OCTOBER 2005
Lakes Oil moves onshore – p6 Pecten High wins at Casino – p08 Water recycling benchmark – p12 Petroleum Exploration booming – p14 Purus hunts Coal Seam Gas – p22 Hazelwood agreement – p26
Victoria’s earth resources journal
Visit Discovery on the web at www.dpi.vic.gov.au/minpet/discovery
minister’s foreword
INDUSTRY BOOMS
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:
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[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. Minerals and Petroleum Division 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. 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 permission of the Department of Primary Industries. © Department of Primary Industries 2004
DISCOVERY
AS INVESTORS REDISCOVER VICTORIA
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his year, I have had the opportunity to promote Victoria’s exploration and investment potential in the earth resources sector to audiences in Australia and overseas. The current high levels of activity provided me with abundant news to present to those audiences.
Victoria now ranks third behind only Queensland and Western Australia for investment in committed resource projects. Victoria is ‘The Place to Be’ for minerals and petroleum investment. This was reinforced during my discussions with major mining companies at the recent Diggers & Dealers Forum in Kalgoorlie. Based on current Australian Bureau of Agriculture and Resource Economics (ABARE) figures, some $2.6 billion is committed to resource projects and others worth several billions are being evaluated. Expenditure on mineral exploration has risen 25% from 2002/03 to the end of 2004 - to a total of over $52 million. This is 6% of Australia’s total exploration budget - an impressive figure given that Victoria has just 3% of Australia’s landmass. Exploration for petroleum is also booming, running at an impressive $104.1 million for 2004. At the recent Association of Mining and Exploration Companies (AMEC) National Mining Congress in Perth, I launched a new campaign to promote exploration and development of Victoria’s earth resources called REDISCOVER VICTORIA, with three key aims. Firstly, to provide information about Victoria’s untapped potential, secondly, to arm companies with knowledge to better target their exploration efforts and thirdly, to put in place processes to ensure companies can exploit their discoveries in the best possible way and time. A closer look at these three aims explains why Victoria’s earth resources sector is booming.
A recent survey of investors in Victoria’s minerals and petroleum industries confirmed what we have known for some time: the State of Victoria has excellent prospectivity. Companies investing here are reaping the benefits. In the past four years more than $4 billion has been committed to new resources projects. This includes new gold mines such as Perseverance’s Fosterville, mineral sands mines
like Iluka’s Douglas operation and Australian junior Anzon’s Basker-Manta Gummy oil development project in Bass Strait.
The good news for investors is that Victoria remains under-explored and the government is actively committed to providing industry with world class geological data to target their exploration efforts.
One of our key mechanisms for achieving this is the Victorian Initiative for Minerals and Petroleum (VIMP). VIMP is the most comprehensive public geoscientific databases available in Australia. Almost $30 million has been committed to VIMP since its inception and our research tells us that this is money well spent. For each dollar invested in VIMP, exploration companies spend at least nine times that amount. In June I announced the seventeenth VIMP data release to a record industry audience. The released geological data and reports are freely available to download from the DPI website and next year’s release is already keenly anticipated. Not only is the Bracks Government providing information and technology to support exploration, we are also committed to encouraging the sustainable growth of the sector by creating an environment that promotes success.
In 2004, the Victorian Government put in place procedures to help facilitate a smooth native title process. Initiatives such as pro forma agreements aim to build sustainable long-term relationships between native title claimants, industry and government. Through the Victorian Competition and Efficiency Commission the Government has engaged in a major review of barriers to regional development. The review received extensive input from the Victorian mining industry. The Commission reported its findings in June 2005 and the Government will respond shortly. My discussions with national and international companies were extremely positive and I look forward to an exciting future agenda for the Victorian earth resources industry. THEO THEOPHANOUS MP
Minister for Energy Industries and Resources
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contents departments Opposite MINISTER’S FOREWORD
I have had the opportunity to promote Victoria’s exploration and investment potential in the earth resources sector to audiences in Australia and overseas. The current high levels of activity provided me with abundant news to present to those audiences
4 MONITOR Discovery sur-
vey, Seismic line, Sedimentary searching, Iluka test, Beach seeks Basin gas, Mineral opportunities, Gold convention, Kingsgate buys into Goldstar, Mine rescue win, Explore Victoria
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Lakes Oil moves on shore Town gas grows Pecten high wins at Casino Ballarat mine on target Water recycling benchmark Gold Fields Australasia explores Central Victoria Bass Strait oil start Basker field set for production test Petroleum exploration booming Stellar looks under cover Working together Purus hunts Coal Seam Gas Victoria’s Core Logging Symposium Gekko's award entrepreneurs Hazelwood agreement to extend mine life
28 REVIEW What's happening with mineral applications and licences
29 GO TO Your guide to
Lakes Oil continues its major Victorian exploration program More Victorian towns will benefit from the Government’s Natural Gas Extension Program New understanding of Otway’s geology yields new gas reserves Ballarat Goldfields reports that its mine development is progressing on schedule
Minerals and Petroleum Business Centre contacts and resources sector websites
Fosterville has created a state-of-the-art recycled water supply
OUR COVER
Gold Fields’ Geoff Turner tells Discovery about their successful Victorian exploration program
Wombat 3 well at night.
Flare from the Lakes Oil, See story page 06
The Basker and Manta fields’ unique infrastructure ready to go
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Sound data is helping our petroleum explorers Explorer Stellar Resources is seeking new goldfields north of Bendigo
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The DPI team working with industry ensures OH&S New gas reserves in the onshore Otway Basin are being explored Geologists share knowledge on their use and management of drill core Gekko’s owners win top business recognition ������������������������������������������������������������������
Agreement to secure Victoria’s energy supply while reducing greenhouse emissions
OCTOBER 2005 01
monitor Discovery readers like what we do
Discovery magazine, now in its ninth year of production and publishing its 35th edition, is a vastly different publication to the early issues. Now, with a booming Victorian resources sector, there is barely space between the covers to fit in the latest developments in the oil and gas sector, new gold exploration activities, coal mine developments, exploration and development of mineral sands operations and the many other activities that make up the state’s resources industry. Recently the publisher of Discovery, the Victorian Department of Primary Industries, asked readers to comment on the magazine ��������� to ensure that it is effectively spreading the word that Victoria is a great place to invest in the resources sector. Thank you to those who responded to the survey. There was a good response and the feedback you provided indicated strong support for the publication. Discovery is DPI’s principle means of communicating to those in the earth resources industry in Australia and abroad. �������������������������������
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More information Nathan Cox Communication Adviser Department of Primary Industries 1 Spring Street, Victoria 3001 Ph: 03 9658 4079 Fax: 03 9658 4006 More information Peter O’Shea Manager Minerals Geoscience GeoScience Victoria Ph: (03) 96584525 Email: Peter. O’
[email protected]. gov.au
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Survey results
The survey found that Discovery is an unusually wellrecognised and valued publication. Of those surveyed, 94 per cent said they were aware of Discovery magazine and the majority rated it as very good (43 per cent) or good (46 per cent). Discovery is well-regarded as a credible source of information, with 87 per cent of readers rating it as very good or good in this respect. Discovery is also seen as a professional industry publication, 80 per cent rating it very good or good. A whopping 88 per cent of Discovery readers would recommend the magazine to a friend. When presented with covers of the last four editions of Discovery, between 22 per cent and 27 per cent of respondents said that they read each of the last four issues thoroughly. This was followed by between 56 per cent and 65 per cent who looked through each issue and read the articles that interested them. Significant industry developments (93 per cent), general industry news (91 per cent) and new geoscience data (76 per cent) are what readers find either very interesting or quite interesting about Discovery.
Seismic line through the goldfields
A major reflection seismic profile will be acquired through the central Victorian goldfields early in 2006. The roughly east-west profile will run from north of Stawell to northeast of Bendigo over a distance of approximately 190 kilometres and will provide valuable new information on the nature of the crust in the Stawell, Bendigo and Melbourne structural zones. The seismic data will be collected along unmade roads using Australian National Seismic Imaging Resource (ANSIR) truck mounted vibroseis equipment.
02 DISCOVERY
The project will provide critical data for a research-driven, 3D model of central Victoria which is being constructed as part of the predictive mineral discovery Cooperative Research Centre (pmd*CRC) Tasmanides T5 project. These projects will give new insights on the controls to gold mineralisation beneath the surface and act as a catalyst for new collaborative research and exploration investment to the State. The seismic survey is being funded by the Department of Primary Industries, the Department of Innovation, Industry and Regional Development, Geoscience Australia, the predictive mineral discovery Cooperative Research Centre (pmd*CRC) and industry partners Leviathan Resources, Goldfields Australasia and Ballarat Goldfields. The profile is being project managed by the pmd*CRC and preliminary results are expected to be available in late 2006.
Sedimentary seeks Victorian gold
Gold miner and explorer, Sedimentary Holdings Ltd is planning a new exploration program over the St Arnaud goldfield in north west Victoria after securing an option agreement for $500,000 with private operators in the field. The agreement gives Sedimentary an option to purchase the tenements outright in the event that a mining lease is granted to Sedimentary within the area covered by the exploration tenement, EL4363, presently under application. Sedimentary plans to work with the applicant to complete the granting of the Exploration Lease area. Gold was first found at St Arnaud in 1855 and the field was in continuous production until 1916 when, like Ballarat, the mines closed during World War 1. In that time over 12 tonnes of gold were produced from the underground mines at a recovered gold grade of over 15 grams per tonne. The Lord Nelson mine was the main producer with a recorded production of 322,401 ounces to a depth of 786 metres over a strike length of about 200 metres. Mining widths were recorded up to 7 metres and multiple lodes
mining and petroleum news briefs were mined. High water inflows and sulphidic ores are reported to have affected the development of other mines. Records indicate only six exploration holes were drilled below a depth of 200 metres with most previous exploration testing for shallow open pit potential of the field to the north of the St Arnaud townsite. Following the granting of the tenement, Sedimentary plans to drill test for high-grade shoots of ore beneath and along strike from the previous workings.
lluka’s KWR test pit a major success
Tests at Iluka Resources Ltd’s KWR mineral sands project near Ouyen in north western Victoria have been described as a “major success” by the company. Iluka excavated a trial pit at the KWR project in June to extract a large scale bulk sample and test future mining methods. Iluka company spokesman, Geoff Wedgewood, said the results had been an outstanding success with the company’s preferred ‘dry mining’ technique trialled with no problems. The Kulwin, Woornack and Rownack (KWR) deposits together with the Euston project in the New South Wales sector of the Murray Basin, are likely to form an additional source of mineral sands to feed the mineral separation plant currently under construction at Hamilton in the state’s west. Iluka said in a recent statement to the Australian Stock Exchange that, “The most significant achievement during [the June quarter] was the completion of a large-scale test mining pit at the Kulwin deposit. The trial showed that mineral sands deposits located below the water table could be de-watered and dry mined using conventional earth moving equipment.” Almost 70 per cent of the KWR resources and 40 per cent of the Euston resources lie below the water table but Iluka Resources prefers the dry mining technique for its lower costs and easier rehabilitation processes. The company said that development of the KWR and Euston projects would enable the two projects to be combined as a single Northern Murray Basin project. “It is also likely to result in a significantly lower level of capital investment, compared with the use of a dredge to access the deposits below the water table,” Wedgewood said. Iluka aims to start operations in the Northern Murray Basin in the second half of 2007, subject to the completion of the feasibility process and regulatory approvals. At the $270 million Douglas project, construction of the mine is complete with heavy minerals being produced and stockpiled on site. The mineral concentrate will be stockpiled until the mineral separation plant at Hamilton is completed early next year.
Beach seeks new Otway Basin gas
Successful Otway Basin oil and gas explorer, Beach Petroleum Ltd has become operator of petroleum exploration permit, PEP 160, adjacent to the South Australia-Victorian border, after acquiring a 50 per cent interest in the block. Beach will contribute to the costs of drilling the Lindsay 1 gas exploration well in the permit early next year. The farm-in deal leaves Santos Ltd with 30 per cent of the block and Origin Energy with the remaining 20 per cent. The well will test the gas potential of the Pretty Hill Sandstone target formation in a prospect 30 kilometres
southeast of Penola. “Any discovery in the tenement has potential to be commercialised through either the nearby SEA Gas pipeline to Adelaide or the Katnook gas gathering facility just over the border near Penola,” said Beach Petroleum Managing Director, Reg Nelson. Beach is already active in western Victoria, currently drilling for gas in PEP 154 near Warrnambool, where it has produced gas in recent years. The company also has a 17 per cent interest in the offshore VIC/P46 licence abutting the coast directly south of PEP 160 and close to Portland. This joint venture is investigating several large structures that have already been identified in the near-shore portion of the permit within 25 km of the coast. A 3D seismic survey is being considered in VIC/P46 early next year, with a tentative date of first offshore drilling for gas by late 2006 or early 2007. In the Gippsland Basin, Beach Petroleum and partner Anzon Australia are planning to start oil production from the Basker and Manta fields using a floating production storage and offloading vessel (see p16).
