Discovery 027 2003-09

DISCOVERY V I C T O R I A ’ S

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INSIDE THIS ISSUE Perseverance at Fosterville Bendigo ‘Aqua Gold’ Vic Hub project links market Otway gas moving ahead Loy Yang dredges depths

A treasure of a museum in the heart of Melbourne Experience award winning permanent exhibitions: • Making Melbourne • Built on Gold • Growing up in the Old Treasury

View temporary exhibitions:

Salt of the Earth • 8 August - 7 September A Wangaratta Gallery travelling photographic exhibition by Stephen Routledge depicting images of the Murray Darling Basin.

A Tiara for Maxima • 12 September - 9 November Major international exhibition featuring 21 contemporary tiaras produced by designers from the Netherlands. Organised by the Museum of Contemporary Art, ’s - Hertogenbosch, the Netherlands.

Group tour packages: $5 introductory tour, $8 executive tour, $11 grand tour (includes refreshments). Bus parking and disabled access available. Gold Treasury Museum 9am - 5pm weekdays, 10am - 4pm weekends Old Treasury Building, Spring Street, Melbourne Group Tour Bookings, Telephone: (03) 9651 2233

DISCOVERY V I C T O R I A’ S

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contents OTWAY GAS PROJECT MOVING AHEAD

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Victoria’s natural gas supply security set to improve

MAKING BROWN COAL GREEN AND CLEAN

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Greenhouse challenge to cut brown coal emissions

LOY YANG MINE DREDGES THE DEPTHS

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Victoria’s biggest coal mine reaches its design final pit depth

ESSENTIAL PETROLEUM SHOWS THE WAY IN OTWAY BASIN

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Who said exploring for petroleum in a National Park was impossible?

PERSEVERANCE OPTS FOR BUGS AT FOSTERVILLE

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Bacterial leaching of sulphide ore to support gold production

NEW PHASE IN MURRAY BASIN BOOM

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Victoria’s mineral sands projects enter exciting development phase

BENDIGO TO PROCESS WATER INTO ‘AQUA GOLD’

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Waste water from the Bendigo gold mine and Coliban Water authority to be recycled

VIC HUB PROJECT LINKS VICTORIA TO THE MARKET

cover picture

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Natural gas trading across the state is now a reality

MINING TO START AT BENDIGO – FIRST EVER GOLD RESERVE

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The first gold pour is set for March 2005 as the sleeping gold giant starts to stir

MPI TO MAINTAIN STAWELL JOINT VENTURE

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Groundwater flows provide the base for new gold exploration in the Stawell corridor

NEW RUSH INTO VICTORIAN GOLD EXPLORATION

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It’s not a boom yet, but Victoria’s rich gold potential is starting to attract serious attention

RANGE RIVER GOLD JOINS THE VICTORIAN RUSH

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New companies are now regularly joining the Victorian exploration scene seeking to emulate the success of the past

PIPELINES, PROSPECTORS AND MINE REHABILITATION

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Interest in Victoria’s fabulous gold mining potential is reaching new heights with new companies and new technologies being utilised in the search for new gold deposits. The prospects for major gold discoveries and the development of large new gold mines has risen dramatically, despite the strengthening of the Australian dollar, which had the potential to dampen enthusiasm. Bendigo Mining is set to produce its first gold in early 2005. Perseverance is close to declaring its Fosterville project a commercial proposition and new life has been breathed into the Ballarat goldfield. Other companies are moving into Victoria in a big way and the state is attracting an ever growing share of Australia’s exploration budget. The future could not look better.

A series of new guidelines and regulations covering important parts of Victoria’s active resources sector have been released

BALLARAT – THE RETURN OF A WORLD CLASS GOLD FIELD

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Ballarat Goldfields has resumed exploration work under a new management with high expectations for success 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 MINISTERS FOREWORD

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Minister Theo Theophanous gives his views

NEWS BRIEFS

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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.

A roundup of Victorian industry news

VICTORIA’S MINERAL, OIL AND GAS RESOURCES

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Victoria’s mineral, oil and gas resources

MINERAL LICENCES

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Who’s doing what with mineral exploration licences

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. © Minerals and Petroleum Victoria 2003.

Published quarterly by the Minerals and Petroleum Division of the Department of Primary Industries. Distribution and DPI enquires to Chandri Nambiar, Manger Marketing Development, Minerals and Petroleum Division, Department of Primary Industries, Level 7, 240 Victoria Parade, East Melbourne, Vic, 3002. Tel: (03) 9412 5061 Fax: (03) 9412 5155, website: http://www.dpi.vic.gov.au/minpet/index.htm Australia Post Print Publication PP349472/00128.

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MINISTERS FOREWORD

Power for the future

Otway gas pro

When people think of future power sources for Victoria, they tend to overlook our single biggest asset – coal. Victoria has vast lignite reserves. It is our largest mineral resource and provides 85% of our electricity. Since the 1920’s it has provided secure and reliable electricity to our homes and has made Victoria the manufacturing capital of Australia. But coal’s role is not just historic – with the right technologies such as coal drying, gasification and sequestration, it can play a huge role in our future as well.

WHEN PEOPLE THINK OF FUTURE POWER SOURCES FOR VICTORIA, THEY TEND TO OVERLOOK OUR SINGLE BIGGEST ASSET – COAL.

Victorian lignite is a clean coal, containing low levels of pollutants such as sulphur, heavy metals and ash. However, being a young coal it contains a high proportion of water and produces just over half of the State’s CO2 greenhouse emissions. The Bracks Labor Government is committed to realising our economic potential, and to maximising social and environmental benefits. Our challenge is to retain our competitive advantage of cheap, reliable and secure electricity while also reducing greenhouse emissions – and we are actively addressing this challenge. I fully support the development of renewable energy sources such as wind power and solar power and recognise that these will continue to provide an increasing amount of electricity in an expanding electricity market. The degree to which these forms of energy production will expand depends to some extent on the Federal Government maintaining and expanding the Mandatory Renewable Energy Target (MRET) in line with Victoria’s submission to the MRET review.

Natural gas can also generate electricity but our reserves are limited. Our massive amounts of coal will therefore be our preferred fuel to generate electricity for many years, provided its greenhouse emissions can be significantly reduced. At the Carbon Sequestration Leadership Forum meeting in the US during June this year, I met with a number of countries to sign an agreement to cooperate in the development of geosequestration as a means of reducing greenhouse emissions. Geo-sequestration is the permanent storage of CO2 underground. That is, after the coal or gas has been extracted from the ground, it is burnt, the CO2 is captured and then pumped back deeply underground. While there are many challenges to this technology there is a willingness across the world to work together to develop it, and Victoria will play a major role in this task. Victoria is also prominent in a number of other technologies to reduce greenhouse emissions. The Victorian CRC for Clean Power from Lignite, is a world leader in drying coal, so that the coal we burn produces less CO2. The CRC is also working with the USA and research bodies in other countries to develop technologies to increase the efficiency of coal burning. Added to this is the new Victorian Centre for Energy and Greenhouse Technologies, which the Government has established to support the development and commercialisation of technologies aimed at reducing CO2 emissions.

Victoria’s natural gas supply will be dramatically enhanced by the

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evelopment of the Thylacine and Geographe gas fields off the Otway coast of Western Victoria, which will add a major new dimension to Victoria’s natural gas supply and security, is moving ahead with the completion of the environmental assessment process. Under Victorian legislation the Minister for Planning determined that the Victorian sector of the Thylacine/Geographe offshore development would be subject to an Environment Effects Statement under the Environment Effects Act 1978. The Victorian and Federal Governments agreed to a coordinated assessment process that will include the joint development of guidelines for the preparation of a consolidated environmental assessment document. Other regulatory approvals for the billion dollar project will be required under the state and commonwealth Petroleum (Submerged Lands) Acts.

I look forward to working with our industry, research bodies and the community in answering this challenge.

Woodside Energy Ltd., operator and major equity holder in the offshore gas development, is developing the Geographe and Thylacine gas fields on behalf of joint venture participants Origin Energy Resources Limited, CalEnergy Gas (Australia) Limited and Benaris International N.V.

Hon Theo Theophanous Minister for Energy Industries and Resources

The development, known as the Otway Gas Project, will extract natural gas and liquid

Reducing greenhouse emissions from our coal is a tough challenge, but one the Bracks Government is facing head on. The opportunity of low or even zero emission coal fired power stations producing reliable and secure energy is a goal worth pursuing for all Victorians.

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SPECIAL FEATURE

The base case option involves a wellhead platform at Thylacine and a subsea development at Geographe tied back via a sub-sea pipeline.

ject moving ahead

A 70 kilometre offshore raw gas pipeline running from Thylacine via Geographe to the Victorian coastline, taking natural gas and reservoir liquids to shore would form the second major component of the project. An 11.5 kilometre onshore pipeline running underground from the shore crossing will take raw gas to the processing plant. The final component is the onshore gas processing plant to be located on Waarre Road, Waarre, approximately 6 kilometres north-east of Port Campbell near the current TXU gas storage facility at IONA. Based on currently known reserves the two fields will have a combined producing life of about 30 years with the first gas expected from the development planned for mid-2006. The combined Geographe and Thylacine fields are estimated to contain recoverable reserves of about 800 billion cubic feet of dry gas and 9 million barrels of condensate. Dry gas reserves for both fields are 0.55 Tcf at the Proved Level and 0.85 Tcf at the Probable Level. Condensate Reserves are 7.0 MMbbl at the Proved Level and 10.7 MMbbl at the Probable Level.

development of the Otway Gas Project, operated by Woodside Petroleum.

hydrocarbons from the gas fields and transfer these by subsea and underground pipeline to an onshore gas processing plant. Demand for gas in south-eastern Australia is predicted to grow strongly over the next 15 years and the development of the Geographe and Thylacine gas fields will make a significant contribution towards meeting this demand, although other gas fields in the Otway Basin region, both onshore and offshore will also add to the region’s gas supply in coming years. The gas from the fields will provide new sources of supply for the SE Australia and increase Victoria’s gas supply security. Development of these gas fields will also enhance competition and security of supply in the energy market in both Victoria and South Australia. The developing networks of gas transmission pipelines, now linking Victoria’s gas grid with Tasmania, New South Wales, and shortly South Australia, is also opening whole new gas trading markets and opportunities for delivering gas to new regions and towns. The Environment Effects Statement (EES)/ Environmental Impact Statement (EIS) will assess the potential environmental impact of the project and specify measures to minimise adverse impacts. The joint EES/EIS addresses both the Victorian Environment Effects Act 1978 and the Commonwealth Environmental Protection

and Biodiversity Conservation Act 1999. A number of ‘start up’ approvals have also been sought along with the EES/EIS assessment. These include an amendment to the Corangamite Planning Scheme for the gas processing plant under the Planning and Environment Act 1987 (Victoria), a works approval for the construction and operation of the gas processing plant under the Environment Protection Act 1970 (Victoria); and a permit to own and use a gas pipeline under the Pipelines Act 1967 (Victoria). The Geographe and Thylacine gas fields are located in separate Commonwealth petroleum exploration permits VIC/P43 and T/30P and lie 55 and 70 kilometres south of Port Campbell in water depths of 85 and 100 metres. The fields were discovered in May 2001 when an exploration well on the Thylacine field found a 281 metre thick gas column. That discovery was followed by the Thylacine 2 appraisal well which found a 230 metre gas column in August 2001 which later produced a 28 million cubic feet a day flow rate during testing.

At the planned production rates of 60 petajoules of gas a year the two fields are estimated to contain sufficient natural gas to provide more than 10 per cent of current annual demand in southeastern Australia for at least 10 years and could be in production for much longer. Once the exhibition of all EES/EIS documents is complete in late August, the Department of Sustainability and Environment will then arrange a panel hearing to consider all submissions lodged which will then make recommendations to the Victorian Minister for Planning concerning the proposed development. The Minister will consider these recommendations in her assessment of the project. The proposed development will also be assessed by Environment Australia and the Commonwealth Minister for the Environment and Heritage. FOR MORE INFORMATION CONTACT: Annalisa Grubisa External Affairs Coordinator Otway Gas Project Woodside Energy Ltd

In May/June 2001 the Geographe 1 exploration well discovered gas in a 240 metre gross gas column.

250 St Georges Terrace

The key elements of the development will be finalised following further assessments but will comprise either subsea production wells or wellhead production platforms at one or both gas fields.

Fax: (08) 9220 1948

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Perth WA 6000 Tel: (08) 9348 4922 Toll-free: 1800 678 151 Website: www.otway.woodside.com.au

SPECIAL FEATURE

Making brown coal green and clean

Victoria’s vast brown coal resources will fuel the state’s power generation for decades, but only if the massive greenhouse challenge can be overcome.

oal is critical to Victoria’s economy, supporting jobs and life style by providing cheap, secure and reliable electricity. However, one of Victoria’s biggest policy priorities is its greenhouse challenge – to reduce greenhouse emissions and coal produces more than one half of Victoria’s emissions.

