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
M A Y
2 0 0 0
COMMERCIAL HYDRAULICS AD HERE (SEE NEW FILM)
INSIDE THIS ISSUE •
NEW GEOLOGY PICTURE
•
BLAINEY’S VIEWS ON MINING
•
EXPLORATION RELEASE
JLG 600 Series Boom Lifts. *
With the articulating jib that reaches more jobs. The JLG 600 Series of articulating and telescopic boom lifts incorporates the most advanced articulating jib in the business. A wider range of motion (+60º to –70º relative to the main boom) permits greater reach versatility in the immediate vicinity of the elevated work site.
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
M AY
2 0 0 0
contents GO-AHEAD FOR OUR FIRST MINERAL SANDS MINE
2
Production is expected to begin mid-2001.
600 Series booms feature:
• • • • •
DISCOVERY IT’S A GIANT LEAP FOR VIC GEOLOGY
6
A new report pinpoints explorers towards new gold deposits.
• Improved oscillating axle option. Lockout of the oscillating axle cylinders to form a rigid chassis does not occur until the superstructure swings 40º either side of the centreline. Outstanding rough terrain performance. Reduced maintenance, faster repair. Better gradeability. Smooth, fast, easy controls. Narrow chassis option.
MINING 2000 TAKES ON THE OLYMPIC PROPORTIONS
10
Melbourne’s Mining 2000 conference emerges as an Olympic star.
NEW SECRETARY FOR NRE
11
There’s a Scot at the helm.
WOODSIDE BUYS MORE OF BASS STRAIT
17
Development of the Kipper gas field moves closer.
NEW ACREAGE RELEASE TO ACCELERATE EXPLORATION
18
cover picture
Five blocks released.
FINAL RFAs NEGOTIATED
19
Little impact on mining predicted.
NEW PLAYS FROM OLD FIELDS
Folds in the lower Devonian formation at Cape Liptrap in South Gippsland. See page 6 for our cover story on the latest interpretation of Victoria’s geology.
20
Victoria’s Gippsland Basin still has plenty of potential.
THERE’S PLENTY OF LIFE LEFT IN BASS STRAIT
21
New technologies help boost oil production.
BLAINEY’S VIEWS OF THE MINING WORLD
22
Historian, Professor Geoffery Blainey speaks his mind on mining.
REEF SWITCHES ITS FOCUS
24
A mining company now seeks its fortune in new technology.
LAKES OIL SEEKS SEASPRAY GAS
25
Our oldest explorer continues its determined search.
MT GINGEE MUNJIE SET FOR GOLD
26
The old pioneering spirit is still alive and well.
JLG Financial Services
New release! The 601s
JLG can now deliver the best combination of leasing and financing alternatives, tailored to individual needs and with cost-competitive financial products that make your choice of JLG equipment easier. We can handle every aspect of the loan or lease, including flexible end-of-term options and disposition. Ring us now for facts and figures!
EXPLORATION DATA GOES DIGITAL
A 60' telescopic boom designed to work in extra tough environments. Incorporates a “hostile environment package” and 1000lb (454kg) restricted platform capacity. Find out more, contact JLG today.
It will be a boost for future explorers.
28
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.
regular features VIEWPOINT
* Models 600sj, 660sj and 600aj.
5
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.
8798
Government approach will meet industry and community needs.
INDUSTRY NEWS
12
What’s new in the Victorian industry.
VICTORIAN RESOURCES
Performs at the highest levels
Maps of mineral, oil and gas resources.
JLG Industries (Australia)
LICENCE REVIEW
Victoria & Tasmania (03) 9545 6303 New South Wales (02) 9726 6511 Queensland (07) 3272 9988 WA & NT (08) 9355 2266 South Australia (08) 8283 1099 New Zealand 0011 64 9 276 1728 Head Office (Port Macquarie) (02) 6581 1111
14
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.
16
The latest on exploration licences.
© Minerals and Petroleum Victoria 2000.
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] Editorial: Rex Banks. Advertising: Watts Media, 1396 Malvern Rd, Tooronga, Vic 3146 Tel: (03) 9822 4461 Fax: (03) 9822 9192. Distribution enquires to Chandri Nambiar, Manager Marketing Development, Minerals and Petroleum Division, Department of Natural Resources & Environment, Level 7, 240 Victoria Parade, East Melbourne, Vic, 3002, Tel: (03) 9412 5061 Fax: (03) 9412 5155. Website:
Australia Post Print Publication PP349472/00128. ISSN Number 13282409.
1
JLG 600 Series Boom Lifts. *
With the articulating jib that reaches more jobs. The JLG 600 Series of articulating and telescopic boom lifts incorporates the most advanced articulating jib in the business. A wider range of motion (+60º to –70º relative to the main boom) permits greater reach versatility in the immediate vicinity of the elevated work site.
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
M AY
2 0 0 0
contents GO-AHEAD FOR OUR FIRST MINERAL SANDS MINE
2
Production is expected to begin mid-2001.
600 Series booms feature:
• • • • •
DISCOVERY IT’S A GIANT LEAP FOR VIC GEOLOGY
6
A new report pinpoints explorers towards new gold deposits.
• Improved oscillating axle option. Lockout of the oscillating axle cylinders to form a rigid chassis does not occur until the superstructure swings 40º either side of the centreline. Outstanding rough terrain performance. Reduced maintenance, faster repair. Better gradeability. Smooth, fast, easy controls. Narrow chassis option.
MINING 2000 TAKES ON THE OLYMPIC PROPORTIONS
10
Melbourne’s Mining 2000 conference emerges as an Olympic star.
NEW SECRETARY FOR NRE
11
There’s a Scot at the helm.
WOODSIDE BUYS MORE OF BASS STRAIT
17
Development of the Kipper gas field moves closer.
NEW ACREAGE RELEASE TO ACCELERATE EXPLORATION
18
cover picture
Five blocks released.
FINAL RFAs NEGOTIATED
19
Little impact on mining predicted.
NEW PLAYS FROM OLD FIELDS
Folds in the lower Devonian formation at Cape Liptrap in South Gippsland. See page 6 for our cover story on the latest interpretation of Victoria’s geology.
20
Victoria’s Gippsland Basin still has plenty of potential.
THERE’S PLENTY OF LIFE LEFT IN BASS STRAIT
21
New technologies help boost oil production.
BLAINEY’S VIEWS OF THE MINING WORLD
22
Historian, Professor Geoffery Blainey speaks his mind on mining.
REEF SWITCHES ITS FOCUS
24
A mining company now seeks its fortune in new technology.
LAKES OIL SEEKS SEASPRAY GAS
25
Our oldest explorer continues its determined search.
MT GINGEE MUNJIE SET FOR GOLD
26
The old pioneering spirit is still alive and well.
JLG Financial Services
New release! The 601s
JLG can now deliver the best combination of leasing and financing alternatives, tailored to individual needs and with cost-competitive financial products that make your choice of JLG equipment easier. We can handle every aspect of the loan or lease, including flexible end-of-term options and disposition. Ring us now for facts and figures!
EXPLORATION DATA GOES DIGITAL
A 60' telescopic boom designed to work in extra tough environments. Incorporates a “hostile environment package” and 1000lb (454kg) restricted platform capacity. Find out more, contact JLG today.
It will be a boost for future explorers.
28
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.
regular features VIEWPOINT
* Models 600sj, 660sj and 600aj.
5
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.
8798
Government approach will meet industry and community needs.
INDUSTRY NEWS
12
What’s new in the Victorian industry.
VICTORIAN RESOURCES
Performs at the highest levels
Maps of mineral, oil and gas resources.
JLG Industries (Australia)
LICENCE REVIEW
Victoria & Tasmania (03) 9545 6303 New South Wales (02) 9726 6511 Queensland (07) 3272 9988 WA & NT (08) 9355 2266 South Australia (08) 8283 1099 New Zealand 0011 64 9 276 1728 Head Office (Port Macquarie) (02) 6581 1111
14
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.
16
The latest on exploration licences.
© Minerals and Petroleum Victoria 2000.
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] Editorial: Rex Banks. Advertising: Watts Media, 1396 Malvern Rd, Tooronga, Vic 3146 Tel: (03) 9822 4461 Fax: (03) 9822 9192. Distribution enquires to Chandri Nambiar, Manager Marketing Development, Minerals and Petroleum Division, Department of Natural Resources & Environment, Level 7, 240 Victoria Parade, East Melbourne, Vic, 3002, Tel: (03) 9412 5061 Fax: (03) 9412 5155. Website: Australia Post Print Publication PP349472/00128. ISSN Number 13282409.
1
MINERAL SANDS NEWS
MINERAL SANDS NEWS
Go-ahead for our first mineral sands mine T
he two-year mineral sands exploration boom in Victorian’s portion of the Murray Basin has paid off with RZM/Cable Sands and its new partner, Sons of Gwalia Ltd, confirming the development of the state’s first ever mineral sands mine and processing facility.
The study will include further exploration and the upgrading of existing reserves and resources.
The Wemen Project near Mildura in Victoria’s north west will be developed immediately with production expected by mid next year.
Sons of Gwalia Ltd, one of Australia’s biggest gold miners, acquired a half share in RZM’s Murray Basin mineral sands project last February.
RZM and Sons of Gwalia have opted for a two-stage approach to the mine development, which, based on a bankable feasibility study, has a mine life of approximately six years with annual average production estimated at 40,000 tonnes of rutile and 10,000 tonnes of zircon. The second stage of the project will involve the completion of a bankable feasibility study into the larger resources available in the Murray Basin.
RZM is a wholly-owned subsidiary of Nissho Iwai Corporation and is one of the largest suppliers and distributors of mineral sands in the world.
The deal gave Sons of Gwalia a 50 per cent interest in all of RZM’s tenement applications and freehold land in the Murray Basin region.
Tomago in the Hunter Valley in New South Wales. The deal was completed for $15 million - $6 million in cash and the sole funding of the first $9 million in ongoing exploration and development costs which is all to be applied to the Wemen project’s capital expenditure estimate of approximately $20 million. The stage two feasibility study should be completed within the next two to three years with the objective of increasing production within the next four years. Assuming a positive result from the stage two study, RZM and Sons of Gwalia expect that
This covers known mineral sands resources as well as the existing mineral sands reserves and resources delineated by RZM to date which total 5.7 million tonnes of heavy minerals.
a large scale mineral sands processing plant could cost $60 million to $80 million and produce 300,000 - 400,000 tonnes a year of heavy
It also gave Sons of Gwalia a half share in the mineral sands processing plant and equipment owned by RZM and currently located at
Drilling rigs are a common sight in the Murray Basin as miners step up their exploration efforts.
Peter Laylor, Managing Director and Executive Chairman, Sons of Gwalia Ltd.
mineral concentrates in various forms. Victoria’s Minister for Energy and Resources, Candy Broad, welcomed the planned mine development at Wemen.
of mineral sands in Australia and that global demand for mineral sands will continue to increase.”
“This is great news for rural and regional Victoria and it is great news for our mining industry ,” she said. “The mineral sands industry has an excellent reputation across Australia for its important contribution to export earnings and sound environmental record”.
He said the Wemen project represented an opportunity to participate in a potentially world class, long-life mining project in an alliance with a substantial and recognised partner in the mineral sands business..
Ms Broad added that 43 new jobs would be created with another 100 potential indirect jobs also created.
He added: “The joint venture partners are of the view that this two-stage approach substantially removes project risk and allows time for a careful consideration of project economics and market conditions for the mineral sands industry.”
“RZM has a number of other deposits elsewhere in the Murray Basin and their decision to initiate operations in Victoria is further evidence of not only Victoria’s prospectivity for minerals, but out excellent infrastructure and positive investment climate. Victoria really is a great place to be in the mineral sands business,” she said. Victoria’s Chamber of Mines also welcomed the planned mining development.
it will signal a solid start to developments in the Murray Basin.”
VCM Executive Director, Chris Fraser, said, “This will be the first major mine started in Victoria for two years. It is also significant as
Sons of Gwalia Chief Executive, Peter Lalor, said that the company, “believes that the Murray Basin will be the next major producer
F O R M O R E I N F O R M AT I O N C O N TA C T:
David Paull General Manager - Business Development Sons of Gwalia Tel: (08) 9263 5555 Fax: (08) 9481 1271
Craton lifts the bar T
he pace of mineral sands exploration in Victoria’s Murray Basin region is quickly being translated into new discoveries and a rapid expansion of known resources. Already the Wemen discovery near Mildura has been declared commercial and is being developed (see story, above). Junior explorer, Craton Resources NL, has also reported major successes in its latest work where more than 28,100 metres of drilling on the Bondi and Echo strandline systems in the Douglas project area has substantially upgraded resource estimates. Craton Resources NL, through its wholly owned subsidiary, Basin Minerals NL, has eight discrete project areas totalling 17,879 square kilometres in the Murray Basin of South 2
Australia, Victoria and New South Wales. But it is in Victoria where the company is making its biggest advances. During February, Craton Resources revealed the biggest coarsegrained, inferred mineral sands resource so far located in the Murray Basin, an area rapidly emerging as a world-scale heavy mineral province. In a release to the Australian Stock Exchange, Craton said drilling at its Douglas project, near Horsham, had yielded an initial inferred resource base of 11.3 million tonnes of heavy minerals, including a contained 7.5 million tonnes of valuable heavy minerals, zircon, rutile, ilmenite and leucoxene. The company added that four nearby deposits, which it has classified as ‘emerging resources’ with strandlines measuring from 10 km to 3
22.5 km, could double in size with additional drilling to be conducted by the third quarter. Current inferred resources are at the 11 km Bondi strandline which contains an inferred resources of 7.6 million tonnes of heavy mineral concentrate, and the Echo strandline. This deposit is 12 km long and contains an inferred resource of 3.7 million tonnes of HM concentrate. Bondi and Echo are the two most advanced properties held by Craton. "Together they make up the biggest coarse grained, inferred mineral resource so far found in the Murray Basin," Craton Managing Director, Dr Brad Farrell, said. If exploration continues to prove successful Craton hopes to launch a full feasibility study by July or August as a preliminary to moving into
MINERAL SANDS NEWS
MINERAL SANDS NEWS
Go-ahead for our first mineral sands mine T
he two-year mineral sands exploration boom in Victorian’s portion of the Murray Basin has paid off with RZM/Cable Sands and its new partner, Sons of Gwalia Ltd, confirming the development of the state’s first ever mineral sands mine and processing facility.
The study will include further exploration and the upgrading of existing reserves and resources.
The Wemen Project near Mildura in Victoria’s north west will be developed immediately with production expected by mid next year.
Sons of Gwalia Ltd, one of Australia’s biggest gold miners, acquired a half share in RZM’s Murray Basin mineral sands project last February.
RZM and Sons of Gwalia have opted for a two-stage approach to the mine development, which, based on a bankable feasibility study, has a mine life of approximately six years with annual average production estimated at 40,000 tonnes of rutile and 10,000 tonnes of zircon. The second stage of the project will involve the completion of a bankable feasibility study into the larger resources available in the Murray Basin.
RZM is a wholly-owned subsidiary of Nissho Iwai Corporation and is one of the largest suppliers and distributors of mineral sands in the world.
The deal gave Sons of Gwalia a 50 per cent interest in all of RZM’s tenement applications and freehold land in the Murray Basin region.
Tomago in the Hunter Valley in New South Wales. The deal was completed for $15 million - $6 million in cash and the sole funding of the first $9 million in ongoing exploration and development costs which is all to be applied to the Wemen project’s capital expenditure estimate of approximately $20 million. The stage two feasibility study should be completed within the next two to three years with the objective of increasing production within the next four years. Assuming a positive result from the stage two study, RZM and Sons of Gwalia expect that
This covers known mineral sands resources as well as the existing mineral sands reserves and resources delineated by RZM to date which total 5.7 million tonnes of heavy minerals.
a large scale mineral sands processing plant could cost $60 million to $80 million and produce 300,000 - 400,000 tonnes a year of heavy
It also gave Sons of Gwalia a half share in the mineral sands processing plant and equipment owned by RZM and currently located at
Drilling rigs are a common sight in the Murray Basin as miners step up their exploration efforts.
Peter Laylor, Managing Director and Executive Chairman, Sons of Gwalia Ltd.
mineral concentrates in various forms. Victoria’s Minister for Energy and Resources, Candy Broad, welcomed the planned mine development at Wemen.
of mineral sands in Australia and that global demand for mineral sands will continue to increase.”
“This is great news for rural and regional Victoria and it is great news for our mining industry ,” she said. “The mineral sands industry has an excellent reputation across Australia for its important contribution to export earnings and sound environmental record”.
He said the Wemen project represented an opportunity to participate in a potentially world class, long-life mining project in an alliance with a substantial and recognised partner in the mineral sands business..
Ms Broad added that 43 new jobs would be created with another 100 potential indirect jobs also created.
He added: “The joint venture partners are of the view that this two-stage approach substantially removes project risk and allows time for a careful consideration of project economics and market conditions for the mineral sands industry.”
“RZM has a number of other deposits elsewhere in the Murray Basin and their decision to initiate operations in Victoria is further evidence of not only Victoria’s prospectivity for minerals, but out excellent infrastructure and positive investment climate. Victoria really is a great place to be in the mineral sands business,” she said. Victoria’s Chamber of Mines also welcomed the planned mining development.
it will signal a solid start to developments in the Murray Basin.”
VCM Executive Director, Chris Fraser, said, “This will be the first major mine started in Victoria for two years. It is also significant as
Sons of Gwalia Chief Executive, Peter Lalor, said that the company, “believes that the Murray Basin will be the next major producer
F O R M O R E I N F O R M AT I O N C O N TA C T:
David Paull General Manager - Business Development Sons of Gwalia Tel: (08) 9263 5555 Fax: (08) 9481 1271
Craton lifts the bar T
he pace of mineral sands exploration in Victoria’s Murray Basin region is quickly being translated into new discoveries and a rapid expansion of known resources. Already the Wemen discovery near Mildura has been declared commercial and is being developed (see story, above). Junior explorer, Craton Resources NL, has also reported major successes in its latest work where more than 28,100 metres of drilling on the Bondi and Echo strandline systems in the Douglas project area has substantially upgraded resource estimates. Craton Resources NL, through its wholly owned subsidiary, Basin Minerals NL, has eight discrete project areas totalling 17,879 square kilometres in the Murray Basin of South 2
Australia, Victoria and New South Wales. But it is in Victoria where the company is making its biggest advances. During February, Craton Resources revealed the biggest coarsegrained, inferred mineral sands resource so far located in the Murray Basin, an area rapidly emerging as a world-scale heavy mineral province. In a release to the Australian Stock Exchange, Craton said drilling at its Douglas project, near Horsham, had yielded an initial inferred resource base of 11.3 million tonnes of heavy minerals, including a contained 7.5 million tonnes of valuable heavy minerals, zircon, rutile, ilmenite and leucoxene. The company added that four nearby deposits, which it has classified as ‘emerging resources’ with strandlines measuring from 10 km to 3
22.5 km, could double in size with additional drilling to be conducted by the third quarter. Current inferred resources are at the 11 km Bondi strandline which contains an inferred resources of 7.6 million tonnes of heavy mineral concentrate, and the Echo strandline. This deposit is 12 km long and contains an inferred resource of 3.7 million tonnes of HM concentrate. Bondi and Echo are the two most advanced properties held by Craton. "Together they make up the biggest coarse grained, inferred mineral resource so far found in the Murray Basin," Craton Managing Director, Dr Brad Farrell, said. If exploration continues to prove successful Craton hopes to launch a full feasibility study by July or August as a preliminary to moving into
MINERAL SANDS NEWS
REGULAR FEATURE
Craton Resources has substantially upgraded its estimates of mineral sands following testing of the Douglas project, near Horsham.
The strand is up to 240 metres wide and up to 9 metres thick at 9 metres depth,” he added. To advance exploration and delineation of the Douglas project Craton recently entered technical and strategic alliances with Leighton Holdings Ltd, one of Australia’s largest project development and contracting groups, and MD Mineral Technologies, one of the world’s leading designers and suppliers of gravity separation plants and equipment and with extensive experience in mineral sands metallurgy. Leighton and MD will participate in a program to produce a pre-feasibility study document as a preliminary to the full final feasibility study. Dr Farrell said that while neither Leighton nor MD had an equity position in the Douglas project, "The alliance represents a prelude to their possible future involvement in the project via financing, construction and long term contractual opportunities such as mining and mineral processing." The Douglas project area is well serviced by local infrastructure and sits within a well serviced wider area.
commercial development of part of the portfolio.
ern and central sections of the Echo strandline.
"These and our other discoveries represent a new mineral sands field of potential global significance," said Dr Farrell. The Murray Basin contains many prospective palaeo-beach strandlines with potentially commercial quantities of heavy minerals.
The drilling, “generally resulted in substantial upgrading of known mineralisation in grade and tonnes on both section and on strike and the discovery of further mineralised strandlines within the overall strand systems,” Dr Farrell said.
Basin Minerals is currently the third largest licence holder in the Murray Basin after Iluka Resources Ltd and RZM Pty Ltd..
“A satellite strand was found 2 kilometres to the east of Echo which was intersected on two traverses approximately 3 kilometres apart.
The deepwater port of Portland lies 150 km to the south, an obvious location for a future dry processing mill, Dr Farrell said. F O R M O R E I N F O R M AT I O N C O N TA C T:
Dr Brad Farrell – Managing Director or Neil O’Loughlin – Exploration Manager Craton Resources NL Phone (08) 9481 3638 Website: www.craton.com.au
Govt approach offers certainty T
he Government is committed to developing a minerals and petroleum industry that contributes substantially to the wealth and wellbeing of all Victorians, while meeting contemporary community expectations for social and environmental outcomes. Further we recognise that, in order to invest and prosper, industry needs a degree of certainty and confidence in government to provide a positive investment climate. The Government is well aware of the key role that the minerals, petroleum and extractive industries have played, and continue to play, in Victoria’s development.
• Ensuring that an expanding and changing industry meets or exceeds contemporary standards for safety, social and environmental outcomes
Today, these industries have a combined annual production value of greater than $3.5 billion and employ about 2200 people directly.
• Ensuring that the Geological Survey of Victoria continues to provide regional geological information, in the latest valueadded formats, to the minerals industry
Direct government charges and royalties collected from these industries total $1062 million, of which $1040 million goes to the Commonwealth. Downstream processing industries, including electricity generation, petrochemicals and smelting, contribute $29 billion to Victoria’s economy and provide 92,000 jobs.
The community’s social and environmental expectations must also be met In addition to our existing resource-based industries, prospects are now good for the re-
Significant strandline discoveries (Acapulco, Bondi and Echo) have been announced recently with the area comprising the company’s major exploration focus.
emergence of a substantial Victorian gold industry and the development of new industries based on the mining and processing of mineral sands.
Dr Farrell said, “As further discoveries are made and known strandlines grow in size, it is the Board’s view that these discoveries are indicative of the presence of a world-class mineral sands field.”
These developments fit very well with the Bracks’ Government’s commitment to grow the whole state. In recognition of the importance the Government places on the resource industries, I have recently re-convened the Extractive & Mining Industry Advisory Board. This will give industry the opportunity to meet with me, as Minister, on a regular basis to canvass ideas, initiatives and any matters of concern. The Govemment’s minerals and petroleum policies will provide the framework for
A mobile testing plant enables on-the-spot sampling for heavy minerals.
4
Challenges facing government and industry include: • Ensuring that the Department’s Minerals & Petroleum program continues to deliver access to state-of-the-art geological and resource information, that regulatory functions are undertaken at a satisfactory level and that research and development are enhanced
The Douglas Project in western Victoria occupies an area of 11,872 square kilometres immediately north of a rugged palaeo-coastline which includes the Grampians and Mt Arapiles.
In the quarter ended December 1999 a total of 1,109 holes were drilled for 28,133 metres with bulk metallurgical testwork of the south-
achieving our vision for the industry and for future government service delivery in the minerals and petroleum sectors.
FROM LAST ISSUE
• Ensuring our understanding of the science of rehabilitation of mine sites, in particular the maintenance and restoration of indigenous species diversity, is up to date • Ensuring the value of Victoria’s vast brown coal resources is realised, while also meeting current and future greenhouse commitments • Ensuring the further analysis of the State’s actual and potential oil and gas reserves, together with long-term strategic planning, to facilitate the development of these resources to meet the community’s needs and broaden the options for ongoing gas supply • Ensuring world-class exploration for new gas reserves through provision of petroleum data to the global investment community • Ensuring the adequacy of the planning protection for strategic extractive industry resources, and • Ensuring the adequacy of co-operation between Government, industry and Victorian universities in the earth sciences. Beyond these challenges, Government is aware of the need for mining legislation that provides a contemporary legislative framework for the development and regulation of the mineral exploration and mining industry, and will consider amendments to the Mineral Resources Development Act to achieve this result. In relation to the regulation of mineral exploration and mining, the Government supports a stringent regime for managing exploration and mining impacts on land with high conserva5
Candy Broad Minister for Energy and Resources
tion value, including prohibition of exploration and mining in national, state and wilderness parks and reference areas. The Government believes that mining and extractive sites should have rehabilitation bonds which will properly cover the potential rehabilitation liability of any operation. It is also keen to ensure that purchasers of rural residential properties and land are made aware of existing approvals for mining and extractive projects that may not have commenced operation. Lastly, the Government is concerned that private land with high environmental value be given similar protection to equivalent Crown land in resource exploration and development proposals. I believe this Government’s approach will give the minerals industry the certainty and the confidence to continue to invest in Victoria, whilst meeting the community’s social and environmental expectations.
