Discovery 028 2003-12

DECEMBER 2003

Casino partners secure major contract – page 18 Esso/BHP’s new Bass Strait program – p20 Nexus Energy goes exploring – p24 SEA Gas pipeline nears completion – p12 Go-ahead for Fosterville gold mine – p08 Victoria’s earth resources journal

discovery

Building boom a rich quarry – p16

Talent Management for the Future > Recruitment > Systems > Outsourcing www.talent2.com.au

it's who you know

contents departments 2 MINISTER’S FOREWORD Meeting the challenges facing the resources sector and the government

4 MONITOR BHP Billiton’s new home, revisiting Walhalla, Goldfields of South Africa eyes Bendigo, BeMaX merger, ELs on CD, Reliance eyes Murray Basin, Bendigo Mining’s new find, Iluka Resources joins with Austpac and Tarnagulla refloat

28 REVIEW Who’s doing what with mineral applications and licences

29 GO TO Your guide to Minerals and Petroleum Business Centre contacts and

features 7 8 10

Favoured state Fosterville go-ahead Stawell’s gift

resources sector websites

A rapid increase in exploration spending augurs well for Victoria’s resources sector

OUR COVER

Perseverance Corporation’s commitment to build its mine near Bendigo is a massive boost to the state’s gold industry

for Otway Basin Casino field

Innovative modelling techniques are detecting likely gold targets under the Murray Basin sediments

11

Making cyanide safe

12 15 16

End of the pipe

The natural gas link from Victoria to South Australia nears completion

Gas network grows

The Bellarine Peninsula joins the natural gas network

A rich quarry

Melbourne’s building boom has been a boon to Victoria’s extractive industries with new demand for sand, clay and stone

18

Casino delivers

Otway Basin gas will be a significant source for an innovative supply contract

20

Bass Strait search

Esso Australia and BHP Billiton launch an ambitious program to find new reserves in the Gippsland Basin

23

Block of promise

Nexus is set to drill a highly prospective exploration permit area in Bass Strait

24 26

Shifting sands

Iluka Resources’ Hamilton mineral separation plant moves ahead

St Arnaud’s secrets

Mapping geological history points to new gold prospects in the state’s west

Good cyanide management is a key objective of Victoria’s growing gold industry

The future is burning brightly partners Santos, Australia Worldwide Exploration and Mitsui. The consortium recently signed a long-term gas contract with TXU Australia. For details, see page 18. (Photo courtesy of Santos Ltd)

DECEMBER 2003 01

minister’s foreword

MEETING THE CHALLENGE discovery Discovery is published quarterly by Floate Design Partners on behalf of the Minerals and Petroleum Division, Department of Primary Industries. Editorial and advertising enquiries to Gary Max, Floate Design Partners, PO Box 12150, A’Beckett Street Post Office, Melbourne Vic 8006. T: (03) 9557 1894 Mob: 0411 833 823 F: (03) 9557 4752 email: [email protected] Distribution and Department of Primary Industries enquiries to Chandri Nambiar, Manager Marketing Development, Minerals and Petroleum Division, Department of Primary Industries, Level 8, 240 Victoria Parade, East Melbourne, Vic 3002. T: (03) 9412 5061 F: (03) 9412 4183 email: [email protected] Australia Post Print Publication PP349472/00128 ISSN Number 13282409

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.

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ecently, I was delighted to launch a Ministerial Statement, Promoting Victoria’s Prospects: The Challenge for Minerals and Petroleum Industries. This vision document highlights the Bracks Government’s objectives in the minerals and petroleum industries, and sets a clear direction for meeting these objectives. We will build the basis for strong economic growth in this sector over the next few years, with balanced environmental and social outcomes. While industry is moving strongly at the moment with very high levels of exploration expenditure and over $4 billion of capital expenditure planned in the next 5-6 years, there are a number of challenges facing the sector and the government. These fall into three broad areas and form part of our sustainable development framework: Realising Our Economic Potential Our world-class pre-competitive data is imperative to attract investment into exploration in Victoria. Effective business systems and a streamlined regulatory framework will assist us to convert this initial investment into lasting production and development. The challenge is to continue to drive innovation, science and technology to meet the demands of the global exploration industry and community. Innovation for the future requires technologies that promote Victoria’s resource potential, while also addressing social and environmental issues.

Effective dialogue about the industry’s benefits and risks means that affected/impacted communities are able to participate in issues relating to a project. Ongoing communication greatly reduces the potential for conflict and paves the way for sustainable outcomes. For the Bracks Government, “sustainable development” is about getting the balance right by securing win-win-win outcomes for the economy, the community and the environment. This is not an easy goal but it is the goal we have to set ourselves to secure our sustainability in this sector which is so crucial to Victoria’s future. Protecting Our Environment Where a decade ago minerals and petroleum activities were generally defined in purely economic terms, today, sustainable economic growth carries a responsibility to minimise the environmental and social footprint. A business’ reputation is inextricably linked to its social “licence-to-operate”. In promoting and stimulating economic growth in the industry, the challenge for Government is to ensure that the environment is always fully protected and where possible improved. The Bracks Government will meet this challenge through its partnership approach.We will protect the environment through initiatives such as rehabilitation bonds and net-gain biodiversity policies. We will encourage the development of environmental partnerships with initiatives such as the introduction of awards for environmental and social excellence in industry. We will also encourage research into environmental issues, including areas associated with low-impact exploration and rehabilitation of sensitive environments.

Energy and Minerals Victoria acknowledges contributions made by private enterprise. Acceptance of these contributions, however, does not endorse or imply endorsement by the Department of Primary Industries of any product or service offered by the contributors.

The Bracks Government will meet this challenge by continuing to enhance Victoria’s minerals and petroleum business development, facilitation and competitive permitting environment. The Government will also support research and development into areas such as clean coal technologies, where there is a business case and the public good warrants Government playing a role.

All photographs, maps, charts, tables and written information are copyright under the Copyright Act and may not be reproduced by any process whatsoever without the written permisssion of the Department of Primary Industries.

Ensuring Our Community Benefits Economic development that disregards social and environmental accountability is unacceptable. The Bracks Government’s goal is to move beyond compromises to achieve win-win-win outcomes.

The Bracks Government, through the aspirations and intentions set out in the Ministerial Statement, will strive to increase investment, build greater cohesion with community and protect the environment. Promoting Victoria’s Prospect: The Challenge for Minerals and Petroleum will be a launching point for dialogue with industry and the community.

© Minerals and Petroleum Victoria 2003

Our challenge is to ensure that community and industry works in partnership with Government.

Hon Theo Theophanous Minister for Energy Industries and Resources

02 DISCOVERY

SPONSORED STATEMENT

Origin Energy – investing in the future of Victoria’s energy supply

The 680 km SEA Gas underground pipeline will transport gas from Port Campbell in Victoria to Adelaide in South Australia. Pictured is the pipeline under construction near Palmer, South Australia.

Origin Energy is a major Australian integrated energy company focused on gas and oil exploration, energy retailing, power generation and utility network management. As both a producer and retailer of energy across Australia, Origin’s strengths come from its integration and ability to operate across the supply chain.

A significant player in Victoria’s energy market

strong position to be a major contributor in the delivery of gas to Victoria for up to 15 years.

Providing electricity, natural gas and LPG and related services to about 1.4 million Victorian customers, Origin is Victoria’s largest energy retailer. With offices located in all states and territories, Origin’s Victorian workforce comprises more than 780 people.

$2 billion commitment

Origin also manages and operates transmission pipelines and gas distribution networks on behalf of Envestra Ltd. Australia wide this arrangement covers 1,100 km of transmission pipelines and 18,000 km of distribution networks, including around 8,500 km of mainly distribution networks in Victoria. Our exploration programs focus on developing gas close to market infrastructure and gas markets. With expectations that gas demand in Victoria will grow, Origin is in a

With Origin participating in nearly $2 billion of investments in Victoria alone, the employment and investment opportunities for the State are significant. The investment is in a wide range of energy sources. In the offshore Otway Basin south of Portland, Origin and its joint venture partners discovered the Thylacine and Geographe gas fields in 2001, and these fields are now scheduled to provide Victoria with a new source of natural gas from early 2006. Origin and its joint venture associates will invest around $1 billion over the life of this project. This, combined with Origin’s $450 million Yolla offshore gas development in Bass Strait, will provide Victorians with an alternative natural gas supply, and be a

For further information please visit our website www.originenergy.com.au

Origin has significant investments in Bass Strait gas projects which will deliver gas to Victoria for up to 15 years.

source for the clean generation of electricity from gas-fired power stations. These fields will also eventually supply South Australian customers via the 680 kilometre SEA Gas pipeline – which represents a further $500 million investment when compression is fully installed.

