INSIDE THIS ISSUE Perseverance at Fosterville

DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL SEPTEMBER 2003

Bendigo ‘Aqua Gold’

Vic Hub project links market

Otway gas moving ahead

Loy Yang dredges depths A treasure of a museum in the heart of Melbourne Experience award winning permanent exhibitions: • Making Melbourne • Built on Gold • Growing up in the Old Treasury View temporary exhibitions: Salt of the Earth • 8 August - 7 September A Wangaratta Gallery travelling photographic exhibition by Stephen Routledge depicting images of the Murray Darling Basin. A Tiara for Maxima • 12 September - 9 November Major international exhibition featuring 21 contemporary tiaras produced by designers from the Netherlands. Organised by the Museum of Contemporary Art, ’s - Hertogenbosch, the Netherlands.

Group tour packages: $5 introductory tour, $8 executive tour, $11 grand tour (includes refreshments). Bus parking and disabled access available.

Gold Treasury Museum 9am - 5pm weekdays, 10am - 4pm weekends Old Treasury Building, Spring Street, Melbourne Group Tour Bookings, Telephone: (03) 9651 2233 DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL SEPTEMBER 2003 contents

OTWAY GAS PROJECT MOVING AHEAD 2 Victoria’s natural gas supply security set to improve MAKING BROWN COAL GREEN AND CLEAN 4 Greenhouse challenge to cut brown coal emissions LOY YANG MINE DREDGES THE DEPTHS 7 Victoria’s biggest coal mine reaches its design final pit depth ESSENTIAL PETROLEUM SHOWS THE WAY IN OTWAY BASIN 8 Who said exploring for petroleum in a National Park was impossible? PERSEVERANCE OPTS FOR BUGS AT FOSTERVILLE 12 Bacterial leaching of sulphide ore to support gold production NEW PHASE IN MURRAY BASIN BOOM 13 Victoria’s mineral sands projects enter exciting development phase BENDIGO TO PROCESS WATER INTO ‘AQUA GOLD’ 16 Waste water from the Bendigo gold mine and Coliban Water authority to be recycled cover picture VIC HUB PROJECT LINKS VICTORIA TO THE MARKET 18 Natural gas trading across the state is now a reality Interest in Victoria’s fabulous gold mining potential is reaching new heights with new companies and new technologies being MINING TO START AT BENDIGO – FIRST EVER GOLD RESERVE 20 utilised in the search for new gold deposits. The first gold pour is set for March 2005 as the sleeping gold giant starts to stir The prospects for major gold discoveries and the development of large new gold mines has risen dramatically, despite the MPI TO MAINTAIN STAWELL JOINT VENTURE 21 strengthening of the Australian dollar, which had the potential Groundwater flows provide the base for new gold exploration in the Stawell corridor to dampen enthusiasm. NEW RUSH INTO VICTORIAN GOLD EXPLORATION 23 Bendigo Mining is set to produce its first gold in early 2005. It’s not a boom yet, but Victoria’s rich gold potential is starting Perseverance is close to declaring its Fosterville project a com- to attract serious attention mercial proposition and new life has been breathed into the Ballarat goldfield. RANGE RIVER GOLD JOINS THE VICTORIAN RUSH 24 Other companies are moving into Victoria in a big way and the New companies are now regularly joining the Victorian state is attracting an ever growing share of Australia’s explo- exploration scene seeking to emulate the success of the past ration budget. PIPELINES, PROSPECTORS AND MINE REHABILITATION 26 The future could not look better. A series of new guidelines and regulations covering important parts of Victoria’s active resources sector have been released BALLARAT – THE RETURN OF A WORLD CLASS GOLD FIELD 28 Ballarat Goldfields has resumed exploration work under a new management with high expectations for success DISCLAIMER: This publication may be of assistance to you, but the State of Victoria and its officers do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or regular features other consequence which may arise from you relying on any information in this publication.

MINISTERS FOREWORD 2 Minerals and Petroleum Victoria acknowledges contributions made by Minister Theo Theophanous gives his views private enterprise. Acceptance of these contributions, however, does not endorse or imply endorsement by the Department of Natural Resources NEWS BRIEFS 10 and Environment of any product or service offered by the contributors. A roundup of Victorian industry news All photographs, maps, charts, tables and written information in this VICTORIA’S MINERAL, OIL AND GAS RESOURCES 14 publication are copyright under the Copyright Act and may not be Victoria’s mineral, oil and gas resources reproduced by any process whatsoever without the written permission of the Department of Natural Resources and Environment. MINERAL LICENCES 22 Who’s doing what with mineral exploration licences © Minerals and Petroleum Victoria 2003.

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

1 MINISTERS FOREWORD Power for the future Otway gas pro

When people think of future power sources for Victoria, they tend to overlook our single biggest asset – coal. Victoria has vast lignite reserves. It is our largest mineral resource and provides 85% of our electricity. Since the 1920’s it has provided secure and reliable electricity to our homes and has made Victoria the manufacturing capital of Australia. But coal’s role is not just historic – with the right technologies such as coal drying, gasification and sequestration, it can play a huge role in our future as well. Victorian lignite is a clean coal, containing low levels of pol- lutants such as sulphur, heavy metals and ash. However, being a young coal it contains a high proportion of water and pro- WHEN PEOPLE duces just over half of the State’s CO2 greenhouse emissions.

THINK OF FUTURE The Bracks Labor Government is committed to realising our economic potential, and to maximising social and environ- POWER SOURCES mental benefits. Our challenge is to retain our competitive FOR VICTORIA, advantage of cheap, reliable and secure electricity while also reducing greenhouse emissions – and we are actively address- THEY TEND TO ing this challenge. OVERLOOK OUR I fully support the development of renewable energy sources Victoria’s natural gas supply will be dramatically enhanced by the such as wind power and solar power and recognise that these SINGLE BIGGEST will continue to provide an increasing amount of electricity in evelopment of the Thylacine and an expanding electricity market. The degree to which these Geographe gas fields off the ASSET – COAL. forms of energy production will expand depends to some Otway coast of Western extent on the Federal Government maintaining and expanding Victoria, which will add a major the Mandatory Renewable Energy Target (MRET) in line with D new dimension to Victoria’s natural gas Victoria’s submission to the MRET review. supply and security, is moving ahead with Natural gas can also generate electricity but our reserves are limited. the completion of the environmental assessment process. Our massive amounts of coal will therefore be our preferred fuel to generate electricity for Under Victorian legislation the Minister for many years, provided its greenhouse emissions can be significantly reduced. Planning determined that the Victorian sector At the Carbon Sequestration Leadership Forum meeting in the US during June this year, I met of the Thylacine/Geographe offshore develop- with a number of countries to sign an agreement to cooperate in the development of geo- ment would be subject to an Environment sequestration as a means of reducing greenhouse emissions. Geo-sequestration is the perma- Effects Statement under the Environment nent storage of CO2 underground. That is, after the coal or gas has been extracted from the Effects Act 1978. ground, it is burnt, the CO2 is captured and then pumped back deeply underground. The Victorian and Federal Governments agreed While there are many challenges to this technology there is a willingness across the world to to a coordinated assessment process that will work together to develop it, and Victoria will play a major role in this task. include the joint development of guidelines for the preparation of a consolidated environmental Victoria is also prominent in a number of other technologies to reduce greenhouse emissions. assessment document. The Victorian CRC for Clean Power from Lignite, is a world leader in drying coal, so that the coal we burn produces less CO2. The CRC is also working with the USA and research bod- Other regulatory approvals for the billion ies in other countries to develop technologies to increase the efficiency of coal burning. dollar project will be required under the state and commonwealth Petroleum (Submerged Added to this is the new Victorian Centre for Energy and Greenhouse Technologies, which Lands) Acts. the Government has established to support the development and commercialisation of technologies aimed at reducing CO2 emissions. Woodside Energy Ltd., operator and major equity holder in the offshore gas development, Reducing greenhouse emissions from our coal is a tough challenge, but one the Bracks is developing the Geographe and Thylacine Government is facing head on. The opportunity of low or even zero emission coal fired power gas fields on behalf of joint venture partici- stations producing reliable and secure energy is a goal worth pursuing for all Victorians. pants Origin Energy Resources Limited, I look forward to working with our industry, research bodies and the community in answering CalEnergy Gas (Australia) Limited and this challenge. Benaris International N.V. Hon Theo Theophanous The development, known as the Otway Gas Minister for Energy Industries and Resources Project, will extract natural gas and liquid 2 SPECIAL FEATURE

The base case option involves a wellhead plat- form at Thylacine and a subsea development at ject moving ahead Geographe tied back via a sub-sea pipeline. A 70 kilometre offshore raw gas pipeline running from Thylacine via Geographe to the Victorian coastline, taking natural gas and reservoir liquids to shore would form the second major component of the project. An 11.5 kilometre onshore pipeline running underground from the shore crossing will take raw gas to the processing plant. The final component is the onshore gas processing plant to be located on Waarre Road, Waarre, approximately 6 kilometres north-east of Port Campbell near the current TXU gas storage facility at IONA. Based on currently known reserves the two fields will have a combined producing life of about 30 years with the first gas expected from the development planned for mid-2006. The combined Geographe and Thylacine fields are estimated to contain recoverable reserves of about 800 billion cubic feet of dry gas and 9 million barrels of condensate. Dry gas reserves for both fields are 0.55 Tcf at the Proved Level and 0.85 Tcf at the Probable Level. Condensate Reserves are 7.0 MMbbl at the Proved Level and 10.7 MMbbl at the Probable Level. development of the Otway Gas Project, operated by Woodside Petroleum. At the planned production rates of 60 petajoules of gas a year the two fields are estimated to con- hydrocarbons from the gas fields and transfer and Biodiversity Conservation Act 1999. tain sufficient natural gas to provide more than these by subsea and underground pipeline to 10 per cent of current annual demand in south- A number of ‘start up’ approvals have also been an onshore gas processing plant. eastern Australia for at least 10 years and could sought along with the EES/EIS assessment. be in production for much longer. Demand for gas in south-eastern Australia is These include an amendment to the predicted to grow strongly over the next 15 Once the exhibition of all EES/EIS documents Corangamite Planning Scheme for the gas pro- is complete in late August, the Department of years and the development of the Geographe cessing plant under the Planning and Sustainability and Environment will then and Thylacine gas fields will make a significant Environment Act 1987 (Victoria), a works arrange a panel hearing to consider all submis- contribution towards meeting this demand, approval for the construction and operation of sions lodged which will then make recommen- although other gas fields in the Otway Basin the gas processing plant under the dations to the Victorian Minister for Planning region, both onshore and offshore will also add Environment Protection Act 1970 (Victoria); concerning the proposed development. to the region’s gas supply in coming years. and a permit to own and use a gas pipeline The gas from the fields will provide new under the Pipelines Act 1967 (Victoria). The Minister will consider these recommenda- tions in her assessment of the project. sources of supply for the SE Australia and The Geographe and Thylacine gas fields are increase Victoria’s gas supply security. located in separate Commonwealth petroleum The proposed development will also be Development of these gas fields will also exploration permits VIC/P43 and T/30P and lie assessed by Environment Australia and the enhance competition and security of supply in 55 and 70 kilometres south of Port Campbell in Commonwealth Minister for the Environment the energy market in both Victoria and South water depths of 85 and 100 metres. and Heritage. Australia. The fields were discovered in May 2001 when FOR MORE INFORMATION CONTACT: The developing networks of gas transmission an exploration well on the Thylacine field pipelines, now linking Victoria’s gas grid with found a 281 metre thick gas column. Annalisa Grubisa Tasmania, New South Wales, and shortly That discovery was followed by the Thylacine 2 South Australia, is also opening whole new appraisal well which found a 230 metre gas col- External Affairs Coordinator gas trading markets and opportunities for umn in August 2001 which later produced a 28 Otway Gas Project delivering gas to new regions and towns. million cubic feet a day flow rate during testing. Woodside Energy Ltd The Environment Effects Statement (EES)/ In May/June 2001 the Geographe 1 explo- 250 St Georges Terrace Environmental Impact Statement (EIS) will ration well discovered gas in a 240 metre gross Perth WA 6000 assess the potential environmental impact of gas column. the project and specify measures to minimise Tel: (08) 9348 4922 adverse impacts. The key elements of the development will be Fax: (08) 9220 1948 finalised following further assessments but The joint EES/EIS addresses both the will comprise either subsea production wells Toll-free: 1800 678 151 Victorian Environment Effects Act 1978 and or wellhead production platforms at one or Website: www.otway.woodside.com.au the Commonwealth Environmental Protection both gas fields.

