-2
V99-1
BASS BASIN
MINING LICENCES GRANTED
MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
MIN 4841
EXPIRED
STRATFORD
MILTON ROBERTSON
06/07/99
06/07/99
MIN 4805
EXPIRED
CASTLEMAINE
SADDLEBACK ENTERPRISES
01/08/99
01/08/99
MIN 4814
SURR
BEAUFORT
SEDIMENTARY HOLDINGS NL
28/07/99
28/07/99
MIN 4917
SURR
DUNOLLY
GARY BUCKLAND
28/07/99
28/07/99
MIN 4974
SURR
DUNOLLY
DENNIS C O’SULLIVAN
12/08/99
12/08/99
MIN 4676
SURR
WEDDERBURN
NICOLE D COOPER
26/08/99
26/08/99
MIN 4675
SURR
WEDDERBURN
SUSAN G WRIGHT
26/08/99
MIN 4674
SURR
WEDDERBURN
JOSEPHINE COOPER
26/08/99
26/08/99
MIN 4673
SURR
WEDDERBURN
ANN A SHAW
26/08/99
26/08/99
MIN 4884
SURR
DUNOLLY
MAURICE T NEALE
23/09/99
23/09/99
MIN 5179
SURR
DUNOLLY
GOLDEN SANDS DEVELOPMENT PTY LTD
30/09/99
30/09/99
ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED
16
26/08/99
the WORLD is yours
You’ll find a world of information on Victorian mining, geology and petroleum in the Department of Natural Resources’ Minerals and Petroleum Reference Centre. Although focussed to serve members of the mining industry, the MPRC is open to the public from 8.30am to 5pm, Monday to Friday. It is conveniently located next to the Minerals Business Centre.
special collections include: • • • • • •
Expired tenement reports on microfiche (and hard copy) 5000+ Geological Survey of Victoria Unpublished Reports Departmental publications (old Mines Department records and reports dating from 1851) Victorian published geological maps, both current and historical Underground mine plans on microfiche 1600+ B&W historical Victorian mining photographs
The MPRC is now located with the Minerals Business Centre on the 8th floor, Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne. Phone: (03) 9412 5145. Fax: (03) 9412 5157. E-mail:[email protected]
17
LICENCE REVIEW
REGULAR FEATURE
Mineral Licences
Victorian pipelines and permits
July to September 1999
At October 1999
EXPLORATION LICENCES GRANTED TITLE NO.
STATUS
EVENT
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4382
CANAM
GRANT
DUNOLLY
REEF MINING NL
23/07/99
12/08/99
EL 4299
CURRENT
GRANT
ARARAT
ADAP PTY LTD
12/08/99
12/08/01
EL 4413
CURRENT
GRANT
DUNOLLY
REEF MINING NL
18/08/99
18/08/01
MILDURA
Production Licences Retention Leases Current Permits 0
EL 4423
CURRENT
GRANT
RUPANYUP
MPI GOLD PTY LTD
23/09/99
22/09/01
EL 4421
CURRENT
GRANT
BALMORAL
BASIN MINERALS NL
23/09/99
22/09/01
EL 4422
CURRENT
GRANT
NATIMUK
BASIN MINERALS NL
23/09/199
22/09/01
EL 4420
CURRENT
GRANT
KERANG
NORTHERN PROPERTY DEVELOPERS PTY LTD
23/09/99
22/09/01
EL 4419
CURRENT
GRANT
DUNOLLY
TALAGER PTY LTD
30/09/99
29/09/01
20
40
60
80
100
Acreage Release Recommended 1999
Km
Gas Pipeline Oil & Other Pipeline
SWAN HILL
Proposed Pipeline Under Construction Gas Field
MURRAY BASIN
EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED
Oil Field
COBRAM RUTHERGLEN
TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4117
EXPIRED
HAMILTON
ANTIMONY GOLD CORPORATION NL
15/08/99
15/08/99
EL 4174
EXPIRED
COLERAINE
ANTIMONY GOLD CORPORATION NL
11/09/99
11/09/99
EL 4023
EXPIRED
CRESWICK
JASON MINING NL
22/09/99
22/09/99
EL 4034
SURR
BACCHUS MARSH
PERSEVERANCE EXPLORATION PTY LTD
21/07/99
21/07/99
EL 3171
SURR
BACCHUS MARSH
DAVNET LIMITED
12/08/99
12/08/99
EL 3191
SURR
CRESWICK
PIONEER GOLD MINING CORPORATION PTY LTD
12/08/99
12/08/99
EL 3918
SURR
EDENHOPE
DELTA GOLD EXPLORATION PTY LTD
12/08/99
12/08/99
EL 3827
SURR
CANN
ASHTON MINING LIMITED
12/08/99
12/08/99
EL 3826
SURR
CANN
ASHTON MINING LIMITED
12/08/99
12/08/99
EL 3581
SURR
BACCHUS MARSH
DAVNET LIMITED
12/08/99
12/08/99
EL 3129
SURR
YEA
AUSMINDE HOLDINGS PTY LTD
26/08/99
26/08/99
EL 4324
SURR
GRAMPIANS
YARDARINO MINING NL
26/08/99
26/08/99
EL 4325
SURR
BALMORAL
YARDARINO MINING NL
26/08/99
26/08/99
EL 3604
SURR
BENAMBRA
TALLANGALOOK PTY LTD
07/09/99
07/09/99
EL 4196
SURR
ARARAT
P S & G F FORWOOD PTY LTD
17/09/99
17/09/99
EL 4261
SURR
ST ARNAUD
FORRESTANIA GOLD NL
23/09/99
23/09/99
EL 3944
SURR
RUPANYUP
FORRESTANIA GOLD NL
23/09/99
23/09/99
ECHUCA
CHILTERN
WODONGA
WANGARATTA
SHEPPARTON BENALLA HORSHAM
EUROA
BENDIGO
SEYMOUR
CARISBROOK KYNETON ARARAT
WALLAN BALLARAT
GIPPSLAND BASIN MELBOURNE
ORBOST BAIRNSD ALE LAKES ENTRANCE
HAMILTON VIC/O99(2) VIC/O99(1)
OTWAY BASIN
MAFFRA
LARA GEELONG MOE
COBDEN PORTLAND
LONGFORD
SALE 200m
COLAC
WARRNAMBOOL
200 m
EL 4230
SURR
BENDIGO
TITLE NO.
STATUS
EVENT
MAP
MIN 5268
CURRENT
GRANT
KERANG
MIN 5273
CURRENT
GRANT
TRARALGON
HARVEST EXPLORATION PTY LTD
30/09/99
30/09/99
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
MR NEIL S HAMPTON
21/07/99
21/07/09
MR KENNETH J UNTHANK
20/09/99
19/09/09
V99-2
V99-1
BASS BASIN
MINING LICENCES GRANTED
MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
MIN 4841
EXPIRED
STRATFORD
MILTON ROBERTSON
06/07/99
06/07/99
MIN 4805
EXPIRED
CASTLEMAINE
SADDLEBACK ENTERPRISES
01/08/99
01/08/99
MIN 4814
SURR
BEAUFORT
SEDIMENTARY HOLDINGS NL
28/07/99
28/07/99
MIN 4917
SURR
DUNOLLY
GARY BUCKLAND
28/07/99
28/07/99
MIN 4974
SURR
DUNOLLY
DENNIS C O’SULLIVAN
12/08/99
12/08/99
MIN 4676
SURR
WEDDERBURN
NICOLE D COOPER
26/08/99
26/08/99
MIN 4675
SURR
WEDDERBURN
SUSAN G WRIGHT
26/08/99
MIN 4674
SURR
WEDDERBURN
JOSEPHINE COOPER
26/08/99
26/08/99
MIN 4673
SURR
WEDDERBURN
ANN A SHAW
26/08/99
26/08/99
MIN 4884
SURR
DUNOLLY
MAURICE T NEALE
23/09/99
23/09/99
MIN 5179
SURR
DUNOLLY
GOLDEN SANDS DEVELOPMENT PTY LTD
30/09/99
30/09/99
ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED
16
26/08/99
the WORLD is yours
You’ll find a world of information on Victorian mining, geology and petroleum in the Department of Natural Resources’ Minerals and Petroleum Reference Centre. Although focussed to serve members of the mining industry, the MPRC is open to the public from 8.30am to 5pm, Monday to Friday. It is conveniently located next to the Minerals Business Centre.
special collections include: • • • • • •
Expired tenement reports on microfiche (and hard copy) 5000+ Geological Survey of Victoria Unpublished Reports Departmental publications (old Mines Department records and reports dating from 1851) Victorian published geological maps, both current and historical Underground mine plans on microfiche 1600+ B&W historical Victorian mining photographs
The MPRC is now located with the Minerals Business Centre on the 8th floor, Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne. Phone: (03) 9412 5145. Fax: (03) 9412 5157. E-mail:[email protected]
17
REGULAR FEATURE
M I N I N G W E E K REPORT
M I N I N G W E E K REPORT
The opportunities for the mining industry to work in the smallest mainland state with the most sophisticated and intensely developed infrastructure were showcased in the annual Victorian mining week activities in the first week of November. A series of seminars, conferences, tours, displays and the annual mining week dinner in Melbourne filled an active week aimed at promoting Victoria and its attractions to the mining industry.
