South Australia’s growing resources sector
Dr Andrew Rowett Primary Industries and Resources South Australia South Australia is resource rich…
• Copper • Processed petroleum products • Iron Ore and Steel • Carbon Dioxide • Lead and Zinc • Salt • Zircon and Mineral Sands • Gypsum • Gold and Silver • Dolomite and Limestone • Uranium • Construction Sand, Gravel • Opal and Jade • Silica • Coal • Dimension stone • Oil • Natural Gas
The Australia - Japan Mineral Exploration Investment Seminar 2010 South Australia’s Major Mines Sept 2010
• Olympic Dam Mine – Cu-Au-U • Beverley Uranium Mine – U • Middleback Ranges Mines – Hematite and Magnetite • Leigh Creek Coal Mine – Thermal Coal – SA power generation • Challenger Gold Mine – Au • Beltana Zinc Mine – Zn • Angas Zinc Mine – Zn-Pb-Ag • Prominent Hill Mine – Cu-Au • Honeymoon Uranium Mine – U • Jacinth-Ambrosia Mine – Zircon + other mineral sands • White Dam Gold Mine – Au • Cairn Hill – Iron Ore - Au
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010
Projects Geothermal Major Mines
The Australia - Japan Mineral Exploration Investment Seminar 2010 South Australia’s Mining Pipeline September 2010 South Australia’s Mineral Exploration Industry
The Australia - Japan Mineral Exploration Investment Seminar 2010 Mineral Exploration Licence Coverage
January 2004 January 2008 October 2010
The Australia - Japan Mineral Exploration Investment Seminar 2010 International Partnerships
• Japan – JOGMEC/Minotaur, Mitsui Corp/Uranium One • China – Citic Group/Southern Gold/ Marathon Resources – Sinosteel/PepinNini – Baotou Iron & Steel Group/ Centrex Metals – Heilongjiang Resources Limited/Havilah Resources – Focus Investment and Tangshan Xingye Industry and Trade Group / Western Plains Res. – Jilin Tonghua Iron & Steel (Group) Mining Co/ IMX Resources – Tongjiang International Energy Co. Ltd / Altona Resources – CNOOC (Beijing) Energy Investment Co. Ltd/ Altona Resources – Rizhao Steel/OneSteel – Shanxi Haixin Iron & Steel Group Co./ OneSteel – Hebei Jinxi Iron & Steel Co./ OneSteel – Wuhan Iron and Steel Corp. (WISCO)/Ironclad Mining – China Railway Materials Commercial Corporation/FerrAus – Jiangyin Huaxi Steel Co./Lincoln Minerals Ltd – Sin-Tang Development Pty Ltd./Royal Resources – Liuzhou Iron and Steel Co. Ltd/Ironclad Mining • India – Tata Group/Geodynamics, – Reliance Group/UXA • South Korea – LG International/Scimitar Resources
The Australia - Japan Mineral Exploration Investment Seminar 2010 South Australian Mineral Exploration Expenditure 2009/10
SOUTH AUSTRALIAN South Australia’s MINERAL EXPLORATION BY COMMODITY Advantage: 2009/10 = $166.5 million $1m <1% $1m <1% Copper $3m 2% Uranium • 31% - national share $3m 2% of copper exploration Gold $16m 10% $62m 29% Iron Ore $19m 11% • 30% - national share Silver, Lead, Zinc of uranium exploration Mineral Sands
$51m 33% Nickel, Cobalt • Iron ore increasing Coal (second to massive WA)
The Australia - Japan Mineral Exploration Investment Seminar 2010 South Australia’s Exports 2003/04 and 2008/09
Mineral exports are the largest single sector contributing to South Australian exports, at just over a quarter (29%) of total state exports of $9.5 bn
Other Other $785 m 8% $990 m 11% Petroleum Petroleum $128 m 1% $180m 2% Road vehicles $997 m 10% Agriculture and Food Road vehicles Agriculture & Food $2,630 m 28% $1530 m 17% $3060 m 34%
Minerals Wine Minerals $1,854 m 19% Wine $2744m – 29% $1170m – 13% $1620 m 18% Machinery $450 m 5% Machinery $364 m 4%
2003/04 2008/09 Total Exports = $9 billion Total Exports = $9.5 billion
The Australia - Japan Mineral Exploration Investment Seminar 2010 South Australia’s Copper Mines and Developments
The Australia - Japan Mineral Exploration Investment Seminar 2010 Olympic Domain Copper - Gold
• Olympic Dam: 9075 Mt at 0.87% Cu, 0.027% U3 O8 , 0.32 g/t Au and 1.5 g/t Ag • Prominent Hill: 174.2 Mt at 1.39% Cu, 0.56 g/t Au Prominent Hill • Kanmantoo: 32.2 Mt at 0.9% Cu,