3 SPECIAL FEATURE Making brown coal green and clean

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

oal is critical to Victoria’s econo- August is an example of the Governments where he studied the latest greenhouse abate- my, supporting jobs and life style commitment to reducing CO2 levels associated ment technologies. In conjunction with the by providing cheap, secure and with Victorias energy production. CRC for Clean Power from Lignite, he also reliable electricity. However, one explored arrangements with a US based com- C The Government also supports two Co-opera- of Victoria’s biggest policy priorities is its pany to test Victorian coal using new technol- tive Research Centres studying coal drying greenhouse challenge – to reduce green- ogy that may be suited to our future needs. and gasification technologies and also the house emissions and coal produces more geo-sequestration of CO2. In June the Victorian Government issued than one half of Victoria’s emissions. ‘The Greenhouse challenge for energy – Victoria therefore has a challenge to protect and Victoria’s Resources Minister, Theo Driving investment and reducing emissions’ grow its economy while also reducing green- Theophanus, recently visited the US as a lead- discussion paper to encourage further discus- house emissions. While the Government con- ing participant in the inaugural Carbon sion and help develop future government poli- tinues to support the development of renewable Sequestration Leadership Forum (CSLF). This cy in this critical issue for Victoria’s economy energy it recognises that coal will be the major forum brought together leaders from around and the environment. the world to agree to work cooperatively to source of electricity for many years. The Launching ‘The greenhouse challenge for develop this technology. Sequestration is put- Government is therefore supporting research energy’, Mr Theophanus and the Minister for ting the CO2 deeply underground into perma- and development that will lead to low green- Environment, John Thwaites said active house emissions from coal. Victorian coal fields nent storage, in a similar way to the natural community discussion on how to balance the also contain three time as much stored energy as storage of gas and oil. Fourteen countries environmental, social and economic impera- the North West shelf of Australia and we are including the US and EC signed the Charter. tives facing the energy sector was vital. looking at other ways to use this huge resource. The head of the Minerals and Petroleum Mr Theophanous said, “This consultation The Centre for Energy and Greenhouse Division of the Department of Primary paper is the first step towards establishing Technologies, which was launched by the Industries, Dr Richard Aldous, has also recent- Victoria’s very own energy sector emission Government in the Latrobe Valley on Friday 7 ly returned from a tour of several countries reduction scheme.”

4 SPECIAL FEATURE

“Our priority is to provide Victorian con- Policy measures vary widely across Australia Coal is heated and squeezed to break its cellu- sumers with a reliable, affordable and sustain- and internationally while the coverage of lar structure and force the moisture out. able energy supply. To do so we need to give measures ranges from the entire stationary business enough certainty so that we can energy sector to specific energy sources or This technology is being developed with the achieve appropriate new investment in the classes of energy users. aim of being able to provide continuous coal to energy sector.” feed future large power stations. It may also be The measures also include leaving the choice able to be fitted in discrete units to existing The consultation paper is designed to build on of abatement solutions to markets within a power stations. the $100 million Victorian Greenhouse framework of economic incentives (for exam- Strategy released last year which could reduce ple, in emissions trading schemes) to those in The CRC recently operated a test rig produc- greenhouse emissions by up to 8.3 million which governments or government agencies ing continuous dry coal and its one tonne per tonnes a year – the equivalent of taking three- specify mandatory abatement solutions. hour pilot plant is being modified to conduct quarters of all Victorian cars off the road. further testing. An example of effective cooperation between Government and industry to achieve both If the technology can be proven at the one Greenhouse challenge paper growth and greenhouse reduction was the tonne per hour scale, it is proposed to construct recent award of two exploration licences over a 15 tonne per hour pilot plant ($5 million). Victoria has substantial energy resources some of the vast brown coal areas of the (brown coal, gas and wind), but government Latrobe Valley. A third licence is currently still Following the 15 tonne per hour pilot plant a and the community are keen to reduce the being developed. These licences provide limit- commercial 120 tonne per hour plant is pro- greenhouse gas intensity of energy production. ed access to the coal while companies develop posed, subject to the availability of funding The greenhouse challenge for energy paper their projects. They also carry an obligation to ($A20 to $A25 million). achieve low greenhouse emissions that are bet- notes that, “Achieving (this) goal is an impor- ter than current world’s best practice. Studies into coal drying are also being con- tant challenge that requires policy leadership ducted in Germany and the Government and by government and concerted action by indus- the CRC are monitoring that research. try and the community. Abatement methods The discussion paper aims to help develop pol- Research around the world is developing new Coal gasification icy to support the reduction of greenhouse technologies with the aim of achieving zero or emissions from energy supply and use while near zero greenhouse emissions. These may be Coal gasification is a process which converts maintaining a secure, efficient and affordable divided into three areas: coal to a gas (syngas) which can then be used energy supply. in a gas turbine to drive electric generators. • Preparation of the coal before it is burnt, The paper notes that the electricity sector has a particularly drying, This process is more efficient than current key role in meeting the challenge of reducing pulverised fuel boilers and steam turbine • Increasing efficiency of the combustion of Victoria’s greenhouse emissions. This sector combinations. contributes 55 per cent of total emissions, a the coal, particularly gasification, and The heat from the gasification process and the level which has grown by 41 per cent in the • Capturing and storing the CO2, through last decade. geo-sequestration. heat from the gas turbine can also be used to generate steam which can be used in a steam The paper also notes that energy consumption turbine to drive additional generators. is projected to continue to grow strongly in Coal drying coming years through economic growth, pop- The combination of a gasifier, gas turbine and ulation growth and rising living standards. Victorian lignite (brown coal) contains over steam turbine is called Integrated Gasification 60% water when it is mined, locked up in its Combined Cycle (IGCC) and efficiencies That presents two challenges, the paper said. cellular structure. approaching 50 per cent can be achieved, a The first is to find measures to reduce greenhouse emissions from the energy sector and A large amount of energy in the coal is therefore vast improvement on existing thermal efficien- the second is to improve energy efficiency. used to evaporate that water during combustion cies of standard boilers. in a boiler. This significantly increases the level Gasification is likely to be the most effective A starting point for the consideration of future of CO2 produced per unit of energy. policy options is a review of the policies means of increasing the efficiency of combus- and the impact of measures adopted in other If the level of water in lignite was reduced tion of coal to produce electricity and IGCC jurisdictions. prior to combustion, greenhouse emissions can significantly reduce emissions from new would be significantly reduced. power stations. Existing power stations are designed to use One of the companies granted an exploration high moisture content lignite. However it is licence in the Latrobe valley APEL, is propos- possible that these could operate, without sig- ing to use a gasifier and to convert the gas into nificant modification, on coal with 50 per cent liquid diesel fuel. The other company HRL, is less moisture which would reduce CO2 emis- proposing to develop a demonstration IGCC sions by around 15 per cent. plant to generate electricity. New power stations, designed to use dry lignite, could reduce CO2 emissions by 30 per cent over present levels. Sequestration of CO2 The Melbourne based Cooperative Research Sequestration of CO2 is the storage of the gas Centre for Clean Power from Lignite has been after it has been produced. There are several researching coal drying techniques for ten types of sequestration although geo-sequestra- years and has found that the technology most tion is the most suitable for the large amounts likely to succeed is the Mechanical Thermal of CO2 emitted from a power station. Geo- Expression (MTE) process which does not sequestration is permanently storing the CO2 The 2000 megawatt Loy Yang A power station. require energy to evaporate moisture. deep underground.

5 SPECIAL FEATURE

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

Geo-sequestration is being developed in Australia is a world leader in the identification New technologies to reduce greenhouse emis- Australia and internationally as a means of of suitable sites for geo-sequestration. sions are being developed and these will provide reducing CO2 emissions with the long-term future opportunities for coal to continue to be a The Australian Petroleum Cooperative aim of achieving zero emissions. major economic contributor to our economy. Research Centre (now the CO2 CRC) has stud- Once a coal drying technology has been devel- Geo-sequestration requires three stages to ied the action of CO2 underground and has achieve permanent storage. identified a range of factors necessary to iden- oped there may also be other opportunities tify a suitable site. such as offering our coal as an export product. The capture and separation of CO2 from a Black coal is already Australia’s largest com- stream of gas (eg the flue of a power station), These include seismic stability, the nature of modity export. transporting the gas to a sequestration site and the underground material, sufficient volume, Other opportunities may also arise and one of injecting of the gas below an impervious cap an impervious cap and proximity to a signifi- where it can infuse into the rock structure, a the most exciting is to use coal to produce cant source of CO2. deep aquifer or into voids such as depleted hydrogen, as we move towards a possible petroleum reservoirs. This has enabled the CRC to identify a number future hydrogen based society. of suitable sites across Australia, mostly deep The Government is therefore committed to Geo-sequestration is currently used as a means underground saline aquifers. of enhancing petroleum extraction by injecting support the achievement of greenhouse gas CO2 into a petroleum reservoir. There are a number of suitable sites for geo- reductions from our brown coal. sequestration in Victoria off shore from the The technology is therefore proven in principle Latrobe Valley. although it needs to be further developed before it can be used as a commercial means of storing Geo-sequestration is therefore a practical the large volumes produced by a power station. means of permanently putting the carbon back in the ground after it has been used to One of the major issues is to develop tech- produce energy. nologies to separate and capture the CO2 from the flue gas. Other issues are the cost of However, there is still considerable research sequestration, international and local commu- necessary to reduce the cost and confidence in nity acceptance, legal liabilities and technical the capture, separation and sequestration of CO2. standards.

Naturally occurring CO2 reservoirs show that The future of coal geo-sequestration can provide a permanent storage. Victoria already operates a commer- Victoria has vast reserves of coal, enough to last for more that 500 years at current rates of Section through the Latrobe Valley coal seams showing cial CO2 extraction facility near Port Campbell variations in contained moisture and sodium. from a naturally occurring underground reser- consumption. Coal is the mainstay of our economy, supporting all of our industry and voir, a reservoir that has stored CO2 for tens of FOR MORE INFORMATION CONTACT: thousands of years. our homes. John Lambert As well as developing practical and efficient Coal is a clean fuel, low in emissions of sul- technologies, geo-sequestration is dependent on phur, heavy metals and ash. What emissions Manager – Minerals and Petroleum Policy the identification of suitable sites, the accept- produced are controlled at the source and not Department of Primary Industries ance by international and local communities released into the atmosphere. The challenge is Tel: (03) 9412 5068 and the development of appropriate legislation. therefore to reduce greenhouse emissions.

6 SPECIAL FEATURE Loy Yang mine dredges the depths

he vast brown coal mine at Loy Yang in the Latrobe Valley has been deepened to 58 metres below Tsea level, the base of the pit under the present mine plan. Loy Yang Power has relocated its brown coal mining equipment facilities, including dredgers and conveyor belts, to a depth of almost 170 metres below the surrounding land surface. That will make it the deepest mine in the Valley to add to its already impressive list of credentials. The Loy Yang mine is already Australia’s biggest coal mine producing 31 million tonnes of coal and 3 to 4 million cubic metres of overburden each year. In a program which started in May the conveyor system was lengthened by 146 metres and lowered 27 metres to the bottom of the mine. The three-stage process was complex as it had to be achieved while maintaining a steady flow of coal to the power station to ensure an unin- terrupted electricity supply. The Traralgon Creek continues to provide abundant fishing opportunities for local anglers. Although relatively soft and burdened with a high moisture content, brown coal is Victoria’s the ‘mouth’ of the mine including the 2000 increase contact time with the vegetation lining most accessible and cost-efficient fuel for megawatt Loy Yang A power station, the 1000 the channel. electricity generation. megawatt Loy Yang B power station operated Rocks have been placed in the channel and While its moisture content of around 62 per by Edison Mission Energy and a pulverised, the area planted with native water grasses and cent as it comes from the mine, it also boasts a dried brown coal plant operated by Lurgi plants. very low sulphur and ash content. which provides auxiliary fuel for the Edison Mission power station. The work has been highly successful with The Latrobe Valley coal seams vary in thick- stocks of brown trout and golden perch regu- ness from 130 to 170 metres and are covered Overburden and inter-seam material from the larly being caught in the channel. with an average nine metres of overburden of mine is sent to a nearby overburden dump soil and clay. which is being progressively rehabilitated to Fish have begun to congregate in the aerated pasture and bushland. waters of the channel where the rich food sup- The coal seams are also separated by thin lay- ply has resulted in good growth rates in the fish ers of inter-seam material which has no energy In the future the majority of the mine overbur- stocks said Loy Yang Power infrastructure serv- value and is removed as overburden. den will be returned to the mine itself. ices operations officer, Frank Kappl. Huge electric-powered bucketwheel dredgers, Wetlands are also being developed on rehabil- “Native trees have been planted along the 50 metres high and 190 metres long are used to itated land and have become the home for banks of the channel and it has been designed excavate the coal in the vast Loy Yang open pit swans and pelicans. to be inviting to the public.” mine although another mine in the Latrobe As part of its water handling facilities Loy Valley has switched to a bulldozer and truck “The quality of the settling pond water being Yang Power has recently completed major style of coal excavation. discharged into the Traralgon Creek is excep- improvements to its water settling pond area tional which is evidenced by the numbers and The dredgers can produce 4,000 tonnes of and discharge channel. sizes of the fish being caught.” brown coal an hour, enough to bury a house The 300 metre long discharge channel within minutes. FOR MORE INFORMATION CONTACT: carries water from the settling pond to the The coal is transported from the pit by con- Traralgon Creek. Gerald May veyor belt to a 70,000 tonne capacity raw coal In the recent modifications a badly corroded, Manager, Public Affairs bunker at the power station. corrugated steel channel was replaced with Loy Yang Power Coal is supplied directly from the bunker, also a series of four ponds which slow the Tel: (03) 5173 2462 by conveyor belt, to three customers located at water being discharged to reduce erosion and