MINERAL SANDS NEWS
REGULAR FEATURE
Craton Resources has substantially upgraded its estimates of mineral sands following testing of the Douglas project, near Horsham.
The strand is up to 240 metres wide and up to 9 metres thick at 9 metres depth,” he added. To advance exploration and delineation of the Douglas project Craton recently entered technical and strategic alliances with Leighton Holdings Ltd, one of Australia’s largest project development and contracting groups, and MD Mineral Technologies, one of the world’s leading designers and suppliers of gravity separation plants and equipment and with extensive experience in mineral sands metallurgy. Leighton and MD will participate in a program to produce a pre-feasibility study document as a preliminary to the full final feasibility study. Dr Farrell said that while neither Leighton nor MD had an equity position in the Douglas project, "The alliance represents a prelude to their possible future involvement in the project via financing, construction and long term contractual opportunities such as mining and mineral processing." The Douglas project area is well serviced by local infrastructure and sits within a well serviced wider area.
commercial development of part of the portfolio.
ern and central sections of the Echo strandline.
"These and our other discoveries represent a new mineral sands field of potential global significance," said Dr Farrell. The Murray Basin contains many prospective palaeo-beach strandlines with potentially commercial quantities of heavy minerals.
The drilling, “generally resulted in substantial upgrading of known mineralisation in grade and tonnes on both section and on strike and the discovery of further mineralised strandlines within the overall strand systems,” Dr Farrell said.
Basin Minerals is currently the third largest licence holder in the Murray Basin after Iluka Resources Ltd and RZM Pty Ltd..
“A satellite strand was found 2 kilometres to the east of Echo which was intersected on two traverses approximately 3 kilometres apart.
The deepwater port of Portland lies 150 km to the south, an obvious location for a future dry processing mill, Dr Farrell said. F O R M O R E I N F O R M AT I O N C O N TA C T:
Dr Brad Farrell – Managing Director or Neil O’Loughlin – Exploration Manager Craton Resources NL Phone (08) 9481 3638 Website: www.craton.com.au
Govt approach offers certainty T
he Government is committed to developing a minerals and petroleum industry that contributes substantially to the wealth and wellbeing of all Victorians, while meeting contemporary community expectations for social and environmental outcomes. Further we recognise that, in order to invest and prosper, industry needs a degree of certainty and confidence in government to provide a positive investment climate. The Government is well aware of the key role that the minerals, petroleum and extractive industries have played, and continue to play, in Victoria’s development.
• Ensuring that an expanding and changing industry meets or exceeds contemporary standards for safety, social and environmental outcomes
Today, these industries have a combined annual production value of greater than $3.5 billion and employ about 2200 people directly.
• Ensuring that the Geological Survey of Victoria continues to provide regional geological information, in the latest valueadded formats, to the minerals industry
Direct government charges and royalties collected from these industries total $1062 million, of which $1040 million goes to the Commonwealth. Downstream processing industries, including electricity generation, petrochemicals and smelting, contribute $29 billion to Victoria’s economy and provide 92,000 jobs.
The community’s social and environmental expectations must also be met In addition to our existing resource-based industries, prospects are now good for the re-
Significant strandline discoveries (Acapulco, Bondi and Echo) have been announced recently with the area comprising the company’s major exploration focus.
emergence of a substantial Victorian gold industry and the development of new industries based on the mining and processing of mineral sands.
Dr Farrell said, “As further discoveries are made and known strandlines grow in size, it is the Board’s view that these discoveries are indicative of the presence of a world-class mineral sands field.”
These developments fit very well with the Bracks’ Government’s commitment to grow the whole state. In recognition of the importance the Government places on the resource industries, I have recently re-convened the Extractive & Mining Industry Advisory Board. This will give industry the opportunity to meet with me, as Minister, on a regular basis to canvass ideas, initiatives and any matters of concern. The Govemment’s minerals and petroleum policies will provide the framework for
A mobile testing plant enables on-the-spot sampling for heavy minerals.
4
Challenges facing government and industry include: • Ensuring that the Department’s Minerals & Petroleum program continues to deliver access to state-of-the-art geological and resource information, that regulatory functions are undertaken at a satisfactory level and that research and development are enhanced
The Douglas Project in western Victoria occupies an area of 11,872 square kilometres immediately north of a rugged palaeo-coastline which includes the Grampians and Mt Arapiles.
In the quarter ended December 1999 a total of 1,109 holes were drilled for 28,133 metres with bulk metallurgical testwork of the south-
achieving our vision for the industry and for future government service delivery in the minerals and petroleum sectors.
FROM LAST ISSUE
• Ensuring our understanding of the science of rehabilitation of mine sites, in particular the maintenance and restoration of indigenous species diversity, is up to date • Ensuring the value of Victoria’s vast brown coal resources is realised, while also meeting current and future greenhouse commitments • Ensuring the further analysis of the State’s actual and potential oil and gas reserves, together with long-term strategic planning, to facilitate the development of these resources to meet the community’s needs and broaden the options for ongoing gas supply • Ensuring world-class exploration for new gas reserves through provision of petroleum data to the global investment community • Ensuring the adequacy of the planning protection for strategic extractive industry resources, and • Ensuring the adequacy of co-operation between Government, industry and Victorian universities in the earth sciences. Beyond these challenges, Government is aware of the need for mining legislation that provides a contemporary legislative framework for the development and regulation of the mineral exploration and mining industry, and will consider amendments to the Mineral Resources Development Act to achieve this result. In relation to the regulation of mineral exploration and mining, the Government supports a stringent regime for managing exploration and mining impacts on land with high conserva5
Candy Broad Minister for Energy and Resources
tion value, including prohibition of exploration and mining in national, state and wilderness parks and reference areas. The Government believes that mining and extractive sites should have rehabilitation bonds which will properly cover the potential rehabilitation liability of any operation. It is also keen to ensure that purchasers of rural residential properties and land are made aware of existing approvals for mining and extractive projects that may not have commenced operation. Lastly, the Government is concerned that private land with high environmental value be given similar protection to equivalent Crown land in resource exploration and development proposals. I believe this Government’s approach will give the minerals industry the certainty and the confidence to continue to invest in Victoria, whilst meeting the community’s social and environmental expectations.
GEOLOGY NEWS
GEOLOGY NEWS
It’s a giant leap for Vic geology
N
ew ideas on Victoria’s geology are about to hit the Australian mining industry through the release of the book ‘The Tasman Fold Belt System in Victoria’. Two years in the making, this new book represents the largest leap forward in 150 years in understanding the crustal architecture of Victoria. Produced by the Geological Survey of Victoria (GSV), it combines the latest survey technology with contemporary thinking on Victoria’s geological development. Experts say the result is the most comprehensive geological picture of the state since the pioneering geological mapping of Alfred Selwyn in the 1850’s. The publication is indirectly the result of two major initiatives in the 1990’s, the Victorian Initiative for Minerals and Petroleum (VIMP) and the National Geoscience Mapping Accord (NGMA), both of which provided detailed airborne geophysical data. The geophysical data are vital in developing a better understanding of Victoria’s geological framework, particularly in areas under cover. VIMP funding also allowed for an increase in GSV staff levels and resulted in a significant increase in the rate of new geological mapping at the GSV. This new mapping has led to a number of major advances in the understanding of Victoria during the Palaeozoic:
‘The Tasman Fold Belt System in Victoria’ continues a long tradition, established by the Geological Survey of Victoria in 1851, of publishing the latest information to provide a comprehensive picture of Victorian geology. It was the discovery of gold in Victoria in 1851, which led to the appointment of Alfred Selwyn as the Government’s Mineralogical Surveyor and the creation of the Victorian Geological Survey. After Selwyn’s arrival from England in 1852, he immediately started mapping the state, establishing a tradition of regional geological mapping at the GSV. Between 1856 and 1959, most geological mapping was carried out a scale of 1:31,680. Geological maps at the scale of 1:63,360 were introduced in the late 1950’s, succeeded by the 1:50,000 series in the
• Arc-continent collision as the possible cause of the Delamerian orogeny; • delineation of the Moyston Fault being the western edge of the Lachlan Fold Belt; • a thin-skinned interpretation of the Grampians; • the concept of the Selwyn Block as old cratonic basement in central Victoria; • the Selwyn Block as a controlling factor on the distribution of orogenic gold mineralisation;
1970’s and then the first statewide coverage at 1:250,000. The first ‘geologically colored’ sketch map of Victoria, at approximately 1:500,000 scale, was produced in 1863 with new statewide maps produced periodically as new mapping information came to hand. These maps were based on more detailed mapping which has been the core activity of the GSV since its inception. While explanatory notes were frequently produced for maps at scales from 1:31,680 to 1:250,000, geologists rarely attempted to describe the geology of the whole state in a single volume. Selwyn’s accounts of 1861 and 1866 were the first, followed in 1887 by Murray’s book, ‘The Geology and Physical Geography of Victoria’, which remained the only comprehensive account of Victorian geology until the ANZAAS
6
Above: A mineralised, bedding-parallel quartz vein in the Central Deborah mine, Bendigo.
• the identification of discrete windows of gold mineralisation; and • the Governor Fault as a major break between eastern and western Victoria along which strike slip duplication of much of the Lachlan may have occurred.
Handbook for Victoria in 1935. In 1976, the first edition of ‘Geology of Victoria’ was published by the Geological Society of Australia, followed by a second edition in 1988. The 1976 edition described Victorian Palaeozoic geology in traditional terms of troughs and basins, separated by Cambrian greenstone axes. The second edition, published in 1988, split Victoria’s geology into structural zones and a plate tectonic slant was given to the overall tectonic development of the state. So, between 1856 and today, there have been only six attempts to provide a comprehensive account of Victorian Palaeozoic geology. This underscores the importance of the release of ‘The Tasman Fold Belt System in Victoria’ as another milestone in the development of ideas on the geological setting of Victoria during the Palaeozoic.
A deep seismic reflection transect in western Victoria, undertaken by the Australian Geodynamics Cooperative Research Centre in 1997, confirmed the GSV crustal interpretation of the western Lachlan while new geochronological data collected by GSV, Cooperative Research Centres, AMIRA and universities, have led to a much better understanding of the timing of tectonic events and mineralisation. By 1998, the stage was set for the GSV to put together the results of a decade of new generation geological mapping, together with geophysical and geochronological data, to produce an interpretation of the tectonic development of Victoria from the Neoproterozoic up to the end of the Carboniferous. The Tasman Fold Belt System in Victoria presents the pre-Permian geology, geophysics and mineralisation of the Victorian part of the Tasman Fold Belt system through time and space. This perspective is summarised in a time-space figure that is referred to throughout the book. Boxes are used to highlight key information and the book is split into five chapters: Chapter one provides background historical information and a summary of the geology and mineralisation. Chapter two, ‘Rock Forming Events Through Time’, considers the time axis of the timespace figure and describes the stratigraphy of the Tasman Fold Belt System in Victoria up to the Permian. Chapter three, ‘Structural Zones’, concentrates on the structures and considers the space axis of the time-space figure.It describes the effects of the various deformations and structurally controlled goldfields for each structural zone. Chapter four, ‘Intrusive History’, considers the Palaeozoic plutonic rocks and mineralisation formed by magmatic-hydrothermal processes. Chapter five, ‘Tectonic Evolution of Victoria’, is
more interpretive and divided into two sections. ‘Concepts and Models’ examines some of the major geological issues and concepts regarding the tectonic setting of Victoria and ‘Tectonic Evolution - A Synthesis’ describes the chronological development of Victoria from the Proterozoic to Carboniferous times. The book, in hard cover, is accompanied by three 1:1,000,000 scale maps of the state. The first is an outcrop geology map which incorporates the results of new geological mapping conducted by the GSV since the previous version in 1988. In contrast to the 1988 version, major faults are shown, reflecting the importance now placed on structural interpretation. A pre-Permian solid geology map provides the first picture of the Palaeozoic geology of the state under cover. It relies heavily on the interpretation of airborne magnetic survey data, together with gravity and mapping data. The interpretation is combined with a greyscale image of the magnetics, making the units stand out and easy to follow. The accompanying regional cross-section is the first attempt at providing a complete section through all the structural zones in Victoria using modern tectonic interpretation. The book’s third major map - showing prePermian mineralisation and geology - shows the distribution of pre-Permian mineralisation in relation to the solid geology interpretation. It is accompanied by inset maps showing major goldfields and vein trends, mineral domains and metallogenic associations and allows the reader to make the association between the genesis of deposits and the geological environment in which they are found. The text of the book, together with raster images of the maps, is included on a CD-ROM. The package containing book, maps and CD-ROM is priced at $100 plus postage and packing. 7
Above: Map and magnetic image showing a strike-slip fault in the Benambra Terrane. In this instance, the sinistral Kancoona Fault has cut across the Mudgeegonga Granite, which was intruded as the faulting occurred in the Tabberabberan Orogeny.
T O O R D E R C O N TA C T:
Kim Ricketts, Minerals Business Centre Phone: (03) 9412 5103 – Fax: (03) 9412 5157 Email: [email protected]
T E C H N I C A L C O N TA C T:
Peter O’Shea, Manager Geological Mapping, Geological Survey of Victoria Phone (03) 94125093 – Fax: (03) 94125155 Email: Peter.O’[email protected]
GEOLOGY NEWS
GEOLOGY NEWS
It’s a giant leap for Vic geology
N
ew ideas on Victoria’s geology are about to hit the Australian mining industry through the release of the book ‘The Tasman Fold Belt System in Victoria’. Two years in the making, this new book represents the largest leap forward in 150 years in understanding the crustal architecture of Victoria. Produced by the Geological Survey of Victoria (GSV), it combines the latest survey technology with contemporary thinking on Victoria’s geological development. Experts say the result is the most comprehensive geological picture of the state since the pioneering geological mapping of Alfred Selwyn in the 1850’s. The publication is indirectly the result of two major initiatives in the 1990’s, the Victorian Initiative for Minerals and Petroleum (VIMP) and the National Geoscience Mapping Accord (NGMA), both of which provided detailed airborne geophysical data. The geophysical data are vital in developing a better understanding of Victoria’s geological framework, particularly in areas under cover. VIMP funding also allowed for an increase in GSV staff levels and resulted in a significant increase in the rate of new geological mapping at the GSV. This new mapping has led to a number of major advances in the understanding of Victoria during the Palaeozoic:
‘The Tasman Fold Belt System in Victoria’ continues a long tradition, established by the Geological Survey of Victoria in 1851, of publishing the latest information to provide a comprehensive picture of Victorian geology. It was the discovery of gold in Victoria in 1851, which led to the appointment of Alfred Selwyn as the Government’s Mineralogical Surveyor and the creation of the Victorian Geological Survey. After Selwyn’s arrival from England in 1852, he immediately started mapping the state, establishing a tradition of regional geological mapping at the GSV. Between 1856 and 1959, most geological mapping was carried out a scale of 1:31,680. Geological maps at the scale of 1:63,360 were introduced in the late 1950’s, succeeded by the 1:50,000 series in the
• Arc-continent collision as the possible cause of the Delamerian orogeny; • delineation of the Moyston Fault being the western edge of the Lachlan Fold Belt; • a thin-skinned interpretation of the Grampians; • the concept of the Selwyn Block as old cratonic basement in central Victoria; • the Selwyn Block as a controlling factor on the distribution of orogenic gold mineralisation;
1970’s and then the first statewide coverage at 1:250,000. The first ‘geologically colored’ sketch map of Victoria, at approximately 1:500,000 scale, was produced in 1863 with new statewide maps produced periodically as new mapping information came to hand. These maps were based on more detailed mapping which has been the core activity of the GSV since its inception. While explanatory notes were frequently produced for maps at scales from 1:31,680 to 1:250,000, geologists rarely attempted to describe the geology of the whole state in a single volume. Selwyn’s accounts of 1861 and 1866 were the first, followed in 1887 by Murray’s book, ‘The Geology and Physical Geography of Victoria’, which remained the only comprehensive account of Victorian geology until the ANZAAS
6
Above: A mineralised, bedding-parallel quartz vein in the Central Deborah mine, Bendigo.
• the identification of discrete windows of gold mineralisation; and • the Governor Fault as a major break between eastern and western Victoria along which strike slip duplication of much of the Lachlan may have occurred.
Handbook for Victoria in 1935. In 1976, the first edition of ‘Geology of Victoria’ was published by the Geological Society of Australia, followed by a second edition in 1988. The 1976 edition described Victorian Palaeozoic geology in traditional terms of troughs and basins, separated by Cambrian greenstone axes. The second edition, published in 1988, split Victoria’s geology into structural zones and a plate tectonic slant was given to the overall tectonic development of the state. So, between 1856 and today, there have been only six attempts to provide a comprehensive account of Victorian Palaeozoic geology. This underscores the importance of the release of ‘The Tasman Fold Belt System in Victoria’ as another milestone in the development of ideas on the geological setting of Victoria during the Palaeozoic.
A deep seismic reflection transect in western Victoria, undertaken by the Australian Geodynamics Cooperative Research Centre in 1997, confirmed the GSV crustal interpretation of the western Lachlan while new geochronological data collected by GSV, Cooperative Research Centres, AMIRA and universities, have led to a much better understanding of the timing of tectonic events and mineralisation. By 1998, the stage was set for the GSV to put together the results of a decade of new generation geological mapping, together with geophysical and geochronological data, to produce an interpretation of the tectonic development of Victoria from the Neoproterozoic up to the end of the Carboniferous. The Tasman Fold Belt System in Victoria presents the pre-Permian geology, geophysics and mineralisation of the Victorian part of the Tasman Fold Belt system through time and space. This perspective is summarised in a time-space figure that is referred to throughout the book. Boxes are used to highlight key information and the book is split into five chapters: Chapter one provides background historical information and a summary of the geology and mineralisation. Chapter two, ‘Rock Forming Events Through Time’, considers the time axis of the timespace figure and describes the stratigraphy of the Tasman Fold Belt System in Victoria up to the Permian. Chapter three, ‘Structural Zones’, concentrates on the structures and considers the space axis of the time-space figure.It describes the effects of the various deformations and structurally controlled goldfields for each structural zone. Chapter four, ‘Intrusive History’, considers the Palaeozoic plutonic rocks and mineralisation formed by magmatic-hydrothermal processes. Chapter five, ‘Tectonic Evolution of Victoria’, is
more interpretive and divided into two sections. ‘Concepts and Models’ examines some of the major geological issues and concepts regarding the tectonic setting of Victoria and ‘Tectonic Evolution - A Synthesis’ describes the chronological development of Victoria from the Proterozoic to Carboniferous times. The book, in hard cover, is accompanied by three 1:1,000,000 scale maps of the state. The first is an outcrop geology map which incorporates the results of new geological mapping conducted by the GSV since the previous version in 1988. In contrast to the 1988 version, major faults are shown, reflecting the importance now placed on structural interpretation. A pre-Permian solid geology map provides the first picture of the Palaeozoic geology of the state under cover. It relies heavily on the interpretation of airborne magnetic survey data, together with gravity and mapping data. The interpretation is combined with a greyscale image of the magnetics, making the units stand out and easy to follow. The accompanying regional cross-section is the first attempt at providing a complete section through all the structural zones in Victoria using modern tectonic interpretation. The book’s third major map - showing prePermian mineralisation and geology - shows the distribution of pre-Permian mineralisation in relation to the solid geology interpretation. It is accompanied by inset maps showing major goldfields and vein trends, mineral domains and metallogenic associations and allows the reader to make the association between the genesis of deposits and the geological environment in which they are found. The text of the book, together with raster images of the maps, is included on a CD-ROM. The package containing book, maps and CD-ROM is priced at $100 plus postage and packing. 7
Above: Map and magnetic image showing a strike-slip fault in the Benambra Terrane. In this instance, the sinistral Kancoona Fault has cut across the Mudgeegonga Granite, which was intruded as the faulting occurred in the Tabberabberan Orogeny.
T O O R D E R C O N TA C T:
Kim Ricketts, Minerals Business Centre Phone: (03) 9412 5103 – Fax: (03) 9412 5157 Email: [email protected]
T E C H N I C A L C O N TA C T:
Peter O’Shea, Manager Geological Mapping, Geological Survey of Victoria Phone (03) 94125093 – Fax: (03) 94125155 Email: Peter.O’[email protected]
GEOLOGY NEWS
GEOLOGY NEWS
New pointer for explorers THE TASMAN FOLD BELT SYSTEM IN VICTORIA: A new tectonic model for the Lachlan Fold Belt and some implications for exploration.
The sedimentological and structural evolution of the Melbourne Zone is anomalous with respect to the flanking structural zones, but very similar to the Mathinna Terrane of northeastern Tasmania. An older crustal block beneath the Melbourne Zone, the Selwyn Block, is discontinuously exposed along the Victorian south coast. Regional aeromagnetic data and the recognition of structures at Waratah Bay that are unambiguously Cambrian (and were therefore generated in the Delamerian/Tyennan Orogeny) show these outcrops to be the northern continuation of the Proterozoic/Cambrian crust of Tasmania (Discovery Feb 1999).
By Ross Cayley Geological Survey of Victoria
T
sition and recent radiometric dating. These are the Bindian Orogeny in the Late Silurian, the Tabberabberan Orogeny in the Middle Devonian and the Kanimblan Orogeny in the Carboniferous. Although there was widespread uplift and erosion in the Benambra Terrane following the Benambran Orogeny, palaeocurrent and facies analysis show that, unlike in the Whitelaw Terrane, none of this eroded material found its way into the Melbourne Zone, even though this was a major submarine basin at this time. This is one of the principal lines of evidence Halls Gap, in the Grampians, is one of the more spectacular examples of Victoria’s unique geology.
Cambrian/Ordovician siliciclastics and limestone cover rocks at Waratah Bay provide the vital clues for Cambrian deformation with continental provenance here, and are direct correlatives of platform sequences in western Tasmania.
he Tasman Fold Belt System in Victoria presents a fresh look at the evolution of Victorian geology. It integrates modern geological and geophysical data acquired by state and federal government agencies, as well as published academic and industry data. The book, the latest major work by the Geological Survey of Victoria, links the exposed Palaeozoic geology of Victoria with that of adjacent states as well as introducing new interpretations for the Delamerian Fold Belt, part of which lies in western Victoria. It presents an entirely new look at the Delamerian (Cambrian) and Lachlan (Ordovician to Carboniferous) fold belts, based on detailed mapping and geophysical data acquired by the GSV over the last decade. The project has developed exciting new concepts for the Lachlan Fold Belt. The Lachlan Fold Belt has traditionally been regarded as an atypical fold belt, partly because many features that are common in classical, well-studied fold belts in other parts of the world, appeared to be absent (such as craton-directed thrust belts, metamorphic hinterlands, platform successions and incorporated fragments of older basement). The extent of the monotonous Palaeozoic turbidite succession is considered unusual and its plate tectonic setting enigmatic. Two very different tectonic settings have been proposed for the Lachlan, one intraplate and the other entirely oceanic. However, the missing and anomalous elements have made it difficult to determine which of the two fits the observed data best. Mapping by the GSV in the western (Whitelaw Terrane) and eastern (Benambra Terrane) Lachlan (for example, see Discovery, November, 1999) has recognised many of the ‘missing’ elements listed above which previously made the Lachlan seem so anomalous. In addition, the crucial role of large-scale, strike-slip displacements across faults which traverse much of the Benambra Terrane and
Whitelaw Terrane that escaped deformation during the Benambran Orogeny.
give this region such a different character to its western neighbour, has now been fully realised. Armed with this new geological dataset, a tectonic model has been developed by the GSV and is presented in Chapter 5 of the book. The model involves east-west convergence in an intraplate setting for the Whitelaw Terrane and a different setting for the Benambra Terrane involving subduction/accretion followed by large-scale, southward transport involving predominantly dextral strike-slip fault displacements. This model presents one possible solution for the evolution of the extraordinarily complex Lachlan Fold Belt in southeast Australia. The evidence of large-scale strike-slip motions in the Benambra Terrane has profound implications for the geology of New South Wales and even Queensland, while the recognition of an old crustal block, the Selwyn Block, in the Whitelaw Terrane provides a long-awaited link with the older geology of western Tasmania. Deformation across the Lachlan Fold Belt began in the Late Ordovician during the Benambran Orogeny. At the western margin of the Whitelaw Terrane, the east-dipping Moyston Fault may be interpreted as a major craton-directed thrust. It was the absence of structures such as this 8
The key exposure of the unconformity between the Selwyn Block and the overlying Melbourne Zone at Waratah Bay.
which have caused severe problems in earlier tectonic interpretations. In the immediate hanging wall of the Moyston Fault is the Moornambool Metamorphic Complex. It represents deeper crustal levels exposed within a crustal-scale ‘pop-up’ structure developed along the fault. This region, although narrow, may be regarded as a metamorphic hinterland to the leading (western) edge of the Lachlan orogen. Further to the west, the Grampians allochthon may be interpreted as a foreland fold and thrust belt to the Lachlan orogen, lying paraautochthonously upon the older Delamerian Fold Belt (Discovery August 1998). Lying to the east of the Moornambool Metamorphic Complex, the Stawell and Bendigo zones are essentially a single stratigraphic and structural entity, consisting of Cambrian volcanics overlain by extensive folded turbidites. Another major sedimentological and structural break occurs along the Mount William Fault, a west-dipping thrust fault that separates the Bendigo and Melbourne zones. The Melbourne Zone is the only part of the
The Mount William Fault, at the eastern edge of the Bendigo Zone is, therefore, like the Moyston Fault, a major first-order fault verging on to older cratonic crust. The two faults impart an essential symmetry to large parts of the Lachlan Fold Belt. The regional architecture of the Stawell and Bendigo zones, sandwiched between blocks of older continental crust, is of a doubly vergent orogen, involving collision of two continental blocks with an intervening weak zone. During overthrusting of the Bendigo Zone along the Mount William Fault in the Silurian, eroded sediment was shed onto the downloaded Selwyn Block, where submarine sedimentation continued without interruption into the Early Devonian. These sediments form the Yarra Supergroup and were deposited across the entire Melbourne Zone which was a foreland-type basin. Following deformation of the Benambra Terrane during the Benambran Orogeny, structures within the terrane show evidence of a complex interplay involving episodes of compression, extension and strike-slip displacement along major north-trending faults. Several discrete orogenies can be recognised across this region on the basis of widespread unconformities, episodes of rift-basin depo-
It was at this time, in the Middle Devonian, that the Melbourne Zone rocks were deformed. With these large elements identified, much of the Lachlan needs no longer to be viewed as an atypical fold belt deformed in an uncertain plate tectonic setting. The model developed by the GSV views the Whitelaw Terrane as a passive marginal basin separating the Australian continent margin from a continental fragment (Tasmania and the Selwyn Block) throughout CambroOrdovician time. The marginal basin was subsequently closed by strong outboard convergence to form a doubly vergent, craton-directed fold and thrust belt, with resulting deposits forming a foreland-basin sediment wedge (the Melbourne Zone) upon the Selwyn Block. Large-scale, strike-slip displacements between the western and eastern Lachlan allow for the possibility of wholesale structural duplication across the Baragwanath Transform.
