Discovery 048 2010-10

Iluka Resources Reaps the benefits of Western Victoria

OCTOBER 2010

Clean Coal Victoria First technical resource assessment

CO2CRC VICTORIA’S EARTH RESOURCES JOURNAL

Greenhouse gas technologies

Bendigo Mining Ltd Bendigo expands with merger

Northgate Minerals Corporation Northgate keeps pouring Victorian gold 10 PAGE SUMMARY

Resources Victoria Conference 2010

Regulars

Minister’s Foreword

News Updates

Peter Batchelor Minister for Energy and Resources

PAGE 3 TO 7

PAGE 2

• Former Rio Tinto Executive joins DPI

Executive in Focus Rod Hanson PAGE 13

• CO2CRC

• Victorian Geothermal sector heats up its community engagement • Victoria’s online exploration tools made easier • Dart Mining NL moves towards first Moly resource • Clean Coal Victoria Releases First Technical Resource Assessment

RDV Drilling Update

Round three drilling progress PAGE 8

Tenement Updates What’s happening with mineral applications and licences PAGE 32

Contacts Your guide to Earth Resources. Information, contacts and resources sector websites PAGE 33

CONTENTS

• New legislative changes for Victoria’s mining and extractive industries

Articles

Resources Victoria Conference

Minotaur Exploration Ltd

Presenters Forum Summary

Minotaur on the hunt for new minerals in Victoria

Above: Process plant at Kangaroo Flat.

For Discovery online visit: www.dpi.vic.gov.au/minpet/discovery or to receive your free copy send your details to: Megan Temple Earth Resources Division Department of Primary Industries Phone: 03 9658 4402 Email: [email protected] PUBLISHING DETAILS Discovery is published three times a year by the Victorian Government Department of Primary Industries, Earth Resources Division, Melbourne, October 2010.

Jabiru Metals Gary Comb

Iluka Resources

Iluka Resources Steve Wickham

Iluka Resources to reap the benefits of Western Victoria

Bass Strait Oil Company Andrew Adams Greenearth Energy Mark Miller

page 10 - 11

Heron Resources Mathew Longworth

Bendigo Mining Ltd Bendigo expands with BCD Resources merger page 12

Northgate Minerals Corporation Northgate keeps pouring Victorian gold page 14 - 15

Castlemaine Goldfields Ltd Exploration success at Ballarat after Castlemaine acquisition

ISSN Number 13282409

page 16 - 17

For more information contact: Department of Primary Industries Level 16, 1 Spring Street, Melbourne 3000. www.dpi.vic.gov.au

3D Oil Ltd

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.

page 18 - 19

This publication is copyright. No part may be reproduced by any process without the written permission of the Department of Primary Industries. ACKNOWLEDGMENTS The Earth Resources Development Division acknowledges contributions made by private enterprise. Acceptance of these contributors, however, does not endorse or imply endorsement by the Department of Primary Industries of any product or service offered by the contributors.

ExxonMobil Craig Haymes

page 9

3D Oil Ltd aims at Bass Strait production

Beach Energy / Lakes Oil Beach Energy farms into Lakes Oil onshore project page 20

Providence Gold and Minerals

3D-GEO Jessie Davey Bendigo Mining Rod Hanson pageS 22 - 27

Technical Forum Summary Understanding the plumbing of the Gippsland Basin Peter Tingate Three-dimensional modelling in the Melbourne Zone Mark A. McLean New Victorian Heat Flow Map David Taylor New solution to the Ordovician-Silurian geometry puzzle Ross A. Cayley Seamless geological data for Melbourne Zone David Higgins

New Gold discovery under cover north of Bendigo

New exploration tools and new insights for Victoria Timothy J Rawling

page 21

pageS 28 - 31

DEPARTMENT OF PRIMARY INDUSTRIES

Next Generation Tools For Explorers: Building Australia’s most comprehensive onshore and offshore 3D geological model GeoScience Victoria has started delivering outputs

These products, along with those soon to be

from its Rediscover Victoria 3D modelling initiative.

released for the Gippsland Basin and eastern

3D products are now available for download which

Victoria, will provide explorers with new free

include:

pre-competitive datasets that can be used

– 3D models of the Bendigo, Stawell, GrampiansStavely and Melbourne structural zones – 3D models and accompanying report on the hot sedimentary aquifers of the Otway Basin – New 3D geophysical datasets and reports including isostatic gravity and potential field gradients – Depth to basement surfaces for the whole state – Numerical simulation results associated with gold deposition and strain partitioning associated with mineralising events

predictively to reduce risk, time and cost of discovery.

For more information: Contact Dr Tim Rawling, Phone: +61 3 9658 4584 Email: [email protected] Visit www.3dvictoria.dpi.vic.gov.au

MINISTER’S FOREWORD

Victoria’s mining sector is open for business with the world’s most modern mining laws and a wealth of geological data making the state an attractive destination for explorers and developers. The Victorian Government has put in place legislative reforms designed to drive investment in the next generation of mines across the State. It is also supporting the industry with innovative initiatives like a sophisticated geological model of Victoria that gives miners a head start in the hunt for the next big discovery. Revamped Mining Laws To Boost Investment Amendments to the Mineral Resources (Sustainable Development) Act, which have now passed into law, are designed to ensure Victoria has an effective and modern regulatory framework for the sector. They strike the right balance by providing security of tenure for committed developers while at the same time encouraging exploration for new resources. The centrepiece of the reforms is the introduction of a new retention licence to be granted when a mineral resource is identified but its commercial viability is still being assessed. The licence will deliver greater security of tenure for miners who have a genuine intention to develop mineral resources. Relinquishment requirements will not apply to these new retention licenses, which can be held for up to three ten year periods in some circumstances. Other measures in the amendments include the creation of a prospecting licence tailored to small miners, streamlining of approvals processes and more consistent and accurate measurement for the levying of coal royalties. Future Energy Plans Feature Carbon Capture In June the Government released the Victoria’s Energy Future discussion paper, setting out the challenges and opportunities the State faces in meeting growing energy demand in a carbon constrained future. It followed this up in July with its Climate Change White Paper Action Plan, which charts a course for a 20% cut in greenhouse gas emissions by 2020. Both documents highlighted the huge potential for Victoria to use carbon capture to lower its emissions and the White Paper featured $30 million in funding for the CarbonNet initiative. This will fund work on plans to develop a network of pipelines to transport carbon to storage sites in the Gippsland Basin. With vast depleted oil and gas reservoirs located next to the world’s biggest brown coal resource, Victoria is perfectly placed to become a global leader in developing carbon capture as a tool to lower emissions. Geothermal Atlas Maps Out An Opportunity Geothermal power generation is another emerging technology which could play an important role in meeting the State’s future energy needs. Several companies are already working on early stage projects to make use of this clean energy source, generated deep beneath the earth’s surface from the naturally occurring heat in rocks and hot water aquifers. The Victorian Government has launched a ground-breaking new atlas of the State’s geothermal energy potential based on measurements at more than 100 sites across southern and north-western Victoria. This geothermal atlas provides data that will be invaluable as we work to harness this potentially important new source of renewable energy.

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DISCOVERY JOURNAL OCTOBER 2010

Statewide Geological Model Grows Work is gathering pace in the drive to build up a state-of-the-art 3D geological model of Victoria, with the release of the Melbourne Zone model the latest piece in the puzzle. This is the fourth section in the whole-of-Victoria model being created under the Government’s $2.5 million Rediscover Victoria 3D initiative. The Melbourne Zone covers 37,600 square kilometres, from Heathcote in the west to Mansfield in the east and from Wilsons Promontory in the south to Shepparton in the north. Rediscover Victoria is giving explorers free access to a sophisticated and powerful tool that will help them make the discoveries that will underpin the Victorian mining industry’s future. Coal Study Drives Strategic Planning The first technical assessment from Clean Coal Victoria has yielded important data about Victoria’s brown coal resources and this is already informing decisions about how best to develop this key strategic asset. Drilling around the Yallourn Mine confirmed a significant coal resource to the east of the mine but very little economically viable coal at Newborough on the western side. As a result, the Government has moved the buffer zone between the mine and the township of Newborough, opening up more land for potential residential development. Clean Coal Victoria is now processing the results from its next round of drilling at Longford, building up a detailed picture of the State’s giant brown coal resource that will underpin strategic planning for future mining. Conclusion This edition of Discovery tells the stories of the innovative projects that are writing the next chapter in the history of our state’s vibrant earth resources industry. I look forward to working with the mining and petroleum industries to grow the sector and create new jobs in Victoria.

Peter Batchelor Minister for Energy and Resources

NEWS UPDATES

Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC)

Above: This solvent rig is one of three CO2CRC rigs in use at the CO2CRC/HRL Mulgrave Capture Project. These rigs capture CO2 from syngas, the product of the brown coal gasifier, using three innovative new technologies.

Above: Vacuum swing adsorption is one of three carbon dioxide separation technologies being evaluated through the CO2CRC H3 Capture Project.

The next five years will be crucial for the global development of Carbon Capture and Storage (CCS) technologies, according to the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC).

The update said that one of the challenges of the assurance monitoring program is being able to tell the difference between natural and injected carbon dioxide.

It is in the next five years that the first of the commercial CCS projects aimed at reducing carbon dioxide emissions are due to come on-stream, both in Australia and overseas. The CO2CRC is set to remain at the forefront of research into CCS after an extension of its funding to 2015 under the Commonwealth Government’s Cooperative Research Centres Program. Chief Executive of CO2CRC, Dr Peter Cook, said the 2010-2015 program, would tackle all aspects of CCS from the capture, transport of carbon dioxide, through to its geological storage, while focusing on the major technical obstacles to large scale deployment. “CO2CRC research will play an important role in supporting those projects, helping to identify and effectively use storage options, reduce the cost of carbon dioxide capture and increase the public’s understanding about the technology.” ‘’We will continue to use our capture research assets at Mulgrave and Hazelwood and our world class storage facilities in the Otway Basin. Together these provide us with a strong basis to our many activities that will take forward CCS,’’ Dr Cook said.

He said that in recent months, the CO2CRC launched the CCS Atlas of New South Wales (NSW) which focuses on the geology of NSW but also looks at infrastructure and accessibility, related resources issues and social and environmental sensitivities. The Atlas developed by Dr Alexandra Golab, provides a template for regional assessments. Furthermore, the CO2CRC has now demonstrated the secure storage of carbon dioxide deep underground at the CO2CRC Otway Project in Victoria, Australia’s first storage project.

‘’For this reason, tracer gases were injected with the stored carbon dioxide as part of the Otway Project.’’ Concentrations were below the detection limit for all samples analysed, indicating that the carbon dioxide detected is naturally occurring and is not injected carbon dioxide. The soil sampling is one component of the world class monitoring and verification program at the Otway Project site which includes atmospheric, ground water and downhole sampling and monitoring to verify the modelled behaviour of carbon dioxide.

The new research program includes a second stage at the Otway Project site investigating storage in saline geological formations and monitoring, as well as continuing work at carbon dioxide capture demonstration projects.

FOR MORE INFORMATION:

“Re-funding is recognition of the scientific excellence the CO2CRC has brought together, here in Australia and around the globe,” Dr Cook said.

Dr Peter Cook Chief Executive The Cooperative Research Centre for Greenhouse Gas Technologies Telephone: +61 2 6120 1600 Email: [email protected]

In an update on the Otway Project, the CO2CRC said soil gas surveys were continuing, providing assurance to the community that the carbon dioxide has been stored safely. During the latest soil gas assurance monitoring survey, conducted in March 2010, 245 samples were taken across the study area and gas analysis was performed on each.

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NEWS UPDATES

Former Rio Tinto Executive joins DPI

Dr. Mike Hollitt is the new Executive Director of the Earth Resources Development Division, Department of Primary Industries (DPI), a position he assumed on 27 April 2010. A qualified chemical engineer, metallurgist and MBA, Mike has worked in every populated continent, managing resource projects, new process development and operational efficiencies across the value chains from resource assessment to finished products in the lead, zinc, copper, mineral sands, chemicals and aluminium industries. Prior to joining DPI, Mike was with Rio Tinto occupying eight senior executive and general management roles over 25 years, including the position of Executive Director (and Working Group Chairman) of the Rio Tinto Foundation for a Sustainable Minerals Industry and Technical Director of the Rio Tinto La Granja Project in Peru. Mike suggests that Victoria is the birthplace of the Australian mining and processing industries and notes that it still houses the head offices of some major global corporations. Victoria continues to host thriving industries in coal, gold and mineral sands, with considerable potential to further progress these industries, base metals and new opportunities in geothermal and carbon storage.