August is an example of the Governments commitment to reducing CO2 levels associated with Victorias energy production.

Victoria therefore has a challenge to protect and grow its economy while also reducing greenhouse emissions. While the Government continues to support the development of renewable energy it recognises that coal will be the major source of electricity for many years. The Government is therefore supporting research and development that will lead to low greenhouse emissions from coal. Victorian coal fields also contain three time as much stored energy as the North West shelf of Australia and we are looking at other ways to use this huge resource.

Victoria’s Resources Minister, Theo Theophanus, recently visited the US as a leading participant in the inaugural Carbon Sequestration Leadership Forum (CSLF). This forum brought together leaders from around the world to agree to work cooperatively to develop this technology. Sequestration is putting the CO2 deeply underground into permanent storage, in a similar way to the natural storage of gas and oil. Fourteen countries including the US and EC signed the Charter.

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The Centre for Energy and Greenhouse Technologies, which was launched by the Government in the Latrobe Valley on Friday 7

The Government also supports two Co-operative Research Centres studying coal drying and gasification technologies and also the geo-sequestration of CO2.

The head of the Minerals and Petroleum Division of the Department of Primary Industries, Dr Richard Aldous, has also recently returned from a tour of several countries 4

where he studied the latest greenhouse abatement technologies. In conjunction with the CRC for Clean Power from Lignite, he also explored arrangements with a US based company to test Victorian coal using new technology that may be suited to our future needs. In June the Victorian Government issued ‘The Greenhouse challenge for energy – Driving investment and reducing emissions’ discussion paper to encourage further discussion and help develop future government policy in this critical issue for Victoria’s economy and the environment. Launching ‘The greenhouse challenge for energy’, Mr Theophanus and the Minister for Environment, John Thwaites said active community discussion on how to balance the environmental, social and economic imperatives facing the energy sector was vital. Mr Theophanous said, “This consultation paper is the first step towards establishing Victoria’s very own energy sector emission reduction scheme.”

SPECIAL FEATURE

“Our priority is to provide Victorian consumers with a reliable, affordable and sustainable energy supply. To do so we need to give business enough certainty so that we can achieve appropriate new investment in the energy sector.” The consultation paper is designed to build on the $100 million Victorian Greenhouse Strategy released last year which could reduce greenhouse emissions by up to 8.3 million tonnes a year – the equivalent of taking threequarters of all Victorian cars off the road.

Greenhouse challenge paper Victoria has substantial energy resources (brown coal, gas and wind), but government and the community are keen to reduce the greenhouse gas intensity of energy production. The greenhouse challenge for energy paper notes that, “Achieving (this) goal is an important challenge that requires policy leadership by government and concerted action by industry and the community. The discussion paper aims to help develop policy to support the reduction of greenhouse emissions from energy supply and use while maintaining a secure, efficient and affordable energy supply. The paper notes that the electricity sector has a key role in meeting the challenge of reducing Victoria’s greenhouse emissions. This sector contributes 55 per cent of total emissions, a level which has grown by 41 per cent in the last decade. The paper also notes that energy consumption is projected to continue to grow strongly in coming years through economic growth, population growth and rising living standards. That presents two challenges, the paper said. The first is to find measures to reduce greenhouse emissions from the energy sector and the second is to improve energy efficiency. A starting point for the consideration of future policy options is a review of the policies and the impact of measures adopted in other jurisdictions.

Policy measures vary widely across Australia and internationally while the coverage of measures ranges from the entire stationary energy sector to specific energy sources or classes of energy users. The measures also include leaving the choice of abatement solutions to markets within a framework of economic incentives (for example, in emissions trading schemes) to those in which governments or government agencies specify mandatory abatement solutions. An example of effective cooperation between Government and industry to achieve both growth and greenhouse reduction was the recent award of two exploration licences over some of the vast brown coal areas of the Latrobe Valley. A third licence is currently still being developed. These licences provide limited access to the coal while companies develop their projects. They also carry an obligation to achieve low greenhouse emissions that are better than current world’s best practice.

Abatement methods Research around the world is developing new technologies with the aim of achieving zero or near zero greenhouse emissions. These may be divided into three areas: • Preparation of the coal before it is burnt, particularly drying, • Increasing efficiency of the combustion of the coal, particularly gasification, and • Capturing and storing the CO2, through geo-sequestration.

Coal drying Victorian lignite (brown coal) contains over 60% water when it is mined, locked up in its cellular structure. A large amount of energy in the coal is therefore used to evaporate that water during combustion in a boiler. This significantly increases the level of CO2 produced per unit of energy. If the level of water in lignite was reduced prior to combustion, greenhouse emissions would be significantly reduced. Existing power stations are designed to use high moisture content lignite. However it is possible that these could operate, without significant modification, on coal with 50 per cent less moisture which would reduce CO2 emissions by around 15 per cent.

The 2000 megawatt Loy Yang A power station.

Coal is heated and squeezed to break its cellular structure and force the moisture out. This technology is being developed with the aim of being able to provide continuous coal to feed future large power stations. It may also be able to be fitted in discrete units to existing power stations. The CRC recently operated a test rig producing continuous dry coal and its one tonne per hour pilot plant is being modified to conduct further testing. If the technology can be proven at the one tonne per hour scale, it is proposed to construct a 15 tonne per hour pilot plant ($5 million). Following the 15 tonne per hour pilot plant a commercial 120 tonne per hour plant is proposed, subject to the availability of funding ($A20 to $A25 million). Studies into coal drying are also being conducted in Germany and the Government and the CRC are monitoring that research.

Coal gasification Coal gasification is a process which converts coal to a gas (syngas) which can then be used in a gas turbine to drive electric generators. This process is more efficient than current pulverised fuel boilers and steam turbine combinations. The heat from the gasification process and the heat from the gas turbine can also be used to generate steam which can be used in a steam turbine to drive additional generators. The combination of a gasifier, gas turbine and steam turbine is called Integrated Gasification Combined Cycle (IGCC) and efficiencies approaching 50 per cent can be achieved, a vast improvement on existing thermal efficiencies of standard boilers. Gasification is likely to be the most effective means of increasing the efficiency of combustion of coal to produce electricity and IGCC can significantly reduce emissions from new power stations. One of the companies granted an exploration licence in the Latrobe valley APEL, is proposing to use a gasifier and to convert the gas into liquid diesel fuel. The other company HRL, is proposing to develop a demonstration IGCC plant to generate electricity.

New power stations, designed to use dry lignite, could reduce CO2 emissions by 30 per cent over present levels.

Sequestration of CO2

The Melbourne based Cooperative Research Centre for Clean Power from Lignite has been researching coal drying techniques for ten years and has found that the technology most likely to succeed is the Mechanical Thermal Expression (MTE) process which does not require energy to evaporate moisture.

Sequestration of CO2 is the storage of the gas after it has been produced. There are several types of sequestration although geo-sequestration is the most suitable for the large amounts of CO2 emitted from a power station. Geosequestration is permanently storing the CO2 deep underground.

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SPECIAL FEATURE

Reducing CO2 emissions from the combustion of brown coal is the major greenhouse challenge facing Victoria.

Geo-sequestration is being developed in Australia and internationally as a means of reducing CO2 emissions with the long-term aim of achieving zero emissions. Geo-sequestration requires three stages to achieve permanent storage. The capture and separation of CO2 from a stream of gas (eg the flue of a power station), transporting the gas to a sequestration site and injecting of the gas below an impervious cap where it can infuse into the rock structure, a deep aquifer or into voids such as depleted petroleum reservoirs. Geo-sequestration is currently used as a means of enhancing petroleum extraction by injecting CO2 into a petroleum reservoir. The technology is therefore proven in principle although it needs to be further developed before it can be used as a commercial means of storing the large volumes produced by a power station. One of the major issues is to develop technologies to separate and capture the CO2 from the flue gas. Other issues are the cost of sequestration, international and local community acceptance, legal liabilities and technical standards.

Australia is a world leader in the identification of suitable sites for geo-sequestration. The Australian Petroleum Cooperative Research Centre (now the CO2 CRC) has studied the action of CO2 underground and has identified a range of factors necessary to identify a suitable site. These include seismic stability, the nature of the underground material, sufficient volume, an impervious cap and proximity to a significant source of CO2. This has enabled the CRC to identify a number of suitable sites across Australia, mostly deep underground saline aquifers. There are a number of suitable sites for geosequestration in Victoria off shore from the Latrobe Valley.

New technologies to reduce greenhouse emissions are being developed and these will provide future opportunities for coal to continue to be a major economic contributor to our economy. Once a coal drying technology has been developed there may also be other opportunities such as offering our coal as an export product. Black coal is already Australia’s largest commodity export. Other opportunities may also arise and one of the most exciting is to use coal to produce hydrogen, as we move towards a possible future hydrogen based society. The Government is therefore committed to support the achievement of greenhouse gas reductions from our brown coal.

Geo-sequestration is therefore a practical means of permanently putting the carbon back in the ground after it has been used to produce energy. However, there is still considerable research necessary to reduce the cost and confidence in the capture, separation and sequestration of CO2.

Naturally occurring CO2 reservoirs show that geo-sequestration can provide a permanent storage. Victoria already operates a commercial CO2 extraction facility near Port Campbell from a naturally occurring underground reservoir, a reservoir that has stored CO2 for tens of thousands of years.

The future of coal

As well as developing practical and efficient technologies, geo-sequestration is dependent on the identification of suitable sites, the acceptance by international and local communities and the development of appropriate legislation.

Coal is a clean fuel, low in emissions of sulphur, heavy metals and ash. What emissions produced are controlled at the source and not released into the atmosphere. The challenge is therefore to reduce greenhouse emissions.

Victoria has vast reserves of coal, enough to last for more that 500 years at current rates of consumption. Coal is the mainstay of our economy, supporting all of our industry and our homes.

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Section through the Latrobe Valley coal seams showing variations in contained moisture and sodium.

FOR MORE INFORMATION CONTACT: John Lambert Manager – Minerals and Petroleum Policy Department of Primary Industries Tel: (03) 9412 5068

SPECIAL FEATURE

Loy Yang mine dredges the depths

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he vast brown coal mine at Loy Yang in the Latrobe Valley has been deepened to 58 metres below sea level, the base of the pit under the present mine plan. Loy Yang Power has relocated its brown coal mining equipment facilities, including dredgers and conveyor belts, to a depth of almost 170 metres below the surrounding land surface. That will make it the deepest mine in the Valley to add to its already impressive list of credentials. The Loy Yang mine is already Australia’s biggest coal mine producing 31 million tonnes of coal and 3 to 4 million cubic metres of overburden each year. In a program which started in May the conveyor system was lengthened by 146 metres and lowered 27 metres to the bottom of the mine. The three-stage process was complex as it had to be achieved while maintaining a steady flow of coal to the power station to ensure an uninterrupted electricity supply. Although relatively soft and burdened with a high moisture content, brown coal is Victoria’s most accessible and cost-efficient fuel for electricity generation. While its moisture content of around 62 per cent as it comes from the mine, it also boasts a very low sulphur and ash content. The Latrobe Valley coal seams vary in thickness from 130 to 170 metres and are covered with an average nine metres of overburden of soil and clay. The coal seams are also separated by thin layers of inter-seam material which has no energy value and is removed as overburden. Huge electric-powered bucketwheel dredgers, 50 metres high and 190 metres long are used to excavate the coal in the vast Loy Yang open pit mine although another mine in the Latrobe Valley has switched to a bulldozer and truck style of coal excavation. The dredgers can produce 4,000 tonnes of brown coal an hour, enough to bury a house within minutes. The coal is transported from the pit by conveyor belt to a 70,000 tonne capacity raw coal bunker at the power station. Coal is supplied directly from the bunker, also by conveyor belt, to three customers located at

The Traralgon Creek continues to provide abundant fishing opportunities for local anglers.

the ‘mouth’ of the mine including the 2000 megawatt Loy Yang A power station, the 1000 megawatt Loy Yang B power station operated by Edison Mission Energy and a pulverised, dried brown coal plant operated by Lurgi which provides auxiliary fuel for the Edison Mission power station. Overburden and inter-seam material from the mine is sent to a nearby overburden dump which is being progressively rehabilitated to pasture and bushland.

increase contact time with the vegetation lining the channel. Rocks have been placed in the channel and the area planted with native water grasses and plants. The work has been highly successful with stocks of brown trout and golden perch regularly being caught in the channel.

In the future the majority of the mine overburden will be returned to the mine itself.