New data will boost exploration
V
W
Geochemistry Gravity
The largest of the airborne surveys covers all of the onshore sections of the Otway Basin and will provide a valuable data set for regional structural interpretation by both petroleum and mineral explorers. It also extends onto basement areas around the Grampians and the Brisbane Ranges north of Geelong.
The latest Australian Bureau of Statistics figures amply demonstrate the importance of the mineral sands industry to the state, which has
All that glitters isn’t gold But new survey data which has resulted in a number of major new mineral discoveries has given mining a new impetus which was explored in detail during the Mining Week events. After an industry breakfast in Ballarat to start the week a Mining Industry Safety Seminar was held in Ballarat.
EL Histories
Among the wealth of new data for the exploration industry are two new airborne geophysical surveys, new geological maps, exploration histories, geochemistry, gravity data and a review of the geophysical signature of base metal deposits in Victoria.
Exploration for and discoveries of rich deposits of rutile, zircon and ilmenite in the Murray Basin in Victoria’s north west corner, have underpinned Victorian exploration while gold prices weakened dramatically over the past two years.
Changing social and financial circumstances recent decades also combined to downgrade the importance of mining to the Victorian economy.
Geological Mapping
The release contains a host of new data with plenty to encourage petroleum and mineral explorers to remain active in Victoria.
hile gold has been the backbone of the Victorian mining industry and provided the financial base upon which the state prospered for the past century, new minerals have taken over from gold with interest now centred on the heavy mineral sands industry.
struggled to maintain a vibrant mining industry in the past fifty years.
Airbourne Geophysics
ictorian Mining Week, held early in November, was marked by the eleventh release of new geological data for the state’s southern and eastern areas.
safety regulation in Victoria and introduced many of the new safety inspectors recently employed and trained by Minerals and Petroleum Victoria to oversee the industry.
capital to fund new projects, or revisit old operations which may have new life under a regime of different technology and commodity prices.
A feature of Victorian Mining Week for a number of years has been the JB Were Victorian Resources Conference, showcasing the activities of companies exploring for or producing minerals in Victoria. The invitation-only conference focused on industry issues, company presentations, and the outlook for commodity markets.
The VCM also hosted a seminar of the Joint Ore Reserves Committee (see story on page 22) The JORC code, recently adopted worldwide, sets news standards for reporting the size and extent of mineral deposits to avoid accidental confusion or deliberate obfuscation of the real nature of mineral discoveries.
A string of Australian and international mining industry accidents and disasters has focussed attention on the mining industry’s poor safety record. Industrial accidents such as the Longford gas plant disaster in September 1998, have helped hasten changes to the way safety is now measured, regulated and enforced in Victoria.
The Victorian Chamber of Mines, a key sponsor of Victorian Mining Week, also sponsored two half-day seminars. The first looked at innovative financing of mineral projects in Victoria. Because mining has been at a low level in the past decade, finance to develop projects in Victoria has been particularly difficult to locate, despite the state’s rich mining history.
The seminar helped explain the changes in
The seminar explored new ways of attracting 18
Mining Week concluded with an industry environmental seminar held by Green Inc, a significant environmental management group, at Churchill in Victoria’s Latrobe Valley. In addition a number of mine tours were conducted to a variety of operating mines and exploration sites across the state to illustrate the real nature of the mining industry, with a view to dispelling many of the myths which surround and inconvenience the industry.
The quality of the data is superb and in the magnetics, extensions of the greenstone belts are clearly visible under the basalt plains. The basalt areas are clearly visible as are all the major eruption points. It is even possible to pick out four major volcanoes and associated lava flows under the water of the present-day Port Phillip Bay. The Palaeozoic windows are clearly seen in the radiometric image and, of particular interest to the heavy minerals explorers, is the presence of what appears to be a whole series of old dunes west of Portland, near Warrnambool and inland from Port Campbell. The second airborne survey covers the Mansfield, Matlock and Howitt areas of the Warburton 1:250,000 map sheet. The terrain is rugged as evidenced by the DTM model image and the survey was fully helicopter supported. The area covers the Walhalla-Woods Point dyke swarm, the Cambrian Mt Wellington volcanics, the Governor Fault Zone and parts of the Mansfield, Macalister and Avon Basins. The structure is clearly seen in the images and the radiometric images in particular are some of the best ever produced by the Geological Survey.
These two airborne surveys now bring the total area of Victoria covered by industry standard aeromagnetics and radiometrics coverage to 85% of the state, a much higher preparation than any other state in Australia. No moratorium applies to the Otway or Colac survey and licences can be taken in this survey area at any time. A moratorium however does 19
apply to the Matlock-Mansfield-Howitt area. It will be lifted on Monday, February 14, 2000, so explorers have about 14 weeks to review the data and decide what area they are interested in. There are no tender blocks nominated and each application from February 14 will be treated on the merits of the individual application.
REGULAR FEATURE
M I N I N G W E E K REPORT
M I N I N G W E E K REPORT
The opportunities for the mining industry to work in the smallest mainland state with the most sophisticated and intensely developed infrastructure were showcased in the annual Victorian mining week activities in the first week of November. A series of seminars, conferences, tours, displays and the annual mining week dinner in Melbourne filled an active week aimed at promoting Victoria and its attractions to the mining industry.
New data will boost exploration
V
W
Geochemistry Gravity
The largest of the airborne surveys covers all of the onshore sections of the Otway Basin and will provide a valuable data set for regional structural interpretation by both petroleum and mineral explorers. It also extends onto basement areas around the Grampians and the Brisbane Ranges north of Geelong.
The latest Australian Bureau of Statistics figures amply demonstrate the importance of the mineral sands industry to the state, which has
All that glitters isn’t gold But new survey data which has resulted in a number of major new mineral discoveries has given mining a new impetus which was explored in detail during the Mining Week events. After an industry breakfast in Ballarat to start the week a Mining Industry Safety Seminar was held in Ballarat.
EL Histories
Among the wealth of new data for the exploration industry are two new airborne geophysical surveys, new geological maps, exploration histories, geochemistry, gravity data and a review of the geophysical signature of base metal deposits in Victoria.
Exploration for and discoveries of rich deposits of rutile, zircon and ilmenite in the Murray Basin in Victoria’s north west corner, have underpinned Victorian exploration while gold prices weakened dramatically over the past two years.
Changing social and financial circumstances recent decades also combined to downgrade the importance of mining to the Victorian economy.
Geological Mapping
The release contains a host of new data with plenty to encourage petroleum and mineral explorers to remain active in Victoria.
hile gold has been the backbone of the Victorian mining industry and provided the financial base upon which the state prospered for the past century, new minerals have taken over from gold with interest now centred on the heavy mineral sands industry.
struggled to maintain a vibrant mining industry in the past fifty years.
Airbourne Geophysics
ictorian Mining Week, held early in November, was marked by the eleventh release of new geological data for the state’s southern and eastern areas.
safety regulation in Victoria and introduced many of the new safety inspectors recently employed and trained by Minerals and Petroleum Victoria to oversee the industry.
capital to fund new projects, or revisit old operations which may have new life under a regime of different technology and commodity prices.
A feature of Victorian Mining Week for a number of years has been the JB Were Victorian Resources Conference, showcasing the activities of companies exploring for or producing minerals in Victoria. The invitation-only conference focused on industry issues, company presentations, and the outlook for commodity markets.