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DISCOVERY JOURNAL OCTOBER 2010

“I’m very pleased to be working towards Victoria’s continued economic prosperity from the sustainable development of its earth resources,” Mike said, adding that he sees his new role as promoting four major outcomes for Victoria: • ensuring exploration contributes a pipeline of potential resources projects; • supporting and facilitating the development of major resources projects for the benefit of all Victorians; • continuing to develop an aligned, positively engaged industry; and • working to maintain an engaged positive community that understands the role of mining in economic and social prosperity. In facing those challenges, Mike believes he would need to, among other things: • support the establishment of legislative instruments that align government processes with business processes, e.g., via the Mineral Resources (Sustainable Development) Act amendments, and in many other ways; • focus on individual industries encouraging the participation of globally linked competitors in strategic industries in Victoria; • seek new competitive positions for Victoria in energy resources; and • continue to support access for industries having high importance to the development of our cities, regions and infrastructure. Mike looks forward to working with all Victorian stakeholders to meet the challenges of developing Victoria’s earth resources for the benefit of all Victorians. For more information contact

Dr Michael Hollitt Executive Director Earth Resources Development Division Department of Primary Industries Telephone: 03 9658 4410 Email: [email protected]

Victorian Geothermal sector heats up its community engagement Greenearth Energy’s exercise in establishing a new position in this emerging industry has lead it to a more comprehensive approach in its community engagement. Community and stakeholder consultation is now very much a feature of Greenearth Energy Ltd’s plans for its Geelong Geothermal Power Project (GGPP). While the company works towards establishing the GGPP, it has moved to engage the community in all aspects of what will be a new industry for Victoria through the formation of a Community Reference Group (CRG). “The aim of the CRG is to provide a transparent, representative and accessible forum to address issues of community interest related to the project and to capture community feedback and suggestions,” the company announced in late July. “The CRG also exists to assist with the decision making for the GGPP, to increase understanding about the project within the community, and to ensure a more effective response from the project team to any arising issues and concerns,” the company said. Greenearth said that advertisements calling for nominations from interested members of the community and representatives of stakeholder groups were placed in publications circulated in the project area at the beginning of the June quarter. “A number of nominations were received, representing a diverse range of community groups in the Wensleydale, Gherang, Anglesea, and Geelong region, as well as some interested individuals.” It said that an independent selection panel, consisting of representatives from Department Sustainability and Environment (Bellarine Region), Barwon Water and the Surf Coast Shire made the selections for the CRG which will consist of an independent Chairperson, 10 members representing various stakeholder and community groups and Greenearth Energy’s representative, Executive Director Robert King. Greenearth is also providing secretarial support to the CRG.

Victoria’s online exploration tools made easier

NEWS UPDATES

Subject to financing availability, the GGPP project envisages spending $104 million on firstly proving the geothermal potential of the region’s hot sedimentary aquifer, and then building a 12MW demonstration plant. The company is aiming to complete what would essentially be stage one of the project in the second half of 2013. The establishment of the CRG followed the late June launch of an industry body designed to promote geothermal energy in Victoria by Energy and Resources Minister Peter Batchelor. Mr Batchelor said the Victorian chapter of the Australian Geothermal Energy Association would “strengthen the promising geothermal energy work already underway across the state.” “The Victorian chapter will represent geothermal companies, helping the industry grow and work with communities, as well as helping the community understand more about the industry. Diversifying our energy sources and technologies is essential if we are to maintain energy security and cut our greenhouse gas emissions,” he said. Mr Batchelor said that geothermal energy was one of the few renewable energy technologies which could provide 24-hour base load power for the State’s electricity grid. “In Victoria, there appears to be significant potential to produce geothermal energy from naturally occurring hot water reservoirs deep beneath the earth’s surface,” he said. FOR MORE INFORMATION:

Mark Miller Managing Director Greenearth Energy Ltd Telephone: 03 9620 7299 Email: [email protected] Website: www.greenearthenergy.com.au

Above: A screen capture of the new GeoVic with Geothermal Heat Flow layers displayed.

GeoVic is Victoria’s earth resources online web mapping application. Although highly regarded, the exploration tool has been redeveloped as part of the Gold Undercover Initiative.

Apart from these improvements, the appearance of the interface has changed along with the way the interface works. The system is also running on a new whole of Victoria Government ICT platform.

Built on what had become an ageing platform, access to more of earth resources data necessitated a rebuild of the system. In light of this, a new GeoVic online web mapping system has been developed over the past year.

Extensive Online Help is also one of the features of a new generation of GeoVic.

It includes many new features: • Quick searches to earth resources key datasets • Common searches tailored to speed up searches to datasets/layers • User configurable layer transparency • Significant improvements to access to our data stores • Improved user interface • New layer folder functionality • Access to Open Geospatial Consortium data formats • Registration mechanism for enhanced features • Improved accessibility • Improvement in many Earth Resource Images • Real time borehole reports.

Importantly, the new system will no longer work in Internet Explorer 6. It will require Internet Explorer 7 or above. This change means that it can take advantage of improved browser functionality. To be kept informed of when the new system will be implemented, check the “Service Update” message at www.dpi.vic.gov.au/earth-resources/geovic. For more information contact

Robert Lane Telephone: 03 9658 4574 Email: [email protected]

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NEWS UPDATES

Dart Mining NL moves towards first Moly resource

Above: Laminations of Molybdenite in quartz stockwork vein – 385m DUNDD005 (NQ Core) - Assay awaited

Above: Solid Molybolenite vein in quartz.

Early encouragement in its deep drilling program has given Dart Mining NL the confidence to work towards issuing the first inferred resource estimate for its Unicorn molybdenum-copper-silver property near Corryong in north-east Victoria.

Despite the excitement caused by the Unicorn/Morgan finds, Dart continues to assess the modern-day gold potential of its tenements in north-eastern Victoria, including its namesake property, the historic Dart goldfield.

Chairman and acting Managing Director of the Melbourne-based explorer, Chris Bain, told Discovery in August that the second deep hole at the property was well underway and that the plan was to keep drilling ahead of the maiden resource estimate being made. “We don’t plan to stop,” Mr Bain said. The maiden resource estimate – possibly within a year – would be a first for Victoria, given the importance of molybdenum in the suite of metals encountered at Unicorn. The Unicorn porphyry was first recognised in late 2007 when field work confirmed outcropping rocks contained a suite of metals. Follow up soil sampling indicated the presence of a strong multi-element circular anomaly, some 500 metres in diameter, with notable molybdenum. Now known as the Unicorn prospect, the feature was first subjected to a program of shallow drill holes. The current deep drilling campaign started in April 2010 and encountered early success.

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DISCOVERY JOURNAL OCTOBER 2010

Molybdenum and copper mineralisation was intersected in core to more than 400 metres depth in the first of the deep holes and the second deep hole has also encountered mineralisation. Mr Bain said that assay results to hand, when taken in combination with surface mapping, geochemistry and geophysics, demonstrates the potential for “a very large mineralised system of potentially many hundreds of million tonnes.” The discoveries at Unicorn and nearby at Morgan are located close to what Mr Bain said was the first class infrastructure base less than 20 kilometres away from Corryong. The Morgan porphyry is located 7 kilometres west of Unicorn in the same structural setting. Diamond drilling commenced in November 2009 at the molybdenum-copper-silver-gold prospect. The Phase I program was completed in April 2010. A significant zone of visible molybdenite mineralisation was encountered within highly altered sediments and porphyry dykes above what is interpreted to be a concealed porphyry complex. Dart has also identified several other locations it considers are prospective for mineralised porphyry intrusions. At Bunroy and Boebuck to the south of Unicorn, regional alteration studies indicate the existence of intrusions and first pass soil sampling along fire tracks has confirmed anomalous copper, lead and bismuth. Mr Bain said the prospects will be subject to follow up exploration in future.

At the Mountain View prospect a structure extending over one kilometre has been subject of detailed near surface drilling adjacent to a historic mine. High grade gold associated with a significant arsenic anomaly has been identified from surface, with the most significant intersection in hole MVD20 of 6 metres grading 21.79 grams of gold a tonne. Dart said in an investor update that additional work was required to better understand the continuity of the system so that additional drilling can be better targeted in what has the potential to be a modest sized but rich gold prospect. FOR MORE INFORMATION:

Chris Bain Chairman Dart Mining NL Telephone: 03 9621 1322 Website: www.dartmining.com.au

Clean Coal Victoria (CCV) has released its first technical resource assessment report.

The drilling program involved drilling two strategically located bore holes from which cores were taken for analysis.

As CCV undertake further drilling, additional Technical Resource Assessment Reports will be released.

CCV, established in mid-2009, is responsible for developing a strategic plan for Victoria’s valuable brown coal resource and has undertaken some preliminary drilling to assist in this task.

The data obtained has been added to previous information to confirm the geology at this location.

The second drilling program has now been completed at Longford, which is located within the Wellington Shire Council, and once the data obtained has been analysed, the second Technical Resource Assessment Report for this area will be released.

The first drilling was undertaken at Newborough west of the Yallourn Mine and east of the township of Newborough. The Newborough drilling and coal resource investigation confirmed a very large coal resource to the east of the Yallourn mine but very little coal on the western side. This area is the first to be assessed and will become part of a much larger project which will see the development of a strategic plan for the future use of the Latrobe Valley brown coal.

The results obtained have led to a recommendation to amend the location of the current buffer zone between the Yallourn mine and Newborough. This buffer or Environmental Significance Overlay (ESO) acts to protect the coal resource as well as any urban development by keeping a 1km distance between the mine crest and the town boundary. This work, which has recommended a change to the location of the ESO, is the first step in allowing alternate land uses for this area. This work will be undertaken by Latrobe City Council in conjunction with the Department of Planning & Community Development.

NEWS UPDATES

Clean Coal Victoria Releases First Technical Resource Assessment

CCV will undertake a more significant drilling program during 2010-2011 with a view to having the strategic plan for brown coal being completed during 2011-2012. For more information contact

Charlie Speirs, Director, Clean Coal Victoria Telephone: 03 5160 9000 Email: [email protected]

Introduction of new legislative changes for Victoria’s mining and extractive industries The Mineral Resources Amendment (Sustainable Development) Act 2010 received royal assent on 14 September 2010. The Act will amend the Mineral Resources (Sustainable Development) Act 1990 to introduce a number of administrative changes. The Amendment Act was developed as part of a review which commenced in April 2009. An extensive consultation process was undertaken as part of the review and informed the development of the Amendment Act. The Act will introduce a number of reforms including: • Introduction of mineral identification requirements for retention and mining licences • Changes to relinquishment and renewal arrangements for exploration licences to improve access for genuine resource development

• Changes to the ‘fit and proper person’ provisions to clarify the circumstances in which a person may not be considered ‘fit and proper’ • Introduction of statutory endorsement of work plans to reduce duplication, delays and regulatory burden • Extension of the terms of Miner’s Rights and Tourist Fossicking Authorities to up to ten years • Clarification of compensation provisions, in particular relating to “offsite” compensation and agreements between landowners and licensees • Clarification of consent provisions in relation to low impact exploration on private land, to allow for informed verbal consent as an alternative to written consent • Clarification of the calculation method for coal royalties.

The primary focus of these amendments is the licensing provisions of the Act, and creating a legislative framework that increases activity in the minerals industry and benefits to Victorians. The Act will also provide increased security of tenure, and will lead to a greater alignment of licensing and industry processes. Copies of the Amendment Act are available on the Victorian Legislation and Parliamentary Documents website, www.legislation.vic.gov.au. Links to the legislation are available on the DPI website, www.dpi.vic.gov.au For more information contact

Dr Danny Suster Manager, Earth Resources Policy and Legislation Department of Primary Industries Telephone: 03 9658 4804 Email: [email protected]

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RDV UPDATE

Rediscover Victoria Round three drilling underway Twelve companies were offered grants totalling A$700,000 under the third round of the Victorian Government’s A$2.5 million Rediscover Victoria Drilling (RVD) project designed to assist exploration for new geothermal and mineral resources. Round three received the strongest level of industry interest to date, having more than doubled the number of grants offered compared to the initial round of grants in early 2008. The RVD Program provides funding assistance to companies to encourage exploration in greenfields areas and to promote innovative drilling programs and testing of new geological models in areas that may be seen as either higher risk or having limited prospectivity. The exploration generates new geoscience insights that can be used by DPI to better understand Victoria’s geology and prospectivity.

Mineral Projects (Completed) Two companies have successfully completed their Round 3 drilling programs in northern Victoria and have submitted Final Drilling Reports to GSV. Providence Gold & Minerals (RVD Grant: A$70,000) completed 66 aircore holes for a total of 7000m of drilling in the Murray Basin to explore for gold in the Mitiamo area, north of Bendigo. Providence reported anomalous gold in 10 holes, with a very promising basement intersection of 6m returning 29g/t gold. The gold is coarse, likely of the Bendigo style, and contained within quartz in the basement Ordovician rocks, under some 30 to 120 metres of sand/clay cover. Oscar Mining (RVD Grant: A$24,250) completed its “first-pass” drill test program of 17 aircore holes totalling 2400m of drilling in the Terrick East region, west of Echuca.