7 SPECIAL FEATURE Essential Petroleum shows the way in Otway

xploring for oil and gas in a This was a long process that included a detailed national park in Australia has submission for review by the National Parks long been considered an impossi- Advisory Council, which is required to make a Eble dream. recommendation to the Victorian Minister. There is understandably high levels of concern Once these steps were cleared, the submission in response to proposals and typically the com- then had to sit for a minimum of 14 days parison is always drawn to the potential for before both houses of State Parliament. exploration on the Great Barrier Reef in Essential Petroleum gave itself the best chance Queensland or in other highly sensitive areas. of gaining approval by making clear its inten- But in Victoria, one of the country’s smallest oil tions not to drill in the Park and by designing and gas explorers persevered and gained access. Reliable radio communications is central to the success an innovative seismic survey that was con- of any seismic survey. One of the many innovations ducted on existing roads and tracks. This min- Essential Petroleum recently completed a three employed in the Nelson Seismic Survey to enable reliable imised disturbance of the Park and helped communications, was to suspend a radio antenna from a dimensional seismic survey in the Lower helium filled balloon above the tree canopy. ensure that any disturbance would be transient. Glenelg National Park, condoned by environ- The Nelson seismic survey used the latest 3D mental activists and assisted by environmental Mr Remfry said success was mostly a result of technology to “undershoot” the Park from specialists and consultants. company’s dogged determination, but there existing roads and tracks. were many factors involved. In doing so Essential Petroleum has overcome The survey design meant making sacrifices what many industry pundits thought were “From the very beginning, when we applied for a about the amount of information collected from insurmountable hurdles to securing access to 100 per cent interest in PEP 151, we did so on the depths above 1200 metres, but Mr Remfry said large areas of the lightly explored Otway basis that Crown Land would be included. Under this was an “entirely acceptable trade-off” for Basin in the state’s south-west. the relatively new Petroleum Act in Victoria, that high-quality, 3D data at the depths of interest Managing director of the Melbourne-based com- meant we would first have to negotiate explo- which could not otherwise be collected because pany, John Remfry, says perseverance and team- ration access with Native Title claimants over the of the environmental sensitivity. work involving people with the right skills were area, the Gunditjmara people.” Consent to explore came with a long list of the key factors in securing the consent to explore. “So from the outset we set big challenges. We conditions. Winning all the right approvals took three knew we would have to be patient and persist- In fact, the operations plan for the survey – the years of patient negotiations with traditional ent, but we always believed that it would be master document that sets out every detail of landowners and Government but eventually worth our time and effort.” how the survey would be conducted and meas- the company gained permission earlier this An access agreement with the Gunditjmara ured for compliance with all the environmen- year to conduct a major seismic survey in its was achieved in mid-2002, the first such deal tal, cultural and heritage rules – is a huge doc- 100 per cent held onshore permit PEP 151 in between an oil and gas explorer and Native ument almost 10 centimetres thick. the far southwestern corner of Victoria. Title claimants in Victoria. It includes conditions such as washing down the survey trucks to remove foreign plant The 255-kilometre survey, traversing an area Mr Remfry says Essential Petroleum’s suc- material before entering the park, and engag- around the town of Nelson, was conducted on cess, where others are still trying to reach ing a consultant botanist to determine the exact land that is both under Native Title claim and agreement (including Origin Energy, the oper- location of sensitive survey lines. which lies partly within the Lower Glenelg ator in neighbouring permit PEP 150), is due National Park. to the “exceptionally good relations” the com- “If the rules don’t say it can’t be done, then it It is the first time that access to explore for pany has forged with the elders of the probably can, provided you genuinely care about the interests of all your stakeholders,” petroleum in a National Park has been granted Gunditjmara People. Mr Remfry said. in Victoria. “We are a pragmatic company and we have “In our case, that meant negotiation and paying The survey was conducted in May and June. found the elders of the Gunditjmara to be of similar mind. So when we said let’s just focus careful attention to what Parks Victoria and the The final environmental audit from Ballarat on negotiating an exploration agreement, with State Government asked for. After all, they are University is currently underway but the survey a production agreement to follow, they were the custodians of these areas for all Victorians is already being viewed favourably by Parks happy to take this approach. It has been an and we have to respect the rights of every user.” Victoria and the Victorian government for suc- excellent way to build a relationship and for Essential Petroleum’s internally developed cor- cessfully managing any impacts on park values. both parties to gain a genuine understanding porate governance documents the company’s and respect for each other.” The journey to the successful completion of approach to working with its many stakeholders. the survey took three years – a long time for Once the exploration consent was agreed with “Under our corporate governance model, fiscal, any explorer and even more difficult for a the Gunditjmara, Essential Petroleum applied legal and commercial responsibilities are an young company such as Essential Petroleum, to the Victorian government for the right absolute given – these are just the starting point which listed on the Australian Stock Exchange explore on Crown Land in PEP 151, including for success. We overlay these with social, envi- in February 2001 and which was formed less access to explore in the Lower Glenelg ronmental and community obligations to guide than four years ago. National Park. the way we do business.”

8 SPECIAL FEATURE

“The multiple layers in Essential Petroleum will spend the next few However oil discoveries depend on drilling our model leave us months processing data from the Nelson seis- and while Essential Petroleum will not drill with a narrow path for mic survey to firm up prospects and leads. from the National Park surface the company Basin progress, but it has expects the seismic data to reveal prospects The company believes PEP 151 hosts oil accu- been fundamental to both outside and inside the park area, as well mulations in the onshore parts of Otway Basin the ‘firsts’ we have as some which may underlie both. a theory which is gaining credibility with the achieved. As a bonus, it petroleum industry as more exploration is con- Deviated drilling from outside the National also means decision making is straightforward ducted in the area. Park boundaries may be used to access targets – we have a clear map and it always tells us the which lie under the Park’s surface if such correct path to follow,” Mr Remfry said. So far a number of small to medium gas fields, prospects are discovered. some of which have been in production for a He added that the successful completion of the decade or more, have been found onshore, but no For many companies the strategies adopted by survey showed what could be achieved when commercial oil discoveries have yet been made. Essential Petroleum for exploration and dis- all parties worked together and respected each covery may seem too difficult. other’s objectives. If Essential is right, and it finds a commercial oil field onshore, it could prove to be a corpo- But John Remfry believes perseverance and “Essential Petroleum and all involved including, rate bonanza as the oil is within easy trucking attention to the interests of all stakeholders is a Parks Victoria, the Departments of Primary distance of oil refineries in Geelong and model which will eventually provide success. Industries and Sustainability and Environment Melbourne which may provide a ready market. and the Gunditjmara, have created a great example of what can be achieved. We have shown that the oil and gas industry can get access to explore and work with environmental and cul- Glenelg river. tural stakeholders to achieve common goals.”

FOR MORE INFORMATION CONTACT:

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

9 REGULAR FEATURE News Briefs

find and secure opportunities for expansion Medal Awarded Origin Energy buys where it delivers value and leverages our market position,” Mrs Moses said. Victorian LPG business The Hylemit acquisition represents the latest expansion in Victoria for Origin Energy, fol- Gas and electricity utility company, Origin lowing the purchase of the electricity retail Energy, has expanded its Victorian energy business of CitiPower in August 2002. operations through the acquisition of Shepparton based LPG supplier, Hylemit Pty For more information contact: Justine Ltd, trading as Treston Gas. Leadbetter, Public Relations Manager, Origin Energy on (03) 9652 5836 or email justine. Through the acquisition Origin has added [email protected] annual LPG sales of around 12,000 tonnes to its local operations cementing its position as one of the leading energy retailers in the state, with 1 million Victorian customers. Australia’s biggest wind Under the terms of the agreement, Origin Clive Willman. acquired 100 per cent of the business, which will continue trading under the Treston brand farm starts production name and will retain the existing staff. The Geological Society of Australia Victoria The first electricity has been generated at the Division has awarded its 2003 Selwyn Medal Challicum Hills wind farm near Ararat, a project to Clive Willman. The award recognises sig- destined to become Australia’s largest wind farm. nificant contributions of high calibre to any The first towers at the 52.5 megawatt electric- field of Victorian geology. ity generation facility, utilising 35 individual Mr Willman, a geologist with the Geological wind generators began generating power on Survey of Victoria, specialises in the geologi- July 25 but the remaining towers are expected cal mapping area and played a major role to be operational by September. in writing the ‘Tasman Fold Belt System in The farm will produce enough electricity to sup- Victoria’, a special production of the ply the equivalent of 25,000 Victorian homes Geological Survey of Victoria. and cut large volumes of greenhouse gas. Clive Willman graduated with Honours from Karen Moses. Project developer, Pacific Hydro, has pre-sold the University of Melbourne in 1971. the power from the project to gas and electric- But he has not always followed his vocation as ity utility group, Origin Energy under a 15 a geologist, playing for a time in the Mulga Origin said the location of the Treston business year power purchase agreement. was strategically important, providing overlap Bill’s Bicycle Band and spending several years Pacific Hydro general manager – wind energy, with both its electricity and natural gas cus- as a youth worker. David Hastings, said, “Compared to other tomer base in the region. But deciding that his future lay with structural electricity generation infrastructure the geology, Mr Willman completed an MSc at Origin’s executive general manager, wholesale process of building a wind farm is relatively Monash University, supervised by David Gray, and trading, Karen Moses, said the acquisition straightforward, so once construction begins unraveling the role of rock deformation in gold strengthened Origin’s LPG position in we can be reasonably confident of remaining mineralisation in the Central Victorian gold Victoria. “The purchase gives Origin the abili- on schedule, barring inclement weather.” ty to give customers a multi-fuel offer, togeth- province, a work which today provides the “Rehabilitation and revegetation works are er with associated products and services, with- basic reference for the style of deformation already underway under the completed gener- in a single geographic marketplace,” she said and mineralisation in the region. ators,” Mr Hasting said. Mr Willman joined the Geological Survey of “Origin Energy’s products in Victoria include Victoria in 1989 and is recognised as a key natural gas, electricity, the Origin Energy Shop part of the division’s mapping team, working network, and service and installation capabili- in the Bendigo and Castlemaine goldfields and ty. By expanding our LP Gas operations we in many projects in eastern Victoria. increase our opportunities to offer a multi-fuel package to homes and businesses throughout Mr Willman has worked in industry for many the state,” she added. years, spending time with WMC Ltd as well as smaller companies including Coopers Creek “Origin’s LP Gas business has continued to Mining and Exploration NL, and did a spell improve over the past three years and this with East-West Minerals in Colorado. acquisition is evidence of our commitment to Wind Turbine.

10 REGULAR FEATURE News Briefs

VIMP data showcased

The 15th release of data from the Victorian Initiative for Minerals and Petroleum, released in late May has again highlighted the value of the exploration initiative for Victoria. New maps and other tools were released by the VIMP data releases provide dramatic evidence of the popularity of Victoria as a place to explore. Exploration has boomed Geological Survey of Victoria including new since the Victorian Initiative for Minerals and Petroleum got under way more than five years ago. geological mapping tools for the Victorian goldfields and the first ever seamless magnetic MapShare is the first step in the Minerals and image of the entire state. Web mapping using Petroleum Division ‘Deeply on-line’ project which aims to provide clients with on-line access The VIMP program, conducted over the past to all departmental services and databases. ten years has had major benefits for Victoria. Mapshare MapShare is expected to have far-reaching Exploration spending has grown steadily with A new web mapping application allowing consequences for MPD clients on the way they Victoria now attracting close to 6% of national go about their business. expenditure, compared with around 2% before users to search Minerals and Petroleum VIMP started. Division geospatial databases and display the Future developments may include on-line results as maps or tables has been launched as entry of mineral exploration licence applica- Victorian mineral exploration spending in the part of the 15th VIMP data release. tions, on-line data delivery, folders, dataset March quarter this year was $12.1 million com- The web mapping application has been grouping, the ability to switch between coordi- pared with $8.9 million for the previous quarter nate systems and projections and the addition and $8.4 million for the March 2002 quarter. built using the Department of Primary Industries and Department of Sustainability of extra datasets. For the year to March 2003, exploration and Environment’s web mapping infrastruc- To access the application visit expenditure was $42.9 million. This compares ture ‘Mapshare’. www.dpi.vic.gov.au/minpet and click on the with $31.1 million a year earlier. It uses ESRI ArcIMS software which MapShare mapping tool. A function held to mark the latest release of links directly into the Departments SDE For more information contact: Robert Lane, VIMP data was attended by more than 120 min- Oracle databases. Minerals and Petroleum Victoria on ing industry representatives and the Victorian The application is a simple HTML implemen- (03) 9412 5070 or email [email protected]. Minister for Resources, Theo Theophanus. tation of the ESRI ArcIMS out-of-the-box sys- gov.au The data release was followed by a field trip to tem with a few added components such as the the Castlemaine area and to study the regolith of ability to produce Adobe Acrobat pdf plots and the Ballarat East and Creswick areas. to display the mouse X-Y co-ordinates.