The VCM also hosted a seminar of the Joint Ore Reserves Committee (see story on page 22) The JORC code, recently adopted worldwide, sets news standards for reporting the size and extent of mineral deposits to avoid accidental confusion or deliberate obfuscation of the real nature of mineral discoveries.
A string of Australian and international mining industry accidents and disasters has focussed attention on the mining industry’s poor safety record. Industrial accidents such as the Longford gas plant disaster in September 1998, have helped hasten changes to the way safety is now measured, regulated and enforced in Victoria.
The Victorian Chamber of Mines, a key sponsor of Victorian Mining Week, also sponsored two half-day seminars. The first looked at innovative financing of mineral projects in Victoria. Because mining has been at a low level in the past decade, finance to develop projects in Victoria has been particularly difficult to locate, despite the state’s rich mining history.
The seminar helped explain the changes in
The seminar explored new ways of attracting 18
Mining Week concluded with an industry environmental seminar held by Green Inc, a significant environmental management group, at Churchill in Victoria’s Latrobe Valley. In addition a number of mine tours were conducted to a variety of operating mines and exploration sites across the state to illustrate the real nature of the mining industry, with a view to dispelling many of the myths which surround and inconvenience the industry.
The quality of the data is superb and in the magnetics, extensions of the greenstone belts are clearly visible under the basalt plains. The basalt areas are clearly visible as are all the major eruption points. It is even possible to pick out four major volcanoes and associated lava flows under the water of the present-day Port Phillip Bay. The Palaeozoic windows are clearly seen in the radiometric image and, of particular interest to the heavy minerals explorers, is the presence of what appears to be a whole series of old dunes west of Portland, near Warrnambool and inland from Port Campbell. The second airborne survey covers the Mansfield, Matlock and Howitt areas of the Warburton 1:250,000 map sheet. The terrain is rugged as evidenced by the DTM model image and the survey was fully helicopter supported. The area covers the Walhalla-Woods Point dyke swarm, the Cambrian Mt Wellington volcanics, the Governor Fault Zone and parts of the Mansfield, Macalister and Avon Basins. The structure is clearly seen in the images and the radiometric images in particular are some of the best ever produced by the Geological Survey.
These two airborne surveys now bring the total area of Victoria covered by industry standard aeromagnetics and radiometrics coverage to 85% of the state, a much higher preparation than any other state in Australia. No moratorium applies to the Otway or Colac survey and licences can be taken in this survey area at any time. A moratorium however does 19
apply to the Matlock-Mansfield-Howitt area. It will be lifted on Monday, February 14, 2000, so explorers have about 14 weeks to review the data and decide what area they are interested in. There are no tender blocks nominated and each application from February 14 will be treated on the merits of the individual application.
REGULAR FEATURE
M I N I N G W E E K REPORT
M I N I N G W E E K REPORT
There is a mineral exploration history of the Warburton 1:250,000 map area published as Data Report No 64 to further assist in exploration of this area. It records the results of 106 EL’s that have been held within the area.
Boost for base metals
The Warburton area has a significant mining history, with gold mineralisation associated with the Woods Point dyke swarm accounting for 98,000 kg or 10% of Victoria’s primary gold production. Copper, platinum, palladium and silver mineralisation is also associated with the Woods Point dyke swarm.
T
he first volume of a three-part series on the “Geophysical signatures of base metal deposits in Victoria” has just been released by the Geological Survey of Victoria (GSV) in conjunction with the Australian Society of Exploration Geophysicists (ASEG).
Other mineralisation in Warburton includes fault-related gold-antimony mineralisation; granted intrusion-related molybdenum, tungsten, and tin mineralisation; epithermal and volcanogenic massive sulphide gold mineralisation in Cambrian volcanics; stratabound copper and uranium mineralisation in sediments of the Howitt province; and brown coal measures in the Maffra area of the Gippsland Basin.
The volume presents case studies on the use of geophysics in exploring for base metal deposits in Victoria. The GSV is now working on a second volume, “Geophysical Signatures of Industrial Mineral and Environmental Investigations in Victoria” and is in the early stages of planning a similar volume on gold.
There are four new 1:50,000 geological map sheets that go to make up the Omeo 1:100,000 map sheet area.
Data for the base metal case studies comes from expired exploration licence reports and industry and government sources.
The Omeo area lies in the eastern part of the Lachlan Fold Belt and includes the southern end of the Omeo structural zone as well as parts of the Tabberabera or Buchan structural zones.
In many cases, the recent regional airborne geophysical surveys and regional geological mapping post-date the main exploration effort. These new regional data put the known mineralisation into a better-understood regional context, creating the possibility of defining new and more accurate areas for exploration.
Omeo is host to a wide range of economic mineral deposits. All deposits occur within the Benambra gold province, except for the Yahoo Creek goldfield, which lies in the HarrietvilleDargo gold province.
South of the shear zone are major primary gold and minor tungsten deposits. Primary gold and silver deposits occur within the shear zone itself. Styles of mineralisation include precious metal vein, placer gold, volcanic associated massive sulphide, porphyry copper and wolframite vein deposits. The main exploration/mining focus has historically been on gold, but more recently base metals have been a highlight.
a) Radiometric ternary image (red = potassium, green = thorium, blue = uranium) of part of the Mansfield survey over the Hill 800 Prospect.
The study has shown that modern geophysical and interpretation methods may be able to better delineate the mineralisation at many of the prospects. The case studies of mineralisation in areas of outcrop or shallow cover will help explorers to determine appropriate geophysical techniques for exploration in Victoria.
The mapsheet is divided diagonally by the regional, northwest trending Ensay Shear zone. North of the shear zone are minor primary gold and molybdenite deposits together with base metal deposits that occur within the Limestone Creek Graben, Mount Elizabeth Caldera Complex and the Nunniong Pluton.
VICTORIA LOCALITY DIAGRAM SHOWING BASE METAL PROSPECTS AS DISCUSSED IN WILLOCKS ET AL. (1999)
The topics covered are as follows, with locations of the prospects shown in Figure 1: 13,230 kg of silver. The largest precious metal vein deposit in Omeo is Cassilis, which produced in excess of 2000 kg of gold.
Closed up gravity coverage at 1.5 km station spacing is provided for the Gippsland Basin and the Benalla-Albury area.
Total gold production from Omeo is 7,480 kg with 3,310 kg alluvial, 3,690 kg primary and 480 kg from unspecified sources.
This now brings detailed gravity coverage of Victoria to 80%.
The largest and most productive area is Swifts Creek (Cassilis), followed by Omeo and Haunted Stream. The map sheets are accompanied by a 340-page geological report (Geological Survey Report No 118) and a 1:100,000 geophysical interpretation map.
Victoria’s largest base metal mine, Wilga, is located within the Omeo area.
Also included in the eleventh data package are geochemical compilations for Warragul, Ballarat and Hamilton quarter million sheet areas.
Before its closure in 1996, it produced 45,800 tonnes of copper, 16,890 tonnes of zinc and
This now provides complete exploration geochemistry coverage of the state. 20
Exploration companies are increasingly using gravity data in routine area selection and this new data will be of major assistance in these areas.
• An overview of the geology, mineralisation styles and geophysical techniques applied to base-metal exploration in Victoria.
A
B
c) Dipole-dipole resistivity (Wm; top) and induced polarization (%; bottom) at the Mount Ararat Prospect.
• Volcanic-hosted massive sulphides at Benambra, Hill 800 and Wickliffe • Porphyry copper mineralisation at Dogwood, Sunday Creek and Thursdays Gossan • Greenstone hosted Cu-Au at Mount Ararat and Heathcote • Carbonate hosted Pb-Zn deposits in the Buchan Rift
F O R M O R E I N F O R M AT I O N C O N TA C T:
• Possible Tennant Creek style mineralisation at Nowa Nowa
Tom Dickson Manager Geological Survey of Victoria Tel: (03) 9412 5035
The volume aims to be a reference source for use by geologists and geophysicists involved in exploring for base metals in Victoria and in similar terrains worldwide.
b) Contour map of 50 m loop MPPO-1 transient electromagnetic survey with 1.5 ms delay, over the Wilga orebody (contour interval = 5 V/A, red = high, blue = low, selected drillholes are shown).
C
D
d) Pseudocolour image of total magnetic intensity with relief shading over the Bete Belong Suite, showing copper anomalies (small red squares).