The Selwyn Block may also be exposed farther north, in the form of the Cambrian calc-alkaline Licola Volcanics which form a structural high, only seen in windows eroded through the Melbourne Zone along its eastern margin. The Licola Volcanics share a similar age, lithology and geochemistry to the Mount Read Volcanics of western Tasmania and may have a similar (Tyennan) deformation history. They are, therefore, prospective for gold and basemetal mineralisation.
marked another orogeny, the Tabberabberan Orogeny, whose effects are observed over much of the Lachlan Fold Belt.
This, together with the Melbourne Zone viewed as a foreland basin, explains the enormous extent of turbidites as well as similarities in deformation timing across the belt. It also accommodates fundamental differences in structural style/simple convergence versus strike-slip tectonics.
‘The discovery of an entirely new field buried under younger cover remains an attractive target for the future’
These differences have fundamental implications for the development of structurally controlled quartz-gold mineralisation in the two terranes. The gold-rich Whitelaw Terrane has a long structural history involving protracted east-west compression, followed by episodes of fault reactivation. Gold mineralisation is localised in discrete, long-lived structures and further mineralisation has often occurred during subsequent reactivation.
indicating that the Benambra Terrane cannot have been in its present position next to the Melbourne Zone in the Ordovician and Silurian, but must have lain at a considerable distance to the northwest.
A rich mining history means that the known fields are quite well understood, yet the discovery of an entirely new field buried under younger cover remains an attractive target for the future.
The arrival of the Benambra Terrane into its present position can be seen by a sudden influx of east-derived sediment, the Walhalla Group, into the Melbourne Zone in the Early Devonian. Geometric relationships of faults in the Benambra Terrane show that this arrival involved dextral, strike-slip movements that began in the Silurian, along a major structure bounding the eastern margin of the Selwyn Block. Known as the Baragwanath Transform, this fundamental fault was finally overthrust in the Middle Devonian to form the east-dipping Governor Fault, yet another large, cratondirected thrust fault. The ‘docking’ of the Benambra Terrane with the Selwyn Block (and the Whitelaw Terrane)
The pre-Permian geology maps at 1:1,000,000 scale, with cover rocks removed and the improved understanding presented in the Tasman Fold Belt System in Victoria are basic tools that will allow for the next generation of gold exploration in this region. The Benambra Terrane has an interesting history of gold production, yet generally lacks the ‘monster’ fields characteristic of the Whitelaw Terrane. Recognition of the importance of long-lived strike-slip deformation across this region helps explain the diverse nature and geometry of the goldfields here. The Tasman Fold Belt System in Victoria provides a basic framework for known fields, and will act as a springboard, pointing the explorer towards new or underestimated deposits.
9
GEOLOGY NEWS
GEOLOGY NEWS
New pointer for explorers THE TASMAN FOLD BELT SYSTEM IN VICTORIA: A new tectonic model for the Lachlan Fold Belt and some implications for exploration.
The sedimentological and structural evolution of the Melbourne Zone is anomalous with respect to the flanking structural zones, but very similar to the Mathinna Terrane of northeastern Tasmania. An older crustal block beneath the Melbourne Zone, the Selwyn Block, is discontinuously exposed along the Victorian south coast. Regional aeromagnetic data and the recognition of structures at Waratah Bay that are unambiguously Cambrian (and were therefore generated in the Delamerian/Tyennan Orogeny) show these outcrops to be the northern continuation of the Proterozoic/Cambrian crust of Tasmania (Discovery Feb 1999).
By Ross Cayley Geological Survey of Victoria
T
sition and recent radiometric dating. These are the Bindian Orogeny in the Late Silurian, the Tabberabberan Orogeny in the Middle Devonian and the Kanimblan Orogeny in the Carboniferous. Although there was widespread uplift and erosion in the Benambra Terrane following the Benambran Orogeny, palaeocurrent and facies analysis show that, unlike in the Whitelaw Terrane, none of this eroded material found its way into the Melbourne Zone, even though this was a major submarine basin at this time. This is one of the principal lines of evidence Halls Gap, in the Grampians, is one of the more spectacular examples of Victoria’s unique geology.
Cambrian/Ordovician siliciclastics and limestone cover rocks at Waratah Bay provide the vital clues for Cambrian deformation with continental provenance here, and are direct correlatives of platform sequences in western Tasmania.
he Tasman Fold Belt System in Victoria presents a fresh look at the evolution of Victorian geology. It integrates modern geological and geophysical data acquired by state and federal government agencies, as well as published academic and industry data. The book, the latest major work by the Geological Survey of Victoria, links the exposed Palaeozoic geology of Victoria with that of adjacent states as well as introducing new interpretations for the Delamerian Fold Belt, part of which lies in western Victoria. It presents an entirely new look at the Delamerian (Cambrian) and Lachlan (Ordovician to Carboniferous) fold belts, based on detailed mapping and geophysical data acquired by the GSV over the last decade. The project has developed exciting new concepts for the Lachlan Fold Belt. The Lachlan Fold Belt has traditionally been regarded as an atypical fold belt, partly because many features that are common in classical, well-studied fold belts in other parts of the world, appeared to be absent (such as craton-directed thrust belts, metamorphic hinterlands, platform successions and incorporated fragments of older basement). The extent of the monotonous Palaeozoic turbidite succession is considered unusual and its plate tectonic setting enigmatic. Two very different tectonic settings have been proposed for the Lachlan, one intraplate and the other entirely oceanic. However, the missing and anomalous elements have made it difficult to determine which of the two fits the observed data best. Mapping by the GSV in the western (Whitelaw Terrane) and eastern (Benambra Terrane) Lachlan (for example, see Discovery, November, 1999) has recognised many of the ‘missing’ elements listed above which previously made the Lachlan seem so anomalous. In addition, the crucial role of large-scale, strike-slip displacements across faults which traverse much of the Benambra Terrane and
Whitelaw Terrane that escaped deformation during the Benambran Orogeny.
give this region such a different character to its western neighbour, has now been fully realised. Armed with this new geological dataset, a tectonic model has been developed by the GSV and is presented in Chapter 5 of the book. The model involves east-west convergence in an intraplate setting for the Whitelaw Terrane and a different setting for the Benambra Terrane involving subduction/accretion followed by large-scale, southward transport involving predominantly dextral strike-slip fault displacements. This model presents one possible solution for the evolution of the extraordinarily complex Lachlan Fold Belt in southeast Australia. The evidence of large-scale strike-slip motions in the Benambra Terrane has profound implications for the geology of New South Wales and even Queensland, while the recognition of an old crustal block, the Selwyn Block, in the Whitelaw Terrane provides a long-awaited link with the older geology of western Tasmania. Deformation across the Lachlan Fold Belt began in the Late Ordovician during the Benambran Orogeny. At the western margin of the Whitelaw Terrane, the east-dipping Moyston Fault may be interpreted as a major craton-directed thrust. It was the absence of structures such as this 8
The key exposure of the unconformity between the Selwyn Block and the overlying Melbourne Zone at Waratah Bay.
which have caused severe problems in earlier tectonic interpretations. In the immediate hanging wall of the Moyston Fault is the Moornambool Metamorphic Complex. It represents deeper crustal levels exposed within a crustal-scale ‘pop-up’ structure developed along the fault. This region, although narrow, may be regarded as a metamorphic hinterland to the leading (western) edge of the Lachlan orogen. Further to the west, the Grampians allochthon may be interpreted as a foreland fold and thrust belt to the Lachlan orogen, lying paraautochthonously upon the older Delamerian Fold Belt (Discovery August 1998). Lying to the east of the Moornambool Metamorphic Complex, the Stawell and Bendigo zones are essentially a single stratigraphic and structural entity, consisting of Cambrian volcanics overlain by extensive folded turbidites. Another major sedimentological and structural break occurs along the Mount William Fault, a west-dipping thrust fault that separates the Bendigo and Melbourne zones. The Melbourne Zone is the only part of the
The Mount William Fault, at the eastern edge of the Bendigo Zone is, therefore, like the Moyston Fault, a major first-order fault verging on to older cratonic crust. The two faults impart an essential symmetry to large parts of the Lachlan Fold Belt. The regional architecture of the Stawell and Bendigo zones, sandwiched between blocks of older continental crust, is of a doubly vergent orogen, involving collision of two continental blocks with an intervening weak zone. During overthrusting of the Bendigo Zone along the Mount William Fault in the Silurian, eroded sediment was shed onto the downloaded Selwyn Block, where submarine sedimentation continued without interruption into the Early Devonian. These sediments form the Yarra Supergroup and were deposited across the entire Melbourne Zone which was a foreland-type basin. Following deformation of the Benambra Terrane during the Benambran Orogeny, structures within the terrane show evidence of a complex interplay involving episodes of compression, extension and strike-slip displacement along major north-trending faults. Several discrete orogenies can be recognised across this region on the basis of widespread unconformities, episodes of rift-basin depo-
It was at this time, in the Middle Devonian, that the Melbourne Zone rocks were deformed. With these large elements identified, much of the Lachlan needs no longer to be viewed as an atypical fold belt deformed in an uncertain plate tectonic setting. The model developed by the GSV views the Whitelaw Terrane as a passive marginal basin separating the Australian continent margin from a continental fragment (Tasmania and the Selwyn Block) throughout CambroOrdovician time. The marginal basin was subsequently closed by strong outboard convergence to form a doubly vergent, craton-directed fold and thrust belt, with resulting deposits forming a foreland-basin sediment wedge (the Melbourne Zone) upon the Selwyn Block. Large-scale, strike-slip displacements between the western and eastern Lachlan allow for the possibility of wholesale structural duplication across the Baragwanath Transform.
The Selwyn Block may also be exposed farther north, in the form of the Cambrian calc-alkaline Licola Volcanics which form a structural high, only seen in windows eroded through the Melbourne Zone along its eastern margin. The Licola Volcanics share a similar age, lithology and geochemistry to the Mount Read Volcanics of western Tasmania and may have a similar (Tyennan) deformation history. They are, therefore, prospective for gold and basemetal mineralisation.
marked another orogeny, the Tabberabberan Orogeny, whose effects are observed over much of the Lachlan Fold Belt.
This, together with the Melbourne Zone viewed as a foreland basin, explains the enormous extent of turbidites as well as similarities in deformation timing across the belt. It also accommodates fundamental differences in structural style/simple convergence versus strike-slip tectonics.
‘The discovery of an entirely new field buried under younger cover remains an attractive target for the future’
These differences have fundamental implications for the development of structurally controlled quartz-gold mineralisation in the two terranes. The gold-rich Whitelaw Terrane has a long structural history involving protracted east-west compression, followed by episodes of fault reactivation. Gold mineralisation is localised in discrete, long-lived structures and further mineralisation has often occurred during subsequent reactivation.
indicating that the Benambra Terrane cannot have been in its present position next to the Melbourne Zone in the Ordovician and Silurian, but must have lain at a considerable distance to the northwest.
A rich mining history means that the known fields are quite well understood, yet the discovery of an entirely new field buried under younger cover remains an attractive target for the future.
The arrival of the Benambra Terrane into its present position can be seen by a sudden influx of east-derived sediment, the Walhalla Group, into the Melbourne Zone in the Early Devonian. Geometric relationships of faults in the Benambra Terrane show that this arrival involved dextral, strike-slip movements that began in the Silurian, along a major structure bounding the eastern margin of the Selwyn Block. Known as the Baragwanath Transform, this fundamental fault was finally overthrust in the Middle Devonian to form the east-dipping Governor Fault, yet another large, cratondirected thrust fault. The ‘docking’ of the Benambra Terrane with the Selwyn Block (and the Whitelaw Terrane)
The pre-Permian geology maps at 1:1,000,000 scale, with cover rocks removed and the improved understanding presented in the Tasman Fold Belt System in Victoria are basic tools that will allow for the next generation of gold exploration in this region. The Benambra Terrane has an interesting history of gold production, yet generally lacks the ‘monster’ fields characteristic of the Whitelaw Terrane. Recognition of the importance of long-lived strike-slip deformation across this region helps explain the diverse nature and geometry of the goldfields here. The Tasman Fold Belt System in Victoria provides a basic framework for known fields, and will act as a springboard, pointing the explorer towards new or underestimated deposits.
9
APPOINTMENTS DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150
MINERALS AND PETROLEUM DIVISION: Fax: (03) 9412 7834 David Lea Executive Director Minerals and Petroleum Telephone: (03) 9637 8535 David Wallish Business Manager Telephone: (03) 9637 8535 MINERALS BUSINESS CENTRE: Fax: (03) 9412 5157 Kim Ricketts Client Services Officer Telephone: (03) 9412 5103 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Phil Roberts Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager - Geophysics Telephone: (03) 9412 5131 Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025 Graham Gooding Regional Manager Ballarat Telephone: (03) 53 336 521
Mining 2000 takes on Olympic proportions
HEAD OFFICE: Level 15, 8 Nicholson Street, East Melbourne Vic 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
T
he Mining 2000 conference in Melbourne in September is emerging as one of the country’s biggest Olympic year attractions with senior executives from some of the world’s biggest mining houses flying in for the event. More than 300 booths have already been sold for the associated convention exhibition, at the Melbourne Exhibition Centre, already one of the biggest events yet to have been staged at the facility. Mining 2000 will occupy all three auditoriums at the exhibition centre with the major attraction of the first day program being a session on the world’s major companies. That will be followed by a major session on the great mines of the southern hemisphere, including some of South America’s massive copper mines. The convention combines Anglogold’s famous gold jewelry collection will be a feature of Mining international keynote speakers with 2000. Picture courtesy of Anglogold Ltd. mining investment opportunities with a state-of-the-art trade exhibition. As an added attraction AngloGold, the world’s biggest gold producer, will bring to Australia, its famous collection of gold jewelery. The jewelery will be modelled at the convention dinner by a team specially assembled for the evening. Companies to be represented at the Mining 2000 convention include Canadian nickel miner, Inco Inc, Chilean state copper company, Codelco along with some of South America’s major mining houses. An invitation has also been extended to the President of Argentina, and legendary US investment guru, George Soros, to attend and speak at the event. This major event is to be held at the Melbourne Convention and Exhibition Centre between September 19 to September 22. Organiser, and Managing Director of Mining 2000, Stewart McDonald, said, “It is no coincidence that the convention has been scheduled for the first week of the Olympics. Australia will be the place to be and the event will attract a large international contingent of decision- makers on the world mining stage.” Mr McDonald said the convention was being planned as an event not to be missed. “It will become Australia’s version of the famous PDAC convention in Toronto,” he said. “It will energise Australia’s mining and exploration industry just as the PDAC convention does for North America.” The Convention will have something for everyone interested in the industry - for the companies wanting to attract the interest of investors, for bankers and financial services groups and for the enormous services and suppliers industry that supports the mining companies. Mr McDonald said, “Special events support status from SOCOG has been awarded and Victorian and Federal Government endorsement is significant.” Minerals and Petroleum Victoria is a major supporter of the event. Running concurrently with Mining 2000 will be the International Investment and Finance Review, a world class technical program accompanied by junior company presentations and an open forum Education Day.
Kourosh Mehin Acting Manager Petroleum Resources Telephone: (03) 9412 5074 Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135 Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081 Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053 Geoff Collins Manager Petroleum Projects Telephone: (03) 9637 8531 MINERALS AND PETROLEUM REGULATION: Fax: (03) 9412 5152 Rob King Manager Minerals and Petroleum Regulation Telephone: (03) 9412 5069 George Buckland Manager Minerals and Petroleum Tenements Telephone: (03) 9412 4778 INFORMATION: Janne Bonnett Manager Library Telephone: (03) 9412 5022 Fax: (03) 9412 5157
Guy Hamilton Regional Manager Bendigo Telephone: (03) 5444 6697 Chandri Nambiar Manager Marketing Development Telephone: (03) 9412 5061 Fax: (03) 9412 5155 PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156
F O R M O R E I N F O R M AT I O N C O N TA C T:
Kathy Hill Manager Petroleum Developments Telephone: (03) 9637 8530
Mining 2000 Pty Ltd: Level 2, 6 Thelma Street West Perth 6005 WA Postal Address: PO Box 607 West Perth 6872 WA Australia Tel:+61 8 9485 1166 Fax:+61 8 9481 8023 Email: [email protected]
10
New secretary for NRE
V
ictoria’s State Cabinet has appointed Chloe Munro as Secretary of the Department for Natural Resources and Environment, effective from June 9.
She replaces Mike Taylor who left earlier this year to take up a post as Secretary to the Commonwealth Department of Agriculture, Fisheries and Forestry. Ms Munro was Deputy Secretary in charge of economic and financial policy within the Victorian Department of Treasury and Finance until her new appointment. Her role spanned the full range of high level economic and financial policy advice to the Victorian Government. Ms Munro was raised in Scotland and has had a varied career in both public and private sector organisations in the United Kingdom, New Zealand and Victoria. She obtained an MA in mathematics and philosophy from Cambridge University and spent the early part of her working life in
London in the printing and financial sectors where she progressed to general management. After completing a MBA in 1987, she took up a position in the venture capital industry and then headed the corporate advisory team in an investment bank. Ms Munro was appointed to the New Zealand Treasury in 1991 to deal with the interface between public policy and commercial practice. In 1996, she was appointed Deputy Secretary in the Department of Treasury and Finance to manage Victoria’s reform program in the electricity, gas and aluminium industries and was in charge of Victoria’s energy reform and privatisation program. Ms Munro watched over transactions totalling approximately $17 billion in value.
New NRE Secretary Chloe Munro
She was also responsible for the development of a world-first natural gas spot market and a demanding program of activities to secure winter gas supplies following the September 1998 explosion and fire at Esso’s Longford gas processing plant.
Key issues in her present role include tax reform, further strengthening the State’s balance sheet, risk management in public sector reforms and identifying lasting strategies to lift incomes and job numbers in Victoria.
INVITATION TO TENDER TO EXPLORE FOR MINERALS IN THE MURRAY BASIN REGION OF VICTORIA, AUSTRALIA In accordance with Section 27 of the Mineral Resources Development Act 1990, the Victorian Minister for Energy and Resources invites tenders for the right to be the sole applicant for exploration licence/s in the Wimmera and Mallee regions of Victoria, Australia. Tenders are invited for 14 blocks in the area. In all tenders are invited over an area covering 11,762 square kilometres. Two of the blocks are in areas which were formerly part of Exploration Licence 3330 and Mining Licence 4726, held by Rio Tinto Ltd. The other 12 blocks are areas previously held by Iluka Resources under Exploration Licences 4058, 4070, 4078 and 4081. Tenders close at 2.00pm on Thursday August 10, 2000. Tenders marked tender noT00 1700 should be lodged in the Tender Box, Ground Floor, Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne, VIC 3002. For an information package or enquiries regarding the tender process contact George Buckland, Department of Natural Resources and Environment, telephone (03) 9412 4778, facsimile (03) 9412 5150.
11
APPOINTMENTS DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150
MINERALS AND PETROLEUM DIVISION: Fax: (03) 9412 7834 David Lea Executive Director Minerals and Petroleum Telephone: (03) 9637 8535 David Wallish Business Manager Telephone: (03) 9637 8535 MINERALS BUSINESS CENTRE: Fax: (03) 9412 5157 Kim Ricketts Client Services Officer Telephone: (03) 9412 5103 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Phil Roberts Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager - Geophysics Telephone: (03) 9412 5131 Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025 Graham Gooding Regional Manager Ballarat Telephone: (03) 53 336 521
Mining 2000 takes on Olympic proportions
HEAD OFFICE: Level 15, 8 Nicholson Street, East Melbourne Vic 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155
T
he Mining 2000 conference in Melbourne in September is emerging as one of the country’s biggest Olympic year attractions with senior executives from some of the world’s biggest mining houses flying in for the event. More than 300 booths have already been sold for the associated convention exhibition, at the Melbourne Exhibition Centre, already one of the biggest events yet to have been staged at the facility. Mining 2000 will occupy all three auditoriums at the exhibition centre with the major attraction of the first day program being a session on the world’s major companies. That will be followed by a major session on the great mines of the southern hemisphere, including some of South America’s massive copper mines. The convention combines Anglogold’s famous gold jewelry collection will be a feature of Mining international keynote speakers with 2000. Picture courtesy of Anglogold Ltd. mining investment opportunities with a state-of-the-art trade exhibition. As an added attraction AngloGold, the world’s biggest gold producer, will bring to Australia, its famous collection of gold jewelery. The jewelery will be modelled at the convention dinner by a team specially assembled for the evening. Companies to be represented at the Mining 2000 convention include Canadian nickel miner, Inco Inc, Chilean state copper company, Codelco along with some of South America’s major mining houses. An invitation has also been extended to the President of Argentina, and legendary US investment guru, George Soros, to attend and speak at the event. This major event is to be held at the Melbourne Convention and Exhibition Centre between September 19 to September 22. Organiser, and Managing Director of Mining 2000, Stewart McDonald, said, “It is no coincidence that the convention has been scheduled for the first week of the Olympics. Australia will be the place to be and the event will attract a large international contingent of decision- makers on the world mining stage.” Mr McDonald said the convention was being planned as an event not to be missed. “It will become Australia’s version of the famous PDAC convention in Toronto,” he said. “It will energise Australia’s mining and exploration industry just as the PDAC convention does for North America.” The Convention will have something for everyone interested in the industry - for the companies wanting to attract the interest of investors, for bankers and financial services groups and for the enormous services and suppliers industry that supports the mining companies. Mr McDonald said, “Special events support status from SOCOG has been awarded and Victorian and Federal Government endorsement is significant.” Minerals and Petroleum Victoria is a major supporter of the event. Running concurrently with Mining 2000 will be the International Investment and Finance Review, a world class technical program accompanied by junior company presentations and an open forum Education Day.
Kourosh Mehin Acting Manager Petroleum Resources Telephone: (03) 9412 5074 Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135 Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081 Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053 Geoff Collins Manager Petroleum Projects Telephone: (03) 9637 8531 MINERALS AND PETROLEUM REGULATION: Fax: (03) 9412 5152 Rob King Manager Minerals and Petroleum Regulation Telephone: (03) 9412 5069 George Buckland Manager Minerals and Petroleum Tenements Telephone: (03) 9412 4778 INFORMATION: Janne Bonnett Manager Library Telephone: (03) 9412 5022 Fax: (03) 9412 5157
Guy Hamilton Regional Manager Bendigo Telephone: (03) 5444 6697 Chandri Nambiar Manager Marketing Development Telephone: (03) 9412 5061 Fax: (03) 9412 5155 PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156
F O R M O R E I N F O R M AT I O N C O N TA C T:
Kathy Hill Manager Petroleum Developments Telephone: (03) 9637 8530
Mining 2000 Pty Ltd: Level 2, 6 Thelma Street West Perth 6005 WA Postal Address: PO Box 607 West Perth 6872 WA Australia Tel:+61 8 9485 1166 Fax:+61 8 9481 8023 Email: [email protected]
10
New secretary for NRE
V
ictoria’s State Cabinet has appointed Chloe Munro as Secretary of the Department for Natural Resources and Environment, effective from June 9.