Victorian mineral opportunities highlighted
Victoria’s outstanding minerals potential was highlighted recently at two separate conferences held by the Minerals Council of Australia (Victorian Division). The annual Victorian Exploration Workshop, held in Ballarat in July, reviewed several greenfield and advanced exploration projects along with various research initiatives. Strong support was provided to the seismic and 3D modelling projects of GeoScience Victoria and the Predictive Minerals Co-operative research Centre (pmd*CRC) as well as the proposed CSIRO “Minerals Down Under” research project. The long term benefits to future exploration from the SEEGrid project for interoperability of pre-competitive geoscience data were also discussed. The annual environment and communities seminar, “Sustainable Communities – Sustainable Mines” was also held at Churchill in the Latrobe Valley in September. Industry and government speakers discussed community, environment and planning issues followed by a tour of the Loy Yang A power station and the recently completed Morwell River diversion at TRUenergy’s Yallourn brown coal mine.
More information
Robert Devereux Managing Director Sedimentary Holdings Level 13, 190 Queen Street Melbourne VIC 3000 Ph: (03) 8622 1400 Fax: (03) 9670 7544 admin@sedimentary. com.au www.sedimentary. com.au More information Geoff Wedgewood Investor Relations Manager Iluka Resources Ltd Ph: (08) 9360-4700 M: 0409 997256 More information Reg Nelson Managing Director Beach Petroleum Limited Ph: (08) 8338 2833
DPI goes for gold at Convention
The Department of Primary Industries (DPI) will be a Gold Sponsor of the inaugural Australian Earth Sciences Convention (AESC) 2006, in Melbourne next year. The event, to be held between July 2 and July 6 2006, will follow DPI’s 18th Victorian Initiative for Minerals and Petroleum (VIMP) data release which provides world class geological data that encourages and promotes exploration in Victoria. AESC2006 is expected to attract over 1000 local, national and international technical experts and decision-makers from exploration, mining, government and academia to Melbourne, Victoria. The Convention is a merger of two events, the Geological Society of Australia’s 18th Australian Geological Convention and the Australian Society of Exploration Geophysicists’ 18th Conference and Exhibition. By combining these two events,
More information Information on DPI’s involvement contact: Paul. A.McDonald@dpi. vic.gov.au Or for general information on the AESC2006 contact: earth2006@meeting planners.com.au or visit www.earth2006. org.au
OCTOBER 2005 03
mining and petroleum news briefs the AESC2006 is already being considered as Australia’s premier earth sciences exposition. The convention theme of “Resourcing Our Future” supports DPI’s mission of “promoting the sustainable development of primary industries for the benefit of all Victorians”. AESC2006 will promote and advance the knowledge of our earth by: ■ Providing a forum for industry, service providers and government to market to a wide range of companies, organisations and individuals in geosciences ■ Facilitating interaction between scientists and practitioners, to foster multi-disciplinary approaches to resolving problems of interest to earth scientists ■ Enabling academic and professional geoscientists to promote and advance their understanding of topical issues in their fields. DPI intends to showcase Victoria through technical presentations by DPI staff, involvement in workshops and fieldtrips, and exhibition booths where staff will be available for discussion and information.
Kingsgate buys into Goldstar
Above: Underground exploration at Walhalla
More information Chris Fraser, Executive Director, Victorian Division Minerals Council of Australia Ph: (03) 96291851 M: 0413 833 229
Gold miner, Kingsgate Consolidated Ltd, has taken up a 19.99 per cent stake in Victorian gold explorer, Goldstar Resources NL, as part of an underwriting deal for a share issue by Goldstar to raise $4.77 million. Kingsgate was a sub-underwriter to the share issue, made at 15 cents a share. Goldstar will use the funds to complete additional exploration and a scoping study at the old Walhalla goldfield in eastern Victoria. When announcing the acquisition the Kingsgate board said that they believed: “this is an ideal opportunity to invest in a highly prospective area outside Thailand and (we) are looking forward to exploration successes in the near future.” Kingsgate’s principal interest is in the producing Chatree gold mine in Thailand. Kingsgate is now the largest shareholder in Goldstar, a move Goldstar Managing Director Andrew King described as one which will give the company, “a long term, supportive shareholder,” and one which will provide, “additional commercial and technical strength for the company’s gold development strategy and further recognition of the potential of the Walhalla project to underpin a substantial gold mining business.” Other participants in the share placement included a group consisting mainly of sophisticated and professional investors including a high-net worth investor based in Sri Lanka, a strategic group of London investors, merchant bank RMB Resources Limited via its Telluride Investment Trust and Melbourne-based Cygnet Capital Pty Ltd. The rights issue was fully underwritten by Sydney-based stockbroking firm, Southern Cross Equities Ltd. Goldstar has also recently announced visible gold in drill holes from the Eureka prospect with significant intercepts including 0.55m @ 92.3g/t Au and 0.35m @ 44.2g/t Au These results augment previous intercepts of up to 143g/ t and 285g/t Au previously reported from the prospect. The company also intends to complete an expanded 2000 metre diamond drilling program at Eureka with the aim of establishing a resource estimate.
04 DISCOVERY
STAWELL TEAM’S MINE RESCUE WIN
Leviathan Resources’ mine rescue team from the Stawell mine has won the Victorian Mines’ Rescue Competition for 2005. The Stawell team defeated eight teams from five states. A team from Newmont Mining’s Jundee operation in Western Australia was second with Barrick Gold’s composite team from WA taking out third place. The competition, hosted by the Minerals Council of Australia (Victorian Division), was held in Bendigo in early August. The chairman of the MCA’s national safety and health committee, Robert Logan, said the competition gave mining industry people the chance to hone their rescue skills in practical, reallife situations which are critical emergency response priorities for the industry. “The competition really challenges the skills and teamwork of participants in fire fighting, search and rescue, first aid, rope rescue and general emergency response in underground mine situations. All of the participants are leaders in striving for a strong safety culture, that is clearly evident by their dedication, enthusiasm and hard work,” he said. This year’s competition marked the absence of one team member from BHP Billiton’s Olympic Dam team who was killed in a mining accident just a few weeks before the competitions, reminding everyone that underground mining is a dangerous occupation. The captain of the Olympic Dam mine rescue team, Cathy Louseberg, recognised their team member in a presentation during the competition.
In addition to being awarded the overall competition winner, Victoria’s Stawell gold mine team members also won individual event awards for search and rescue, rope rescue, fire fighting, breathing apparatus practical and team skills. Stawell team captain, Margot Healy, was awarded best captain of the competition. Other award winners included the local Bendigo team, Oscar 1, which won the Spence Heard Trophy for teamwork. The Barrick team won the first aid exercise, the Jundee team won the theory exercise, and the Deanmac team won the team safety award.
mining and petroleum news briefs EXPLORE VICTORIA'S POTENTIAL Victoria’s gold and minerals exploration boom is starting to reap significant rewards with one major new gold mine already in production and several more currently being developed. Mineral sands stand to become another important new opportunity for Victoria while coal, petroleum and coal seam methane exploration are all at near record levels. But Victoria still hosts vast potential for new mineral wealth. Despite the intensity of the gold rushes of the 1850’s and the current exploration boom, Victoria remains grossly under-explored. The Dargo goldfield is a classic case where high grade gold production quickly dwindled when the easily discovered outcropping gold resources were exploited. This area is presently vacant offering exploration companies the opportunity to apply for some well-credentialed acreage with strong mineral potential. Applications for exploration licenses in the Dargo area, as with any vacant ground, follow the standard exploration license application process.
It is now clear that the Dargo goldfield is part of a major gold corridor about 30 km wide between the Wonnangatta fault zone and the Kancoona-Kiewa shear zone. This goldfield is the same age and tectonic setting as the nearby Cassilis gold field which has produced in excess of 1 million ounces of gold. The area has not been the subject of modern exploration with very limited geochemistry, drill holes etc. Exploration License applications can be downloaded from www.dpi.vic.gov.au/minpet - Licenses and Approvals - Mineral Exploration & Mining Requirements.
Figure 2: Dargo Goldfield in yellow. Figure area approx 20km x 20km
AT A GLANCE
Area: Dargo Goldfield (Figures 1 & 2), East Gippsland Commodity: Gold Host rock: Early Ordovician Pinnak Sandstone, Early Devonian tonalite Mineralisation: Orogenic gold Historic production: 4,364 t @ 23 g/t (average) for 3,422 ounces of gold. Recent Exploration: Limited drilling in 1992 Companies in area: Condor Mining Corporation Ltd, Gipps Ausx Pty Ltd, Denby Vale Pty Ltd, Synergy Metals Ltd, Leeuwin Media Pty Ltd Mineral Potential: Recent GeoScience Victoria (GSV) geological mapping projects have completely revised the geological understanding of the Dargo area.
Figure 1: Location of Dargo
More information Research on-line with GeoVic www.dpi.vic.gov. au/minpet/geovic Email: Paul. A.McDonald@dpi. vic.gov.au Ph (03) 9658 4531
VISIT DPI’S GEOSCIENCE VICTORIA BOOTH AT NEWGENGOLD 2005, PERTH, 28-29 NOVEMBER OCTOBER 2005 05
Lakes Oil Lakes Oil continues its major Victorian exploration program moves on V shore ictoria’s most active and oldest petroleum explorer, Lakes Oil NL, could add a significant new chapter to the understanding of eastern Victoria’s onshore oil and gas potential with two new wells planned in September and October. Chairman, Rob Annells said the stratigraphic core hole was drilled, “to test the hypothesis that oil, which is known to be spilling from offshore oil and gas fields, has migrated to the Marlo area.” He said the site of the well was chosen after, “careful analysis of the “Falcon®” gravitygradiometer and magnetic survey,” which was conducted over a year ago. Mr Annells said that, “Any sign of hydrocarbons in the well would be extremely significant in upgrading our onshore and offshore interests.” Patrobus 1 will be followed by the Banjo 1 well which has similar geological objectives. Gippsland Offshore Petroleum Ltd has chosen to join Lakes Oil in the Patrobus and Banjo wells. Gippsland Offshore Petroleum farmed in to the Marlo Block in PEP 155 in a deal which commits it to pay up to $400,000 to join the two well program to earn a 51 per cent interest in the block. Equity interests in the permit after the deal is completed will be: Lakes Oil 46 per cent, Gippsland Offshore Petroleum Ltd 51 per cent and Stellar Resources 3 per cent.
More information Rob Annells Chairman Lakes Oil NL Level 11 500 Collins Street Melbourne Vic. 3000 Ph: (03) 9629 1566
06 DISCOVERY
HIGH SCALE SEARCH In the first half of the year, Lakes Oil conducted its most intensive exploration program in Victoria. The major projects involved the hydraulic fracturing program in the Wombat and Trifon tight gas fields in Gippsland. In August, Lakes also participated in the unsuccessful drilling of the Bellarine 1 wildcat well near Geelong. The Wombat 1 well in permit area PEP 157 in Gippsland provided the most interest in the busy Lakes program. Lakes has stated that the Wombat wildcat gas exploration well discovered significant volumes of gas within a ‘tight’ underground formation, meaning the reservoir structure needed artificial fracturing to allow the gas to flow. Mr Annells told shareholders in the company’s June quarter report that being a ‘conventionally’ engineered well, many of the prime gas bearing formations could not be tested due to damage caused to the formation during drilling. But he said that, “We have learned a considerable amount from this well, including how to produce gas from the ‘tight’ Strzelecki reservoir, present over a large area of our lease. “A number of potential gas producing zones occur below the zone currently being produced, however as the well was not engineered as a ‘Tight Gas’ well, it is not planned to test them, mainly due to cost. Rather we will drill a second well designed to fully evaluate all of the potential zones at a later stage,” Mr Annells said.
Lakes Oil conducted a fracture program on the Wombat well but only managed a steady gas flow of around 30,000 cubic feet a day, down from an initial flow of four to five million cubic feet per day when the well was first reopened. “To date this has been our most successful well. As with Wombat 1, this well was engineered conventionally, causing a great deal of inflexibility in testing the multiple potential gas producing zones present,” Mr Annells told shareholders, although the well was hydraulically fractured between 1,474 - 1,491 metres. An eight day test was carried out resulting in a sustainable gas flow of 630,000 cubic feet per day and the well has been suspended as a future producing well. Wombat 2 also contained higher zones which still have not been fractured or tested, mainly due to the cost of the operation. Mr Annells said, “As with Wombat 1, we intend to examine them in the future, with a new well to be engineered allowing more flexibility in testing.” Fracturing in the Wombat 3 well produced small gas flows and a small oil flow, although the significance of the oil is yet to be fully determined. Continuing its first half drilling program, Lakes Oil drilled the Trifon 2 appraisal well which was also hydraulically fractured between 1,830 and 1,860 metres and also at 1,590 metres. Mr Annells said the flow rates following the fractures were disappointing. ENGINEERING CHALLENGES AHEAD The company believes it has now discovered significant volumes of gas in place in its onshore drilling program but the tight nature of the reservoir sections present major engineering hurdles to enable commercial quantities of gas to be extracted from the formations. “Our strategy with Trifon 2 had been to fracture the well from the bottom up. We have now fractured five zones in this well. The best result to date has been from the lowest zone, which has indicated to us that the existing natural fractures are contributing to this ‘play’,” Mr Annells said. But he added that, “Since each of these hydraulic fractures cost $250,000 to perform, we have been reluctant to carry out too many at one time. There are still several higher zones to be potentially fractured in this well, including one which the electric logs have indicated is the most promising.” At the North Seaspray 3 well, located within the Trifon gas field area, a hydraulic fracture test was also conducted. “The well location, only 20 metres from the [natural gas] pipeline easement could mean even a small flow may be commercial, should we later commercialise the Trifon field,” Mr Annells told shareholders.