Mantle Mining Corporation Ltd (RVD Grant: A$45,000) has completed two diamond holes to a depth of 568m on the first of two magnetic anomalies at Haunted Stream, north of Bairnsdale. The program of four diamond holes is expecting to reach a total depth of 1200m with an additional 800m of RC drilling. Drilling on the second anomaly will commence in mid-October/November, 2010.

Mineral Projects

(Planned)

Austpac Resources NL (RVD Grant: A$14,000) will undertake a series of 14 aircore holes, each 75m deep, in the Delamerian Fold Belt to explore for copper and gold south of Horsham in western Victoria. The program is expected to commence in December 2010. BCD Metals Pty Ltd (RVD Grant: A$66,000) is undertaking a program of two 300m diamond holes (with RC collar) in the Stawell Belt to explore for gold southwest of Ararat in western Victoria. The project, which follows on from successes in rounds one and two, is expected to be completed in late 2010. BCD Metals is a subsidiary of Melbourne-based BCD Resources which has recently announced merger plans with Bendigo Mining Ltd. DMS Pty Ltd (RVD Grant: A$50,000) is undertaking to drill a series of 42 aircore holes in the Stawell Corridor as part of a project to explore for gold between Horsham and St Arnaud in western Victoria. The program will be conducted from midSeptember 2010. Navarre Discovery No 1. Pty Ltd (RVD Grant: A$17,000) is planning to drill eight holes in the Dimboola Arc (total 1200m) to explore for copper-gold-nickel in the Horsham region, western Victoria. The drilling component is expected to commence in October 2010 for a period of two weeks.

Geothermal Projects

Dart Mining Pty Ltd (RVD Grant: A$80,000) has recently completed drilling to a target depth of 700m on the second of two diamond holes on the Mount Unicom Porphyry Mo-Au-Cu Project. The drilling program in the Corryong district of northeast Victoria, returned multiple mineralised sections with very promising results. Dart is conducting additional drilling to further define the target.

Earth Solar Power Pty Ltd (RVD Grants: A$60,000 (Geothermal Exploration Permit 21), A$30,000 (GEP 14), A$30,000 (GEP22)) is anticipating commencement on three RVD projects across northern Victoria in the Oct-Dec quarter. The company has been conducting extensive community liaison and stakeholder engagement programs as part of their overall exploration approach. Earth Solar Power is currently negotiating with landholders to confirm drill sites.

Mineral Projects

Torrens Energy Ltd has deferred its shallow drilling program in GEP 5 at this stage and is no longer eligible for an RVD grant.

(in progress)

Goldsearch Ltd (RVD Grant: A$80,000) has drilled the first of two diamond holes to 198m on targets in their Long Ridge Project. The total drilling is expected to reach 550m. Technical difficulties led to suspension of drilling in late April. Drilling is expected to re-commence in mid-October/November, 2010.

Granite Power Pty Ltd (RVD Grant: A$32,500) is planning a 400m hole to investigate basal heatflow for potential Engineered Geothermal System (EGS) resources in GEP 11. It is anticipated that drilling will commence in November, 2010. For more information contact

David Gallus Project Manager Rediscover Victoria Drilling Department of Primary Industries Telephone: 03 9658 4536 Email: [email protected]

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DISCOVERY JOURNAL OCTOBER 2010

Minotaur Exploration Ltd

Minotaur on the hunt for new minerals in Victoria Successful South Australian minerals explorer Minotaur Exploration Ltd has joined the hunt for new base metals discoveries in Victoria. Best known for its discovery of the big Prominent Hill copper/gold deposit in SA’s far north (now owned by Melbourne-based OZ Minerals Ltd), Minotaur was the successful applicant for the Rochester Tender Application Area (RTAA). The award was announced by Energy and Resources Minister Peter Batchelor at the Victoria Resources Above: Drilling at Cowra. Paydirt Conference. Minotaur plans an extensive investigation of the area for VHMSThe RTAA covers 479 square kilometres in central Victoria, centred style mineralisation, including priority work around the new target, on the town of Rochester, about 200 kilometres north of Melbourne. and along more than 20 kilometres of strike extent of the volcanic belt It stretches between Rochester in the north and Colbinabbin in the under cover. south, and between Elmore in the west and Stanhope in the east. The company’s “This area has a strong planned work history in successful gold Minotaur is an active explorer. program will mining and this tender is Before its move in to Victoria, it had include ground an exciting step towards geophysical active programs in South Australia, the discovery of further surveys, soil Queensland, NSW and Nova Scotia. deposits, which could drive sampling and job creation and investment It is best known for the discovery drill testing of in the region,” Mr Batchelor of the Prominent Hill copper/gold conductive said. targets. deposit in 2001. The RTAA covers a The company major portion of the said that along Heathcote greenstone belt, with another a geophysically distinctive Above: Portable XRF at Cowra. application (Dookie) over similar greenstones north-west of band of volcanic rocks and Shepparton, the award of the Rochester RTAA “marks a significant sediments in central Victoria that host copper, lead, zinc and silver entry by Minotaur Exploration in to Victoria and this is expected to be occurrences indicative of a style of mineralisation known as Volcanic supplemented with additional opportunities as these are identified.” Hosted Massive Sulphide (VHMS). Minotaur is an active explorer. Before its move in to Victoria, it had Remote sensing work as part of the Department of Primary active programs in South Australia, Queensland, NSW and Nova Industries’ “Gold Undercover” initiative identified a significant bedrock Scotia. It is best known for the discovery of the Prominent Hill copper/ anomaly on the southern portion of the Heathcote greenstone belt, gold deposit in 2001. south of Rochester. OZ Minerals acquired the project in 2005 and spent more than The remote sensing work involved a helicopter-borne Versatile Time $1.1 billion to bring it into production. Prominent Hill is 650 kilometres Domain Electromagnetic (VTEM) survey along a number of traverses north-west of Adelaide and 130 kilometres south-east of the opal coincident with deep seismic reflection profiles north of the Stawell, mining town of Coober Pedy. Ballarat and Bendigo goldfields. Minotaur told the stock exchange that a “significant” conductive FOR MORE INFORMATION: bedrock anomaly is present in the VTEM data, closely correlated with Andrew Woskett Managing Director Minotaur Exploration Ltd Heathcote greenstone belt volcanics. Telephone: 08 8366 6000 “This conductive feature has been confirmed by a preliminary Email: [email protected] ground electromagnetic (EM) survey and remains untested,” Website:www.minotaurexploration.com.au Minotaur said. 9

Iluka Resources

Iluka Resources to reap the benefits of Western Victoria Leading mineral sands producer Iluka Resources is poised to reap the benefits of its heavy investment in switching its production base from ageing Western Australian operations to Victoria’s Murray Basin and South Australia’s Eucla Basin. Completion of the investment program comes as Iluka forecasts that mineral sands demand will continue to recover from the depressed levels of the global financial crisis. Steve Wickham, recently appointed General Manager, Eastern and Western Operations for Iluka, told the Resources Victoria Conference that Iluka’s view was that industry characteristics are moving in favour of high quality and reliable mineral sand suppliers.

Above: Kulwin mobile mining unit.

Previously responsible for Iluka’s WA operations, Mr Wickham now also has responsibility for Iluka’s operations in the Murray Basin and the Jacinth-Ambrosia project in the Eucla Basin. He has recently relocated to Iluka’s Adelaide office as it offers a more central location for access to the Victorian and South Australian operations. Iluka’s Victorian operations, along with Jacinth/Ambrosia, now contribute 80-90 per cent of Iluka’s production of the highest value products in the mineral sands mix - zircon and rutile.

The Murray Basin’s status as a core component of Iluka’s operations and global supply chain has been cemented in recent times with the completion by Iluka of its Murray Basin Stage 2 expansion.

The $240 million expansion involved the development of the Kulwin mine, 28km east of Ouyen. Kulwin is the first of Iluka’s northern deposits in the Murray Basin to be developed, with its heavy mineral concentrates (HMC) sent to Iluka’s mineral separation plant (MSP) at Hamilton for further processing. Future developments in the northern part of the Murray Basin will involve the WRP cluster of deposits (Woornack, Rownack and Pirro), located 20 kilometres south east of Ouyen. The Kulwin HMC feed supplements that available from Iluka’s Douglas operations, in the southern part of the Murray Basin and 90km north of Hamilton. Mr Wickham said that Kulwin has now met nameplate capacity. The Kulwin operations access the first of several long strand-like deposits found in the northern part of Victoria and across the border in New South Wales. The equipment on site, including the mining unit plant, is designed to be relocated along the orebody as it is progressively mined. Other equipment on site, including the pre-concentrator and wet concentrator plant is modular in design, allowing Iluka to disassemble and relocate it to future ore deposits in the area. The company operates a drive-in-drive out operation at Kulwin, with a large proportion of the workforce drawn from the local area. The Kulwin deposit itself is 12 kilometres in length, has an ore width of up to 100 metres and an average depth thickness of 4 metres. Mining is planned to occur at Kulwin to the end of 2011 before relocation to the WRP deposits. Above: Kulwin Mine. Heavy mineral concentrate produced at Kulwin is sent by truck in B-doubles 360 kilometres to the Hamilton MSP. Iluka is also drawing zircon rich feed source from a satellite mining operation, Echo, located closer to Douglas. The Douglas mining operations, 90 kilometres from Hamilton, have been mined since late 2006. The Hamilton MSP was upgraded as part of the total project expenditure to expand capacity to handle the additional feed source from the northern deposits. The MSP has a throughput of 80 tonnes of HMC per hour or approximately 700,000 tonnes annually. Final product is shipped from Portland, with some container material also sent to Melbourne for export. The Murray Basin is a long life, rutile-dominated province, with a strong associated zircon production stream, especially from the southern deposits. Iluka’s current mine plans entail mining and processing operations until at least 2023. Above: Truck loading at Kulwin.

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The Murray Basin is a long life, rutiledominated province, with a strong associated zircon production stream, especially from the southern deposits. Iluka’s current mine plans entail mining and processing operations until at least 2023. The greatly improved outlook for mineral sands forecast by Iluka was reflected in the group’s production report for the June quarter. Production of Iluka’s mineral sands products increased sharply in the June 2010 quarter compared with the preceding March quarter. The initial contributions from Iluka’s two new operations (Jacinth-Ambrosia and Murray Basin Stage 2), and the ramping back up of Virginia production in the United States, allowed Iluka to respond to the demand recovery for all of its mineral sands products. The Murray Basin Stage 2 operation achieved targeted production rates, underpinning higher June 2010 quarter zircon production of 37,900 tonnes, an increase of 58 per cent on the preceding March quarter. FOR MORE INFORMATION:

Dr Robert Porter General Manager Investor Relations Iluka Resources Ltd Telephone: + 61 3 9225 5481 Website: www.iluka.com

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Bendigo Mining Ltd

Bendigo expands with BCD Resources merger Bendigo Mining Ltd is to become a significant mid-tier gold producer through a merger with Melbourne-based BCD Resources NL, owner of the high-grade Tasmania mine at Beaconsfield in Tasmania.

After the merger was announced, Mr Hanson told Discovery that the acquisition of BCD with its Tasmanian focus did not reflect any reduction in Bendigo’s commitment to its Kangaroo Flat mine. He said that if anything, Kangaroo Flat was more suited to being part of a larger portfolio of mines because it could be a fairly “volatile asset” due to the nuggetty nature of its gold. The nuggetty nature means production from year-to-year could swing from a good year to a not-so-good year. For the last couple of years the company has been successful in more or less replacing the gold ounces produced each year by finding new reefs, extending production from known reefs, by finding some remnant ore, or by mining some lower grade material. Mr Hanson said Bendigo Mining “was busy applying what we have learned to the best areas of the Bendigo Goldfield, and we are still committing a significant exploration budget to Kangaroo Flat at the rate of about $4 million a year, so we still see potential. We’re continuing to explore and we’re still learning a lot. It’s a big goldfield and it requires a lot of exploration.” The acquisition of BCD will also deliver the group’s western Victorian copper assets to Bendigo Mining – the Ararat and Stavely projects, the latter being some 40 kilometres west of the Ararat project. The Ararat copper deposit has an inferred resource of 700,000 tonnes grading 2.7 per cent copper, 0.8 grams of gold a tonne and

The merger is due for completion in November and creates a three-mine company under the Bendigo Mining banner with a market capitalisation of more than $160 million. Annual production by the enlarged group was more than 137,000 ounces of gold in the 2010 financial year. The merger brings together Bendigo Mining’s Kangaroo Flat mine, its Henty mine in Tasmania and BCD’s Tasmania mine. Bendigo Mining Managing Director and Chief Executive Officer Rod Hanson said at the July 22 announcement of the merger that it would combine “two companies with highly complementary operational, development and exploration profiles.” “The scale and profile of the merged entity, its strong cashflow and healthy balance sheet will create a significant mid-tier Australian gold producer.”