11 SPECIAL FEATURE Perseverance opts for bugs at Fosterville

Drilling for sulphides in Falcon pit.

acterial leaching of gold from the mine concept. In a statement to the Australian rich sulphide ores of the Stock Exchange Perseverance executive chair- Fosterville project in central man, John Quinn, said the company had con- Victoria has been selected by the ducted extensive research and analysis on B Fosterville material at Gold Fields BIOX™ company as it moves towards a resumption of commercial gold mining at the project. research facilities in South Africa. He said those studies showed that the Fosterville ore The patented BIOX™ process pioneered by could be readily oxidized by either the bacter- Gold Fields Ltd of South Africa was chosen in ial or pressure oxidation process, with no preference to an alternative process, Pressure apparent difference in overall gold recoveries. Oxidation, which is also in use at various projects around the world. “Gold recoveries via the BIOX™ process are expected to be 90 per cent or greater,” Mr A gold mine processing about 800,000 tonnes Quinn said. of gold ore a year to produce around 100,000 ounces of gold a year is being considered with He added that Perseverance representatives a final investment decision due later in the year. also visited Ashanti’s Obuasi BIOX™ and Plans for the mine have been accelerated by Placer’s Porgera pressure oxidation based the decision of the Victorian Government to operations to obtain a first hand understanding expedite planning approval for the project. of operability, cost and maintenance issues associated with each technology. Resources Minister, Theo Theophanus determined that an existing Environmental Effects “Ashanti and Placer have operated the alter- Statement for the sulphide mine proposal was nate technologies to treat material that is suitable for the new mine proposal, saving broadly similar to Fosterville material for substantial time and reducing the cost of many years.” resuming mining at Fosterville. “These visits and investigation of other com- BIOX™ is a patented bacterial process parable operations confirmed that both tech- John Quinn talking to Silver city drillers, Tony Cox and designed to break down the sulphide lattice nologies are well established and proven,” Mr Shane Hoshins. that contains the gold in the Fosterville ore. Quinn said. dence levels in the process based on more The gold can then be extracted from the bacte- “Concurrently the company’s engineering extensive testing and greater flexibility for the rial solution using a conventional cyanide consultants generated capital and operating process to be scaled up. based system. cost estimates to similar confidence levels for Perseverance has signed a Licence Agreement each technology. These cost estimates enabled Perseverance earlier selected the BIOX™ with Gold Fields which provides for the use of economic comparisons to be undertaken.” process but the project was put on hold before a the BIOX™ patented process and for engi- significant new exploration program dramati- The statement said that the key reasons for neering and metallurgical support from Gold cally expanded the sulphide ore resources at the selecting the BIOX™ process were its capital Fields during the design, construction and project, forcing a re-evaluation of the entire and operating cost advantages, higher confi- commissioning of the BIOX™ circuit.

12 SPECIAL FEATURE

A bankable feasibility study into the develop- That extended the Phoenix Shoot by 25 per demonstrated to contain approximately 800,000 ment of an 800,000 tonne a year mine and cent, and this ‘very persistent’ structure ozs of gold of the total 1.15 million ounce high- treatment facility is due to be completed in the remains open, the company reported. grade resource previously reported in the third quarter this year. Central Zone.” The report said in-fill drilling is required to The Fosterville project contains an estimated fully determine the gold contained in the Perseverance is planning a mine and treatment gold resource of 1.15 million ounces. latest extension. facility to produce approximately 100,000 ounces a year for at least ten years. Mining and processing of oxide ore stopped “However, in light of the consistency of the min- at Fosterville two years ago when the eralisation in the Phoenix shoot it is expected FOR MORE INFORMATION CONTACT: company resumed drilling to expand its that in time, a significant increment to the sulphide resource. resource base will be generated, said Mr Quinn. Drilling recently has concentrated on the rich “Drilling during the quarter has indicated that John Quinn Phoenix ore shoot which has produced a major the Phoenix Shoot is developed over 2000 Executive chairman expansion of the gold resource at the mine. metres down plunge and is well mineralised at Perseverance Mines the deepest intersection made to date.” In its March quarterly report Perseverance said Mobile: 0412 381 081 that drilling had intersected the Phoenix Shoot “The Phoenix Shoot is known to be very con- Email: [email protected] 400 metres down plunge from the previous sistently mineralised over 1600 metres down deepest drill holes. plunge prior to the current drilling. It has been

New phase in Murray Basin boom

ineral sands developments in Technical work on this option is continuing and the Victorian portion of the the timing of the start up of construction work Murray Basin have moved into and first production from the mine is currently Ma new phase as second genera- planned for late 2003 and late 2004 respectively. tion projects move towards production. In parallel to the PFS, Iluka has also investi- Murray Basin Titanium, operator of the gated opportunities to optimise mineral pro- Wemen project near Horsham, is moving cessing operations in the Murray Basin, taking ahead with studies of its Ouyen mine project into account both short and long-term process- where commercial production is planned when ing requirements. This work has focused on Wemen closes in about two years. zircon and rutile processing with the objectives of accelerating the start up of mining and In the meantime MBT has closed its mineral reducing or deferring capital expenditure on separation plant at Thurla, in the state’s north- Douglas test pit. processing plant and equipment. west in favour of trucking the mineral concen- trates to Western Australia for processing. Iluka’s management expects to finalise its of more than A$140 million and is one of assessment of these opportunities in time to The Thurla plant, which has fallen victim to Iluka’s major development opportunities. provide a more detailed analysis and to take an the small scale of the Wemen project and the investment proposal to the Iluka board later The Southern Grampians Shire Council unani- impact of the rising Australian dollar, is likely this year. to be re-opened when the bigger scale Ouyen mously approved the Planning Permit mine starts operations. Application for the Separation Plant in Iluka Resources is a major international min- February. The Application was subsequently ing and processing group, employing 1500 Changes in global demand for mineral sands appealed and the Victorian Planning Minister, people and generating more than $800 million products has also affected some of the early Mary Delahunty, took responsibility for the final a year in revenue. It has mineral production enthusiasm for Murray Basin developments, decision by ‘calling it in’. An internal Planning and processing operations in Australia and the although a recent mineral sands conference in Department hearing was held on 16 July and a United States. Melbourne heard from many speakers that the final decision on planning approval is expected Murray Basin remains major future supplier. by September. FOR MORE INFORMATION CONTACT: One project which is moving ahead towards The company has completed a pre-feasibility Jordeana Cain commercial production is Iluka Resources study (PFS) for the development of the Douglas Limited’s Douglas project near Horsham. Community Relations Manager minerals sand project. The study has focused on Murray Basin – Iluka Resources Ltd The Company is planning to mine mineral from refining the original plan to develop the Douglas its Douglas site and transport mineral concen- stage-1 mine near Horsham and a large-scale Tel: (03) 5551 2306 trate to a mineral separation plant in Hamilton. minerals separation plant near Hamilton to pro- Mobile: 0407 771458 The Douglas project will require an investment duce finished products in 2005.

13 REGULAR FEATURE

14 REGULAR FEATURE Victoria’s mineral, oil and gas resources

15 SPECIAL FEATURE Bendigo to process water into ‘Aqua Gold’

recious water resources in drought “The reality is we simply can’t harvest any stricken central Victoria, presently more water from our existing catchments. So allowed to evaporate or flow away to provide enough water for the continued Pdown streams, are destined to sus- growth of the Bendigo region, we’ve got to tain stock, grow crops and help keep parks educate our customers to conserve water – as and golf courses green under an alliance well as look for some viable alternative between Bendigo Mining and the central sources,” Mr McKern said. Victorian water authority, Coliban Water. Dewatering the old mine workings is A combination of waste water from Bendigo essential if Bendigo Mining is to safely and Mining’s gold operations in central Bendigo successfully resume mining operations in the and processed water from Coliban Water’s Bendigo region. sewage treatment facilities servicing greater Bendigo could soon be adding a green tinge to The water is pumped to the surface but the lev- the parched centre of the state. els of salt and arsenic in the water means it can- not be discharged into the environment without Always a dry region, Central Victoria has processing to remove the contaminants. reached the limit of the volume of water it can extract from natural resources and reservoirs. At the moment, all the water pumped out is discharged to evaporation ponds at Woodvale. So water conservation and sustainable multiple-use options have become imperative. An But as the mining operations increase in scale alliance between Bendigo Mining and Coliban Doug Buerger, Managing Director, Bendigo Mining. more water must be removed. Water has been formed to promote Bendigo’s A number of alternatives including the expan- growth through the sustainable use and devel- Under the alliance Coliban Water and Bendigo sion of the evaporation ponds, irrigation of opment of water resources. Mining will help to secure Bendigo’s future trees and water treatment have been consid- In its efforts to re-open mining from the deep water supply and to develop sustainable water ered but treating the water has been shown to underground resources, Bendigo Mining first reuse options. be the best approach. has to remove water from old mine workings. “Bendigo Mining has invested some $A70 Eventually treated water will be discharged to At present around one megalitre (one million million dollars in our New Bendigo Gold the benefit of the environment and will be able litres) a day is being pumped from under- Project, which aims to restore Bendigo as a to be used for a variety of other uses. ground before being treated and allowed to major world mining centre,” said Bendigo Under this approach the minimum requirement flow away down local streams. Mining managing director, Doug Buerger. for land is established and the system has Some water, containing metals and salt, is “To achieve this goal, we’re very keen to work the lowest negative impact on the natural retained in evaporation ponds. with partners such as Coliban Water to contin- environment. ue finding the highest value sustainable uses But when mining at Bendigo reaches full The volume of water to be discharged will for the water we’re currently pumping up from planned production rates up to 10 megalitres a remain consistent throughout the year, and water Bendigo’s old mine workings,” he said. day will be extracted from underground. is produced that is suitable for a range of uses. Bendigo Mining is well advanced on its plans Bendigo Mining reckons that ten megalitres of The proposed water treatment facility will be to desalinate its mine water for reuse on dis- water, which could otherwise be used for irri- built at Bendigo Mining’s existing New Moon trict ovals and golf courses. gation of crops of recreation grounds, is a Site in Eaglehawk North. valuable resource. “Bendigo Mining is committed to looking at Water will continue to be pumped from the economically viable ways of safely treating Coliban Water agrees. historic New Moon Shaft and fed to a treat- and reusing this valuable resource across ment plant. The two groups have formed the ‘Aqua Gold’ Bendigo,” Mr Buerger said. alliance which recognises the crucial role Once water is treated the plant will produce The Victorian Government has committed $150k water will play over the next 150 years. two products. to the Bendigo scheme, as part of its ‘water for “Historians now realise that without ample growth’ projects for North Central Victoria. The first is large volumes of clean water with water for gold-washing and domestic needs, low salinity and arsenic concentration, making The Aqua Gold alliance partners are supported early Bendigo may never have become a major it suitable for a wide range of uses. world gold producer,” said Coliban Water by the City of Greater Bendigo, North Central chairman, Gordon McKern. Catchment Management Authority, EPA, DSE, Bendigo Mining has already won approval to and the Department of Primary Industries. add it to Lake Neangar, which overflows into “So our new Aqua Gold alliance with Bendigo Lake Tom Thumb. Mining reflects and continues the crucial link The alliance aims to generate worthwhile ideas between the two ingredients that were essen- for sourcing new water supplies to supplement From there, it will be used by the Neangar Park tial to the success of the entire Bendigo a number of successful sustainable water proj- Golf Course and there are also plans to establish region,” he added. ects already underway across the region. a separate system to deliver water to the