Town gas grows More Victorian towns will benefit from the Government’s Natural Gas Extension Program
F
ive South Gippsland towns will be connected to Victoria’s growing natural gas reticulation system in a $50 million project announced by gas provider, Multinet Gas. Inverloch, Korumburra, Lang Lang, Leongatha and Wonthaggi will be connected to the natural gas network over a three-year period to 2010 with physical works starting in early 2007. Natural gas from the soon to be commissioned BassGas project in Bass Strait, which is developing the Yolla field, will provide the gas to be delivered to the towns. Multinet plans to install 20 kilometres of high-pressure gas transmission pipeline, 57 kilometres of supply mains and over 182 kilometres of distributions mains in the latest project. In the process around 10,000 dwellings and businesses in South Gippsland will gain access to natural gas in one of the largest and most complex projects yet funded under the Victorian Government’s Natural Gas Extension Program. GOVERNMENT PROGRAM ON TARGET So far 34 Victorian towns have been promised connections to the natural gas system under the Government’s $70 million Natural Gas Extension Program. The Minister for State and Regional Development, John Brumby, said, “This $50 million (Multinet) investment has significant strategic value for South Gippsland and will utilise gas from the soon to be commissioned BassGas Processing Plant established to commercialise gas from Bass Strait. “It’s great news for South Gippsland and great news for the three Councils in the region – Cardinia Shire, South Gippsland Shire and Bass Coast Shire – who have been trying to get natural gas to the region for many years.” Mr Brumby said local government would continue to play an important role in the planning and development of the project. “The Government is confident that all three Councils and the five local communities will demonstrate their appreciation for this massive investment in their region by supporting Multinet Gas to successfully deliver the project,” Mr Brumby said. DELIVERING BENEFITS The Minister for Energy Industries and Resources, Theo Theophanous said the program would lower energy costs for residents and businesses and drive investment and jobs in the region. “Average households could save between $600 and $1200 a year by converting from LPG. A medium business can save up to $30,000 a year. For some big businesses that
Average households could save between $600 and $1200 a year by converting from LPG annual saving can be hundreds of thousands of dollars,” Mr Theophanous said. Mr Brumby said the five South Gippsland towns were the final towns to be connected under the Natural Gas Extension Program – the biggest gas rollout in provincial Victoria since the 1970s. Multinet Gas is also delivering natural gas to nine towns in the Yarra Ranges under the Natural Gas Extension Program. “Construction works now under way in the Yarra Ranges are significantly ahead of schedule,” Mr Theophanous said. “The Government is confident that Multinet will deliver this project with the same professionalism and urgency as it has shown in the Yarra Ranges.” Other towns included in the State’s Program are Bairnsdale, Paynesville, Camperdown, Port Fairy, Maiden Gully, Barwon Heads, Creswick, Hurstbridge, seven towns in the Macedon Ranges and five towns in the Mornington Peninsula. Victorian gas will also soon be sent to South Australia to meet urgently required supplies. A new 45 km pipeline will link South East Pipeline system in South Australia with the $500m SEA Gas pipeline which currently connects Victoria’s Otway Basin gas fields to Adelaide. Mt Gambier currently gets its gas from two small South Australian fields, Katnook and Ladbroke Grove, where reserves are declining fast. The new gas pipeline link will supply Victorian gas to the Ladbroke Grove gas turbine power station, and the South East Pipeline gas supply network.
The pipeline was laid at rates of up to four kilometres a day
OCTOBER 2005 07
high casino
Pecten
wins at
New understanding of Otway’s geology yields new gas reserves
Main: Ocean Patriot rig being towed en route to drill the Henry 1 exploration well, offshore Otway Basin, Victoria 08 DISCOVERY
Santos has used its new understanding of the local geology in a highly successful drilling campaign
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xploration in Victoria’s offshore Otway Basin in recent years has produced a petroleum bonanza for the state. A string of significant new gas discoveries has added a new layer of security to Victoria’s gas supply encouraging the development of new, high pressure gas pipelines to carry gas from Victoria to Tasmania, New South Wales and South Australia. This has positioned Victoria as a crucial hub in the natural gas supply and distribution system across the market. Along with Bass Strait, where large gas reserves remain to be produced and delivered to market, the Otway Basin has become Eastern Australia’s newest source of large volumes of gas. With each new well greater understanding of the region’s oil and gas potential grows and success rates in wildcat drilling are increasing rapidly. That reduces the cost to exploration companies and enhances Victoria’s reputation as a key address in the petroleum exploration industry. OTWAY ATTRACTS INVESTMENT Recent success in the Otway Basin region has seen offshore gas field developments worth more than $2 billion being completed or commenced in the past three years. BHP Billiton has brought the Minerva field into production while Santos Ltd, Australia Worldwide Exploration Ltd and Mitsui & Co are spending more than $200 million to develop the Casino gas field with first gas production expected in the first quarter of 2006. Further south Origin Energy and AWE are developing the $500 million BassGas project. The biggest Otway Basin development off the western Victorian coast however is the Woodside Petroleum operated Geographe and Thylacine project costing more than $1.1 billion. Together these two fields form the largest offshore development in Victoria since the heyday in Bass Strait in the 1970’s. While recent exploration in the Otway Basin has been highly
successful a new understanding of the area's complex geology by operator, Santos Ltd, could lead to even more discoveries. THE PECTEN HIGH Santos Ltd’s Casino discovery and two adjacent commercial gas field discoveries, Martha and Henry, may have dramatically changed the petroleum industry’s understanding of the prospectivity of the Otway Basin. Since discovering the Casino field Santos has drilled two follow up wells, Martha and Henry and each has struck commercial volumes of natural gas which are certain to form part of a wider gas development program based around the Casino gas field production facilities. Santos drilled the original Casino discovery well as a follow up to a well drilled by the Shell Company in 1967 called Pecten 1 which was drilled seeking oil. Named after the Shell Company’s distinctive shell corporate logo, known as a pecten, the well recovered non-commercial quantities of gas and water from a poor quality reservoir sand in the Waarre Formation. This is a structure which has become the primary target of all Otway Basin drilling, both onshore and offshore. The gas shows encountered drilling Pecten 1 and the porosity and permeability of the reservoir were poor when compared with those of more recent wells drilled down-dip on the flanks of the structure that attracted Shell geologists almost 40 years ago. Santos has now dubbed that structure the ‘Pecten High’ and has used its new understanding of the local geology in a highly successful drilling campaign which may have only just begun. Santos Chief Executive, John Ellice-Flint, told Discovery that the term Pecten High has been coined, “to describe a geological structure it has discovered within the exploration permit VIC/ P/44 in the offshore Otway Basin.” The original Pecten 1 well was drilled on the highest point of the geological structure but Santos has applied new thinking to
OCTOBER 2005 09
Top left: Ocean Patriot rig being towed en route to drill the Henry 1 exploration well, offshore Otway Basin, Victoria Top right: Casino 4 well test, offshore Otway Basin, Victoria Bottom left: Casino 4 well test, offshore Otway Basin, Victoria Bottom right: Loading of subsea trees, Casino gas development, offshore Otway Basin, Victoria
Right: Ron King and Mike Andronov, Completions Engineers, inspecting Casino 4 well test, offshore Otway Basin, Victoria the original well and decided to drill lower down on the target seeking better quality reservoir sands. That approach has paid big dividends with three successes in three wells. NEW UNDERSTANDING GUIDES DRILLING In geological terms the Pecten High is a complex series of tilted half-grabens (ancient depressions), formed as a result of an ancient geological event when giant valleys were created by continental rifting. In fact the entire Otway Basin was formed during the late Jurassic-Palaeocene period by rifting of the Australian and Antarctic continental plates. However in parts of the Otway Basin the rifting process was interrupted and some areas were tilted or inverted, helping to create the feature now known as the Pecten High and a number of other, similar features. Explorers are now wondering whether the characteristics which have created the natural gas fields around the Pecten High change the prospectivity of the Otway Basin generally. In other words, has the tricky nature of the Otway Basin finally been unlocked by the Casino, Martha and Henry discoveries. Mr Ellice-Flint told Discovery that, “While the recent discoveries augur well for the prospectivity of the Otway Basin they by no means guarantee success.” “Certainly we now understand this previously recognised play better. We can’t say we have “unlocked” the secret to the offshore Otway Basin as there are many other plays in the region,” he said. But he added that, “What we can say is that we understand the Pecten High to such an extent that we can target commercial quantities of gas in this particular play.” However the results at Casino, Martha and more recently Henry have dramatically lifted the profile of the Otway Basin. Mr Ellice-Flint said, “Certainly the offshore Otway Basin is growing in importance as a hydrocarbon province since these discoveries. Largely because Pecten 1 was a dry well, the Otway Basin has played second fiddle to other Australian hydrocarbon basins over the last 40 years.”
More information Kathryn Mitchell, Public Affairs Manager Santos Ltd Ph: (08) 8218 5260 M: 0407 979 982
DEVELOPING THE OTWAY BASIN The Casino field is located 30 kilometres offshore from Port Campbell, in western Victoria. It was discovered by Santos in 2002 by two wells, Casino 1 and 2, and is estimated to contain 283 petajoules (PJ) of recoverable gas reserves. The entire gas reserves from the Casino field have been sold under contract to TRUenergy which will process the gas at its Iona processing plant near Port Campbell. The gas sales deal is worth more than $1.7 billion to the joint venture producers, made up of Santos 50 per cent, AWE 25 per cent and Mitsui 25 per cent, for gas and associated condensate, subject to future exploration success. The $200 million Casino field development project is over 60 per cent complete and remains on schedule for start-up in the first quarter of 2006. Martha 1 was discovered in November 2004. It is also located
10 DISCOVERY
in VIC/P44, 18 kilometres north of the Casino gas field and 26 kilometres west of Port Campbell. Henry 1, discovered in August 2005, is 8.5 kilometres northwest of the Casino gas field in the same exploration permit. The Henry field can easily be commercialised due to Santos’ preexisting option to deliver gas into the TRUenergy contract. Mr Ellice-Flint said, “The Casino discovery and the innovative long-term TXU [now TRUenergy] sales agreement are rewarding developments for the producers’ ongoing commitment to build on our expanding energy assets in south-eastern Australia.” The Casino gas field is the first commercial development within VIC/P44. Raw gas from Casino will be piped to the coast through a subsea pipeline that will come ashore under the coastal dunes and join a pipeline to TRUenergy’s Iona processing and underground gas storage facilities. Gas will then be supplied to industrial, commercial and domestic customers in Victoria and South Australia and be used in electricity generation. Planned annual production from the Casino gas project is anticipated to plateau at 35 PJ a year. Offshore field construction activities started in the first quarter of 2005. Gas from Casino will feed the Torrens Island power station in Adelaide. Victoria’s Energy Industries and Resources Minister, Theo Theophanous, said the Casino project would, “provide a massive investment and jobs boost to regional Victoria.” Mr Theophanous said, “This project has the potential to add hundreds of millions of dollars to the Victorian economy. “With gas demand expected to grow by around 30 per cent up to 2015 in south-east Australia, the Casino project will provide an important new source of supply necessary to meet growing demand.” OTHER EXPLORERS BENEFIT Other Otway Basin explorers are also taking heart from Santos’ new knowledge of the Pecten High. Essential Petroleum, which holds extensive onshore and offshore exploration acreage in the Otway Basin views the discoveries at Casino, Martha and Henry as a major step forward in understanding the basin. Essential’s Managing Director John Remfry said that the Henry 1 well, in particular was good news for the Otway Basin. “Henry 1 encountered good quality sands in the Waarre Formation and had a pre-drill resource estimate of more than 100 petajoules of recoverable gas,” Mr Remfry said. “The discovery at Henry 1 means there are now three gas fields on the flanks of the Pecten High.” Mr Remfry said that the, “presence of good quality sandstones is critical in determining the chance of drilling success. Knowing the distribution of reservoir quality sand during the deposition of the Waarre Formation is a key to selecting a drilling location. “Henry 1 and the Casino wells have shown that the Waarre sands are better developed in positions that flank the structural highs,” Mr Remfry said. That new understanding has improved the prospects for discoveries on acreage held by Essential, Mr Remfry believes. “The results of Henry 1 support the concept behind Essential Petroleum’s prospects in VIC/P46. We …. believe the Waarre Formation sands, flanking the large structures in VIC/P46 have an excellent chance of containing commercial hydrocarbons in good quality reservoirs,” Mr Remfry said. Mr Remfry said, “Essential Petroleum believes that reservoir quality is likely to improve downdip, as shown to be the case in Casino.”
Ballarat mine on target Ballarat Goldfields reports that its mine development is progressing on schedule
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evelopment of new underground gold mining operations at Ballarat is on schedule for the first gold to be poured before Christmas 2005 as work both on and below the surface moves rapidly ahead. Construction of the processing plant is also on schedule with commissioning planned during the December quarter. Ballarat Goldfields Managing Director, Richard Lauffman, said that in late September the site earthworks for the plant were 80 per cent complete while the foundations for the crushing and gravity sections of the plant were completed. Mr Lauffman said construction of the gravity module was nearing completion and was being readied for site erection while the components of the crushing plant had been delivered to Ballarat. UNDERGROUND PROGRESS In the underground part of the project progress has been swift. Mr Lauffman said, “The underground development at Ballarat East is progressing on three fronts as the Sulieman decline advances to the north, initially as a drilling platform, the Woah Hawp decline advances to the south for access to mineralisation and the vent drive advances towards the North Prince Extended ventilation shaft. “Ballarat Goldfields has now accessed the first gold resource and it is being developed on the 160 and 189 levels. Definition drilling of this resource is continuing.” He added that procedures for traversing cross cutting faults had led to an improvement in development rates in these difficult underground areas and said that a second underground drilling jumbo had arrived on site to accelerate the underground development and access to the gold resource. The next phase of the underground development ramp-up phase will start after the completion of the ventilation shaft and connecting ventilation drive. The North Prince Extended ventilation shaft had reached 114 metres by late September, close to its final 127 metre design depth which was expected to be completed in October. The shaft is a milestone for the Ballarat goldfield. Shafts built before the First World War were timber lined and rectangular. The North Prince Extended is 6.1m diameter and fully lined with a 300mm thick concrete wall.