Mr Hanson said that the “strategic vision” for the merged group was to build a Above: Underground drilling at Henty. profitable mid-tier gold mining business. 9 grams a tonne silver. By spending $1 million on exploration over “We plan to discover, operate and acquire quality four years, BCD was earning a 75 per cent interest in the project. assets to transform the company in to a 500,000 The Stavely project has focused on a number of gold and copper ounce a year producer.” “The merger is an important step towards achieving our vision,” Mr Hanson said. It is intended that the Bendigo board of directors will continue to be led by Peter McCarthy as non-Executive Chairman and that Mr Hanson will remain as Managing Director and Chief Executive Officer. It is a feature of the merged group that it will have a strong balance sheet. At June 30, Bendigo was holding $57 million in cash and BCD about $8 million. BCD’s Chairman Denis Clarke said that the merger made sound strategic sense. “It will facilitate the unlocking of value in the Tasmania mine as well as facilitating aggressive exploration programs at the existing gold operations and exciting exploration projects to enable the combined entity to capitalise on continued strong gold markets,” Dr Clarke said.

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prospects, especially along strike from the Thursdays Gossan supergene copper deposit, which has an inferred resource of 10.6 million tonnes grading 0.45 per cent copper. High grade primary copper mineralisation was also intersected beneath the supergene copper mineralisation of Thursdays Gossan. Mr Hanson said that the copper assets would be held by the merged group, certainly in the shorter term. “It’s in our part of the world and it’s got a gold component to it as well.” Mr Hanson said the merged group would look to advance the projects in the near term. Longer term, it could look to either find a joint venture partner to pick up the pace of work, or possibly spin the assets off into a new company.

For more information contact

Rod Hanson Managing Director, Bendigo Mining Ltd Telephone: 03 5447 1834 Email: [email protected] Website: www.bendigomining.com.au

Mining engineer Rod Hanson, Managing Director and Chief Executive Officer of the expanding Bendigo Mining Ltd, is one of Australia’s best known mining executives.

EXECUTIVE PROFILE

Rod Hanson MD and CEO, Bendigo Mining Ltd

If the former Sydney-sider is not being stopped for a chat in the streets of his adopted home base of Bendigo, he is getting pulled up by mining-industry types for a chin-wag on industry matters.

The latter was certainly the case at the Resources Victoria Conference in July, and again in August at Kalgoorlie’s Diggers & Dealers conference where Mr Hanson was on hand to update delegates on Bendigo Mining’s merger with Tasmanian gold producer, BCD Resources NL. The merger with BCD will bring three mines together under the Bendigo Mining banner – Kangaroo Flat (Bendigo), Henty (Tasmania) and the Tasmania mine at Beaconsfield (Tasmania). The deal with BCD is another step in plans by Mr Hanson to establish Bendigo Mining as a profitable midtier gold producer. The company’s stragtegy is to grow annual gold production to 500,000 ounces a year through discovering, operating and acquiring quality assets. As much as he is well-known in the industry, Mr Hanson is also one of the most experienced and well travelled. He now has more than 35 years’ experience in mine development, operations, project evaluation and corporate management roles, mainly in gold and base metals, but with a bit of NSW coal experience thrown in for good measure. Mr Hanson’s earliest involvement in the mining industry was as an underground labourer in the CSA copper/gold mine at Cobar in NSW in 1972. It was not long before he became a mechanical miner “in training”. Then it was off to the west coast of Tasmania as a young mining engineer for a 7-year stint with EZ Company of Australasia. Numerous moves up the ranks lead Mr Hanson to the role of Underground Manager at the Rosebery base and precious metals mine. Subsequent roles included project evaluation and development with the

diversified resources group Elders Resources NZFP, and General Manager Operations for the multi-mine gold producer Plutonic Resources. While Elders Resources NZFP had overseas production and exploration interests (Papua New Guinea and New Zealand), it was Mr Hanson’s position as General Manager of the Gold Ridge mine in the Solomon Islands with Ross Mining/ Delta Gold and later General Manager for Sino Gold at the Jianchaling Mine in Shaanxi Province, China, that gave him the international experience and outlook he was seeking. Mr Hanson’s time in the Solomons (1999-2001) was certainly an experience. Based in Honiara and responsible for the management of the 120,000 ouncea-year Gold Ridge mine on the island of Guadalcanal, Mr Hanson had to contend with the escalation of political violence and lawlessness at the mine and in Honiara. In June 2000 operations at Gold Ridge were suspended and all expatriate employees were evacuated. That meant a desk job for Mr Hanson in Sydney and the task – successfully achieved – of extracting a $70 million insurance settlement from the project’s political risk insurer. By November 2002 Mr Hanson found himself in China as resident manager at Sino Gold’s Jianchaling mine, considered something of a showpiece in the burgeoning Chinese gold industry. He told Discovery the move occured as he “had heard a lot about China and wanted to see what it was like.’’ He stayed for two years as the resident mine manager at Jianchaling. The mine was a high grade, narrowvein underground operation producing about 80,000 ounces of gold. The workforce numbered about 400, of which about 390 were Chinese nationals and the balance expatriates. Mr Hanson found it all a fascinating experience. But the work regime of six weeks on site, 2 weeks off, on a fly-in, flyout roster became too grueling, and the decision was made to come “home”.

He joined Bendigo Mining as Chief Operating Officer in January 2005, the year before the new process plant was commissioned. When senior management changes were made in January 2007 in response to the grade estimation issues in the mine leading to gold production shortfalls, Mr Hanson was appointed to the position of managing director and CEO. His task was to lead Bendigo Mining’s new strategy, one which involved production being deferred so the focus could be on exploration/development to build reserves in more productive areas of the goldfield. Kangaroo Flat was returned to production in 2008 as a profitable operation and has posted steady production for the last two years (36,927 ounces in the 2009 financial year and 36,649 ounces in the 2010 financial year). Like any of the other mines and exotic locations that Mr Hanson has worked, Bendigo is not without its challenges. But operating an underground mine in an urban environment has its benefits too. ‘’Obviously there are particular challenges working in an area of high population density, but generally the positives such as a motivated and highly-skilled workforce and a supportive regulatory environment more than compensate,’’ Mr Hanson said. For more information contact

Rod Hanson Managing Director Bendigo Mining Ltd Telephone: 03 5447 1834 Email: [email protected] Website: www.bendigomining.com.au

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Right: Underground truck exiting the Ellesmere Portal at Fosterville Gold Mine Below: Hand lens and drill core from Northgate’s Stawell operation.

Northgate Minerals Corporation

Northgate keeps pouring Victorian gold Victoria’s biggest gold mine, the Fosterville operation near Bendigo, has become a star performer for Canadian based Northgate Minerals Corporation. The company acquired the mine in early 2008 and has invested heavily in improving its performance. Northgate is now reaping the rewards, with Fosterville achieving record production and an attractive cost base in the June 2010 quarter. During the June quarter a record 218,259 tonnes of ore was mined and the milling rate increased to 205,094 tonnes at a grade of 4.97 grams of gold a tonne, up from 4.54 g/tonne in the previous corresponding period. Gold production in the June quarter at Fosterville was a record 28,476 ounces, about 2,000 ounces higher than the previous record set in the fourth quarter of 2009. The strong showing at Fosterville was reflected in its record cash flow generation for the period of US$14.1 million. The average net cash cost of production for the second quarter of 2010 was US$669 an ounce, which was in line with forecast and slightly lower than the US$679 an ounce recorded in the previous quarter. “Cash costs in the most recent quarter were an excellent achievement, despite the dramatic increase in the Australian dollar relative to the US dollar, which averaged over 16 per cent higher in the most recent quarter,” the company reported. Gold production in the June For (calendar) 2010, quarter at Fosterville was a Fosterville is expected to produce 105,000 ounces record 28,476 ounces, about of gold at a net cash cost 2,000 ounces higher than the of US$690 an ounce, down previous record set in the slightly from the previous estimate as a result of small fourth quarter of 2009. changes in the mine plan for the balance of the year. Northgate’s President and Chief Executive Officer Ken Stowe was not able to report a similar strong showing at Northgate’s other Victorian gold mine at Stawell. He said that Stawell’s performance in the June quarter was impacted upon by challenges presented by “complex geology in the orebody and poor reserve performance.” That necessitated the unplanned processing of marginal grade ore, hitting gold production for the period.

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The underground ore production shortfall necessitated the processing of a substantial quantity of low-grade stockpiled oxide ore in order to keep the mill operating at capacity and resulted in production of 14,832 ounces of gold, compared with 20,066 ounces in the previous corresponding period of last year. The net cash cost of production at Stawell was significantly higher at US$1,069 an ounce of gold, compared with US$608 an ounce in the same period in 2009. For the balance of 2010, Stawell’s cash cost is forecast to be lower at US$745 an ounce of gold. “Issues arising in the second quarter have since been addressed,” Mr Stowe said. “A recovery plan has been implemented to bring production back to its normal run rate of approximately 25,000 ounces a quarter, which includes development in the new GG6 mining zone, with a significantly higher average reserve grade of 6.3 grams of gold a tonne.”

“Also, a program of increased drill information prior to extraction has been implemented, as well as deferred mining in the more challenging extremities of the ore zones. Production for the second half of the year is now forecast to be 44,000 ounces of gold and full year production has been revised to 81,000 ounces,”he said. Exploration continues to be a major focus for Northgate. At Fosterville in the June quarter, four drill rigs completed 15,000 metres of drilling, focusing on resource-to-reserve conversion on three target areas - Harrier Underground North, accessible resource areas within the Harrier Decline and the Phoenix Extension. Also during the quarter, geophysical and geochemical surveys were undertaken in the region surrounding the mine lease to identify drill targets for the second half of the year. At Stawell, two drill rigs completed 3,110 metres of drilling on a number of targets, both on the mine lease and in the general district. Northgate said that the two main mine lease targets currently being tested are the Northgate Gift and Wonga Gift Deeps. “The Northgate Gift is a postulated offset of the Golden Gift deposit below and north of the Golden Gift along the Wildcat Porphyry, a dyke that fills a post mineralisation structure. During the quarter, the hole progressed 1,320 metres and is nearing its target,” Northgate told the Canadian market in early August. It said the Wonga Gift Deeps drilling is targeting a postulated basalt dome that has been confirmed by geophysical surveys. Drilling started at the end of the June quarter. FOR MORE INFORMATION:

Luc Guimond Northgate Minerals Corp Telephone: +61 03 5442 7755 Fax: +61 03 5442 3955

“Cash costs in the most recent quarter were an excellent achievement, despite the dramatic increase in the Australian dollar relative to the US dollar, which averaged over 16 per cent higher in the most recent quarter”

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Castlemaine Goldfields Ltd

Exploration success at Ballarat after Castlemaine acquisition Exploration success has spurred on planning for a resumption of gold production at the Ballarat gold project by its new owner, Castlemaine Goldfields Ltd (CGT). CGT acquired the project from Lihir Gold in May 2010 for the price of $4.5 million, plus a 2.5% royalty on future production, capped at $50 million. Lihir worked for three years on mine development and surface processing facilities in an effort to establish the project as a 250,000 ounce-a-year gold producer. When it became clear it would not be able to achieve the rate as planned, Lihir put the project up for sale. Then Managing Director Gary Scanlan told investors in CGT’s update to the stock exchange in late July that CGT “could not have wished for a more encouraging and exciting first two months at Ballarat.” CGT’s plan is to return the project to production at a targeted annual rate of about 50,000 ounces a year. Its Victorian gold ambitions do not stop there, with CGT tipping that a similar rate of gold production could follow a year later from its namesake Castlemaine goldfield. “Substantial synergies will be gained from combining the Ballarat project with existing Central Victorian projects (Castlemaine, Tarnagulla and Sebastian),” the company said. The company’s exploration/ development plans for the Ballarat project are well funded, with a placement of shares to institutions and sophisticated investors raising $30 million. Ownership of the project was transferred to CGT, occurring on May 7. The underground mine and existing surface facilities – including a 600,000 tonne-a-year processing facility – has been kept on a “care Above: Part of the state of the art gold treatment plant. and maintenance” basis while CGT conducts in-mine exploration to support its gold production resumption plans. A group of 14 direct employees are on site for the ongoing mine, mill and infrastructure maintenance, along with exploration drilling. The number of employees increases to 33 people when contract drilling and other contractors are included. Underpinning the resumption plans is a decision by CGT to target the potential of the northern “compartments” on the Ballarat East 16

DISCOVERY JOURNAL OCTOBER 2010

goldfield in a $3 million exploration program. Mr Scanlan said that it would be at the end of the nine month exploration program that CGT would decide upon recommencing mine development and production. Mr. Gary Scanlan said “The initial results for the drilling program, expected to take 9 months, have already vindicated the acquisition of the Ballarat mine. This drilling has now confirmed the northern extension of the Mako Fault Zone within Llanberris and most excitingly has indicated the target zone in the adjacent Britannia geological compartment may not have been displaced to a greater depth as first postulated. The exploration program is ahead of schedule at this time, work on identifying surplus assets is well advanced with discussions with a number of parties indicating that significant cash will be realised from sales and the transition of ownership has occurred without incident or surprise”. “It was this northern area containing the Llanberris and Britannia compartments which were the focus of initial modern mining efforts in the late 1980’s-early 1990’s and again renewed since 2003.” Mr Scanlan said in the July update to the stock exchange that the previous mining development at Ballarat saw both decline mine drives stop just within the northern compartments and less than 200 metres from the discovered mineralisation.