References: Willocks A.J. and Moore, D.H., 1999. Geology and geophysical exploration of base metals in Victoria. In A.J. Willocks, S.J. Haydon, M.W. Asten & D.H. Moore, 1999a. Geophysical signatures of base metal deposits in Victoria. Geological Survey of Victoria Report 119 and Australian Society of Exploration Geophysicists Special Publication 11, pp.1-21.
21
REGULAR FEATURE
M I N I N G W E E K REPORT
M I N I N G W E E K REPORT
There is a mineral exploration history of the Warburton 1:250,000 map area published as Data Report No 64 to further assist in exploration of this area. It records the results of 106 EL’s that have been held within the area.
Boost for base metals
The Warburton area has a significant mining history, with gold mineralisation associated with the Woods Point dyke swarm accounting for 98,000 kg or 10% of Victoria’s primary gold production. Copper, platinum, palladium and silver mineralisation is also associated with the Woods Point dyke swarm.
T
he first volume of a three-part series on the “Geophysical signatures of base metal deposits in Victoria” has just been released by the Geological Survey of Victoria (GSV) in conjunction with the Australian Society of Exploration Geophysicists (ASEG).
Other mineralisation in Warburton includes fault-related gold-antimony mineralisation; granted intrusion-related molybdenum, tungsten, and tin mineralisation; epithermal and volcanogenic massive sulphide gold mineralisation in Cambrian volcanics; stratabound copper and uranium mineralisation in sediments of the Howitt province; and brown coal measures in the Maffra area of the Gippsland Basin.
The volume presents case studies on the use of geophysics in exploring for base metal deposits in Victoria. The GSV is now working on a second volume, “Geophysical Signatures of Industrial Mineral and Environmental Investigations in Victoria” and is in the early stages of planning a similar volume on gold.
There are four new 1:50,000 geological map sheets that go to make up the Omeo 1:100,000 map sheet area.
Data for the base metal case studies comes from expired exploration licence reports and industry and government sources.
The Omeo area lies in the eastern part of the Lachlan Fold Belt and includes the southern end of the Omeo structural zone as well as parts of the Tabberabera or Buchan structural zones.
In many cases, the recent regional airborne geophysical surveys and regional geological mapping post-date the main exploration effort. These new regional data put the known mineralisation into a better-understood regional context, creating the possibility of defining new and more accurate areas for exploration.
Omeo is host to a wide range of economic mineral deposits. All deposits occur within the Benambra gold province, except for the Yahoo Creek goldfield, which lies in the HarrietvilleDargo gold province.
South of the shear zone are major primary gold and minor tungsten deposits. Primary gold and silver deposits occur within the shear zone itself. Styles of mineralisation include precious metal vein, placer gold, volcanic associated massive sulphide, porphyry copper and wolframite vein deposits. The main exploration/mining focus has historically been on gold, but more recently base metals have been a highlight.
a) Radiometric ternary image (red = potassium, green = thorium, blue = uranium) of part of the Mansfield survey over the Hill 800 Prospect.
The study has shown that modern geophysical and interpretation methods may be able to better delineate the mineralisation at many of the prospects. The case studies of mineralisation in areas of outcrop or shallow cover will help explorers to determine appropriate geophysical techniques for exploration in Victoria.
The mapsheet is divided diagonally by the regional, northwest trending Ensay Shear zone. North of the shear zone are minor primary gold and molybdenite deposits together with base metal deposits that occur within the Limestone Creek Graben, Mount Elizabeth Caldera Complex and the Nunniong Pluton.
VICTORIA LOCALITY DIAGRAM SHOWING BASE METAL PROSPECTS AS DISCUSSED IN WILLOCKS ET AL. (1999)
The topics covered are as follows, with locations of the prospects shown in Figure 1: 13,230 kg of silver. The largest precious metal vein deposit in Omeo is Cassilis, which produced in excess of 2000 kg of gold.
Closed up gravity coverage at 1.5 km station spacing is provided for the Gippsland Basin and the Benalla-Albury area.
Total gold production from Omeo is 7,480 kg with 3,310 kg alluvial, 3,690 kg primary and 480 kg from unspecified sources.
This now brings detailed gravity coverage of Victoria to 80%.
The largest and most productive area is Swifts Creek (Cassilis), followed by Omeo and Haunted Stream. The map sheets are accompanied by a 340-page geological report (Geological Survey Report No 118) and a 1:100,000 geophysical interpretation map.
Victoria’s largest base metal mine, Wilga, is located within the Omeo area.
Also included in the eleventh data package are geochemical compilations for Warragul, Ballarat and Hamilton quarter million sheet areas.
Before its closure in 1996, it produced 45,800 tonnes of copper, 16,890 tonnes of zinc and
This now provides complete exploration geochemistry coverage of the state. 20
Exploration companies are increasingly using gravity data in routine area selection and this new data will be of major assistance in these areas.
• An overview of the geology, mineralisation styles and geophysical techniques applied to base-metal exploration in Victoria.
A
B
c) Dipole-dipole resistivity (Wm; top) and induced polarization (%; bottom) at the Mount Ararat Prospect.
• Volcanic-hosted massive sulphides at Benambra, Hill 800 and Wickliffe • Porphyry copper mineralisation at Dogwood, Sunday Creek and Thursdays Gossan • Greenstone hosted Cu-Au at Mount Ararat and Heathcote • Carbonate hosted Pb-Zn deposits in the Buchan Rift
F O R M O R E I N F O R M AT I O N C O N TA C T:
• Possible Tennant Creek style mineralisation at Nowa Nowa
Tom Dickson Manager Geological Survey of Victoria Tel: (03) 9412 5035
The volume aims to be a reference source for use by geologists and geophysicists involved in exploring for base metals in Victoria and in similar terrains worldwide.
b) Contour map of 50 m loop MPPO-1 transient electromagnetic survey with 1.5 ms delay, over the Wilga orebody (contour interval = 5 V/A, red = high, blue = low, selected drillholes are shown).
C
D
d) Pseudocolour image of total magnetic intensity with relief shading over the Bete Belong Suite, showing copper anomalies (small red squares).
References: Willocks A.J. and Moore, D.H., 1999. Geology and geophysical exploration of base metals in Victoria. In A.J. Willocks, S.J. Haydon, M.W. Asten & D.H. Moore, 1999a. Geophysical signatures of base metal deposits in Victoria. Geological Survey of Victoria Report 119 and Australian Society of Exploration Geophysicists Special Publication 11, pp.1-21.
21
REGULAR FEATURE
M I N I N G W E E K REPORT
M I N I N G W E E K REPORT
Pat Stephenson and Norm Miskelly are two of the driving forces behind the development of the Joint Ore Reserves Committee.
The benefits Mining is international, as is investment. Many companies domiciled in one country have foreign parents or associates. Similarly, it has become increasingly common for mining companies to diversify their exploration, development and production into foreign countries.
This report is based on a paper they presented to Joint Ore Reserves Committee Seminar in November during Victoria’s Mining Week activities.
Exploration joint ventures often have ownership spread amongst several countries.
The JOR Committee is a world leader in creating a global standard for reporting mineral exploration developments in a way which is consistent and meaningful across international borders and within widely differing political jurisdictions.
In the absence of an international reporting standard, it would not be unusual to be required to comply with, say, three or more different reporting regimes and sets of definitions. The problems of differing standards are compounded when debt and/or equity financing is sought for development. The source of such financing may originate from many countries. Differing standards, therefore, involve unnecessary effort and cost.
Now mining investors in Australia can read and understand reports of mineral exploration in South Africa, the USA, Canada and New Zealand, without fearing that local reporting standards may create serious misunderstandings about what a company has actually discovered.