Above: Stages of development at the Ballarat mine Left: The mouth of the new ventilation shaft.
DRILLING VALIDATES MODEL Mr Lauffman said that exploration at Ballarat was focussed on definition drilling of the Ballarat East project and data analysis from the recently acquired Ballarat South leases. “The definition drilling at Ballarat East continues to validate Ballarat Goldfields geological model and the data from Ballarat South indicates that the gold mineralisation at Ballarat South is a direct extension of the Ballarat East lines. This provides strong encouragement to advance this project area,” Mr Lauffman said. The chief executive also noted the appointment of two crucial new executives to the company as it moves toward gold production. Wojciech Ozga was appointed general manager of operations at Ballarat Goldfields. “Most recently, Wojciech spent 2 years in Kazakhstan as director of the Kazakhstan operations for AIM listed Celtic Resources Holdings Plc, where he was responsible for development of the Suzdal underground mine and the processing facilities,” Mr Lauffman said. More information Before that he worked as general manager at Central Norseman and group manager mining projects at the Olympic Joel Forwood, Manager Dam mine in South Australia. Ballarat Goldfields has also appointed Nick Colalancia as Corporate and project manager, responsible for the Ballarat process plant Markets construction. Mr Lauffman said, “Nick, the principal of Rosetta Ballarat Goldfields NL Stone Pty Ltd, has a long career in all aspects of project Ph: (03) 5327 1111. construction and development, including 6 years in the oil and Website: www. gas industry and the last 16 years in the mining industry.” ballarat-goldfields. Mr Colalancia also worked recently at Olympic Dam. com.au
OCTOBER 2005 11
Fosterville has created a state-of-the-art recycled water supply
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ne of Australia’s biggest mining/industrial water recycling projects, just south of Bendigo, has been developed to provide process water for the Fosterville gold mine, one of Australia’s newest and biggest gold producers. Perseverance Corporation Ltd, owner of the mine and the Coliban Water authority in Bendigo have joined forces to recycle waste water from the Bendigo sewage treatment facility which would otherwise be lost. Up to five megalitres a day of waste water from the Bendigo treatment plant is being piped 22 kilometres to the new $100 million gold processing plant at the Fosterville mine. Drought conditions in the central Victorian region, extending for the last eight years, have elevated water conservation into one of the community’s highest profile issues. Perseverance studied several water supply options for its Fosterville mine but took a strongly proactive attitude to conserving local water supplies.
“The pipeline significantly decreases pressure on the Campaspe River” To ensure a constant supply of water to the multimillion dollar mining project, the company looked for environmentally sustainable options. Using waste water from the City of Bendigo provided the solution. A 22 kilometre pipeline and related infrastructure required to deliver approximately 2000 megalitres of recycled water to the mine each year was completed earlier this year. The $3.5 million recycled water project is now one of the largest mining/ industrial water re-use projects in Australia.
12 DISCOVERY
The first water was delivered in mid-May. Now the pipeline, which has a capacity of five megalitres a day, is running at capacity. ENVIRONMENTAL DESIGN The pipeline has been aligned to minimize impact on native vegetation and fauna habitat. In some areas the pipeline has been buried on the road reserve and through sensitive Box/ Ironbark forest areas and in other areas it is laid on the surface to minimize impact on native vegetation. The approval required that the pipeline be constructed in a manner that minimised soil disturbance, did not impede ground water flows, did not impact water quality, provided access for authorities, as well as passageways for native fauna and avoided other underground infrastructure. Before building the pipeline, Perseverance worked closely with regulatory authorities and adjacent property owners to ensure minimal disturbance and the best environmental outcomes. The company worked with and sought approval from Department of Sustainability and Environment (DSE), Parks Victoria, Department of Primary Industries (DPI), City of Greater Bendigo and Coliban Water. A leak detection and automatic cut-off system has been installed to ensure safety along the 22 kilometre route. On reaching the Fosterville mine, the water is transferred to storage tanks. After passing through the mineral processing plant, the water is then pumped to the residue dam where it is drawn off and again recycled through the processing plant. CONSERVING A VITAL RESOURCE The pipeline is an innovative project that significantly decreases
Water
recycling
benchmark
the pressure on the Campaspe River and demonstrates Perseverance’s commitment to water conservation. Coliban’s Epsom wastewater treatment plant has also undergone significant improvements in recent years to make it a state of the art inland treatment facility easily able to comply with strict discharge guidelines set by the Environment Protection Authority (EPA). The plant produces about 20 megalitres of waste water a day which is discharged into Bendigo Creek at Bendigo. Sludge from settling ponds at the facility is collected periodically and distributed locally, but Perseverance now plans to acquire sewage sludge for use in rehabilitation projects at the mine site. Coliban Water provides 130,000 retail, urban and rural water customers in 55 towns or service systems with water and wastewater services. Its service region covers 16,500 square kilometres of Central and Northern Victoria - extending from Cohuna and Echuca in the north, to Kyneton and Trentham in the south while the authority’s western boundary includes Boort, Wedderburn, Bealiba and Dunolly and the towns of Heathcote and Tooborac in the east. By utilising waste water from the Coliban Water Epsom sewage treatment works, Perseverance has eliminated the need to consume valuable drinking quality water from the local reservoirs and river system, a water supply system already under significant pressure from expanding rural populations and long term drought. REMOVING SULPHIDE SAFELY The Fosterville mine poured its first gold bar in April this year after a $100 million construction project to build Victoria’s newest gold mine. The mine aims to produce around 130,000
ounces of gold a year, a similar rate of production as the Stawell gold mine operated by Leviathan Resources at Stawell. The Fosterville mine has large water consumption due to its unique mineral processing technology. The sulphide nature of the ore requires special processing to separate the gold from the sulphide minerals, an outcome traditionally achieved by roasting the ore. But that process releases large volumes of sulphur into the atmosphere and is considered unsuitable to today’s more environmentally aware community. Instead, Perseverance has adopted a unique bacterial leaching process in which specially developed bacteria consume the sulphide minerals, allowing the gold to be easily separated from the ore. By consuming the sulphide minerals, the bacteria are essentially self-sustaining allowing gold to be extracted from the ore as a continuous process. The patented Biox process, originally developed in South Africa and in use in several mines in Australia, releases no harmful chemicals into either atmosphere or the ground. The Perseverance/Coliban Water venture to supply waste water to the Fosterville mine mirrors a project adopted at Hamilton by mineral sands company Iluka Resources for its mineral separation plant. Iluka and the Glenelg Region Water Authority have combined with the Victorian Government to build a $2 million treatment plant to process waste water from the Hamilton sewage treatment works. The treatment plant will supply Iluka’s mineral separation plant with 300 megalitres of Class A water a year. The use of that volume of drinking water would have caused a major problem for Glenelg region water supplies which is also suffering from years of drought related supply problems.
Far left: Coliban waste treatment plant Left and above: The pipeline minimises environmental impact
More information Sandra Burns Manager Community Relations Perseverance Corporation Ph: (03) 54399013
OCTOBER 2005 13
Australasia explores Central Victoria
Gold Fields’ Geoff Turner tells Discovery about their successful Victorian exploration program
T
he search for new gold deposits in central Victoria has never been more intense with new companies flocking to the region to join the search. The area of interest lies to the north of the known gold fields around Bendigo where Murray Basin sediments overlie much of the most prospective ground. Now the results are starting to flow with news that Gold Fields of South Africa subsidiary Gold Fields Australasia has struck Fosterville style mineralisation beneath up to 100 metres of Murray Basin cover. This is the first major success of recently increased exploration seeking gold deposits undercover. Gold Fields Australasia’s Victorian project manager, Geoff Turner, tells Discovery how their central Victorian exploration project is starting to reap rewards. “Gold Fields’ rationale for exploring in Victoria was based on two key premises,” says Geoff. “Firstly, the Ballarat-Bendigo corridor is one of the richest known gold belts in the world, and secondly, most world-class gold deposits that exist in this corridor in outcropping Ordovician have already been found.” “The covered extension of the Ballarat-Bendigo corridor, under Murray Basin sediments in a wide area to the north of Bendigo was an obvious target, made more interesting by the fact that this area had been only very lightly explored.” Geoff said, “Once compilation of prior exploration was complete, it was clear that most of the Gold Fields project area had no prior gold exploration history.” “Lockington, 60 kilometres north of Bendigo in a region noted for dairy farms and irrigation, is an unlikely target for gold exploration. Yet our work over the last two years, totalling $1.5 million, has resulted in the location of gold associated with arsenopyrite and pyrite within Ordovician sandstones and shales beneath up to 100 metres of Murray Basin cover.” The Central Victorian project was initiated in 2003 with the signing of joint venture agreements with Range River Gold Ltd and PacRim Energy Ltd on five exploration licences covering More information over 2000 square kilometres north of Bendigo, mostly under www.goldfields.co.za Murray Basin cover. At the same time, Gold Fields applied for an exploration licence over vacant ground at Lockington.
14 DISCOVERY
PRELIMINARY WORK “We contracted Exploration Management Services (EMS) to manage the Central Victorian Project in June 2003,” said Geoff. “The first task was to identify and exclude areas of deep cover that would currently be inefficient to explore. This was done using the drill database available in the GeoScience Victoria Bendigo GIS CD to produce a Digital Terrain Model (DTM) of the ‘depth to basement’ over the entire Bendigo 1:250 000 mapsheet.” Geoff said, “The DTM highlighted a number of interesting basement highs.” “Detailed geoscientific data, like the high quality geophysics data produced by the Victorian Initiative for Minerals and Petroleum (VIMP) program, which is freely available to Victorian explorers, is a distinct advantage in area selection and formulation of exploration programs,” Geoff acknowledges. “Interpretation of aeromagnetic and detailed gravity data in particular identified a number of structural features in the project area worthy of attention.” “The October 1999 “Tempest” survey of the Raywood area gave excellent resolution of basement structures and depth to basement over a small part of the project area.” FIELD OPERATIONS “Having spent considerable time selecting targets from the geophysics and basement DTM, the first step was to take soil samples from a large part of the project area west of the Campaspe River and northward to a point where cover depths were interpreted to exceed 100 metres.” “After some trial soil sampling along roads at 100 metre spacings, Bulk Cyanide Leach (BCL) for gold and silver and 50 gm AAS for arsenic and antimony among other pathfinders, were considered the most appropriate analytical methods for this environment,” Geoff reports. “Initial soil sampling was along east-west road verges, which provided a natural 1600 x 3200 metre grid, with samples taken at 400 metre along line spacing. Areas considered to have anomalous geochemistry were followed-up with 400 x 200 metre infill sampling.”
MORE WORK TO BE DONE Geoff told Discovery that, “The gold in bedrock anomaly at
“... most of the Gold Fields’ project area had no prior gold exploration history”
OCTOBER 2005 15
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COMMUNITY RELATIONS Geoff said that, “Gold Fields and EMS recognised very early that mineral exploration in central Victoria cannot proceed without the support of the local communities, so significant time was allocated to developing strong community relations.” “Most of this is done at a personal level, and landholders are kept appraised of developments and strategies throughout the exploration process.” “Landholders are consulted well in advance of drill programs, as drilling must work in with irrigation schedules”, explained Geoff. “And at the end of each program, landholders are given pertinent information on the location of potential aquifers and water quality”. “All drill sites are rehabilitated to the landholders’ satisfaction, and reseeding is undertaken if required. Drill sites are visited after rain to ensure that backfilling to the plugs is adequate.” Gold Fields Australasia Pty Ltd (GFA), a Perth based subsidiary of South African gold major Gold Fields Limited (GFL), is responsible for exploration and business development in the Asia-Pacific region. Gold Fields is listed on the Johannesburg, London and New York stock exchanges and in the financial year ended June 2005 produced over 4.2 million ounces of gold from operations in South Africa, Ghana and Australia.
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START AT LOCKINGTON Geoff said, “AirCore drilling commenced at Lockington in midJune 2004 with a 33 hole program. The target was an interpreted gravity structure with anomalous soil geochemistry support.” “Elevated gold values were intersected in the first hole and eight of the first 20 holes reported gold greater than 0.1 ppm over three metre sample intervals.” “Infill drilling in September and again in December 2004 successfully mapped out a 3.2 kilometre long gold anomaly in weathered bedrock, defined by maximum value in hole of >0.1g/t gold and >100 ppm arsenic.” “The depth to basement ranges from 40 metres in the south to 111 metres in the north and the nearest outcropping Ordovician rock is at Kamarooka, 25 kilometres to the south-west,” Geoff reports. “A four hole diamond drill program commenced in late April 2005, just 15 months after the first soil samples were collected. Three of the four holes intersected gold mineralisation associated with pyrite and arsenopyrite in an altered Ordovician turbidite sequence.” Geoff said, “The alteration minerals are sericite, siderite and chlorite; quartz veining is variable.” The bedrock results which have not been publicly released to date are considered insufficient to support underground mining, but provide sufficient encouragement to continue exploration for higher grades at the Lockington prospect, based on established geological models at other deposits within the belt.