Assets and infrastructure to be acquired by CGT include 18km of underground development, a 600,000 tonnes-a-year processing plant, the Golden Point ventilation shaft and extensive surface buildings, plant and equipment.

Above: Gold bearing drill core from CGT’s drilling in the Llanberris compartment.

Above: Ariel view of the surface operations, with the tails storage facility and wetlands in the foreground. The mine offices, gold treatment plant and the workshops are in the background.

He also said that previous resource estimates for Ballarat East recognised that the main target area lies to the north of the field where CGT is now exploring. “The surface projections of these targets correspond to the largest and most prolific original alluvial workings, and lie beneath the highest concentration of historic underground gold production.” Since acquiring the Ballarat project, CGT has conducted diamond drilling from underground to test the northern zones. A total of 19 holes for 4,755 metres were completed by the end of June. CGT said the drilling indicated that the Lower Llanberris Mako Fault Zone (MFZ) mineralisation, first intersected in 1985 and further defined by Lihir in 2008/09, has an additional 100 metres of northern strike. Gold production is expected to initially come from the MFZ within the Llanberris compartment and could be followed by the adjacent Britannia compartment, which has only been lightly drilled from surface positions in the past. Drilling by CGT has found gold mineralisation in the Britannia compartment associated with west-dipping faults and quartz veining interpreted to be the displaced northern extensions of the MFZ. CGT’s original mainstay project at Castlemaine has not suffered as a result of the Ballarat acquisition. A new round of drilling is underway and aims to increase the existing 686,000 ounce Inferred gold resource with other discoveries CGT’s main focus is to drill the

Chewton/Wattle Gully (CWG), Quartz Hill and Cappers targets along the central corridor of the goldfield. It said that success at shallow targets at South Wattle Gully within CWG could result in access from within the Wattle Gully mining lease. “Development would be via an initial 700 metre exploration decline into the South Wattle Gully mineralisation which could be readily drilled as the development progressed to depth,” the company said. It continued that indications to date are that such a discovery scenario would yield the earliest gold production and cash flow from within the Castlemaine goldfield. “It is also then the fastest and most cost effective path to mining the deeper Chewton resource.” Drilling has also resumed at Tarnagulla, where historic high-grade production yielded 700,000 ounces of gold. Studies by CGT have revealed the potential for the broader region to contain at least 82 gold-bearing quartz reefs. FOR MORE INFORMATION:

Matthew Gill Managing Director & CEO Castlemaine Goldfields Ltd Telephone: 03 5327 2555 Email: [email protected] Website: www.cgt.net.au

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Right: Roughnecks on the drill floor adding drill pipe.

3D Oil Ltd

3D Oil Ltd aims at Bass Strait production Melbourne-based 3D Oil Ltd is continuing its march towards becoming a Bass Strait oil producer from its West Seahorse oilfield in VIC/P57. The company, which joined the Australian Securities Exchange (ASX) in May 2007 after its earlier formation in July 2003, views the development of West Seahorse as a stepping stone to bigger things in Bass Strait (Gippsland Basin), and its Bass Basin permit offshore Tasmania. In an update on its plans lodged with the ASX, 3D said that engineering and design work on the planned West Seahorse development by energy and resource engineering firm WorleyParsons Ltd was expected be completed by the fourth quarter of 2010. The basic development concept is a sub-sea completion in shallow water, tied back to an oil stabilisation plant onshore (a distance of about 14 kilometres) using flexible tubing. Completion of that work comes as 3D continues a formal process of seeking a partner for its VIC/P57 permit.

Above: Roughnecks make a connection.

The company said it was continuing to “progress discussions with a number of overseas companies interested in both the development of the West Seahorse oilfield and the highly prospective exploration potential of VIC/P57.” But 3D said it was not going to rush the process. “The company will continue to take the time necessary to ensure a strategic alignment with the right partner, and to do so on appropriate terms that reflect the underlying value of the asset and which allows the company to grow and provide a positive result for existing shareholders.” Managing Director of 3D Noel Newell told Discovery that the company was excited about its plan to become the next offshore oil producer in Victoria. He said that after completion of the engineering and design study in the fourth quarter of 2010, 3D hoped to be in a position to make a final investment decision on the development. A capital cost of about $US80 million is expected.

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“I believe that once we get this project underway what will follow will be a number of tie-ins to other oil developments. We plan to go from strength to strength in Bass Strait.” “I see West Seahorse as very much a starter project for the company,” Mr Newell continued. “We’ve assembled a team that knows Bass Strait really well. Arguably we know Bass Strait as well as anyone,” Mr Newell told Discovery. He himself has 30 years’ experience in Bass Strait, starting with a stint with BHP Billiton’s petroleum unit in 1981. 3D is the operator and 100 per cent holder of VIC/P57 and T/41P in the Bass Basin. 3D reports that the West Seahorse field has proved and probable reserves of 5.3 million barrels, with an additional 3.4 million barrels in the contingent resource category. The permit is also home to the Sea Lion prospect, 7 kilometres to the north-west. An oil discovery at the prospect could potentially be developed as a “tie-in” to the West Seahorse development. 3D has said that Sea Lion has a “prospective resource” best estimate of 20 million barrels. The permit also contains the potentially bigger Felix prospect, currently rated as a “prospective resource” of up to 100 million barrels of recoverable oil. In the August update, 3D said that quotations for flexible steel pipeline and installation options, including the shore crossing, had been obtained. “The company has met with Federal (NOPSA) and Victorian (DPI) authorities to clarify the approval requirements for the project and pipelines,” it said. On the exploration front in VIC/P57, 3D is also stepping up activity after what it said was a comprehensive review of the Sea Lion and Felix prospects, and further assessment of the other prospects and leads in the permit. It has tendered for state-of-the-art reprocessing of seismic data from the 750 square kilometre “Northern Fields” program. The reprocessing started in August and has the aim of improving the “imaging of prospective deeper levels, enabling much better definition of additional drilling targets, including those beneath currently identified prospects.” “The benefits of such reprocessing along the Gippsland Basin’s northern margin have most recently been demonstrated by the success of the South East Remora-1 well earlier this year,” 3D said. The South East Remora discovery was made by the Esso/BHP Billiton partnership in Bass Strait. The oil and gas find is close to their existing Marlin A platform.

3D is the operator and 100 per cent holder of VIC/P57 in the Gippsland basin, and T/41P in the Bass Basin. 3D reports that the West Seahorse field has proved and probable reserves of 5.3 million barrels, with an additional 3.4 million barrels in the contingent resource category.

In the Bass Basin offshore Tasmania, 3D has also re-tendered the 250 square kilometre Dalrymple seismic survey, which was meant to have been undertaken last summer. “The expected acquisition period is late December to early 2011, to coincide with the preferred weather window and avoidance of marine mammal migration periods,” 3D said. Just as the Esso/BHP Billiton South East Remora discovery buoyed oil explorers in adjacent permits in Bass Strait, the recent Trefoil (gas) and Rockhopper (oil/gas) finds by an Origin Energy-led consortium

last year and early in 2010 in the Bass Basin have encouraged other Bass Basin explorers. 3D has identified at least 15 leads to date in T41-P. Some are said to have similarities (amplitude anomalies) to the Trefoil find. FOR MORE INFORMATION:

Noel Newell Managing Director, 3D Oil Ltd Telephone: +61 3 9650 9866 Fax: +61 3 9639 1960 Email: [email protected]

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Below: Lakes Oil’s Petroelum Retention Lease 2, onshore Gippsland Basin, Victoria, showing the location of Lakes’ main tight gas fields and prospect areas in relation to the Bass Strait oil (green) and gas (red) pipelines that cross the lease as well as other infrastructure elements, such as the Alinta Gas Hub near Longford. Below right: Wombat Field Operations: coiled tubing unit workover operations post-refracture stimulation treatment of tight gas zone in Wombat 2, June 2009.

Beach Energy / Lakes Oil

Beach Energy farms into Lakes Oil onshore project

Lakes Oil NL’s “tight” gas discoveries in the onshore Gippsland Basin near Sale in Victoria have attracted a $50 million deal from the Adelaide-based oil gas producer, Beach Energy. The deal with Beach follows more than 20 years of drilling and testing by Lakes in the onshore portion of the basin, better known for the oil and gas fields of the ExxonMobil/BHP Billiton partnership in the offshore waters. Lakes has spent more than $50 million to show that there is oil and gas to be discovered in the onshore part of the basin. Executive Chairman Rob Annells has always believed that Lakes would commercialise a discovery in the Wombat field (in PRL 2) and now with the help of Beach, the location could produce enough gas to be sent to Melbourne or nearby power stations through existing pipelines. Under the agreement, Beach can earn up to 50 per cent of PRL 2 under a two stage entry with a total cost to Beach of $50 million. As operator, Beach will fund the $10 million cost of conducting flow and fracture tests (Stage 1) in the previously drilled Wombat 4 and Boundary Creek wells. Beach’s Stage 2 expenditure of $40 million will secure the company a half interest in PRL 2, which matches Lakes investment of more than $50 million in the area. Unlike the free flowing wells found in offshore reservoirs, the reservoirs in the onshore part of the Gippsland Basin need stimulation by expensive “fraccing”, where special gas or fluids are forced down the well at extremely high pressures to release trapped gas or oil from various levels. “Beach’s interest has reinforced our commitment in using tight gas technology in Victoria,” Mr Annells said.

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The artificial stimulation of oil and gas wells has long been practised in the United States. Technology breakthroughs there have unlocked huge oil and gas reservoirs previously thought to be uneconomic to produce from compared with hydrocarbons produced from so-called conventional or free-flowing wells. “The commerciality of our Wombat field is based on results from all our wells within the Strzelecki group that have encountered gas in multiple zones,” Mr Annells said. “We see this project as part of a much wider play, which could result in a new Victorian energy asset which no doubt encouraged Beach to join with us in this exciting new onshore resource.” Beach Managing Director Reg Nelson said that the agreement with Lakes gave Beach the opportunity to test unconventional reservoir petroleum production and development technology developed in the United States in recent years. He said that Beach already holds a major land position in unconventional gas (including shale gas) in South Australia’s onshore Cooper Basin. “We expect that Beach’s activities in shale and other unconventional opportunities in Australia will step up significantly, with an accelerated program now being considered for the Cooper Basin and this significant program in the onshore Gippsland, close to markets in Victoria,” Mr Nelson said. He noted that the Gippsland Basin is one of Australia’s most prolific hydrocarbon basins, with more than 4 billion barrels of oil and 7 trillion cubic feet of gas produced since 1969 – all of it from the offshore portion, more commonly referred to as the Bass Strait oil and gas fields. “Whilst all of production has occurred from offshore oil and gas fields, the presence of hydrocarbons onshore, notably PRL2, is proven and awaiting the development and application of the correct technology to commercialise these resources,” Mr Nelson said. The Wombat field in PRL 2 has been the subject of a number of tests by Lakes in the past. Lakes reports that short-term tests on the Wombat-1, 2 and 3 wells have realised combined flows of up to two million standard cubic feet a day from zones within the 1,000 metre thick Strzelecki Group formation. Following the drilling of Wombat 4, the Wombat field has been independently estimated by Gaffney, Cline and Associates to contain a 2C contingent gas resource (“Development Pending/Uncertain”) of 329 BCF and a P50 contingent resource of gas-initially-inplace resource of 787 BCF. The Trifon and Boundary Creek gas discoveries, also in PRL2, are said to ‘confirm the high prospectivity of this onshore area.’ Lakes told the stock exchange on 10 August 2010 that the agreement with Beach is now unconditional and that it is looking forward to the upcoming operations in PRL 2. The expected forward work program involves plans to re-enter the Wombat 4 and Boundary Creek 2 wells and fracture stimulate several of the best zones later this year, pending equipment availability and receipt of the necessary approvals. FOR MORE INFORMATION:

Rob Annells Executive Chairman, Lakes Oil NL Telephone: 03 9629 1566 Email: [email protected] Website: www.lakesoil.com.au