Fish have begun to congregate in the aerated waters of the channel where the rich food supply has resulted in good growth rates in the fish stocks said Loy Yang Power infrastructure services operations officer, Frank Kappl.

Wetlands are also being developed on rehabilitated land and have become the home for swans and pelicans.

“Native trees have been planted along the banks of the channel and it has been designed to be inviting to the public.”

As part of its water handling facilities Loy Yang Power has recently completed major improvements to its water settling pond area and discharge channel.

“The quality of the settling pond water being discharged into the Traralgon Creek is exceptional which is evidenced by the numbers and sizes of the fish being caught.”

The 300 metre long discharge channel carries water from the settling pond to the Traralgon Creek. In the recent modifications a badly corroded, corrugated steel channel was replaced with a series of four ponds which slow the water being discharged to reduce erosion and 7

FOR MORE INFORMATION CONTACT: Gerald May Manager, Public Affairs Loy Yang Power Tel: (03) 5173 2462

SPECIAL FEATURE

Essential Petroleum shows the way in Otway xploring for oil and gas in a national park in Australia has long been considered an impossible dream.

This was a long process that included a detailed submission for review by the National Parks Advisory Council, which is required to make a recommendation to the Victorian Minister.

There is understandably high levels of concern in response to proposals and typically the comparison is always drawn to the potential for exploration on the Great Barrier Reef in Queensland or in other highly sensitive areas.

Once these steps were cleared, the submission then had to sit for a minimum of 14 days before both houses of State Parliament.

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But in Victoria, one of the country’s smallest oil and gas explorers persevered and gained access. Essential Petroleum recently completed a three dimensional seismic survey in the Lower Glenelg National Park, condoned by environmental activists and assisted by environmental specialists and consultants. In doing so Essential Petroleum has overcome what many industry pundits thought were insurmountable hurdles to securing access to large areas of the lightly explored Otway Basin in the state’s south-west. Managing director of the Melbourne-based company, John Remfry, says perseverance and teamwork involving people with the right skills were the key factors in securing the consent to explore. Winning all the right approvals took three years of patient negotiations with traditional landowners and Government but eventually the company gained permission earlier this year to conduct a major seismic survey in its 100 per cent held onshore permit PEP 151 in the far southwestern corner of Victoria. The 255-kilometre survey, traversing an area around the town of Nelson, was conducted on land that is both under Native Title claim and which lies partly within the Lower Glenelg National Park. It is the first time that access to explore for petroleum in a National Park has been granted in Victoria. The survey was conducted in May and June. The final environmental audit from Ballarat University is currently underway but the survey is already being viewed favourably by Parks Victoria and the Victorian government for successfully managing any impacts on park values. The journey to the successful completion of the survey took three years – a long time for any explorer and even more difficult for a young company such as Essential Petroleum, which listed on the Australian Stock Exchange in February 2001 and which was formed less than four years ago.

Reliable radio communications is central to the success of any seismic survey. One of the many innovations employed in the Nelson Seismic Survey to enable reliable communications, was to suspend a radio antenna from a helium filled balloon above the tree canopy.

Mr Remfry said success was mostly a result of company’s dogged determination, but there were many factors involved. “From the very beginning, when we applied for a 100 per cent interest in PEP 151, we did so on the basis that Crown Land would be included. Under the relatively new Petroleum Act in Victoria, that meant we would first have to negotiate exploration access with Native Title claimants over the area, the Gunditjmara people.” “So from the outset we set big challenges. We knew we would have to be patient and persistent, but we always believed that it would be worth our time and effort.” An access agreement with the Gunditjmara was achieved in mid-2002, the first such deal between an oil and gas explorer and Native Title claimants in Victoria. Mr Remfry says Essential Petroleum’s success, where others are still trying to reach agreement (including Origin Energy, the operator in neighbouring permit PEP 150), is due to the “exceptionally good relations” the company has forged with the elders of the Gunditjmara People. “We are a pragmatic company and we have found the elders of the Gunditjmara to be of similar mind. So when we said let’s just focus on negotiating an exploration agreement, with a production agreement to follow, they were happy to take this approach. It has been an excellent way to build a relationship and for both parties to gain a genuine understanding and respect for each other.” Once the exploration consent was agreed with the Gunditjmara, Essential Petroleum applied to the Victorian government for the right explore on Crown Land in PEP 151, including access to explore in the Lower Glenelg National Park. 8

Essential Petroleum gave itself the best chance of gaining approval by making clear its intentions not to drill in the Park and by designing an innovative seismic survey that was conducted on existing roads and tracks. This minimised disturbance of the Park and helped ensure that any disturbance would be transient. The Nelson seismic survey used the latest 3D technology to “undershoot” the Park from existing roads and tracks. The survey design meant making sacrifices about the amount of information collected from depths above 1200 metres, but Mr Remfry said this was an “entirely acceptable trade-off” for high-quality, 3D data at the depths of interest which could not otherwise be collected because of the environmental sensitivity. Consent to explore came with a long list of conditions. In fact, the operations plan for the survey – the master document that sets out every detail of how the survey would be conducted and measured for compliance with all the environmental, cultural and heritage rules – is a huge document almost 10 centimetres thick. It includes conditions such as washing down the survey trucks to remove foreign plant material before entering the park, and engaging a consultant botanist to determine the exact location of sensitive survey lines. “If the rules don’t say it can’t be done, then it probably can, provided you genuinely care about the interests of all your stakeholders,” Mr Remfry said. “In our case, that meant negotiation and paying careful attention to what Parks Victoria and the State Government asked for. After all, they are the custodians of these areas for all Victorians and we have to respect the rights of every user.” Essential Petroleum’s internally developed corporate governance documents the company’s approach to working with its many stakeholders. “Under our corporate governance model, fiscal, legal and commercial responsibilities are an absolute given – these are just the starting point for success. We overlay these with social, environmental and community obligations to guide the way we do business.”

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“The multiple layers in our model leave us with a narrow path for progress, but it has been fundamental to the ‘firsts’ we have achieved. As a bonus, it also means decision making is straightforward – we have a clear map and it always tells us the correct path to follow,” Mr Remfry said.

Basin

He added that the successful completion of the survey showed what could be achieved when all parties worked together and respected each other’s objectives. “Essential Petroleum and all involved including, Parks Victoria, the Departments of Primary Industries and Sustainability and Environment and the Gunditjmara, have created a great example of what can be achieved. We have shown that the oil and gas industry can get access to explore and work with environmental and cultural stakeholders to achieve common goals.”

Essential Petroleum will spend the next few months processing data from the Nelson seismic survey to firm up prospects and leads. The company believes PEP 151 hosts oil accumulations in the onshore parts of Otway Basin a theory which is gaining credibility with the petroleum industry as more exploration is conducted in the area. So far a number of small to medium gas fields, some of which have been in production for a decade or more, have been found onshore, but no commercial oil discoveries have yet been made. If Essential is right, and it finds a commercial oil field onshore, it could prove to be a corporate bonanza as the oil is within easy trucking distance of oil refineries in Geelong and Melbourne which may provide a ready market.

However oil discoveries depend on drilling and while Essential Petroleum will not drill from the National Park surface the company expects the seismic data to reveal prospects both outside and inside the park area, as well as some which may underlie both. Deviated drilling from outside the National Park boundaries may be used to access targets which lie under the Park’s surface if such prospects are discovered. For many companies the strategies adopted by Essential Petroleum for exploration and discovery may seem too difficult. But John Remfry believes perseverance and attention to the interests of all stakeholders is a model which will eventually provide success.

Glenelg river.

FOR MORE INFORMATION CONTACT: John Remfry Managing director Essential Petroleum Resources Ltd Tel: (03) 9699 3009 Website: essentialpetroleum.com.au 9

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News Briefs Medal Awarded

Origin Energy buys Victorian LPG business Gas and electricity utility company, Origin Energy, has expanded its Victorian energy operations through the acquisition of Shepparton based LPG supplier, Hylemit Pty Ltd, trading as Treston Gas. Through the acquisition Origin has added annual LPG sales of around 12,000 tonnes to its local operations cementing its position as one of the leading energy retailers in the state, with 1 million Victorian customers.

Clive Willman.

Under the terms of the agreement, Origin acquired 100 per cent of the business, which will continue trading under the Treston brand name and will retain the existing staff.

But deciding that his future lay with structural geology, Mr Willman completed an MSc at Monash University, supervised by David Gray, unraveling the role of rock deformation in gold mineralisation in the Central Victorian gold province, a work which today provides the basic reference for the style of deformation and mineralisation in the region. Mr Willman joined the Geological Survey of Victoria in 1989 and is recognised as a key part of the division’s mapping team, working in the Bendigo and Castlemaine goldfields and in many projects in eastern Victoria. Mr Willman has worked in industry for many years, spending time with WMC Ltd as well as smaller companies including Coopers Creek Mining and Exploration NL, and did a spell with East-West Minerals in Colorado.

For more information contact: Justine Leadbetter, Public Relations Manager, Origin Energy on (03) 9652 5836 or email justine. [email protected]

Australia’s biggest wind farm starts production The first towers at the 52.5 megawatt electricity generation facility, utilising 35 individual wind generators began generating power on July 25 but the remaining towers are expected to be operational by September.

Mr Willman, a geologist with the Geological Survey of Victoria, specialises in the geological mapping area and played a major role in writing the ‘Tasman Fold Belt System in Victoria’, a special production of the Geological Survey of Victoria.

But he has not always followed his vocation as a geologist, playing for a time in the Mulga Bill’s Bicycle Band and spending several years as a youth worker.

The Hylemit acquisition represents the latest expansion in Victoria for Origin Energy, following the purchase of the electricity retail business of CitiPower in August 2002.

The first electricity has been generated at the Challicum Hills wind farm near Ararat, a project destined to become Australia’s largest wind farm.

The Geological Society of Australia Victoria Division has awarded its 2003 Selwyn Medal to Clive Willman. The award recognises significant contributions of high calibre to any field of Victorian geology.

Clive Willman graduated with Honours from the University of Melbourne in 1971.

find and secure opportunities for expansion where it delivers value and leverages our market position,” Mrs Moses said.

The farm will produce enough electricity to supply the equivalent of 25,000 Victorian homes and cut large volumes of greenhouse gas. Karen Moses.

Origin said the location of the Treston business was strategically important, providing overlap with both its electricity and natural gas customer base in the region. Origin’s executive general manager, wholesale and trading, Karen Moses, said the acquisition strengthened Origin’s LPG position in Victoria. “The purchase gives Origin the ability to give customers a multi-fuel offer, together with associated products and services, within a single geographic marketplace,” she said

Project developer, Pacific Hydro, has pre-sold the power from the project to gas and electricity utility group, Origin Energy under a 15 year power purchase agreement. Pacific Hydro general manager – wind energy, David Hastings, said, “Compared to other electricity generation infrastructure the process of building a wind farm is relatively straightforward, so once construction begins we can be reasonably confident of remaining on schedule, barring inclement weather.” “Rehabilitation and revegetation works are already underway under the completed generators,” Mr Hasting said.

“Origin Energy’s products in Victoria include natural gas, electricity, the Origin Energy Shop network, and service and installation capability. By expanding our LP Gas operations we increase our opportunities to offer a multi-fuel package to homes and businesses throughout the state,” she added. “Origin’s LP Gas business has continued to improve over the past three years and this acquisition is evidence of our commitment to 10

Wind Turbine.

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News Briefs VIMP data showcased

The 15th release of data from the Victorian Initiative for Minerals and Petroleum, released in late May has again highlighted the value of the exploration initiative for Victoria. New maps and other tools were released by the Geological Survey of Victoria including new geological mapping tools for the Victorian goldfields and the first ever seamless magnetic image of the entire state. The VIMP program, conducted over the past ten years has had major benefits for Victoria. Exploration spending has grown steadily with Victoria now attracting close to 6% of national expenditure, compared with around 2% before VIMP started. Victorian mineral exploration spending in the March quarter this year was $12.1 million compared with $8.9 million for the previous quarter and $8.4 million for the March 2002 quarter. For the year to March 2003, exploration expenditure was $42.9 million. This compares with $31.1 million a year earlier. A function held to mark the latest release of VIMP data was attended by more than 120 mining industry representatives and the Victorian Minister for Resources, Theo Theophanus. The data release was followed by a field trip to the Castlemaine area and to study the regolith of the Ballarat East and Creswick areas.

VIMP data releases provide dramatic evidence of the popularity of Victoria as a place to explore. Exploration has boomed since the Victorian Initiative for Minerals and Petroleum got under way more than five years ago.