Lockington is still open to the south and there are indications that parallel mineralised trends may exist.” “So the next phase of AirCore drilling is designed to fully define the Lockington gold anomaly and evaluate additional targets elsewhere in the project,” he said. “The mineralisation model that has been adopted at this stage of exploration is based on the Fosterville structural style.” Geoff told us that, “While the gold mineralisation at Lockington has many similarities to that at Fosterville, there are a few differences which are not unexpected.” “Diamond drilling re-commences late in 2005 with the primary aim to determine the structural and stratigraphic controls. Only when the geometry of the mineralisation is better understood can its economic significance be adequately assessed.” The exploration program has shown that areas under Murray Basin cover can be successfully explored using current drilling technologies if coupled with focussed area selection guided by mineralisation models. The main tool used by Gold Fields has been AirCore drilling to basement, at intervals sufficient to intersect the gold and pathfinder element dispersion halo around large mineralised systems. Geoff said, “AirCore is very effective with an experienced geologist on the rig, capable of recognising the importance of the chips brought up and making decisions ‘on the fly’.”
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“In that way we could select targets for AirCore drilling to basement, based on coincident soil anomalies and interpreted geophysical structures.” Geoff details how, “Drilling commenced on the Summerfield area, near Raywood in December 2003 with 102 holes drilled. The location of weak gold in quartz (3 metres at 0.4 ppm gold) under 40 metres of cover was encouraging at this early stage.” “Soil sampling over the wider Fosterville East and Lockington tenements started in mid January 2004, with follow-up sampling on some anomalous silver values south of Lockington in April.” “Our exploration focus at this time was on some very interesting gold in soil anomalies in the Bendigo Creek flood plain north of Kamarooka,” said Geoff. “So follow-up AirCore drilling was principally aimed at determining the origin of this elevated gold in soils, with 50 holes drilled on selected targets over a wide area.” But he went on to say, “The basement gold values were uniformly uninteresting. After further research we concluded that the Bendigo Creek flood plain is widely contaminated, possibly by colloidal gold attached to clay particles and concentrated by puddling in the Bendigo Goldfield in the 19th Century.” “These puddling clays were washed down the creek in subsequent flooding, to be amalgamated with the Shepparton Formation clays over a very extensive area of the Bendigo Creek and Myers Creek flood plains and is easily mapped from radiometric imagery.”
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Bass Strait oil start
The Basker and Manta fields’ unique infrastructure ready to go
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Main: The deck of Crystal Ocean Above right: Crystal readies herself for Bass Strait 16 DISCOVERY
ew oil production from the Basker and Manta fields in Bass Strait in October will generate up to 25 per cent of Victoria’s total crude oil production when it comes on stream in October, the region’s first new oil field development for seven years. The $260 million project will breathe new life into Bass Strait where oil production has been in decline for more than a decade. Anzon Australia Ltd and joint venture partner Beach Petroleum Ltd will revolutionise Bass Strait oil production with the use of the region’s first floating production, storage and offloading (FPSO) facility. All the oil and gas fields in Bass Strait use fixed facilities to defeat the area’s characteristic wild waters, known as one of the world’s roughest stretches of ocean, with all production then transported ashore through subsea pipelines. The Basker and Manta fields will produce directly into the floating production vessel, Crystal Ocean, with all crude oil then pumped into a separate storage tanker for transport to local refineries. At the end of the fields’ lives the subsea well heads will be removed leaving no trace of the production facility.
“The Basker/Manta development is another strong indicator of the good prospects for oil and gas production in Bass Strait,” The production wells and gas injection well will be connected from the sea floor 155 metres below the vessel, via flexible composite steel flowlines and control umbilicals to a disconnectable turret mooring (DTM) which connects to the middle of the ship through a ‘moon pool’. The moon pool is simply a purpose built hole in the ship allowing the turret mooring to be joined to the production vessel. In heavy sea conditions, the Crystal Ocean can remotely and safely disconnect from the DTM and take shelter until weather conditions subside and allow reconnection. The Crystal Ocean is contracted until at least January 2008, with an option for a total of three extensions for an additional four years on location at the field. The shuttle tanker to be used by the Basker/Manta joint venture, named the Basker Spirit, with storage capacity of 680,000 barrels of oil, is the largest to be permanently anchored in Australian waters for oil storage and distribution. It will take about a month to fill the tanker at the field’s planned peak production rate of 25,000 barrels a day, likely to be reached by mid-next year. The Basker Spirit is due in Victorian waters in October.
Development of the fields has already started with the semisubmersible drilling rig, Ocean Patriot, moving in to Bass Strait in mid-August to drill the Basker 2 appraisal well which is likely to become the field’s first development well. The Crystal Ocean arrived in Melbourne in late August for a last minute refit before heading out to the field, 90 kilometres southeast of Lakes Entrance. The Basker, Manta and nearby Gummy oil and gas fields located in Bass Strait were initially discovered by Shell in 1985, but are now jointly owned by Anzon and Beach Petroleum. Anzon owns 62.5 per cent of the fields while Beach has the remaining 37.5 per cent, although Beach also owns an option over an additional 12.5 per cent which could lift its entitlement to 50 per cent. Beach also owns a direct 10 per cent stake in Anzon Australia. The Basker field will represent the first offshore production for both companies, with the field initially set to produce up to 8,000 barrels of oil per day (bopd). Basker 2 is the first of at least four proposed sub-sea production wells to be drilled by the Basker/ Manta joint venture. SHIP DRILLING AND TRANSFER The Crystal Ocean will be moored “without anchors” using a Dynamic Positioning System (DPS). The DPS uses thrusters at the bow, stern and mid-ships to maintain position over the production wells to within 10 metres by using satellite positioning data and other data on weather and sea-state.
PARTNERS UPBEAT Anzon Australia’s executive chairman, Steven Koroknay, said, “This is a dynamic southern Australian project offering a range of primarily oil but potentially gas development options in several field configurations over the short to medium term. “Achieving production approximately 10 months after listing on the Australian Stock Exchange has to be a record breaking development,” Mr Koroknay said. “The known Basker/Manta oil field production profile, followed by the planned gas development of the Manta and Gummy fields, creates a solid foundation for future growth by both companies. Basker Manta is our first revenue-generating cornerstone project and is clearly in line with our strategy to acquire assets where we, as the operator, can control our destiny and returns to shareholders,” Mr Koroknay said. Beach Petroleum’s managing director, Reg Nelson, was equally upbeat about the Basker/Manta project. “This project will provide a much higher spread of potential revenue, production and earnings and we anticipate that our Basker/Manta entitlements will lift Beach’s annual production to between two and three million barrels of oil by 2007,” Mr Nelson said. “At the top end of the scale, this would triple Beach’s production of just over one million barrels for the latest financial year and rank Beach alongside the likes of AWE, Roc Oil and Arc Energy,” he added. “Beach’s onshore Cooper-Eromanga Basin oil production will remain our engine room for the foreseeable future, but Basker Manta introduces a new balance into our development and production profile.”
OCTOBER 2005 17
Top: Disconnected turret mooring
More information Steven Koroknay Executive Chairman Or Andrew Young Chief Operating Officer Anzon Australia Ltd Ph: (02) 9922 7899 Reg Nelson Managing director Beach Petroleum Ltd Ph: (08) 8338 2833
Basker field
set for production test
A
nzon Australia and partner Beach Petroleum are set to start an extended production test on the Basker field after a highly successful appraisal well was drilled on the field in September. The Basker 2 well penetrated the intra-Latrobe oil reservoirs updip from the Basker 1 discovery well, with preliminary log evaluation indicating approximately 21 metres of net hydrocarbon pay (compared with 22 metres in Basker 1). The well has been completed for oil production with the Extended Production Test (EPT) expected to start in late October. Several crude oil samples were collected from the Basker 2 well confirming the presence of light, sweet, crude oil of around 43°API gravity. That grade of oil, similar to production elsewhere in Bass Strait is a premium quality refinery feedstock, keenly sought by local and major Asian refineries. A large enough sample was collected to allow refinery type assays to be conducted, a necessary process for the commercialisation of the production, Anzon Australia said in a statement to the Australian Stock Exchange. “The quality of the reservoir sands is similar to those encountered in Basker 1 which tested production at record rates of around 5,300 bopd from a single zone, as previously reported by Shell. “Log porosity and permeability indications are consistent with the anticipated high Gippsland Basin productivity. The well will be completed to allow selective production testing of separated zones as well as a commingled stream,” the Anzon statement said. Anzon and Beach plan to penetrate two main reservoir sections to produce oil from the well. “Two groups of sands will be perforated and separated by completion equipment. Each of the two groups of sands will have in excess of 20 metres of perforations,” the company said. Meanwhile the Floating Production, Storage and Offloading vessel Crystal Ocean will be moored over the well in October and the shuttle tanker, Basker Spirit is expected to arrive shortly after. The production flowline, export line and control umbilicals, which are reel mounted, were due to be brought to Australia by a construction vessel owned and operated by oil field engineering group, Technip. Anzon said that all the oil field installations have been approved and should be completed by the second half of October.
“The test information will be used to define the location of the drainage points to maximise oil recovery.” In the early weeks of production, selective testing of the Basker 2 well will be conducted to further define the characteristics of the several productive zones encountered in the well, Anzon Australia said. “The test information will be used to define the location of the drainage points to maximise oil recovery. The remaining four [Basker and Manta field] wells are scheduled to be drilled later this year and early 2006 when the Ocean Patriot returns to complete the full field More information development.” Steven Koroknay The company said that, “The confirmation of good Executive Chairman quality oil in highly productive, typical Gippsland Basin Anzon Australia reservoir sands, is a major milestone in the development Limited of these oil fields.” Ph: (02) 9922 7899
18 DISCOVERY
The Basker Manta project (which also includes the Gummy gas field), is located in Victorian Retention Leases (VIC/RL’s) 6, 9 and 10. The Basker and Manta fields have Proven and Probable (2P) recoverable oil reserves of 23.3 million barrels (mmb). In addition, a contingent gas-condensate resource of 19.2 million barrels of oil equivalent (mmboe) has been identified in the Manta and Gummy fields. The semi-submersible drill rig, the Ocean Patriot, is expected to take up to 40 days to drill and complete Basker2 to its total depth of 3,360 metres. The joint venture has received approval for a six month extended production test, using the FPSO vessel, the Crystal Ocean. Mr Koroknay said initial test rates were expected to be around 6,000-8,000 bopd, rising to around 20,000 bopd when peak production is achieved after full development in mid 2006. Oil from the fields is likely to be sold into Victorian or NSW based oil refineries.
Crystal Ocean's Captain Mark Turner ECONOMIC BOOST FOR VICTORIA At a ceremony to mark the arrival of the Crystal Ocean in Melbourne the Acting Premier, John Thwaites, said the $260 million investment would, at its peak, create 245 jobs in Victoria’s booming resources sector. Mr Thwaites joined the Minister for Energy Industries and Resources, Theo Theophanous, to welcome the vessel to Melbourne. “This is the first oil field development undertaken in Victoria for over seven years and the first by a company other than Esso or BHP,” Mr Thwaites said. “It is a major development and further proof that Victoria is experiencing a boom in offshore exploration activity with $200 million invested in 10 new exploration wells in the Gippsland and Otway Basins last year. “The project will leave a minimal environmental footprint because of its relatively minor infrastructure requirements and all equipment used above the sea bed will be completely removed at the end of the project,” Mr Thwaites said. Mr Theophanous said the project was another demonstration of Victoria’s potential as a resource producer and a further boost to the State’s economy. “The Basker/Manta development is another strong indicator of the good prospects for oil and gas production in Bass Strait,” Mr Theophanous said. “At its peak, the project will employ 245 people. As part of the ongoing operations, 48 jobs will be located at the project site and a further 30 jobs elsewhere during production,” the Minister said. A production licence is expected to be awarded by the Commonwealth Government shortly.