Providence Gold and Minerals

New Gold discovery under cover north of Bendigo A new gold discovery has been made under farm paddocks to the north of Bendigo, hidden by geologically young sediments which mask the prospective rocks. Drilling by Providence Gold and Minerals recently Above: Magnified gold particles - the first visible gold from Mitiamo! intersected 6 metres @ 29g/t Au with visible gold present in much of the drill core. Providence Managing Director Tom Burrowes recently presented the discovery at a DPI Technical Forum. The discovery is located west of Mitiamo, with drilling sponsored under the Victorian Government’s Rediscover Victoria drill subsidy program. In a follow up to the 2009 scout drill program, which revealed anomalous gold to 3m @ 0.3 gAu/t, drill hole FE 328 intersected 6m @ 29g Au/t - comprised of 3m @ 44g Au/t and 3m @ 14 g Au/t. Further down that same hole was 3m @ 8.5 g/t Au. The gold is coarse, likely of the Bendigo style and Above: Afternoon drilling in easy access conditions contained within quartz in “The landowners in the district are the basement Ordovician “Whilst it showing wonderful hospitality and rocks, under 100 metres of sand/ is early days, interest in what we plan will create clay cover. Visible gold, up to 2mm the support of an exciting new industry for this diameter, has been recovered from anomalous gold drill chips. part of regional Victoria,” and arsenic More positive news was obtained values in a dozen 700 metres south east where drill other drill holes Above: Flat grazing land overlying concealed gold hole FE 380 returned 3m @ 8g/t adds to the bearing Ordovician rocks at the cover/basement interface. developing picture. We face an exciting challenge ahead to identify Several gold hits are recorded at the interface, implying potential for and characterise what I am happy to declare is an emerging new alluvial gold, for which central Victoria is famous. goldfield in this exceptional gold endowed part of the earth’s crust.” Mr Burrowes said, “As part of Gold Undercover, the Victoria “The landowners in the district are showing wonderful hospitality Government study suggests a gold endowment of some 32,000,000 and interest in what we plan will create an exciting new industry for ounces under cover in the Bendigo Zone. I have never doubted this this part of regional Victoria,” he continued. – we simply had to await the technology improvements and conduct Very sparse drilling to date shows anomalous gold under cover enough drilling with our expert aircore drillers.” 9km north of the high grade hits and some 3km to the west. “The Victorian Government initiatives – of “Gold Undercover” Gold Undercover is just exactly that! with its more detailed gravity imaging allowing clarity in structural For more information contact interpretation, followed by the Rediscover Victoria Drill subsidy Tom Burrowes programs, enabled a critical alignment to occur. Having an expert Managing Director aircore driller is equally as important.” Providence Gold and Minerals Pty. Ltd Geologist Geoff Turner of Exploration Management Services Telephone: 03 9646 1784 provided vital interpretative skills in designing the program which led to these high grade hits. 21

2010 SUMMARY

Minister urges shift to lower carbon future Minister for Energy & Resources Peter Batchelor told the Victorian Resources Conference that shifting to a lower emissions energy future was a complex task that would require the support of the community, government and industry.

Above: Minister Peter Batchelor opens Resources Victoria Conference 2010.

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To ensure a smooth transition to the more sustainable future, the Victorian Government recently released Victoria’s Energy Future, which provides a roadmap to the challenges Victoria faces, as well as the options available for change. “It also outlines the Government’s support for new technologies that are needed to meet the low emissions challenge – paving the way for industry to capture future opportunities,” Mr Batchelor said. “One of the ways we are encouraging this is by mapping the abundance of energy sources we have across the state, to give investors a clear picture of where opportunities lie,” he said.

REVIEW OF PRESENTER AND TECHNICAL FORUM PRESENTATIONS DURING THE 2ND RESOURCES VICTORIA CONFERENCE, JULY 2010

Mr Batchelor also told the industry delegates that no matter what the outcome of the heated discussions between the mining industry and the Federal Government on a new mining tax, the Brumby Government “has always recognised the important role that the industry plays in our State and in particular in regional Victoria.”

Mr Batchelor told the delegates that Victoria’s emerging geothermal energy potential was an exciting example of the new sorts of technology that the State had at its disposal to build a sustainable energy future. He said that new capital investment of more than $30 billion was expected to be made in new energy resources based projects over the coming decades. “This enormous capital program includes major new gas projects, new non-power coal based developments and major new power generation facilities.”

“Increasing energy demand is driving growth and our efforts to tackle climate change are also driving new uses for some resources – including our significant brown coal resources,” he continued. “Already investigations are underway into converting coal into fertiliser, liquid fuels, and other carbon based products.” “That’s why we have worked hard to assist and stimulate investment so that the industry can continue to grow,” he said. He noted that capital expenditure in Victoria on earth resources projects over the past three years was more than $5.4 billion, principally from petroleum coal and mineral sands projects.

From top: Xxxxxx

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ExxonMobil

Jabiru Metals

Craig Haymes Production Operations Manager, ExxonMobil Australia

Gary Comb Managing Director

Safe workplace the key

Stockman base metals project

The importance of maintaining a safe workplace was the key theme in an address to the conference by ExxonMobil Australia’s Production Operations Manager Craig Haymes. “We do not believe that anything less than zero injuries is an acceptable vision for a “safe” workplace. Our target is Nobody Gets Hurt,” Mr Haymes told delegates. But he also admitted that the company - operator of the Bass Strait oil and gas joint venture with BHP Billiton - encounters “quite a degree of scepticism when people initially learn of this target.” “There is a common belief that accidents happen and that being safe means trying to minimise serious injuries. Overcoming this attitude is one of the challenges we face,” Mr Haymes said. “Our aim is to convince every individual working on our sites that it is possible to operate a workplace where accidents do not happen.” “In order to operate without injuries, we adopt the approach that safety MUST come first in all we do. We approach safety with the same stringent discipline we would for any other engineering project,” Mr Haymes continued. He said that the oil and gas exploration and production industry deals with volatile products, often under very high temperatures and pressures. It also tends to operate in some remote and challenging environments, such as Bass Strait. “These conditions present a degree of risk and can be very unforgiving if mistakes occur,” Mr Haymes said. But he also said that the industry’s disciplined and systematic approach to identifying, reducing and managing the risks was paying off. “Despite these risks, according to total recordable Injury rates per hours worked, our industry is one of the safest in Australia – safer even than the hospitality sector, and almost as safe as retail trade,” Mr Haymes said. FOR MORE INFORMATION:

Craig Haymes Production Operations Manager ExxonMobil Australia Telephone: 03 9270 3333 Website: www.exxonmobil.com.au

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Jabiru Metals Ltd has been busy working towards delivering Victoria a base metals mine at its Stockman base metals project in north-eastern Victoria. Managing Director Gary Comb told the conference that the project was being advanced on three parallel levels: expanding the resource base through exploration, embarking on the approvals process and undertaking feasibility work. Better known for its success in Western Australia with its Jaguar/Bentley base metals project, Jabiru won a tender for the exploration licence covering the Stockman project in May 2007 by committing to spend $19.6 million over the first five years of ownership. Annual expenditure by Jabiru since it won the tender has been running at the required annual rate of about $4 million. Stockman is 12 kilometres to the east of the township of Benambra. The project has two known deposits, the partly mined Wilga deposit and the nearby Currawong deposit to the south which has not previously been mined. Wilga’s September 2009 resource estimate was 3.3 million tonnes grading 2.4 per cent copper, 0.4 per cent lead, 4.9 per cent zinc and 30 grams of silver a tonne. Currawong’s September 2009 estimate was 9.2 million tonnes grading 2 per cent copper, 0.8 per cent lead, 4.2 per cent zinc and 41 grams of silver a tonne, as well as 1.1 g/tonne gold. Like Jabiru’s WA operations, the Stockman deposits are of the volcanogenic massive sulphide (VMS) style. Elsewhere where VMS deposits occur, they tend to do so in clusters, making the exploration hunt at Stockman a priority ahead of a commitment being made to a development. FOR MORE INFORMATION CONTACT:

Gary Comb Managing Director Jabiru Metals Ltd Telephone: +61 8 9426 8300 Email: [email protected] Website: www.jabirumetals.com.au

010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference

Iluka Resources

Bass Strait Oil Company

Steve Wickham General Manager, Eastern and Western Operations

Andrew Adams Managing Director

Murray Basin mineral sands

Bass Strait Oil looks into the Windermere

The Murray Basin mineral sands operations of Iluka Resources are central to the process of transforming IIuka Resources Ltd’s base production from Western Australia to Victoria and South Australia.

A joint venture led by Bass Strait Oil Company Ltd is preparing to undertake a modern-day assessment of the 1987 Windermere-1 oil discovery in PEP 167 in western Victoria’s onshore Otway Basin.

Steve Wickham, recently appointed General Manager, Eastern and Western Operations for Iluka, told the Resources Victoria Conference that the Murray Basin Stage 2 project involved additional expenditure of $240 million to open up the first of the mineral sands deposits in the northern part of the basin. The Victorian operations, along with Iluka’s Jacinth/Ambrosia project in South Australia, will, in the future, contribute 80 - 90 per cent of Iluka’s production of the highest value products in the mineral sands mix - zircon and rutile. The first of the northern deposits developed in the Murray Basin is Kulwin, 25 kilometres from Ouyen. Mr Wickham said that Kulwin has met nameplate capacity and is being ramped up to full production. Kulwin will supply heavy mineral concentrate (HMC) feed to Iluka’s mineral separation plant (MSP) at Hamilton, giving the MSP two supply sources. The Kulwin operations will access the first of several long strand-like deposits found in the northern part of Victoria and across the border in New South Wales. The Douglas mining operations, 90 kilometres from Hamilton, have been mined since late 2006 and constitute an additional feed source, with the HMC blended on site at Hamilton before processing. Mr Wickham said that mineral sands demand has recovered from the depressed levels of the global financial crisis.

Processing of new 3D seismic survey data over the original discovery is due to lead to a potential decision on drilling a new well on the find later this year. Managing Director Andrew Adams told the Resources Victoria Conference that the seismic survey also took in several surrounding leads that would make natural follow-up targets in the event of success. “If oil production is established at Windermere, we anticipate a relatively short development schedule and low capital and operating costs, leading to robust project economics,” Mr Adams said. “Potential resource estimates will be based on the new 3D seismic, with the project offering substantial value upside for Bass.” In late 2009 the company struck a deal with Interra Resources Ltd on PEP 167. Under the agreement, Interra undertook to fund 100 per cent of seismic survey costs, up to a value of $1.75 million. Funding beyond that level was on a 50:50 basis. Interra is a Singapore-based exploration and production company with onshore production in Indonesia and Myanmar. Interra’s entry in to the PEP 167 joint venture is the first time it has become involved in oil exploration in Australia. When it was drilled in 1987, the Windermere 1 well recovered 32 barrels of oil during testing. Mr Adams told the conference that technical reviews suggest that there is good potential for commercial flow rates to be achieved at the find. He said it was possible that drilling could occur in 2011, pending results from the seismic survey.

FOR MORE INFORMATION:

Robert Porter General Manager Investor Relations Telephone: + 61 3 9225 5481 Website: www.iluka.com

FOR MORE INFORMATION:

Andrew Adams Managing Director Bass Strait Oil Company Ltd Telephone: +61 3 9927 3000 Email: [email protected] Website: www.bassoil.com.au

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Greenearth Energy

Heron Resources

Mark Miller Managing Director

Mathew Longworth Managing Director

Geothermal plant aims at 3 year start up

Heron aims at gold output from the A1

Greenearth Energy Ltd is working towards having its demonstration plant for its Geelong Geothermal Power Project (GGPP) connected to Victoria’s electricity grid within two to three years – subject to a capital raising and a successful Stage 1 “proof of concept.”

Heron Resources Ltd is working towards returning the historic A1 gold mine at Gaffneys Creek in eastern Victoria to production.