Web mapping using Mapshare A new web mapping application allowing users to search Minerals and Petroleum Division geospatial databases and display the results as maps or tables has been launched as part of the 15th VIMP data release. The web mapping application has been built using the Department of Primary Industries and Department of Sustainability and Environment’s web mapping infrastructure ‘Mapshare’. It uses ESRI ArcIMS software which links directly into the Departments SDE Oracle databases. The application is a simple HTML implementation of the ESRI ArcIMS out-of-the-box system with a few added components such as the ability to produce Adobe Acrobat pdf plots and to display the mouse X-Y co-ordinates. 11

MapShare is the first step in the Minerals and Petroleum Division ‘Deeply on-line’ project which aims to provide clients with on-line access to all departmental services and databases. MapShare is expected to have far-reaching consequences for MPD clients on the way they go about their business. Future developments may include on-line entry of mineral exploration licence applications, on-line data delivery, folders, dataset grouping, the ability to switch between coordinate systems and projections and the addition of extra datasets. To access the application visit www.dpi.vic.gov.au/minpet and click on the MapShare mapping tool. For more information contact: Robert Lane, Minerals and Petroleum Victoria on (03) 9412 5070 or email [email protected]. gov.au

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Perseverance opts for bugs at Fosterville

Drilling for sulphides in Falcon pit.

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acterial leaching of gold from the rich sulphide ores of the Fosterville project in central Victoria has been selected by the company as it moves towards a resumption of commercial gold mining at the project. The patented BIOX™ process pioneered by Gold Fields Ltd of South Africa was chosen in preference to an alternative process, Pressure Oxidation, which is also in use at various projects around the world. A gold mine processing about 800,000 tonnes of gold ore a year to produce around 100,000 ounces of gold a year is being considered with a final investment decision due later in the year. Plans for the mine have been accelerated by the decision of the Victorian Government to expedite planning approval for the project. Resources Minister, Theo Theophanus determined that an existing Environmental Effects Statement for the sulphide mine proposal was suitable for the new mine proposal, saving substantial time and reducing the cost of resuming mining at Fosterville. BIOX™ is a patented bacterial process designed to break down the sulphide lattice that contains the gold in the Fosterville ore. The gold can then be extracted from the bacterial solution using a conventional cyanide based system. Perseverance earlier selected the BIOX™ process but the project was put on hold before a significant new exploration program dramatically expanded the sulphide ore resources at the project, forcing a re-evaluation of the entire

mine concept. In a statement to the Australian Stock Exchange Perseverance executive chairman, John Quinn, said the company had conducted extensive research and analysis on Fosterville material at Gold Fields BIOX™ research facilities in South Africa. He said those studies showed that the Fosterville ore could be readily oxidized by either the bacterial or pressure oxidation process, with no apparent difference in overall gold recoveries. “Gold recoveries via the BIOX™ process are expected to be 90 per cent or greater,” Mr Quinn said. He added that Perseverance representatives also visited Ashanti’s Obuasi BIOX™ and Placer’s Porgera pressure oxidation based operations to obtain a first hand understanding of operability, cost and maintenance issues associated with each technology. “Ashanti and Placer have operated the alternate technologies to treat material that is broadly similar to Fosterville material for many years.” “These visits and investigation of other comparable operations confirmed that both technologies are well established and proven,” Mr Quinn said. “Concurrently the company’s engineering consultants generated capital and operating cost estimates to similar confidence levels for each technology. These cost estimates enabled economic comparisons to be undertaken.” The statement said that the key reasons for selecting the BIOX™ process were its capital and operating cost advantages, higher confi12

John Quinn talking to Silver city drillers, Tony Cox and Shane Hoshins.

dence levels in the process based on more extensive testing and greater flexibility for the process to be scaled up. Perseverance has signed a Licence Agreement with Gold Fields which provides for the use of the BIOX™ patented process and for engineering and metallurgical support from Gold Fields during the design, construction and commissioning of the BIOX™ circuit.

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A bankable feasibility study into the development of an 800,000 tonne a year mine and treatment facility is due to be completed in the third quarter this year.

That extended the Phoenix Shoot by 25 per cent, and this ‘very persistent’ structure remains open, the company reported.

The Fosterville project contains an estimated gold resource of 1.15 million ounces.

The report said in-fill drilling is required to fully determine the gold contained in the latest extension.

Mining and processing of oxide ore stopped at Fosterville two years ago when the company resumed drilling to expand its sulphide resource.

“However, in light of the consistency of the mineralisation in the Phoenix shoot it is expected that in time, a significant increment to the resource base will be generated, said Mr Quinn.

Drilling recently has concentrated on the rich Phoenix ore shoot which has produced a major expansion of the gold resource at the mine.

“Drilling during the quarter has indicated that the Phoenix Shoot is developed over 2000 metres down plunge and is well mineralised at the deepest intersection made to date.”

In its March quarterly report Perseverance said that drilling had intersected the Phoenix Shoot 400 metres down plunge from the previous deepest drill holes.

“The Phoenix Shoot is known to be very consistently mineralised over 1600 metres down plunge prior to the current drilling. It has been

demonstrated to contain approximately 800,000 ozs of gold of the total 1.15 million ounce highgrade resource previously reported in the Central Zone.” Perseverance is planning a mine and treatment facility to produce approximately 100,000 ounces a year for at least ten years. FOR MORE INFORMATION CONTACT: John Quinn Executive chairman Perseverance Mines Mobile: 0412 381 081 Email: [email protected]

New phase in Murray Basin boom Technical work on this option is continuing and the timing of the start up of construction work and first production from the mine is currently planned for late 2003 and late 2004 respectively.

M

ineral sands developments in the Victorian portion of the Murray Basin have moved into a new phase as second generation projects move towards production.

In parallel to the PFS, Iluka has also investigated opportunities to optimise mineral processing operations in the Murray Basin, taking into account both short and long-term processing requirements. This work has focused on zircon and rutile processing with the objectives of accelerating the start up of mining and reducing or deferring capital expenditure on processing plant and equipment.

Murray Basin Titanium, operator of the Wemen project near Horsham, is moving ahead with studies of its Ouyen mine project where commercial production is planned when Wemen closes in about two years. In the meantime MBT has closed its mineral separation plant at Thurla, in the state’s northwest in favour of trucking the mineral concentrates to Western Australia for processing. The Thurla plant, which has fallen victim to the small scale of the Wemen project and the impact of the rising Australian dollar, is likely to be re-opened when the bigger scale Ouyen mine starts operations. Changes in global demand for mineral sands products has also affected some of the early enthusiasm for Murray Basin developments, although a recent mineral sands conference in Melbourne heard from many speakers that the Murray Basin remains major future supplier. One project which is moving ahead towards commercial production is Iluka Resources Limited’s Douglas project near Horsham. The Company is planning to mine mineral from its Douglas site and transport mineral concentrate to a mineral separation plant in Hamilton. The Douglas project will require an investment

Douglas test pit.

of more than A$140 million and is one of Iluka’s major development opportunities. The Southern Grampians Shire Council unanimously approved the Planning Permit Application for the Separation Plant in February. The Application was subsequently appealed and the Victorian Planning Minister, Mary Delahunty, took responsibility for the final decision by ‘calling it in’. An internal Planning Department hearing was held on 16 July and a final decision on planning approval is expected by September. The company has completed a pre-feasibility study (PFS) for the development of the Douglas minerals sand project. The study has focused on refining the original plan to develop the Douglas stage-1 mine near Horsham and a large-scale minerals separation plant near Hamilton to produce finished products in 2005. 13

Iluka’s management expects to finalise its assessment of these opportunities in time to provide a more detailed analysis and to take an investment proposal to the Iluka board later this year. Iluka Resources is a major international mining and processing group, employing 1500 people and generating more than $800 million a year in revenue. It has mineral production and processing operations in Australia and the United States. FOR MORE INFORMATION CONTACT: Jordeana Cain Community Relations Manager Murray Basin – Iluka Resources Ltd Tel: (03) 5551 2306 Mobile: 0407 771458

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Victoria’s mineral, oil and gas resources

15

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Bendigo to process water into ‘Aqua Gold’ “The reality is we simply can’t harvest any more water from our existing catchments. So to provide enough water for the continued growth of the Bendigo region, we’ve got to educate our customers to conserve water – as well as look for some viable alternative sources,” Mr McKern said.

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recious water resources in drought stricken central Victoria, presently allowed to evaporate or flow away down streams, are destined to sustain stock, grow crops and help keep parks and golf courses green under an alliance between Bendigo Mining and the central Victorian water authority, Coliban Water.

Dewatering the old mine workings is essential if Bendigo Mining is to safely and successfully resume mining operations in the Bendigo region.

A combination of waste water from Bendigo Mining’s gold operations in central Bendigo and processed water from Coliban Water’s sewage treatment facilities servicing greater Bendigo could soon be adding a green tinge to the parched centre of the state.

The water is pumped to the surface but the levels of salt and arsenic in the water means it cannot be discharged into the environment without processing to remove the contaminants.

Always a dry region, Central Victoria has reached the limit of the volume of water it can extract from natural resources and reservoirs. So water conservation and sustainable multiple-use options have become imperative. An alliance between Bendigo Mining and Coliban Water has been formed to promote Bendigo’s growth through the sustainable use and development of water resources. In its efforts to re-open mining from the deep underground resources, Bendigo Mining first has to remove water from old mine workings. At present around one megalitre (one million litres) a day is being pumped from underground before being treated and allowed to flow away down local streams. Some water, containing metals and salt, is retained in evaporation ponds. But when mining at Bendigo reaches full planned production rates up to 10 megalitres a day will be extracted from underground. Bendigo Mining reckons that ten megalitres of water, which could otherwise be used for irrigation of crops of recreation grounds, is a valuable resource. Coliban Water agrees. The two groups have formed the ‘Aqua Gold’ alliance which recognises the crucial role water will play over the next 150 years. “Historians now realise that without ample water for gold-washing and domestic needs, early Bendigo may never have become a major world gold producer,” said Coliban Water chairman, Gordon McKern. “So our new Aqua Gold alliance with Bendigo Mining reflects and continues the crucial link between the two ingredients that were essential to the success of the entire Bendigo region,” he added.

At the moment, all the water pumped out is discharged to evaporation ponds at Woodvale.

Doug Buerger, Managing Director, Bendigo Mining.

Under the alliance Coliban Water and Bendigo Mining will help to secure Bendigo’s future water supply and to develop sustainable water reuse options. “Bendigo Mining has invested some $A70 million dollars in our New Bendigo Gold Project, which aims to restore Bendigo as a major world mining centre,” said Bendigo Mining managing director, Doug Buerger. “To achieve this goal, we’re very keen to work with partners such as Coliban Water to continue finding the highest value sustainable uses for the water we’re currently pumping up from Bendigo’s old mine workings,” he said. Bendigo Mining is well advanced on its plans to desalinate its mine water for reuse on district ovals and golf courses. “Bendigo Mining is committed to looking at economically viable ways of safely treating and reusing this valuable resource across Bendigo,” Mr Buerger said. The Victorian Government has committed $150k to the Bendigo scheme, as part of its ‘water for growth’ projects for North Central Victoria. The Aqua Gold alliance partners are supported by the City of Greater Bendigo, North Central Catchment Management Authority, EPA, DSE, and the Department of Primary Industries. The alliance aims to generate worthwhile ideas for sourcing new water supplies to supplement a number of successful sustainable water projects already underway across the region. 16

But as the mining operations increase in scale more water must be removed. A number of alternatives including the expansion of the evaporation ponds, irrigation of trees and water treatment have been considered but treating the water has been shown to be the best approach. Eventually treated water will be discharged to the benefit of the environment and will be able to be used for a variety of other uses. Under this approach the minimum requirement for land is established and the system has the lowest negative impact on the natural environment. The volume of water to be discharged will remain consistent throughout the year, and water is produced that is suitable for a range of uses. The proposed water treatment facility will be built at Bendigo Mining’s existing New Moon Site in Eaglehawk North. Water will continue to be pumped from the historic New Moon Shaft and fed to a treatment plant. Once water is treated the plant will produce two products. The first is large volumes of clean water with low salinity and arsenic concentration, making it suitable for a wide range of uses. Bendigo Mining has already won approval to add it to Lake Neangar, which overflows into Lake Tom Thumb. From there, it will be used by the Neangar Park Golf Course and there are also plans to establish a separate system to deliver water to the

SPECIAL FEATURE

Recycling clean water from both the Bendigo Mine and Coliban Water will help keep Central Victoria green.

Eaglehawk North Primary School and a standpipe for controlled public use. Water not used will overflow from Lake Tom Thumb into Eaglehawk Creek. The other product from the treatment plant will be water containing the vast majority (about 98 per cent) of the salt and about 99 per cent of the contained arsenic although the water treatment changes the form of the arsenic to make it less toxic. The water will be treated using the well understood Reverse Osmosis process commonly used to remove salt. Water from underground is usually about 1/6th as salty as sea water. EPA approval for the water treatment plant has already been obtained by Bendigo Mining. Very few environmental emissions or effects will be generated by the treatment plant. In a detailed analysis of the environmental impacts it was found that noise emissions will be significantly less than prescribed limits during construction and inaudible by the closest residence during operation. Odour emissions and contaminated run-off would be negligible while there would be no increase in dust emissions. On the positive side it was found that the regular flow of water down the watercourse will cause no loss of indigenous flora and fauna and will reduce algal blooming, creating the potential for further recolonisation of indigenous species in the future.