Olympic Dam 0.2 g/t Au. Startup 2010 Carrapateena Punt Hill • Hillside: 100Mt (inf.) at 0.7% Cu and 0.2 g/t Au Kalkaroo Mutooroo • Other Deposits – Carrapateena Hillside Projects to watch Adelaide – Punt Hill • Major Mine Kanmantoo – Kalkaroo • Mining Development – Mutooroo
The Australia - Japan Mineral Exploration Investment Seminar 2010 Olympic Dam – Copper-Gold-Uranium-Silver BHP Billiton Ltd
• Largest uranium deposit, fourth largest remaining copper deposit and fifth largest gold deposit in the world. Also contains significant quantities of silver • Total Resource 9 080 Mt at 0.87% Cu, 0.027% U3 O8 , 0.32 g/t Au and 1.5 g/t Ag • Gold only resource 151 Mt at 1.0 g/t Au • Reserve (ore) 473 Mt at 1.86% Cu,
0.06% U3 O8 , 0.76 g/t Au and 3.95 g/t Ag • Production 2009/10 – 103 300 t Cu,
2279 t U3 O8 , 65 494 oz Au, 500 000 oz Ag
OlympicOlympic DamDam
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Olympic Dam – Copper-Gold-Uranium-Silver BHP Billiton Ltd
CURRENT ACTIVITIES • Draft Environmental Impact Statement has been circulated for comment – awaiting Government decision in 2010 • Proposed 60 Mtpa Olympic Dam combined with existing 12 Mtpa operation, requiring construction over 11 years, will have an approximate annual production of: – 750 000 t Cu,
– 19 000 t U3 O8 – 800 000 oz Au,
– 2 900 000 oz Ag OlympicOlympic DamDam – (incl. 2 Million tonnes concentrate to China)
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Prominent Hill – Copper-Gold-Silver OZ Minerals Ltd
• Significant iron oxide copper gold deposit • ‘Copper’ Resource – 189.7 Mt at 1.32% Cu, 0.5 g/t Au, 3.1 g/t Ag • ‘Gold’ Resource - 78.8 Mt 0.06 % Cu, 1.4 g/t Au, 0.9 g/t Ag • Production commenced Feb 2009 first shipments to Asian markets in April 2009 • Production to 30 June 2009: ~ 32 000 t Cu, 24 000 oz Au 53 000 oz Ag ProminentProminent HillHill • Aiming for 2009 production of: 85 000 t to 100 000 t Cu 60 000 oz to 70 000 oz gold
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Prominent Hill – Copper-Gold-Silver OZ Minerals Ltd
• CURRENT ACTIVITIES • Prominent Hill Western Copper underground mine approved July 2010 and construction underway. First ore to be accessed October 2010 and full production expected H2 2012 • Underground operation to add an estimated 25 000 t Cu and 12 000 oz Au per annum • Exploration program ($40m in 2010) to test near-mine ($20m) and regional ($20m) exploration targets
ProminentProminent HillHill
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Kanmantoo – Copper-Gold Hillgrove Resources Ltd
• Current resource 32.2 Mt at 0.9% Cu and 0.2 g/t Au, 3.2 g/t Ag containing 292 000 t of Cu, 191 000 oz Au and 3 313 600 oz Ag • Under construction with first production expected H1 2011 • Annual production: 2.4 Mtpa of ore for 20 000 t Cu, 10 000 oz Au and 125 000 oz Ag • Recent good results from satellite deposits: – KTRC757 – 17m @ 0.95% Cu and 0.35 g/t Au from 48m – KTRC759 – 5m @ 2.95 g/t Au and 0.36% Cu from 24m
KanmantooKanmantoo
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Carrapateena – Copper-Gold Teck Resources Ltd/RMG Services Pty Ltd
• Olympic Dam-style copper-gold mineralisation. Discovered 2005 • Over 78 000 m drilled including spectacular results: – CAR073: 905 m grading 2.17% Cu and 0.9 g/t Au, 255pm U, 38.8% iron, 0.169% Ce and 0.104% La – Scoping Study complete
CarrapateenaCarrapateena
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Hillside – Copper – Gold – Uranium Rex Minerals Ltd
• Maiden Resource 100Mt (inf.) at 0.7% Cu and 0.2 g/t Au • Amenable to shallow, large-scale, low cost bulk mining • Close to infrastructure – ports, people, power, water
HillsideHillside
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Mutooroo – Copper-Cobalt-Iron Ore - Sulphuric Acid Havilah Resources NL
• Inferred Resource 11.5 Mt at 1.1% Cu and 0.1% Co • High sulphur content of ore identified as potential source for sulphuric acid production • Potential to be Australia’s largest cobalt producer • Pre-feasibility work underway
MutoorooMutooroo