Victoria’s largest energy retailer Origin is Victoria’s largest energy retailer, supplying gas and electricity to about 1.4 million customers. In August 2002, Origin purchased the CitiPower electricity retail business. This followed its purchase of the Powercor electricity retail business in 2001, and the Energy 21 gas business in 1999. In acquiring these businesses, Origin has invested around $900 million, and established a strong dual fuel marketing position in Victoria. Origin is Victoria’s largest supplier of Green Power. More than 30,000 Victorians purchase Origin Energy GreenEarth which is sourced from solar, hydro and wind generators including three Victorian wind farms at Codrington, Toura and Challicum Hills.

delivering the goods

PHOTO: ROSS FLOATE

monitor

BHP Billiton’s new home Global mining and energy giant BHP Billiton has moved to its new headquarters in the new Queen Victoria Centre in Melbourne. The $600-million redevelopment of the 1.8-hectare Queen Victoria Hospital site is Melbourne’s biggest mixed-use development. Not only is this BHP Billiton’s new home, it will also house hundreds of new inner-city residents and provide a multitude of boutique shops, restaurants, cafes, supermarkets and large department stores. The city-block redevelopment combines dining, recreation and open-air entertainment with traditional city office space, apartments and retail outlets. BHP Billiton occupies a 29-storey tower as the QV site’s foundation tenant and naming rights owner for one of the main towers. The centre includes 20,000 square metres of low-rise commercial space and more than 45,000 square metres of retail space over four levels extending around all four major street frontages - Swanston, Lonsdale, Russell and Little Lonsdale streets. Also included are 1,500 car parking spaces, a major gymnasium and a childcare facility. The QV1 tower on the corner of Russell and Little Lonsdale Streets houses 36 levels of apartments above three public car park levels, four retail levels and a further five car park levels for residents. The partner QV2 apartment building on the corner of Swanston and Little Lonsdale streets has eight levels of apartments with its own retail and parking facilities. 04 DISCOVERY

mining and petroleum news briefs Exploring Walhalla gold New exploration is centred on the rich Cohen’s Reef structure within the old Walhalla mine in far Eastern Victoria following the float of Goldstar Resources Ltd. Goldstar offered a subscription to 24 million shares at 25 cents to raise $6 million specifically to re-open the old Walhalla goldfield. Exploration focuses on the Cohen’s and Empress Reefs which lie along a 1.5-kilometre strike length of the delineated 4-kilometre Cohen’s line of reef at Walhalla. Historic grades in the Cohen’s Reef were exceptionally high, up to 6 ounces or 190 grams per tonne over an average width of 45 cm and strike lengths of 18 metres. The mine produced almost 1.5 million ounces at an average grade of 1 ounce per tonne over the 1.5-kilometre strike length of workings before closing in 1913. Recoveries up to 95 per cent were attained from gravity concentration testwork of the stockwork ore undertaken in the early 1990s.

Goldfields of South Africa explores Victoria Giant South African gold producer Goldfields of South Africa has joined Range River Gold NL to explore the Summerfield property, 28 kilometres north of Bendigo. There is potential to discover a significant gold deposit here, below the Murray Basin sedimentary cover. In its September quarter report Goldfields revealed it will spend at least $150,000 in the first year, and can earn 75 per cent equity in the property by spending $2 million on exploration over four years. Goldfields farmed in to the property after a study of the region revealed prospectivity for a Bendigo or Fosterville style deposit below Murray Basin sediments in the northern part of Summerfield. Preliminary exploration revealed three zones with anomalous gold values, one with a width of up to one kilometre, and two narrower zones with widths to 300 metres.

Reliance explores Murray Basin Gold explorer Reliance Mining Ltd is seeking mineral sands in its north-western Victorian exploration tenements along with its search for new gold deposits. Reliance chief executive Paul Chapman said the company would not restrict its exploration to one kind of mineral when its tenements may contain other commercial minerals. While building its portfolio of exploration tenements in Victoria, Reliance Mining realised this acreage contained Murray Basin sediments prospective for valuable heavy minerals, particularly in the St Arnaud and Kerang project areas. Reliance engaged consultants Steve Hart and Richard Russell, recognised as leaders in mineral sands during their time at Basin Minerals, to manage mineral sands exploration. The Reliance drill program will comprise over 5,000 metres of shallow aircore drilling to test for high-grade heavy minerals in strand lines along the former southern shoreline of the Murray Basin.

More mineral exploration reports available Exploration Licence (EL) reports 2000–2999 are now available on CD from the Minerals and Petroleum Business Centre. This follows the 15-CD set released at the Victorian Initiative for Minerals and Petroleum launch in May 2003 that contained all the scanned open-file Exploration Licence reports and data from EL 3000 onwards. These CDs are a digital version of more than 20 years of exploration data and enable clients to research the details of previous exploration work conducted in their area of interest from the comfort of their own office. A total of 2500 reports from over 800 licences are now provided. These reports are provided in multi page .tif file format and can be viewed using Windows Imaging software. The EL 2000–2999 CD is sold for $10. The EL 3000 plus CD set costs $75 and has been selling well. The files previously supplied in EL 3330 were corrupted in the CD copying process and a replacement erratum CD is available free of charge from the Business Centre. Copies of the reports can also be viewed at the Minerals and Petroleum Reference Centre.

bemax in 3-way merger The three-way merger of BeMaX Resources Ltd with the Australian mineral sands assets of Nissho Iwai and Sons of Gwalia Ltd has transformed the Murray Basin mineral sands sector. The merger creates a major new mineral sands player under the name of BeMaX Resources, a substantial Australian titanium dioxide (TiO2) feedstock producer. BeMaX will be the publicly listed entity for the combined assets. It already owns 100 per cent of the Pooncarie mineral sands project in the NSW portion of the Murray Basin. The merger awaits Foreign Investment Review Board approval. BeMaX will wholly own the RZM Cable Sands group of companies, 100 per cent owned by Nissho Iwai, and the Murray Basin Titanium 50/50 joint venture between Nissho Iwai and Sons of Gwalia. The merged company will have a strong production base and will be the third-largest producer of TiO2 feedstock in Australia, accounting for 11 per cent of the globally traded ilmenite market and 3.5 per cent of global TiO2. Combined production of heavy mineral concentrate from operations in Western Australia and Murray Basin exceeds 350,000 tonnes a year. By 2005 production is forecast to rise to 900,000 tonnes a year with new developments in WA and in the Murray Basin. The merged group will have a strong position in the Murray Basin, which is emerging as a world-class mineral sands province.

DECEMBER 2003 05

mining and petroleum news briefs

A photo from the Allan Stewart Collection

New gold ore at Bendigo

Iluka joins Austpac

Bendigo Mining’s feasibility study is nearing completion ahead of a commitment to full-scale mine development. In the September quarter the company focused on exposing and sampling the Greater Garrard orebody in the lower part of the Sheepshead 3 line of reef. It found that the Greater Garrard mineralisation is more than 600 metres long, and typically 10 metres wide and 20 to 30 metres high. This contains the previously identified Young, Garrard, Garrard East and True Grit No. 4 gold-bearing reefs in a single, broad mineralised envelope. A high-grade zone was found in the upper part of the orebody, typical of that found historically throughout the Bendigo goldfield. In its report to the Australian Stock Exchange Bendigo said “the high-grade zone has been exposed for 140 metres with initial sample grades of 15–30 g/t Au. “During the quarter over 5,000 tonnes of mineralised reef from this development has been processed through the company’s New Moon plant confirming the high grades from the initial sampling. The high-grade zone is still open to the north and detailed drilling indicates an average width of 8 metres.” Bendigo Mining halted development of the Greater Garrard mineralisation while the lower portion around Young reef was accessed at the beginning of October. “This will complete the underground exploration necessary for the feasibility study. During the quarter there were significant advances in analysing and interpreting drill core data to enable the modelling of grade distribution within individual reefs. “Until recently the high nugget effect present in the Bendigo Goldfield has complicated the meaningful interpretation of drill information to determine grade distribution within the reefs. The breakthrough has come about through the application of a statistical analysis that partially compensates for the high nugget effect,” the company said. That method allows Bendigo Mining to nominate the first reserves estimate for the field. “The initial report on the feasibility study is expected during the first week of December 2003 and final reserve and resource estimates will become available in mid-December.”

Iluka Resources Ltd and Austpac Resources NL have signed a Memorandum of Understanding for synthetic rutile (SR) to be produced at Austpac’s proposed east coast SR plant. Iluka will also be entitled to acquire an interest in Austpac, the SR plant and secure exclusive licensing rights to Austpac’s Enhanced Roasting and Magnetic Separation (ERMS) synthetic rutile technology. Iluka’s participation in the project relies on the completion of an independent, bankable feasibility study for the proposed 30,000 tonne-a-year SR plant. It also depends on Austpac obtaining finance and the two companies agreeing on the minimum price for the synthetic rutile.

Tarnagulla refloat The rich Tarnagulla gold mine west of Bendigo is to be refloated in a new Australian Stock Exchange-listed vehicle to explore for extensions of the Mine which closed in 2000. Tarnagulla Resources Ltd is seeking to raise $2.5 million to conduct a major exploration program in the area around the old mine workings. The Tarnagulla gold mine was last worked by Reef Mining, which was taken over in 2000. Former Reef Mining directors Doug Derham and Dick Sandner acquired the Tarnagulla mining licence into a private company after the takeover of Reef Mining but have opted to rejoin the public company lists to raise additional capital. The Tarnagulla goldfield has produced over 560,000 ounces of gold, but the most recent operation produced 53,000 ounces of gold from 57,400 tonnes of ore, illustrating the highgrade nature of the orebody. Gold was extracted from the rich “Nick O' Time” ore shoot, which the company's directors believe is repeated in a series of “en echelon” lines of reef extending north and south of the current mine workings. Already two drill holes in the extended areas of the mine have encountered encouraging signs of additional orebodies. One drill hole in the North Watts Reef segment of the licence produced a drill intersection of 0.7 metres grading 14.5 grams of gold per tonne. The rich Nick O' Time shoot was located by following up a similar grade drill intersection, Mr Sandner told Discovery. Tarnagulla Resources is also focused on exploring a large magnetic anomaly near Penshurst in Victoria's Western district.