Environmental flows to improve the passive recreational uses and environmental conditions at Lake Neangar and Lake Tom Thumb and reuse of the treated water by the Neangar Park Golf Course and Eaglehawk North Primary School are considered all good uses of the treated water. Mr Buerger said that Bendigo Mining strongly believes that the proposed water treatment plan is an example of sustainable development. “Such development must be encouraged to ensure protection of our environment while enhancing the economic and social well being of our community,” he said. EPA approval for the New Moon water treatment plant was received earlier this year. Mr Buerger said, “the approval will enable the company to proceed with its plans to make the best use of the water extracted from underground workings.” “Bendigo Mining has always sought to make beneficial reuse {of water} an important aspect of its operations and is committed to the best possible use of such a valuable resource in light of the company’s on-going development of the goldfield.” The EPA Works Approval was conditional upon agreement with the City of Greater Bendigo in regard to the management of the discharge of treated water to Lake Neangar which has since been granted.

The erosion of the creek bed and walls would be significantly less than in a normal rain event and there would be no increase in sediment load.

When it was formed the alliance between Bendigo Mining and Coliban Water created a vision to promote regional growth and development through the sustainable use and development of two precious resources, water and gold.

An extensive monitoring program, aimed at confirming low impact, is included in the proposal.

The alliance aimed to provide a major leadership role in the development and implementation 17

of water use strategies and reclamation projects in the area. It also sought to undertake technical, environmental and economic studies relating to the processing and use of alternative water supplies and to encourage and promote collaborative joint ventures for the conservation and reuse of water. In a separate initiative Coliban Water is also investigating ways of utilising the large volumes of waste water generated daily at its sewage treatment works. Clean, processed water from the treatment works, of up to 70 megalitres a day, would ultimately be destined for irrigation purposes for crops, reducing the reliance on inefficient and leaky irrigation channels. Greg Sheahan, executive manager-planning with Coliban Water, told Discovery that only about 15 to 20 per cent of waste water from the Bendigo sewage treatment facility was currently treated and used as irrigation water. But he said in consultation with Bendigo Mining, the City of Greater Bendigo, the Environment Protection Agency and other stakeholders, additional uses for the remainder of the waste water were being sought. At present the bulk of the treated waste water is discharged to the Bendigo Creek. FOR MORE INFORMATION CONTACT: Doug Buerger Managing Director Bendigo Mining NL Tel: (03) 5447 1834 Mobile: 0418 178 640

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Vic Hub project links Victoria to the market He said the Esso processing facility at Longford would no longer be the principal point of supply into the Victorian gas system.

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ictorian natural gas is now supplying two of Australia’s mainland states as well as Tasmania, becoming one of Australia’s major energy suppliers after the opening of Australia’s first ever gas trading hub.

“The new VicHub will add diversity and strengthen the security of Victoria’s gas supply – particularly during the peak winter months,” the Minister said.

The VicHub project, located just behind Duke Energy International’s (DEI) Longford Compressor Station plant in East Gippsland, is the point at which the four main natural gas transmission pipelines in Victoria meet and interconnect.

“Greater diversity and choice of supply will result in improved outcomes for consumers, adding that the VicHub was a, “major advance in developing a truly national gas market.” “Ten years ago, Australia’s gas markets were limited by state borders,” he said.

The hub connects the Eastern Gas Pipeline, taking gas to Sydney, the main Victorian trunk line carrying gas to the Melbourne market and the Tasmanian Gas Pipeline carrying gas to Tasmania. The hub also links the main Victorian gas transmission network to the western Victorian network which will carry gas to South Australia once the SeaGas pipeline is completed early next year. The VicHub gas interconnector is a vital link in the development of a truly free and fair gas market between the eastern Australian states and will allow a national market to evolve. The VicHub project was developed by DEI, operator of the Eastern and Tasmanian Gas Pipelines and one of the most innovative gas transmission companies to enter the Australian market. Based on the concept of the massive Henry Hub natural gas interconnector in the United States, the VicHub project is a far smaller project, but marks the beginnings of a much bigger future market. The project has already proved its value by allowing Victorian gas to be diverted to Sydney earlier this year when gas supplies from the Moomba fields in South Australia were disrupted. VicHub allows, for the first time, free movement of gas across regions and more flexible pricing and delivery of the nation’s fastest growing energy source.

Julie Dill, Managing Director, Duke Energy International – Asia Pacific and Victoria Energy Minister, The Honourable Theo Theophanous, celebrate the start of a new era in the South-East gas market.

efficient to facilitate the movement of tranches of gas due to infrastructure and market constraints,” she said. The trading concept behind VicHub is that financial derivatives can be substituted for physical gas molecules using the gas market trading system providing greater flexibility for major gas buyers.

“With the installation of the VicHub, we have competition, choice and enhanced liquidity in the market. The VicHub will facilitate interregional trading between the physical and financial gas markets.” Mr Theophanous said the rapid increase in the rate of gas exploration in Victoria and the development of new infrastructure was contributing to the supply and delivery of gas at efficient and affordable prices. “VicHub complements the investments made by Duke Energy International in the Bairnsdale power station launched in 2001 and the significant pipeline projects delivering vital energy for Victoria’s continued growth and prosperity.” The VicHub is a similar concept to the Henry Hub in Louisiana in the US.

DEI RECENTLY LAUNCHED THE $A440 MILLION NATURAL GAS PIPELINE TO TASMANIA.

Julie Dill said, “VicHub is changing the landscape of the Australian gas market by enhancing competition, choice and liquidity. It represents an innovative approach to mitigating physical and financial risks.”

Duke Energy International managing director, Julie Dill, said VicHub provided a new and reliable channel for customers, primarily gas retailers, to source or sell additional gas.

Victorian Energy Minister, Theo Theophanous, who opened the facility said the VicHub project would allow natural gas to flow between Victoria, New South Wales and Tasmania for the first time.

“VicHub allows gas to be bought and sold across regions and enables gas users and retailers to optimise their physical and contractual positions, where previously it was not easy or

“The ‘VicHub’ interconnector brings greater security of supply to Victoria and improved gas flows across the south-eastern Australian markets at a single point.” 18

The Henry Hub is owned and operated ChevronTexaco and is physically situated at the Henry Gas processing plant. It is on the Sabine gas pipeline which starts in Eastern Texas, runs by the Gulf of Mexico and ends in Louisiana at the Henry Hub. The Henry Hub interconnects nine interstate and four intrastate pipelines which collectively provide access to markets in the US Midwest, Northeast, Southeast, and Gulf Coast regions. About 49 percent of US wellhead production either occurs near the Henry Hub or passes close by as it moves to downstream markets. Henry Hub is the centralized point for natural gas futures trading in the US. No formal futures trading market for natural gas has yet been established in Australia but the rapid development, and growth in the market could see futures contracts become a feature of the market in the near future.

SPECIAL FEATURE

Duke Energy International employee, Wayne Taylor, prepares VicHub for operations.

Natural gas is forecast to rapidly increase its share of the total Australian primary energy market over the next two decades which could create the conditions to allow the development of a gas futures market. If that happened VicHub could become an important link the national market. The construction of new, gas-fired power generation capacity in Victoria, South Australia, NSW and Queensland will deepen the existing Eastern Australian market while the addition of Tasmania to the network will increase gas trading opportunities. Last year DEI completed the Bairnsdale peaking power station in Eastern Victoria. The addition of a second 43MW unit at the Bairnsdale station lifted total generation capacity to 86MW. The station eased pressure on the power grid in the region which had been under pressure during high load conditions and offers an alternative to the other possible means of system

support, principally an additional transmission line from the Latrobe Valley to Bairnsdale. Gas is supplied to the Bairnsdale Power Station by the Eastern Gas Pipeline, a 795km natural gas pipeline which was commissioned in August 2000. DEI recently launched the $A440 million natural gas pipeline to Tasmania. The 732km subsea and underground pipeline and conversion of Tasmania’s Bell Bay power station to natural gas will be an incentive for industrial growth and long-term industrial development opportunities in the State. The development of the VicHub project coincided with a review of the Victorian gas market by system operator VenCorp.

Producer Legislation created in 1998 to protect gas retailers from the market power of Esso/BHP Billiton, then the monopoly suppliers of gas into the Victorian market. Mr Theophanous said the review would study whether the natural gas market now had enough supply competition for the legislation to be repealed. He said that with the creation of the VicHub it was clear that barriers to interstate trade in natural gas had come down. But he said it was “competitive energy prices and security of supply that drives the economy in Victoria.” “We are well on the road to developing a national [gas] market,” he said.

VenCorp is studying the concept of moving from a daily gas pricing mechanism to an hourly price fixing system to facilitate the gas trading market.

FOR MORE INFORMATION CONTACT:

Victoria’s Essential Services Commission has also begun a review of Victoria’s Significant

Mobile: 0419 744 746

19

Robert Hayes Public Affairs Offices Duke Energy International

GOLD EXPLORATION

Mining to start at Bendigo – first ever gold reserve

The first ever formal gold reserve has been declared from the rich quartz veins beneath Bendigo providing a basis for commercial mining in 2005.

C

ommercial scale gold mining is planned to restart at Bendigo in 2005 after Bendigo declared the first ever gold reserves at the New Bendigo Project in June. A mine producing 80,000 to 100,000 ounces of gold a year, starting in the March quarter of 2005 would be the first phase of a project planned to generate up to 500,000 ounces a year for 25 years or longer. In its June quarter report, Bendigo Mining managing director, Doug Buerger declared that the company had found probable reserves of 120,000 ounces of gold, a volume likely to rise to 200,000 ounces by December.

the Garrard Reef has revealed exceptional high grade gold with 50 kg samples returning grades of more than 30 g/t Au.

Processing of the Bendigo ore is relatively simple with only minor use of cyanide processing being considered.

The results are consistent over 80 metres of the reef that have been tested thus far within a drill indicated strike length of 450 metres Mr Buerger said.

“We will use gravity separation with flotation and the work we do in the feasibility study won’t change the basic design of the plant,” Mr Buerger said.

“The variation in grade and the higher grades we are now seeing are typical of the field. Our long term production planning envisages an average grade of 11g/t Au compared to the historic average production head grade of 17 g/t gold,” over the entire Bendigo field Mr Buerger said.

“We will be refining our metallurgical test work within the next couple of months in order to finalise the process flow sheet for the plant design.”

The company has also found a major new high grade gold bearing reef grading more than 30 grams of gold per tonne (g/t Au).

The sampling and exploration work in the Lower S3 reefs is ongoing, with a target reserve base of 200,000 ounces gold by December this year.

Bendigo Mining is now fast tracking its final feasibility study and plant design for stage one of the project.

At the same time Bendigo Mining will complete a feasibility study and the design of a plant to treat 300,000 tonnes of ore a year.

In its June quarter report the company said it had delineated Probable Reserves of 440,000 tonnes of ore in a grade range of 7.5 to 9.5 g/t gold with a best estimate of 8.5 g/t Au for 120,000 ounces of contained gold.

Mr Buerger said that the Bendigo board had decided that the ore grade of the main target reefs would not be improved through additional sampling and decided that, “commercial production should commence without delay.”

Mr Buerger said, “This is the first time in the history of the nuggetty Bendigo goldfield that reserves have been able to be defined. We are very pleased that our exploration work has progressed to the point where we can now estimate gold grades within the reefs with sufficient accuracy to be able to delineate reserves.”

“To that end we are carrying out the planning to support a decision to commit to stage one production. Plant design and planning should be completed in December with full additional permitting in place by June 2004,” Mr Buerger said.

“Reserves to this point have been delineated in the Upper S3, D3 and Christine No 2 reefs and reflect the gold grades predicted in those reefs,” he said. A major new high grade reef system has also been discovered in the lower S3 reefs where

He added that, “Our conceptual plan indicates that the first stage of production will be around 300,000 tonnes per annum of ore producing 80,000 to 100,000 ounces per annum of gold from the reserves we’ve identified in the D3, upper S3 and Lower S3 ribbon. Our capital estimates are preliminary and in the ball-park of $50 to $60 million.” 20

“The feasibility work will give us a better handle on the mine design, dewatering, ventilation requirements and secondary egress, as well as the treatment and disposal of tailings, water and mullock,” the managing director said. Even in its first stage of production the Bendigo Mine will rival the Stawell mine as the state’s biggest gold producer. Mr Buerger said that independent experts had confirmed that the New Bendigo project contains a resource potential of at least 12 million ounces. “Once we get the project into production, I’ve got no doubt that it will produce gold for at least 25 years and beyond.” “The conceptual plan put together a few years ago with Australian Mining Consultants assumes two stages of production increase following commencement of mining, with a production peak of between 400,000 and 500,000 ounces of gold per annum or 1.2 to 1.5 million tonnes of ore per annum,” Mr Buerger said. “Our current planning centres very much on stage one production, although we’re also doing some long term planning such as the expansion of our site to handle the mullock produced over the anticipated 25 year mine life.” Mr Buerger was excited by the rich ‘jewellery box’ nature of the Garrard’s reef discovery.