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Kalkaroo – Copper-Gold-Molybdenum Havilah Resources NL/Glencore International AG
• Measured resource of 65 Mt at 0.55% Cu and 0.44 g/t Au • Inferred resource of 4.5 million tonnes of 615 ppm molybdenum • Feasibility Study nearing completion
KalkarooKalkaroo
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 South Australia’s Iron Ore Mines and Developments
The Australia - Japan Mineral Exploration Investment Seminar 2010 Central Gawler – Curnamona Iron Ore
• Project Magnet – Production 2009/10 – 6.2Mt iron ore exported, 1 Mt steel • Cairn Hill 14.3 Mt at 50.6.5% Fe, 0.29% Cu, 0.09 g/t Au • Peculiar Knob 37.6 Mt at 62.8% Fe Cairn Hill Peculiar Knob • Wilgerup 13.2 Mt at 57.7% Fe Sequoia Hawks Nest • Wilcherry Hill 59.9 Mt at 30.6% Fe Giffen Well Wilgena Hill • Warramboo 328 Mt at 17.3 % Fe,
52.4% SiO2 11.5%, Al2O 3 0.095% P and Mutooroo 2.1% LOI Wilcherry Hill Maldorky Warramboo Lilydale • Razorback Ridge 277 Mt at 25.9% Fe Razorback Ridge Bramfield Project Magnet OTHER DEPOSITS Wilgerup Hawks Nest Mutooroo Gum Flat Sequoia Lilydale Projects to watch Adelaide • Major Mine Wilgena Hill Maldorky • Mining Development Giffen Well Bramfield Gum Flat
The Australia - Japan Mineral Exploration Investment Seminar 2010 October 2010 Project Magnet – Iron ore (magnetite) - (hematite) OneSteel Ltd
• Resource – (hematite) 91.8 Mt at 59.2% Fe, (magnetite) – 234.2 Mt at 40.0% DTR • Reserve – (hematite) 32.5 Mt at 61.5% Fe, 0.08%P, (magnetite) 83.3 Mt at 42.1% DTR • Production 2009/10 – 6.1 Mt haematite iron ore exported, 1.5 Mt magnetite iron ore exported • 1 Mt of steel • 2500 full time employees (incl. contractors) • Largest Australian producer outside the Pilbara • CURRENT ACTIVITIES
• Identify and prove up increased iron ore ProjectProject MagnetMagnet reserves for export
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Peculiar Knob – Iron Ore (hematite) Western Plains Resources Ltd
• Total resource 19.2Mt at 64.0% Fe, 7.16%SiO2 , 0.25% Al2 O3, 0.01% P and 0.4 LOI • 3-4 Mtpa, 7 year mine life expecting to commence exports in H2 2011 • 30 year agreement with Flinders Ports Pty Ltd in June 2010 to export iron ore and coal from Port Pirie • MOU agreements with four Asian and European customers for the sale of iron ore beginning in late 2011 • Final approvals in progress
PeculiarPeculiar KnobKnob
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Cairn Hill – Iron Ore (magnetite)-Copper-Gold IMX Resources NL
• Phase 1 mining commenced June 2010 • Resource 14.3 Mt at 50.6% Fe, 0.29% Cu, 0.09 g/t Au • Reserve 6.9 Mt at 51.2% Fe, 0.43% Cu, 0.13 g/tAu • Ore produces a premium coarse grained magnetite with a clean saleable Cu/Au concentrate • 1.7 Mtpa dig and ship, mining 7.3 Mt at 50.9% Fe and 0.41% Cu over 54 months from 2 pits • 3 year sales off-take agreement with Tonghua for the DSO magnetite production • CURRENT ACTIVITIES • First ore to be railed to and shipped out of Port Adelaide Q4 2010 • Phase 2 – initial drilling program complete, scoping study imminent CairnCairn HillHill • Currently defining resources to support a long term 3–5 Mtpa operation •
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Wilcherry Hill – Iron ore (magnetite) Ironclad Mining Ltd
• JORC compliant Indicated and Inferred Resource of 59.9 Mt at 30.6% Fe • High quality crystalline magnetite, low contaminants, suitable for low cost beneficiation with concentrate grades likely to exceed 67% Fe • Finalising definitive feasibility study for production up to 2Mtpa commencing 2011
WilcherryWilcherry HillHill
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Wilgerup – Iron Ore (hematite) Centrex Metals Ltd
• 13.2 Mt (ind.) at 57.7% Fe, 4.9% SiO2 , 2.8% Al2 O3 , 5.1% LOI, 0.5% P • Pt Lincoln export facility approved October 2009 • MARP submitted for approval
WilgerupWilgerup
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Warramboo – Iron Ore (magnetite) IronRoad Mining Ltd