She replaces Mike Taylor who left earlier this year to take up a post as Secretary to the Commonwealth Department of Agriculture, Fisheries and Forestry. Ms Munro was Deputy Secretary in charge of economic and financial policy within the Victorian Department of Treasury and Finance until her new appointment. Her role spanned the full range of high level economic and financial policy advice to the Victorian Government. Ms Munro was raised in Scotland and has had a varied career in both public and private sector organisations in the United Kingdom, New Zealand and Victoria. She obtained an MA in mathematics and philosophy from Cambridge University and spent the early part of her working life in
London in the printing and financial sectors where she progressed to general management. After completing a MBA in 1987, she took up a position in the venture capital industry and then headed the corporate advisory team in an investment bank. Ms Munro was appointed to the New Zealand Treasury in 1991 to deal with the interface between public policy and commercial practice. In 1996, she was appointed Deputy Secretary in the Department of Treasury and Finance to manage Victoria’s reform program in the electricity, gas and aluminium industries and was in charge of Victoria’s energy reform and privatisation program. Ms Munro watched over transactions totalling approximately $17 billion in value.
New NRE Secretary Chloe Munro
She was also responsible for the development of a world-first natural gas spot market and a demanding program of activities to secure winter gas supplies following the September 1998 explosion and fire at Esso’s Longford gas processing plant.
Key issues in her present role include tax reform, further strengthening the State’s balance sheet, risk management in public sector reforms and identifying lasting strategies to lift incomes and job numbers in Victoria.
INVITATION TO TENDER TO EXPLORE FOR MINERALS IN THE MURRAY BASIN REGION OF VICTORIA, AUSTRALIA In accordance with Section 27 of the Mineral Resources Development Act 1990, the Victorian Minister for Energy and Resources invites tenders for the right to be the sole applicant for exploration licence/s in the Wimmera and Mallee regions of Victoria, Australia. Tenders are invited for 14 blocks in the area. In all tenders are invited over an area covering 11,762 square kilometres. Two of the blocks are in areas which were formerly part of Exploration Licence 3330 and Mining Licence 4726, held by Rio Tinto Ltd. The other 12 blocks are areas previously held by Iluka Resources under Exploration Licences 4058, 4070, 4078 and 4081. Tenders close at 2.00pm on Thursday August 10, 2000. Tenders marked tender noT00 1700 should be lodged in the Tender Box, Ground Floor, Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne, VIC 3002. For an information package or enquiries regarding the tender process contact George Buckland, Department of Natural Resources and Environment, telephone (03) 9412 4778, facsimile (03) 9412 5150.
11
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Industry News VICTORIA ON SHOW Representatives from Minerals & Petroleum Victoria, the Federal Government and five other State Governments joined forces to promote Australia at the recent five–day Mining Millennium 2000 International Convention and Trade Exhibition, held in Toronto, Canada. The event is the major international minerals investment conference of the year, attracting over 6,000 delegates and more than 500 exhibitors. The Australian pavilion included displays from the commonwealth and all Australian state governments as well as several Australian companies. Victoria’s display highlighted the state’s prospectivity and quality VIMP data. The Australian delegation also met senior representatives of leading Canadian mining companies in Vancouver and Toronto, promoting Australia as a favorable location for mineral exploration investment. Toronto is recognised as the world’s leading centre for mining industry finance.
BENDIGO RAISES FUNDS Bendigo Mining NL, which expects to complete its 4.5 kilometre decline into the base of the old Bendigo gold workings, has raised another $8 million to fund additional exploration. The cash was raised through a rights issues to existing shareholders, fully underwritten by Bendigo’s major financial backer, RFC Corporate Finance Ltd. Under the share offer existing shareholders had the right to buy one new share at a price of
ten cents, for every six shares already held. Managing Director, Doug Buerger, said the additional funds would be used for exploration and to support the current program through which the company will gain access to previously unmined portions of the rich Bendigo goldfield. “We are currently some 400 metres deep in the decline on the way to a target depth of 650 metres,” Mr Buerger said. “At this depth we intend to access and bulk sample potentially mineralised ‘ribbon’ structures on the Deborah and Sheepshead lines of reef.” ‘Ribbons’ are potentially gold-enriched quartz filled structures typically occurring along the multiple lines of reef that make up the Bendigo goldfield. In recent weeks Bendigo Mining has been testing by underground drilling the next level of ribbons which are projected to continue below the bulk sample targets at approximately 800 metres below surface. It is the potential to locate major new, and previously unmined, rich gold reefs which offers the huge upside of the Bendigo Mining project. The new funds will also allow Bendigo Mining to drill test areas about 10 kilometres north of the current project and down to a depth of 1500 metres below surface. “The current exploration development is proceeding well and the company is on target to commence drill testing the first of the target ribbons in May,” Mr Buerger said. Bendigo Mining has sole title to the entire Bendigo gold field which could contain up to 10 million ounces of gold to a depth of 1500 metres.
Industry News SEDIMENTARY SHUTS AVOCA PROJECT The innovative alluvial gold processing operation near Avoca has been closed by the project operator, Sedimentary Holdings Ltd. The Amphitheatre gold project generated about 3,500 ounces a year for several years using gravity separation techniques to liberate gold from the shallow alluvial material at the Wildebeest and several other areas about 70 km north west of Ballarat. The company has commenced work on rehabilition of the site with this work expected to continue over the next two years. When this work is completed successfully, the bond held by the government will be released.
PERSEVERANCE SETTLES DISPUTE Legal action initiated by a group of residents living near the Fosterville gold mine has been settled after Perseverance Corporation Ltd agreed to buy the affected properties. The $1.5 million settlement, which includes resettlement costs for ten residents, has eliminated the damaging and costly legal action which threatened the future of the mine. The Fosterville mine operates by extracting gold from open pit mines and processing it to extract the gold. Perseverance Managing Director, John Kelly, said the settlement ensured there were no further issues between the company and the residents. “Under the settlement the company will acquire the claimants properties at values agreed by property valuers and will provide relocation expenses of $5,000 per couple,” he said. “Trees and plants for screening purposes will be provided for the eleventh property. The claimants have in turn, undertaken not to be involved in any further court proceedings or campaigns against the company with respect to any of its exploration or mining activities,” Mr Kelly said that legal costs became a major issue during the proceedings.
Roger Buckley, Manager Mineral Resources, Geological Survey of Victoria, answers delegates’ questions at the MPV stand at the Mining Millennium 2000 International Convention and Trade Exhibition.
12
Judge Rosemary Balmford said on the ninth day of the case, “If it goes on like this the costs are going to totally outweigh the benefits that anybody gets. I hope that everybody who is a party in this litigation is aware of the risk they are running in the matter of costs.” Mr Kelly said that in return for part payment of the claimants legal costs and disbursements, to be paid over 15 months, the claimants’ law firm had also agreed not to become involved in any further proceedings against Perseverance.
NEWCOMER TO VIC EXPLORATION Mining and football entrepreneur, Joseph Gutnick, has launched into a gold exploration program in central Victoria looking for giant Ballarat and Bendigo size goldfields. Mr Gutnick’s company, Johnson’s Well Mining NL, has applied for exploration tenements covering 3,700 square kilometres in central Victoria. The company said its, “decision to focus on gold exploration in this region is based on the view that Victoria, which is recognised as one of the world’s major gold provinces, had been grossly under explored in the 20th century. “Large areas in the north of Victoria are under thin cover that would have obscured gold mineralisation from 19th century prospectors. “The company recognises that the historically highly productive Ballarat and Bendigo goldfields have similar geological characteristics to the area covered by the tenement applications including anomalous gold, structural setting and geological alteration.” Johnson’s Well Mining is planning a review of existing analytical data before an exploration program involving broad-scale surface sampling. Results from the sampling survey, together with satellite and geophysical data, will define target areas for reconnaissance drilling to be followed by deeper drilling where appropriate. “The company believes that the acquisition of a tenement block of this size, within such an historically important gold province, that has seen so little modern exploration, is an important advancement for the company,” the company said. “The company is confident that the latest exploration and geophysical interpretation techniques will lead to the discovery of large gold deposits in the tenement area, similar in size to the deposits discovered in the historical Victorian goldfields.”
BEACH PETROLEUM REJOINS VICTORIAN GAS SEARCH Veteran oil and gas explorer, Beach Petroleum NL, has made western Victoria the main focus of a substantial new search for onshore natural gas reserves, joining Origin Energy in the search. During April, Beach Petroleum was granted 25 per cent of the permit Vic/099(1), located near Portland, with Origin gaining 75 per cent after the permit was offered through the competitive tendering process. “The new Portland interest further strengthens Beach’s acreage position in the Otway Basin and represents an important step in rebuilding our tenement portfolio in that region,” said Beach Chief Executive and veteran oil industry identity, Reg Nelson. Mr Nelson said exploration around Portland would be aimed principally at discovering new gas reserves for sale into the markets around western Victoria and now the Melbourne metropolitan area, made possible through the new network of gas pipelines which link all of Victoria’s once separate gas delivery systems.
DUKE TO CREATE NEW GAS MARKET Eastern Australia’s much heralded gas trading market is set to emerge once Duke Energy International’s $450 million Eastern Gas Pipeline is completed in September. Duke Energy International Commercial Marketing Manager, Asia/Pacific, Jim Myatt, told the Victorian Gas Summit in Melbourne during March that opportunities existed to create a major new market once the pipeline is complete. “We believe that a realistic expectation for NSW is that it will take three to five years for a market to occur where you have some liquidity in it for trading purposes,” he said. The 792-kilometre pipeline, which extends from the Longford gas processing plant in east Gippsland to Sydney, will link the gas reserves of Bass Strait with the under-developed NSW gas market. But the pipeline will also create the ability for gas to be traded back into Victoria through sophisticated substitution deals in which a consumer may be physically supplied from Bass Strait while being contracted with a gas supplier in NSW. The pipeline has an initial capacity of 65 petajoules rising to 110 Pj, about equal to the current size of the NSW market. 13
Joseph Gutnick; His company is confident of new gold finds in central Victoria.
The penetration of gas into NSW homes and industry is far lower than in Victoria, leaving the gas industry confident that substantial new growth in the market can be quickly achieved once competitive gas pricing starts to drive prices lower.
DATUM CHANGE Victoria is moving its geographic coordinates from the AGD66 datum to the GDA94 datum. However, the Victorian government has chosen not to require changover at a particular date. The datum change requires considerable coordination to minimise any ambiguity in data and processes across industry and government. Minerals and Petroleum Victoria MPV will be choosing a changeover date when the plans of other parts of government become clearer. One of the first steps MPV will be implementing with data, software and hardcopy products is to identify the datum explicitly. This reduces the chances of issues arising, irrespective of the changeover date. The actual boundaries of existing tenements in Victoria will remain unchanged. When submitting reports to the Department that involve positional or location data, holders of Exploration Licences and Petroleum Exploration Permits should ensure that the datum used is stated explicitly. Further information can be obtained from: Roger Buckley - for Geological Data and Mapping (9412 5025), George Buckland - for Tenements (9412 4778), Robert Harms - for Petroleum (9412 5053).
REGULAR FEATURE
REGULAR FEATURE
Industry News VICTORIA ON SHOW Representatives from Minerals & Petroleum Victoria, the Federal Government and five other State Governments joined forces to promote Australia at the recent five–day Mining Millennium 2000 International Convention and Trade Exhibition, held in Toronto, Canada. The event is the major international minerals investment conference of the year, attracting over 6,000 delegates and more than 500 exhibitors. The Australian pavilion included displays from the commonwealth and all Australian state governments as well as several Australian companies. Victoria’s display highlighted the state’s prospectivity and quality VIMP data. The Australian delegation also met senior representatives of leading Canadian mining companies in Vancouver and Toronto, promoting Australia as a favorable location for mineral exploration investment. Toronto is recognised as the world’s leading centre for mining industry finance.
BENDIGO RAISES FUNDS Bendigo Mining NL, which expects to complete its 4.5 kilometre decline into the base of the old Bendigo gold workings, has raised another $8 million to fund additional exploration. The cash was raised through a rights issues to existing shareholders, fully underwritten by Bendigo’s major financial backer, RFC Corporate Finance Ltd. Under the share offer existing shareholders had the right to buy one new share at a price of
ten cents, for every six shares already held. Managing Director, Doug Buerger, said the additional funds would be used for exploration and to support the current program through which the company will gain access to previously unmined portions of the rich Bendigo goldfield. “We are currently some 400 metres deep in the decline on the way to a target depth of 650 metres,” Mr Buerger said. “At this depth we intend to access and bulk sample potentially mineralised ‘ribbon’ structures on the Deborah and Sheepshead lines of reef.” ‘Ribbons’ are potentially gold-enriched quartz filled structures typically occurring along the multiple lines of reef that make up the Bendigo goldfield. In recent weeks Bendigo Mining has been testing by underground drilling the next level of ribbons which are projected to continue below the bulk sample targets at approximately 800 metres below surface. It is the potential to locate major new, and previously unmined, rich gold reefs which offers the huge upside of the Bendigo Mining project. The new funds will also allow Bendigo Mining to drill test areas about 10 kilometres north of the current project and down to a depth of 1500 metres below surface. “The current exploration development is proceeding well and the company is on target to commence drill testing the first of the target ribbons in May,” Mr Buerger said. Bendigo Mining has sole title to the entire Bendigo gold field which could contain up to 10 million ounces of gold to a depth of 1500 metres.
Industry News SEDIMENTARY SHUTS AVOCA PROJECT The innovative alluvial gold processing operation near Avoca has been closed by the project operator, Sedimentary Holdings Ltd. The Amphitheatre gold project generated about 3,500 ounces a year for several years using gravity separation techniques to liberate gold from the shallow alluvial material at the Wildebeest and several other areas about 70 km north west of Ballarat. The company has commenced work on rehabilition of the site with this work expected to continue over the next two years. When this work is completed successfully, the bond held by the government will be released.
PERSEVERANCE SETTLES DISPUTE Legal action initiated by a group of residents living near the Fosterville gold mine has been settled after Perseverance Corporation Ltd agreed to buy the affected properties. The $1.5 million settlement, which includes resettlement costs for ten residents, has eliminated the damaging and costly legal action which threatened the future of the mine. The Fosterville mine operates by extracting gold from open pit mines and processing it to extract the gold. Perseverance Managing Director, John Kelly, said the settlement ensured there were no further issues between the company and the residents. “Under the settlement the company will acquire the claimants properties at values agreed by property valuers and will provide relocation expenses of $5,000 per couple,” he said. “Trees and plants for screening purposes will be provided for the eleventh property. The claimants have in turn, undertaken not to be involved in any further court proceedings or campaigns against the company with respect to any of its exploration or mining activities,” Mr Kelly said that legal costs became a major issue during the proceedings.
Roger Buckley, Manager Mineral Resources, Geological Survey of Victoria, answers delegates’ questions at the MPV stand at the Mining Millennium 2000 International Convention and Trade Exhibition.
12
Judge Rosemary Balmford said on the ninth day of the case, “If it goes on like this the costs are going to totally outweigh the benefits that anybody gets. I hope that everybody who is a party in this litigation is aware of the risk they are running in the matter of costs.” Mr Kelly said that in return for part payment of the claimants legal costs and disbursements, to be paid over 15 months, the claimants’ law firm had also agreed not to become involved in any further proceedings against Perseverance.
NEWCOMER TO VIC EXPLORATION Mining and football entrepreneur, Joseph Gutnick, has launched into a gold exploration program in central Victoria looking for giant Ballarat and Bendigo size goldfields. Mr Gutnick’s company, Johnson’s Well Mining NL, has applied for exploration tenements covering 3,700 square kilometres in central Victoria. The company said its, “decision to focus on gold exploration in this region is based on the view that Victoria, which is recognised as one of the world’s major gold provinces, had been grossly under explored in the 20th century. “Large areas in the north of Victoria are under thin cover that would have obscured gold mineralisation from 19th century prospectors. “The company recognises that the historically highly productive Ballarat and Bendigo goldfields have similar geological characteristics to the area covered by the tenement applications including anomalous gold, structural setting and geological alteration.” Johnson’s Well Mining is planning a review of existing analytical data before an exploration program involving broad-scale surface sampling. Results from the sampling survey, together with satellite and geophysical data, will define target areas for reconnaissance drilling to be followed by deeper drilling where appropriate. “The company believes that the acquisition of a tenement block of this size, within such an historically important gold province, that has seen so little modern exploration, is an important advancement for the company,” the company said. “The company is confident that the latest exploration and geophysical interpretation techniques will lead to the discovery of large gold deposits in the tenement area, similar in size to the deposits discovered in the historical Victorian goldfields.”
BEACH PETROLEUM REJOINS VICTORIAN GAS SEARCH Veteran oil and gas explorer, Beach Petroleum NL, has made western Victoria the main focus of a substantial new search for onshore natural gas reserves, joining Origin Energy in the search. During April, Beach Petroleum was granted 25 per cent of the permit Vic/099(1), located near Portland, with Origin gaining 75 per cent after the permit was offered through the competitive tendering process. “The new Portland interest further strengthens Beach’s acreage position in the Otway Basin and represents an important step in rebuilding our tenement portfolio in that region,” said Beach Chief Executive and veteran oil industry identity, Reg Nelson. Mr Nelson said exploration around Portland would be aimed principally at discovering new gas reserves for sale into the markets around western Victoria and now the Melbourne metropolitan area, made possible through the new network of gas pipelines which link all of Victoria’s once separate gas delivery systems.
DUKE TO CREATE NEW GAS MARKET Eastern Australia’s much heralded gas trading market is set to emerge once Duke Energy International’s $450 million Eastern Gas Pipeline is completed in September. Duke Energy International Commercial Marketing Manager, Asia/Pacific, Jim Myatt, told the Victorian Gas Summit in Melbourne during March that opportunities existed to create a major new market once the pipeline is complete. “We believe that a realistic expectation for NSW is that it will take three to five years for a market to occur where you have some liquidity in it for trading purposes,” he said. The 792-kilometre pipeline, which extends from the Longford gas processing plant in east Gippsland to Sydney, will link the gas reserves of Bass Strait with the under-developed NSW gas market. But the pipeline will also create the ability for gas to be traded back into Victoria through sophisticated substitution deals in which a consumer may be physically supplied from Bass Strait while being contracted with a gas supplier in NSW. The pipeline has an initial capacity of 65 petajoules rising to 110 Pj, about equal to the current size of the NSW market. 13
Joseph Gutnick; His company is confident of new gold finds in central Victoria.
The penetration of gas into NSW homes and industry is far lower than in Victoria, leaving the gas industry confident that substantial new growth in the market can be quickly achieved once competitive gas pricing starts to drive prices lower.
DATUM CHANGE Victoria is moving its geographic coordinates from the AGD66 datum to the GDA94 datum. However, the Victorian government has chosen not to require changover at a particular date. The datum change requires considerable coordination to minimise any ambiguity in data and processes across industry and government. Minerals and Petroleum Victoria MPV will be choosing a changeover date when the plans of other parts of government become clearer. One of the first steps MPV will be implementing with data, software and hardcopy products is to identify the datum explicitly. This reduces the chances of issues arising, irrespective of the changeover date. The actual boundaries of existing tenements in Victoria will remain unchanged. When submitting reports to the Department that involve positional or location data, holders of Exploration Licences and Petroleum Exploration Permits should ensure that the datum used is stated explicitly. Further information can be obtained from: Roger Buckley - for Geological Data and Mapping (9412 5025), George Buckland - for Tenements (9412 4778), Robert Harms - for Petroleum (9412 5053).
VICTORIAN RESOURCES Mildura
Victorian resources
Minerals
O
23
General area of major exploration project
NO COMPANY
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
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
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
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
Area available for exploration application Areas becoming available for exploration
P
(Please see moratorium list for available dates)
Area currently under exploration (licence tenure or application) Area unavailable for exploration (National Parks etc) Area under exemption
U 23
46
Swan Hill
47
MAJOR EXPLORATION PROJECTS
EXPLORATION STATUS
MAJOR MINES/DEVELOPMENTS 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
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
the WORLD is yours
19
GOLD A Stawell Gold Mines B Sedimentary Holdings C Reef Mining D Goldminco E Ballarat Goldfields F Alliance Gold G Bendigo Mining H Tech-Sol Resources Pty Ltd J Perseverance Exploration K Australian Gold Devel. L Perseverance Mining M Duketon Goldfields N Mount Conqueror Minerals NON-METALLIC MINERALS O Victorian Gypsum P RZM & Aberfoyle Q Rio Tinto R Kaolin Aust S Osterfield T ACI U Iluka Midwest Limited BROWN COAL
Echuca Shepparton
11
Wangaratta
T
31 10
Horsham Q
50 22
6 49
C
34 35
A 12
25
Ararat
38
B
5
41 L 7
F
44
Benambra
M
Mansfield
32
8
27
21 36
9
26
45
28
37
Ballarat
E 4
D
17 N
H 24
R
Maddingley
16
Wood's Point
13
20 1
MELBOURNE
Orbost
15
Werribee
Bairnsdale
Walhalla
Geelong
Lakes Entrance Yallourn
Alcoa
Portland
29
14
30
18
J
S
39 3
2 42
Hamilton
G
K
48
Stawell
33
Bendigo
40
Hazelwood
Loy Yang
Warrnambool
43
MILDURA
Oil & Gas
You’ll find a world of information on Victorian
Production Licences Retention Leases Current Permits 1999 Acreage Re-Release Proposed 2000 Acreage Release Acreage under application
mining, geology and petroleum in the Department of Natural Resources’ Minerals and Petroleum Reference
SWAN HILL
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
Gas Pipeline Oil & Other Pipeline Proposed Pipeline Under Construction Gas Field Oil Field
COBRAM
located next to the Minerals Business Centre.
RUTHERGLEN WODONGA CHILTERN
ECHUCA
WANGARATTA
SHEPPARTON
MURRAY BASIN
special collections include:
BENALLA
HORSHAM
EUROA
BENDIGO
SEYMOUR
CARISBROOK
• Expired tenement reports on microfiche (and hard copy)
KYNET ON
• 5000+ Geological Survey of Victoria Unpublished Reports • Departmental publications (old Mines Department records and reports dating from 1851)
ARARAT WALLAN BALLARAT
PEP1 19
MELBOURNE
• Victorian published geological maps, both current and historical • Underground mine plans on microfiche
HAMILTON
PEP151
PEP150
OTWAY BASIN
• 1600+ B&W historical Victorian mining photographs
PEP101
POR TLAND
PEP136 MAFFRA
LARA
PEP152
(b) COBDEN PEP132(a) PEP153
PEP PEP133(b) 133(a) COLAC
GEELONG
LONGFORD
SALE
MOE
PEP135 ORBOST BAIRNSDALE LAKES ENTRANCE V00-5 VIC/ P38 VIC/ VIC/P40 P19
VIC/P41 200m
PEP133(c) PEP131
PEP137 VIC/P39
V00-1 PEP138
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]
14
VIC/P35 200 m
PEP133(d)
VIC/P44
V00-4
VIC/ RL8
VIC/P36
V00-2 VIC/ RL7
VIC/P42
V99-2
V99-1
VIC/P34 V00-3
VIC/P43
BASS BASIN
15
GIPPSLAND BASIN
VICTORIAN RESOURCES Mildura
Victorian resources
Minerals
O
23
General area of major exploration project
NO COMPANY
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
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
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
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
Area available for exploration application Areas becoming available for exploration
P
(Please see moratorium list for available dates)
Area currently under exploration (licence tenure or application) Area unavailable for exploration (National Parks etc) Area under exemption
U 23
46
Swan Hill
47
MAJOR EXPLORATION PROJECTS
EXPLORATION STATUS
MAJOR MINES/DEVELOPMENTS 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
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
the WORLD is yours
19
GOLD A Stawell Gold Mines B Sedimentary Holdings C Reef Mining D Goldminco E Ballarat Goldfields F Alliance Gold G Bendigo Mining H Tech-Sol Resources Pty Ltd J Perseverance Exploration K Australian Gold Devel. L Perseverance Mining M Duketon Goldfields N Mount Conqueror Minerals NON-METALLIC MINERALS O Victorian Gypsum P RZM & Aberfoyle Q Rio Tinto R Kaolin Aust S Osterfield T ACI U Iluka Midwest Limited BROWN COAL
Echuca Shepparton
11
Wangaratta
T
31 10
Horsham Q
50 22
6 49
C
34 35
A 12
25
Ararat
38
B
5
41 L 7
F
44
Benambra
M
Mansfield
32
8
27
21 36
9
26
45
28
37
Ballarat
E 4
D
17 N
H 24
R
Maddingley
16
Wood's Point
13
20 1
MELBOURNE
Orbost
15
Werribee
Bairnsdale
Walhalla
Geelong
Lakes Entrance Yallourn
Alcoa
Portland
29
14
30
18
J
S
39 3
2 42
Hamilton
G
K
48
Stawell
33
Bendigo
40
Hazelwood
Loy Yang
Warrnambool
43
MILDURA
Oil & Gas
You’ll find a world of information on Victorian
Production Licences Retention Leases Current Permits 1999 Acreage Re-Release Proposed 2000 Acreage Release Acreage under application
mining, geology and petroleum in the Department of Natural Resources’ Minerals and Petroleum Reference
SWAN HILL
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
Gas Pipeline Oil & Other Pipeline Proposed Pipeline Under Construction Gas Field Oil Field
COBRAM
located next to the Minerals Business Centre.