P
Petroleum exploration booming Sound data is helping our petroleum explorers
etroleum exploration in Victoria is booming in the highly prospective Otway and Gippsland Basins. The pace of activity has not slackened and in the last year alone almost $200 million was spent on exploration and appraisal activity. In the onshore Gippsland Basin, Lakes Oil continues to appraise its Wombat gas discovery. Two of Lakes Oil’s wells have been reopened in recent weeks as the program continues. In the Otway Basin, Santos and Origin have made new discoveries offshore from Port Campbell further unlocking the potential of the Waarre Formation sandstones in this highly prospective area. In the offshore Gippsland Basin new 3D seismic has resulted in a 100 per cent exploration success rate. The Nexus/Apache joint venture’s Longtom appraisal and Grayling discoveries, Bass Strait Oil and Gas’ Moby 1 and Zane Gray 1 wells and Esso/BHP Billiton’s West Moonfish 1 well all encountered hydrocarbons. There has also been a rapid expansion of the use of 3D seismic survey techniques, 80 per cent of which was acquired in the last 5years. 3D seismic continues to be the preferred method of seismic acquisition and already, in 2005, four new 3D surveys have been acquired by Apache and Bass Strait Oil and Gas. On the production side, Anzon Energy’s development of the Basker-Manta-Gummy field complex will commence following the successful drilling of the Basker 2 production well. Portfolio rationalisation has also been a recent feature on the exploration and production front with Santos increasing its Gippsland holdings by acquiring interests in the Patricia-Baleen and Sole gas fields and by selling its interest in the Golden Beach gas field to newcomers, the Cape Energy Group. Nexus Energy farmed-out parts of its Gippsland acreage to Korean companies, Korea National Oil Corporation and Seoul City Gas and to Tap Oil. Beach Petroleum has also increased its exposure to both the Gippsland and Otway basins by increasing its equity in the Basker-Manta-Gummy joint venture and farming into Santos/ Origin’s PEP160 permit in the Penola Trough. ENERGY GEOSCIENCE GROUP With this high rate of petroleum sector activity and high oil prices, a new organisational structure for GeoScience Victoria was announced in March. As part of this reorganisation and also to reflect the government’s commitment to encourage access to new energy potential in Victoria, a new group within GeoScience Victoria will handle geoscience issues as they relate to the energy sector. The new Energy Geoscience Group incorporates most of the functions of the previous Petroleum Development Branch but the scope of its activities has broadened to include coal, coal-seam gas, CO2-geosequestration and geothermal energy. The group is led by Hywel Thomas, an oil and gas professional with over 30 years of experience in the international upstream petroleum business with BP and BHP Billiton. The Energy Geoscience Group is made up of two teams. The Basin Studies team is focussed on the geoscientific evaluation of the subsurface geology of Victoria’s sedimentary basins and engages in regional studies to assess the state’s energy resource potential and its prospectivity. The Petroleum Information team
continues to manage the considerable volume of petroleum data submitted to the government under the various Petroleum Acts. BASIN STUDIES TEAM In preparing for future acreage releases, the Basin Studies team has started prospectivity assessments of the Port Campbell embayment and the Penola Trough in the Otway Basin. And with rising interest in the Gippsland Basin, the team is reviewing the availability of data from Victoria’s producing fields. In 1998, DPI’s predecessor, DNRE, published the “Oil and Gas Resources of Victoria”, a compilation of geological and engineering data for each of the major producing oil and gas fields. This is now being updated with more geological and geophysical data. Historically, the activities of the Basin Studies team have been focussed on Petroleum but in 2005 the state government passed enabling legislation to facilitate and regulate the exploration and extraction of geothermal energy in Victoria. A state-wide release of acreage for the exploration of geothermal energy is now scheduled for March 2006. PETROLEUM INFORMATION TEAM In addition to ongoing data management, the Petroleum Information team is involved in upgrading of the Minerals and Petroleum Division’s web mapping application, GeoVic, to deliver more petroleum information online. The application is online at www.dpi.vic.gov.au/minpet/geovic/ Other members of the Petroleum Information team are in the process of making a complete and useable electronic catalogue of the petroleum information held by the department. So far about 75 per cent (about 87,000 items) of the data has been catalogued improving the efficiency of the Client Services section by reducing the turnaround time of client requests. About half of the catalogued items have been scanned. Some of this information has already been released as of data packages. At present, the seismic sepia section collection is being catalogued with both the onshore and all of the Otway Basin sections now in the database. Whilst digital data is also available, scanned images of these sections are useful for quick-looks at the data, for obtaining water depths and seismic velocity data and for investigating the processing sequences used to produce the digital trace data. It is expected that other uses of the data will flow from the catalogue. MARKETING Energy Geoscience staff are routinely involved in DPI’s marketing efforts and promote open acreage and related investment opportunities within the state’s energy sector. The group was recently involved in promoting Victoria at the national Australian Petroleum Production and Exploration Association Conference and Exhibition in Perth and, as part of an all-Australian contingent, at the American Association of Petroleum Geologist’s conference in Calgary, Canada. In recent years, good industry-client relationships have been enhanced with company visits boosting understanding and knowledge sharing between the essential partners. The Energy Geoscience Group is keen to expand on these visits.
More information Hywell Thomas Manager Energy Resource Geoscience Ph: (03) 9658 4538
OCTOBER 2005 19
Stellar looks under cover
Explorer Stellar Resources is seeking new goldfields north of Bendigo
O
Pictures of the Four Eagles FALCON survey
More information Tom Burrowes Managing Director Stellar Resources Ltd Level 7, Exchange Tower 530 Little Collins Street Melbourne, Victoria 3000 Australia Ph : (03) 9909 7618 Fax : (03) 9909 7621 Email : SRZinfo@ stellarresources.com.au
ne of the great mysteries of the rich goldfields of Bendigo in central Victoria is how to locate where gold mineralisation occurs once outcrop stops just north of Bendigo. In the frantic gold rush days of the 1850s and for subsequent decades, thousands of prospectors scoured central Victoria hoping to discover extensions of the Bendigo gold system, but all were unsuccessful. About 30 kilometres north of Bendigo the land surface changes. The rocks which host the Bendigo goldfields disappear beneath the cover of more recently deposited sediments which fill the Murray Basin, a massive, roughly circular, inland sea which once extended from Central Victoria into central NSW and west into South Australia. The nineteenth century miners prospected the area north of Bendigo, but they confined their activity to areas of zero or shallow cover tracing “gold bearing ground” north into Myers Flat, the Whipstick Forest and further to Sebastian and Raywood. TECHNOLOGY LOOKS DEEPER Today armed with new knowledge, modern exploration tools and better financial capacity than the old timers, a new wave of explorers is scouring the regions north and west of Bendigo. Australian Stock Exchange listed junior explorer, Stellar Resources Ltd, is closely examining its Four Eagles prospect located in Exploration Licence 4525. Stellar Managing Director, Tom Burrowes said the licence covers ground to the north northwest of Bendigo and may
20 DISCOVERY
cover 30 kilometres of a postulated strike extension of the underlying Bendigo goldfield stratigraphy, known as the ‘Alexander Horst’, hidden under the cover of the Murray Basin sands. Mr Burrowes told Discovery that he considers the, “Four Eagles area is prospective for the discovery of a large, virgin goldfield … even up to the size of the mighty, 20 million ounce Bendigo Goldfield.” A BIRD’S EYE VIEW One of the newest methods for seeing through cover is the Falcon® airborne gravity survey technique developed by BHP Billiton. Stellar Resources has utilised the technique over its tenements to the north of Bendigo. New technology combined with Mr Burrowes’ experience in the region enhances Stellar’s chance of exploration success. While the airborne magnetic surveys and ground based gravity programs of the Victorian Initiative for Minerals and Petroleum (VIMP) program were vital in project generation, the “magnetics became relatively ‘silent’, as the depth of cover increases to the north and gravity thus increased in importance,” Mr Burrowes said. Mr Burrowes secured tenure to the area north of Bendigo via his private company, Providence Gold and Minerals Pty Ltd (PGM) in 2001 and conducted several rounds of scout aircore drilling. No effective drilling had been carried out on the Four Eagles tenement until PGM’s recent acquisition of title to the area.
Working together T
he DPI team working with industry ensures OH&S, the community and the environment are cared for. Regulation of minerals and extractive operations in Victoria is carried out by a group within the Department of Primary Industries headed by John Mitas. The state is divided into five districts with the Melbourne District one of the most active areas for quarries. The Melbourne district extends from the Greater City of Geelong in the west to the Bass Coast Shire in the east and contains 209 operations including some of the biggest quarries in Victoria and Australia.
In May 2004, Gravity Capital Ltd – a company which had secured an alliance with BHP Billiton to acquire airborne gravity data via the innovative Falcon® technology – entered into a joint venture with PGM to earn a 50 per cent interest by flying and interpreting the Falcon® over an area of some 400 square kilometres. The 50 per cent interest held by Gravity Capital was then assigned to Stellar Resources. The Falcon® survey provided highly detailed gravity data over this area and interpretation has revealed structure and faults previously not visible in VIMP magnetic images and regional (ground based) gravity data. A round of drilling in summer of 2004-05 was aimed at testing these gravity targets and valuable data was collected, but the “key” Falcon® targets to the north remain untested. ACCESS IS GOOD Land access in the area being explored by Stellar is relatively easy. The land is flat and is held predominantly as freehold farm land in family farming enterprises. Mr Burrowes said most of the scout drilling is conducted along road reserves and local communities are kept informed as to events and progress. “The generally positive attitude of the farming community is appreciated. The land was extensively cleared and we believe there are no complicated environmental obstacles. Access logistics are excellent – this is a wonderful place to explore and discover,” he said. Stellar Resources now intends to conduct a testing program to ascertain the most effective drill method to penetrate the 100 metres plus of Murray Basin cover. This will be done prior to launching the next large (10,000 metre plus) aircore drilling program, which is scheduled for this coming summer. Mr Burrowes said, “There is excellent prospectivity along the Alexander Horst, to the north of Bendigo where it disappears under recent cover to host a large and undiscovered goldfield. “Even a goldfield the size of Sebastian (north of Bendigo and on this Horst, circa 200,000 ounces historically) would be a valuable prize. The historic reports reveal that the gold discoveries in the area were very high grade,” he said.
THE MELBOURNE TEAM The Manager of Minerals and Extractive Operations (Melbourne District) is Ian McLeod who heads a team which includes environmental officer Andrew Radojkovic and regulation officer Stephen Butler. Tony Monardo is the client services officer for the Melbourne district. The team is responsible for administering the Extractive Industries Development Act 1995, Minerals Resources Development Act 1990, Occupational Health and Safety Act 2004, Dangerous Goods Act 1985 and all the regulations under those Acts for the mining and extractive sectors. In regulating these multiple Acts the team aims to create an industry environment that promotes the safety and health of all industry operatives as well as the broader community which is affected by the industries’ operations. This requires a combination of good legislative regimes, a quality system of audit and inspection practices, industry education programs together with the active co-operation of Government, community, unions, industry, suppliers of services and equipment manufacturers. The team also provides environmental regulation of the mining and quarrying industries and seeks to encourage responsible industry behaviour that meets or exceeds the expectations of the community for environmental management and protection. THE TEAMS’ DUTIES To achieve these outcomes the Department’s teams: ■ Collect, collate and publish industry wide health and safety statistics to identify trends and monitor safety performance ■ Conduct incident investigations to identify the real underlying causes and subsequently implement recommendations to ensure that those incidents are eliminated ■ Publish hazard alerts to promote industry awareness of hazards and cost effective controls ■ Conduct compliance audits and inspections which provide scheduled and targeted surveillance of safety, health and environmental management systems; recognise compliance and best practice; and, by follow-up ensure implementation of any necessary corrective and preventative actions ■ Develop and review health and safety Legislation, Codes of Practice and Industry Guidelines in consultation with stakeholders ■ Conduct education programs, information sessions and forums on relevant OH&S and environmental subjects ■ Target inspection and audit activities to focus resources on high-risk sites ■ Adopt a graded approach to enforcement that seeks to prevent accident and injuries occurring in the workplace ■ Participate in community consultation through Environmental Review Committees. Ian McLeod is a mining engineer who gained 25 years industry experience in the management and supervision of coal mines in Queensland (Bowen Basin), New South Wales (Hunter Valley) and Victoria before joining the Department in 1999. Away from work Ian is the father of two teenage daughters and spends his spare time sailing.
OCTOBER 2005 21
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hunts Coal Seam Gas New gas reserves in the onshore Otway Basin are being explored ������
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Above right; Cut away of Coal Seam Gas retrieval Above: Map highlighting the CSG exploration zone
More information Dick Sandner Managing Director Purus Energy Ltd Ph: (03) 5443 0344 M: 412 362 336 or Paul Dickson Principal Quotient Capital Ltd Ph: (03) 9628-4188 M: 0416 075 354
urus Energy Ltd is poised to join Australia’s rapidly growing coal seam gas (CSG) exploration and production sector with a significant project to evaluate the black coal seams of the Otway Basin in south-western Victoria. The province is known to contain natural gas through a series of petroleum exploration wells drilled over the past few decades and Purus Energy plans to fully test the potential of the Killara Coal Measures for their capability to produce gas on a commercial scale. Now listed on the Australian Stock Exchange after an Initial Public Offering of shares, Purus Energy aims to explore for and, if successful, commercialise a new source of natural gas for the south-eastern Australian gas market. Purus Energy has already registered interest from potential gas buyers keen to add new sources of supply to their portfolios. Purus Energy has assembled a package of exploration tenements covering a total of 10,196 square kilometres in the onshore Otway Basin extending westwards from Colac in southwestern Victoria to the South Australian border. Of these tenements, Purus has secured 100 per cent rights to explore for CSG over 8,782 square kilometres and has a priority interest in exploration licence applications covering the remaining 1,414 square kilometres. Purus has explored for CSG in Victoria since 2002 by establishing and analysing a data base of petroleum, seismic, mineral (including coal) and water data from previous exploration in the areas now contained within the Purus Energy tenements.