• 328 Mt (inf.) at 17.3% Fe, 52.4% SiO2 , 11.5% 2 Al O3 , 0.095%P and 2.1% LOI • Potential 10 Mtpa magnetite concentrate export operation • Infrastructure studies, community engagement and environmental baseline monitory studies are all underway • Pre-feasibility studies underway are scheduled for completion early 2011
WarrambooWarramboo
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Razorback Ridge – Iron Ore (magnetite) Royal Resources Ltd
• Maiden Resource (inf.) 277 Mt at 25.9%
Fe, 41.4% SiO2 , 6.7% Al2 O3 , 0.2% P, 3.53% CaO and 0.455% TiO2 • Magnetite units hosted in NeoProterozoic Braemar Formation • Initial DTR assays indicate a high grade product possible • Scoping Study underway in preparation for prefeasibility to be completed 2011
RazorbackRazorback RidgeRidge
The Australia - Japan Mineral Exploration Investment Seminar 2010 Gum Flat – Iron Ore (magnetite - hematite) Lincoln Minerals Ltd
• Magnetite - 99.3 Mt (inf.) at 24.4% Fe (20.6% DTR conc. At 66.7% Fe) • Haematite – 3.6 Mt (ind. & inf.) at 46.2% Fe • Ore is hematite-goethite grading down into banded magnetite iron formation. • Scoping studies nearing completion & Mineral Lease application in preparation
GumGum FlatFlat
The Australia - Japan Mineral Exploration Investment Seminar 2010 South Australian Uranium Mines – Developments – Exploration
The Australia - Japan Mineral Exploration Investment Seminar 2010 Uranium Iron Oxide – Copper – Gold – Uranium
Olympic Dam
Olympic Dam: 9075 Mt at 0.87% Cu, 0.027% U3O 8, 0.32 g/t Au and 1.5 g/t Ag Beverley
7.7 Mt at 0.27% U3 O8 containing 21 000 t U3O 8 Prominent Hill Honeymoon 4 Mile Beverley Olympic Dam 1.2 Mt at 0.24% U3 O8 containing 2900 t U3O 8 Wirrda WellMt GeeMt Painter Acropolis Four Mile Oak Dam Cane Grass Goulds Dam Oban Inferred resource 15 000 t U3O 8 Target 50 000t Crockers Well Honeymoon Yarranna Other projects Radium Hill Crockers Well: 12.5 Mt at 0.5 kg/tonne (0.05%) U3O 8
Goulds Dam: Inferred Resource 2300t U3O 8 at 0.148%
Other Deposits Hillside Mt Gee: Inferred 51.0Mt at 615ppm for 31 400t U3O 8 Adelaide ProjectsProjects to towatch watch Oban: Drillhole BE56 intersected 0.3m at 0.143% U3O 8 • MajorMajor Mines Mine Mt Gee: Inferred 51.0Mt at 615ppm for 31 400t U3O 8 Hillside: 18m @ 297ppm U O 2m @ 887ppm U O • MiningMining Developments Development 3 8, 3 8 Yarranna : 8m at 626 ppm U3O 8
The Australia - Japan Mineral Exploration Investment Seminar 2010 October 2010 Olympic Dam – Copper-Gold-Uranium-Silver BHP Billiton Ltd
CURRENT ACTIVITIES • Draft Environmental Impact Statement has been circulated for comment – awaiting Government decision in 2010 • Proposed 60 Mtpa Olympic Dam combined with existing 12 Mtpa operation, requiring construction over 11 years, will have an approximate annual production of: – 750 000 t Cu,
– 19 000 t U3 O8 – 800 000 oz Au,
– 2 900 000 oz Ag OlympicOlympic DamDam – (incl. 2 Million tonnes concentrate to China)
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Beverley Mine – Uranium Heathgate Resources Ltd
• Total Resource 7.7 Mt at 0.27% U3 O8 for a contained commodity of 21 000 t U3 O8
• Production 2009/10 ~ 650 t U3 O8 CURRENT ACTIVITIES • Successful exploration has continued in the east and south of the current mineral lease
BeverleyBeverley
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Honeymoon – Uranium Uranium One Inc – Mitsui & Co Ltd
• Indicated Resource 1.2 Mt at 0.24% containing 2900 t (6.5 Mlb) U3 O8 • Construction commenced on in-situ leach mine • Production to commence in 2010 • Estimated annual production of
400 t U3 O8
HoneymoonHoneymoon
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Oban – Uranium Curnamona Energy Ltd
• Inferred resource 8.2 Mt at 260 ppm eU3 O8 containing 2 100 t of eU3 O8 • ISR field recovery trial in progress • Acceptable flow rates achieved, establishing that the sands are sufficiently permeable
ObanOban
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Four Mile – Uranium Quasar Resources – Alliance Resources Ltd