Standardised reporting would assist in the free flow of investment funds, both direct and portfolio, since there would be a clearer understanding at all levels of the resources/reserves reporting chain. Providers of equity would be better able to refine their risk- management techniques
If the word ‘prospective’ is replaced with the word ‘possible’, the system was virtually identical to that used by some organisations until the mid-1980’s and, taking into account the modern division into mineral resources and (ore) reserves, is not very different to that in use today. Unfortunately, Hoover’s simple three-fold classification system was not universally adopted at the time. During World War II, concerns at a government level in the USA regarding the availability of national mineral resources led to the adoption, in 1943 by the US Bureau of Mines, of a three-fold classification system based on the terms ‘measured’, ‘indicated’ and ‘inferred’, each being defined comprehensively. This system was a landmark development and has influenced almost all subsequent classification systems. Shortly after its release, it was adopted for national resource reporting in Australia by government authorities and for prospect or mine scale reporting by some mining companies. In Australia, the lack of universally accepted reporting standards finally came to a head in the late 1960’s when very questionable reporting
Mineral reporting standards and the JORC Code
E
ver since the first Victorian goldrush, when miners banded together to tackle the rich quartz reefs of Ballarat and Bendigo, mining companies have had to raise venture capital to explore and develop mines. In the heady days of the 1800’s the most ready sources of capital were rich British investors who poured millions of pounds into mining ventures across Australia. Investment proposals, known today as a prospectus, were printed by the hundreds, often with the glowing descriptions of prospective mines and rich returns barely resembling the reality. Investors back in England had little hope of determining the truth about where much of their capital was spent. For a century the practice of presenting mining investors with enthusiastic word pictures of the exploration potential of a particular area has been the accepted way of raising capital for new projects. But now the world’s major
mining nations, led by Australia, have begun to establish criteria which will help eliminate confusion by standardising much of the mining industry’s unique jargon. Reporting of ‘ore reserves’ and exploration information by mining companies has grown haphazardly over the last 100 years, mostly on a country-by-country basis. There has been no serious attempt to reach a consensus or consistent and compatible reporting across international boundaries. In general, reporting by mining companies worldwide at the exploration, development and production stages has lagged well behind the advances in financial reporting. This applies particularly to relevant and useful information about the most significant asset of most mining companies - their orebodies which are the source of future income. However, in the 1990’s there has been a world-wide upsurge of interest in improving reporting standards of exploration results, 22
mineral resources and reserves. Some of the greatest financial scandals and frauds have been perpetrated on mining investors, with the greatest gold industry scam of all time committed just five years ago. Bre-X Minerals, a junior Canadian gold explorer, reported it had found in the Philippines one of the biggest gold deposits ever located anywhere in the world. The company’s shares rocketed skywards, creating a market capitalisation of billions of dollars before the exploration results were proved to be a carefully orchestrated fraud. Hopefully, such scandals are history, due in large part to the success of the Joint Ore Reserves Committee Code in Australasia. Dubious or unacceptable reporting of exploration results or ‘resource/reserve’ estimates and increasing international competition for investment funds, has driven the creation of the Code which aims to standardise mining industry reporting to eliminate fraud.
while better quality information about exploration results, mineral resources and reserves could reasonably be expected, on a worldwide basis, to siphon off funds which might otherwise be attracted into the non-mining sector. Hence the overall cost of capital to mining development may fall. The original JORC Code was released in 1989, although its origins go back well before this date and were strongly influenced by several key national and international developments. In 1909, Herbert Hoover, then working in the Kalgoorlie area and later to become the 31st President of the USA, wrote a classic text book, ‘Principles of Mining’, in which he recommended a three-fold sub-division of ore reserves into ‘proved’, ‘probable’ and ‘prospective’ categories. Each category was defined simply and succinctly on the basis of risk associated with assumptions made regarding continuity of metal values beyond sampled exposures.
practices occurred during the ‘nickel boom’. During 1971, both the Melbourne Stock Exchange and a Federal Government Senate Select Committee approached mining industry organisations expressing concern about the apparent lack of reporting standards. This led, during that year, to The AusIMM and the Australian Mining Industry Council setting up the JORC. In 1980, the US Geological Survey released a document (Circular 831) entitled ‘Principles of a Resource/Reserve Classification for Minerals’, in which, for the first time, a clear division between resources, representing insitu material, and reserves, representing economically extractable material, was presented. This key development was to form an important basis for the eventual JORC Code. In 1982, Conzinc Rio Tinto Australia Ltd, now Rio Tinto Ltd, made a ground-breaking contribution when it released a paper entitled
23
‘A Guide to the Understanding of Ore Reserve Estimation’. Two key points helped to advance evolution of the JORC Code: • the definition of a reserve as a resource (which may be known or unknown) on which ‘investigative work has established a basis for decisions as to technological and economic feasibility’. • emphasis on the principle that ore reserve estimation involves much more than just a geologist’s calculations. The JORC Code also became binding on companies reporting to the Australian Stock Exchange when it was incorporated in full into ASX Listing Rules in July 1989.
International definitions Concurrent with these later developments in Australia, since 1993 there have been major advances on the international front to establish a set of international definitions for mineral resources and mineral (ore) reserves and their sub-categories. In October 1997 in Denver, Colorado, the five participating nations (Australia, South Africa, UK, Canada and USA) reached provisional agreement (the ‘Denver Accord’) on the wording of definitions for the two major categories, mineral resources and mineral (ore) reserves, and for their respective sub-categories, measured, indicated and inferred mineral resources, and proved and probable mineral reserves. Also, since 1992, the United Nations Economic Commission for Europe has been developing an international framework classification for mineral resources and reserves (solid fuels and mineral commodities). The purpose of the UN framework classification has been to provide a basis for comparison of many different national mineral resource and reserve classifications world wide, particularly for those countries in transition to market economies. Through a series of workshops and taskforce meetings, a final version of the UNFC was agreed and prepared (UN-ECE Energy/WP.1/R.70, Geneva, 1997), translated into six languages and distributed worldwide for comment and trial application. Of the 43 countries and international organisations that replied, 27 have applied or are in the process of applying the UNFC, some countries adopting it for national mineral resource and reserve inventories. The most recent major development was at a joint meeting in Geneva, Switzerland on 4 October, 1998 between the CMMI International Definitions Group and the United Nations Economic
REGULAR FEATURE
M I N I N G W E E K REPORT
M I N I N G W E E K REPORT
Pat Stephenson and Norm Miskelly are two of the driving forces behind the development of the Joint Ore Reserves Committee.
The benefits Mining is international, as is investment. Many companies domiciled in one country have foreign parents or associates. Similarly, it has become increasingly common for mining companies to diversify their exploration, development and production into foreign countries.
This report is based on a paper they presented to Joint Ore Reserves Committee Seminar in November during Victoria’s Mining Week activities.
Exploration joint ventures often have ownership spread amongst several countries.
The JOR Committee is a world leader in creating a global standard for reporting mineral exploration developments in a way which is consistent and meaningful across international borders and within widely differing political jurisdictions.
In the absence of an international reporting standard, it would not be unusual to be required to comply with, say, three or more different reporting regimes and sets of definitions. The problems of differing standards are compounded when debt and/or equity financing is sought for development. The source of such financing may originate from many countries. Differing standards, therefore, involve unnecessary effort and cost.
Now mining investors in Australia can read and understand reports of mineral exploration in South Africa, the USA, Canada and New Zealand, without fearing that local reporting standards may create serious misunderstandings about what a company has actually discovered.
Standardised reporting would assist in the free flow of investment funds, both direct and portfolio, since there would be a clearer understanding at all levels of the resources/reserves reporting chain. Providers of equity would be better able to refine their risk- management techniques
If the word ‘prospective’ is replaced with the word ‘possible’, the system was virtually identical to that used by some organisations until the mid-1980’s and, taking into account the modern division into mineral resources and (ore) reserves, is not very different to that in use today. Unfortunately, Hoover’s simple three-fold classification system was not universally adopted at the time. During World War II, concerns at a government level in the USA regarding the availability of national mineral resources led to the adoption, in 1943 by the US Bureau of Mines, of a three-fold classification system based on the terms ‘measured’, ‘indicated’ and ‘inferred’, each being defined comprehensively. This system was a landmark development and has influenced almost all subsequent classification systems. Shortly after its release, it was adopted for national resource reporting in Australia by government authorities and for prospect or mine scale reporting by some mining companies. In Australia, the lack of universally accepted reporting standards finally came to a head in the late 1960’s when very questionable reporting
Mineral reporting standards and the JORC Code
E
ver since the first Victorian goldrush, when miners banded together to tackle the rich quartz reefs of Ballarat and Bendigo, mining companies have had to raise venture capital to explore and develop mines. In the heady days of the 1800’s the most ready sources of capital were rich British investors who poured millions of pounds into mining ventures across Australia. Investment proposals, known today as a prospectus, were printed by the hundreds, often with the glowing descriptions of prospective mines and rich returns barely resembling the reality. Investors back in England had little hope of determining the truth about where much of their capital was spent. For a century the practice of presenting mining investors with enthusiastic word pictures of the exploration potential of a particular area has been the accepted way of raising capital for new projects. But now the world’s major
mining nations, led by Australia, have begun to establish criteria which will help eliminate confusion by standardising much of the mining industry’s unique jargon. Reporting of ‘ore reserves’ and exploration information by mining companies has grown haphazardly over the last 100 years, mostly on a country-by-country basis. There has been no serious attempt to reach a consensus or consistent and compatible reporting across international boundaries. In general, reporting by mining companies worldwide at the exploration, development and production stages has lagged well behind the advances in financial reporting. This applies particularly to relevant and useful information about the most significant asset of most mining companies - their orebodies which are the source of future income. However, in the 1990’s there has been a world-wide upsurge of interest in improving reporting standards of exploration results, 22
mineral resources and reserves. Some of the greatest financial scandals and frauds have been perpetrated on mining investors, with the greatest gold industry scam of all time committed just five years ago. Bre-X Minerals, a junior Canadian gold explorer, reported it had found in the Philippines one of the biggest gold deposits ever located anywhere in the world. The company’s shares rocketed skywards, creating a market capitalisation of billions of dollars before the exploration results were proved to be a carefully orchestrated fraud. Hopefully, such scandals are history, due in large part to the success of the Joint Ore Reserves Committee Code in Australasia. Dubious or unacceptable reporting of exploration results or ‘resource/reserve’ estimates and increasing international competition for investment funds, has driven the creation of the Code which aims to standardise mining industry reporting to eliminate fraud.