GOLD EXPLORATION

He said, “The grade from Garrard’s is above expectation. Garrard’s Reef is about 4 metres wide and currently grading over an ounce per tonne. The reef is about 450 metres long as indicated by drilling, but whether or not that high grade persists over the entire length will become clearer as we continue with our more detailed exploration and drilling of the reef.” “Historically, the miners found grades of this magnitude fairly extensively over reefs and were able to mine them successfully.” The progression towards commercial scale mining at Bendigo has been a lengthy process

and Mr Buerger confirmed that the decision to start mining with first production in early 2005 was several months later than originally planned. “There has been some slippage in our timetable to define the 200,000 ounce reserves to support the start up of production from October to December.” “Expenditure on long lead-time items for production will only commence after commitment to construction, which is expected early in 2004. The construction phase is expected to take about 12 months,” Mr Buerger said.

He added that a gold price of $A525 an ounce had been used in the calculations to produce an ore reserve figure for the project.

FOR MORE INFORMATION CONTACT: Doug Buerger Managing Director Tel: (03) 5447 1834 Mobile: 0418 178 640 Website: www.bmnl.com.au

MPI to maintain Stawell joint venture

V

ictoria’s biggest gold producer, MPI Mines, will continue to operate the Stawell gold mine with its US based joint venture partner, Pittston Mineral Ventures after the failure of a deal under which MPI would have acquired 100 per cent ownership of the mine. But MPI will continue to fund 100 per cent of the regional exploration in the ‘Stawell corridor’ region as it continues its efforts to locate new gold deposits. MPI and Pittston Mineral Ventures of the US have a 50/50 joint venture over the Stawell mine and each owns 25 per cent of the Coolgardie gold joint venture in Western Australia. MPI manages both the Stawell and Coolgardie joint ventures. A term sheet for the negotiation of the acquisition of Pittston’s interests by MPI was agreed in November last year but doubt was cast on the transaction earlier this year when MPI revealed that negotiations were taking longer than expected. MPI announced in July that the parties were unable to conclude the acquisition agreement within the time frame provided by the Australian Stock Exchange listing rule waivers. “Negotiations have been discontinued and operations will continue under existing joint venture arrangements,” MPI directors said in a statement to the ASX. The Stawell mine will continue to operate as a joint venture and the partners have agreed to work towards extending the mine life at Stawell through mining to the 1004RL level. Studies will also continue to extend mining operations beyond 2005 and MPI will sole fund a significant exploration program aimed at unlocking the gold potential of Stawell Corridor.

Initially MPI Mines will spend $700,000, in 2003 and early next year seeking 5 million ounce scale repetitions of the Stawell orebody. That program will lift MPI’s equity share of the Stawell Corridor from 50 per cent to 58 per cent. In the statement MPI directors said, “The company is pleased to be demonstrating continued commitment to the Stawell region through upgrading of the Stawell Corridor exploration program and the opportunity to increase ownership of the project.” The Stawell corridor exploration project is one of the most exciting gold programs in the state. MPI Mines is seeking major repetitions of the Stawell mine gold system in areas covered by recently deposited sediments. The regional campaign has already had substantial success with a number of targets already showing significant promise for major new gold deposits. MPI is seeking significant new gold resources in the Stawell region, which are replications of the Stawell orebody. The Stawell corridor drilling program will commence in August/September on targets that have been generated in conjunction with the Co-operative research Centre for Predictive Mineral Discovery using fluid flow modelling and previously confirmed by geophysics and aircore drilling. The PMD CRC is supported by Federal, State and private funding. MPI controls a 140km corridor of exploration tenements from Stawell, northwest into the Murray Basin. Potential for extensions of the Ararat-Stawell goldfield setting has been confirmed through aircore and diamond drilling of several mag21

netic “dome” targets which lie Murray Basin sediment cover. The purpose of PMD CRC is to “generate a fundamental shift in exploration practice by developing a vastly improved understanding of mineralising processes and a four dimensional understanding of the evolution of the geology of mineralised terrains.” MPI Mines managing director, Brian Phillips, said that, “We believe the area is highly prospective and it’s worth noting that the area was selected by the State and Federal Governments for specific research support by the PMD CRC.” “Interpretation from aeromagnetics and gravity surveys has demonstrated the potential for ten hidden basalt domes to be Stawell lookalikes. Our exploration program will involve drilling specific targets based on the research and fluid flow modelling,” Mr Phillips said. “Any expenditure that we sole fund above the amount of $A700,000 will result in a further increase in MPI’s equity above 58 per cent, assuming that the sole funding approach continues,” Mr Phillips said. FOR MORE INFORMATION CONTACT:

Brian Phillips Managing Director MPI Mines Ltd Tel: (03) 9628 2222 Fax: (03) 9620 7424 Email: [email protected] Website: www.mpimines.com.au

LICENCES REVIEW

Mineral Licences

April/June 2003

EXPLORATION LICENCE APPLICATIONS Title No.

Status

Map Sheet

Primary Owner

Event Date

Area Size

EL4740

CANAM

CORANGAMITE

PURUS ENERGY LTD

04/04/2003

18 GRATS

EL4741

APPLICATION

WEDDERBURN

PROVIDENCE GOLD AND MINERALS PTY LTD

17/04/2003

498 GRATS

EL4742

APPLICATION

ECHUCA

GOLD FIELDS AUSTRALASIA PTY LTD

08/05/2003

355 GRATS

EL4743

APPLICATION

WANGARATTA

CONARCO MINERALS PTY LTD

14/05/2003

500 GRATS

EL4744

APPLICATION

BOGONG

SYNERGY METALS LTD

16/05/2003

540 GRATS

EL4745

APPLICATION

BENAMBRA

SYNERGY METALS LTD

16/05/2003

7 GRATS

EL4746

APPLICATION

CASTLEMAINE

GOLD SEARCH INTERNATIONAL PTY LTD

21/05/2003

441 GRATS

EL4747

APPLICATION

BENDIGO

GOLD SEARCH INTERNATIONAL PTY LTD

21/05/2003

502 GRATS

EL4748

APPLICATION

SKIPTON

BARRICK GOLD OF AUSTRALIA LIMITED

12/06/2003

3438 GRATS

EL4749

APPLICATION

CASTLEMAINE

CONTINENT RESOURCES PTY LTD

16/06/2003

103 GRATS

EXPLORATION LICENCES GRANTED Title No.

Status

Event

Map

Primary Owner

Event Date

Expiry Date

EL4667

CURRENT

GRANT

KERANG

RELIANCE MINERALS LTD

03/04/2003

1303 GRATS

EL4672

CURRENT

GRANT

DONALD

RELIANCE MINERALS LTD

03/04/2003

2190 GRATS

EL4673

CURRENT

GRANT

WEDDERBURN

RELIANCE MINERALS LTD

03/04/2003

204 GRATS

EL4675

CURRENT

GRANT

ORBOST

RIO TINTO EXPLORATION PTY LTD

03/04/2003

213 GRATS

EL4695

CURRENT

GRANT

WILLAURA

RELIANCE MINERALS LTD

17/04/2003

843 GRATS

EL4725

CURRENT

GRANT

BENDIGO

PROVIDENCE GOLD AND MINERALS PTY LTD

17/04/2003

85 GRATS

EL4641

CURRENT

GRANT

MANSFIELD

WEDDERBURN MINING PTY LTD

01/05/2003

213 GRATS

EL4646

CURRENT

GRANT

MATLOCK

WEDDERBURN MINING PTY LTD

01/05/2003

21 GRATS

EL4653

CURRENT

GRANT

YEA

WILLIAM G A REDMOND

01/05/2003

71 GRATS

EL4697

CURRENT

GRANT

BUFFALO

NORTHERN MINE VENTURES PROPRIETORY LTD

01/05/2003

291 GRATS

EL4732

CURRENT

GRANT

OUYEN

BASIN MINERALS HOLDINGS PTY LTD

19/05/2003

8 GRATS

EL4733

CURRENT

GRANT

OUYEN

BASIN MINERALS HOLDINGS PTY LTD

19/05/2003

6 GRATS

EL4734

CURRENT

GRANT

OUYEN

BASIN MINERALS HOLDINGS PTY LTD

19/05/2003

14 GRATS

EL4460

CURRENT

GRANT

YEA

ARASTRA EXPLORATION PTY LTD

26/06/2003

13 GRATS

EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED Title No.

Status

Map

Primary Owner

Event Date

Expiry Date

EL4430

SURRENDERED

WARRAGUL

ALPHADALE PTY LTD

03/04/2003

03/04/2003

EL4508

SURRENDERED

CORRYONG

TANTALUM AUSTRALIA NL

03/04/2003

03/04/2003

EL4651

SURRENDERED

YEA

DUNOLLY GOLD DEVELOPMENTS PTY LTD

17/04/2003

17/04/2003

EL4015

SURRENDERED

DUNOLLY

DUNOLLY GOLD DEVELOPMENTS PTY LTD

19/05/2003

19/05/2003

EL3540

EXPIRED

WEDDERBURN

PACIFIC MAGNESIUM CORPORATION LTD

15/06/2003

15/06/2003

EL4275

EXPIRED

CASTERTON

EROMANGA HYDROCARBONS NL

26/06/2003

26/06/2003

EL4569

SURRENDERED

BALLARAT

TRASA PTY LTD TRADING AS IMPERIAL JOINT

27/06/2003

27/06/2003

MINING LICENCE GRANTS Title No.

Status

Event

Map

Primary Owner

Event Date

Expiry Date

MIN5330

CURRENT

GRANT

CRESWICK

PAUL JOHN SIMMONDS

03/04/2003

02/04/2008

MIN5388

CURRENT

GRANT

HEATHCOTE

FLITEGOLD PTY LTD

01/05/2003

30/04/2008

MIN5386

CURRENT

GRANT

CRESWICK

ANTHONY GEORGE FRASER

19/05/2003

18/05/2008

22

LICENCES REVIEW

MINING LICENCE APPLICATIONS Title No.

Status

Map Sheet

Primary Owner

Event Date

Area Size

MIN5389

WITHDRAWN

RINGWOOD

LISA SMITH

08/05/2003

0.9 HA

MIN5390

APPLICATION

KERANG

CUMMINS MINERALS PTY LTD

12/05/2003

56.7 HA

MIN5391

APPLICATION

CRESWICK

MOUNT ROMMEL MINING PTY LTD

14/05/2003

4.8 HA

MIN5392

CURRENT

NYAH

DARREN ANDREW GERVASONI

14/05/2003

70 HA

MIN5393

CURRENT

NYAH

DARREN ANDREW GERVASONI

14/05/2003

71.4 HA

MIN5394

APPLICATION

NYAH

RONALD MERVYN AYARS

20/05/2003

54 HA

MIN5395

APPLICATION

BACCHUS MARSH

GOLD SEARCH INTERNATIONAL PTY LTD

26/05/2003

2.6 HA

MINING TITLES SURRENDERED, CANCELLED OR EXPIRED Title No.