• Tertiary sandstone-hosted mineralisation in two distinct zones: Four Mile West and Four Mile East • Inferred resource of 9.8 Mt at 0.33%
U3 O8 containing 32 000 t U3 O8 Final scoping study complete July 2010 (Alliance) • Studies recommend best rate of return on ISR production ~ 2250 tpa U3 O8
FourFour MileMile
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Crocker Well – Mt Victoria – Uranium Sinosteel PepinNini Curnamona Management Pty Ltd
• Total Resource 18.84 Mt at 281 ppm U3 O8 (cut-off grade 50 ppm) for 5290 t U3 O8 • Mineral lease application submitted • Bankable feasibility studies underway
CrockerCrocker Well
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Mullaquana – Uranium UraniumSA Ltd
• 12 Mt at an average grade of 0.02% eU3 O8 for 2700 t of contained U3 O8 • The mineralisation is being explored and evaluated to determine its amenability for an in-situ recovery mining operation • Highlight of recent drilling (MRM619) – 2.064m% with 19.42m of mineralisation at
an average grade of 1063 ppm eU3 O8 and a peak grade of 15 310 ppm eU3 O8 (or 1.531% eU3 O8 )
MullaquanaMullaquana
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Base Metals Lead – Zinc – Nickel
Claude Hills Mt Caroline Angas Resource 0.53 Mt at 3.3% Zn, 1.6% Pb, 20 g/t Ag, 0.4 g/t Au and 0.1% Cu Beltana Resource (total) 972 000 t at 29.8% Zn (316 400 t mined and stockpiled)
Aristarchus Reliance OTHER PROJECTS Beltana Reliance: Resource (ind.) of 277 000 t at 29% Zn Deposits: Menninnnie Dam Parkinson Dam Menninnie Dam Parkinson Dam Other Deposits Parndana Adelaide ProjectsProjects to to Watch watch Angas Nickel Deposits: • MajorMajor Mines Mine Parndana • Mining Development Claude Hills Mt Caroline Aristarchus
The Australia - Japan Mineral Exploration Investment Seminar 2010 October 2010 Angas – Zinc, Lead-Copper (Gold & Silver) Terramin Australia Ltd
• Reserve 2.41 Mt at 7.0% Zn, 2.72% Pb, 31 g/t Ag, 0.48 g/t Au and 0.24% Cu • Resource 0.59 Mt at 5.1% Zn, 2.1% Pb, 23 g/t Ag, 0.4 g/t Au and 0.1% Cu • Production 2009/10: 51 785 t zinc concentrate shipped to Asian smelters and 19 908 t lead-copper (gold and silver) concentrate to Port Pirie for processing • Contained metal 2009/10 – 22 489t Zn, 10 356 t Pb, 134 t Cu, 272 845 oz Ag, 2 998 oz Ag • 67 full time employees CURRENT ACTIVITIES • A new exploration model has identified opportunities to extend resources north and south of known shoots • Drilling several old mines and prospects in the region around the mine AngasAngas
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Beltana – Zinc Perilya Ltd
• Resource (total) – 972 000 t at 29.8% Zn (316 400 t mined and stockpiled/sold) • Mining and crushing operations completed Feb 2008 • Sales 2009/10 (from stockpiled ore) 38 247 t contained Zn (in high grade zinc silicate ore) • Two year agreement with Padaeng Industry Public Co for sales CURRENT ACTIVITIES • Sales of the remaining stockpiled ore expected to be completed by September 2010 • Sept 2009 decision to commence targeted exploration in the Flinders region to replace the Beltana ore BeltanaBeltana • Exploration of nearby satellite deposits (Reliance 308 000 t at 28% Zn)
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Flinders - Reliance – Zinc Perilya Ltd
• Resource of 277 000t (ind.) at 29% Zn + 31 000t (inf,) at 18.5% Zn • High-grade zinc silicate ore close to Beltana mine • Recent success at Moolooloo, positive indications for new project • Successful market established for blended product for direct shipping to Asian smelters • Project currently marginal given current metal prices (Pb/Zn~$2300)
RelianceReliance
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Coal, Coal Seam Gas, In Situ or Underground Coal Gasification, Coal to Liquids
• SA has mineable coal measures and Altona Icon, AGL buried coal-bearing basins Strike • no CSG production yet Linc • CSG and ISG being actively explored with seismic and drilling: White Energy • Eromanga Basin CSG (AGL, Icon) • Southern Cooper CSG, ISG (Strike)