16 SPECIAL FEATURE

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

Eaglehawk North Primary School and a stand- Environmental flows to improve the passive of water use strategies and reclamation projects pipe for controlled public use. recreational uses and environmental condi- in the area. tions at Lake Neangar and Lake Tom Thumb Water not used will overflow from Lake Tom It also sought to undertake technical, environ- and reuse of the treated water by the Neangar Thumb into Eaglehawk Creek. mental and economic studies relating to the Park Golf Course and Eaglehawk North processing and use of alternative water sup- The other product from the treatment plant Primary School are considered all good uses of plies and to encourage and promote collabora- will be water containing the vast majority the treated water. (about 98 per cent) of the salt and about 99 per tive joint ventures for the conservation and recent of the contained arsenic although the Mr Buerger said that Bendigo Mining strongly use of water. believes that the proposed water treatment plan water treatment changes the form of the In a separate initiative Coliban Water is also is an example of sustainable development. arsenic to make it less toxic. investigating ways of utilising the large vol- The water will be treated using the well under- “Such development must be encouraged to umes of waste water generated daily at its stood Reverse Osmosis process commonly ensure protection of our environment while sewage treatment works. used to remove salt. enhancing the economic and social well being Clean, processed water from the treatment of our community,” he said. Water from underground is usually about 1/6th works, of up to 70 megalitres a day, would as salty as sea water. EPA approval for the New Moon water treat- ultimately be destined for irrigation purposes ment plant was received earlier this year. for crops, reducing the reliance on inefficient EPA approval for the water treatment plant has and leaky irrigation channels. already been obtained by Bendigo Mining. Mr Buerger said, “the approval will enable the Very few environmental emissions or effects company to proceed with its plans to make the Greg Sheahan, executive manager-planning will be generated by the treatment plant. best use of the water extracted from under- with Coliban Water, told Discovery that only ground workings.” about 15 to 20 per cent of waste water from In a detailed analysis of the environmental the Bendigo sewage treatment facility was “Bendigo Mining has always sought to make impacts it was found that noise emissions will currently treated and used as irrigation water. be significantly less than prescribed limits dur- beneficial reuse {of water} an important ing construction and inaudible by the closest aspect of its operations and is committed to the But he said in consultation with Bendigo residence during operation. best possible use of such a valuable resource in Mining, the City of Greater Bendigo, the light of the company’s on-going development Environment Protection Agency and other Odour emissions and contaminated run-off of the goldfield.” stakeholders, additional uses for the remainder would be negligible while there would be no of the waste water were being sought. increase in dust emissions. The EPA Works Approval was conditional upon agreement with the City of Greater At present the bulk of the treated waste water On the positive side it was found that the regular flow of water down the watercourse will Bendigo in regard to the management of the is discharged to the Bendigo Creek. cause no loss of indigenous flora and fauna discharge of treated water to Lake Neangar and will reduce algal blooming, creating the which has since been granted. FOR MORE INFORMATION CONTACT: potential for further recolonisation of indige- When it was formed the alliance between nous species in the future. Bendigo Mining and Coliban Water created a Doug Buerger The erosion of the creek bed and walls would be vision to promote regional growth and develop- Managing Director significantly less than in a normal rain event and ment through the sustainable use and develop- Bendigo Mining NL there would be no increase in sediment load. ment of two precious resources, water and gold. Tel: (03) 5447 1834 An extensive monitoring program, aimed at con- The alliance aimed to provide a major leadership Mobile: 0418 178 640 firming low impact, is included in the proposal. role in the development and implementation

17 SPECIAL FEATURE Vic Hub project links Victoria to the market

ictorian natural gas is now sup- He said the Esso processing facility at plying two of Australia’s main- Longford would no longer be the principal land states as well as Tasmania, point of supply into the Victorian gas system. becoming one of Australia’s V “The new VicHub will add diversity and major energy suppliers after the opening of strengthen the security of Victoria’s gas supply Australia’s first ever gas trading hub. – particularly during the peak winter months,” The VicHub project, located just behind Duke the Minister said. Energy International’s (DEI) Longford “Greater diversity and choice of supply will Compressor Station plant in East Gippsland, is result in improved outcomes for consumers, the point at which the four main natural gas adding that the VicHub was a, “major advance transmission pipelines in Victoria meet and in developing a truly national gas market.” interconnect. “Ten years ago, Australia’s gas markets were The hub connects the Eastern Gas Pipeline, limited by state borders,” he said. taking gas to Sydney, the main Victorian trunk line carrying gas to the Melbourne mar- “With the installation of the VicHub, we have ket and the Tasmanian Gas Pipeline carrying competition, choice and enhanced liquidity in gas to Tasmania. the market. The VicHub will facilitate inter- regional trading between the physical and The hub also links the main Victorian gas trans- Julie Dill, Managing Director, Duke Energy International financial gas markets.” mission network to the western Victorian net- – Asia Pacific and Victoria Energy Minister, The Honourable Theo Theophanous, celebrate the start of a Mr Theophanous said the rapid increase in the work which will carry gas to South Australia new era in the South-East gas market. once the SeaGas pipeline is completed early rate of gas exploration in Victoria and the next year. development of new infrastructure was con- efficient to facilitate the movement of tranches tributing to the supply and delivery of gas at The VicHub gas interconnector is a vital link of gas due to infrastructure and market con- efficient and affordable prices. in the development of a truly free and fair gas straints,” she said. market between the eastern Australian states “VicHub complements the investments made and will allow a national market to evolve. The trading concept behind VicHub is that by Duke Energy International in the financial derivatives can be substituted for Bairnsdale power station launched in 2001 and The VicHub project was developed by physical gas molecules using the gas market the significant pipeline projects delivering DEI, operator of the Eastern and Tasmanian trading system providing greater flexibility for vital energy for Victoria’s continued growth Gas Pipelines and one of the most innovative major gas buyers. and prosperity.” gas transmission companies to enter the Australian market. The VicHub is a similar concept to the Henry Hub in Louisiana in the US. Based on the concept of the massive Henry Hub natural gas interconnector in the United DEI RECENTLY LAUNCHED THE The Henry Hub is owned and operated States, the VicHub project is a far smaller proj- ChevronTexaco and is physically situated at ect, but marks the beginnings of a much bigger $A440 MILLION NATURAL GAS the Henry Gas processing plant. future market. PIPELINE TO TASMANIA. It is on the Sabine gas pipeline which starts in The project has already proved its value by Eastern Texas, runs by the Gulf of Mexico and allowing Victorian gas to be diverted to ends in Louisiana at the Henry Hub. Sydney earlier this year when gas supplies The Henry Hub interconnects nine interstate from the Moomba fields in South Australia Julie Dill said, “VicHub is changing the land- and four intrastate pipelines which collective- were disrupted. scape of the Australian gas market by enhanc- ly provide access to markets in the US VicHub allows, for the first time, free move- ing competition, choice and liquidity. It repre- Midwest, Northeast, Southeast, and Gulf Coast regions. ment of gas across regions and more flexible sents an innovative approach to mitigating pricing and delivery of the nation’s fastest physical and financial risks.” About 49 percent of US wellhead production growing energy source. either occurs near the Henry Hub or passes Victorian Energy Minister, Theo close by as it moves to downstream markets. Duke Energy International managing director, Theophanous, who opened the facility said Julie Dill, said VicHub provided a new and the VicHub project would allow natural gas Henry Hub is the centralized point for natural reliable channel for customers, primarily gas to flow between Victoria, New South Wales gas futures trading in the US. retailers, to source or sell additional gas. and Tasmania for the first time. No formal futures trading market for natural “VicHub allows gas to be bought and sold “The ‘VicHub’ interconnector brings greater gas has yet been established in Australia but across regions and enables gas users and retail- security of supply to Victoria and improved the rapid development, and growth in the mar- ers to optimise their physical and contractual gas flows across the south-eastern Australian ket could see futures contracts become a fea- positions, where previously it was not easy or markets at a single point.” ture of the market in the near future.

18 SPECIAL FEATURE

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

Natural gas is forecast to rapidly increase its support, principally an additional transmission Producer Legislation created in 1998 to protect share of the total Australian primary energy line from the Latrobe Valley to Bairnsdale. gas retailers from the market power of market over the next two decades which could Esso/BHP Billiton, then the monopoly suppli- Gas is supplied to the Bairnsdale Power create the conditions to allow the development ers of gas into the Victorian market. Station by the Eastern Gas Pipeline, a 795km of a gas futures market. natural gas pipeline which was commissioned Mr Theophanous said the review would study If that happened VicHub could become an in August 2000. whether the natural gas market now had important link the national market. enough supply competition for the legislation DEI recently launched the $A440 million nat- to be repealed. The construction of new, gas-fired power gen- ural gas pipeline to Tasmania. He said that with the creation of the VicHub it eration capacity in Victoria, South Australia, The 732km subsea and underground pipeline was clear that barriers to interstate trade in nat- NSW and Queensland will deepen the existing and conversion of Tasmania’s Bell Bay power ural gas had come down. Eastern Australian market while the addition station to natural gas will be an incentive for of Tasmania to the network will increase gas industrial growth and long-term industrial But he said it was “competitive energy prices trading opportunities. development opportunities in the State. and security of supply that drives the economy in Victoria.” Last year DEI completed the Bairnsdale peak- The development of the VicHub project coin- “We are well on the road to developing a ing power station in Eastern Victoria. The cided with a review of the Victorian gas mar- national [gas] market,” he said. addition of a second 43MW unit at the ket by system operator VenCorp. Bairnsdale station lifted total generation VenCorp is studying the concept of moving FOR MORE INFORMATION CONTACT: capacity to 86MW. from a daily gas pricing mechanism to an Robert Hayes The station eased pressure on the power grid hourly price fixing system to facilitate the gas Public Affairs Offices trading market. in the region which had been under pressure Duke Energy International during high load conditions and offers an alter- Victoria’s Essential Services Commission has Mobile: 0419 744 746 native to the other possible means of system also begun a review of Victoria’s Significant

19 GOLD EXPLORATION Mining to start at Bendigo – firstfirst everever goldgold reservereserve

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

ommercial scale gold mining is the Garrard Reef has revealed exceptional high Processing of the Bendigo ore is relatively planned to restart at Bendigo in grade gold with 50 kg samples returning simple with only minor use of cyanide pro- 2005 after Bendigo declared the grades of more than 30 g/t Au. cessing being considered. first ever gold reserves at the C The results are consistent over 80 metres of the “We will use gravity separation with flotation New Bendigo Project in June. reef that have been tested thus far within a drill and the work we do in the feasibility study A mine producing 80,000 to 100,000 ounces of indicated strike length of 450 metres Mr won’t change the basic design of the plant,” gold a year, starting in the March quarter of Buerger said. Mr Buerger said. 2005 would be the first phase of a project “The variation in grade and the higher grades “We will be refining our metallurgical test planned to generate up to 500,000 ounces a we are now seeing are typical of the field. Our work within the next couple of months in year for 25 years or longer. long term production planning envisages an order to finalise the process flow sheet for the In its June quarter report, Bendigo Mining average grade of 11g/t Au compared to the his- plant design.” managing director, Doug Buerger declared toric average production head grade of 17 g/t “The feasibility work will give us a better han- that the company had found probable reserves gold,” over the entire Bendigo field Mr dle on the mine design, dewatering, ventilation of 120,000 ounces of gold, a volume likely to Buerger said. requirements and secondary egress, as well as rise to 200,000 ounces by December. The sampling and exploration work in the the treatment and disposal of tailings, water The company has also found a major new high Lower S3 reefs is ongoing, with a target and mullock,” the managing director said. grade gold bearing reef grading more than 30 reserve base of 200,000 ounces gold by Even in its first stage of production the grams of gold per tonne (g/t Au). December this year. Bendigo Mine will rival the Stawell mine as Bendigo Mining is now fast tracking its final At the same time Bendigo Mining will com- the state’s biggest gold producer. feasibility study and plant design for stage one plete a feasibility study and the design of a Mr Buerger said that independent experts had of the project. plant to treat 300,000 tonnes of ore a year. confirmed that the New Bendigo project con- In its June quarter report the company said it Mr Buerger said that the Bendigo board had tains a resource potential of at least 12 million had delineated Probable Reserves of 440,000 decided that the ore grade of the main target ounces. “Once we get the project into produc- tonnes of ore in a grade range of 7.5 to 9.5 g/t reefs would not be improved through additional tion, I’ve got no doubt that it will produce gold gold with a best estimate of 8.5 g/t Au for sampling and decided that, “commercial pro- for at least 25 years and beyond.” 120,000 ounces of contained gold. duction should commence without delay.” “The conceptual plan put together a few years Mr Buerger said, “This is the first time in the “To that end we are carrying out the planning ago with Australian Mining Consultants history of the nuggetty Bendigo goldfield that to support a decision to commit to stage one assumes two stages of production increase fol- reserves have been able to be defined. We are production. Plant design and planning should lowing commencement of mining, with a pro- very pleased that our exploration work has pro- be completed in December with full addition- duction peak of between 400,000 and 500,000 gressed to the point where we can now estimate al permitting in place by June 2004,” Mr ounces of gold per annum or 1.2 to 1.5 million gold grades within the reefs with sufficient Buerger said. tonnes of ore per annum,” Mr Buerger said. accuracy to be able to delineate reserves.” He added that, “Our conceptual plan indicates “Our current planning centres very much on “Reserves to this point have been delineated in that the first stage of production will be around stage one production, although we’re also doing 300,000 tonnes per annum of ore producing the Upper S3, D3 and Christine No 2 reefs and some long term planning such as the expansion 80,000 to 100,000 ounces per annum of gold reflect the gold grades predicted in those of our site to handle the mullock produced over from the reserves we’ve identified in the D3, reefs,” he said. the anticipated 25 year mine life.” upper S3 and Lower S3 ribbon. Our capital A major new high grade reef system has also estimates are preliminary and in the ball-park Mr Buerger was excited by the rich ‘jewellery been discovered in the lower S3 reefs where of $50 to $60 million.” box’ nature of the Garrard’s reef discovery.