History helps Two histories on gold mining in Fosterville raised $2,600 for the CFA this year. Perseverance Corporation Ltd produced The Allan Stewart Collection, a pictorial history of Fosterville, and The Fosterville Collection of memoirs. Many of the books were sold at the “Back to Fosterville” celebrations, held annually the day after the AFL Grand Final.

06 DISCOVERY

Favoured state A rapid increase in exploration spending augurs well for the resources sector ineral exploration is surging in Victoria with new companies moving into the state at the fastest rate in decades. The number of new mine developments in the state is also multiplying as exploration uncovers new resources. Modern technology now drives exploration with sophisticated airborne survey methods now common tools in the minerals search. Airborne magnetic, radiometric and even gravity surveys can quickly scan large areas and identify localised sections of interest that can be followed up with traditional ground sampling and drilling. The techniques attract interest in Victoria’s potential for new gold deposits as well as copper and other base metals, titanium metals, other mineral sand products and even diamonds.

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“It is the highest quarterly expenditure in Victoria since 1996. Similarly, the annual expenditure for 2002–03 is the highest since 1996–97 and the second highest recorded,” Mr Roberts said. “By comparison with the rest of the country, Victoria also had an excellent result, with the state’s share of national expenditure being 7.1 per cent for the quarter and 6.3 per cent for 2002–03. This compares with 5.3 per cent for 2001–02 and only 2 per cent a decade ago.” He added that the rapid escalation in exploration spending reflected the success of the Victorian Government's encouragement for mineral exploration, a strategy led by the extension of the Victorian Initiative for Minerals and Petroleum (VIMP).

ABS STATS SHOW VIC GROWTH

ATTRACTING INVESTOR INTEREST

The latest Australian Bureau of Statistics exploration figures reveal that Victorian mineral exploration spending for the June quarter 2003 rose to $14.5 million. That compares with $12.l million spent in the March quarter and $11.2 million in the June 2002 quarter. Victoria’s annual exploration expenditure for 2002–03 jumped 36 per cent to $46.2 million compared with $33.9 million in 2001–02. Phil Roberts, manager of the Geological Survey of Victoria, described the latest figures as an “excellent result” for Victoria.

The increase in exploration in Victoria has ignited interest from the financial community. The Sydney-based Fat Prophets group recently published a report assessing the investment merits of Bendigo Mining, Ballarat Goldfields and Perseverance Corporation. The study omitted MPI Ltd’s existing 100,000 ounce-a-year gold project at Stawell. The rapidly rising mineral exploration data and the growing list of new mining projects being planned suggest the mining industry is undergoing a substantial resurgence as global commodity prices surge on the back of improving economic forecasts for Asia and the US.

More information

Phil Roberts Manager Geological Survey of Victoria (03) 9412 5035

DECEMBER 2003 07

Fosterville’s go-ahead

From left: Hunt’s Pit; core logging; RC drill rig; and Stewart’s United mine, 1898

Perseverance Corporation’s commitment to build its mine near Bendigo is a massive boost to Victoria’s gold industry erseverance Corporation Ltd’s Fosterville gold mine project near Bendigo will start shortly following a $75 million capital raising. The mine, to be in production by December 2004, will become Victoria’s second major gold mine, joining MPI Mines Ltd’s Stawell gold mine as the state’s gold flagship. The New Bendigo Gold Project is also close to development with a planned maximum production rate of more than 200,000

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The company issued 267.9 million new shares at 28 cents each in a deal underwritten by UBS Advisory and Capital Markets Australia Limited. In September Perseverance completed a successful Bankable Feasibility Study which proposed an integrated surface and underground mine and a treatment plant capable of extracting and processing over 800,000 tonnes of sulphide ore a year.

Once in production the Fosterville project is expected to produce an average of more than 110,000 ounces of gold a year

More information John Quinn Executive Chairman Perseverance Corporation Ltd 0412 381 081 Email: info@perseverance. com.au

ounces on the drawing board, while the revitalised Ballarat Goldfields project at Ballarat is moving closer to a mining commitment. The rapid development of new mines, a strong rise in mineral exploration spending in 2003 and a host of new companies coming to Victoria to join the rush, augers well for the state. It vindicates the State Government’s strong support for the industry over the past eight years with its Victorian Initiative for Minerals and Petroleum (VIMP). VIMP has created one of the most comprehensive, publicly available, mineral and petroleum databases of any Australian state. GEARED TO START Perseverance will proceed with its Fosterville redevelopment having completed its fund raising exercise.

08 DISCOVERY

Based on current mineral reserves the planned project has a mine life of approximately 7.5 years but Perseverance chief executive officer John Quinn told Discovery that with a small amount of additional drilling, some ore, currently in the resource category, may be upgraded to reserves category. MORE EXPLORATION Mr Quinn added that exploration to date had concentrated only on about 15 per cent of the Fosterville mining lease area, offering massive potential for additions to the available ore reserves in the future. Perseverance also holds a large exploration tenement position around the Fosterville region. “Should inferred resources – which are not reflected in the current reserves – be converted to reserves, the mine life could be extended to approximately ten years.” Mr Quinn said in a statement to the Australian Stock Exchange.

The Fosterville project contains an estimated gold resource of 1.15 million ounces, compared with the higher standard proven ore reserve which contains just over 900,000 ounces of gold. “The development phase of the project is expected to take approximately 16 months from October 2003, including two-and-a-half months of commissioning. With funding arrangements in place in November 2003, the first gold pour from the project should take place in the December quarter of 2004,” Mr Quinn said.

He said Perseverance was investigating the use of recycled and processed effluent water for the mine’s process water requirements. That could dovetail neatly with the proposal by Bendigo Mining and Coliban Water to recycle the waste water extracted from the nearby underground mine workings at Bendigo and the city’s sewage system to generate a large volume of clean, useable water for both irrigation and industrial use.

Perseverance was also committed to ensuring that the project will be an environmental and social benchmark for metalliferous mine development in Victoria “The start-up capital associated with the project is estimated at $75 million. This amount will fund pre-stripping of the Falcon pit, portal establishment, initial decline development for access to the Phoenix and Ellesmere ore bodies, the treatment plant, related infrastructure, commissioning and start up expenses.” He said the company did not expect to require any extra funds to complete the development. “Perseverance believes that the funding sourced from the placement, shareholder purchase plan and credit facilities will be sufficient to fund project development, provide adequate working capital and ensure that – allowing for the realisation of operating cash flow from the project – the company will be able to fund its exploration program to assess the larger resource potential at Fosterville and provide returns to shareholders,” Mr Quinn said. Once in production the Fosterville project is expected to produce an average of more than 110,000 ounces of gold a year at a cash operating cost of $A321 per ounce and will employ about 150 people. Mr Quinn said that Perseverance was also “committed to ensuring that the project will be an environmental and social benchmark for metalliferous mine development in Victoria”.

PROCESSING The Fosterville project will consume moderate amounts of water to operate its unique bacterial leaching ore processing facility. After crushing and the production of a high-grade concentrate the sulphide style Fosterville ore will be processed using the patented BIOX™ process pioneered by Goldfields Ltd of South Africa, which was preferred to Pressure Oxidation, which is also in use at projects around the world. 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. In earlier days sulphide-style ores were typically roasted in furnaces to remove the sulphide components, producing highly toxic sulphur fumes often resulting in acid rain which can devastate surrounding vegetation. The BIOX™ process eliminates those emissions and extracts the gold in an environmentally friendly fashion. “Gold recoveries via the BIOX™ process are expected to be 90 per cent or greater,” Mr Quinn said.

HOW IT BEGAN Prospectors and miners thought they’d discovered a second Bendigo when gold was first struck at Fosterville in 1894. The Minister for Mines and Water Supply, Henry Foster, was active in developing the area for mining and the town’s name continues to recognise his initiative. By combining the two sections of his Ministry he saw to it that the essential water supply was constructed to reach the mining operation. The water race was dug by hand across 26 miles (41.6 km) from Bendigo East. Diggers were paid six shillings per chain to take the water to the new mine site. At the height of mine activity in about 1898 2,000 people lived at Fosterville to mine and support the mining community. Mining ceased in 1905 after several difficulties, including the failure of a deep shaft sunk in 1903.

DECEMBER 2003 09

Stawell’s gift Innovative modelling techniques detecting gold targets under the Murray Basin sediments PI Mines Ltd has discovered a new “Magdala style” gold orebody at its Kewell Dome project. The discovery north-west of Stawell is the first new “blind” orebody to be found using innovative techniques adopted by MPI to look under the blanket of Murray Basin sediments covering much of north-west Victoria. MPI has been exploring the areas north and west of Stawell using complex groundwater flow modelling techniques to predict where minerals may have been deposited. It identified several likely targets with the Kewell prospect leading the pack.