200 km • Arckaringa & Walloway Ororroo ISG, CSG (Linc)
Coal deposit • Kingston – CTL (Hybrid)
Petroleum tenements Selected petroleum exploration licence (PEL) Selected petroleum exploration licence application (PELA) Coal-bearing Syngas sedimentary basins Mesozoic Hybrid Permian Tertiary
The Australia - Japan Mineral Exploration Investment Seminar 2010 Leigh Creek – Coal Alinta Energy Ltd
• Production 2009/10 – 3 .7 Mt • Most technologically advanced and productive open-cut coalfield in the world • Produces hard brown coal exclusively for Flinders Power Northern (540 MW) and Playford (240 MW) power stations • Coal transported by rail over 250 km from Leigh Creek to power stations at Pt Augusta • Provides 40% of South Australia’s electricity needs CURRENT ACTIVITIES: • Mining continues at Lobe B, rehabilitation currently underway on northern fields Lobe C and D
• Exploration for new resources continuing LeighLeigh CreekCreek • 250 km from Leigh Creek to Pt Augusta
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Arckaringa – Coal to Liquid Fuels CNOOC-NEI/Altona Resources Ltd
• Wintinna JORC estimate 1.287 Bt • Non-JORC Resource estimate – 7.5 Bt • Pre-feasibility study includes completion of key technical aspects • 10 million barrels per year – Diesel – jet fuel • 560 MW of power for export • Estimated 50–100 years of mine life
ArckaringaArckaringa
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Arckaringa – Coal to Liquid Fuels CNOOC-NEI /Altona Energy Plc
• CNOOC-NEI Bankable Feasibility Study work programme approved September 2010 • First Stage (AU$12million) commence last quarter 2010 - 12 months to complete, followed by Second Stage (AU$28 million) • Approved work program to include – detailed review of coal deposit geology and consideration of supplemental drilling; – groundwater investigation and verification; – groundwater management research and design; – environmental baseline studies; – open cut coal mining methodology options; and ArckaringaArckaringa – product market research
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Arckaringa and Walloway Basins – Underground Coal Gasification to Gas to Liquids Linc Energy
• Drilling and exploration continue in the Arckaringa and Walloway Basins to target deep coal, suitable for Underground Coal Gasification UCG • Tenement holdings cover 74,027 sq km Arckaringa and Walloway Basins • Arckaringa Basin – Oil show in Maglia-1, Arckaringa Basin, Exploration program expected to start 2011 – 6 well exploration in Arckaringa Basin completed, Four appraised coal accumulations, 2 to provide baseline groundwater data. • Walloway Basin exploration accelerated – August 2009 JORC 1.0 -1.3billion tonnes coal mineralisation – January 2010 Exploration program commended to assess lateral extent of coal, coal quality, overburden geology and hydrogeology. 30 well completed. • July 2010 Contract to conduct Prefeasibility Study on proposed UCG for power generation project in South Australia awarded to UHDE Sheden and Sinclair Knight Merz, scheduled for completion end 2010 ArckaringaArckaringa • September 2010 Project Office opened in Adelaide
WallowayWallowaySeptember 2009
The Australia - Japan Mineral Exploration Investment Seminar 2010 Clinton Project– Coal to Liquids Syngas Ltd
• 558 Mt total resource (ind. & inf.) at 56.7% moisture, 7.4% ash, 19.6% volatiles, 16.3% fixed carbon, 1.1% sulphur for 10 MJ/kg • Clinton Coal (lignite) primary feedstock supplemented by locally sourced non-food biomass (Coal-Biomass-to-Liquid project) • Large scale, long term premium diesel production facility ~ 14 600 barrels/day • Bankable Feasibility Study underway, expected completion 2011
ClintonClinton
The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 Futurgas – Coal to Liquids Hybrid Energy Ltd
• 578 Mt JORC compliant lignite resource • Proposed project: – surface mine – coal to liquids conversion facility – low-emissions power generation plant
FuturgasFuturgas The Australia - Japan Mineral Exploration Investment Seminar 2010 September 2010 SOUTH AUSTRALIA’S ADVANTAGES