RUTHERGLEN WODONGA CHILTERN
ECHUCA
WANGARATTA
SHEPPARTON
MURRAY BASIN
special collections include:
BENALLA
HORSHAM
EUROA
BENDIGO
SEYMOUR
CARISBROOK
• Expired tenement reports on microfiche (and hard copy)
KYNET ON
• 5000+ Geological Survey of Victoria Unpublished Reports • Departmental publications (old Mines Department records and reports dating from 1851)
ARARAT WALLAN BALLARAT
PEP1 19
MELBOURNE
• Victorian published geological maps, both current and historical • Underground mine plans on microfiche
HAMILTON
PEP151
PEP150
OTWAY BASIN
• 1600+ B&W historical Victorian mining photographs
PEP101
POR TLAND
PEP136 MAFFRA
LARA
PEP152
(b) COBDEN PEP132(a) PEP153
PEP PEP133(b) 133(a) COLAC
GEELONG
LONGFORD
SALE
MOE
PEP135 ORBOST BAIRNSDALE LAKES ENTRANCE V00-5 VIC/ P38 VIC/ VIC/P40 P19
VIC/P41 200m
PEP133(c) PEP131
PEP137 VIC/P39
V00-1 PEP138
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]
14
VIC/P35 200 m
PEP133(d)
VIC/P44
V00-4
VIC/ RL8
VIC/P36
V00-2 VIC/ RL7
VIC/P42
V99-2
V99-1
VIC/P34 V00-3
VIC/P43
BASS BASIN
15
GIPPSLAND BASIN
LICENCE REVIEW
OIL
Mineral Licences
EXPLORATION LICENCES GRANTED TITLE NO.
STATUS
EVENT
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4293
CURRENT
GRANT
OUYEN
ILUKA MIDWEST LIMITED
14/01/2000
24/01/2002
EL 4442
CURRENT
GRANT
NOWINGI
ILUKARESOURCES LIMITED
24/01/2000
24/01/2002
EL 4444
CURRENT
GRANT
NOWINGI
ILUKA RESOURCES LIMITED
24/01/2000
24/01/2002
EL 4447
CURRENT
GRANT
MITIAMO
KENLEY INVESTMENTS PTY LTD
28/01/2000
28/01/2002
EL 4446
CANAM
GRANT
HORSHAM
FORRESTANIA GOLD NL
17/02/2000
17/02/2000
EL 4454
CURRENT
GRANT
BALLARAT
ALLEGIANCE EXPLORATION PTY LTD
22/02/2000
22/02/2002
CURRENT
GRANT
CRESWICK
ALLEGIANCE EXPLORATION PTY LTD
07/03/2000
07/03/2002
EL 4440
CURRENT
GRANT
CRESWICK
ALLEGIANCE EXPLORATION PTY LTD
07/03/2000
07/03/2002
EL 4458
CURRENT
GRANT
EDENHOPE
BASIN MINERALS NL
17/03/2000
16/03/2002
TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4226
SURR
CASTLEMAINE
MOUNT ROMMEL MINING PTY LTD
14/01/2000
14/01/2000
EL 4393
17/01/2000
17/01/2000
SURR
CRESWICK
DIAMETRIC RESOURCES (AUSTRALIA) PTY LTD
EL 4394
SURR
CRESWICK
MOUNT ROMMEL MINING PTY LTD
17/01/2000
EL 4251
EXPIRED
COLAC
OKANAGAN VENTURES PTY LTD
04/02/2000
04/02/2000
EL 3746
SURR
YEA
RANGE RIVER GOLD NL
17/02/2000
17/02/2000
EL 3747
SURR
WHITFIELD
RANGE RIVER GOLD NL
17/02/2000
17/02/2000
EL 3962
SURR
BEAUFORT
RANGE RIVER GOLD NL
17/02/2000
17/02/2000
EL 3306
SURR
KERANG
RENISON LTD
22/02/2000
22/02/2000
EL 3680
SURR
BUFFALO
SOUTHERN CROSS EXPLORATION NL
28/02/2000
28/02/2000
EL 3537
EXPIRED
ORBOST
MADDINGLEY BROWN COAL PTY LTD
16/03/2000
16/03/2000
EL 3729
EXPIRED
CASTLEMAINE
BLACKWOOD GOLD MINES NL
23/03/2000
23/03/2000
EL 3728
EXPIRED
BACCHUS MARSH
DUNCAN R MCLEAN
24/03/2000
24/03/2000
17/01/2000
MINING LICENCES GRANTED STATUS
EVENT
MAP
PRIMARY OWNER
D
evelopment of the Kipper gas field in Bass Strait has moved significantly closer after a series of corporate moves which have given Australia’s biggest gas company, Woodside Petroleum Ltd, the largest single interest in the field. In an associated deal, Woodside also has become 100 per cent owner of the nearby Basker, Manta and Gummy fields. A project development to bring the gas ashore is now being developed. The three fields, located in permit area Vic/P19, were previously controlled by The Shell Company of Australia.
EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED
TITLE NO.
EVENT DATE
EXPIRY DATE
MIN 5281
CURRENT
GRANT
HOPETOUN
GYPSUM AUSTRALIA PTY LTD
14/01/2000
14/01/2010
MIN 5194
CURRENT
GRANT
BACCHUS MARSH
DUNCAN R MCLEAN
27/01/2000
27/01/2005
MIN 5284
CURRENT
GRANT
BACCHUS MARSH
WAYNE E HORNE
08/03/2000
08/03/2005
MIN 5221
CURRENT
GRANT
DUNOLLY
HERBERT C BRADLEY
17/03/2000
16/03/2005
MIN 5289
CURRENT
GRANT
HOPETOUN
TIM G CONWAY
31/03/2000
31/03/2010
MIN 5290
CURRENT
GRANT
WEDDERBURN
T/A THE MAGPIE SYNDICATE
31/03/2000
31/03/2010
Woodside’s Director, Australian Gas, Jeff Schneider, said Woodside would pay $10 million for Shell’s 94.12 per cent interest to give the company full ownership. Woodside already owned 5.88 per cent of the permit. “The acquisition is another important step in Woodside’s strategy to build a new area of business for the company in eastern Australia,” Mr Schneider said. “It is also consistent with our strategy to bring greater diversity and security of gas supply to Victoria and to provide greater choice for gas customers.”
Woodside has long been keen to establish gas production in Victoria to expand its Australian gas production network right around the country.
The Kipper field alone
It already supplies the bulk of the Western Australian market through its gas production from the North West Shelf project.
all of Victoria’s needs for at
Mr Schneider said Woodside was closely studying development options for Kipper as well as Basker, Manta and Gummy adding that a development proposal would be considered late this year or early 2001. The Kipper field alone contains enough gas to supply all of Victoria’s needs for at least two years. But as a supplementary source of supply Kipper would last far longer, probably meeting some base load customers and fulfilling Victoria’s peak gas requirements. The option also remains open for the company to sell gas interstate utilising the Duke Energy Longford-to-NSW gas pipeline now under construction. As a major part of its east coast gas strategy Woodside has also established a new energy retailing company, Pulse Energy. Created from a joint venture between
He said Woodside was exploring opportunities to bring the fields into production as soon as possible. Potential gas reserves in Basker, Manta, Gummy are estimated at 260 billion cubic feet, with probable oil reserves estimated at 26 million barrels. The fields are about 65 km from the Victorian coast.
MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
MIN 5245
SURR
NAGAMBIE
BRUCE MCLENNAN T/A MINING TRUST
14/01/2000
14/01/2000
MIN 4889
SURR
CASTLEMAINE
ACTION MINING (AUSTRALIA) PTY LTD
27/01/2000
27/01/2000
MIN 4617
EXPIRED
BENDIGO
CAFIS PTY LTD
28/01/2000
28/01/2000
MIN 5112
SURR
BALLARAT
M COX TRADING AS TRI-MINING
28/02/2000
28/02/2000
MIN 4720
SURR
MIN 5204
SURR
BALLARAT
M COX TRADING AS TRI-MINING
28/02/2000
28/02/2000
MIN 4527
CANC
BENDIGO
RANGER GOLD PTY LTD
30/03/2000
30/03/2000
MIN 4351
CANC
TALLANGATTA
NORTHERN COPPER PTY LTD
30/03/2000
30/03/2000
MIN 5033
CANC
ALBURY
DAVID C N ORSON
30/03/2000
30/03/2000
MIN 4964
CANC
HEATHCOTE
REDCASTLE GOLD PTY LTD
30/03/2000
30/03/2000
ML 1452
CANC
CRESWICK
WESLEY PECK
17/01/2000
17/01/2000
HEATHCOTE
WESLEY TYSON
ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED
16
DEVELOPMENTS
Woodside buys more of Bass Strait
January to March 2000
EL 4453
/GAS
28/02/2000
28/02/2000
Woodside, in association with Santos Ltd, has also jointly acquired Shell Australia’s Bass Strait interests in permit Vic/RL2 which contains a large part of the Kipper field. About half of the Kipper field lies in an adjacent permit wholly owned by Bass Strait producers Esso and BHP. Mr Schneider said Woodside and Santos had paid $53.5 million for Shell’s 34.54 per cent stake in Vic RL2 with Woodside’s share of the total coming to $42.6 million. The Woodside/Santos remains subject to preemptive rights owned by Esso and BHP under the Vic/RL2 operating agreement. 17
contains enough gas to supply
least two years. Woodside, Shell, United Energy and Ikon Energy, Pulse Energy is designed to tap the newly created competitive market for gas and electricity supplies to build a major customer base. Pulse will have a major advantage by being able to offer consumers a choice of gas suppliers from the traditional Bass Strait producers to newcomers such as Woodside once Kipper is developed to companies like Boral and Santos through their gas production on Victoria’s west coast. 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 Tel: (08) 9224 4281
LICENCE REVIEW
OIL
Mineral Licences
EXPLORATION LICENCES GRANTED TITLE NO.
STATUS
EVENT
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4293
CURRENT
GRANT
OUYEN
ILUKA MIDWEST LIMITED
14/01/2000
24/01/2002
EL 4442
CURRENT
GRANT
NOWINGI
ILUKARESOURCES LIMITED
24/01/2000
24/01/2002
EL 4444
CURRENT
GRANT
NOWINGI
ILUKA RESOURCES LIMITED
24/01/2000
24/01/2002
EL 4447
CURRENT
GRANT
MITIAMO
KENLEY INVESTMENTS PTY LTD
28/01/2000
28/01/2002
EL 4446
CANAM
GRANT
HORSHAM
FORRESTANIA GOLD NL
17/02/2000
17/02/2000
EL 4454
CURRENT
GRANT
BALLARAT
ALLEGIANCE EXPLORATION PTY LTD
22/02/2000
22/02/2002
CURRENT
GRANT
CRESWICK
ALLEGIANCE EXPLORATION PTY LTD
07/03/2000
07/03/2002
EL 4440
CURRENT
GRANT
CRESWICK
ALLEGIANCE EXPLORATION PTY LTD
07/03/2000
07/03/2002
EL 4458
CURRENT
GRANT
EDENHOPE
BASIN MINERALS NL
17/03/2000
16/03/2002
TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
EL 4226
SURR
CASTLEMAINE
MOUNT ROMMEL MINING PTY LTD
14/01/2000
14/01/2000
EL 4393
17/01/2000
17/01/2000
SURR
CRESWICK
DIAMETRIC RESOURCES (AUSTRALIA) PTY LTD
EL 4394
SURR
CRESWICK
MOUNT ROMMEL MINING PTY LTD
17/01/2000
EL 4251
EXPIRED
COLAC
OKANAGAN VENTURES PTY LTD
04/02/2000
04/02/2000
EL 3746
SURR
YEA
RANGE RIVER GOLD NL
17/02/2000
17/02/2000
EL 3747
SURR
WHITFIELD
RANGE RIVER GOLD NL
17/02/2000
17/02/2000
EL 3962
SURR
BEAUFORT
RANGE RIVER GOLD NL
17/02/2000
17/02/2000
EL 3306
SURR
KERANG
RENISON LTD
22/02/2000
22/02/2000
EL 3680
SURR
BUFFALO
SOUTHERN CROSS EXPLORATION NL
28/02/2000
28/02/2000
EL 3537
EXPIRED
ORBOST
MADDINGLEY BROWN COAL PTY LTD
16/03/2000
16/03/2000
EL 3729
EXPIRED
CASTLEMAINE
BLACKWOOD GOLD MINES NL
23/03/2000
23/03/2000
EL 3728
EXPIRED
BACCHUS MARSH
DUNCAN R MCLEAN
24/03/2000
24/03/2000
17/01/2000
MINING LICENCES GRANTED STATUS
EVENT
MAP
PRIMARY OWNER
D
evelopment of the Kipper gas field in Bass Strait has moved significantly closer after a series of corporate moves which have given Australia’s biggest gas company, Woodside Petroleum Ltd, the largest single interest in the field. In an associated deal, Woodside also has become 100 per cent owner of the nearby Basker, Manta and Gummy fields. A project development to bring the gas ashore is now being developed. The three fields, located in permit area Vic/P19, were previously controlled by The Shell Company of Australia.
EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED
TITLE NO.
EVENT DATE
EXPIRY DATE
MIN 5281
CURRENT
GRANT
HOPETOUN
GYPSUM AUSTRALIA PTY LTD
14/01/2000
14/01/2010
MIN 5194
CURRENT
GRANT
BACCHUS MARSH
DUNCAN R MCLEAN
27/01/2000
27/01/2005
MIN 5284
CURRENT
GRANT
BACCHUS MARSH
WAYNE E HORNE
08/03/2000
08/03/2005
MIN 5221
CURRENT
GRANT
DUNOLLY
HERBERT C BRADLEY
17/03/2000
16/03/2005
MIN 5289
CURRENT
GRANT
HOPETOUN
TIM G CONWAY
31/03/2000
31/03/2010
MIN 5290
CURRENT
GRANT
WEDDERBURN
T/A THE MAGPIE SYNDICATE
31/03/2000
31/03/2010
Woodside’s Director, Australian Gas, Jeff Schneider, said Woodside would pay $10 million for Shell’s 94.12 per cent interest to give the company full ownership. Woodside already owned 5.88 per cent of the permit. “The acquisition is another important step in Woodside’s strategy to build a new area of business for the company in eastern Australia,” Mr Schneider said. “It is also consistent with our strategy to bring greater diversity and security of gas supply to Victoria and to provide greater choice for gas customers.”
Woodside has long been keen to establish gas production in Victoria to expand its Australian gas production network right around the country.
The Kipper field alone
It already supplies the bulk of the Western Australian market through its gas production from the North West Shelf project.
all of Victoria’s needs for at
Mr Schneider said Woodside was closely studying development options for Kipper as well as Basker, Manta and Gummy adding that a development proposal would be considered late this year or early 2001. The Kipper field alone contains enough gas to supply all of Victoria’s needs for at least two years. But as a supplementary source of supply Kipper would last far longer, probably meeting some base load customers and fulfilling Victoria’s peak gas requirements. The option also remains open for the company to sell gas interstate utilising the Duke Energy Longford-to-NSW gas pipeline now under construction. As a major part of its east coast gas strategy Woodside has also established a new energy retailing company, Pulse Energy. Created from a joint venture between
He said Woodside was exploring opportunities to bring the fields into production as soon as possible. Potential gas reserves in Basker, Manta, Gummy are estimated at 260 billion cubic feet, with probable oil reserves estimated at 26 million barrels. The fields are about 65 km from the Victorian coast.
MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED TITLE NO.
STATUS
MAP
PRIMARY OWNER
EVENT DATE
EXPIRY DATE
MIN 5245
SURR
NAGAMBIE
BRUCE MCLENNAN T/A MINING TRUST
14/01/2000
14/01/2000
MIN 4889
SURR
CASTLEMAINE
ACTION MINING (AUSTRALIA) PTY LTD
27/01/2000
27/01/2000
MIN 4617
EXPIRED
BENDIGO
CAFIS PTY LTD
28/01/2000
28/01/2000
MIN 5112
SURR
BALLARAT
M COX TRADING AS TRI-MINING
28/02/2000
28/02/2000
MIN 4720
SURR
MIN 5204
SURR
BALLARAT
M COX TRADING AS TRI-MINING
28/02/2000
28/02/2000
MIN 4527
CANC
BENDIGO
RANGER GOLD PTY LTD
30/03/2000
30/03/2000
MIN 4351
CANC
TALLANGATTA
NORTHERN COPPER PTY LTD
30/03/2000
30/03/2000
MIN 5033
CANC
ALBURY
DAVID C N ORSON
30/03/2000
30/03/2000
MIN 4964
CANC
HEATHCOTE
REDCASTLE GOLD PTY LTD
30/03/2000
30/03/2000
ML 1452
CANC
CRESWICK
WESLEY PECK
17/01/2000
17/01/2000
HEATHCOTE
WESLEY TYSON
ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED
16
DEVELOPMENTS
Woodside buys more of Bass Strait
January to March 2000
EL 4453
/GAS
28/02/2000
28/02/2000
Woodside, in association with Santos Ltd, has also jointly acquired Shell Australia’s Bass Strait interests in permit Vic/RL2 which contains a large part of the Kipper field. About half of the Kipper field lies in an adjacent permit wholly owned by Bass Strait producers Esso and BHP. Mr Schneider said Woodside and Santos had paid $53.5 million for Shell’s 34.54 per cent stake in Vic RL2 with Woodside’s share of the total coming to $42.6 million. The Woodside/Santos remains subject to preemptive rights owned by Esso and BHP under the Vic/RL2 operating agreement. 17
contains enough gas to supply
least two years. Woodside, Shell, United Energy and Ikon Energy, Pulse Energy is designed to tap the newly created competitive market for gas and electricity supplies to build a major customer base. Pulse will have a major advantage by being able to offer consumers a choice of gas suppliers from the traditional Bass Strait producers to newcomers such as Woodside once Kipper is developed to companies like Boral and Santos through their gas production on Victoria’s west coast. 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 Tel: (08) 9224 4281
OIL
/GAS
NEWS
REGULAR FEATURE
New acreage release to accelerate exploration by Dr Mike Woollands, Manager Basin Studies
T
he pace of offshore oil and gas exploration in Victoria will be accelerated through the release of two blocks in the Otway Basin and three in the Gippsland Basin.
FIG.1 OTWAY BASIN 2000 RECOMMENDED ACREAGE RELEASE AREAS
The area is on the main migration pathway for hydrocarbons generated in the basin, as evidenced by the Patricia-Baleen gas field.
The blocks are part of the latest acreage gazettal unveiled at this year’s Australian Petroleum Production and Exploration Association conference in Brisbane during May.
The block’s potential has been documented by MPV (VIMP Report No. 56) and further understanding is being developed through integration of the new aeromagnetic data with existing seismic mapping.
The acreage, released under the terms of the Commonwealth Petroleum (Submerged Lands) Act 1967 forms part of a national release of exploration acreage.
The remaining two blocks are in the southeastern deep-water part of the basin covering the Bass Canyon. Together the two areas cover 5238 km2 and water depths range from 600 m (210 m in the northern block) through 3000 m.
Otway Basin Areas (Fig. 1) The western block, about 50 km South West of Portland covers 1868 square kilometres and lies mostly in less than 200 metres of water, increasing to 500 m at its southwestern edge. The area overlies the Late Cretaceous age Voluta Trough. Four wells have been drilled in the block in the past, Voluta-1, Discovery Bay-1, Bridgewater Bay-1 and Normanby-1.
The areas are covered by widely spaced Bureau of Mineral Resources seismic lines, the tails of shallow water lines and by a new regional grid acquired for MPV by Seismic Australia (GDW99 Survey).
FIG.2 GIPPSLAND BASIN 2000 RECOMMENDED ACREAGE RELEASE AREAS
All four targetted Late Cretaceous tilted faultblocks, with Normanby-1 encountering weak gas shows in the basalt Waarre Formation. The other wells were dry, being either off structure or with the target horizons incorrectly selected.
It covers 1874 km2 and lies at the edge of the continental shelf in 50 m to 1000 m of water, although 80 per cent is less than 200 m deep.
The results are being documented in VIMP Report No 65, which describes the geological framework, depositional history and structure of the areas.
The area straddles the WNW-ESE trending Mussel Fault Zone, which separates the Voluta Trough from the Mussel Platform.
Triton-1 tested a Waarre Formation tilted fault block prospect, which proved water-wet and tight. Despite these results, the two areas are considered to have significant potential. Previous failures can be attributed to poor seismic data and, as the hydrocarbon discoveries at La Bella and Minerva attest, an active petroleum system does exist offshore, sourced from the gas-prone Early Cretaceous age Eumeralla Formation which underlies the blocks. A re-evaluation has been carried out by Minerals and Petroleum Victoria to identify
The northern area also has 1 to 3 km spaced seismic data in the shallower water parts. Only two wells have been drilled in the latter area; both were dry, penetrating only the top of the Latrobe Group and providing little information on deeper prospective sections. The Basin Studies Group of MPV has carried out a regional assessment of the area’s hydrocarbon prospectivity, based on an integration of open file and commercially available seismic data (including GDW99 data) and new AGSO aeromagnetic data.
The eastern Otway Basin block is situated approximately 90 km SE of Portland.
Only two wells have been drilled, Nautilus-1 and Triton-1, both proving dry. Nautilus-1 tested a Tertiary ‘clastic-wedge’ play, but the target had no reservoir.
leads associated with Top and intra-Latrobe Group, Golden Beach and Emperor Subgroup targets.
A tectonic elements map and a series of facies maps are included which describe key elements of the deep-water petroleum systems. play fairways within these blocks (VIMP Report No. 66). The main play type in the western block is Late Cretaceous tilted fault blocks, as at La Bella and Minerva. Potential targets include Waarre, Flaxman and Paaratte formations and Timboon Sandstone. Other plays include the Palaeocene age Pebble Point, Eocene age Dilwyn formations and Oligocene age low-stand fans off the edge of the continental shelf. The latter could have significant size potential, but are yet to be tested. The main plays in the eastern block are lowstand plays in the Tertiary Wangerrip and Nirranda groups. 18
Potential source rocks include the Otway and the basal Sherbrook groups. Geochemical analysis of the latter by MPV and Australian Geological Survey Organisation (AGSO) indicates the base of this unit is oil mature in the block, but is most likely gas prone.
Offshore Gippsland Basin Areas (Fig. 2) Of the three proposed blocks, one shallow water area, covering 718 km2, is located in the north of the basin. The area lies 50 km ESE of Lakes Entrance in water depths of 20 to 75 metres. It straddles the Northern Terrace and Northern Platform and includes untested prospects and
The characteristics of relevant nearby hydrocarbon accumulations are also examined, where they relate to the interpreted play types in the deep water. Play fairways are delineated and for each, potential trapping styles are discussed and a risk profile generated to assist in focusing future exploration effort. Both areas have significant potential, in that all of the petroleum systems components are interpreted to be present. The prospective play fairways are on trend with known and tested accumulations of both oil and gas, some of which offer potential for large accumulations.
Final RFAs negotiated T
he last of Victoria’s Regional Forest Agreements, covering Western Victoria and Gippsland, were concluded with the Commonwealth Government during April. The Western Victoria RFA covers an area roughly bounded by Melbourne and Seymour in the east and extending to the South Australian border. The Gippsland RFA is roughly bounded by Inverloch, Jamieson, Benambra and Lakes Entrance. For the mining and exploration industry the RFA’s should have little impact. The great majority of new park areas are not regarded as highly prospective for minerals. In West Victoria, new areas of National and State parks are limited to additions to the Lerderderg State Park (5600 ha), Langi Ghiran State Park (300 ha), Mount Eccles National Park (1800 ha) and Mount Arapiles-Tooan State Park (2420 ha), and total approximately 1% of the public land in the region. In Gippsland, new areas of parks are limited to additions to the Alpine (7420 ha), Tarra-Bulga (180 ha) and Morwell (120 ha) National Parks, totalling approximately 0.5% of the public land in the region. The West Victoria and Gippsland RFA’s are the last of Victoria’s five agreements — those made previously being the North East, East Gippsland and Central Highlands. 19
The RFA’s, which cover 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 in each region comprises: • 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. As in the previous RFA’s, the West Victoria and Gippsland RFA’s maintain the important principle that Victorian law (primarily the Mineral Resources Development Act) continues to govern access for exploration and mining.
F O R M O R E I N F O R M AT I O N C O N TA C T:
Phil Roberts Manager, Geological Survey Victoria Tel: (03) 9412 5035
OIL
/GAS
NEWS
REGULAR FEATURE
New acreage release to accelerate exploration by Dr Mike Woollands, Manager Basin Studies
T
he pace of offshore oil and gas exploration in Victoria will be accelerated through the release of two blocks in the Otway Basin and three in the Gippsland Basin.
FIG.1 OTWAY BASIN 2000 RECOMMENDED ACREAGE RELEASE AREAS
The area is on the main migration pathway for hydrocarbons generated in the basin, as evidenced by the Patricia-Baleen gas field.
The blocks are part of the latest acreage gazettal unveiled at this year’s Australian Petroleum Production and Exploration Association conference in Brisbane during May.
The block’s potential has been documented by MPV (VIMP Report No. 56) and further understanding is being developed through integration of the new aeromagnetic data with existing seismic mapping.
The acreage, released under the terms of the Commonwealth Petroleum (Submerged Lands) Act 1967 forms part of a national release of exploration acreage.