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Stawell mine manager Bill Colvin; and the ore processing circuit at the Stawell mine

While further drilling is needed to determine the viability of the discovery for commercial mining, MPI Mines’ model suggests that the orebody could match the scale of the existing Magdala orebody at Stawell. Mining at Stawell currently produces about 90,000 ounces of gold a year. Since 1992 the Stawell mine has produced over 850,000 ounces of gold. Exploration has identified a total of 2.1 million ounces of gold. The mine has a current reserves position of 1.6 million ounces of gold. The current mine life extends to 2004, but the discovery of the

The discovery of the Golden Gift orebody provides the potential for a significant extension of the mine’s life

More information Brian Phillips Chief Executive Officer MPI Mines Ltd (03) 9628 2222

In its first pass drilling program in October MPI struck gold. In a recent report MPI revealed that drilling at Kewell Dome had intersected mineralised ore. The best intersections were 4.2 metres at a grade of 3.46 grams of gold per tonne from a depth of 149.6 metres including 0.73 m @ 9.55 g Au/t; 2.3 m @ 2.20 g Au/t from 161.6 m; and 4.12 m @ 12.6 g Au/t from 180.4 m including 1 m @ 42.7 g Au/t where visible gold was present. Drilling at the Wildwood Dome prospect, 20 kilometres north of Stawell was also successful with the two initial diamond drill holes intersecting a new mineralised zone. The intersections at Wildwood included 4 m @ 5.21 g Au/t from 119.8 m including 1 m @ 12 g Au/t; and 3.45 m @ 3.84 g Au/t from 131.7 m including 1 m @ 5.74 g Au/t, also with visible gold. “This represents the discovery of a new mineralised zone under 120 metres of Murray Basin cover, 100 kilometres northwest of Stawell. The result further validates the MPI Mines’ predictive model for the discovery of new goldfields along the Stawell belt.”

10 DISCOVERY

Golden Gift orebody, beneath the existing mine, provides the potential for a significant extension of the mine’s life. Other targets to be explored in the mining licence include structurally controlled hangingwall lodes, Golden Gift South and the east flank of the Magdala dome. MPI’s regional exploration has three new prospects in the Stawell Corridor on their managed tenements stretching over 140 kilometres north of the existing mine. A drilling program at Golden Gift recently helped improve the average grade of the orebody. A total of 33 resource definition holes were completed and MPI said in its quarterly report that the “intercepts highlight the improved tenor of grades being intersected in the Golden Gift area. The drill holes completed are within areas of proposed development and stoping over the next 12 months.” The drilling program at the Kewell and Wildwood domes targets will initially cost $700,000 during the remainder of 2003 and early 2004. This will allow MPI to lift its ownership of the exploration tenements to 58 per cent.

Making cyanide safe Good cyanide management is a key objective of Victoria’s rapidly growing gold industry old looks great in jewellery and is vital in modern electronics, but its production can be potentially damaging to the environment. Victoria still bears many scars from poor mining and processing practices in the past. But modern science and management practices are overcoming many of the difficulties in extracting gold from the surrounding ore. For much of the past century cyanide was used to extract gold from crushed ore with the modern cyanide circuit now forming the universal gold processing option.

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BEST PRACTICE WORKSHOP In September the Australian Centre for Mining Environmental Research (ACMER) hosted a workshop on cyanide use and management in the gold industry. The workshop held in

industry had a good record on worker health and safety The HCN plant associated with the use of cyanide in metallurgical processing. at Stawell But Dr Mudder noted that “beyond worker health and safety during operations, the major onsite environmental issue relates to controlling the cyanide concentration in uncovered ponds to protect wildlife”. He reported that the major incidents in the last 25 years related primarily to the lack of a dynamic site water balance and a comprehensive water management plan. Poor implementation of water management plans and the lack of integrity in waste containment and solution transport systems were also responsible for major incidents occuring. Dr Mudder’s paper highlighted that water management, water treatment and water quality were key components in preventing a cyanide incident.

The key component to preventing a cyanide incident involves water management, water treatment and water quality Bendigo attracted more than 50 delegates from Victoria, Tasmania and NSW. A host of industry representatives, government regulators, environmental groups, scientists and service companies attended the Bendigo workshop. The two biggest problems identified are the possibility of environmental contamination from spills or poor handling practices of the raw chemical, and the subsequent release of cyanide contaminated solutions to the environment after the gold processing operation is complete. Human and wildlife exposure to cyanide also poses significant challenges. WORK PRACTICES THE KEY TO SAFETY In a presentation on cyanide spills prevention and response, a paper by expert Dr Terry Mudder showed that the gold mining

SAFEGUARDING MPI’S APPROACH MPI Ltd, operator of Victoria’s largest gold mine at Stawell, presented a cyanide handling and control case study to the workshop. The Stawell gold mine operator, Peter Wemyss, told the workshop that MPI adopted a stringent series of controls to limit dangers of cyanide contamination. These range from the construction of a dedicated cyanide mixing area and a secure transport unloading and storage area. Pipework carrying cyanide solutions are clearly marked and the widespread use of fixed and hand held cyanide monitors reduce human exposure to hydrogen cyanide gas. Cyanide solutions in the plant are also dyed so staff can readily identify the dangerous fluids from less toxic solutions.

More information Ron McLean Technology Transfer Manager ACMER (07) 3327 4556

DECEMBER 2003 11

End Victoria’s natural gas link to South Australia nears completion

he $500-million SEA Gas pipeline from Victoria to South Australia will be completed before Christmas. This will provide a major new link in the national natural gas grid. The SEA Gas pipeline – a three-way joint venture between International Power, Origin Energy and TXU – is one of the most important energy infrastructure projects in Australia, taking natural gas from offshore fields at Minerva, Yolla and other Victorian sources to meet the needs of a range of energy providers in South Australia. Most of the gas will be used in power generation. About 70 per cent of South Australia’s electricity is generated by gas-fired power plants, but the state previously relied totally on gas supplies carried by the Moomba–to–Adelaide gas pipeline. Laying the SEA Gas pipeline was completed in November, with commissioning of the pipeline and its associated compression facilities to follow. The first commercial supplies of gas are expected to flow into Adelaide early next year and will double the amount of gas available to South Australians. “That means added security of supply for gas and electricity and increased competition in the gas market, which will help put downward pressure on prices,” said South Australian Energy Minister Pat Conlan.

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of pipe

Victoria is now the major gas hub for the entire eastern seaboard of Australia, with gas pipeline links to Tasmania, South Australia and NSW

DECEMBER 2003 13

The pipeline was laid at rates of up to four kilometres a day

OPENING MARKETS Victoria is now the major gas hub for the entire eastern seaboard of Australia, with pipeline links to Tasmania, South Australia and NSW. The SEA Gas pipeline links Adelaide’s gas supply with the eastern states and provides the potential to increase gas supply to South Australia’s regional areas. A new gas pipeline link between NSW and South Australia also allows Victorian gas to be traded into the growing Queensland market. SMOOTH CONSTRUCTION Work began on the 690-kilometre SEA Gas pipeline in October 2002. Construction rates up to four kilometres of pipeline a day built the line in quick time, with construction crews laying and welding up to 200 18-metre lengths of pipe every 24 hours. The last sections of pipe traversed the Adelaide Hills, and were laid at the Iona gas plant near Port Campbell in south-west Victoria to join the pipeline. A gas receiving station adjacent to Pelican Point Power Station was also completed. The pipeline runs from the Iona gas plant to Pelican Point in Adelaide’s northern suburbs along an inland route passing south of Casterton and Tailem Bend. Gas supplies to industry and towns along the route will also be developed, bringing the benefits of natural gas to a much wider market. The main gas sources for the project are the BHP Billitonoperated Minerva gas field, located 15 kilometres offshore from Port Campbell and the Yolla field in Bass Strait, 100 kilometres offshore from Westernport Bay. Other gas sources in Victoria are likely to feed the pipeline.

More information Jim Kouts Corporate Affairs Manager (Australia) International Power (0417) 866 474

ECONOMIC BENEFITS SEA Gas (South East Australia Gas Pty Ltd) was created to build and own the SEA Gas pipeline project and is jointly owned by equal equity participants International Power, Origin Energy and TXU Australia. The Spie Capag–Lucas joint venture won the engineering, procurement and construction contract.

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The pipeline project will stimulate more than $1 billion worth of new gas field developments in Victoria by underpinning commercial contracts for several offshore fields. The SEA Gas pipeline has the capacity for 125 petajoules of gas a year through the 450-mm diameter line. It is an open access pipeline, available for third parties to transport gas alongside the foundation partners. Along with its proven economic benefits to Victoria and South Australia the SEA Gas pipeline project partners will set aside $312,000 as a bond to ensure the full rehabilitation of private and Crown land disturbed during the construction. SEA Gas spokesman Jim Kouts said the bond provides additional reassurance to landowners that SEA Gas will honour its commitment to fully rehabilitate land disturbed along the pipeline easement during construction.

Inset: from left, Geelong Mayor Cr Barbara Abley, TXU Australia CEO Steve Philley, Minister for Energy Industries and Resources Theo Theophanous and the member for Bellarine, Lisa Neville, turning on the gas

Gas network grows Victoria’s natural gas network takes in the Bellarine Peninsula he Victorian gas network, already the most extensive in Australia, will extend to the regional centres of St Leonards and Indented Head on the Bellarine Peninsula. TXU Australia is constructing the regional pipeline to connect residents and businesses in the area to the cheaper and environmentally friendly fuel. This allows gas users to switch from bottled LPG gas supplies, adding convenience.

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The second stage of construction extends the pipeline to St Leonards and Indented Head with partial supplies also becoming available by December 2003. The remaining gas supply network throughout St Leonards and Indented Head will be completed during 2004. “Households will save up to $1,200 on their annual gas bill by using natural gas instead of LPG for cooking, central heating

Households will save up to $1,200 on their annual gas bill The City of Greater Geelong is contributing $1.75 million to the construction project through a grant from the Victorian Government’s Regional Infrastructure Development Fund. The project is managed by TXU, which will contribute the remaining $9.25 million of the $11-million project budget. The first stage of construction began in July 2002 and partial gas supplies will come on line at Portarlington by December this year.

and hot water,” said Steve Philley, TXU’s chief executive. According to Mr Philley, TXU’s natural gas project is already delivering benefits for the Bellarine community as a whole. The Minister for Energy Industries and Resources, Theo Theophanous, officially “turned on the gas” to St Leonards and Indented Head earlier this year.