20 GOLD EXPLORATION

He said, “The grade from Garrard’s is above and Mr Buerger confirmed that the decision He added that a gold price of $A525 an ounce expectation. Garrard’s Reef is about 4 metres to start mining with first production in had been used in the calculations to produce an wide and currently grading over an ounce per early 2005 was several months later than ore reserve figure for the project. tonne. The reef is about 450 metres long as originally planned. indicated by drilling, but whether or not that “There has been some slippage in our high grade persists over the entire length will timetable to define the 200,000 ounce reserves FOR MORE INFORMATION CONTACT: become clearer as we continue with our more to support the start up of production from detailed exploration and drilling of the reef.” Doug Buerger October to December.” “Historically, the miners found grades of this Managing Director “Expenditure on long lead-time items for pro- magnitude fairly extensively over reefs and Tel: (03) 5447 1834 duction will only commence after commitment were able to mine them successfully.” to construction, which is expected early in Mobile: 0418 178 640 The progression towards commercial scale 2004. The construction phase is expected to Website: www.bmnl.com.au mining at Bendigo has been a lengthy process take about 12 months,” Mr Buerger said.

MPI to maintain Stawell joint venture

ictoria’s biggest gold producer, Initially MPI Mines will spend $700,000, in netic “dome” targets which lie Murray Basin MPI Mines, will continue to oper- 2003 and early next year seeking 5 million sediment cover. ounce scale repetitions of the Stawell orebody. ate the Stawell gold mine with its The purpose of PMD CRC is to “generate a US based joint venture partner, V That program will lift MPI’s equity share of fundamental shift in exploration practice by Pittston Mineral Ventures after the failure of the Stawell Corridor from 50 per cent to 58 per developing a vastly improved understanding a deal under which MPI would have cent. In the statement MPI directors said, “The of mineralising processes and a four dimen- acquired 100 per cent ownership of the mine. company is pleased to be demonstrating con- sional understanding of the evolution of the But MPI will continue to fund 100 per cent of tinued commitment to the Stawell region geology of mineralised terrains.” the regional exploration in the ‘Stawell corri- through upgrading of the Stawell Corridor MPI Mines managing director, Brian Phillips, dor’ region as it continues its efforts to locate exploration program and the opportunity to said that, “We believe the area is highly new gold deposits. increase ownership of the project.” prospective and it’s worth noting that the area MPI and Pittston Mineral Ventures of the The Stawell corridor exploration project is one was selected by the State and Federal US have a 50/50 joint venture over of the most exciting gold programs in the state. Governments for specific research support by the PMD CRC.” the Stawell mine and each owns 25 per cent MPI Mines is seeking major repetitions of the of the Coolgardie gold joint venture in Stawell mine gold system in areas covered by “Interpretation from aeromagnetics and gravi- Western Australia. recently deposited sediments. ty surveys has demonstrated the potential for ten hidden basalt domes to be Stawell look- MPI manages both the Stawell and Coolgardie The regional campaign has already had sub- alikes. Our exploration program will involve joint ventures. A term sheet for the negotiation stantial success with a number of targets drilling specific targets based on the research of the acquisition of Pittston’s interests by MPI already showing significant promise for major and fluid flow modelling,” Mr Phillips said. was agreed in November last year but doubt new gold deposits. was cast on the transaction earlier this year “Any expenditure that we sole fund above the when MPI revealed that negotiations were tak- MPI is seeking significant new gold resources amount of $A700,000 will result in a further ing longer than expected. in the Stawell region, which are replications of increase in MPI’s equity above 58 per cent, the Stawell orebody. assuming that the sole funding approach con- MPI announced in July that the parties were tinues,” Mr Phillips said. unable to conclude the acquisition agreement The Stawell corridor drilling program will within the time frame provided by the commence in August/September on targets Australian Stock Exchange listing rule waivers. that have been generated in conjunction with FOR MORE INFORMATION CONTACT: the Co-operative research Centre for “Negotiations have been discontinued and Predictive Mineral Discovery using fluid flow operations will continue under existing joint modelling and previously confirmed by geo- venture arrangements,” MPI directors said in a Brian Phillips physics and aircore drilling. statement to the ASX. Managing Director The PMD CRC is supported by Federal, State The Stawell mine will continue to operate as a MPI Mines Ltd and private funding. joint venture and the partners have agreed to Tel: (03) 9628 2222 work towards extending the mine life at MPI controls a 140km corridor of exploration Fax: (03) 9620 7424 Stawell through mining to the 1004RL level. tenements from Stawell, northwest into the Murray Basin. Email: [email protected] Studies will also continue to extend mining Website: www.mpimines.com.au operations beyond 2005 and MPI will sole fund Potential for extensions of the Ararat-Stawell a significant exploration program aimed at goldfield setting has been confirmed through unlocking the gold potential of Stawell Corridor. aircore and diamond drilling of several mag- 21 LICENCES REVIEW Mineral Licences April/June 2003