22 DISCOVERY
FIRST TARGETS IDENTIFIED Purus chairman, Peter Vial, said the company has identified six discrete initial CSG project areas within its tenements after analysing petroleum well logs and seismic data. He said, “Analysis of five of these areas from the existing exploration data shows them to have methane gas bearing coal seams.” The six project areas include targets at Gordon, Mocambro, Digby, Hawkesdale, Stoneyford and Nalangil, but he added that further exploration could identify additional target areas. If commercial quantities of CSG are discovered by Purus Energy, it can be brought to market through the extensive network of natural gas pipelines in south west Victoria. These include the SEAgas pipeline which links the gas grids of Victoria and South Australia and the GASnet Ltd operated gas transmission pipeline system which connects Victoria’s Otway Basin gas fields with the major metropolitan markets of Melbourne and Geelong. AN EXPERIENCED TEAM The managing director of Purus Energy is well known resources industry executive, Dick Sandner, former managing director of Bendigo Mining NL and Reef Mining NL. Mr Sandner is currently the President of the Minerals Council of Australia (Victorian Division) and is also chairman of the unlisted public company, Penshurst Resources Ltd. The operations director of Purus Energy is geologist Roger
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STAGED EXPLORATION Purus Energy plans to complete its initial exploration and development program in the Otway Basin over two years. It aims to collect data, including gas flow rates and other economic data from two proposed trial gas fields to calculate the levels of any gas in place as a precursor to launching a commercial feasibility study for CSG production. An independent expert’s technical report in the Purus Energy prospectus says that the coal seams in the, “targetted areas are indicated to be of a sufficiently high rank that would cause them to have produced a significant volume of methane gas during coal formation.” Purus Energy has already conducted initial discussions with natural gas wholesalers who have indicated that they would purchase CSG produced by Purus Energy, subject to commercial quantities and satisfactory commercial arrangements being finalised. Purus Energy’s initial drilling phase is expected to be completed in 12 months and will involve regional drilling to delineate the surface extent of the target coal measures in two primary target areas (Gordon and Hawkesdale) and investigative drilling to determine the gas content of the coals. The exploration project has been planned to enable a trial gas field drilling program to determine the commercial potential of at least two of the six project areas, resulting in a resource estimate in the project area if results are positive. The six target areas identified by Purus were derived from its analysis of petroleum well log and seismic data. The seismic and petroleum well data have been analysed to locate the areas within the coal seams with better seismic reflection, which allowed Purus to select drill sites. Coal drilling work plans have been registered and approved by the Victorian Government for each of the priority Gordon and Hawkesdale CSG project areas. If the initial drilling is successful, Purus plans to establish a Trial Gas Field which will allow the company to determine the commercial viability of gas production through assessment of gas flow rates and other production parameters. Depending upon the trial gas field results, the Purus board then plans to commission a bankable feasibility study for the full production and development of one CSG project area which may require the company to raise additional funds. Purus will actively seek partners to explore and develop the remaining four CSG project areas that are not the subject of the company’s initial development program. A total of 45 million Purus Energy shares were offered in the IPO at 20 cents each to raise $9 million with the offer closing in late August heavily over-subscribed.
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Blake, a specialist in the geology of the Otway Basin. Mr Blake was a founding shareholder and operations director of Essential Petroleum Resources Ltd where he managed the technical and operational aspects of the company’s exploration effort in the onshore Otway Basin. Other non-executive directors include Doug Derham, an accountant with many years experience in the resources sector and stock broking industry and Nathan Mitchell, currently the managing director of Mitchell Drilling Contractors Pty Ltd. Mitchell Drilling is the largest privately owned contract drilling company in Australia. Mr Mitchell is a specialist at drilling coal seam gas wells, having worked on CSG projects for BHP Billiton, CH4 Ltd, Origin Energy Ltd, Santos Ltd and others. In a measure of support for Purus, Mitchell Drilling has acquired shares in Purus Energy in-lieu of cash for some of the drilling services that it will provide.
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OCTOBER 2005 23
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Victoria’s Core Logging Symposium Geologists share knowledge on their use and management of drill core
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Above: Core looging
he strength of Victoria’s gold and mineral exploration industry was on display near Bendigo recently when 75 leading Victorian geologists, members of the Australian Institute of Geoscientists, gathered for a symposium on the latest core logging methods. Cutting core samples of rock formations for examination is a crucial part of mineral exploration, allowing geologists to unravel the secrets of how particular mineral deposits have formed and possibly leading to the discovery of new ore bodies. The symposium, held at the Big Hill winery outside Bendigo, presented a forum where companies could present their logging methods, the features they considered important and how core is presented, marked up, logged, cut and stored. The Australian Institute of Geoscientists (AIG) is a non-profit organisation which aims to advance the skills, status and public perception of geoscientists employed in all sectors of industry and government throughout Australia. The broad base of the AIG encourages transfer of technical expertise and awareness of both professional development and employment opportunities within and outside traditional, resource-based geoscientific activities.
More information Geoff Turner Australian Institute of Geology Ph: (03) 5439 3357
NEW TECHNIQUES OUTLINED AIG member, Terry Potter, presented a discussion on the Glen Wills project in eastern Victoria, followed by a demonstration of how sediment logging techniques have quickly enabled a cross section to be defined in the blind Gold Fields project at Lockington, north of Bendigo. Leviathan Resources was well represented, with two presentations illustrating the different methods of logging utilised in exploration and in resource definition/grade control at the Stawell gold mine. At Stawell particular importance is placed on the way drillers present the core – properly laid out and clean. Meagan Andrea, from Bendigo Mining, emphasised the importance of sedimentary logging techniques in order to understand the complex fold/fault relationships which control the field.
24 DISCOVERY
That is also an important consideration at the similar Sebastian project, near Bendigo where structural features, such as bedding and cleavage, are obvious characteristics often noted in Sebastian core. Ballarat Goldfields geologist, Hamish Forgan, presented a similar story from the Ballarat perspective and displayed the newly built core shed at the Ballarat project. This facility, which is possibly the most modern of its type in the state, features state of the art facilities including specially designed roller tables to eliminate the need for heavy lifting of core trays. Different core logging techniques were demonstrated to emphasise the importance of sediment logging to differentiate beds in the Victorian turbidite sequences, underscoring the work done at Ballarat and Bendigo. Focusing on measured structures such as bedding-cleavage relationships and foliation styles has allowed the mysteries of gold mineralisation at Maldon to be unravelled. Gold Fields of South Africa geologist, Geoff Turner, who is also vice president of the AIG, said that presenters put forward arguments comparing paper-based and direct electronic logging, sampling intervals and core layout and presentation. But he said, “All these seemed to take on a sense of obsolescence when John Huntingdon of CSIRO (in collaboration with Ausspec International) gave a presentation of the HyLogging System. “Will the core logging geologist be replaced by a core handling/logging technician?” he asked. “Many people learnt something new, and most left the symposium fairly confident in their own methodology.” Mr Turner said, “This symposium is the first in a series of basic skills symposia to be run by the various branches of the AIG. “Similar core logging symposia will be held in a number of other states, and other skills events such as GIS techniques, mapping, geophysics collection and interpretation, etc, may also be held,” he said.
Gekko’s award entrepreneurs Gekko’s owners win top business recognition
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he founders of the innovative Victorian mineral processing technology company, Gekko Systems, have won the southern region finals of the International Entrepreneur Of The Year Award and will now be considered for national and international honours in the prestigious business award. Gekko Systems founders, Sandy Gray and Elizabeth LewisGray won the Southern region Technology, Communications, E-Commerce and Life Sciences category at a ceremony at Melbourne’s Sofitel Hotel early in September. The Southern region winners will go on to vie for the national Entrepreneur Of The Year titles in Sydney in November. The entrepreneur of the year award celebrates entrepreneurs who build and lead successful and dynamic businesses, recognising them through regional, national and global award programs in over 100 cities and more than 40 countries globally. Launched in 2001, the Australian Entrepreneur Of The Year Award program is conducted in five regions with regional winners progressing to the national awards. Past national and international winners include: Peter Farrell of ResMed Ltd, John Rothwell of Austal Limited, David Bussau of Opportunity International, Robert Gerard of Gerard Corporation, Scott McNealy of Sun Microsystems, Michael Dell of Dell Computer, Howard Schultz of Starbucks, Jeff Bezos of Amazon.com and Eddie Jordan of Jordan Grand Prix. At the Entrepreneur Of The Year National Award Ceremony, a national winner in each category will be announced and then an overall winner will be selected as the Australian Entrepreneur Of The Year to represent Australia at World Entrepreneur Of The Year finals in Monte Carlo in June 2006. HUMBLE BEGINNINGS Gekko Systems, which began as a backyard business building mineral processing equipment has developed quickly into a major international enterprise helping to improve the environmental and economic performance of mines operated by some of the biggest names in the business including De Beers, Anglo-Gold, Gold Fields, Barrick and Placer Dome. The company provides gravity separation and intensive leach systems for gold, sulphides, native copper, diamonds, garnet, slags, tantalum and tin mines. It is now developing a new technique for recovering gold from copper/gold ores with a new device called the Gekko ‘Resin Column’, a simple, fast and low cost piece of equipment which can be easily fitted into existing mineral processing plants. Gekko has also announced the launch of a $2.4 million research and development program to develop a Modular Underground Processing Plant. That follows on from the development of the Gekko Mag-Screen which helps to improve gravity recovery performance for gold.
A MARK OF EXCELLENCE As the first and only truly global award of its kind, the Entrepreneur Of The Year Award provides international recognition of world-class entrepreneurs and provides a benchmark for entrepreneurial excellence. Winners are muchadmired leaders in their industries and important role models. The independent judging panels consider each Entrepreneur Of The Year Award nominee against the following criteria and will be looking for information that supports and demonstrates examples and evidence of each. ■ Entrepreneurial Spirit ■ Innovation ■ Personal Integrity / Influence ■ Strategic Direction ■ National / Global Impact In selecting Gekko Systems’ founders, the judges said that, “Elizabeth and Sandy are impressive in that they have come up with an incredibly innovative offering by combining their abilities to invent a product, produce it and then create a business to distribute and sell it globally. “Gekko Systems has created a global niche business, which is not an easy thing to do from regional Victoria,” the judges said. “They have a strong international strategy for growth in both the short and long term.” Ms Lewis-Gray said, “Sandy and I were excited to have been finalists in the Entrepreneur Of The Year and we were thrilled when we were announced as the winners. The quality of the candidates in all categories was outstanding,” she said. Selected by independent regional and national judging panels, entrepreneurs are recognized in a number of award categories.
Above: Gekko's founders Elizabeth Lewis-Gray (CEO & Managing Director) and Sandy Gray (Technical Director) accepting the Southern Region Entrepreneur of the Year Award
More information Mick Alsop Marketing Consultant Gekko Systems Ph: (03) 5339 5859 Email: micka@ gekkos.com Web: www.gekkos. com
OCTOBER 2005 25
Hazelwood
agreement to e
Agreement to secure Victoria's energy supply while reducing greenhouse emissions
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Above: The Hazelwood brown coal open cut mine
More information on the Deed http://www.doi.vic. gov.au/energy
he owners of the Hazelwood power station in the Latrobe Valley, International Power, and the Victorian Government have reached a landmark agreement on reducing greenhouse gas emissions. International Power are planning to spend $400 million to extend the Hazelwood brown coal mine, providing fuel for the power station until 2031. In exchange for potentially extending its Mining Licence boundaries and permission to move the Strzelecki Highway and the Morwell River, International Power has agreed to cap its greenhouse gas emissions to 445 million tonnes over the remaining life of the Hazelwood power station, a reduction of 34 million tonnes over the expected emissions. This agreement is enshrined in a deed entered into by both the company and the government. The Victorian Government has hailed the deal as a, “landmark agreement …that will help keep electricity prices affordable while reducing greenhouse gas emissions.” Victorian Premier, Steve Bracks, said the Greenhouse Gas Reduction Deed was the first of its kind in Australia to cap greenhouse emissions from any power station. “We believe we have struck the right balance between our environmental priorities and the need for a secure and affordable energy supply,” the Premier said. The Victorian Government has also endorsed the Environmental Effects Statement which recommended that International Power should be granted access to coal in Hazelwood’s West Field. This clears the way for planning approvals for the relocation of the Strzelecki Highway and the Morwell River to provide access to the coal reserves. “The Morwell River currently runs through a concrete pipe and
26 DISCOVERY
will be restored to a natural meandering course with restoration of the local river environment,” Mr Bracks said.
GETTING THE BALANCE RIGHT Under the agreement Hazelwood power station will: ■ have its greenhouse gas emissions capped at 445 million tonnes; ■ achieve greenhouse savings of 34 million tonnes; ■ potentially gain access to 43 million tonnes of coal in a new reserve outside the existing mining licence boundary of its West Field; ■ have greenhouse emission milestones to aim for; ■ be required to make regular reports on its greenhouse performance; and ■ be provided with extra incentives to invest in renewable energy projects in Victoria. The Minister for Energy Industries and Resources, Theo Theophanous, said, “This is a $400 million project that ensures Victoria’s base load power needs are secured well into the future.” He said the agreement would secure the future for more than 800 Hazelwood workers and their families and would help keep energy prices low. Mr Theophanous said, “The Deed delivers far greater greenhouse gas reductions than the planning panel had contemplated. Instead of savings of around 25 million tonnes of greenhouse gases, this agreement achieves savings of 34 million tonnes …….. the equivalent of the emissions of 7.8 million cars in a single year.” Mr Theophanous said when the power station reached its cap of 445 million tonnes of greenhouse gases, under the Deed it
xtend mine life
Information on the Deed can be found at www.doi.vic.gov.au/energy
would have to close down. Environment Minister John Thwaites said the agreement would not constrain Victoria in the design or operation of a future greenhouse gas abatement scheme, such as an emissions trading scheme. “A future greenhouse gas emissions trading scheme will still apply to Hazelwood power station and could place obligations on Hazelwood’s owners additional to the requirements of the Deed,” he said.