More information TXU Australia Alain Grossbard 0417 36 48 36 or Eliza Anderson (03) 8628 1192

DECEMBER 2003 15

A rich quarry Melbourne’s building boom has been a boon to Victoria’s extractive industries with new demand for sand, clay and stone elbourne’s continued urban growth and the residential and commercial property boom have put more cranes on Melbourne’s skyline than ever before. Record numbers of new homes were built as the pace of urban development escalated in Victoria over the past decade. New skyscrapers have risen in the CBD area and the opening of the Docklands precinct has added an entirely new dimension to the city of Melbourne. Few of us ever stop to consider the origins of the sand used in the mortar in our new home or the source of the clay for bricks and roof tiles. The city area of Melbourne is paved with beautifully cut basalt paving stones, but where did they come from? And where do we find the crushed rock consumed in all new roads, footpaths and concrete buildings? The simple answer is that Victoria is blessed with ample sand and stone resources to meet demand for many decades. But careful planning is needed to ensure those resources are extracted safely, economically and in a manner which is environmentally sound and does not inconvenience the population.

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More information Phil Burn Department of Primary Industries (03) 9412 5138 Extractive Industry Association of Victoria (03) 8662 5333

DEPARTMENT REVIEW That is why the Department of Primary Industries (DPI) has just completed a major review of the sand and stone resources of the Melbourne area. The Melbourne Supply Area – Extractive Industry Interest Areas Review is a major work aiming to protect Melbourne’s sand and stone supplies by identifying resources that lie within the Melbourne Supply

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Area (MSA). The report updates 1993 and 1996 studies and incorporates significant administrative and policy changes that have occurred in the state since 1996. EXTRACTIVE INDUSTRY INTEREST AREAS The purpose of Extractive Industry Interest Areas (EIIAs) is to: ■ Provide a basis for the long-term protection of stone resources from sterilisation by inappropriate land uses ■ Ensure the long-term availability of stone resources for use by the community with minimal detriment to the environment ■ Consider extractive industry values in long-term strategic planning as well as local strategy plans ■ Ensure that planning or responsible authorities consult with all relevant agencies about land use proposals which may impact on the reduction of stone resources within these areas ■ Create awareness that the extractive industry is a potential land use in these areas. Many areas in urban Melbourne have already been developed close to existing quarries or over land with potential for stone resource development. The report noted that “As a result, many sources of quality stone close to potential markets in the Melbourne metropolitan area are no longer available for extraction. “This is particularly important in view of the high weighting of transport costs of quarry products in the price paid … by the consumer. “Due to the ongoing competition between various land uses,

PHOTOS: ANDREW CHAPMAN

Supplier meets suburbia on Melbourne’s eastern outskirts, far left; and CBD construction fuels demand, left

a clear need is emerging to ensure a continuous supply of construction material to the greater Melbourne area in the future,” the report found. However, while the report, compiled by the Geological Survey of Victoria, defines many Extractive Industry Interest Areas it does not preclude parties from applying for a quarry or sand extraction operation outside those areas. In fact, the report concedes that “Significant sand and stone resources often occur outside Extractive Industry Interest Areas. It should not be argued that quarries be precluded outside EIIAs or that areas not defined by an EIIA contain resources of lesser value or importance.” “EIIAs are regarded as areas where extractive industry operations are more likely to be established both for reasons of resource availability and limited planning constraints,” the report states. The Extractive Industry Interest Areas are presented in the report as a series of maps, together with written descriptions of the local resource. While quarries are often disliked by local residents, they provide materials important to all members of modern society. BALANCING NEEDS Sound management of extractive resources demands a careful balance between competing land uses to ensure that sufficient resources remain available for future generations at an affordable cost. In 2001/2002 sales of hard and soft rock totalled more than $354 million in Victoria, an indication of the importance of the industry to the state. In 1993 the former Department of Energy and Minerals released the first report outlining Extractive Industry Interest Areas, which was updated in 1996.

VICTORIA’S ASSETS

But the new version was required to include: ■ Land use and zoning changes that have occurred since 1996 ■ Changes resulting from the planning reform process ■ New resource and geological information. An EIIA designation is applied to land likely to contain stone resources of sufficient quantity and quality to support commercial quarrying but it does not mean that a quarry can automatically be established in these areas. EIIA’s do not: ■ Allow extractive industry as-of-right unless specified by planning schemes ■ Imply that future extractive industry will be confined to these areas ■ Preclude the use and development of land for other purposes. Reference to the Extractive Industry Interest Area Review is made in the State Planning Policy Framework. Planning authorities are required to consider the impacts that any land use proposal or zoning changes may have on the continuing availability of stone resources to ensure that valuable resources are not sterilised by inappropriate land uses. DPI is working with the Department of Sustainability and Environment to ensure that sand and stone resources in the MSA covered by an EIIA are protected by planning scheme overlays. DPI also ensures that individual quarries, both within and outside EIIAs, are protected from encroaching incompatible land uses that have the potential to impact on quarry operations. The review also found that further investigations, including drilling, should be actively encouraged within the identified Extractive Industry Interest Areas to refine the stone potential within these areas. Finally, the review recommended that the Department of Sustainability and Environment, in conjunction with DPI, update the Regional Sand Extraction Strategy – Lang Lang to Grantville study area, to reflect changes to the EIIA boundaries. Copies of the report are available from the Minerals and Petroleum Business Centre or can be downloaded from the DPI website, www.dpi.vic.gov.au

DECEMBER 2003 17

Victoria has a total of 826 quarry or sand extraction operations producing basalt, clay, clayshale, granite, rhyodacite, hornfels, limestone, sand and gravel, quartzite, soil, slate or peat. But the extractive industries typically fall into four main categories: hard rock; sand; clay; and soft rock or gravel. Melbourne has large resources of hard rock particularly in the Werribee, Melton and Whittlesea areas in the north and west, around Healesville and Yea to the east and Berwick and Pakenham in the south-east. Sand is mostly obtained from the Bacchus Marsh, Heatherton, Cranbourne, Bass and Warragul areas. Clay deposits, used for roof tiles and bricks, mostly come from the Craigieburn, Scoresby, Berwick, Bacchus Marsh and Lilydale areas while soft rock and gravel comes from all over Melbourne.

Casino delivers Otway Basin gas will be a significant source for an innovative supply contract ne of the largest natural gas contracts since the 1960s has been written to supply gas from the Casino field. Santos Ltd and its partners in the Vic/P 44 permit in the Otway Basin recently signed a major new long-term gas contract with TXU Australia. And in an interesting twist the Casino contract relied on the results of a gas well that had not even been drilled when the contract was signed. The contract was conditional on the results of the Casino-3 appraisal well, which discovered gas in the main Waarre sandstone target in late October.

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LARGE SUPPLY TXU agreed to purchase up to 293 petajoules (PJ) of gas from the Casino field owners. But the agreement provides an option for greater volumes if required, subject to confirmation of reserves and environmental approvals. TXU has an option to purchase, or an obligation to process, up to an additional 200 PJ of gas at its Iona gas processing facility near Port Campbell, delivering a possible gross contract quantity of up to 493 PJ. In a statement to the Australian Stock Exchange, the Casino

The success of the Casino 3 well almost certainly means the Casino field is commercially viable and likely to be developed quickly If the well confirms the expected gas reserves of the Casino field, 40 kilometres south of Port Campbell, gas supply under the contract with TXU will start in 2006 and extend through to 2017.

More information Eliza Anderson TXU Australia (03) 8628 1192 Bruce Phillips Managing Director AWE Ltd (02) 9460 0165 Email: bjphillips@awexp. com.au Graeme Bethune General Manager Business Development Santos Ltd (08) 8218 5157

partners said a 20-metre gross gas-bearing interval was encountered in the Waarre sandstone target. “Early indications suggest the three Casino wells could prove up a gross gas column of approximately 290 metres in the Casino gas field,” the statement said. AWE managing director Bruce Phillips said the partners would work with Santos, the permit operator, to quickly declare that Casino was a commercially viable development prospect. JOINT OWNERSHIP The Casino gas field is half-owned by Santos, with Australia Worldwide Exploration and Japanese group Mitsui each owning 25 per cent. The Casino gas contract was the first ever gas supply contract between AWE and TXU. The Iona gas processing facility also incorporates the Western Underground Storage facility (WUGS) in which the depleted Iona gas reservoir is used to store gas for periods of peak demand. SHORING UP SUPPLY TXU’s general manager wholesale energy, Len Gill, said supply from the Casino field would ensure a diversified gas supply portfolio in Victoria and South Australia. “We’re very pleased to be working with partners of the calibre of Santos and AWE,” said Mr Gill. “Supply from the

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Ocean Epoch drilling Casino-3

Casino 3 Success In mid-October the Casino-3 appraisal well successfully encountered a major gas column likely to confirm sufficient gas reserves in the structure to allow the field to be developed. The well was also used to collect reservoir information needed for field development planning.