while better quality information about exploration results, mineral resources and reserves could reasonably be expected, on a worldwide basis, to siphon off funds which might otherwise be attracted into the non-mining sector. Hence the overall cost of capital to mining development may fall. The original JORC Code was released in 1989, although its origins go back well before this date and were strongly influenced by several key national and international developments. In 1909, Herbert Hoover, then working in the Kalgoorlie area and later to become the 31st President of the USA, wrote a classic text book, ‘Principles of Mining’, in which he recommended a three-fold sub-division of ore reserves into ‘proved’, ‘probable’ and ‘prospective’ categories. Each category was defined simply and succinctly on the basis of risk associated with assumptions made regarding continuity of metal values beyond sampled exposures.
practices occurred during the ‘nickel boom’. During 1971, both the Melbourne Stock Exchange and a Federal Government Senate Select Committee approached mining industry organisations expressing concern about the apparent lack of reporting standards. This led, during that year, to The AusIMM and the Australian Mining Industry Council setting up the JORC. In 1980, the US Geological Survey released a document (Circular 831) entitled ‘Principles of a Resource/Reserve Classification for Minerals’, in which, for the first time, a clear division between resources, representing insitu material, and reserves, representing economically extractable material, was presented. This key development was to form an important basis for the eventual JORC Code. In 1982, Conzinc Rio Tinto Australia Ltd, now Rio Tinto Ltd, made a ground-breaking contribution when it released a paper entitled
23
‘A Guide to the Understanding of Ore Reserve Estimation’. Two key points helped to advance evolution of the JORC Code: • the definition of a reserve as a resource (which may be known or unknown) on which ‘investigative work has established a basis for decisions as to technological and economic feasibility’. • emphasis on the principle that ore reserve estimation involves much more than just a geologist’s calculations. The JORC Code also became binding on companies reporting to the Australian Stock Exchange when it was incorporated in full into ASX Listing Rules in July 1989.
International definitions Concurrent with these later developments in Australia, since 1993 there have been major advances on the international front to establish a set of international definitions for mineral resources and mineral (ore) reserves and their sub-categories. In October 1997 in Denver, Colorado, the five participating nations (Australia, South Africa, UK, Canada and USA) reached provisional agreement (the ‘Denver Accord’) on the wording of definitions for the two major categories, mineral resources and mineral (ore) reserves, and for their respective sub-categories, measured, indicated and inferred mineral resources, and proved and probable mineral reserves. Also, since 1992, the United Nations Economic Commission for Europe has been developing an international framework classification for mineral resources and reserves (solid fuels and mineral commodities). The purpose of the UN framework classification has been to provide a basis for comparison of many different national mineral resource and reserve classifications world wide, particularly for those countries in transition to market economies. Through a series of workshops and taskforce meetings, a final version of the UNFC was agreed and prepared (UN-ECE Energy/WP.1/R.70, Geneva, 1997), translated into six languages and distributed worldwide for comment and trial application. Of the 43 countries and international organisations that replied, 27 have applied or are in the process of applying the UNFC, some countries adopting it for national mineral resource and reserve inventories. The most recent major development was at a joint meeting in Geneva, Switzerland on 4 October, 1998 between the CMMI International Definitions Group and the United Nations Economic
GR EE OG LU OL GA IR C AF LE A NT EU WR SE
M I N I N G W E E K REPORT The JORC code will help provide investors and their advisers with better and more accurate information.
bedevilled by the varying statutory and reporting regimes which may apply at a State or Territory level. No other country (except New Zealand) in which a classification/reporting standard has been developed has so far managed to establish this degree of intimate linkage with the main national regulatory authority.
Commission for Europe Taskforce. Agreement was reached to incorporate the CMMI standard reporting definitions into the United Nations framework for those categories that are common to both systems. Subject to fine tuning of the wording of these definitions, it is now a realistic possibility that during 1999 the UNFC participating countries and those from CMMI will be using virtually identical wording for the common reporting definitions. The purpose of the JORC Code is to provide a minimum standard for reporting of exploration results, mineral resources and ore reserves in Australasia, and to ensure that public reports on these matters contain all the information which investors and their advisers would reasonably require for the purpose of making a balanced judgement regarding the results and estimates being reported. The principles of the JORC Code requires that a public report contains sufficient information, the presentation of which is clear and unambiguous, so that a reader is able to understand the report and is not misled.
Regulatory backing The decision by the ASX to append the JORC Code in its entirety to its Listing Rules was probably the single most important development in making the Code an effective tool for setting and maintaining public reporting standards in Australia. Its adoption by the ASX (and through the ASX by the ASIC) has given it regulatory backing on a national basis. Application of the Code is not, therefore,
The 1999 edition of the JORC Code marks its second substantial revision. However, none of the 1999 revisions materially alter the fundamentals of the Code, being the mineral resource/ore reserve classification framework and terminology, and the chain of responsibility for public reporting of resources and reserves, involving companies’ boards of directors and competent persons. The JORC Code will continue to evolve to maintain its relevance to the exploration and mining industry in Australasia and to providers of finance to this industry. JORC will continue to play a leading role in international deliberations whilst ensuring that Australasia’s national reporting standards remain relevant, effective and respected.
A
Lakes Oil NL’s persistent search for commercial Victorian oil and gas resources has given the company a holding over almost the entire onshore portion of the Gippsland Basin, opening up a number of opportunities for new wildcat wells. In its latest drilling efforts, Lakes Oil drilled two shallow onshore wells in quick succession. The first, well, Baudin 1, in permit PEP-135, 3.5 km northeast of Metung, reached a total depth of 426 metres, on October 1 this year. While the well encountered some of its targets, no oil was present. A total of 32 metres of good quality Latrobe Formation Sands were found but with no hydrocarbon shows. The top of the Latrobe Formation was encountered at 370 metres and basement was reached at 402 metres with the well subsequently plugged and abandoned. The company had better success with Investigator 1 well, located in PEP 136.
N
The geological report and accompanying maps are the result of geological mapping carried out in 1997 by a GSV project team of six geoscientists, backed up by technical assistance and cartographic support. The Omeo map area is situated in the northeastern highlands of Victoria about 400 km by road from Melbourne. The maps and accompanying reports document the geological history, structure, stratigraphy and economic potential of the Palaeozoic, Mesozoic and Cainozoic rocks of the region. The mapping was aided by airborne magnetic and radiometric surveys flown at a height of 80 metres with a 200 metre line spacing.
The region lies in the eastern part of the Lachlan Fold Belt and includes the southern end of the Omeo structural zone as well as parts of the Tabberabbera and Buchan structural zones. The oldest rocks are Ordovician and are part of a sheet of turbidites and black shales that cover much of the eastern Lachlan Fold Belt.
Lakes Oil reported that the key Latrobe Formation was encountered at the anticipated depth of 582m. But it said, “The Top Latrobe clastics were water saturated, as predicted.”
ing gas trunkline into Longford, and Victoria’s need for alternative supplies of natural gas, could help improve the economics of any future development should gas be discovered.