Addressing the Resources Victoria Conference, Greenearth Managing Director Mark Miller said the start-up would be subject to funding availability and success in Stage 1. He that Greenearth was also considering seeking a strategic partner for the GGPP. The project is located within geothermal exploration permit GEP10 to the north-west of the Victorian township of Anglesea in the Wensleydale-Gherang area. It has attracted A$32 million in Federal and Victorian Government grants. “One of the biggest advantages of the GGPP is that the project is close to existing power grid infrastructure and proximate heavy industry – not hundreds of kilometres from the grid and potential offtakers,” Mr Miller said. “The greater Geelong region represents one of the most carbon exposed regions in Australia and we see the potential for this area to also evolve as a renewable energy technology hub, not just geothermal,” he told the conference. Greenearth is negotiating contracts with the Victorian Government under its award in late 2009 of $25 million as part of the Government’s Energy Technology Innovation Strategy (ETIS) program for large scale, pre-commercial, sustainable energy demonstration projects. The Victorian Government awarded the GGPP $5 million for the Stage 1 “Proof of Resource” and, upon successful completion, a further $20 million for the Stage 2, 12MW geothermal energy demonstration plant. Greenearth reports that the GGPP has an inferred geothermal resource of 17,000 petajoules. Mr Miller said Greenearth was in capital raising mode to fund the $31 million Stage 1 and the $73 million Stage 2 schedules. He said that the Stage 1 proof of concept will take approximately two years to complete. The 12MW Stage 2 demonstration plant has the potential to power up to 8,000 homes with zero emissions, base load renewable energy. FOR MORE INFORMATION:

Mark Miller Managing Director Greenearth Energy Ltd Telephone: 03 9620 7299 Email: [email protected] Website: www.greenearthenergy.com.au

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Managing Director of the Perth-based Heron, Mathew Longworth, told the Resources Victoria Conference that a number of studies aimed at underpinning a mine re-opening decision were underway. “Realistically, any mine start would be around 18 months or so away, but our current modelling is focusing on a throughput of about 100,000 tonnes of underground ore production using a combination of hand-held air leg mining and mechanised mining techniques,” Mr Longworth told delegates. “On work to date, we would see any renaissance for the A1 mine having a mine life of around eight years, depending on further exploration success – and we are continuing to drill as A1 offers a genuine near-term production opportunity,” he said. At a planned mining rate of 100,000 tonnes-a-year, the A1 would produce between 25,000 and 30,000 ounces of gold annually. Heron’s target mineralisation is a bulk tonnage gold stockworks system, hosted by a “dyke.” Heron holds a two year option to acquire the A1 which boasts historical production of 450,000 ounces of gold from intermittent production between 1861 and up until when the most recent operations ceased in 1992. Heron is in strong financial position to pursue its gold production ambitions at the A1. The group was holding more than $60 million cash at end of March thanks to the takeover of Polaris Metals NL, in which it had a stake. On site, Heron has completed site infrastructure, and decline development and exploration drilling and sampling is ongoing. About 26 people are employed at the nearby Woods Point which Mr Longworth says could increase to 50 if mining goes ahead. FOR MORE INFORMATION:

Mathew Longworth Managing Director Heron Resources Ltd Telephone: 08 9215 4444 Website: www.heronresources.com.au

010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference

3D-GEO

Bendigo Mining

Jessie Davey Principal Geologist, 3D-GEOthermal

Rod Hanson Managing Director

3D Geothermal helps develop industry

Aggressive growth ambitions

The relative youthfulness of Victoria’s geothermal industry can be turned to its advantage, according to research and consulting group 3D-GEO.

Bendigo Mining Managing Director Rod Hanson told delegates at the Resources Victoria Conference that the group has aggressive growth ambitions.

Dr Jessie Davey, a consultant with 3D-GEO’s geothermal unit, told the Resources Victoria Conference that there was no doubting Victoria’s geothermal potential. But the emerging Victorian industry needs to learn from mistakes that have occurred where the industry is more mature, and move forward. “The definition of insanity is repeating the same process and expecting a different outcome,” Dr Davey warned. 3D-GEO’s geologists and geophysicists consult to the petroleum, carbon capture and storage and geothermal industries. While the consultancy is based in Melbourne, it has been involved in projects around the world. Its geothermal unit, 3DGEOthermal, has been active in the fast-growing sector for five years. Dr Davey also called on the broader industry to get on with job of converting Australia’s geothermal potential in to a reality. “It’s all well and good to get out there and preach about geothermal potential,” she said. But with Australia yet to have a producing project, it was “time to stop talking about the potential and actually do something with it,” Dr Davey said after her presentation. In the presentation, Dr Davey said that geothermal explorers should be alert to techniques used in the petroleum exploration industry (such as seismic data interpretation), as well as being prepared to draw on the temperature data base logged in previously drilled petroleum exploration wells. She said that a failure to draw on that type of information had been a shortcoming of the industry elsewhere in Australia. “Whilst there is not a lot of information in Australia about areas of geothermal interest specifically, there has been a lot of work that relates to it. And that is generally not taken in to account when people undertake exploration,” Dr Davey explained. She also warned delegates about the potential for errors to be made when it came to the extrapolation of temperatures across prospective basins, particularly in the use of regional temperature maps to define resources in areas of geothermal interest.

He said that the ambition to become a 500,000 ounce-a-year gold producer was backed by a multi-pronged strategy. The cornerstone of the strategy was to maximise the performance of the group’s existing mines – the Kangaroo Flat operation at Bendigo and the Henty gold mine in Tasmania. Since his address to the conference, Bendigo Mining has reached agreement for a friendly merger with BCD Resources, the Melbourne-based owner of the Tasmania mine at Beaconsfield in Tasmania. Production from the three mines in the June financial year was 137,600 ounces. The other elements of Bendigo Mining’s growth strategy are to step up its exploration efforts, either on a direct basis or in partnerships, and to develop, acquire and invest in other projects. At the Kangaroo Flat mine, production in the June financial year was 36,649 ounces. That was down modestly on 36,927 ounces in the 2009 financial year – serving to confirm the steady state performance of the operation since production resumed in 2008. Output in the final June quarter was 9,454 ounces at a cash cost of A$875 an ounce. The group’s average realised gold price in the quarter was A$1,353 an ounce, ensuring a healthy operating margin. Mr Hanson said $4 million annually was being spent on exploration for new gold-bearing reefs at Kangaroo Flat. He said further discoveries are required to support mine plans beyond the 2011 financial year. FOR MORE INFORMATION:

Rod Hanson Managing Director Bendigo Mining Ltd Telephone: 03 5447 1834 Email: [email protected] Website: www.bendigomining.com.au

FOR MORE INFORATION:

Jessie Davey Principal Geologist 3D-GEOthermal Telephone: +61 (0) 3 9024 2766 Website: www.3d-geo.com

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TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria

Dr Peter Tingate Senior Basin Analyst

Mark A. McLean Geophysicist

Understanding the plumbing of the Gippsland Basin: new results on migration and charge history

Three-dimensional modelling in the Melbourne Zone, southeast Australia

GeoScience Victoria and CSIRO have been working together to test the containment potential of the Gippsland Basin to ensure that CO2 can be safely stored in the subsurface. The combined research program is enabling GSV to delineate the CO2 storage potential while simultaneously contributing to further defining the petroleum prospectivity of the basin.

Rediscover Victoria 3D brought the future of Victorian geology to the big screen with a flythrough of its newly developed three-dimensional Melbourne Zone model. One of the key drivers behind this type of geology simulation is to build our understanding of the plumbing systems that control regional mineralisation styles, and ultimately provide a foundation for the state’s base and precious metal resources.

This research has been able to predict the migration pathways along which petroleum moved in the subsurface by focusing on the hydrology and geochemistry of the Gippsland Basin together with CO2 migration simulations. Recently acquired petroleum systems data tested the potential of individual structures or traps along these migration pathways, and indicated that early oil charge occurred in many structures within the basin that are now filled with gas. The latest results from CSIRO indicate that structures in areas such as the Golden Beach gas field, have had complex hydrocarbon migration and charge histories and that in some cases, hydrocarbons have migrated through the regional seal. The research confirms local measurements of the top seal potential and ensures that future efforts can concentrate on the most prospective areas for CO2 containment.

The bulk of the Melbourne Zone is modelled from the Earth’s surface down to the Moho, in an effort to further our knowledge of the structure and processes of the entire crust. GSV’s modellers set the Melbourne Zone’s boundaries with the Governor Fault in the east and north, and the Mount William Fault in the west. The main rock units in the zone are a succession of Ordovician to Early Devonian marine turbidites and shales. One of the more striking features of the model is a series of chevron style, doubly plunging folds which have an E-W interference pattern. These patterns represent the current architecture of this region which comprises of turbidites that have been truncated by reverse faults. The Rediscover Victoria 3D team assembled the geometry using contemporary surface geology with airborne magnetics and land based gravity data. Once the subsurface structures were established, the team were able to build a realistic 1:250,000 scale 3D model of the Melbourne Zone. The Melbourne Zone model, and ultimately our understanding, will be continually developed as more data becomes available. The next step is to populate the model with properties such as density and magnetic susceptibility to further refine the geological boundaries.

FOR MORE INFORMATION CONTACT:

Dr Peter Tingate Department of Primary Industries Telephone: 03 9658 4548 Email: [email protected]

FOR MORE INFORMATION CONTACT:

Mark A. McLean Geophysicist GeoScience Victoria Telephone: 03 9658 4584 Email: [email protected] Website: www.rvd.dpi.vic.gov.au

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esources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM

David Taylor Geologist

Ross A. Cayley Senior Geologist

New Victorian Heat Flow Map to support informed investment

New solution to the Ordovician-Silurian geometry puzzle

GeoScience Victoria has just produced the first State heat flow map to boost understanding of Victoria’s geothermal resource potential. Geothermal energy has the potential to provide sustainable low emission baseload energy.

GSV has developed a new model that solves the longstanding geometry puzzle and extraordinary width of the Lachlan Fold Belt (LFB). The solution also simplifies the Late Cambrian–Early Silurian configuration of the LFB. New aeromagnetic data shows that the Baragwanath Transform – once thought to be the key structure in the tectonic jigsaw – does not occur in western New South Wales.

The heat flow map comprises 103 data points to give insight into ‘where it’s hot’ across much of Victoria. Heat flow estimates are derived by analysing precision temperature logs and rock thermal conductivity data from open boreholes several hundred metres deep. The map shows much higher than anticipated heat flows across much of Victoria when compared with global averages for rocks of these ages (~65 mW/m2). These heat flow values (100 mW/m2+) are as high as those seen in the South Australian hot rock province, and indicate a previously unrecognised geothermal fairway in the northwest of the State under the Murray basin. Good geothermal resources generally occur where high heat flow intersects areas of good thermal insulation to create high temperatures at shallow depth. Although heat flow is generally average across the Otway and Gippsland basins (55-75 mW/ m2), the insulation provided by thick basin fill in these areas may still allow commercially viable temperatures to develop. Ongoing assessment of the thermal insulation (conductivity) properties of rock units across Victoria will assist in refining areas of high geothermal prospectivity, with contribution from this new heat flow map.

The new model links mid- to Late Silurian oroclinal folding with dextral strike-slip faults such as the Kancoona-Kiewa Fault. It also points to a 90° clockwise rotation of the Tabberabbera Zone to form the middle limb of a large Z-shaped oroclinal fold. This fresh approach fits the new aeromagnetic data and explains the complex palaeogeography. Evidence strongly suggests that until the Early Devonian, the Tabberabbera Zone was not contiguous with the Melbourne Zone. This solution does not need to invoke multiple subduction zones to explain reversals in vergence and observed complex distribution of sedimentary packages. Instead these features are readily explained by oroclinal folding. Contemporary models for the LFB argued for either (1) large-scale horizontal movement along the mid- to Late Silurian Baragwanath Transform or, (2) several coeval subduction zones of opposing polarity, to explain the complex geometry, sedimentary relationships as well as the Belt’s width and magmatic history. The new model consigns the Baragwanath Transform to history and greatly simplifies the geometry of subduction zones active in the early development of the LFB.

FOR MORE INFORMATION CONTACT:

David Taylor Geologist GeoScience Victoria Telephone: 03 9658 4575 Email: [email protected]

FOR MORE INFORMATION CONTACT:

Ross Cayley Senior Geologist GeoScience Victoria Telephone: 03 9658 4517 Email: [email protected]

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TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria

David Higgins Senior Geospatial Information Officer, GeoScience Victoria

Seamless geological data for Melbourne Zone A major rework of geological maps and datasets of Victoria is underway to create a seamless two-dimensional surface geological map of the entire state, which will assist the discovery of major new mineral deposits. The 1:250,000 scale geology for the Melbourne Zone is now seamless, to join previously released data in the Bendigo and western zones of Victoria. This task was a concerted effort, with over 2,000 field sites and many hours of office interpretation involved in reconciling the geology with past geological mapping. The existing 1:50,000 scale geology has also been made seamless, within the area where existing mapping was available. This dataset is being used by the Rediscover Victoria team to help construct the 3D models of the state’s geology. The project will create a seamless geology layer across the state of Victoria at 1:50,000 and 1:250,000 scales. The work involves: • Matching geological boundaries and polygons across preexisting map edges; • Checking the accuracy of older maps against radiometrics, topography, aeromagnetics, aerial photos, boreholes and field observations; • Updating stratigraphic names and reconciling name changes across map edges; and • Assigning many geological attributes to geological units, boundaries and faults. New geological data is available on DVD, with seamless geology layers at 1:50,000 and 1:250,000 scale available in ESRI and Mapinfo formats, registered geophysical images, geological interpretation of 1:1,000,000 and 1:500,000 geophysics, mineral occurrence and production data and exploration geochemical data. In addition, two reports detailing the updated stratigraphy and name changes for the Bendigo Zone (GSV Report 129) and western zones (GSV Report 130) have been released. These also contain numerous photos of critical outcrops. The seamless 1:250,000 geology data is now available on the

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DISCOVERY JOURNAL OCTOBER 2010

The new geological data is available as a DVD, with seamless geology layers at 1:50,000 and 1:250,000 scale available in ESRI and Mapinfo formats, registered geophysical images, geological interpretation of 1:1,000,000 and 1:500,000 geophysics, mineral occurrence and production data and exploration geochemical data.