REDUCING GREENHOUSE GAS EMISSIONS AND SECURING FUTURE POWER SUPPLY Victoria has vast reserves of easily and cheaply mined brown coal which fuels 85 per cent of the state’s electricity production. At current and predicted future rates of power generation in the State, there is sufficient brown coal to supply Victoria’s power stations for hundreds of years. While natural gas and renewable technologies such as wind and solar power are expected to play a more significant role in the Victorian electricity market over time, brown coal is expected to remain the State’s dominant fuel source for some time. In its 2005 budget, the Victorian government allocated $104 million to support the development of low greenhouse gas emission brown-coal technologies through the Energy Technology Innovation Strategy (ETIS). The ETIS aims to foster the development of greenhouse gas emission reduction technologies so that Victoria’s brown coal can continue to be used, but in a more environmentally sustainable manner. The ETIS offered $84 million to support the development and construction of a major demonstration-scale power station
using the next generation of greenhouse gas abatement technologies and also offered $16 million over four years to support research and development into other low-emission coal-based technologies. Another $4 million to support research into carbon capture and geological storage was also provided and $2.2 million was pledged to the development and demonstration of a brown coal drying plant in the Latrobe Valley. In its 2005 Greenhouse Challenge for Energy Statement, the Victorian government Below: The recognises that “brown coal will continue to play an important Hazelwood power role in Victoria’s energy mix”. But it also recognises that new technologies have to be station introduced to cut emissions.
OCTOBER 2005 27
review June to September 2005 EXPLORATION LICENCE APPLICATIONS
Title No. EL4884 EL4885 EL4886 EL4887 EL4888 EL4889 EL4890 EL4891 EL4892 EL4893 EL4894 EL4895 EL4896 EL4897 EL4898 EL4899 EL4900 EL4901 EL4902 EL4903 EL4904 EL4905 EL4906 EL4907 EL4908 EL4909 EL4910 EL4911 EL4912 EL4913
Map Sheet
MITIAMO BAIRNSDALE OMEO NAGAMBIE DARGO ARARAT CASTLEMAINE ARARAT ST ARNAUD CRESWICK CASTLEMAINE CASTLEMAINE MITIAMO MITIAMO MITIAMO MITIAMO BENDIGO HEATHCOTE MOE DUNOLLY DUNOLLY DUNOLLY HORSHAM DUNOLLY BENDOC WEDDERBURN COLAC WILLAURA WEDDERBURN CASTERTON
EXPLORATION LICENCES GRANTED Title No
Map Sheet
Primary Owner
LEVIATHAN RESOURCES LIMITED PACIFIC MINERALS PTY LTD MARTIN BLAKEMAN PANAEGIS GOLD MINES LIMITED LEEUWIN MEDIA PTY LTD P S & G F FORWOOD PTY LTD PANAEGIS GOLD MINES LIMITED PETER S FORWOOD ALLAN G ROSSITER MOUNT ROMMEL MINING LIMITED PANAEGIS GOLD MINES LIMITED PANAEGIS GOLD MINES LIMITED GOLD FIELDS AUSTRALASIA PTY LTD LEVIATHAN RESOURCES LIMITED STELLAR RESOURCES LIMITED WEDDERBURN MINING PTY LTD WEDDERBURN MINING PTY LTD AGD OPERATIONS PTY LTD SAWELLS PTY LTD WEDDERBURN MINING PTY LTD HIGHLAKE RESOURCES NL HIGHLAKE RESOURCES NL COLIN BRUCE RAWSON FLITEGOLD PTY LTD OROYA MINING LIMITED REGINALD S O HOLT LEVIATHAN RESOURCES LIMITED LEVIATHAN RESOURCES LIMITED NIPLATS AUSTRALIA PTY LTD PURUS ENERGY LIMITED
Primary Owner
EL4859 FOSTER SAWELLS PTY LTD EL4861 TRARALGON SAWELLS PTY LTD EL4862 TRARALGON SAWELLS PTY LTD EL4821 HAMILTON GOLDEN SIGNATURE NL EL4822 HAMILTON GOLDEN SIGNATURE NL EL4823 WILLAURA GOLDEN SIGNATURE NL EL4682 TRARALGON MONASH ENERGY HOLDINGS LIMITED EL4880 GOROKE INCO RESOURCES (AUSTRALIA) PTY LTD EL4881 HORSHAM INCO RESOURCES (AUSTRALIA) PTY LTD EL4876 EDENHOPE INCO RESOURCES (AUSTRALIA) PTY LTD EL4836 ALBURY NORTHERN MINE VENTURES PTY LTD EL4825 TALLANGATTA RELIANCE MINERALS LIMITED EL4834 BALLARAT NORTH BALLARAT PTY LTD EL4844 BACCHUS MARSH OROYA MINING LIMITED EL4847 ARARAT HIGHLAKE RESOURCES NL EL4660 MATLOCK CMS AUSTRALIA PTY LTD EL4551 TRARALGON CBM RESOURCES PTY LTD EL4550 SALE CBM RESOURCES PTY LTD EL4549 STRATFORD CBM RESOURCES PTY LTD EL4871 BAIRNSDALE RIO TINTO EXPLORATION PTY LTD EL4873 STRATFORD RIO TINTO EXPLORATION PTY LTD EL4875 ORBOST RIO TINTO EXPLORATION PTY LTD EL4878 WEDDERBURN GILES RODNEY DALE EL4884 MITIAMO LEVIATHAN RESOURCES LTD EL4347 ARARAT PHILIP G ROSENGREN EL4877 MOE SAWELLS PTY LTD EL4348 ARARAT PHILIP G ROSENGREN EL4860 TRARALGON SAWELLS PTY LTD EL4868 DOOKIE SOVEREIGN MINERALS PTY LTD EL4869 ECHUCA SOVEREIGN MINERALS PTY LTD EL4890 CASTLEMAINE PANAEGIS GOLD MINES LTD EL4887 NAGAMBIE PANAEGIS GOLD MINES LTD EL4827 BALLARAT COUGAR METALS NL EL4828 BALLARAT COUGAR METALS NL EL4895 CASTLEMAINE PANAEGIS GOLD MINES LTD * (1) Amalgamated into EL4681 and then cancelled. * (2) Amalgamated into EL4416 and then cancelled.
view tenement details at www.dpi.vic.gov.au/minpet/geovic Event Date
Area Size
Event Date
Expiry Date
02/06/2005 20/06/2005 20/06/2005 20/06/2005 21/06/2005 27/06/2005 27/06/2005 04/07/2005 12/07/2005 12/07/2005 26/07/2005 26/07/2005 11/08/2005 11/08/2005 11/08/2005 11/08/2005 11/08/2005 18/08/2005 26/08/2005 26/08/2005 07/09/2005 07/09/2005 09/09/2005 12/09/2005 15/09/2005 23/09/2005 26/09/2005 26/09/2005 27/09/2005 28/09/2005
03/06/2005 03/06/2005 03/06/2005 03/06/2005 03/06/2005 03/06/2005 12/07/2005 13/07/2005 13/07/2005 13/07/2005 13/07/2005 13/07/2005 13/07/2005 13/07/2005 13/07/2005 27/07/2005 27/07/2005 27/07/2005 27/07/2005 27/07/2005 27/07/2005 27/07/2005 27/07/2005 27/07/2005 10/08/2005 10/08/2005 10/08/2005 25/08/2005 25/08/2005 25/08/2005 25/08/2005 09/09/2005 09/09/2005 09/09/2005 21/09/2005
EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED Title No EL4459 EL4493 EL4288 EL4820 EL4837 EL4838 EL4656 EL4616 EL4361 EL4841
Map Sheet
CASTLEMAINE MITIAMO MOE ALEXANDRA MELBOURNE WOODEND EUROA DUNOLLY BEAUFORT BEAUFORT
MINING LICENCE APPLICATIONS Title No.
MIN5444 MIN5445 MIN5446
Map Sheet BALLARAT ALBURY MITIAMO
Primary owner
BALLARAT GOLDFIELDS NL UNIMIN AUSTRALIA LIMITED KRALCOPIC PTY LTD
MINING TITLES SURRENDERED, CANCELLED OR EXPIRED Title No
MIN4942 MIN4606 MIN5337 MIN5419 MIN5211 MIN4665
Map Sheet
ARARAT ST ARNAUD DUNOLLY NOWINGI DUNOLLY OMEO
28 DISCOVERY
Primary Owner
RONALD E BRASSINGTON F J MORDEY CHARLES EDWARD OLDFIELD WHITFIELD MINERALS PTY LTD MARTIN J GREEN HARRY STEVENSON
02/06/2010 02/06/2010 02/06/2010 02/06/2010 02/06/2010 02/06/2010 12/07/2010 12/07/2010 12/07/2010 12/07/2010 12/07/2010 12/07/2010 12/07/2010 12/07/2010 26/07/2007
26/07/2010 26/07/2010 26/07/2010 26/07/2010 26/07/2010 09/08/2010 09/08/2010 09/08/2010 24/08/2010 24/08/2010 24/08/2010 24/08/2010 08/09/2010 08/09/2010 08/09/2010 20/09/2010
Expiry Date
PETER JOHN DE VRIES GARY E MADDOCKS GEO PACIFIC PTY LTD FLITEGOLD PTY LTD BARRICK GOLD OF AUSTRALIA LIMITED BARRICK GOLD OF AUSTRALIA LIMITED GOLDSTAR RESOURCES NL WEDDERBURN MINING PTY LTD SEDIMENTARY HOLDINGS LTD SEDIMENTARY HOLDINGS LTD
Primary Owner
56 KM2 380 KM2 128 KM2 261 KM2 191 KM2 100 KM2 3 KM2 9 KM2 106 KM2 41 KM2 6 KM2 17 KM2 376 KM2 376 KM2 376 KM2 64 KM2 57 KM2 3 KM2 64 KM2 20 KM2 345 KM2 292 KM2 138 KM2 79 KM2 169 KM2 47 KM2 134 KM2 430 KM2 134 KM2 30 KM2
07/07/2005 13/07/2005 28/07/2005 28/07/2005 10/08/2005 10/08/2005 25/08/2005 25/08/2005 09/09/2005 09/09/2005
Event Date
Area Size
Event Date
Expiry Date
10/06/2005 11/08/2005 17/08/2005
342.4 HA 5 HA 31.4 HA
12/06/2005 15/06/2005 10/08/2005 10/08/2005 25/08/2005 09/09/2005
go to… Business Centre Contacts GENERAL INFORMATION AT DPI
MINERALS AND PETROLEUM BUSINESS CENTRE
Upper Ground Floor, 1 Spring Street, GPO Box 4440, Melbourne Victoria Kim Ricketts 3001 Australia Minerals and Petroleum Business Centre Coordinator T (613) 9658 4440 F (613) 9658 4760
[email protected] T (613) 9658 4454
[email protected]
EXECUTIVE
BUSINESS DEVELOPMENT AND TECHNOLOGY
Richard Aldous Executive Director Minerals and Petroleum T (613) 9658 4411
[email protected]
Chris Hamilton Director Business Development and Technology T (613) 9658 4401
[email protected] Roger Buckley Manager Business Development T (613) 9658 4402
[email protected] Graham Gooding Manager Minerals Industry Development T (613) 5336 6804
[email protected] Kathy Friday Development Manager T (613) 9658 4407
[email protected] Geoff Collins Manager Petroleum Projects T (613) 9658 4406
[email protected] John Lambert Manager Technology Development T (613) 9658 4405
[email protected]
GEOSCIENCE VICTORIA
Kathy Hill Director, GeoScience Victoria T (613) 9658 4562
[email protected] Paul McDonald Manager Resources T (613) 9658 4503
[email protected] Alan Willocks Manager Geoscience Information T (613) 9658 4501
[email protected] Peter O’Shea Manager Minerals Geoscience T (613) 9658 4525 peter.o’
[email protected] Hywel Thomas Manager Energy Resource Geoscience T (613) 9658 4538
[email protected]
INFORMATION AND DEVELOPMENT
Manny Hemman Manager Information Development T (613) 9658 4571
[email protected]
MINERALS AND PETROLEUM REGULATION
Phil Roberts Director, Minerals and Petroleum Regulation T (613) 9658 4457
[email protected] George Buckland Manager Minerals and Petroleum Tenements T (613) 9658 4439
[email protected] John Mitas Manager Minerals and Extractive Operations T (613) 9658 4422
[email protected] Doug Sceney Manager Sustainable Development T (613) 9658 4433
[email protected]
POLICY DEVELOPMENT
Jennifer Wolcott Director Policy and Legislation T (613) 9658 4458
[email protected] CORPORATE COMMUNICATIONS
Nathan Cox Communication Adviser, Divisional Communications T (613) 9658 4079
[email protected]
Terry McKinley Acting Manager Petroleum Operations Safety and Environment T (613) 9658 4414
[email protected]
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 Primary Industries 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.minerals.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 Petroleum Production and Exploration Association www.appea.com.au Minerals Council of Australia (Vic) www.vicmins.com.au
OCTOBER 2005 29
DEPARTMENT OF PRIMARY INDUSTRIES
Explore Victoria Online with GeoVic at www.dpi.vic.gov.au/minpet/geovic GeoVic - minerals and petroleum web mapping application provides valuable on-line access to Victoria’s extensive mineral and petroleum databases. GeoVic allows users to:
GeoVic contains datasets including:
- search geospatial databases - display results as maps and tables - download data
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current and expired tenements land-use airborne geophysical survey boundaries gravity, magnetic & radiometric images borehole & petroleum well data seismic coverage surface geochemistry results mines & mineral occurrences geological maps & interpretations at 1M, 250k, 100k & 50k scales.
For further information on GeoVic please email
[email protected]
www.dpi.vic.gov.au/minpet/geovic