“The Lower Latrobe target encountered several gas shows associated with coal beds in the sequence, but none of these proved commercially significant.”
Lakes recently completed a comprehensive study of all previous exploration wells and other data in a bid to develop new exploration plays for the onshore part of the basin, which apart from some primitive attempts at oil production, has never yielded a commercial discovery.
The older Adaminaby Group forms the bedrock over most of the area, while the overlying Bendoc Group, together with the Lower Silurian Yalmy Group, is only preserved as small fault bounded slices.
But the rapid deregulation of the Australian gas industry has dramatically changed the economic prospects for new discoveries in the Gippsland Basin, which offshore hosts the massive oil and gas fields of Bass Strait owned by BHP and Esso Australia.
During the Benambran Deformation at about 430 million years ago, the Ordovician and Lower Silurian rocks were strongly deformed, with deformation accompanied by intrusion of S-type granites and production of the high-T, low-P schists, gneisses and migmatites of the Omeo Metamorphic Complex.
“The Lower Latrobe Formation section contained excellent reservoir beds, but the hoped for, intra-formational seals, which are effective to the south in the offshore portion of the basin, were not present or poorly developed at the Investigator location,” the company said in its report to the Australian Stock Exchange. Lakes Oil, which had its origins at Lakes Entrance in 1946. is now planning to drill a new well in the onshore Gippsland Basin between the towns of Seaspray and Longford in permit PEP137. Several wells were drilled in the area in the 1960’s, one of which flowed gas to surface from the Golden Beach Formation target, which underlies the Latrobe Formation. The prospect has an estimated potential of up to 60 Billion cubic feet of recoverable gas. The close proximity of the target to the exist24
The Bindi 1:50,000 geology map, one of the four geology maps covering the Omeo map area, is shown on the following pages, while the 1:100 000 geophysical interpretation map is shown on this page.
ew maps and associated geological information for the Omeo 1:100,000 map area have been released by the Geological Survey of Victoria.
The report is accompanied by a digital database of mines and mineral occurrences. A GIS package for the area is also available.
A ‘show’ for Lakes Oil ustralia’s oldest independent oil and gas explorer, Lakes Oil NL, is keeping alive the pioneering spirit by seeking new oil and gas opportunities in the onshore portion of the Gippsland Basin.
New light on Highlands geology
Small onshore gas accumulations, now being sought by Lakes Oil are likely to be commercially viable development options in the near future. The deregulation of the Victorian gas industry, allowing new players to sell gas to Victorian distributors and the development of new gas pipelines, particularly the Eastern Gas pipeline from Longford to Sydney being built by Duke Energy, now provides ready markets for new gas discoveries.
The Late Silurian Enano Group which hosts the Wilga and Currawong copper-lead-zinc deposits are preserved in the Limestone Creek Graben, while the Mount Tambo Group is preserved in the Scrubby Creek Syncline. Probable Late Silurian rocks occur also in a newly discovered fault slice along the Barmouth Fault. The Silurian rocks were folded and faulted during the Bindian Deformation at the end of
the Silurian, followed by igneous activity in the broad meridional Cravensville Igneous Province which appears to have been a zone of extension. Numerous large and small I-type intrusions were emplaced and the Mount Elizabeth Caldera Complex was formed at Mount Elizabeth. At Bindi, deposition of ignimbrites of the Snowy River Volcanics was followed by pronounced subsidence during which the marine Buchan Group was deposited. Both the Snowy River Volcanics and the Buchan groups were folded and cleaved during the Middle Devonian Tabberabberan Deformation. Several granites, together with trachyte plugs and dykes, of the Triassic Mount Leinster Igneous Province are found in the map area. The late Mesozoic and Tertiary history is mainly one of block faulting, deep incision and stream diversion, but in the Eocene there was eruption of extensive older volcanics basalts, 25
now preserved only on the Nunniong Plateau. Extensive colluvial fans are developed along the large Livingstone Creek fault scarp, and extensive alluvial flats and terraces occur along the Tambo River, with more narrow flats along many of the smaller streams. The geophysical character of the various rock types is given with the lithological descriptions and a geophysical interpretation of the aeromagnetic and radiometric data is provided. The economic geology of the region has been compiled and is discussed in a number of sections covering mineral exploration, mining history, mineralisation style and economic potential and prospectivity. F O R M O R E I N F O R M AT I O N C O N TA C T:
Peter O’Shea, Manager Geological Mapping – GSV Telephone (03) 9412 5093
GR EE OG LU OL GA IR C AF LE A NT EU WR SE
M I N I N G W E E K REPORT The JORC code will help provide investors and their advisers with better and more accurate information.
bedevilled by the varying statutory and reporting regimes which may apply at a State or Territory level. No other country (except New Zealand) in which a classification/reporting standard has been developed has so far managed to establish this degree of intimate linkage with the main national regulatory authority.
Commission for Europe Taskforce. Agreement was reached to incorporate the CMMI standard reporting definitions into the United Nations framework for those categories that are common to both systems. Subject to fine tuning of the wording of these definitions, it is now a realistic possibility that during 1999 the UNFC participating countries and those from CMMI will be using virtually identical wording for the common reporting definitions. The purpose of the JORC Code is to provide a minimum standard for reporting of exploration results, mineral resources and ore reserves in Australasia, and to ensure that public reports on these matters contain all the information which investors and their advisers would reasonably require for the purpose of making a balanced judgement regarding the results and estimates being reported. The principles of the JORC Code requires that a public report contains sufficient information, the presentation of which is clear and unambiguous, so that a reader is able to understand the report and is not misled.
Regulatory backing The decision by the ASX to append the JORC Code in its entirety to its Listing Rules was probably the single most important development in making the Code an effective tool for setting and maintaining public reporting standards in Australia. Its adoption by the ASX (and through the ASX by the ASIC) has given it regulatory backing on a national basis. Application of the Code is not, therefore,
The 1999 edition of the JORC Code marks its second substantial revision. However, none of the 1999 revisions materially alter the fundamentals of the Code, being the mineral resource/ore reserve classification framework and terminology, and the chain of responsibility for public reporting of resources and reserves, involving companies’ boards of directors and competent persons. The JORC Code will continue to evolve to maintain its relevance to the exploration and mining industry in Australasia and to providers of finance to this industry. JORC will continue to play a leading role in international deliberations whilst ensuring that Australasia’s national reporting standards remain relevant, effective and respected.
A
Lakes Oil NL’s persistent search for commercial Victorian oil and gas resources has given the company a holding over almost the entire onshore portion of the Gippsland Basin, opening up a number of opportunities for new wildcat wells. In its latest drilling efforts, Lakes Oil drilled two shallow onshore wells in quick succession. The first, well, Baudin 1, in permit PEP-135, 3.5 km northeast of Metung, reached a total depth of 426 metres, on October 1 this year. While the well encountered some of its targets, no oil was present. A total of 32 metres of good quality Latrobe Formation Sands were found but with no hydrocarbon shows. The top of the Latrobe Formation was encountered at 370 metres and basement was reached at 402 metres with the well subsequently plugged and abandoned. The company had better success with Investigator 1 well, located in PEP 136.
N
The geological report and accompanying maps are the result of geological mapping carried out in 1997 by a GSV project team of six geoscientists, backed up by technical assistance and cartographic support. The Omeo map area is situated in the northeastern highlands of Victoria about 400 km by road from Melbourne. The maps and accompanying reports document the geological history, structure, stratigraphy and economic potential of the Palaeozoic, Mesozoic and Cainozoic rocks of the region. The mapping was aided by airborne magnetic and radiometric surveys flown at a height of 80 metres with a 200 metre line spacing.
The region lies in the eastern part of the Lachlan Fold Belt and includes the southern end of the Omeo structural zone as well as parts of the Tabberabbera and Buchan structural zones. The oldest rocks are Ordovician and are part of a sheet of turbidites and black shales that cover much of the eastern Lachlan Fold Belt.
Lakes Oil reported that the key Latrobe Formation was encountered at the anticipated depth of 582m. But it said, “The Top Latrobe clastics were water saturated, as predicted.”
ing gas trunkline into Longford, and Victoria’s need for alternative supplies of natural gas, could help improve the economics of any future development should gas be discovered.