Casino field is a perfect complement to our investment in the SEA Gas pipeline, TXU Torrens Island, TXU underground gas storage and our gas retail activity. Mr Phillips said the gas sales deal with TXU provided the company with substantial growth potential. “VIC/P 44 contains the Casino gas field and several undrilled exploration prospects, all delineated by an extensive, stateof-the-art, 3D seismic data grid,” he said. “AWE moved quickly after farming-in to VIC/P 44 to negotiate and complete a complex transaction, which clearly has the potential to add value for our shareholders. The agreement diversifies AWE’s gas-customer base and complements our existing gas supply agreements,” he said. CASINO HOLDS PROMISE Mr Phillips said signing the TXU contract was a major step towards the commercial development of the Casino gas field and its surrounding exploration prospects. He said the TXU contract enhanced the viability of the Casino field in addition

to the earlier announcement that Mitsui had undertaken to help with the project financing for the development. INNOVATIVE CONTRACT “The TXU contract substantially reduces the commercial risks of the Casino project. It allows the VIC/P 44 joint venture to concentrate on the appraisal activity of the field and the scope for added discoveries within the permit area,” Mr Phillips said. Under the contract Mitsui acquired a 25 per cent stake in Casino from AWE. To settle the deal Mitsui will make a cash payment of $500,000 (plus interest adjustments) to AWE. It will also fund a 25 per cent share of the cost of drilling the Casino 3 appraisal well, acquiring 500 kilometres of seismic data and additional geological, geophysical and engineering work in the permit. In addition to those payments, Mitsui agreed to assist in arranging project financing for AWE’s share of the development.

The well was drilled to a planned total depth of 2,135 metres. Casino-3 is located approximately 29 kilometres south-west of Port Campbell and 24 kilometres westsouthwest of the Minerva gas field. It lies 3.3 kilometres north-east of the Casino-1 discovery well and 2.4 kilometres north-west of Casino-2, which both intersected gas-bearing Waarre sandstone reservoirs.

DECEMBER 2003 19

Bass Strait search Esso Australia and BHP Billiton launch an ambitious program to find new reserves in the Gippsland Basin

he biggest exploration drilling program in more than 20 years will kick off in Bass Strait early next year. The Esso Australia/BHP Billiton program will be looking to locate new gas and oil reserves. Several wells will be drilled in the Gippsland Basin program using a drill rig to be acquired under long-term contract. A jack-up rig capable of drilling from existing platforms and in new locations is expected on site in Bass Strait in February with the program likely to extend well into 2005 if new discoveries are made.

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Aerial view of West Kingfish platform

NEW SEISMIC SURVEY DATA The drilling program is based on data acquired in 2002 from the largest 3D seismic survey ever undertaken in Australia, covering more than 3,900 square kilometres. The objectives of the survey were to identify new exploration

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prospects, provide data to better plan for the depletion of producing fields and to help bring small undeveloped discoveries into production. Drilling will target both oil and gas opportunities and all planned wells will be located within existing production license areas. “We believe there are new oil and gas resources still to be found in the Gippsland Basin,” said Doug Schwebel, Esso Australia Exploration Director. “From an exploration viewpoint, the program is all about finding new potential in a mature basin. In particular, the joint venture will be looking to leverage its ability to commercialise smaller resources due to their proximity to existing infrastructure.” Steve Bell, BHP Billiton Petroleum President of Exploration and Development, said this program will also help extend the productive life of the existing platforms and pipelines.

DECEMBER 2003 21

STILL MORE GAS CAPACITY While the Bass Strait fields still have a large share of the southeast Australian natural gas market the region has the potential to deliver far more gas into the pipeline grid. Mr Heath said the current daily production of 570 million cubic feet compares with a daily peak production capacity of 1000 million cubic feet. In recent years the gas market has changed dramatically with several new sources of supply set to come in to the Victorian market in the next year or two. In addition, new gas pipelines linking Victoria with Tasmania, NSW and South Australia are in place allowing two way gas flows between states.

Geco Beta vessel recording Bass Strait Northern Fields 3D seismic survey

BASS STRAIT’S RESOURCES The Esso/BHP Billiton joint venture has produced more than 3.5 billion barrels of oil and 5 trillion cubic feet of gas in the 34 years since production began in October 1969. Current production is about 140,000 barrels of crude per day and 570 million cubic feet of gas per day. The joint venture has invested more than $400 million a year in the Bass Strait fields in the past five years, as well as the associated onshore facilities, making it one of Australia's largest ongoing oil and gas investment programs.

NEW COMPETITIVE GAS MARKETS Mr Heath said substantial gas industry reform had allowed the market to be transformed. “Thanks to a combination of factors we have welcomed a new era of market expansion and competition in the south-eastern Australian gas industry,” Mr Heath told the conference. “Arguably the most important set of reforms took place in Victoria. At their core was the agreement between Esso/BHP Billiton and the State of Victoria to restructure the long-term Victorian gas supply contract with state-owned Gascor. “The changes … allow(ed) us to market Gippsland gas interstate, particularly into NSW. At the same time, Gascor became free to purchase gas from any seller. “The past 18 months have witnessed ever-increasing competition, with major new suppliers, particularly in Australia's north, all vying for position as Gippsland Gascor and Central Australian Cooper Basin contracts draw to a close. Mr Heath said the new competition in the gas business gave customers a high degree of service and low prices.

The drilling program is based on the largest 3D seismic survey ever undertaken in Australia, covering more than 3,900 square kilometres

More information Anna Schulze Esso Australia (03) 9270 3182 0408 532 589

JOINT VENTURE EXPERIENCE Esso’s Director of Gas Marketing, Nick Heath, says the exploration program reflects confidence in Bass Strait’s ability to remain one of Australia’s biggest suppliers of gas for domestic use. Mr Heath told the recent South-East Australian Upstream Oil and Gas conference in Melbourne that, “we have an array of very effective exploration technologies built on a wealth of experience and an extensive exploration effort is underway”. Mr Heath issued a warning to other gas producers in the region that Bass Strait had been a major producer for a long time and the Esso/BHP Billiton joint venture planned to maintain its strong position in the natural gas industry. “We have a reliable, efficient gas production system and more experience than anyone in the Australian industry at developing and producing offshore gas fields,” Mr Heath said. “The Esso/BHP Billiton joint venture has plentiful reserves and we are investing aggressively to expand these reserves. While we have made significant new sales commitments in recent months, we still have uncommitted reserves available and remain active participants in the market, seeking to meet the needs of our existing and potential new customers,” he said. “2003 presents an exciting time in the gas industry. Esso is taking an active role in the market and we believe that the future for Gippsland is very bright indeed,” Mr Heath said.

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“In fact, producer prices in Victoria are among the lowest in the OECD and are currently about one-third of the prices paid in the large US and European markets,” he said, adding that, “most industry participants would anticipate that these price levels will continue for many years”. Esso expects gas demand to grow 2.5 per cent a year, a conservative view within the gas industry, with Bass Strait supply estimated to grow at the same rate as demand. But with other sources of supply coming to the market Victoria retains comfortable gas supplies for up to 15 years with any new discoveries simply adding to that self-sufficiency. That will provide a challenge for new players to find markets for their gas, Mr Heath said. NEW SUPPLY CONTRACTS Early this year Esso completed a deal with TXU Australia and AGL Ltd for the supply of Gippsland gas. Initially, TXU will take 20 petajoules a year for its power station in Adelaide (see page 12) and in the longer term 860 PJ of Gippsland gas will be used to supply TXU's customers in Victoria. AGL will take 563 PJ of Gippsland gas, some of it into the Sydney and Canberra markets through the Eastern gas pipeline, and the majority into Victoria to supply customers once the Gascor contract ends. The sales figures and the new exploration program solidly back Mr Heath’s claim that Esso and BHP Billiton plan to be major players in the local gas industry for a long time.

Block of promise Nexus is set to drill a highly prospective exploration permit area in Bass Strait exus Energy has been granted a 135-square kilometre petroleum exploration permit in the Gippsland Basin area of Bass Strait. This award enhances Nexus’ growing portfolio of prospective acreage in the region. The new Gippsland Basin exploration permit was granted in September. The company won 100 per cent interest in the permit VIC/P56, covering an area previously gazetted as area V02-4, for a six-year period. The new permit is regarded as a highly prospective block within in the world-class Gippsland oil and gas province which boasts one of the highest exploration success rates in Australia. It is close to several significant oil and gas producing fields including Tuna, Flounder, Halibut, Blackback and Marlin, and has two large prospects at the Top Latrobe reservoir level. Each of the new prospects has the potential to contain up to 50–60 million barrels of oil reserves. A 3D seismic survey, acquired in 2000 over almost half of the permit, was conducted by the Esso/BHP Billiton joint venture as part of their large Northern Margin 3D survey completed last year. The data from that survey will be available to Nexus during its primary three-year work program and will help clarify existing prospects before drilling.

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HIGH PROSPECTIVITY Nexus Energy chief executive Ian Tchacos said the company was strongly attracted to the permit because of its proven prospectivity and variety of play types, with several prospects already identified. He said the existence of 3D seismic survey results, which will be available to Nexus free of charge during the primary term, and the proximity to other current non-commercial reserves such as the Manta oil and gas field, was also a big attraction.

Any nearby discovery could result in the Manta field being tied back to allow additional production and enhance the economics of any new project. Mr Tchacos added that the new permit is relatively unexplored with only one well previously drilled in 1983. “Securing 100 per cent of the permit represents an ongoing strategy for Nexus of securing high-quality exploration opportunities in prospective acreage proximal to developing infrastructure and markets,” Mr Tchacos said. “The high equity level which Nexus holds in the permit area provides the opportunity for the company to gain leverage from its technical and commercial skills by attracting joint venture participants through a farm-in. Nexus intends to continue to focus on the Gippsland and Bonaparte basins as core areas for exploration,” he said.