The remaining two blocks are in the southeastern deep-water part of the basin covering the Bass Canyon. Together the two areas cover 5238 km2 and water depths range from 600 m (210 m in the northern block) through 3000 m.
Otway Basin Areas (Fig. 1) The western block, about 50 km South West of Portland covers 1868 square kilometres and lies mostly in less than 200 metres of water, increasing to 500 m at its southwestern edge. The area overlies the Late Cretaceous age Voluta Trough. Four wells have been drilled in the block in the past, Voluta-1, Discovery Bay-1, Bridgewater Bay-1 and Normanby-1.
The areas are covered by widely spaced Bureau of Mineral Resources seismic lines, the tails of shallow water lines and by a new regional grid acquired for MPV by Seismic Australia (GDW99 Survey).
FIG.2 GIPPSLAND BASIN 2000 RECOMMENDED ACREAGE RELEASE AREAS
All four targetted Late Cretaceous tilted faultblocks, with Normanby-1 encountering weak gas shows in the basalt Waarre Formation. The other wells were dry, being either off structure or with the target horizons incorrectly selected.
It covers 1874 km2 and lies at the edge of the continental shelf in 50 m to 1000 m of water, although 80 per cent is less than 200 m deep.
The results are being documented in VIMP Report No 65, which describes the geological framework, depositional history and structure of the areas.
The area straddles the WNW-ESE trending Mussel Fault Zone, which separates the Voluta Trough from the Mussel Platform.
Triton-1 tested a Waarre Formation tilted fault block prospect, which proved water-wet and tight. Despite these results, the two areas are considered to have significant potential. Previous failures can be attributed to poor seismic data and, as the hydrocarbon discoveries at La Bella and Minerva attest, an active petroleum system does exist offshore, sourced from the gas-prone Early Cretaceous age Eumeralla Formation which underlies the blocks. A re-evaluation has been carried out by Minerals and Petroleum Victoria to identify
The northern area also has 1 to 3 km spaced seismic data in the shallower water parts. Only two wells have been drilled in the latter area; both were dry, penetrating only the top of the Latrobe Group and providing little information on deeper prospective sections. The Basin Studies Group of MPV has carried out a regional assessment of the area’s hydrocarbon prospectivity, based on an integration of open file and commercially available seismic data (including GDW99 data) and new AGSO aeromagnetic data.
The eastern Otway Basin block is situated approximately 90 km SE of Portland.
Only two wells have been drilled, Nautilus-1 and Triton-1, both proving dry. Nautilus-1 tested a Tertiary ‘clastic-wedge’ play, but the target had no reservoir.
leads associated with Top and intra-Latrobe Group, Golden Beach and Emperor Subgroup targets.
A tectonic elements map and a series of facies maps are included which describe key elements of the deep-water petroleum systems. play fairways within these blocks (VIMP Report No. 66). The main play type in the western block is Late Cretaceous tilted fault blocks, as at La Bella and Minerva. Potential targets include Waarre, Flaxman and Paaratte formations and Timboon Sandstone. Other plays include the Palaeocene age Pebble Point, Eocene age Dilwyn formations and Oligocene age low-stand fans off the edge of the continental shelf. The latter could have significant size potential, but are yet to be tested. The main plays in the eastern block are lowstand plays in the Tertiary Wangerrip and Nirranda groups. 18
Potential source rocks include the Otway and the basal Sherbrook groups. Geochemical analysis of the latter by MPV and Australian Geological Survey Organisation (AGSO) indicates the base of this unit is oil mature in the block, but is most likely gas prone.
Offshore Gippsland Basin Areas (Fig. 2) Of the three proposed blocks, one shallow water area, covering 718 km2, is located in the north of the basin. The area lies 50 km ESE of Lakes Entrance in water depths of 20 to 75 metres. It straddles the Northern Terrace and Northern Platform and includes untested prospects and
The characteristics of relevant nearby hydrocarbon accumulations are also examined, where they relate to the interpreted play types in the deep water. Play fairways are delineated and for each, potential trapping styles are discussed and a risk profile generated to assist in focusing future exploration effort. Both areas have significant potential, in that all of the petroleum systems components are interpreted to be present. The prospective play fairways are on trend with known and tested accumulations of both oil and gas, some of which offer potential for large accumulations.
Final RFAs negotiated T
he last of Victoria’s Regional Forest Agreements, covering Western Victoria and Gippsland, were concluded with the Commonwealth Government during April. The Western Victoria RFA covers an area roughly bounded by Melbourne and Seymour in the east and extending to the South Australian border. The Gippsland RFA is roughly bounded by Inverloch, Jamieson, Benambra and Lakes Entrance. For the mining and exploration industry the RFA’s should have little impact. The great majority of new park areas are not regarded as highly prospective for minerals. In West Victoria, new areas of National and State parks are limited to additions to the Lerderderg State Park (5600 ha), Langi Ghiran State Park (300 ha), Mount Eccles National Park (1800 ha) and Mount Arapiles-Tooan State Park (2420 ha), and total approximately 1% of the public land in the region. In Gippsland, new areas of parks are limited to additions to the Alpine (7420 ha), Tarra-Bulga (180 ha) and Morwell (120 ha) National Parks, totalling approximately 0.5% of the public land in the region. The West Victoria and Gippsland RFA’s are the last of Victoria’s five agreements — those made previously being the North East, East Gippsland and Central Highlands. 19
The RFA’s, which cover 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 in each region comprises: • 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. As in the previous RFA’s, the West Victoria and Gippsland RFA’s maintain the important principle that Victorian law (primarily the Mineral Resources Development Act) continues to govern access for exploration and mining.
F O R M O R E I N F O R M AT I O N C O N TA C T:
Phil Roberts Manager, Geological Survey Victoria Tel: (03) 9412 5035
/GAS
NEWS
OIL
New Plays from old fields
Post-rift sequences By MPV Senior Geologists, David Wong, David Moore and Tom Bernecker
Marlin Channel
CAP F AU EEVE LT S RARD YST EM
OIL
Tuna Flounder Channels
V00-4
ER
V SI
V
O
NAL L IMIT
Billfish High
V00-3
0
5
10
15
SES trzelecki Graben System
D SLAN
V
Southern Platform
Southern Graben
V V
GIPP
From Late Jurassic to mid-Cretaceous, the Gippsland Basin was part of a major continental rift system. Northeast trending grabens and half-grabens, including the precursors to the offshore Central Deep and onshore Strzelecki Ranges, were filled with up to 10 kilometres of dominantly fluvial sediments of the Strzelecki Group. This structural grain is strongly oblique to the current east-west Gippsland Basin axis and was partly controlled by the Palaeozoic basement grain. The new aeromagnetic data confirm the persistence and location of these trends across the basin, providing important information for better constrained basin and structural modelling. The Emperor Subgroup was deposited in a synrift phase coinciding with the opening of the Southern Ocean to the west. Its depositional setting is dominated by deep lacustrine sedimentation in a series of halfgrabens on trends largely coincident with those of the Strzelecki Group. The Golden Beach Subgroup is characterised by the first appearance of marine sedimentation in the basin that corresponds to the opening of the Tasman Sea. Northwest trending faults, normal to the Tasman extension direction, largely controlled deposition, particularly in the south and east. These contrast with previous rift phase structural trends. In the east of the magnetic image, similarly trending dyke swarms may be associated with the start of this phase. These faults are the first major set to significantly cut across the basement fabric and develop sub-parallel with the final sag axis of the basin. This interval has important source rocks and potential for oil and deep gas traps. Prior to the current interpretation, there was little confidence in the presence or impact of these northwest-trending fault sets and the Golden Beach Subgroup was relatively poorly understood. The new data are being applied to develop more robust models of this interval and to allow exploration of its considerable gas and oil potential.
V
E
Eastern Graben
Synrift sequences
Figure 1: Location map showing airborne magnetic image and new seismic coverage in relation to the producing fields. Recommended release areas outlined in red.
20
RISE
rocks are known from the Lord Howe Rise and in south- eastern Tasmania. It is thus reasonable to expect the presence of these rocks below the eastern Gippsland Basin.
O
Pre-Rift: Basement structural fabrics play an important role in controlling basin architecture and the establishment of effective petroleum systems. The Palaeozoic surface, exposed onshore, has a magnetic signature and fabric which extends beneath the Gippsland Basin. New onshore mapping has shown that this basement comprises successive south-directed arcuate thrust slices. It is possible that the bounding structures of the north and south terraces of the basin are, at least in part, reactivations of these earlier faults. The largest of the Devonian rifts, the Buchan Rift, can be traced using magnetics and gravity to the south-southwest, beneath the Sweetlip discovery and almost to the Snapper field. The Snapper-Sweetlip anticlinal axis is near coincident and may well be linked with this basement feature (Figure 1). Modelling on this and other structural/aeromagnetic correlations using this new data may provide useful information about prospectivity beneath these productive trends. The Gippsland Rise, in the southeastern Gippsland Basin,(see Figure 2) has a distinctly different magnetic fabric. Magnetic highs here have a more circular appearance, suggesting responses from post-deformational igneous bodies. Similar potential field responses are also present on the western edge of the Permo-Triassic Sydney-Bowen Basin onshore in southern New South Wales. Equivalent sedimentary
OB
New technology, combined with the application of modern geological concepts, is providing new insights into the formation of likely petroleum bearing structures and generating exploration targets which could sustain Victoria’s high level of petroleum self sufficiency for decades to come. Although the first Bass Strait discoveries were made almost 40 years ago a new, integrated study of the entire Gippsland Basin, being conducted by Minerals and Petroleum Victoria, will re-define the basin’s prospectivity and outline new hydrocarbon play fairways, particularly in the deeper waters of the eastern basin. By combining data from 980 kilometres of new, deep water seismic surveys with the Australian Geological Survey Organisation’s 1999 airborne magnetic survey and existing geophysical and geological data, new oil and gas potential in the Gippsland Basin is being revealed. Aero-magnetics, which provide deep structural data, together with seismic interpretations, allows far more reliable basin models to be developed than can be achieved using seismic data alone. MPV’s new study has so far shown the location and geological role of previously unrecognised deep structural features that impact on the prospectivity of the basin.
Geology
L AT R
V
ictoria’s Gippsland Basin, stretching along the 90-mile beach in Victoria’s south east, is a world-class oil and gas producing province which holds significant potential for new, commercial discoveries.
Northern Graben
20km
V
Isochron-Thin Isochron-Thick
}
V
GoldenBeach Subgroup
EmperorSubgroup S trzeleckiGroup Palaeozoic Basement
Volcanics Depocentres(GoldenBeach Subgroup) Depocentres(strzeleckiGp.) Highs Inversionhighsandfault rolloveranticlines MajortopLatrobeChannelarea Channelaxis
Volcanism accompanied episodes of post-rift normal faulting. Volcanic centres can be linked to the now-located basement-generated margin offsets. Thermal subsidence provided the accommodation space for the deposition of coal-bearing coastal plain sediments, marine sands and shales of the Latrobe Siliciclastics. Deep basement features subtly influenced these depositional patterns. Eocene compression reactivated early rift faults, forming them into NE-SW trending inversion anticlines. Finally, marine carbonates of the Seaspray Group were deposited in a mature drift phase setting in a temperate climate. The use of the deep structural data, based on
/GAS
NEWS
the aeromagnetic dataset, is leading to a new understanding of basement architecture, basin history and petroleum systems. This has already provided new insights and will encourage new exploration in the Gippsland Basin. The aeromagnetics and deep-water seismic provide a clear view of the basin rift sequences (Golden Beach Subgroup and older), unimpeded by the severe masking generated by the thick Latrobe Siliciclastics succession and Cainozoic carbonates of the central and western basin. Understanding the rift intervals in the deep water will prove invaluable for exploration and development in the basin. In the eastern Gippsland Basin, a more detailed study has greatly improved the understanding of the complex depositional and structural history of the current deep-water acreage now open for gazettal. The structural elements map shows part of the results of this deep-water evaluation carried out by the Basin Studies Group. Another study is on the northern basin margin. In this area, the aeromagnetic interpretation shows basement structures may reflect the structures controlling the overlying hydrocarbon accumulations. Further integrating aeromagnetic with seismic and other data is currently being carried out to understand the relationships with faulting patterns and stratigraphy.
Figure 2: Structural elements map of the deep-water release areas.
There’s plenty of life left in Bass Strait
A
s the Bass Strait oil and gas fields operated by Esso/BHP grow older the challenge of sustaining production rates in the face of steadily declining reserves increases.
But new technologies, careful well management, new wells and workovers have resulted in a 25,000 barrels a day increase in annual production in recent years from fields which, based on estimates of recoverable reserves. are already around 85 per cent depleted. The application of ‘most appropriate’ technologies to suit individual wells and fields, and work to remove process bottlenecks such as gas and water handling facilities has achieved production improvements undreamed of when the fields were first discovered in the 1960’s. The Bass Strait reservoirs are among the highest quality in the world. The petroleum reservoirs display very high porosity and
feature a strong water drive characteristic which readily pushes the oil and gas from the reservoirs. Many of the fields have multiple reservoir sands which increases production rates. Bream and the major reservoir in Tuna and West Tuna fields have thin oil columns with large gas caps. To preserve production rates from these mature fields a number of different reservoir management strategies are being adopted. A common strategy is to adopt intermittent production from wells which display high water production or have high gas to oil ratios. By periodically stopping production from these wells water and gas cones, which form in the reservoir around production wells, are able to naturally heal during shut-in periods. The favourable oil and reservoir characteristics in the Bass Strait fields allow some significant results to be achieved, improving the efficiency of the operation and 21
extending the producing life of the wells. Production from the 12 metre thick Tuna/West Tuna oil column has exceeded 40 per cent of the overall oil in place with a number of the wells just beginning to show a significant water-cut or gas oil ratio. Additional drilling programs in Bass Strait since 1990 have also improved productivity. More than 100 wells have been drilled in the mature Gippsland oil fields since then. Postdrilling results and advances in geoscience, reservoir management and drilling technology have already supported second campaigns of additional drilling on several platforms. As the remaining targets grow smaller, more cost effective drilling programs are required. In 1998, a tubing-pull workover unit was upgraded to provide drilling capability. This provides the field operators with significant flexibility and reduces mobilisation costs, allowing smaller drilling programs to become economic.
/GAS
NEWS
OIL
New Plays from old fields
Post-rift sequences By MPV Senior Geologists, David Wong, David Moore and Tom Bernecker
Marlin Channel
CAP F AU EEVE LT S RARD YST EM
OIL
Tuna Flounder Channels
V00-4
ER
V SI
V
O
NAL L IMIT
Billfish High
V00-3
0
5
10
15
SES trzelecki Graben System
D SLAN
V
Southern Platform
Southern Graben
V V
GIPP
From Late Jurassic to mid-Cretaceous, the Gippsland Basin was part of a major continental rift system. Northeast trending grabens and half-grabens, including the precursors to the offshore Central Deep and onshore Strzelecki Ranges, were filled with up to 10 kilometres of dominantly fluvial sediments of the Strzelecki Group. This structural grain is strongly oblique to the current east-west Gippsland Basin axis and was partly controlled by the Palaeozoic basement grain. The new aeromagnetic data confirm the persistence and location of these trends across the basin, providing important information for better constrained basin and structural modelling. The Emperor Subgroup was deposited in a synrift phase coinciding with the opening of the Southern Ocean to the west. Its depositional setting is dominated by deep lacustrine sedimentation in a series of halfgrabens on trends largely coincident with those of the Strzelecki Group. The Golden Beach Subgroup is characterised by the first appearance of marine sedimentation in the basin that corresponds to the opening of the Tasman Sea. Northwest trending faults, normal to the Tasman extension direction, largely controlled deposition, particularly in the south and east. These contrast with previous rift phase structural trends. In the east of the magnetic image, similarly trending dyke swarms may be associated with the start of this phase. These faults are the first major set to significantly cut across the basement fabric and develop sub-parallel with the final sag axis of the basin. This interval has important source rocks and potential for oil and deep gas traps. Prior to the current interpretation, there was little confidence in the presence or impact of these northwest-trending fault sets and the Golden Beach Subgroup was relatively poorly understood. The new data are being applied to develop more robust models of this interval and to allow exploration of its considerable gas and oil potential.
V
E
Eastern Graben
Synrift sequences
Figure 1: Location map showing airborne magnetic image and new seismic coverage in relation to the producing fields. Recommended release areas outlined in red.
20
RISE
rocks are known from the Lord Howe Rise and in south- eastern Tasmania. It is thus reasonable to expect the presence of these rocks below the eastern Gippsland Basin.
O
Pre-Rift: Basement structural fabrics play an important role in controlling basin architecture and the establishment of effective petroleum systems. The Palaeozoic surface, exposed onshore, has a magnetic signature and fabric which extends beneath the Gippsland Basin. New onshore mapping has shown that this basement comprises successive south-directed arcuate thrust slices. It is possible that the bounding structures of the north and south terraces of the basin are, at least in part, reactivations of these earlier faults. The largest of the Devonian rifts, the Buchan Rift, can be traced using magnetics and gravity to the south-southwest, beneath the Sweetlip discovery and almost to the Snapper field. The Snapper-Sweetlip anticlinal axis is near coincident and may well be linked with this basement feature (Figure 1). Modelling on this and other structural/aeromagnetic correlations using this new data may provide useful information about prospectivity beneath these productive trends. The Gippsland Rise, in the southeastern Gippsland Basin,(see Figure 2) has a distinctly different magnetic fabric. Magnetic highs here have a more circular appearance, suggesting responses from post-deformational igneous bodies. Similar potential field responses are also present on the western edge of the Permo-Triassic Sydney-Bowen Basin onshore in southern New South Wales. Equivalent sedimentary
OB
New technology, combined with the application of modern geological concepts, is providing new insights into the formation of likely petroleum bearing structures and generating exploration targets which could sustain Victoria’s high level of petroleum self sufficiency for decades to come. Although the first Bass Strait discoveries were made almost 40 years ago a new, integrated study of the entire Gippsland Basin, being conducted by Minerals and Petroleum Victoria, will re-define the basin’s prospectivity and outline new hydrocarbon play fairways, particularly in the deeper waters of the eastern basin. By combining data from 980 kilometres of new, deep water seismic surveys with the Australian Geological Survey Organisation’s 1999 airborne magnetic survey and existing geophysical and geological data, new oil and gas potential in the Gippsland Basin is being revealed. Aero-magnetics, which provide deep structural data, together with seismic interpretations, allows far more reliable basin models to be developed than can be achieved using seismic data alone. MPV’s new study has so far shown the location and geological role of previously unrecognised deep structural features that impact on the prospectivity of the basin.
Geology
L AT R
V
ictoria’s Gippsland Basin, stretching along the 90-mile beach in Victoria’s south east, is a world-class oil and gas producing province which holds significant potential for new, commercial discoveries.
Northern Graben
20km
V
Isochron-Thin Isochron-Thick
}
V
GoldenBeach Subgroup
EmperorSubgroup S trzeleckiGroup Palaeozoic Basement
Volcanics Depocentres(GoldenBeach Subgroup) Depocentres(strzeleckiGp.) Highs Inversionhighsandfault rolloveranticlines MajortopLatrobeChannelarea Channelaxis
Volcanism accompanied episodes of post-rift normal faulting. Volcanic centres can be linked to the now-located basement-generated margin offsets. Thermal subsidence provided the accommodation space for the deposition of coal-bearing coastal plain sediments, marine sands and shales of the Latrobe Siliciclastics. Deep basement features subtly influenced these depositional patterns. Eocene compression reactivated early rift faults, forming them into NE-SW trending inversion anticlines. Finally, marine carbonates of the Seaspray Group were deposited in a mature drift phase setting in a temperate climate. The use of the deep structural data, based on
/GAS
NEWS
the aeromagnetic dataset, is leading to a new understanding of basement architecture, basin history and petroleum systems. This has already provided new insights and will encourage new exploration in the Gippsland Basin. The aeromagnetics and deep-water seismic provide a clear view of the basin rift sequences (Golden Beach Subgroup and older), unimpeded by the severe masking generated by the thick Latrobe Siliciclastics succession and Cainozoic carbonates of the central and western basin. Understanding the rift intervals in the deep water will prove invaluable for exploration and development in the basin. In the eastern Gippsland Basin, a more detailed study has greatly improved the understanding of the complex depositional and structural history of the current deep-water acreage now open for gazettal. The structural elements map shows part of the results of this deep-water evaluation carried out by the Basin Studies Group. Another study is on the northern basin margin. In this area, the aeromagnetic interpretation shows basement structures may reflect the structures controlling the overlying hydrocarbon accumulations. Further integrating aeromagnetic with seismic and other data is currently being carried out to understand the relationships with faulting patterns and stratigraphy.
Figure 2: Structural elements map of the deep-water release areas.
There’s plenty of life left in Bass Strait
A
s the Bass Strait oil and gas fields operated by Esso/BHP grow older the challenge of sustaining production rates in the face of steadily declining reserves increases.
But new technologies, careful well management, new wells and workovers have resulted in a 25,000 barrels a day increase in annual production in recent years from fields which, based on estimates of recoverable reserves. are already around 85 per cent depleted. The application of ‘most appropriate’ technologies to suit individual wells and fields, and work to remove process bottlenecks such as gas and water handling facilities has achieved production improvements undreamed of when the fields were first discovered in the 1960’s. The Bass Strait reservoirs are among the highest quality in the world. The petroleum reservoirs display very high porosity and
feature a strong water drive characteristic which readily pushes the oil and gas from the reservoirs. Many of the fields have multiple reservoir sands which increases production rates. Bream and the major reservoir in Tuna and West Tuna fields have thin oil columns with large gas caps. To preserve production rates from these mature fields a number of different reservoir management strategies are being adopted. A common strategy is to adopt intermittent production from wells which display high water production or have high gas to oil ratios. By periodically stopping production from these wells water and gas cones, which form in the reservoir around production wells, are able to naturally heal during shut-in periods. The favourable oil and reservoir characteristics in the Bass Strait fields allow some significant results to be achieved, improving the efficiency of the operation and 21
extending the producing life of the wells. Production from the 12 metre thick Tuna/West Tuna oil column has exceeded 40 per cent of the overall oil in place with a number of the wells just beginning to show a significant water-cut or gas oil ratio. Additional drilling programs in Bass Strait since 1990 have also improved productivity. More than 100 wells have been drilled in the mature Gippsland oil fields since then. Postdrilling results and advances in geoscience, reservoir management and drilling technology have already supported second campaigns of additional drilling on several platforms. As the remaining targets grow smaller, more cost effective drilling programs are required. In 1998, a tubing-pull workover unit was upgraded to provide drilling capability. This provides the field operators with significant flexibility and reduces mobilisation costs, allowing smaller drilling programs to become economic.
SPECIAL FEATURE
SPECIAL FEATURE
Blainey’s views of the mining world Eminent Australian historian, Professor Geoffrey Blainey is well known for being ‘unafraid to speak his mind’. So it was an eagerly awaited event when Blainey, author of numerous books on Australia’s mining industry, spoke to a small group gathered by Australian Mining Consultants at the Australian Club in Melbourne earlier this year. The following is an edited version of his address.
which has so many of the characteristics of those early Australian mining booms. In 1900 the overwhelming majority of Australians very much favoured mining. They rejoiced in a strong mining industry. They knew that mining had done as much or more than any other industry to build the nation and to give it some of its place, including its democratic place. In 1900 and for some time afterwards the discoverer of a major mining field, was the national hero.
M
ining had a profound effect on Australia’s development particularly in Melbourne, in the early 1900’s.
It’s astonishing the way mining in that period permeated national life, in so many ways. The mining industry, at the start of this century, was very strong.
Mining in those days had major defects, it was a much more dangerous occupation than it is today. But the defects perceived by the average Australian is much less important than its merits. Today’s pendulum has swung and its defects are seen as so prominent that in the opinion of a big number of Australians they outweigh the gains.
And in relation to the size of the economy, it was more powerful, more penetrating, than it is today, because it was a very small economy.
This hostility towards mining or ambivalence towards mining is far from universal but it is widespread especially in the powerful settings, of the south-east corner of this continent.
Mining then was very elevating and, in the early 1900’s, the flotation process was being developed in Broken Hill, while at Mount Lyell they were doing the first successful pyhrritic smelting on a large scale, without fuel.
Schoolrooms are often the spearhead for this hostility. Moreover, several political parties, the Democrats and the Greens, and perhaps one wing of the Labor Party, are now decidedly wary of mining.
Mt Lyell ecologically, is a bit of a mess, but is one of the great places in the history of mankind, because there, the age old dream of smelting on a large scale, without fuel, came to pass.
At one time, some of the Melbourne city liberals were wary of mining.