EXPLORATION LICENCE APPLICATIONS

Title No. Status Map Sheet Primary Owner Event Date Area Size

EL4740 CANAMCORANGAMITEPURUS ENERGY LTD 04/04/2003 18 GRATS

EL4741 APPLICATION WEDDERBURN PROVIDENCE GOLD AND MINERALS PTY LTD 17/04/2003 498 GRATS

EL4742 APPLICATION ECHUCA GOLD FIELDS AUSTRALASIA PTY LTD 08/05/2003 355 GRATS

EL4743 APPLICATION WANGARATTA CONARCO MINERALS PTY LTD 14/05/2003 500 GRATS

EL4744 APPLICATION BOGONG SYNERGY METALS LTD 16/05/2003 540 GRATS

EL4745 APPLICATION BENAMBRA SYNERGY METALS LTD 16/05/2003 7 GRATS

EL4746 APPLICATION CASTLEMAINE GOLD SEARCH INTERNATIONAL PTY LTD 21/05/2003 441 GRATS

EL4747 APPLICATION BENDIGO GOLD SEARCH INTERNATIONAL PTY LTD 21/05/2003 502 GRATS

EL4748 APPLICATION SKIPTON BARRICK GOLD OF AUSTRALIA LIMITED 12/06/2003 3438 GRATS

EL4749 APPLICATION CASTLEMAINE CONTINENT RESOURCES PTY LTD 16/06/2003 103 GRATS

EXPLORATION LICENCES GRANTED

Title No. Status Event Map Primary Owner Event Date Expiry Date

EL4667 CURRENT GRANT KERANG RELIANCE MINERALS LTD 03/04/2003 1303 GRATS

EL4672 CURRENT GRANT DONALD RELIANCE MINERALS LTD 03/04/2003 2190 GRATS

EL4673 CURRENT GRANT WEDDERBURN RELIANCE MINERALS LTD 03/04/2003 204 GRATS

EL4675 CURRENT GRANT ORBOST RIO TINTO EXPLORATION PTY LTD 03/04/2003 213 GRATS

EL4695 CURRENT GRANT WILLAURA RELIANCE MINERALS LTD 17/04/2003 843 GRATS

EL4725 CURRENT GRANT BENDIGO PROVIDENCE GOLD AND MINERALS PTY LTD 17/04/2003 85 GRATS

EL4641 CURRENT GRANT MANSFIELD WEDDERBURN MINING PTY LTD 01/05/2003 213 GRATS

EL4646 CURRENT GRANT MATLOCK WEDDERBURN MINING PTY LTD 01/05/2003 21 GRATS

EL4653 CURRENT GRANT YEA WILLIAM G A REDMOND 01/05/2003 71 GRATS

EL4697 CURRENT GRANT BUFFALO NORTHERN MINE VENTURES PROPRIETORY LTD 01/05/2003 291 GRATS

EL4732 CURRENT GRANT OUYEN BASIN MINERALS HOLDINGS PTY LTD 19/05/2003 8 GRATS

EL4733 CURRENT GRANT OUYEN BASIN MINERALS HOLDINGS PTY LTD 19/05/2003 6 GRATS

EL4734 CURRENT GRANT OUYEN BASIN MINERALS HOLDINGS PTY LTD 19/05/2003 14 GRATS

EL4460 CURRENT GRANT YEA ARASTRA EXPLORATION PTY LTD 26/06/2003 13 GRATS

EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED

Title No. Status Map Primary Owner Event Date Expiry Date

EL4430 SURRENDERED WARRAGUL ALPHADALE PTY LTD 03/04/2003 03/04/2003

EL4508 SURRENDERED CORRYONG TANTALUM AUSTRALIA NL 03/04/2003 03/04/2003

EL4651 SURRENDERED YEA DUNOLLY GOLD DEVELOPMENTS PTY LTD 17/04/2003 17/04/2003

EL4015 SURRENDERED DUNOLLY DUNOLLY GOLD DEVELOPMENTS PTY LTD 19/05/2003 19/05/2003

EL3540 EXPIRED WEDDERBURN PACIFIC MAGNESIUM CORPORATION LTD 15/06/2003 15/06/2003

EL4275 EXPIRED CASTERTON EROMANGA HYDROCARBONS NL 26/06/2003 26/06/2003

EL4569 SURRENDERED BALLARAT TRASA PTY LTD TRADING AS IMPERIAL JOINT 27/06/2003 27/06/2003

MINING LICENCE GRANTS

Title No. Status Event Map Primary Owner Event Date Expiry Date

MIN5330 CURRENT GRANT CRESWICK PAUL JOHN SIMMONDS 03/04/2003 02/04/2008

MIN5388 CURRENT GRANT HEATHCOTE FLITEGOLD PTY LTD 01/05/2003 30/04/2008

MIN5386 CURRENT GRANT CRESWICK ANTHONY GEORGE FRASER 19/05/2003 18/05/2008

22 LICENCES REVIEW

MINING LICENCE APPLICATIONS

Title No. Status Map Sheet Primary Owner Event Date Area Size

MIN5389 WITHDRAWN RINGWOOD LISA SMITH 08/05/2003 0.9 HA

MIN5390 APPLICATION KERANG CUMMINS MINERALS PTY LTD 12/05/2003 56.7 HA

MIN5391 APPLICATION CRESWICK MOUNT ROMMEL MINING PTY LTD 14/05/2003 4.8 HA

MIN5392 CURRENT NYAH DARREN ANDREW GERVASONI 14/05/2003 70 HA

MIN5393 CURRENT NYAH DARREN ANDREW GERVASONI 14/05/2003 71.4 HA

MIN5394 APPLICATION NYAH RONALD MERVYN AYARS 20/05/2003 54 HA

MIN5395 APPLICATION BACCHUS MARSH GOLD SEARCH INTERNATIONAL PTY LTD 26/05/2003 2.6 HA

MINING TITLES SURRENDERED, CANCELLED OR EXPIRED

Title No. Status Map Primary Owner Event Date Expiry Date

MIN4680 EXPIRED KERANG CUMMINS MINERALS PTY LTD 12/04/2003 12/04/2003

MIN5350 SURRENDERED DUNOLLY DUNOLLY GOLD DEVELOPMENTS PTY LTD 17/04/2003 17/04/2003

MIN4306 EXPIRED BEAUFORT HADYN K PUNTON 28/04/2003 28/04/2003

MIN4681 EXPIRED KERANG NEVILLE E MCCANN 02/05/2003 02/05/2003

MIN4349 EXPIRED ALBURY RUTHERGLEN MINING PTY LTD 05/05/2003 05/05/2003

MIN5138 EXPIRED BALLARAT WRICO MINERALS PTY LTD 15/05/2003 15/05/2003

MIN5360 SURRENDERED DOOKIE LAWRENCE A MCCALLUM 19/05/2003 19/05/2003

MIN4796 SURRENDERED BACCHUS MARSH DAVID L LLOYD 19/05/2003 19/05/2003

MIN4817 SURRENDERED DUNOLLY DUNOLLY GOLD DEVELOPMENTS PTY LTD 19/05/2003 19/05/2003

MIN4112 SURRENDERED DUNOLLY DUNOLLY GOLD DEVELOPMENTS PTY LTD 19/05/2003 19/05/2003

MIN5097 CANCELLED BENDIGO GREG MCQUALTER 16/06/2003 16/06/2003

New rush into Victorian gold exploration

he takeover of the majority of the interest shown in Victoria by a range of com- That compares with $8.9 million spent in the Australian gold industry by the panies, many of which have never held explo- previous quarter and $8.4 million for the March world’s biggest producers has had ration acreage in the state. 2002 quarter and is the highest quarterly explo- a devastating effect on the level of ration expenditure in Victoria since 1997. T Driving the new interest in Victoria is the real- exploration in much of Australia. isation that the state is under-explored and has For the year to March 2003, exploration But Victoria, with its rich history of major gold the potential for major new gold deposits. expenditure was $42.9 million compared with fields and outstanding potential for major new $31.1 million a year earlier. The realisation that substantial mines can be discoveries is attracting an increasing share of readily developed in Victoria, despite the rela- By comparison with the rest of the country, the national exploration budget. tively high population density compared with Victoria enjoyed an excellent result. For the Unprecedented interest in reviving gold produc- WA and Queensland, is changing the percep- quarter, Victoria attracted 7.7 per cent of total tion from regions like Ballarat and Bendigo is tion of Victoria as a place to invest. national mineral exploration expenditure. driving the new mood of enthusiasm. That same population density, while creating This has grown from 5.3 per cent of national Recent discoveries of world scale mineral sands some community issues, also offers major expenditure in 2001/02 and is up from only 2 deposits in the Victorian portion of the Murray advantages through the delivery of infrastruc- per cent a decade ago. Basin has also helped to heighten interest in the ture like power and transport access. Victoria occupies only around 3 per cent of broader mineral potential of the state. Modifications to Victoria’s mining legislation Australia’s landmass so it is clear, that in A recent conference in Ballarat on the poten- and the relative lack of native title issues are exploration terms, the state is starting to reap tial for new gold discoveries in Victoria working to attract explorers from interstate in major rewards. attracted 120 delegates from a wide cross sec- increasing numbers. Most of the exploration expenditure in tion of the gold industry, with many Western Victorian mineral exploration expenditure in Victoria is aimed at the gold sector. For the Australian companies strongly represented. the March quarter this year, as measured by year to March 2003 Victoria attracted the sec- The Australian Journal of Mining sponsored the Australian Bureau of Statistics, totalled ond highest gold exploration expenditure conference was remarkable for the strong $12.1 million. behind Western Australia, of all the States and

23 GOLD EXPLORATION

Territories, with Victoria’s share of national Richard Aldous, also told delegates that Victoria expenditure being 9.7 per cent. had major potential for new gold discoveries. One of the big attractions in Victoria is the He told delegates that despite minimal gold large body of public domain geological data production in Victoria since the 1920’s available to explorers. Victoria was poised on the brink of a gold boom similar to that which unfolded in The extension of the highly successful Western Australia from the early 1980’s when Victorian Minerals and Petroleum Initiative a host of new gold orebodies were discovered (VIMP) program has been a major boost for and mined. the industry. At the AJM Victorian gold conference the managing director of Reliance Dr Aldous said that while brownfield explo- Mining Ltd, now the largest holder of exploration around the major gold production areas ration territory in the state, Dr Stephen of the state was growing rapidly, greenfields Twyerould, told delegates that despite exploration in previously unmined areas Victoria’s historical production of 80 million remained weak. ounces of gold in the past 150 years, the state Stephen Twyerould. But he said an area of great potential was for a remained under explored by modern methods. new discovery of gold beneath shallow cover. “Reliance has realised this and has secured that a province that exhibit the right geological He said there were “very good prospects for ingredients for gold mineralisation.” eight major gold projects in Victoria covering major new discoveries,” in covered areas, cit- in excess of 7,000 square kilometres.” He said that research has shown that, “Vast areas ing in particular the encouraging results being “Reliance’s strategy has been to target the cov- of the state,” have only been partially explored. obtained from the ‘along strike’ by MPI Ltd from the Stawell mine. ered strike extensions of the major gold camps “Reliance believes that Victoria has significant and to acquire old mining centres with a limited untapped potential for major gold deposits.” Dr Aldous also noted that the VIMP program, modern exploration history,” Dr Twyerould said. which has cost almost $A30 million since it Stephen Hancock, a director of the global began in 1993, has been a major contributor to the “Reliance believes the timing is right for signif- mining industry consulting group, URS rising interest in Victorian mineral exploration. icant investment in the state.” Australia agrees. “Largely as a result of VIMP Victoria now has “Experience has shown that if you’re looking He told the conference that there is a resur- to make a significant gold discovery there gence of gold mining around urban centres complete airborne magnetic and radiometric are two criteria that have proven to be extreme- which trace their origins back to the gold rush- coverage at 400 metre line spacing or better, ly effective.” es of 150 years ago. semi-regional gravity coverage and 70 per cent coverage of Paleozoic outcrop areas with ‘new “These are to go to a province that has produced But he said that modern principles of sustain- generation’ geological mapping at 1:50,000 significant quantities of gold in the past. This able development would help to sustain and and 1:100,000 scale.” shows all the right metallogenic processes have support mining in these areas despite their been operating at an appropriate scale.” close proximity to large population centres. “This is the best basic geological coverage in the country,” he told delegates. Dr Twyerould said the second important crite- The executive director of petroleum and miner- ria was to, “Find the under-explored areas of als for the Department of Primary Industries, Dr Range River Gold joins the Victorian rush

ictorian gold exploration is Range River, which raised $A6 million and Kingston project booming with a host of new com- was listed on the Australian Stock Exchange in panies being attracted to the June last year, has four major exploration proj- Range River’s Kingston project is among the Vstate, drawn by its prospectivity, ects in Victoria. company’s most prospective areas. rich gold history, and the state’s high quali- Located 220 km west of Melbourne and 47 km ty data inventory. Managing director, Michael Beer, says, “Victoria is a world ranking mineral province, north east of Ararat, the exploration licences The continuing Victorian Initiative for having produced approximately two per cent include the former Kingston and Glendhu Minerals and Petroleum (VIMP), has generat- of the world’s gold.” gold mines. ed a large volume of open file geological and geophysical data providing a solid basis for Mr Beer said the potential for discovery of WMC previously held the licences and con- modern exploration. primary gold deposits within the company’s ducted some regional drilling, obtaining some Victorian tenements at Kingston, encouraging results. Recently floated exploration group, Range Ararat/Stawell, Foster and Summerfield (near River Gold, is planning to leverage off the WMC, drilling in the 1980’s, hit some high Bendigo), “is considered to be high.” public exploration data and the state’s rich grade areas producing drill intercepts includ- gold credentials to find new, commercially “All of the company’s tenements are located in ing 14 metres at 26.6 grams per tonne of gold attractive, orebodies. historical gold fields with previous production.” and 11 metres at 7.4 g/t Au. 24 GOLD EXPLORATION

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

Summerfield (Bendigo) project Range River has recently entered into a farmout agreement with Gold Fields Australasia Pty Ltd “Gold Fields” (a subsidiary of Gold Fields of South Africa) over the Summerfield project whereby Gold Fields can earn 75% equity in the property through the expenditure of $A2.0m on exploration over a period of 4 years, with a minimum expenditure commitment of A$150k in Range River Gold has a spread of gold exploration targets across Victoria with particular attention on the Kingston the first year. The Summerfield project lies to project near Ararat. the north of Bendigo where there is potential for WMC discovered a significant supergene gold Mr Beer said the geological association pro- discovering a significant gold deposit below the zone but since then there has been limited vides a strong predictive model to guide explo- cover of Murray Basin sediments. Several drilling to test the oxide zone where Range ration in the Ararat tenement for Stawell-style major regional structures including the River has identified drill targets. gold deposits. Whitelaw Fault and the Kamarooka gold trend traverse the property. Follow up drilling by Range River early this The Ararat district has recorded gold production year produced a number of promising results. of 610,000 ounces but virtually all of this gold was recovered from alluvial deposits and has South Australian projects The reverse circulation program included 15 not yet been related to a major primary source. drill holes with the best results producing 5 In addition to its exciting Victorian gold prop- metres at 13.5g/t Au, 6 metres @ 5.9g/t Au and erties, Range River has two further key explo- 11metres @ 3g/t Au although all holes drilled Foster project ration properties in South Australia; at the returned potentially ore grade mineralisation. Range River’s Foster Project consists of two Nackara Arc Property (3,000 sq. km.) near Peterborough where a third round drilling pro- Only 160 metres of the known Kingston reef exploration licences located approximately gram is currently underway. system was drilled in the program. The com- 160 km south east of Melbourne covering an pany has since been busy with further mapping area of approximately 400 square km. Range River has also recently farmed in to the of the 2km quartz reef and a further drill pro- The tenements cover a regional aeromagnetic Glenloth property, previously held by MIM. gram is currently being finalised. anomaly with strike length of 16km which is Glenloth is host to the historic Glenloth gold- coincident with the Mt Hoddle Range. field and is adjacent to Tunkillia and Tarcoola, two other significant historical and current Ararat project The magnetic anomaly is thought to represent gold centres. Range River will be drilling at Range River’s Ararat project covers explo- the southern extension of the structural belt that Glenloth towards the end of 2003. ration licences over 205 square kilometres contains the Woods Point-Walhalla goldfield. about 210km west of Melbourne. Basement rocks including Precambrian to Ararat is part of a major gold province in Palaeozoic sediments and inferred calc-alka- western Victoria located in the Stawell-Ararat line volcanics occur along the Mt Hoddle fault zone, a clearly defined gravity and Range, for the most part covered by structural corridor. Cretaceous sediments. The corridor contains the Stawell goldfield Anomalous gold and platinum group metals in and the world-class Stawell gold mine, cur- stream geochemistry will be tested. rently Victoria’s largest producing gold mine. Several mines in the Foster area include the Stawell gold mine has a defined endowment of Victory mine which was worked to a depth of 152 metres and produced 180,000 ounces. 5.6 million ounces of gold, including the pre- 1926 alluvial and hard rock production of 2.7 The style of mineralisation, consisting of Moz, post-1984 production of 900,000 and the stacked quartz ladder veins associated with a current reserves and resources estimated at porphyry dyke, is similar to the large ore bod- FOR MORE INFORMATION CONTACT: 1.17 million ounces. ies mined in the Woods Point area. Michael Beer Stawell’s high-grade gold mineralisation typi- A stream sediment-sampling program previ- Managing Director cally occurs associated with sulphides in struc- ously carried out by Range River identified a turally controlled sites related to intensely number of anomalous areas believed to be Range River Gold deformed metasediments and volcanogenic sed- related to the occurrence of gold and PGM Tel: (03) 8614 1500 iments adjacent to the Magdala basaltic dome. mineralisation in the basement.

25 REGULAR FEATURE Pipelines, prospectors and mine rehabilitation

uidelines for the development of new pipelines, to control the rehabilitation of mined land and Gto guide the actions of gold prospectors across Victoria have been released by the Victorian Government. The series of initiatives aimed at providing clear guidelines for the resources industry have been developed and released in recent months. Rapid growth in the development of new high pressure gas transmission pipelines, in response the developing free market for gas, has led to the need for a formal set of guidelines. A proposal paper for new legislation covering the development of new gas pipelines was released in July. That followed a review of the Pipelines Act 1967 announced in June 2000. A discussion paper was released in March, 2002 and meetings with key stakeholders were held in during November/December 2002 to develop the issues and proposals raised. Most stakeholders then indicated strong support for specific pipelines legislation and the latest proposals rely on that basis. The Victorian Government has proposed that the current Pipelines Act be replaced by new pipelines legislation. The proposed new legislation will cover the development of petroleum pipelines but will also have capacity to cover other pipelines on The Government is aiming for the Act to be in have been found in the Golden Triangle of a case by case basis except for lower pressure place by June 2005. Central Victoria and surrounding areas,” the gas distribution pipelines. Minister said. The Act would also offer Licences for an Prospectors guide “We want to make it easier for prospectors to take up metal detectors, hand tools, pans or indefinite term, similar to the Petroleum In the shorter term gold prospectors and fos- sluices in the search for Victorian gold, gem- Submerged Lands Act 1982 (Vic) and termina- sickers have been provided with greater cer- stones and other minerals,” he said but added tion of the licence would occur if the pipeline tainty over their activities through the release that the Government also wanted to ensure that is not being used or proposed to be used in of a new guide. which case easements associated with the prospectors and fossickers enjoyed their hobby pipeline would be returned to the landowner. In conjunction with the Prospectors and safely, in the proper locations and with care for Miners’ Association of Victoria, the guide was the environment. It is proposed to include timelines for launched in June at Sovereign Hill by Victorian The Prospectors Guide will be provided with Ministerial processes, a requirement for a con- Resources Minister, Theo Theophanous. sultation plan to be prepared before access to every new prospecting permit granted and can land occurs and greater clarification of the Mr Theophanous said, “The guide provides fan- also be found on the Departmental websites: tastic advice for old and new who hope to strike types of matters that could go into a land www.dpi.vic.gov.au and access agreement. it rich each year. It contains advice on permits, www.parkweb.vic.gov.au places to go prospecting, safety tips and how to The proposal include time limits provided for minimise impact on the environment.” The guide was prepared in partnership good faith negotiation in reaching agreements. between the Department of Primary Industries, Around 5000 prospectors hold miners rights The key objective of the Act is to facilitate the the Department of Sustainability and in Victoria. development of new natural gas transmission Environment, Parks Victoria, the Prospectors pipelines in Victoria and to create an effective, “Victoria is a great place to go prospecting. and Miners’ Association of Victoria and the efficient and flexible regulatory system. Many of the world’s largest gold nuggets Victorian Gem Clubs Association.