• Highly regarded as a mineral producer and developer with excellent exploration potential • South Australia is a major producer of copper and uranium and is the largest producer of iron ore outside of the giant Pilbara region of Western Australia • 20-30 Development projects continue to progress – copper, uranium, iron ore, gold, zircon, base metals, CTL • Streamline State and Commonwealth Regulatory approval process Target: Mining and Rehabilitation Plan (MARP) approvals within 6 month of submission (e.g. Prominent Hill) • A world class geological environment. Many high potential advanced exploration projects underway – multiple commodities • South Australia is the junction of Australia’s road, rail and air corridors – the state’s geographic advantage is now enhanced by the Adelaide to Darwin railway, which has created links to Asia
The Australia - Japan Mineral Exploration Investment Seminar 2010 Explorers Guide to South Australia
The Explorers Guide provides: • an overview of the key exploration analogues in South Australia
• A detailed review of the geology of South Australia
• A wide range of publications
• Including Minerals, Petroleum and Geothermal GIS Viewer
The Australia - Japan Mineral Exploration Investment Seminar 2010 Explorers Guide to South Australia
Some of the products contained on the Explorers Guide DVD
The Australia - Japan Mineral Exploration Investment Seminar 2010 SARIG – www.sarig.pir.sa.gov.au
A web-enabled application developed by PIRSA for the delivery of South Australia’s open file spatial data and geoscientific information Minerals : Petroleum : Geothermal :
• View, query and download spatial data • Search and download geophysical data • Online mineral exploration licence applications • Search and download from geoscientific databases
The Australia - Japan Mineral Exploration Investment Seminar 2010 PACE 2020
• Key government-funded resource initiatives • 2004 – 2011 Plan for Accelerating Exploration – PACE $30.9m • 2010 – 2014 PACE 2020 $10.2m includes PACE Exploration PACE Mining PACE Global
• PACE 2020 will directly support and influence: – Innovative geoscience within the Geological Survey – The streamlining of the mining approval process – Collaborative geoscientific programs with industry (including drilling), universities and state and federal government agencies – The creation and distribution of new and historic geoscientific data to the industry, investors and the general public – Continuing cultural exchanges between the regional communities, the industry and government – The promotion of South Australia’s mineral wealth, both nationally and internationally
The Australia - Japan Mineral Exploration Investment Seminar 2010 PACE 2020 – Themes
• PACE Exploration – Foster innovation and integration within Government – Support and collaborate with external agencies, academia and industry – Deliver pre-competitive data to reduce the risk in exploration • PACE Mining – Establish best practice public consultation guidelines – Shorten Mining Lease approval timing (< 6 months) – Develop online management toolkits • PACE Global – Expand PIRSA data availability and delivery – Diversify the SARIG toolkit beyond applications
The Australia - Japan Mineral Exploration Investment Seminar 2010 The Australia - Japan Mineral Exploration Investment Seminar 2010 Disclaimer
• The information contained in this presentation has been compiled by the Department of Primary Industries and Resources (PIRSA) and originates from a variety of sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for general information only and does not purport to be professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials.
• PIRSA and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of these materials. PIRSA reserves the right to update, amend or supplement the information from time to time at its discretion.
The Australia - Japan Mineral Exploration Investment Seminar 2010