DECEMBER 2003 23

More information Ian Tchacos Chief Executive Nexus Energy (03) 9620 0320 or email itchacos@ nxs.com.au

Shifting sands The Hamilton mineral separation plant moves ahead Artist’s impression of the proposed plant at Hamilton

Victoria’s booming mineral sands sector moved ahead in September when planning approval for Iluka’s mineral separation plant (MSP) in Hamilton was granted. The proposed plant, which will initially process minerals from the Douglas mine site near Horsham, was approved by Planning Minister Mary Delahunty. Iluka’s managing director, Mike Folwell, said the planning approval was a major milestone for the project. “This approval will now enable Iluka to finalise its plans for the MSP location and make the investment necessary to undertake a detailed feasibility study to finalise detailed engineering and design work and further refine capital expenditure and timing estimates,” Mr Folwell said. “Although subject to the feasibility study outcome, we expect to invest approximately $190 million to develop the Douglas mine site, MSP and associated infrastructure,” he said. “Major construction work is expected to commence in the first half of 2004, with mining commencing in late 2004 and production of finished products being achieved in the second half of 2005”. IMPROVED WATER SUPPLY To ensure a reliable water supply Iluka plans to construct a pipeline to the Douglas site from Rocklands Reservoir. The Wimmera-Mallee pipeline project aims to replace much of the existing Wimmera-Mallee open irrigation channel system with enclosed pipes, saving up to 70 per cent of water currently entering irrigation channels lost through seepage or evaporation. Funds provided by Iluka will contribute to the project. When complete the pipeline system will replace 17,500 kilometres of open earthen channels with piping, saving 93,000 megalitres of water a year and will help control salinity. Transporting the water in pipes reduces water losses which can be used for environmental flows in Australia’s strained river systems or made available to industry.

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The introduction of a piped-water delivery system is a critical project for the Wimmera-Mallee region and is generally well supported by the community. The main goals of the project are to: ■ To enhance the amenity for urban and rural communities in the Wimmera-Mallee region with corresponding upgrading of the social fabric of the entire region. ■ To provide a sustainable overall enhancement of environmental values in the Wimmera-Mallee region. ■ To create an improved opportunity for regional and community wealth generation and sustained employment growth in the Wimmera-Mallee. ■ To deliver a secure and sustainable supply of good quality water to all user groups in the region; for urban water supply; domestic and stock water supply; industrial and commercial uses; recreation; and for restoration of flows in rivers, lakes and wetland areas. However, there will not always be enough saved water to satisfy all of these demands and the cost of satisfying some of the demands may be too high compared with the benefits. A major study of the uses of the saved water is currently underway throughout the Wimmera-Mallee region. The Victorian Government, which has already contributed $77 million to the project, considers the pipeline system a major element in ensuring the future sustainability of water resources in the Wimmera-Mallee region. Mike Folwell said Iluka is playing its role in that project and the industrial development of the region. “Iluka will establish a community and environment committee to provide a clear and transparent process in respect to the operations of the mineral separation plant. This process will enable neighbouring landholders and the general community to participate in the monitoring of compliance with all of the environmental conditions contained within the planning permit approval,” he said.

Iluka expects to invest approximately $190 million to develop the Douglas mine, mineral separation plant and associated infrastructure In September Iluka also reported on completion of its pre-feasibility study for the development of the Douglas mineral sands project in the Murray Basin in south-west Victoria. The study focused on refining the original plan to develop the Douglas mine near Horsham and a large-scale minerals separation plant near Hamilton to produce finished products in 2005. Work is also continuing on development plans for a startup in mid-2007 of mining and mineral concentrating operations at the KWR deposits, near Ouyen.

EXPLORATION In its annual report Iluka said that the majority of its exploration activity in the first half of 2003 centred on the Murray Basin, Western Australia and the company’s mining areas in the US. In the Murray Basin, exploration efforts concentrated on Iluka’s NSW tenements, with the initial reconnaissance of the two newly acquired tenements.

More information Ms Jordeana Cain Community Relations Manager Iluka Resources Limited (03) 5551 2300

DECEMBER 2003 25

St Arnaud’s secrets Mapping geological history points to new gold prospects in Western Victoria new study of the geology of the St Arnaud region in western Victoria provides new clues in the search for gold deposits. The study, based on the 1:250,000 scale mapsheet of the St Arnaud area, represents a major new geological interpretation of the region. It highlights gold-concentrating structural

A Figure 1: Total magnetic intensity of the St Arnaud area; the intensity layer is the first vertical derivative of the magnetic data

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domes in the Palaeozoic age bedrock (about 500 million years), based on the boundary between magnetic and non-magnetic sedimentary rocks. The St Arnaud report will be released by the Department of Primary Industries in 2004 as part of a series covering the areas of concealed Palaeozoic geology in Victoria. The area north

and west of Stawell is attracting major exploration interest from mining companies and forms the basis of a Cooperative Research Centre study with the CSIRO and local groups. The St Arnaud report, written by David Moore, a member of the Geological Survey of Victoria regional geology team, used the geophysical and geological signatures of the rock units in the area to describe them and their relationships with each other. THE ST ARNAUD REGION The St Arnaud region lies on the southern edge of the Cainozoic (up to 65 million years) sediments of the Murray Basin and the northern edge of Palaeozoic sedimentary rocks and granites of the Western Victorian uplands. The magnetic and gravity responses of the Palaeozoic units in the south allow them to be traced north under the Murray Basin cover and to establish their structural and stratigraphic relationships. The radiometric and digital terrain model data also help outline the Murray Basin surface, particularly the host for the heavy mineral sand deposits, the Parilla Sand (P in Figure 1). The oldest rocks sub-cropping are the basalt slivers present in the Moornambool Metamorphic Complex and in the hanging wall of the Avoca Fault (T). These ocean floor tholeiitic basalts formed during the Neoproterozoic to Early Cambrian Rodinian break-up, more than 500 million years ago. Although only a few allochthonous occurrences are known, the entire area is believed to be floored by these basalts. They are probably the ultimate source for the gold. The edges of the allochthonous slivers also host gold occurrences north of Stawell.

boundary in the turbidite pile, since it seems to have truncated some of the magnetic stratigraphy. The other units have been separated using these two markers. This magnetic interpretation implies that some rocks up to 50 kilometres east of the Avoca Fault may be better classified as part of the St Arnaud Group rather than the Castlemaine Group, since they are magnetic and not known to contain graptolites. Another implication is that the boundary between the magnetic and non-magnetic metaturbidites may be a widespread stratigraphic boundary, and so can be used to define structural domes beneath the Murray Basin. This is important for gold exploration, since gold has long been known to concentrate in anticlinoria. GOLD MINERALISATION The regional deformation of the area took place during the Benambran Orogeny (mountain building period), from 460 to 420 million years ago. The trends of deformation are different either side of the Avoca Fault; this may be related to the shapes of the cratonic basement either side of the deforming sedimentary pile as much as to different ages of deformation. Deformation was followed by the major gold mineralisation events and then by granite intrusion at about 400 million years. Later, the Tabberabberan Orogeny caused significant brittle faulting and fault reactivation. It also remobilised small amounts of gold into these late structures, potentially giving a pointer to larger non-outcropping deposits in the Western Victorian Uplands. It may be particularly important east of the Avoca Fault, where 60 million ounces of gold has been won, but where only two significant discoveries have been made in the last 100 years.

The area north and west of Stawell is attracting major exploration interest from mining companies and forms the basis of a Cooperative Research Centre study with the CSIRO and local groups MAGNETIC FEATURES West of the Moyston fault (M) there is little outcrop, but the rocks below the Murray Basin cover have been correlated with the Glenthompson Sandstone and the Mount Dryden volcanic belt; part of the Mount Stavely Volcanic Complex. Using the magnetic character of the rocks east of the Moyston Fault, the Cambro-Ordovician (about 500 million years) turbidite pile has been subdivided into seven units. The most prominent magnetic features are: ■ A continuous magnetic layer with a response of up to 30°nT that can be traced as a continuous feature in the hanging wall of the Percydale Fault for about 70 kilometres. Because it is so persistent along strike, there is some confidence that correlations across strike may be valid, particularly as the enveloping surface of the whole package has previously been seen to be flat. If the unit is coherent, it may mark a time of less sedimentary input into the region, either because of a major change in the discharge patterns of sediments further west, or a generally inactive period. ■ The easternmost part of the area has a major transition from magnetic to nonmagnetic metaturbidites (best seen near N). This transition correlates well with the first appearance of graptolites in the rocks, a critical characteristic of the Castlemaine Group. It may also mark a significant internal

OTHER FORMATIVE EVENTS Over 200 volcanic plugs have been identified below the Murray Basin. These may be the source of the volcanic detritus in the Eumeralla Formation of the Otway Basin. Since this is essentially coeval with the deposition of the unit, it suggests an age of volcanism of about 110 million years. It also suggests that the extension in the Otway Basin came as far north as St Arnaud allowing streams carrying the detritus to flow south. The West Victorian uplands started to form about 50 million years ago when the Otway Basin rifting broke through to the mantle and that part of Australia finally split off from Antarctica. The uplands reversed the southward flowing streams and the Murray Basin began collecting sediment, the Olney Formation and its upstream equivalents the White Hills Gravel and the Calivil Formation. Since the last regression, at about 5 million years, Parilla Sand in the south of the region rose about 60 metres compared to the northern part. Quaternary sediment has partly covered the Parilla Sand and some formerly west-flowing streams, like the Richardson and Avon rivers, may have changed course in response to the tilting.