“The Lower Latrobe target encountered several gas shows associated with coal beds in the sequence, but none of these proved commercially significant.”
Lakes recently completed a comprehensive study of all previous exploration wells and other data in a bid to develop new exploration plays for the onshore part of the basin, which apart from some primitive attempts at oil production, has never yielded a commercial discovery.
The older Adaminaby Group forms the bedrock over most of the area, while the overlying Bendoc Group, together with the Lower Silurian Yalmy Group, is only preserved as small fault bounded slices.
But the rapid deregulation of the Australian gas industry has dramatically changed the economic prospects for new discoveries in the Gippsland Basin, which offshore hosts the massive oil and gas fields of Bass Strait owned by BHP and Esso Australia.
During the Benambran Deformation at about 430 million years ago, the Ordovician and Lower Silurian rocks were strongly deformed, with deformation accompanied by intrusion of S-type granites and production of the high-T, low-P schists, gneisses and migmatites of the Omeo Metamorphic Complex.
“The Lower Latrobe Formation section contained excellent reservoir beds, but the hoped for, intra-formational seals, which are effective to the south in the offshore portion of the basin, were not present or poorly developed at the Investigator location,” the company said in its report to the Australian Stock Exchange. Lakes Oil, which had its origins at Lakes Entrance in 1946. is now planning to drill a new well in the onshore Gippsland Basin between the towns of Seaspray and Longford in permit PEP137. Several wells were drilled in the area in the 1960’s, one of which flowed gas to surface from the Golden Beach Formation target, which underlies the Latrobe Formation. The prospect has an estimated potential of up to 60 Billion cubic feet of recoverable gas. The close proximity of the target to the exist24
The Bindi 1:50,000 geology map, one of the four geology maps covering the Omeo map area, is shown on the following pages, while the 1:100 000 geophysical interpretation map is shown on this page.
ew maps and associated geological information for the Omeo 1:100,000 map area have been released by the Geological Survey of Victoria.
The report is accompanied by a digital database of mines and mineral occurrences. A GIS package for the area is also available.
A ‘show’ for Lakes Oil ustralia’s oldest independent oil and gas explorer, Lakes Oil NL, is keeping alive the pioneering spirit by seeking new oil and gas opportunities in the onshore portion of the Gippsland Basin.
New light on Highlands geology
Small onshore gas accumulations, now being sought by Lakes Oil are likely to be commercially viable development options in the near future. The deregulation of the Victorian gas industry, allowing new players to sell gas to Victorian distributors and the development of new gas pipelines, particularly the Eastern Gas pipeline from Longford to Sydney being built by Duke Energy, now provides ready markets for new gas discoveries.
The Late Silurian Enano Group which hosts the Wilga and Currawong copper-lead-zinc deposits are preserved in the Limestone Creek Graben, while the Mount Tambo Group is preserved in the Scrubby Creek Syncline. Probable Late Silurian rocks occur also in a newly discovered fault slice along the Barmouth Fault. The Silurian rocks were folded and faulted during the Bindian Deformation at the end of
the Silurian, followed by igneous activity in the broad meridional Cravensville Igneous Province which appears to have been a zone of extension. Numerous large and small I-type intrusions were emplaced and the Mount Elizabeth Caldera Complex was formed at Mount Elizabeth. At Bindi, deposition of ignimbrites of the Snowy River Volcanics was followed by pronounced subsidence during which the marine Buchan Group was deposited. Both the Snowy River Volcanics and the Buchan groups were folded and cleaved during the Middle Devonian Tabberabberan Deformation. Several granites, together with trachyte plugs and dykes, of the Triassic Mount Leinster Igneous Province are found in the map area. The late Mesozoic and Tertiary history is mainly one of block faulting, deep incision and stream diversion, but in the Eocene there was eruption of extensive older volcanics basalts, 25
now preserved only on the Nunniong Plateau. Extensive colluvial fans are developed along the large Livingstone Creek fault scarp, and extensive alluvial flats and terraces occur along the Tambo River, with more narrow flats along many of the smaller streams. The geophysical character of the various rock types is given with the lithological descriptions and a geophysical interpretation of the aeromagnetic and radiometric data is provided. The economic geology of the region has been compiled and is discussed in a number of sections covering mineral exploration, mining history, mineralisation style and economic potential and prospectivity. F O R M O R E I N F O R M AT I O N C O N TA C T:
Peter O’Shea, Manager Geological Mapping – GSV Telephone (03) 9412 5093
GEOLOGICAL NEWS
GEOLOGICAL NEWS
26
27
GEOLOGICAL NEWS
GEOLOGICAL NEWS
26
27
REGULAR FEATURE
Competition for Kipper development spreads W
oodside Petroleum has finally secured an entitlement to the gas reserves lying in the inshore portion of Bass Strait, including the Kipper field. Woodside recently acquired the interests of Petroz Offshore Pty Ltd from the listed company Petroz NL. The acquisition gives Woodside a 2.5 per cent equity share of the retention lease, Vic/RL2 which contains the majority of the Kipper gas field. Woodside also acquired 5.8 per cent of the Basker/Manta gas field, over which a retention lease is pending and 50 per cent of the balance of permit Vic P 19, which surrounds the Kipper field. The acquisition of Petroz Offshore Pty Ltd means that the acquisition cannot be overturned by other partners which may own preemptive rights to the lease. Woodside had previously attempted to purchase interests in the field but the deals were over-
turned due to the exercise of pre-emptive rights. The Kipper field is now controlled by Esso and BHP which still hold 50 per cent equity in the field. But Shell Development Australia holds an interest of 35 per cent with Santos Ltd holding 12.5 per cent and Woodside the remaining 2.5 per cent. Competition for access to new gas reserves in Eastern Australia has become fierce in the past year as deregulation of the gas industry and a growing network of natural gas pipelines dramatically enhances the opportunities in the marketplace. Of particular importance to Kipper is the development of the Eastern Gas Pipeline, now being built by Duke Energy Ltd between Gippsland and Sydney to open up new markets for Victorian gas. The new $440 million pipeline will connect Esso’s Longford plant in Gippsland to the main NSW grid near Sydney. Esso and BHP
are currently studying the feasibility of developing the Kipper field and are preparing to drill at least one more appraisal well on the field to determine reserves. About 40 per cent of the Kipper reserves also spill across into Esso/BHP’s wholly owned adjacent permit containing the Tuna oil field. A proposed development of both Kipper and the Basker fields involves gas being piped ashore to a processing plant to be built near Orbost and ultimately connecting into the Duke pipeline. Kipper gas would also be a prime candidate for NSW sales and, with potential resources of up to 600 billion cubic feet, could enter long-term supply contracts. F O R M O R E I N F O R M AT I O N C O N TA C T:
Rob Millhouse Woodside Petroleum Ltd (08) 9224 4281
COMMERCIAL HYDRAULICS AD HERE (SAME AS LAST ISSUE)
New RFA has little impact on explorers V
ictoria’s third Regional Forest Agreement (RFA) has been concluded between the Commonwealth and Victorian Governments. It covers an area roughly bounded by the Hume Freeway in the west, Jamieson in the south and the NSW border in the north. The
North-East RFA is expected to have little impact on the mining and exploration industry. A small addition to region’s national parks, covering an extra 2,700 ha, has been included in the Wongungarra catchment area. The new area of park is not regarded as highly prospective and has no recorded mineral occurrences.
Aside from this new area of national park, which represents only 0.12 per cent of the total land area of the region, there are no further restrictions on access to land for exploration and mining. The North East RFA is one of five which will be struck by 2000. East Gippsland and Central Highlands have already been concluded, while Gippsland and Western Victoria are to follow. The RFA’s, covering the forest areas of Victoria, last for twenty years and provide for the establishment of a “comprehensive, adequate and representative” (CAR) forest reserve system, to ensure conservation and protection of environmental and heritage values, sustainable forest management and development of forest based industries. The CAR reserve system for North-East Victoria will comprise: • National and State parks, which are not available for exploration and mining, • Other conservation reserves, some of which are restricted crown land under the Mineral Resources Development Act, and • State Forest, zoned for protection of significant conservation values, which is designated as unrestricted crown land.
28
FILM
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
N O V E M B E R
1 9 9 9
INSIDE THIS ISSUE •
MINERS HELP CLEANUP
•
OTWAY BASIN INTEREST
•
NEW DATA RELEASE