26 USEFUL WEBSITES

Agricultural land rehabilitation Useful mining website Explorers who find gold or other commercial scale mineral deposits in Victoria are also Academic expected to make serious efforts to rehabilitate the land on which they operate. Department of Civil and Chemical Engineering RMIT Substantial rehabilitation bonds and other leg- www.rmit.edu.au/eng/civil-chem islative requirements now place far greater emphasis on the sustainable use of land for La Trobe University - Department of Earth Sciences multiple purposes. www.geology.latrobe.edu.au With that in mind the Department of Primary Monash Earth Sciences Industries has recently released a new document called, ‘Principles for rehabilitation of www.earth.monash.edu.au agricultural land subject to mining.’ Seismology Research Centre The booklet is endorsed by the Department, www.seis.com.au the Victorian Farmers Federation and the Victorian Minerals and Energy Council. University of Ballarat Geology Department It sets out agreed principles for the rehabilita- www.ballarat.edu.au/ard/sci-eng/geology tion of agricultural land that has been subject- ed to mining and where it is proposed to return University of Melbourne - School of Earth Sciences that land to its previous agricultural use or www.earthsci.unimelb.edu.au another agreed productive purpose. The Mineral Resources Development Act Education 1990 provides that a rehabilitation plan must take into account, “the desirability or other- Australian Institute of Petroleum wise of returning agricultural land to a state www.aip.com.au that is as close as reasonably possible to its state before the mining licence was granted.” Victorian Minerals and Energy Council www.vicmins.com.au The new booklet is consistent with the provi- sions of the MRDA and also supports progres- sive rehabilitation during the operation of the Government mine and final rehabilitation at mine closure. All Mining Licences require a Work Plan that Australian Governments Geoscience Portal must include a Rehabilitation Plan. www.geoscience.gov.au

Any rehabilitation plan must take account of Department of Industry Tourism and Resources issues such as special characteristics of the www.industry.gov.au land, the surrounding environment, and the need to stabilise the land. Dept. of Natural Resources and Mines, Queensland The MRDA requires rehabilitation bonds suffi- www.nrm.qld.gov.au/mines cient to satisfactorily rehabilitate the land to the agreed plan to be lodged before mining starts. Environment Australia www.environment.gov.au In Victoria rehabilitation and mine closure activity costs must be factored in to overall Geoscience Australia project costs to cover that actual cost of reha- www.ga.gov.au bilitation works. This is to ensure that the cost of rehabilitation NSW Department of Mineral Resources is adequately provided for in company www.minerals.nsw.gov.au accounts and that the community/government is not exposed to a liability. Northern Territory Department of Business, Industry and Resource Development The rehabilitation bond is the guarantee held www.dme.nt.gov.au by the Department, to ensure that the planned rehabilitation work is properly carried out at Primary Industries and Resources SA no cost to the community if the company www.pir.sa.gov.au defaults on its rehabilitation obligations. Mineral Resources Tasmania www.mrt.tas.gov.au FOR MORE INFORMATION CONTACT: Department of Primary Industries Victoria Customer Service Centre www.dpi.vic.gov.au Tel: 136 186 Website: www.dpi.vic.gov.au Department of Industry and Resources - Western Australia www.doir.wa.gov.au

27 SPECIAL FEATURE BallaratBallarat –– TheThe returnreturn ofof aa worldworld classclass goldgold fieldfield

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

he gold industry’s interest in Under capitalised mines suffering from war modelling of the existing data was required Victoria’s major gold fields has induced labour shortages led to the majority said Mr Lauffman. of mine closures where the workings subse- risen dramatically in the past This data included; year as work to resume or quently flooded. T • all of the key elements for ore formation increase the rate of mining in areas like The goldfield has laid mostly dormant ever Ballarat, Bendigo and Stawell, moves to a since and Victoria has been generally over- based on the historical records, new level. looked in the past 50 years as modern drilling • a reconstruction of a number of orebodies Ballarat Goldfields has recently regained the has created new booms in places like that were mined historically, market’s attention following its rejuvenation in Kalgoorlie, in Western Australia. • a 3D geological model which could identi- October last year. Since its recapitalisation Ballarat Goldfields fy additional target locations. Now focused solely on its gold assets, the has focussed on identifying the geological “From a very early stage of this work program company has been recapitalised after its foray potential of Ballarat and developing an it became obvious that, despite the large amount into the dot.com sector. exploration strategy to maximise value from that potential. of work undertaken previously at Ballarat on With a new board and management, the com- the geology and ore types, there were numerous pany is now debt free and making rapid Ballarat Goldfields new managing director, gaps in the information,” he said. progress to re-establish gold’s bona fides in the Richard Laufmann, said that “required experi- “That could be addressed with further histori- Ballarat region. enced exploration and modelling skills, cou- pled with front line exposure to nuggetty and cal research, trench mapping and 3D model- The rationale for seeking gold targets beneath structurally complex orebodies.” Geology ling across the entire field.” the old Ballarat workings is well documented. manager, Steve Olsen who previously worked That work showed that more than 80 per cent with Croesus Mining and formerly WMC Like many other Victorian fields, Ballarat is a of the ore mined at Ballarat East was derived Resources, was appointed to head the project. 19th century gold field which produced more from large ore shoots on west dipping faults than 12 million ounces from surface and Before a comprehensive view on the explo- combined with vertically oriented thick quartz underground workings which were mostly ration potential at Ballarat could be ascer- veins, both of which appear to be amenable to closed by 1917. tained, a thorough compilation and geological modern mining techniques.

28 CONTACT LIST

Mr Lauffman said stope reconstructions at The Department of Primary Maher Megallaa Ballarat East identified a repeated sequence of Manager Acreage Release shallowly south plunging ore shoots, which Industries Growing Victoria’s Future Tel: (03) 9412 5081 range from 2 metres to 40 metres in thickness and are at least 250m in length along strike. The Department is committed to the Bob Harms Manager Petroleum Information These ore shoots have developed along steep- sustainable development of primary Tel: (03) 9412 5053 ened sections of west dipping reverse faults, on the eastern limb of an anticline and are hosted industries for the benefit of all within a variable sequence of sandstones, silt- Victoria. Geoff Collins stones and shales, Mr Lauffman said. Manager Petroleum Projects Tel: (03) 9412 5095 Similar work at Ballarat West identified his- Minerals and Petroleum Division torical production on west dipping faults and Contact List: also graphitic shale hosted orebodies on the Minerals and Petroleum Regulation western limbs of folds. Minerals and Petroleum Business Centre Level 8, 240 Victoria Parade, Fax: (03) 9412 5152 Ballarat Goldfields has outlined an inferred East Melbourne, Victoria 3002, Australia and indicated resource of 700,000 ounces of Tel: + 613 9412 5020 Doug Sceney gold with an exploration potential of 6 million Fax: + 613 9412 5150 Acting Manager Minerals and ounces. “This result is particularly exciting as Petroleum Regulation it has produced some unexpected extensions Richard Aldous Tel: (03) 9412 5069 to the field. In particular, at Ballarat East, three Executive Director additional lines have been proposed, being the Minerals and Petroleum George Buckland Sulieman, Exchange and Eureka lines,” Mr Tel: (03) 9412 4508 Manager Minerals and Olsen said. Fax: (03) 9412 4183 Petroleum Tenements Tel: (03) 9412 4778 This potential is considered “conservative” says Olsen, coming from a “heavily factored Geological Survey of Victoria exploration portfolio”. Graeme McLauglan Tel: (03) 9412 5042 Manager Northern Region Operations “It has been our intention from the start to be Fax: (03) 9412 5155 Chief Mining Inspector up-front in explaining to our shareholders Tel: (03) 5444 6689 what we believe the region has to offer,” said Phil Roberts Mr Laufmann. “We have done this by quanti- Manager Geological Survey Victoria John Mitas fying the available targets and risk weighting Tel: (03) 9412 5035 Manager Southern Region Operations’ the available data based on our knowledge and Tel: (03) 9412 5083 confidence.” This process provides the highest Alan Willocks Manager- Geophysics level of transparency, whilst also quantifying Hayden Cater Tel: (03) 9412 5131 the confidence the company has in its geolog- Acting Environmental Manager ical model, he added. Tel: (03) 9412 5107 Peter O’Shea The company has gone further and in its pub- Manager Geological Mapping lished exploration strategy, has outlined a four Tel: (03) 9412 5093 Horacio Haag stage exploration plan, including cost estimates. Manager Petroleum Operations Roger Buckley Safety and Environment The company says it is now poised to enter its Manager Mineral resources Tel: (03) 9412 5101 next phase; to fine tune the location of the Tel: (03) 9412 5025 favourable trends, before undertaking a more Minerals Policy detailed drilling campaign. Graham Gooding John Lambert The next series of holes from surface are Regional Manager Ballarat Manager Minerals and Petroleum Policy focused on the structural verification of the Tel: (03) 53 336 521 Tel: (03) 9412 5068 Sulieman line, whilst providing valuable data on the geotechnical conditions likely to be Guy Hamilton encountered by a future decline extension. Regional Manager Bendigo Information Tel: (03) 5430 4697 In the next six months Ballarat Goldfields plans Janne Bonnet to start surface drilling of the Ballarat East – Petroleum Development Manager Minerals and Petroleum Sulieman line, develop the Beringa geological Reference Centre model and continue a conceptual study to Fax: (03) 9412 5156 Tel: (03) 9412 5022 demonstrate the field’s production potential. Fax: (03) 9412 5157 Kathy Hill Manager Petroleum Development Tel: (03) 9412 4208 Kim Ricketts FOR MORE INFORMATION CONTACT: Client Services Officer Kourosh Mehin Tel: (03) 9412 5103 Richard Lauffman Manager Petroleum Resources Fax: (03) 9412 5157 Managing director Tel: (03) 9412 5074 Chandri Nambiar Ballarat Goldfields Mike Woollands Marketing Manager Tel: (03) 5333 5444 Manager Basin Studies Tel: (03) 9412 5061 Tel: (03) 9412 5135 Fax: (03) 9412 5035 ALL THE FACTS.... The Register of Australian Mining 2003/2004 includes complete financial Worth it’s details plus an editorial summary of activities of all ASX-listed mining Worth it’s companies and details of more than 300 private companies. There is also a complete rundown on all Australian mines, developing projects and exploration prospects, including location, ownership, man- weightweight inin gold!gold! agement, regional and mine offices, geology, reserves, production history, method of operation, treatment type and plant capacity and an editorial summary of recent activity and planned work programs. The 5,000 entries in the register provide an invaluable list of contacts, including telephone and fax numbers, ideal for marketing to the mining Register of industry. So if you’re deciding whether to buy or sell shares, looking for a mailing Australian Mining list to help sales, checking out a neighbour’s territory or choosing your Australian Mining next take-over target, you can’t go past the Register of Australian Mining 2003/2004. 2003/04 YOU WON’T GROW WITHOUT IT. BONUS MAP.... And because it’s the 24th edition, a full-sized beautifully-detailed wall map showing the location of all Australian producing mines is included Also with every copy. You get the full picture at a glance. available CD-ROM on CD-Rom The Register of Australian Mining 2003/2004 is also available on a user- friendly CD-ROM incorporating an excellent relational database design connecting companies to their projects, contact details, management, financial analysis and editorial comments. It also allows you to download mailing lists, enabling you to pinpoint your market quickly and easily. You also receive a free printed copy of the Register with each CD-ROM purchased. 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