Above: Part of the newly released Melbourne Zone 1:250 000 geological interpretation

OneGeology and Auscope web portals and will soon be available via DPI’s newly updated Geovic web mapping application. FOR MORE INFORMATION CONTACT:

David Higgins Senior Geospatial Information Officer GeoScience Victoria Telephone: +61 3 9658 4506 Email: [email protected]

esources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM

Timothy J Rawling 3D Modelling Manager

Rediscover Victoria 3D, new exploration tools and new insights for Victoria GeoScience Victoria is striving to provide the resources industry with the next generation of exploration tools as part of the Rediscover Victoria 3D project.

Rediscover Victoria’s 3D modelling has proved an extremely powerful tool for GeoScience Victoria. Coupled with flexible, targeted investigation, it has allowed geologists to identify, check and reinterpret geometric inconsistencies that may not be apparent to the mapping teams during the course of a more orthodox mapping campaign.

On the top shelf of the toolbox is GSV’s sophisticated, crustal scale 3D geological model of Victoria. To date, few regional 3D geological models have been built that incorporate detailed basement and overlying basin geometries, so it’s no wonder that adding extra dimensions to a problem occasionally generates surprises. One such surprise led to the modelling of a number of newly-interpreted undercover granites beneath the Murray Basin. One of the challenges in geophysics datasets has been to differentiate magnetic and nonmagnetic granites, particularly undercover. Modelling and geophysical inversion of granites as part of GSV’s 3D model building process for western Victoria has proved extremely useful in refining our understanding of the depths and sub-surface geometries (shapes) of these granites. It is now possible in some cases to identify separate phases within these granites. Another unexpected outcome was the likely presence of a folded and faulted Cambrian sequence approximately 5–8 km thick under the Ordovician Castlemaine Group in the Bendigo Zone. Bendigo was the first area to be modelled, due largely to its high prospectivity, Above: Western Victoria granite model showing the distribution of granites interpreted from magnetic data (light pink) and gravity data (red). and availability of high-quality data, including investigation, it has allowed geologists to identify, check and reinterpret a deep seismic profile. However, once carefully assembled into a geometric inconsistencies that may not be apparent to the mapping 3D form, it was clear that contemporary 2D datasets were unable to teams during the course of a more orthodox mapping campaign. explain a number of spatial inconsistencies. Further analysis indicates that this Cambrian package must gradually wedge out towards the east ahead of an imbricate system of south-west dipping thrust faults, interpreted to account for most of the thickening in the hanging wall of the Mount William Fault. These inferred faults are probably Tabberabberan in age. Rediscover Victoria’s 3D modelling has proved an extremely powerful tool for GeoScience Victoria. Coupled with flexible, targeted

FOR MORE INFORMATION CONTACT:

Tim Rawling 3D Modelling Manager GeoScience Victoria Telephone: 03 9658 4584 Email: [email protected] Website: www.rvd.dpi.vic.gov.au

31

Mineral Exploration Tenements New applications and grants during May – August 2010

TENEMENT UPDATE

Exploration Licences Granted Tenement

Primary Owner

Exploration Licence Applications Application

Granted

Tenement

Primary Owner

Application Date

EL4666

Rio Tinto Exploration Pty Ltd

30/5/02

27/5/10

EL5283

Rocky Mining Pty Ltd

14/5/10

EL4735

Rio Tinto Exploration Pty Ltd

14/1/03

27/5/10

EL5284

Victorian Iron Pty Ltd

17/5/10

EL4870

Rio Tinto Exploration Pty Ltd

22/3/05

27/5/10

EL5285

Victorian Iron Pty Ltd

17/5/10

EL4872

Rio Tinto Exploration Pty Ltd

22/3/05

27/5/10

EL5286

Victorian Iron Pty Ltd

17/5/10

EL4874

Rio Tinto Exploration Pty Ltd

22/3/05

27/5/10

EL5287

Victorian Iron Pty Ltd

17/5/10

EL5241

Golden Deeps Ltd

15/9/09

5/8/10

EL5288

Victorian Iron Pty Ltd

17/5/10

EL5244

Metals Australia Ltd

18/9/09

7/7/10

EL5289

Victorian Iron Pty Ltd

17/5/10

EL5245

Metals Australia Ltd

18/9/09

7/7/10

EL5290

Victorian Iron Pty Ltd

17/5/10

EL5253

Minotaur Operations Pty Ltd

12/11/09

7/7/10

EL5292

GBM Resources Ltd

1/6/10

EL5255

Donald Mineral Sands Pty Ltd

9/12/09

12/5/10

EL5293

GBM Resources Ltd

1/6/10

EL5261

Sovereign Gold NL

10/12/09

27/5/10

EL5294

Mantle Mining Corporation Ltd

EL5262

Sovereign Gold NL

10/12/09

12/5/10

EL5296

Minotaur Operations Pty Ltd

13/7/10

EL5263

Donald Mineral Sands Pty Ltd

10/12/09

12/5/10

EL5297

Mecrus Support Services Pty Ltd

23/7/10

EL5267

Matrix Gold Ltd

27/1/10

27/5/10

EL5298

Mecrus Support Services Pty Ltd

23/7/10

EL5268

BTB Mining Pty Ltd

12/2/10

20/8/10

EL5299

Mecrus Support Services Pty Ltd

23/7/10

EL5270

Clean Global Energy Ltd

4/3/10

9/6/10

EL5300

Mt Wills Gold Mines Pty Ltd

27/7/10

EL5273

Triton Gold (Project B) Pty Ltd

23/3/10

7/7/10

EL5301

Petra Minerals Pty Ltd

EL5276

ECI International Pty Ltd

31/3/10

7/7/10

EL5302

Tawson Pty Ltd

19/8/10

2/6/10

6/8/10

EL5278

Providence Gold & Minerals Pty Ltd

9/4/10

25/6/10

EL5303

Iron Mountain Mining Ltd

20/8/10

EL5279

ABX5 Pty Ltd

9/4/10

9/6/10

EL5304

Iron Mountain Mining Ltd

20/8/10

EL5291

Austpac Resources NL

1/6/10

5/8/10

EL5305

Iron Mountain Mining Ltd

20/8/10

EL5306

Iron Mountain Mining Ltd

20/8/10

EL5307

Iron Mountain Mining Ltd

20/8/10

EL5308

Wassylko, Stanislaw

27/8/10

EL5309

Donald Mineral Sands Pty Ltd

27/8/10

Mildura

^

Swan Hill

^ EL5306 EL5262

EL5308

EL5255

EL5278

EL5268

EL5291

Wodonga ^

EL5295

EL5253 Shepparton EL5296 EL5290 EL5289^

EL5261 EL5263 Horsham EL5304 ^ EL5307

EL5305

EL5303

EL5299

EL5302

EL5309

EL5245

EL5298

EL5267

EL5284 ^ Bendigo EL5288 EL5287

EL5301

EL5297

EL5292 Melbourne

^ Geelong

EL4874 EL5279

^

EL4870

EL4666

^ Bairnsdale EL4872 EL4735

^ Traralgon

Warrnambool

^

EL5276 EL5270

Applications

EL5300

EL5283

EL5273 Ballarat ^ EL5294

EL5244

^

^

EL5286

EL5285

EL5293

Hamilton

Portland

Wangaratta EL5241 ^

N

Granted Current

Complete mineral, petroleum and extractive tenement details are available from www.dpi.vic.gov.au/minpet/geovic 32

DISCOVERY JOURNAL OCTOBER 2010

Earth Resources Development Division

Resources Sector Websites Academic

Michael Hollitt

GeoScience Victoria Paul McDonald

Executive Director

Acting Director, GeoScience Victoria

T: (613) 9658 4405 [email protected]

T: (613) 9658 4531 [email protected]

Resources Investment and Facilitation

Manager, Energy Geoscience

Sean Rooney

Acting Director, Resources, Investment and Facilitation

T: (613) 9658 4739 [email protected] Geoff Collins

Petroleum Development Manager

T: (613) 9658 4406 [email protected] Kathy Friday

Manager, Minerals Development

T: (613) 9658 4407 [email protected] Renee Kjar

Acting Manager, Coal Development

T: (613) 9658 4403 [email protected] Gordon Chakaodza

Senior Resources Development Officer

T: (613) 9658 4401 [email protected]

Dr. Geoff O’Brien

T: (613) 9658 4537 geoff.o’[email protected] Peter O’Shea

Manager, Minerals Geoscience

T: (613) 9658 4525 peter.o’[email protected] Linda Bibby

Manager, Geoscience Information

T: (613) 9658 4511 [email protected] David Gallus

Manager, Strategic Geoscience

T: (613) 9658 4536 [email protected] Adele Seymon

Acting Manager, Resources

T: (613) 9658 4523 [email protected]

Clean Coal Victoria Charlie Speirs

Director, Clean Coal Victoria

T: (613) 5160 9000 [email protected]

Earth Resources Policy and Legislation Danny Suster

Acting Manager, Earth Resources Policy and Legislation

T: (613) 9658 4804 [email protected]

David Boothroyd

Director, Earth Resources Regulation

Manager, Earth Resources Policy

T: (613) 9658 4451 [email protected]

T: (613) 9658 4439 [email protected]

John Mitas

Andrew Radojkovic

Manager, Minerals and Extractive Operations

Manager Sustainable Development

T: (613) 9658 4422 [email protected]

T: (613) 9658 4433 [email protected]

Terry McKinley

Manager Petroleum and Geothermal Operations

T: (613) 9658 4414 [email protected]

RMIT Department of Civil and Chemical Engineering www.rmit.edu.au/eng/civil-chem 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 Resources www.minerals.nt.gov.au Department of Mines and Petroleum, Western Australia www.dmp.wa.gov.au Department of Resources, Energy and Tourism www.ret.gov.au Department of Mines and Energy, Queensland www.dme.qld.gov.au Department of Primary Industries, New South Wales www.minerals.nsw.gov.au Department of Primary Industries, Victoria www.dpi.vic.gov.au Department of Environment, Water, Heritage and the Arts www.environment.gov.au Geoscience Australia www.ga.gov.au

Earth Resources Regulation Doug Sceney

Monash Earth Sciences www.earth.monash.edu.au

CONTACTS

Executive

Earth Resources Business Centre Kim Ricketts

Tenements Registration Officer

T: (613) 9658 4454 [email protected]

Earth Resources Information Centre

Information Development

16th Floor, 1 Spring Street GPO Box 4440 Melbourne Victoria Australia 3001 T: (613) 9658 4440 F: (613) 9658 4760 [email protected]

Manager, Information Development

Boris Rudoy

Mineral Resources Tasmania www.mrt.tas.gov.au Primary Industries and Resources, South Australia www.pir.sa.gov.au

Peak Bodies Australian Petroleum Production and Exploration Association www.appea.com.au Cement Concrete and Aggregrates Australia www.concrete.net.au Construction Material Processors Association www.cmpavic.asn.au Minerals Council of Australia (Vic) www.minerals.org.au/victoria

T: (613) 9658 4571 [email protected]

Prospectors and Miners Association of Victoria www.pmav.org.au

Corporate Communications

Victorian Mining Wardens Court www.miningwarden.vic.gov.au

Alistair King

Communication Manager, Earth Resources

T: (613) 9208 3928 [email protected]

33

DEPARTMENT OF PRIMARY INDUSTRIES

Image: Base of Tertiary surface, red colours are shallow, purple colours are deep.

Source 3D-GEO Pty Ltd.

Storage VicGCS: Victorian VictorianGeological GeologicalCarbon Carbon Storage

Regional geological frameworks informed basinmanagement management Regional geological frameworks for for informed basin Otway Basin

• 2010 petroleum acreage release: two onshore and one offshore blocks available • Basin-scale assessment with Geoscience Australia • Major Fluid Inclusion Stratigraphy (FIS) study released with FIT • Regional structural evaluation • Deep aquifer assessment

Bass Basin

Gippsland Basin

• Basin-scale geological carbon storage assessment available

• 2010 petroleum acreage release: five onshore blocks available four

• 3D generation-migration model available

• New 8000 line km 2D seismic survey complete, co-funded by DRET

Rediscover Victoria 3D

• Building on VicGCS to produce a 3D model of Victoria’s basins at a scale of 1:250,000 or better • Several regional-scale models available now • For more information visit www.3dvictoria.dpi.vic.gov.au

• Basin-scale 3D geological framework and seismic volume • Top seal architecture and characteristics defined • Pre-stress state hydrodynamic model and database • New charge history study released with CSIRO • 3D Building a unified model fluid flow modelaquifer released with DSE • 3D fluid flow model released

To access copies of the reports or for more information: • Contact Dr Geoff O’Brien, Manager Energy, GeoScience Victoria Phone: +61 3 9658 4537 Email: Geoff.O’[email protected] • Visit www.vicgcs.dpi.vic.gov.au