Status

Map

Primary Owner

Event Date

Expiry Date

MIN4680

EXPIRED

KERANG

CUMMINS MINERALS PTY LTD

12/04/2003

12/04/2003

MIN5350

SURRENDERED

DUNOLLY

DUNOLLY GOLD DEVELOPMENTS PTY LTD

17/04/2003

17/04/2003

MIN4306

EXPIRED

BEAUFORT

HADYN K PUNTON

28/04/2003

28/04/2003

MIN4681

EXPIRED

KERANG

NEVILLE E MCCANN

02/05/2003

02/05/2003

MIN4349

EXPIRED

ALBURY

RUTHERGLEN MINING PTY LTD

05/05/2003

05/05/2003

MIN5138

EXPIRED

BALLARAT

WRICO MINERALS PTY LTD

15/05/2003

15/05/2003

MIN5360

SURRENDERED

DOOKIE

LAWRENCE A MCCALLUM

19/05/2003

19/05/2003

MIN4796

SURRENDERED

BACCHUS MARSH

DAVID L LLOYD

19/05/2003

19/05/2003

MIN4817

SURRENDERED

DUNOLLY

DUNOLLY GOLD DEVELOPMENTS PTY LTD

19/05/2003

19/05/2003

MIN4112

SURRENDERED

DUNOLLY

DUNOLLY GOLD DEVELOPMENTS PTY LTD

19/05/2003

19/05/2003

MIN5097

CANCELLED

BENDIGO

GREG MCQUALTER

16/06/2003

16/06/2003

New rush into Victorian gold exploration

T

he takeover of the majority of the Australian gold industry by the world’s biggest producers has had a devastating effect on the level of exploration in much of Australia. But Victoria, with its rich history of major gold fields and outstanding potential for major new discoveries is attracting an increasing share of the national exploration budget. Unprecedented interest in reviving gold production from regions like Ballarat and Bendigo is driving the new mood of enthusiasm. Recent discoveries of world scale mineral sands deposits in the Victorian portion of the Murray Basin has also helped to heighten interest in the broader mineral potential of the state. A recent conference in Ballarat on the potential for new gold discoveries in Victoria attracted 120 delegates from a wide cross section of the gold industry, with many Western Australian companies strongly represented. The Australian Journal of Mining sponsored conference was remarkable for the strong

interest shown in Victoria by a range of companies, many of which have never held exploration acreage in the state. Driving the new interest in Victoria is the realisation that the state is under-explored and has the potential for major new gold deposits. The realisation that substantial mines can be readily developed in Victoria, despite the relatively high population density compared with WA and Queensland, is changing the perception of Victoria as a place to invest. That same population density, while creating some community issues, also offers major advantages through the delivery of infrastructure like power and transport access. Modifications to Victoria’s mining legislation and the relative lack of native title issues are working to attract explorers from interstate in increasing numbers. Victorian mineral exploration expenditure in the March quarter this year, as measured by the Australian Bureau of Statistics, totalled $12.1 million. 23

That compares with $8.9 million spent in the previous quarter and $8.4 million for the March 2002 quarter and is the highest quarterly exploration expenditure in Victoria since 1997. For the year to March 2003, exploration expenditure was $42.9 million compared with $31.1 million a year earlier. By comparison with the rest of the country, Victoria enjoyed an excellent result. For the quarter, Victoria attracted 7.7 per cent of total national mineral exploration expenditure. This has grown from 5.3 per cent of national expenditure in 2001/02 and is up from only 2 per cent a decade ago. Victoria occupies only around 3 per cent of Australia’s landmass so it is clear, that in exploration terms, the state is starting to reap major rewards. Most of the exploration expenditure in Victoria is aimed at the gold sector. For the year to March 2003 Victoria attracted the second highest gold exploration expenditure behind Western Australia, of all the States and

GOLD EXPLORATION

Territories, with Victoria’s share of national expenditure being 9.7 per cent.

Richard Aldous, also told delegates that Victoria had major potential for new gold discoveries.

One of the big attractions in Victoria is the large body of public domain geological data available to explorers.

He told delegates that despite minimal gold production in Victoria since the 1920’s Victoria was poised on the brink of a gold boom similar to that which unfolded in Western Australia from the early 1980’s when a host of new gold orebodies were discovered and mined.

The extension of the highly successful Victorian Minerals and Petroleum Initiative (VIMP) program has been a major boost for the industry. At the AJM Victorian gold conference the managing director of Reliance Mining Ltd, now the largest holder of exploration territory in the state, Dr Stephen Twyerould, told delegates that despite Victoria’s historical production of 80 million ounces of gold in the past 150 years, the state remained under explored by modern methods. “Reliance has realised this and has secured eight major gold projects in Victoria covering in excess of 7,000 square kilometres.” “Reliance’s strategy has been to target the covered strike extensions of the major gold camps and to acquire old mining centres with a limited modern exploration history,” Dr Twyerould said.

Dr Aldous said that while brownfield exploration around the major gold production areas of the state was growing rapidly, greenfields exploration in previously unmined areas remained weak. Stephen Twyerould.

But he said an area of great potential was for a new discovery of gold beneath shallow cover.

that a province that exhibit the right geological ingredients for gold mineralisation.” He said that research has shown that, “Vast areas of the state,” have only been partially explored. “Reliance believes that Victoria has significant untapped potential for major gold deposits.”

“Reliance believes the timing is right for significant investment in the state.”

Stephen Hancock, a director of the global mining industry consulting group, URS Australia agrees.

“Experience has shown that if you’re looking to make a significant gold discovery there are two criteria that have proven to be extremely effective.”

He told the conference that there is a resurgence of gold mining around urban centres which trace their origins back to the gold rushes of 150 years ago.

“These are to go to a province that has produced significant quantities of gold in the past. This shows all the right metallogenic processes have been operating at an appropriate scale.”

But he said that modern principles of sustainable development would help to sustain and support mining in these areas despite their close proximity to large population centres.

Dr Twyerould said the second important criteria was to, “Find the under-explored areas of

The executive director of petroleum and minerals for the Department of Primary Industries, Dr

He said there were “very good prospects for major new discoveries,” in covered areas, citing in particular the encouraging results being obtained from the ‘along strike’ by MPI Ltd from the Stawell mine. Dr Aldous also noted that the VIMP program, which has cost almost $A30 million since it began in 1993, has been a major contributor to the rising interest in Victorian mineral exploration. “Largely as a result of VIMP Victoria now has complete airborne magnetic and radiometric coverage at 400 metre line spacing or better, semi-regional gravity coverage and 70 per cent coverage of Paleozoic outcrop areas with ‘new generation’ geological mapping at 1:50,000 and 1:100,000 scale.” “This is the best basic geological coverage in the country,” he told delegates.

Range River Gold joins the Victorian rush

V

ictorian gold exploration is booming with a host of new companies being attracted to the state, drawn by its prospectivity, rich gold history, and the state’s high quality data inventory. The continuing Victorian Initiative for Minerals and Petroleum (VIMP), has generated a large volume of open file geological and geophysical data providing a solid basis for modern exploration. Recently floated exploration group, Range River Gold, is planning to leverage off the public exploration data and the state’s rich gold credentials to find new, commercially attractive, orebodies.

Range River, which raised $A6 million and was listed on the Australian Stock Exchange in June last year, has four major exploration projects in Victoria.

Kingston project

Managing director, Michael Beer, says, “Victoria is a world ranking mineral province, having produced approximately two per cent of the world’s gold.”

Located 220 km west of Melbourne and 47 km north east of Ararat, the exploration licences include the former Kingston and Glendhu gold mines.

Mr Beer said the potential for discovery of primary gold deposits within the company’s Victorian tenements at Kingston, Ararat/Stawell, Foster and Summerfield (near Bendigo), “is considered to be high.”

WMC previously held the licences and conducted some regional drilling, obtaining some encouraging results.

“All of the company’s tenements are located in historical gold fields with previous production.” 24

Range River’s Kingston project is among the company’s most prospective areas.

WMC, drilling in the 1980’s, hit some high grade areas producing drill intercepts including 14 metres at 26.6 grams per tonne of gold and 11 metres at 7.4 g/t Au.

GOLD EXPLORATION

Five principal target areas containing a total of 15 geochemical, geophysical or structural anomalies have been selected for further evaluation which Range River believes are attractive targets. Mr Beer said the highest priority area is associated with the Fish Creek fault in the vicinity of Fish Creek where anomalous gold, arsenic, tin and platinum were detected over a strike distance of 19km.

Summerfield (Bendigo) project

Range River Gold has a spread of gold exploration targets across Victoria with particular attention on the Kingston project near Ararat.

WMC discovered a significant supergene gold zone but since then there has been limited drilling to test the oxide zone where Range River has identified drill targets.

Mr Beer said the geological association provides a strong predictive model to guide exploration in the Ararat tenement for Stawell-style gold deposits.

Follow up drilling by Range River early this year produced a number of promising results.

The Ararat district has recorded gold production of 610,000 ounces but virtually all of this gold was recovered from alluvial deposits and has not yet been related to a major primary source.

The reverse circulation program included 15 drill holes with the best results producing 5 metres at 13.5g/t Au, 6 metres @ 5.9g/t Au and 11metres @ 3g/t Au although all holes drilled returned potentially ore grade mineralisation. Only 160 metres of the known Kingston reef system was drilled in the program. The company has since been busy with further mapping of the 2km quartz reef and a further drill program is currently being finalised.

Ararat project Range River’s Ararat project covers exploration licences over 205 square kilometres about 210km west of Melbourne. Ararat is part of a major gold province in western Victoria located in the Stawell-Ararat fault zone, a clearly defined gravity and structural corridor. The corridor contains the Stawell goldfield and the world-class Stawell gold mine, currently Victoria’s largest producing gold mine. Stawell gold mine has a defined endowment of 5.6 million ounces of gold, including the pre1926 alluvial and hard rock production of 2.7 Moz, post-1984 production of 900,000 and the current reserves and resources estimated at 1.17 million ounces. Stawell’s high-grade gold mineralisation typically occurs associated with sulphides in structurally controlled sites related to intensely deformed metasediments and volcanogenic sediments adjacent to the Magdala basaltic dome.

Foster project Range River’s Foster Project consists of two exploration licences located approximately 160 km south east of Melbourne covering an area of approximately 400 square km. The tenements cover a regional aeromagnetic anomaly with strike length of 16km which is coincident with the Mt Hoddle Range. The magnetic anomaly is thought to represent the southern extension of the structural belt that contains the Woods Point-Walhalla goldfield.

Range River has recently entered into a farmout agreement with Gold Fields Australasia Pty Ltd “Gold Fields” (a subsidiary of Gold Fields of South Africa) over the Summerfield project whereby Gold Fields can earn 75% equity in the property through the expenditure of $A2.0m on exploration over a period of 4 years, with a minimum expenditure commitment of A$150k in the first year. The Summerfield project lies to the north of Bendigo where there is potential for discovering a significant gold deposit below the cover of Murray Basin sediments. Several major regional structures including the Whitelaw Fault and the Kamarooka gold trend traverse the property.

South Australian projects In addition to its exciting Victorian gold properties, Range River has two further key exploration properties in South Australia; at the Nackara Arc Property (3,000 sq. km.) near Peterborough where a third round drilling program is currently underway. Range River has also recently farmed in to the Glenloth property, previously held by MIM. Glenloth is host to the historic Glenloth goldfield and is adjacent to Tunkillia and Tarcoola, two other significant historical and current gold centres. Range River will be drilling at Glenloth towards the end of 2003.

Basement rocks including Precambrian to Palaeozoic sediments and inferred calc-alkaline volcanics occur along the Mt Hoddle Range, for the most part covered by Cretaceous sediments. Anomalous gold and platinum group metals in stream geochemistry will be tested. Several mines in the Foster area include the Victory mine which was worked to a depth of 152 metres and produced 180,000 ounces. The style of mineralisation, consisting of stacked quartz ladder veins associated with a porphyry dyke, is similar to the large ore bodies mined in the Woods Point area. A stream sediment-sampling program previously carried out by Range River identified a number of anomalous areas believed to be related to the occurrence of gold and PGM mineralisation in the basement. 25

FOR MORE INFORMATION CONTACT: Michael Beer Managing Director Range River Gold Tel: (03) 8614 1500

REGULAR FEATURE

Pipelines, prospectors and mine rehabilitation

G

uidelines for the development of new pipelines, to control the rehabilitation of mined land and to guide the actions of gold prospectors across Victoria have been released by the Victorian Government. The series of initiatives aimed at providing clear guidelines for the resources industry have been developed and released in recent months. Rapid growth in the development of new high pressure gas transmission pipelines, in response the developing free market for gas, has led to the need for a formal set of guidelines. A proposal paper for new legislation covering the development of new gas pipelines was released in July. That followed a review of the Pipelines Act 1967 announced in June 2000. A discussion paper was released in March, 2002 and meetings with key stakeholders were held in during November/December 2002 to develop the issues and proposals raised. Most stakeholders then indicated strong support for specific pipelines legislation and the latest proposals rely on that basis. The Victorian Government has proposed that the current Pipelines Act be replaced by new pipelines legislation. The proposed new legislation will cover the development of petroleum pipelines but will also have capacity to cover other pipelines on a case by case basis except for lower pressure gas distribution pipelines. The Act would also offer Licences for an indefinite term, similar to the Petroleum Submerged Lands Act 1982 (Vic) and termination of the licence would occur if the pipeline is not being used or proposed to be used in which case easements associated with the pipeline would be returned to the landowner. It is proposed to include timelines for Ministerial processes, a requirement for a consultation plan to be prepared before access to land occurs and greater clarification of the types of matters that could go into a land access agreement. The proposal include time limits provided for good faith negotiation in reaching agreements. The key objective of the Act is to facilitate the development of new natural gas transmission pipelines in Victoria and to create an effective, efficient and flexible regulatory system.