Mining finance was so confident, that if you walked down the main street of Charter’s Towers or Kalgoorlie or Broken Hill on a warm evening you would see a large crowd, assembled in the open air. These were the open air stock exchanges, so influential in those towns. In some ways we might now be passing through what may be the last days of the mining boom with this astonishing Internet boom
Why has the community’s attitude to mining changed so strongly? Since the 1960’s, the strong green movement has expressed a wide concern about what is happening to the local environments. Irrespective of whether it is global warming, or pollution of the air in the cities or the despoiling of a rural landscape, mining is often singled out as the prime culprit. Moreover, one wing of the green movement is strongly anti-capitalist and it sees the large mining companies as an obvious target. 22
Significantly, in Australia today the mining company which threatens 50 hectares of land is much more likely to be denounced than the municipality which slowly bulldozes 2000 hectares of bushland, for a new suburb. It’s true mining has improved remarkably in its attitude towards the environment. But 30 years ago the scope for improvement was gigantic. The public reputation of mining has also suffered because of the increasing fear of what is seen as hazardous minerals. These include asbestos, uranium and fossil fuels. A century ago there were no such minerals, although lead was about to take its stand in the dock. It should be noted that these critics of minerals use most of them every day, sometimes without knowing it. In addition, the reputation of mining in recent years has suffered in some Australian corners with the rise of the land rights movement. Until the Wik case, mining was the main economic interest affected by land rights and therefore was the most active opponent of aboriginal land rights. Native title is a thorny topic even though there is goodwill on both sides and it will remain thorny, though it has effected to some degree certain public attitudes to mining. These new critics of mining often have a valid case though not the only case. Their criticisms, however, would have much less effect if mining was still accepted as vital to Australia’s economy. In fact, mining is vital to our standard of living and national solvency but if you tried to make that point of view in many wellinformed circles in Australia they simply blink and disagree. In their view the whole mining industry in Australia could be abolished and Australia, in no way, would be worse off. The old credo that Australians must develop ... has waned. And that’s one reason I suppose why the mining industry, which traditionally
was a vigorous developer of remote places, is no longer seen as crucial. More significant is that mining is no longer an employer on the old, massive scale. So often it employs machines rather than people. The public ignorance of the gold movement in the last 20 years reflects the new labour saving technology. Outside WA it would be interesting to note what kind of percentage of Australians realise that gold is Australia’s number two export and that we now produce far more gold than we produced in the best years of the 1850’s, or the best years of the 1890’s. The annual output of gold is now enormous by old time standards and there is no new Bendigo, there is no new Ballarat on the map. There is not even a new Ararat or a new Gympie.
What if the one and the seven were the other way around. If the mines were packed with employees and produced very little wealth the general public would value the industry far more highly. This swing in the public perception of mining is understandable, but it is very difficult to counter. It is such a hard task that I don’t think the mining industry has had much success so far in countering it. In my view, and I could be quite wrong, in 10 or 15 years time Australia’s mining industry is likely to be less central to the economy than it is today.
time, to contribute such a high proportion of Australia’s total exports and such a high proportion to the GDP. Mining by most definitions, is still Australia’s dominant exporter. I don’t think it’s likely to perform that role in the year 2015. Why do I offer this tentative prediction? As I explained, generally lawmaker, and public opinion are less sympathetic to mining than they were 40 or 80 years ago. Moreover, mining’s importance is now camouflaged by the fact that it is no longer a huge employer and no longer the creator of big inland towns. There is another reason.
It will still be dynamic. It will still probably be growing, but it is not likely, in 10 or 15 years
The opportunities and incentives for exploring and developing new mines in the third world,
‘Mining is vital to our
and especially in south-east Asia, have increased dramatically in the last three decades.
Nothing has done more to dim the public’s perceived influence, perceived knowledge of mining than the absence of new mining centres. I’m sure there are powerful economic reasons for the new cult of fly in and fly out. The majority of employers and employees prefer the new system. But I’m sure its done harm to the public perception of mining and its importance. We as Australians, and I suppose this is true in most countries, still tend to judge the importance of an industry by the jobs it directly creates. By this critique, mining is now far down the ladder. Unfortunately, this measurement is quite misleading. Australia urgently needs highly productive export industries that employ few people as well as industries that employ people by the tens of thousands. In fact, an efficient industry that employs ten thousand people is often far more important to the whole economy and its standard of living than a lacklustre industry that employs a hundred thousand people. But in Australia we still take notice of and barrack for the lacklustre industries. I suppose we tend to separate the concept of job creation from the equally important concept of wealth creation. One of the mining industry’s acute problems is that when it is very successful its role is not understood. According to some recent statistics mining in its more prosperous years provided one percent of the nation’s jobs, but creates about 7 per cent of the nation’s wealth.
standard of living and national solvency but if you tried to make that point of view in many well-informed
Australian mining companies, with their long experience and their high skills, are increasingly tending to venture overseas. The exodus of professional talent and capital is now on a massive scale by Australia’s historical standards.
circles in Australia they
Even if there were no native title laws, even if the dedicated green movement did not exist in Australia, this exodus would probably be on a large scale, though not on the present scale.
simply blink and disagree’
The exodus, in a sense, is reassuring because
23
SPECIAL FEATURE
SPECIAL FEATURE
Blainey’s views of the mining world Eminent Australian historian, Professor Geoffrey Blainey is well known for being ‘unafraid to speak his mind’. So it was an eagerly awaited event when Blainey, author of numerous books on Australia’s mining industry, spoke to a small group gathered by Australian Mining Consultants at the Australian Club in Melbourne earlier this year. The following is an edited version of his address.
which has so many of the characteristics of those early Australian mining booms. In 1900 the overwhelming majority of Australians very much favoured mining. They rejoiced in a strong mining industry. They knew that mining had done as much or more than any other industry to build the nation and to give it some of its place, including its democratic place. In 1900 and for some time afterwards the discoverer of a major mining field, was the national hero.
M
ining had a profound effect on Australia’s development particularly in Melbourne, in the early 1900’s.
It’s astonishing the way mining in that period permeated national life, in so many ways. The mining industry, at the start of this century, was very strong.
Mining in those days had major defects, it was a much more dangerous occupation than it is today. But the defects perceived by the average Australian is much less important than its merits. Today’s pendulum has swung and its defects are seen as so prominent that in the opinion of a big number of Australians they outweigh the gains.
And in relation to the size of the economy, it was more powerful, more penetrating, than it is today, because it was a very small economy.
This hostility towards mining or ambivalence towards mining is far from universal but it is widespread especially in the powerful settings, of the south-east corner of this continent.
Mining then was very elevating and, in the early 1900’s, the flotation process was being developed in Broken Hill, while at Mount Lyell they were doing the first successful pyhrritic smelting on a large scale, without fuel.
Schoolrooms are often the spearhead for this hostility. Moreover, several political parties, the Democrats and the Greens, and perhaps one wing of the Labor Party, are now decidedly wary of mining.
Mt Lyell ecologically, is a bit of a mess, but is one of the great places in the history of mankind, because there, the age old dream of smelting on a large scale, without fuel, came to pass.
At one time, some of the Melbourne city liberals were wary of mining.
Mining finance was so confident, that if you walked down the main street of Charter’s Towers or Kalgoorlie or Broken Hill on a warm evening you would see a large crowd, assembled in the open air. These were the open air stock exchanges, so influential in those towns. In some ways we might now be passing through what may be the last days of the mining boom with this astonishing Internet boom
Why has the community’s attitude to mining changed so strongly? Since the 1960’s, the strong green movement has expressed a wide concern about what is happening to the local environments. Irrespective of whether it is global warming, or pollution of the air in the cities or the despoiling of a rural landscape, mining is often singled out as the prime culprit. Moreover, one wing of the green movement is strongly anti-capitalist and it sees the large mining companies as an obvious target. 22
Significantly, in Australia today the mining company which threatens 50 hectares of land is much more likely to be denounced than the municipality which slowly bulldozes 2000 hectares of bushland, for a new suburb. It’s true mining has improved remarkably in its attitude towards the environment. But 30 years ago the scope for improvement was gigantic. The public reputation of mining has also suffered because of the increasing fear of what is seen as hazardous minerals. These include asbestos, uranium and fossil fuels. A century ago there were no such minerals, although lead was about to take its stand in the dock. It should be noted that these critics of minerals use most of them every day, sometimes without knowing it. In addition, the reputation of mining in recent years has suffered in some Australian corners with the rise of the land rights movement. Until the Wik case, mining was the main economic interest affected by land rights and therefore was the most active opponent of aboriginal land rights. Native title is a thorny topic even though there is goodwill on both sides and it will remain thorny, though it has effected to some degree certain public attitudes to mining. These new critics of mining often have a valid case though not the only case. Their criticisms, however, would have much less effect if mining was still accepted as vital to Australia’s economy. In fact, mining is vital to our standard of living and national solvency but if you tried to make that point of view in many wellinformed circles in Australia they simply blink and disagree. In their view the whole mining industry in Australia could be abolished and Australia, in no way, would be worse off. The old credo that Australians must develop ... has waned. And that’s one reason I suppose why the mining industry, which traditionally
was a vigorous developer of remote places, is no longer seen as crucial. More significant is that mining is no longer an employer on the old, massive scale. So often it employs machines rather than people. The public ignorance of the gold movement in the last 20 years reflects the new labour saving technology. Outside WA it would be interesting to note what kind of percentage of Australians realise that gold is Australia’s number two export and that we now produce far more gold than we produced in the best years of the 1850’s, or the best years of the 1890’s. The annual output of gold is now enormous by old time standards and there is no new Bendigo, there is no new Ballarat on the map. There is not even a new Ararat or a new Gympie.
What if the one and the seven were the other way around. If the mines were packed with employees and produced very little wealth the general public would value the industry far more highly. This swing in the public perception of mining is understandable, but it is very difficult to counter. It is such a hard task that I don’t think the mining industry has had much success so far in countering it. In my view, and I could be quite wrong, in 10 or 15 years time Australia’s mining industry is likely to be less central to the economy than it is today.
time, to contribute such a high proportion of Australia’s total exports and such a high proportion to the GDP. Mining by most definitions, is still Australia’s dominant exporter. I don’t think it’s likely to perform that role in the year 2015. Why do I offer this tentative prediction? As I explained, generally lawmaker, and public opinion are less sympathetic to mining than they were 40 or 80 years ago. Moreover, mining’s importance is now camouflaged by the fact that it is no longer a huge employer and no longer the creator of big inland towns. There is another reason.
It will still be dynamic. It will still probably be growing, but it is not likely, in 10 or 15 years
The opportunities and incentives for exploring and developing new mines in the third world,
‘Mining is vital to our
and especially in south-east Asia, have increased dramatically in the last three decades.
Nothing has done more to dim the public’s perceived influence, perceived knowledge of mining than the absence of new mining centres. I’m sure there are powerful economic reasons for the new cult of fly in and fly out. The majority of employers and employees prefer the new system. But I’m sure its done harm to the public perception of mining and its importance. We as Australians, and I suppose this is true in most countries, still tend to judge the importance of an industry by the jobs it directly creates. By this critique, mining is now far down the ladder. Unfortunately, this measurement is quite misleading. Australia urgently needs highly productive export industries that employ few people as well as industries that employ people by the tens of thousands. In fact, an efficient industry that employs ten thousand people is often far more important to the whole economy and its standard of living than a lacklustre industry that employs a hundred thousand people. But in Australia we still take notice of and barrack for the lacklustre industries. I suppose we tend to separate the concept of job creation from the equally important concept of wealth creation. One of the mining industry’s acute problems is that when it is very successful its role is not understood. According to some recent statistics mining in its more prosperous years provided one percent of the nation’s jobs, but creates about 7 per cent of the nation’s wealth.
standard of living and national solvency but if you tried to make that point of view in many well-informed
Australian mining companies, with their long experience and their high skills, are increasingly tending to venture overseas. The exodus of professional talent and capital is now on a massive scale by Australia’s historical standards.
circles in Australia they
Even if there were no native title laws, even if the dedicated green movement did not exist in Australia, this exodus would probably be on a large scale, though not on the present scale.
simply blink and disagree’
The exodus, in a sense, is reassuring because
23
SPECIAL FEATURE
it is partly a sign Australia possesses one of the most efficient and enterprising mining industries the world has known. I don’t mean there’s not plenty of room for improvement but, by world and Australian standards, it is a very powerful and a very successful, and in many ways a very efficient industry today. For that reason it is capable of taking up opportunities almost anywhere. Again, the policy of setting aside the huge areas of outback Australia as nature reserves and as permanent aboriginal settlements will continue and as a result the scope for mineral exploration in this continent will diminish somewhat. But the day may come, perhaps a generation hence, perhaps earlier, when this Australian exodus to new lands could slow down or decline. We think that swift globilisation, inviting in other industries, is not a permanent asset. For my part, I am not convinced it will continue to increase but there will be very strong setbacks from time to time. But the day will come, it may not be a permanent day, when a variety of obstacles arise in Indonesia and many other mining territories which are at present so welcoming to outsiders. They may well have new taxation policies, new environment policies, new industrial relations, new collectivist trends and maybe stronger nationalism. My own view is that collectivism will revive in the western world in the next 20 years simply as part of the cyclical way in which we take on a new system and expect too much of it and then public reaction to it grows.
EXPLORATION
We will have another period of collectivism, hopefully not as outrageous as the period of collectivism that was so powerful in the western world in the first half of the century. It is easy to be wrong in making predictions. So much of the important evidence of the future is buried in the ground out of sight. Interestingly, when I did my research on my first book on mining on the early 1950’s on western Tasmania, the belief of the great majority of Australian mine managers, whether in Tasmania or on the mainland, was that the golden age of Australian mining was past and would never come again. That Australian mining would never again be as powerful as it was at the turn of the century.
ery and smelter at Bell Bay, the bauxite had to be imported from Malaysia. Today, Australia leads the world in the production of both bauxite and alumina. Likewise Australia is now a huge exporter of iron ore. Of the world’s iron ore shipped from one country to another, Australia supplies more than one third and yet as late as 1960 Australia as a whole seemed so deficient in iron ore that there was a government ban on its export to any other part of the world. It had to be preserved for Australia’s own uses, so poor were our reserves deemed to be. So it is impossible to say with any confidence what will happen in the future. But my view of mining is this.
Of course that belief has been falsified in an astonishing way. It was believed for a long time that nature had been mean towards Australia. For a land occupying so vast an area most of us lamented that it was not very well endowed with minerals.
The more intelligent the searching that takes place, the more likely it is there will be a major discovery.
It was an article of faith in the 1950’s that Australia would always be deficient in a variety of minerals, some of which it now produces in abundance.
If so much Australian skill and capital, knowledge and creative imagination is going to go into developing mining fields in other parts of the world then Australia’s mining as a profession will remain immensely powerful but the industry and its impact on Australia as itself is likely to diminish.
This new diversity, unimaginable when I was young, is largely a result of post-war discoveries. Many of those discoveries were minerals which, according to informed opinion, were unlikely to be found anywhere in Australia. In the mid 1950’s or the early 1950’s, when Australia first set up its first aluminium refin-
The more there is a willingness to pour money into developing a discovery the greater the increases in mineral output.
The day will come when this offshore trend will be replaced by an onshore trend. I don’t know when it will happen but I am sure it will happen, although by then I will be dead.
R
shares. Newport was founded in 1989 and is regarded as a leading investment advisory company specialising in the technology industry,” the Reef directors said.
The closure followed a takeover of the company by the Sydney-based Hudson group.
Newport focuses on the development of key technology industries including information and communications technologies, new media technologies including media convergence, digital and multi-media, internet and e-commerce.
“In the light of the company placing the mining operation on care and maintenance and with approximately $2.3 million in cash reserves, the directors have identified a new business venture which Reef will acquire to give the company an opportunity to enhance shareholder values,” the company said in a statement to the Australian Stock Exchange. “Accordingly, Reef proposes to acquire 100% of the issued capital of Newport Capital Group Pty Limited in exchange for Reef Mining
Newport activities include arranging mergers and acquisitions, providing corporate advice, provision of research and funds management. Recently, the company established its first ‘managed venture capital fund’, with $51 million committed and a target of $75 million for the final close. Reef’s corporate restructuring requires approval of shareholders to acquire 100 per 24
D
rilling interest in the onshore part of Victoria’s Gippsland Basin has been rekindled through the efforts of Australia’s oldest oil and gas explorer, Lakes Oil NL.
Lakes Oil, which now controls most exploration permits in the onshore portion of the basin, will follow two early wells, both of which discovered gas but were never tested. The new well, called North Seaspray 3 is located 25 km south south west of Sale in east Gippsland and is aiming at a 60 billion cubic foot gas reservoir with several similar structure located nearby should the latest well be successful. Lakes Oil decided in late 1999 to proceed with the North Seaspray prospect in permit PEP/137 after an extensive review of earlier drilling operations. The well is located updip of North Seaspray 1, a well drilled by an Arco/Woodside joint venture in 1962, which flowed gas to the surface in a two-hour test. The flow rate was not measured, but results from gas analysis revealed a composition of 66.9 per cent methane, 20.6 per cent ethane, 8.3 per cent propane and 4.2 per cent fractions. The gas flowed from the Golden Beach formation located below the traditional target, the Latrobe section, which has produced the majority of the oil and gas in the offshore portion of the Gippsland Basin.
Reef switches its focus eef Mining has closed the rich Tarnagulla gold mine near Bendigo and placed the operation on care and maintenance pending the sale of the project after economic ore reserves were depleted.
Lakes Oil seeks Seaspray gas
cent of the issued capital of Newport in consideration and for the sale of its Tarnagulla gold operations. Reef is also planning to swap its no liability status and switch to being a limited liability company and to change its name to Newport Capital Group Limited’. The company’s constitution will be replaced, “with one acceptable for a public company limited by shares,” while the issued capital will be consolidated on terms yet to be decided. “Following the successful passage of the resolutions to be put to the general meeting of shareholders it is expected that the ASX will allow trading in Reef shares to resume. Directors are confident that he acquisition of Newport will significantly enhance value for investors in Reef,” the statement said.
After several months researching the historic and geological significance of the Golden Beach Sands in the onshore Gippsland Basin, Lakes Oil now believes the formation has never been investigated onshore as a primary reservoir for hydrocarbons. The principle reason is that past wells have encountered problems associated with the presence of coal in the lower Latrobe section, causing caving in to occur before testing. Lakes Oil’s faith in the onshore portion of the Gippsland Basin has a strong historical link. In 1923, near Lake Bunga in Gippsland, the first well in the region was sunk, producing oil from rock chips, but the well could not be coaxed into flowing. Many more onshore wells were drilled in the Gippsland area with production occurring from an old shaft system near Lakes Entrance which utilised horizontal wells bored in from the bottom of the shaft to generate oil.
That project ultimately failed but not until it had produced many thousands of gallons of oil. Last year Lakes Oil commissioned veteran oil industry geologist Eric Webb and the highly experienced Dr Jennifer Baird to thoroughly review the previous onshore exploration in the region. That review showed that although several onshore wells had produced gas shows in the lower Latrobe and Golden Beach sands, many of the wells had been damaged by cave ins in the coal prone zones. To overcome the coal problems the North Seaspray 3 well will be cased through the Latrobe sands before drilling into the Golden Beach formation. The Seaspray structure is well plkaced, lying just 10 kilometres south of Esso’s Longford gas processing plant. In addition the main Bass Strait to Longford gas pipeline lies within 200 metres of the North Seaspray 3 well site which was located after Lakes acquired an extra 6.2 km of seismic data to fully delineate the reservoir target. “This proximity to Longford, together with the fact that the pipeline from the offshore Bass Strait fields Dolphin and Perch traverses the structure as it proceeds to Longford, will make this a most interesting well,” Lakes Oil Managing Director, Rob Annells, said. Lakes Oil currently holds a 100 per cent effective equity interest in PEP 137, subject to a 5 per cent overriding royalty to the former
25
Lakes Oil has conducted extensive seismic testing in the east Gippsland area in preparation for its new Seaspray well.
owner of the permit, Roma Petroleum NL. Mr Annells also noted that the strategic location of the Seaspray structure provided Lakes with a potential gas storage project. “The Latrobe section, which is not the primary target in our forthcoming well, would appear to be an ideal location for such storage. We estimate that the likely size of the Latrobe section could be well in excess of the 60 BCF estimated as the size of the Golden Beach trap,” he said. “Data obtained from an earlier seismic line has revealed that the structure has significant four-way dip closure and we expect the Latrobe section to be water wet”, Mr Annells added. “Gas from other locations could be stored by injection into the Latrobe sands, thus displacing the formation water.”. Lakes Oil has contracted a Melbourne-based drilling contractor for the well which is expected to take about three weeks to drill to a depth of 1,170 metres. Drilling is expected to start during May. F O R M O R E I N F O R M AT I O N C O N TA C T:
Robert Annells Managing Director – Lakes Oil NL Tel: (03) 9629 1566 Fax: (03) 9629 1624
SPECIAL FEATURE
it is partly a sign Australia possesses one of the most efficient and enterprising mining industries the world has known. I don’t mean there’s not plenty of room for improvement but, by world and Australian standards, it is a very powerful and a very successful, and in many ways a very efficient industry today. For that reason it is capable of taking up opportunities almost anywhere. Again, the policy of setting aside the huge areas of outback Australia as nature reserves and as permanent aboriginal settlements will continue and as a result the scope for mineral exploration in this continent will diminish somewhat. But the day may come, perhaps a generation hence, perhaps earlier, when this Australian exodus to new lands could slow down or decline. We think that swift globilisation, inviting in other industries, is not a permanent asset. For my part, I am not convinced it will continue to increase but there will be very strong setbacks from time to time. But the day will come, it may not be a permanent day, when a variety of obstacles arise in Indonesia and many other mining territories which are at present so welcoming to outsiders. They may well have new taxation policies, new environment policies, new industrial relations, new collectivist trends and maybe stronger nationalism. My own view is that collectivism will revive in the western world in the next 20 years simply as part of the cyclical way in which we take on a new system and expect too much of it and then public reaction to it grows.
EXPLORATION
We will have another period of collectivism, hopefully not as outrageous as the period of collectivism that was so powerful in the western world in the first half of the century. It is easy to be wrong in making predictions. So much of the important evidence of the future is buried in the ground out of sight. Interestingly, when I did my research on my first book on mining on the early 1950’s on western Tasmania, the belief of the great majority of Australian mine managers, whether in Tasmania or on the mainland, was that the golden age of Australian mining was past and would never come again. That Australian mining would never again be as powerful as it was at the turn of the century.
ery and smelter at Bell Bay, the bauxite had to be imported from Malaysia. Today, Australia leads the world in the production of both bauxite and alumina. Likewise Australia is now a huge exporter of iron ore. Of the world’s iron ore shipped from one country to another, Australia supplies more than one third and yet as late as 1960 Australia as a whole seemed so deficient in iron ore that there was a government ban on its export to any other part of the world. It had to be preserved for Australia’s own uses, so poor were our reserves deemed to be. So it is impossible to say with any confidence what will happen in the future. But my view of mining is this.
Of course that belief has been falsified in an astonishing way. It was believed for a long time that nature had been mean towards Australia. For a land occupying so vast an area most of us lamented that it was not very well endowed with minerals.
The more intelligent the searching that takes place, the more likely it is there will be a major discovery.
It was an article of faith in the 1950’s that Australia would always be deficient in a variety of minerals, some of which it now produces in abundance.
If so much Australian skill and capital, knowledge and creative imagination is going to go into developing mining fields in other parts of the world then Australia’s mining as a profession will remain immensely powerful but the industry and its impact on Australia as itself is likely to diminish.
This new diversity, unimaginable when I was young, is largely a result of post-war discoveries. Many of those discoveries were minerals which, according to informed opinion, were unlikely to be found anywhere in Australia. In the mid 1950’s or the early 1950’s, when Australia first set up its first aluminium refin-
The more there is a willingness to pour money into developing a discovery the greater the increases in mineral output.
The day will come when this offshore trend will be replaced by an onshore trend. I don’t know when it will happen but I am sure it will happen, although by then I will be dead.
R
shares. Newport was founded in 1989 and is regarded as a leading investment advisory company specialising in the technology industry,” the Reef directors said.
The closure followed a takeover of the company by the Sydney-based Hudson group.
Newport focuses on the development of key technology industries including information and communications technologies, new media technologies including media convergence, digital and multi-media, internet and e-commerce.
“In the light of the company placing the mining operation on care and maintenance and with approximately $2.3 million in cash reserves, the directors have identified a new business venture which Reef will acquire to give the company an opportunity to enhance shareholder values,” the company said in a statement to the Australian Stock Exchange. “Accordingly, Reef proposes to acquire 100% of the issued capital of Newport Capital Group Pty Limited in exchange for Reef Mining
Newport activities include arranging mergers and acquisitions, providing corporate advice, provision of research and funds management. Recently, the company established its first ‘managed venture capital fund’, with $51 million committed and a target of $75 million for the final close. Reef’s corporate restructuring requires approval of shareholders to acquire 100 per 24
D
rilling interest in the onshore part of Victoria’s Gippsland Basin has been rekindled through the efforts of Australia’s oldest oil and gas explorer, Lakes Oil NL.
Lakes Oil, which now controls most exploration permits in the onshore portion of the basin, will follow two early wells, both of which discovered gas but were never tested. The new well, called North Seaspray 3 is located 25 km south south west of Sale in east Gippsland and is aiming at a 60 billion cubic foot gas reservoir with several similar structure located nearby should the latest well be successful. Lakes Oil decided in late 1999 to proceed with the North Seaspray prospect in permit PEP/137 after an extensive review of earlier drilling operations. The well is located updip of North Seaspray 1, a well drilled by an Arco/Woodside joint venture in 1962, which flowed gas to the surface in a two-hour test. The flow rate was not measured, but results from gas analysis revealed a composition of 66.9 per cent methane, 20.6 per cent ethane, 8.3 per cent propane and 4.2 per cent fractions. The gas flowed from the Golden Beach formation located below the traditional target, the Latrobe section, which has produced the majority of the oil and gas in the offshore portion of the Gippsland Basin.