More information Peter O’Shea Manager Geological Mapping Geological Survey of Victoria (03) 9412 5093

DECEMBER 2003 27

review July to September 2003 MINERAL EXPLORATION LICENCE APPLICATIONS Title No.

Status

EL4750 EL4751 EL4752 EL4753 EL4754 EL4755 EL4756 EL4757 EL4758 EL4759 EL4760 EL4761 EL4762 EL4763 EL4764 EL4765 EL4766

APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION CANC/AMALG APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION

Event

Map Sheet

Primary Owner

Event Date

Area Size

BAIRNSDALE WILLAURA HAMILTON MAFFRA BAIRNSDALE CORANGAMITE CORANGAMITE BIRCHIP ARARAT WARRACKNABEAL NHILL HORSHAM NHILL ALBACUTYA BAIRNSDALE HORSHAM MITIAMO

SYNERGY METALS LTD WILLAURA MINERALS PTY LTD GOLDEN SIGNATURE NL AREM MINING NL PACIFIC MINERALS PTY LTD IRONBARK MINERALSANDS PTY LTD IRONBARK MINERALSANDS PTY LTD ILUKA MIDWEST LTD RANGE RIVER GOLD NL ANGLO AMERICAN EXPLORATION (AUST) P/L ANGLO AMERICAN EXPLORATION (AUST) P/L ANGLO AMERICAN EXPLORATION (AUST) P/L ANGLO AMERICAN EXPLORATION (AUST) P/L ANGLO AMERICAN EXPLORATION (AUST) P/L PACIFIC MINERALS PTY LTD BASIN MINERALS HOLDINGS PTY LTD WEDDERBURN MINING PTY LTD

15/07/2003 15/07/2003 11/08/2003 12/08/2003 13/08/2003 26/08/2003 26/08/2003 26/08/2003 08/09/2003 09/09/2003 09/09/2003 09/09/2003 09/09/2003 09/09/2003 19/09/2003 24/09/2003 30/09/2003

270 GRATS 72 GRATS 442 GRATS 458 GRATS 243 GRATS 11 GRATS 6 GRATS 1 GRAT 12 GRATS 32 GRATS 474 GRATS 181 GRATS 309 GRATS 425 GRATS 125 GRATS 1 GRAT 310 GRATS

MINERAL EXPLORATION LICENCES GRANTED Title No.

Status

Event

Map Sheet

Primary Owner

Event Date

Expiry Date

EL4705 EL4740 EL4628 EL4737 EL4741 EL4542

CURRENT CAN/AMAL CURRENT CURRENT CURRENT CURRENT

GRANT GRANT GRANT GRANT GRANT GRANT

BACCHUS MARSH CORANGAMITE DUNOLLY HORSHAM WEDDERBURN DUNOLLY

EROMANGA HYDROCARBONS NL PURUS ENERGY LTD WEDDERBURN MINING PTY LTD NEWCREST OPERATIONS LTD PROVIDENCE GOLD AND MINERALS PTY LTD IRONBARK MINING PTY LTD

10/07/2003 10/07/2003 10/07/2003 25/07/2003 08/08/2003 18/09/2003

09/07/2008 10/07/2003 09/07/2008 24/07/2008 07/08/2008 17/09/2008

MINERAL EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED Title No.

Status

Map Sheet

Primary Owner

Event Date

Expiry Date

EL4496 EL4497 EL3441 EL4657 EL4658 EL4280 EL4281 EL4428 EL4649 EL4581

SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED CANCELLED

ARARAT ARARAT BAIRNSDALE HEATHCOTE HEATHCOTE HEATHCOTE HEATHCOTE HORSHAM DOOKIE BALLARAT

PHILIP G ROSENGREN PHILIP G ROSENGREN GIPPS AUSX PTY LTD SELECT RESOURCES PTY LTD SELECT RESOURCES PTY LTD AGD OPERATIONS PTY LTD AGD OPERATIONS PTY LTD IMPERIAL MINING INVESTMENTS PTY LTD SELECT RESOURCES PTY LTD PAUL R MESSENGER

08/08/2003 08/08/2003 21/08/2003 08/09/2003 08/09/2003 18/09/2003 18/09/2003 18/09/2003 18/09/2003 18/09/2003

08/08/2003 08/08/2003 21/08/2003 08/09/2003 08/09/2003 18/09/2003 18/09/2003 18/09/2003 18/09/2003 18/09/2003

MINING LICENCE APPLICATIONS Title No.

Status

Map Sheet

Primary Owner

Event Date

Area Size

MIN5403 MIN5405 MIN5406

CURRENT APPLICATION APPLICATION

OMEO DUNOLLY DUNOLLY

MUTINY GOLD LTD STRATA MINING CORPORATION LTD SHANE OWEN MOORE

19/08/2003 29/08/2003 30/09/2003

105 HA 257.6 HA 5 HA

MINING LICENCES GRANTED Title No.

Status

Event

Map Sheet

Primary Owner

Event Date

Expiry Date

MIN5392 MIN5393 MIN5337 MIN5394

CURRENT CURRENT CURRENT CURRENT

GRANT GRANT GRANT GRANT

NYAH NYAH DUNOLLY NYAH

DARREN ANDREW GERVASONI DARREN ANDREW GERVASONI CHARLES EDWARD OLDFIELD RONALD MERVYN AYARS

10/07/2003 10/07/2003 10/07/2003 25/07/2003

09/07/2013 09/07/2013 09/07/2008 24/07/2013

MINING TITLES SURRENDERED, CANCELLED OR EXPIRED Title No.

Status

Map Sheet

Primary Owner

Event Date

Expiry Date

MIN4549 MIN4698 MIN5164 MIN5026 MIN5027 MIN5126 ML1461

SURRENDERED EXPIRED SURRENDERED CANCELLATION CANCELLATION CANCELLATION SURRENDERED

CASTLEMAINE NYAH BACCHUS MARSH BACCHUS MARSH BACCHUS MARSH BACCHUS MARSH CASTLEMAINE

TERROCK PTY LTD NORTHERN GYPSUM CO PTY LTD TECH-SOL RESOURCES PTY LTD SIEN L CHOONG MARTIN P STIELOW M STIELOW ENTERPRISES PTY LTD ALLIANCE RESOURCES LIMITED

08/08/2003 11/09/2003 18/09/2003 18/09/2003 18/09/2003 18/09/2003 10/07/2003

08/08/2003 11/09/2003 18/09/2003 18/09/2003 18/09/2003 18/09/2003 10/07/2003

28 DISCOVERY

go to… Business Centre Contacts MINERALS AND PETROLEUM BUSINESS CENTRE Level 8, 240 Victoria Parade East Melbourne. Vic. 3002 T: (613) 9412 4183 F: (613) 9412 5150 Richard Aldous Executive Director Energy and Minerals T: (03) 9412 4508 F: (03) 9412 4183 Peter Vavasseur Business Manager Minerals and Petroleum T: (03) 9412 4598 F: (03) 9412 4183

PETROLEUM DEVELOPMENT F: (03) 9412 5156 Kathy Hill Manager Petroleum Development T: (03) 9412 4208 Kourosh Mehin Manager Petroleum Resources T: (03) 9412 5082 Mike Woollands Manager Basin Studies T: (03) 9412 5135

GEOLOGICAL SURVEY OF VICTORIA T: (03) 9412 5042 F: (03) 9412 5155 Phil Roberts Manager Geological Survey Victoria T: (03) 9412 5035 Alan Willocks Manager Geophysics T: (03) 9412 5131 Peter O’Shea Manager Geological Mapping T: (03) 9412 5093

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

Graham Gooding Regional Manager Ballarat T: (03) 5333 6521 Guy Hamilton Regional Manager Bendigo T: (03) 5430 4697

John Mitas Manager Southern Region Operations’ T: (03) 9412 5083 Hayden Cater Acting Environmental Manager T: (03) 9412 5107 Horacio Haag Manager Petroleum Operations Safety and Environment T: (03) 9412 5101

MINERALS AND PETROLEUM POLICY Bob Harms Manager Petroleum Information T: (03) 9412 5053 Geoff Collins Manager Petroleum Projects T: (03) 9412 5095

MINERALS AND PETROLEUM REGULATION F: (03) 9412 5152

Roger Buckley Manager Mineral Resources T: (03) 9412 5025

Graeme McLauglan Manager Northern Region Operations Chief Mining Inspector T: (03) 5444 6689

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

INFORMATION Janne Bonnet Manager Minerals and Petroleum Reference Centre T: (03) 9412 5022 F: (03) 9412 5157

Doug Sceney Acting Manager Minerals and Petroleum Regulation T: (03) 9412 5069

Kim Ricketts Client Services Officer T: (03) 9412 5103 F: (03) 9412 5157

George Buckland Manager Minerals and Petroleum Tenements T: (03) 9412 4778

Chandri Nambiar Marketing Manager T: (03) 9412 5061 F: (03) 9412 5035

Resources Sector Websites ACADEMIC RMIT Department of Civil and Chemical Engineering 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

GOVERNMENT Australian Governments Geoscience Portal www.geoscience.gov.au Department of Industry Tourism and Resources www.industry.gov.au Department 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 Primary Industries and Resources, SA www.pir.sa.gov.au

Northern Territory Department of Business, Industry and Resource Development www.dme.nt.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 PEAK BODIES Australian Institute of Petroleum www.aip.com.au Victorian Minerals and Energy Council www.vicmins.com.au

DECEMBER 2003 29