The Government is aiming for the Act to be in place by June 2005.

have been found in the Golden Triangle of Central Victoria and surrounding areas,” the Minister said.

Prospectors guide

“We want to make it easier for prospectors to take up metal detectors, hand tools, pans or sluices in the search for Victorian gold, gemstones and other minerals,” he said but added that the Government also wanted to ensure that prospectors and fossickers enjoyed their hobby safely, in the proper locations and with care for the environment.

In the shorter term gold prospectors and fossickers have been provided with greater certainty over their activities through the release of a new guide. In conjunction with the Prospectors and Miners’ Association of Victoria, the guide was launched in June at Sovereign Hill by Victorian Resources Minister, Theo Theophanous. Mr Theophanous said, “The guide provides fantastic advice for old and new who hope to strike it rich each year. It contains advice on permits, places to go prospecting, safety tips and how to minimise impact on the environment.” Around 5000 prospectors hold miners rights in Victoria. “Victoria is a great place to go prospecting. Many of the world’s largest gold nuggets 26

The Prospectors Guide will be provided with every new prospecting permit granted and can also be found on the Departmental websites: www.dpi.vic.gov.au and www.parkweb.vic.gov.au The guide was prepared in partnership between the Department of Primary Industries, the Department of Sustainability and Environment, Parks Victoria, the Prospectors and Miners’ Association of Victoria and the Victorian Gem Clubs Association.

USEFUL WEBSITES

Agricultural land rehabilitation Explorers who find gold or other commercial scale mineral deposits in Victoria are also expected to make serious efforts to rehabilitate the land on which they operate. Substantial rehabilitation bonds and other legislative requirements now place far greater emphasis on the sustainable use of land for multiple purposes. With that in mind the Department of Primary Industries has recently released a new document called, ‘Principles for rehabilitation of agricultural land subject to mining.’ The booklet is endorsed by the Department, the Victorian Farmers Federation and the Victorian Minerals and Energy Council. It sets out agreed principles for the rehabilitation of agricultural land that has been subjected to mining and where it is proposed to return that land to its previous agricultural use or another agreed productive purpose. The Mineral Resources Development Act 1990 provides that a rehabilitation plan must take into account, “the desirability or otherwise of returning agricultural land to a state that is as close as reasonably possible to its state before the mining licence was granted.” The new booklet is consistent with the provisions of the MRDA and also supports progressive rehabilitation during the operation of the mine and final rehabilitation at mine closure.

Useful mining website Academic Department of Civil and Chemical Engineering RMIT www.rmit.edu.au/eng/civil-chem La Trobe University - Department of Earth Sciences www.geology.latrobe.edu.au Monash Earth Sciences www.earth.monash.edu.au Seismology Research Centre www.seis.com.au University of Ballarat Geology Department www.ballarat.edu.au/ard/sci-eng/geology University of Melbourne - School of Earth Sciences www.earthsci.unimelb.edu.au

Education Australian Institute of Petroleum www.aip.com.au Victorian Minerals and Energy Council www.vicmins.com.au

Government

All Mining Licences require a Work Plan that must include a Rehabilitation Plan.

Australian Governments Geoscience Portal www.geoscience.gov.au

Any rehabilitation plan must take account of issues such as special characteristics of the land, the surrounding environment, and the need to stabilise the land.

Department of Industry Tourism and Resources www.industry.gov.au

The MRDA requires rehabilitation bonds sufficient to satisfactorily rehabilitate the land to the agreed plan to be lodged before mining starts. In Victoria rehabilitation and mine closure activity costs must be factored in to overall project costs to cover that actual cost of rehabilitation works. This is to ensure that the cost of rehabilitation is adequately provided for in company accounts and that the community/government is not exposed to a liability. The rehabilitation bond is the guarantee held by the Department, to ensure that the planned rehabilitation work is properly carried out at no cost to the community if the company defaults on its rehabilitation obligations. FOR MORE INFORMATION CONTACT: Customer Service Centre Tel: 136 186 Website: www.dpi.vic.gov.au

Dept. of Natural Resources and Mines, Queensland www.nrm.qld.gov.au/mines Environment Australia www.environment.gov.au Geoscience Australia www.ga.gov.au NSW Department of Mineral Resources www.minerals.nsw.gov.au Northern Territory Department of Business, Industry and Resource Development www.dme.nt.gov.au Primary Industries and Resources SA www.pir.sa.gov.au Mineral Resources Tasmania www.mrt.tas.gov.au Department of Primary Industries Victoria www.dpi.vic.gov.au Department of Industry and Resources - Western Australia www.doir.wa.gov.au 27

SPECIAL FEATURE

Ballarat – The return of a world class gold field

The resumption of underground exploration at Ballarat is the latest sign of rapidly rising interest in Victoria’s gold potential.

T

he gold industry’s interest in Victoria’s major gold fields has risen dramatically in the past year as work to resume or increase the rate of mining in areas like Ballarat, Bendigo and Stawell, moves to a new level. Ballarat Goldfields has recently regained the market’s attention following its rejuvenation in October last year. Now focused solely on its gold assets, the company has been recapitalised after its foray into the dot.com sector. With a new board and management, the company is now debt free and making rapid progress to re-establish gold’s bona fides in the Ballarat region. The rationale for seeking gold targets beneath the old Ballarat workings is well documented. Like many other Victorian fields, Ballarat is a 19th century gold field which produced more than 12 million ounces from surface and underground workings which were mostly closed by 1917.

Under capitalised mines suffering from war induced labour shortages led to the majority of mine closures where the workings subsequently flooded. The goldfield has laid mostly dormant ever since and Victoria has been generally overlooked in the past 50 years as modern drilling has created new booms in places like Kalgoorlie, in Western Australia. Since its recapitalisation Ballarat Goldfields has focussed on identifying the geological potential of Ballarat and developing an exploration strategy to maximise value from that potential. Ballarat Goldfields new managing director, Richard Laufmann, said that “required experienced exploration and modelling skills, coupled with front line exposure to nuggetty and structurally complex orebodies.” Geology manager, Steve Olsen who previously worked with Croesus Mining and formerly WMC Resources, was appointed to head the project. Before a comprehensive view on the exploration potential at Ballarat could be ascertained, a thorough compilation and geological 28

modelling of the existing data was required said Mr Lauffman. This data included; • all of the key elements for ore formation based on the historical records, • a reconstruction of a number of orebodies that were mined historically, • a 3D geological model which could identify additional target locations. “From a very early stage of this work program it became obvious that, despite the large amount of work undertaken previously at Ballarat on the geology and ore types, there were numerous gaps in the information,” he said. “That could be addressed with further historical research, trench mapping and 3D modelling across the entire field.” That work showed that more than 80 per cent of the ore mined at Ballarat East was derived from large ore shoots on west dipping faults combined with vertically oriented thick quartz veins, both of which appear to be amenable to modern mining techniques.

CONTACT LIST

Mr Lauffman said stope reconstructions at Ballarat East identified a repeated sequence of shallowly south plunging ore shoots, which range from 2 metres to 40 metres in thickness and are at least 250m in length along strike. These ore shoots have developed along steepened sections of west dipping reverse faults, on the eastern limb of an anticline and are hosted within a variable sequence of sandstones, siltstones and shales, Mr Lauffman said. Similar work at Ballarat West identified historical production on west dipping faults and also graphitic shale hosted orebodies on the western limbs of folds. Ballarat Goldfields has outlined an inferred and indicated resource of 700,000 ounces of gold with an exploration potential of 6 million ounces. “This result is particularly exciting as it has produced some unexpected extensions to the field. In particular, at Ballarat East, three additional lines have been proposed, being the Sulieman, Exchange and Eureka lines,” Mr Olsen said. This potential is considered “conservative” says Olsen, coming from a “heavily factored exploration portfolio”. “It has been our intention from the start to be up-front in explaining to our shareholders what we believe the region has to offer,” said Mr Laufmann. “We have done this by quantifying the available targets and risk weighting the available data based on our knowledge and confidence.” This process provides the highest level of transparency, whilst also quantifying the confidence the company has in its geological model, he added. The company has gone further and in its published exploration strategy, has outlined a four stage exploration plan, including cost estimates. The company says it is now poised to enter its next phase; to fine tune the location of the favourable trends, before undertaking a more detailed drilling campaign. The next series of holes from surface are focused on the structural verification of the Sulieman line, whilst providing valuable data on the geotechnical conditions likely to be encountered by a future decline extension. In the next six months Ballarat Goldfields plans to start surface drilling of the Ballarat East – Sulieman line, develop the Beringa geological model and continue a conceptual study to demonstrate the field’s production potential.

FOR MORE INFORMATION CONTACT: Richard Lauffman Managing director Ballarat Goldfields Tel: (03) 5333 5444

The Department of Primary Industries Growing Victoria’s Future

Maher Megallaa Manager Acreage Release Tel: (03) 9412 5081

The Department is committed to the sustainable development of primary industries for the benefit of all Victoria.

Bob Harms Manager Petroleum Information Tel: (03) 9412 5053

Minerals and Petroleum Division Contact List: Minerals and Petroleum Business Centre Level 8, 240 Victoria Parade, East Melbourne, Victoria 3002, Australia Tel: + 613 9412 5020 Fax: + 613 9412 5150 Richard Aldous Executive Director Minerals and Petroleum Tel: (03) 9412 4508 Fax: (03) 9412 4183

Geological Survey of Victoria Tel: (03) 9412 5042 Fax: (03) 9412 5155 Phil Roberts Manager Geological Survey Victoria Tel: (03) 9412 5035 Alan Willocks Manager- Geophysics Tel: (03) 9412 5131 Peter O’Shea Manager Geological Mapping Tel: (03) 9412 5093 Roger Buckley Manager Mineral resources Tel: (03) 9412 5025

Geoff Collins Manager Petroleum Projects Tel: (03) 9412 5095

Minerals and Petroleum Regulation Fax: (03) 9412 5152 Doug Sceney Acting Manager Minerals and Petroleum Regulation Tel: (03) 9412 5069 George Buckland Manager Minerals and Petroleum Tenements Tel: (03) 9412 4778 Graeme McLauglan Manager Northern Region Operations Chief Mining Inspector Tel: (03) 5444 6689 John Mitas Manager Southern Region Operations’ Tel: (03) 9412 5083 Hayden Cater Acting Environmental Manager Tel: (03) 9412 5107 Horacio Haag Manager Petroleum Operations Safety and Environment Tel: (03) 9412 5101

Graham Gooding Regional Manager Ballarat Tel: (03) 53 336 521

Minerals Policy John Lambert Manager Minerals and Petroleum Policy Tel: (03) 9412 5068

Guy Hamilton Regional Manager Bendigo Tel: (03) 5430 4697

Information

Petroleum Development Fax: (03) 9412 5156

Janne Bonnet Manager Minerals and Petroleum Reference Centre Tel: (03) 9412 5022 Fax: (03) 9412 5157

Kathy Hill Manager Petroleum Development Tel: (03) 9412 4208 Kourosh Mehin Manager Petroleum Resources Tel: (03) 9412 5074 Mike Woollands Manager Basin Studies Tel: (03) 9412 5135

Kim Ricketts Client Services Officer Tel: (03) 9412 5103 Fax: (03) 9412 5157 Chandri Nambiar Marketing Manager Tel: (03) 9412 5061 Fax: (03) 9412 5035

ALL THE FACTS....

Worth it’s weight in gold!

The Register of Australian Mining 2003/2004 includes complete financial details plus an editorial summary of activities of all ASX-listed mining companies and details of more than 300 private companies. There is also a complete rundown on all Australian mines, developing projects and exploration prospects, including location, ownership, management, regional and mine offices, geology, reserves, production history, method of operation, treatment type and plant capacity and an editorial summary of recent activity and planned work programs. The 5,000 entries in the register provide an invaluable list of contacts, including telephone and fax numbers, ideal for marketing to the mining industry.

Register of

Australian Mining

So if you’re deciding whether to buy or sell shares, looking for a mailing list to help sales, checking out a neighbour’s territory or choosing your next take-over target, you can’t go past the Register of Australian Mining 2003/2004. YOU WON’T GROW WITHOUT IT.

2003/04

BONUS MAP.... And because it’s the 24th edition, a full-sized beautifully-detailed wall map showing the location of all Australian producing mines is included with every copy. You get the full picture at a glance.

Also available on CD-Rom

CD-ROM The Register of Australian Mining 2003/2004 is also available on a userfriendly CD-ROM incorporating an excellent relational database design connecting companies to their projects, contact details, management, financial analysis and editorial comments. It also allows you to download mailing lists, enabling you to pinpoint your market quickly and easily. You also receive a free printed copy of the Register with each CD-ROM purchased.

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