Reef switches its focus eef Mining has closed the rich Tarnagulla gold mine near Bendigo and placed the operation on care and maintenance pending the sale of the project after economic ore reserves were depleted.
Lakes Oil seeks Seaspray gas
cent of the issued capital of Newport in consideration and for the sale of its Tarnagulla gold operations. Reef is also planning to swap its no liability status and switch to being a limited liability company and to change its name to Newport Capital Group Limited’. The company’s constitution will be replaced, “with one acceptable for a public company limited by shares,” while the issued capital will be consolidated on terms yet to be decided. “Following the successful passage of the resolutions to be put to the general meeting of shareholders it is expected that the ASX will allow trading in Reef shares to resume. Directors are confident that he acquisition of Newport will significantly enhance value for investors in Reef,” the statement said.
After several months researching the historic and geological significance of the Golden Beach Sands in the onshore Gippsland Basin, Lakes Oil now believes the formation has never been investigated onshore as a primary reservoir for hydrocarbons. The principle reason is that past wells have encountered problems associated with the presence of coal in the lower Latrobe section, causing caving in to occur before testing. Lakes Oil’s faith in the onshore portion of the Gippsland Basin has a strong historical link. In 1923, near Lake Bunga in Gippsland, the first well in the region was sunk, producing oil from rock chips, but the well could not be coaxed into flowing. Many more onshore wells were drilled in the Gippsland area with production occurring from an old shaft system near Lakes Entrance which utilised horizontal wells bored in from the bottom of the shaft to generate oil.
That project ultimately failed but not until it had produced many thousands of gallons of oil. Last year Lakes Oil commissioned veteran oil industry geologist Eric Webb and the highly experienced Dr Jennifer Baird to thoroughly review the previous onshore exploration in the region. That review showed that although several onshore wells had produced gas shows in the lower Latrobe and Golden Beach sands, many of the wells had been damaged by cave ins in the coal prone zones. To overcome the coal problems the North Seaspray 3 well will be cased through the Latrobe sands before drilling into the Golden Beach formation. The Seaspray structure is well plkaced, lying just 10 kilometres south of Esso’s Longford gas processing plant. In addition the main Bass Strait to Longford gas pipeline lies within 200 metres of the North Seaspray 3 well site which was located after Lakes acquired an extra 6.2 km of seismic data to fully delineate the reservoir target. “This proximity to Longford, together with the fact that the pipeline from the offshore Bass Strait fields Dolphin and Perch traverses the structure as it proceeds to Longford, will make this a most interesting well,” Lakes Oil Managing Director, Rob Annells, said. Lakes Oil currently holds a 100 per cent effective equity interest in PEP 137, subject to a 5 per cent overriding royalty to the former
25
Lakes Oil has conducted extensive seismic testing in the east Gippsland area in preparation for its new Seaspray well.
owner of the permit, Roma Petroleum NL. Mr Annells also noted that the strategic location of the Seaspray structure provided Lakes with a potential gas storage project. “The Latrobe section, which is not the primary target in our forthcoming well, would appear to be an ideal location for such storage. We estimate that the likely size of the Latrobe section could be well in excess of the 60 BCF estimated as the size of the Golden Beach trap,” he said. “Data obtained from an earlier seismic line has revealed that the structure has significant four-way dip closure and we expect the Latrobe section to be water wet”, Mr Annells added. “Gas from other locations could be stored by injection into the Latrobe sands, thus displacing the formation water.”. Lakes Oil has contracted a Melbourne-based drilling contractor for the well which is expected to take about three weeks to drill to a depth of 1,170 metres. Drilling is expected to start during May. F O R M O R E I N F O R M AT I O N C O N TA C T:
Robert Annells Managing Director – Lakes Oil NL Tel: (03) 9629 1566 Fax: (03) 9629 1624
SPECIAL FEATURE
SPECIAL FEATURE
Mt Gingee Munjie set for gold M
t Gingee Munjie sounds like the sort of place so far outback that only the hardiest adventurer might ever get there.
In some ways that’s true as only the toughest of Victoria’s early gold miners survived in the harsh eastern highlands near Omeo, but among those who did some reaped substantial rewards. Today’s new generation of gold miners are
finding the industry equally as tough but for different reasons. There is still plenty of gold around, but the cost of mining and the hurdles in gaining proper title, make mining a potentially long and slow process. But Bob Lynch and his partners in Mt Gingee Munjie Resources Pty Ltd have managed to overcome the hurdles and are set to reactivate
the old Cassilis mine in Victoria’s far east. Cassilis is similar to many early Victorian gold mines in that it generated high-grade ore from the surface along several mineralised ore shoots which the old timers chased underground. Cassilis operated for 20 years from 1895 producing around 100,000 ounces from 100,000 tonnes of ore. Free gold was recovered but the ore was reported to be refractory requiring roasting to generate bullion. A concentrate containing gold, lead and zinc was also produced. The mine and mill were closed in 1917 after the operators failed to attract new capital to deepen the Cassilis shaft. Historical records and recent exploration show the gold bearing shoots were not worked out, nor were they faulted out leaving at least five shoots containing high-grade gold ore available for further development. The Cassilis workings extend from the outcrop at surface at an altitude of 920 metres down to a worked depth of 520 metres. Access to the underground workings is via two separate adits into the side of the mountain, one at a level of 800 metres and another at the base of 520 metres. Mt Gingee Munjie Resources is targetting an overall resource within the mine of 250,000 tonnes at an average grade of 10 grams of gold per tonne. But early work in the mine has produced ore at around 18 grams with some at up to 62 grams, equivalent to two ounces, per tonne. The company currently has a mining lease granted over the workings and has established a small crushing, milling and cyanide circuit to process the ore. While the mine and mill are strictly small scale, the rich grade of the ore make it a potentially highly profitable operation. Using mostly second hand equipment, an ore crusher and secondary milling circuit have been established to process ore extracted from the underground workings. In addition, a gravity separation circuit comprising cyclones, spirals and traditional
Mine Manager and Partner, Richard Darby, leads a small but experienced team working the Mt Gingee Munjie mine.
26
We are a small show,
Right: Gold recovery rates have been raised by modifications to the mine’s gravity separation circuit.
but with the right approach
Far right: The work may be hard,
to the project we believe Wilfley tables have been set up to extract as much of the free gold as possible before the remaining material is sent to a cyanide circuit for leaching and recovery.
it can be profitable.
The plant was completed last January but only a small amount of ore was processed before a bolt broke in the crusher, sending steel fragments into the circuit and causing substantial damage. Repairs took until March to complete when ore was once again introduced to the process with gold again being produced. “We had some fairly major problems when we started commissioning the plant,” Mr Lynch said. “It’s old equipment and we should have been more careful when we started running ore through it,” he said with the resignation of a man who has worked long and hard to complete the project. The plant is rated at a tiny 1.5 tonnes an hour but the small scale of the new mining operations at Cassilis, and the focus on narrow vein mining, means that a similar volume of ore will be produced from the mine under normal production rates. Already 60 tonnes of ore grading 18 g/t has been mined through development work in the mine, some of which was used to commission the mill. However, a problem with the recovery rate in the gravity circuit was detected. After processing several tonnes of ore it was found that several grams of gold were being sent out to the tailings dam for every tonne of ore processed. This has necessitated some additional modifications to the plant to be considered to improve the recovery rate. Mr Lynch is now considering installing an InLine Pressure Jig or something similar to capture the fine gold currently being lost. Mining at Cassilis is currently being conducted on the uppermost Snake Reef with access gained from the 800 metre level adit. Mining is by hand-held air-leg drill to open stopes in narrow veins of 1.5 metres width or less. The narrow focus limits ore dilution, improving the recovered head grade of the material and reduces the volume to be processed by the mill.
The first reef to be mined will be the Snake Reef with ore progressively obtained from the Ceresa, Crisps and Cassilis then Cassilis South. Ore is carted by a bobcat loader to the surface. The current Cassilis project consists of one granted mining lease, ML842 covering 35 hectares and one application for a mining lease, Min5180, covering 50 hectares adjoining the southern boundary of ML842. The project is close to the town of Swifts Creek. The company’ project overview report says: “Underground workings from the historic mining activity and that completed in the 1980’s, endows the project direct underground access to five mineralised structures upon which strike drives are completed. “However work completed to date suggests that a proven resource cannot be economically defined by drilling. “Driving on strike and bulk sampling is the method adopted to prove reserves as access makes it feasible and development is achieved at the same time. “Within ML842 five reefs are directly exposed by accessible strike drives and sampling of these faces suggests recoverable grades that will permit profitable mining. “Two other reefs are intersected without having strike drives. All reefs have associated surface workings. These show individual strike lengths of hundreds of metres.” 27
The Snake Reef carries an inferred resource of 5,000 tonnes at 18 g/t while Crisps reef has 15,000 tonnes at 9g/t. Within the Cassilis workings is a developed but unmined block of 40,000 tonnes at a grade of around 10g/t. Mr Lynch said, “We are a small show, but with the right approach to the project we believe it can be profitable.” A small but experienced team of miners is available locally, some of which were previously employed at the Benambra base metal project, giving the project a boost by not having to search far and wide for quality staff. The Cassilis project will never be a major gold producer, but with careful planning and close attention to its cost base, many useful and profitable ounces can still be extracted from a project thought to be finished more than 80 years ago. F O R M O R E I N F O R M AT I O N C O N TA C T:
Bob Lynch – Managing Director Mt Gingee Munjie Resources Pty Ltd Phone(02) 9411 3033 Fax (02) 9918 0670 Email: [email protected]
SPECIAL FEATURE
SPECIAL FEATURE
Mt Gingee Munjie set for gold M
t Gingee Munjie sounds like the sort of place so far outback that only the hardiest adventurer might ever get there.
In some ways that’s true as only the toughest of Victoria’s early gold miners survived in the harsh eastern highlands near Omeo, but among those who did some reaped substantial rewards. Today’s new generation of gold miners are
finding the industry equally as tough but for different reasons. There is still plenty of gold around, but the cost of mining and the hurdles in gaining proper title, make mining a potentially long and slow process. But Bob Lynch and his partners in Mt Gingee Munjie Resources Pty Ltd have managed to overcome the hurdles and are set to reactivate
the old Cassilis mine in Victoria’s far east. Cassilis is similar to many early Victorian gold mines in that it generated high-grade ore from the surface along several mineralised ore shoots which the old timers chased underground. Cassilis operated for 20 years from 1895 producing around 100,000 ounces from 100,000 tonnes of ore. Free gold was recovered but the ore was reported to be refractory requiring roasting to generate bullion. A concentrate containing gold, lead and zinc was also produced. The mine and mill were closed in 1917 after the operators failed to attract new capital to deepen the Cassilis shaft. Historical records and recent exploration show the gold bearing shoots were not worked out, nor were they faulted out leaving at least five shoots containing high-grade gold ore available for further development. The Cassilis workings extend from the outcrop at surface at an altitude of 920 metres down to a worked depth of 520 metres. Access to the underground workings is via two separate adits into the side of the mountain, one at a level of 800 metres and another at the base of 520 metres. Mt Gingee Munjie Resources is targetting an overall resource within the mine of 250,000 tonnes at an average grade of 10 grams of gold per tonne. But early work in the mine has produced ore at around 18 grams with some at up to 62 grams, equivalent to two ounces, per tonne. The company currently has a mining lease granted over the workings and has established a small crushing, milling and cyanide circuit to process the ore. While the mine and mill are strictly small scale, the rich grade of the ore make it a potentially highly profitable operation. Using mostly second hand equipment, an ore crusher and secondary milling circuit have been established to process ore extracted from the underground workings. In addition, a gravity separation circuit comprising cyclones, spirals and traditional
Mine Manager and Partner, Richard Darby, leads a small but experienced team working the Mt Gingee Munjie mine.
26
We are a small show,
Right: Gold recovery rates have been raised by modifications to the mine’s gravity separation circuit.
but with the right approach
Far right: The work may be hard,
to the project we believe Wilfley tables have been set up to extract as much of the free gold as possible before the remaining material is sent to a cyanide circuit for leaching and recovery.
it can be profitable.
The plant was completed last January but only a small amount of ore was processed before a bolt broke in the crusher, sending steel fragments into the circuit and causing substantial damage. Repairs took until March to complete when ore was once again introduced to the process with gold again being produced. “We had some fairly major problems when we started commissioning the plant,” Mr Lynch said. “It’s old equipment and we should have been more careful when we started running ore through it,” he said with the resignation of a man who has worked long and hard to complete the project. The plant is rated at a tiny 1.5 tonnes an hour but the small scale of the new mining operations at Cassilis, and the focus on narrow vein mining, means that a similar volume of ore will be produced from the mine under normal production rates. Already 60 tonnes of ore grading 18 g/t has been mined through development work in the mine, some of which was used to commission the mill. However, a problem with the recovery rate in the gravity circuit was detected. After processing several tonnes of ore it was found that several grams of gold were being sent out to the tailings dam for every tonne of ore processed. This has necessitated some additional modifications to the plant to be considered to improve the recovery rate. Mr Lynch is now considering installing an InLine Pressure Jig or something similar to capture the fine gold currently being lost. Mining at Cassilis is currently being conducted on the uppermost Snake Reef with access gained from the 800 metre level adit. Mining is by hand-held air-leg drill to open stopes in narrow veins of 1.5 metres width or less. The narrow focus limits ore dilution, improving the recovered head grade of the material and reduces the volume to be processed by the mill.
The first reef to be mined will be the Snake Reef with ore progressively obtained from the Ceresa, Crisps and Cassilis then Cassilis South. Ore is carted by a bobcat loader to the surface. The current Cassilis project consists of one granted mining lease, ML842 covering 35 hectares and one application for a mining lease, Min5180, covering 50 hectares adjoining the southern boundary of ML842. The project is close to the town of Swifts Creek. The company’ project overview report says: “Underground workings from the historic mining activity and that completed in the 1980’s, endows the project direct underground access to five mineralised structures upon which strike drives are completed. “However work completed to date suggests that a proven resource cannot be economically defined by drilling. “Driving on strike and bulk sampling is the method adopted to prove reserves as access makes it feasible and development is achieved at the same time. “Within ML842 five reefs are directly exposed by accessible strike drives and sampling of these faces suggests recoverable grades that will permit profitable mining. “Two other reefs are intersected without having strike drives. All reefs have associated surface workings. These show individual strike lengths of hundreds of metres.” 27
The Snake Reef carries an inferred resource of 5,000 tonnes at 18 g/t while Crisps reef has 15,000 tonnes at 9g/t. Within the Cassilis workings is a developed but unmined block of 40,000 tonnes at a grade of around 10g/t. Mr Lynch said, “We are a small show, but with the right approach to the project we believe it can be profitable.” A small but experienced team of miners is available locally, some of which were previously employed at the Benambra base metal project, giving the project a boost by not having to search far and wide for quality staff. The Cassilis project will never be a major gold producer, but with careful planning and close attention to its cost base, many useful and profitable ounces can still be extracted from a project thought to be finished more than 80 years ago. F O R M O R E I N F O R M AT I O N C O N TA C T:
Bob Lynch – Managing Director Mt Gingee Munjie Resources Pty Ltd Phone(02) 9411 3033 Fax (02) 9918 0670 Email: [email protected]
INDUSTRY DATA
DRYDEN TECH NOLOGIES
Exploration data goes digital Timetable July 1, 2000: Tabular data submitted in digital form. Explorers encouraged to use the standards. January 1, 2001: Introduce 12-month trial period for full digital submission in line with the standards. Hardcopy will still be required. January 1, 2002: Review trial with view to full digital implementation after this date.
When compiling digital reports for lodgment with MPV, the basic requirement is to maintain the integrity of the original report and associated data. In the same way as hard copy or paper reports are lodged, digital submissions also require a clear ordering of report components to ensure that all data is included. Reports should retain the well established structure and sequence of a hardcopy report including title page, list of contents, main body of text, attachment (plans, figures etc) and appendices (additional reports, tabular data etc).
Internet/Intranet GIS Solutions
Contacts Detailed guidelines will be available from July 2000 from the Business Centre 8th Floor 240 Victoria Pde East Melbourne Victoria 3002. Phone 03 9412 5103. F O R M O R E I N F O R M AT I O N C O N TA C T:
Alan Willocks – Manager Geophysics Tel: (03) 9412 5131
SUMMARY OF REQUIREMENTS FOR DIGITAL REPORTING FILE FORMAT ASCII
PDF
JPEG, GEOTIFF TIFF(B/W), EPS, GIF
ASEGGDF2 (ASCII)
M
Main body of text (includes title page, list of contents, text, figures, tables etc)
M
Attachments Figures, maps, plates, images, photographs,
P
Figures, maps, plates, images, photographs, >A1 Tabular data* (Drilling, geochemistry, downhole logging and geochemistry)
Solutions
Report structure and sequence
REPORT COMPONENT
File verification lists*
Intranet
A
A
A
A
Solutions
Now the exploration industry has taken another major step forward through an agreement to provide all new exploration data in digital format. Through the Australian and New Zealand Minerals and Energy Council (ANZMEC) new national standards for the submission of digital data in relation to statutory reporting requirements have been developed. The standards were developed at the request of the Chief Government Geologists, an ANZMEC subcommittee. The new standards apply to statutory reporting of data on all exploration and mining leases. Minerals and Petroleum Victoria, through its active participation with the ANZMEC organisation, assisted with the development of the new digital reporting standards. From now on drilling reports, maps, plans, images, photographs and the whole range of geophysical data will be required to be lodged with the relevant authority in digital format, principally revolving around the Adobe Acrobat Portable Document Format (PDF) regime which is rapidly becoming an industry standard. The digital reporting standards provide uniformity for digital reporting by explorers across Australia and will ensure that the country’s massive investment in basic data gathering is available and more conveniently retrievable and useable for future explorers. While allowing maximum flexibility in data submission, the new standards ensure that critical metadata and supporting data are also included. Using these nationally agreed standards, Minerals and Petroleum Victoria will move towards digital reporting as part of its reporting requirements on titles. Full details of the standards for submission of mineral exploration data in digital format are available on the Department’s website at http://www.nre.vic.gov.au/minpet. Under the new standards the Department will require: • the main body of text, including smaller plans and figures, to be created in Adobe Acrobat Portable Document Format (PDF) (version 4 or later); • tabulated data such as geochemical or drilling results, to be created in delimited ASCII format and,
• large plans and maps to be lodged in PDF, JPEG or TIFF format, depending on the size of the file. To meet these requirements, explorers will require access to Adobe Acrobat software. This software allows electronic documents to be converted from their native format (e.g. Word97, Excel) to PDF format. Portable Document Format has been chosen because of its wide acceptance in industry as a standard, the ease of creation from other formats and the availability of free software to read the files and its ability to be searched for words or phrases. The software to create these files — Adobe Acrobat Version 4.0 — is also relatively inexpensive while the Adobe Acrobat Reader version 4.0 is free shareware available from the Internet on website: http://www.adobe.com/ prodindex/acrobat/readstep.html, and can be used to view, search and print or plot PDF files. Minerals and Petroleum Victoria is already actively seeking digital data. A set of templates and data requirements will now apply to these tabulated ASCII data. An application is also being developed to generate the templates and to merge the template data with the tabulated data. This application will be free and made available to the industry soon. All title holders will be directly advised of the new digital reporting standards and changes in reporting requirements and to more fully explain the changes a presentation will be made at the Chamber of Mines Exploration Forum in July. The timetable for implementation is below.
Internet
T
he digital revolution and the dawning of the electronic age has spawned a host of new mineral exploration techniques in recent years to the point where remote sensing technology is now one of the modern explorer’s most powerful tools.
Move GIS from the back office and integrate it with vital information systems. Dryden Technologies MapXtreme solutions lets you decide whether to create a complex GIS for analysts or a simple Business Intelligence system for management.
Enterprise Information Discovery Dryden Technologies MapXtreme solutions gives your organization data mining and analysis through a simple web browser. Easy Mapping Make simple mapping more accessible to all by using a Dryden solution with MapInfo MapXtreme.
M
Additional reports includes title page, contents, text figures etc Additional data figures
M As appropriate
Geophysical data
P
HEAD OFFICE: Suite 5, 412 Toorak Road Toorak Victoria 3142 Telephone: 03 9804 7500 Facsimile: 03 9827 0473
M= Mandatory A = Acceptable P=Preferred * Template software being developed
E-mail [email protected] Internet www.drydentech.com 28
®
MapInfo Strategic Partner & Technology Partner
INDUSTRY DATA
DRYDEN TECH NOLOGIES
Exploration data goes digital Timetable July 1, 2000: Tabular data submitted in digital form. Explorers encouraged to use the standards. January 1, 2001: Introduce 12-month trial period for full digital submission in line with the standards. Hardcopy will still be required. January 1, 2002: Review trial with view to full digital implementation after this date.
When compiling digital reports for lodgment with MPV, the basic requirement is to maintain the integrity of the original report and associated data. In the same way as hard copy or paper reports are lodged, digital submissions also require a clear ordering of report components to ensure that all data is included. Reports should retain the well established structure and sequence of a hardcopy report including title page, list of contents, main body of text, attachment (plans, figures etc) and appendices (additional reports, tabular data etc).
Internet/Intranet GIS Solutions
Contacts Detailed guidelines will be available from July 2000 from the Business Centre 8th Floor 240 Victoria Pde East Melbourne Victoria 3002. Phone 03 9412 5103. F O R M O R E I N F O R M AT I O N C O N TA C T:
Alan Willocks – Manager Geophysics Tel: (03) 9412 5131
SUMMARY OF REQUIREMENTS FOR DIGITAL REPORTING FILE FORMAT ASCII
PDF
JPEG, GEOTIFF TIFF(B/W), EPS, GIF
ASEGGDF2 (ASCII)
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Main body of text (includes title page, list of contents, text, figures, tables etc)
M
Attachments Figures, maps, plates, images, photographs,
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Figures, maps, plates, images, photographs, >A1 Tabular data* (Drilling, geochemistry, downhole logging and geochemistry)
Solutions
Report structure and sequence
REPORT COMPONENT
File verification lists*
Intranet
A
A
A
A
Solutions
Now the exploration industry has taken another major step forward through an agreement to provide all new exploration data in digital format. Through the Australian and New Zealand Minerals and Energy Council (ANZMEC) new national standards for the submission of digital data in relation to statutory reporting requirements have been developed. The standards were developed at the request of the Chief Government Geologists, an ANZMEC subcommittee. The new standards apply to statutory reporting of data on all exploration and mining leases. Minerals and Petroleum Victoria, through its active participation with the ANZMEC organisation, assisted with the development of the new digital reporting standards. From now on drilling reports, maps, plans, images, photographs and the whole range of geophysical data will be required to be lodged with the relevant authority in digital format, principally revolving around the Adobe Acrobat Portable Document Format (PDF) regime which is rapidly becoming an industry standard. The digital reporting standards provide uniformity for digital reporting by explorers across Australia and will ensure that the country’s massive investment in basic data gathering is available and more conveniently retrievable and useable for future explorers. While allowing maximum flexibility in data submission, the new standards ensure that critical metadata and supporting data are also included. Using these nationally agreed standards, Minerals and Petroleum Victoria will move towards digital reporting as part of its reporting requirements on titles. Full details of the standards for submission of mineral exploration data in digital format are available on the Department’s website at http://www.nre.vic.gov.au/minpet. Under the new standards the Department will require: • the main body of text, including smaller plans and figures, to be created in Adobe Acrobat Portable Document Format (PDF) (version 4 or later); • tabulated data such as geochemical or drilling results, to be created in delimited ASCII format and,
• large plans and maps to be lodged in PDF, JPEG or TIFF format, depending on the size of the file. To meet these requirements, explorers will require access to Adobe Acrobat software. This software allows electronic documents to be converted from their native format (e.g. Word97, Excel) to PDF format. Portable Document Format has been chosen because of its wide acceptance in industry as a standard, the ease of creation from other formats and the availability of free software to read the files and its ability to be searched for words or phrases. The software to create these files — Adobe Acrobat Version 4.0 — is also relatively inexpensive while the Adobe Acrobat Reader version 4.0 is free shareware available from the Internet on website: http://www.adobe.com/ prodindex/acrobat/readstep.html, and can be used to view, search and print or plot PDF files. Minerals and Petroleum Victoria is already actively seeking digital data. A set of templates and data requirements will now apply to these tabulated ASCII data. An application is also being developed to generate the templates and to merge the template data with the tabulated data. This application will be free and made available to the industry soon. All title holders will be directly advised of the new digital reporting standards and changes in reporting requirements and to more fully explain the changes a presentation will be made at the Chamber of Mines Exploration Forum in July. The timetable for implementation is below.
Internet
T
he digital revolution and the dawning of the electronic age has spawned a host of new mineral exploration techniques in recent years to the point where remote sensing technology is now one of the modern explorer’s most powerful tools.
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Additional reports includes title page, contents, text figures etc Additional data figures
M As appropriate
Geophysical data
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HEAD OFFICE: Suite 5, 412 Toorak Road Toorak Victoria 3142 Telephone: 03 9804 7500 Facsimile: 03 9827 0473
M= Mandatory A = Acceptable P=Preferred * Template software being developed
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