<<

Cairn Hill Magnetite- Copper-Gold Project

Mining and Rehabilitation Program

20 November 2008

(100% owned subsidiary of IMX Resources)

Document / Project Summary Information Mine owner Termite Resources NL Mine operator Termite Resources NL Contact person Duncan McBain, Managing Director

Contact details Level 2, 100 Railway Road Subiaco WA 6008 PO Box 1784 West Perth WA 6872 Telephone: +61 8 93887877 Facsimile: +61 8 93822399 Email [email protected] Name of mining operation Cairn Hill Commodity to be mined Magnetite-Copper-Gold Document Title Cairn Hill Magnetite – Copper – Gold Mining Project Mining and Rehabilitation Program ML Granted 17 April 2008 ML number ML6303

Please note that when viewed electronically this document may contain pages that have been intentionally left blank. These blank pages may occur because in consideration of the environment and for your convenience, this document has been set up so that it can be printed correctly in double-sided format.

MARP FINAL NOV 08 Cairn Hill Magnetite-Copper-Gold Mining Project

Contents

1. INTRODUCTION...... 1

1.1 PROJECT BACKGROUND ...... 1 1.2 OPERATIONAL OVERVIEW ...... 1 1.2.1 Mining Operations ...... 1 1.2.2 Land Ownership...... 2 1.3 PURPOSE AND STRUCTURE OF THIS DOCUMENT...... 8 1.3.1 Purpose ...... 8 1.3.2 Structure...... 8 2. LEGISLATIVE REQUIREMENTS ...... 10

2.1 SOUTH AUSTRALIAN LEGISLATION...... 10 2.1.1 Mining Act 1971...... 10 2.1.2 Development () Act 1993...... 11 2.1.3 Native Title (South Australia) Act 1994 ...... 11 2.1.4 Defence Force Act 1952...... 11 2.1.5 Environment Protection Act 1993 ...... 12 2.1.6 Natural Resources Management Act...... 12 2.1.7 Native Vegetation Act 1991...... 13 2.1.8 National Parks and Wildlife Act 1972...... 13 2.1.9 Opal Mining Act 1995...... 13 2.1.10 Other Relevant State Legislation...... 14 2.2 COMMONWEALTH LEGISLATION...... 15 2.2.1 EPBC Act ...... 15 3. STAKEHOLDER CONSULTATION...... 17

3.1 ISSUES APPRECIATION ...... 17 3.2 CONSULTATION OBJECTIVES ...... 17 3.3 STAKEHOLDER ANALYSIS ...... 18 3.4 APPROACH ...... 19 3.5 CONSULTATION UNDERTAKEN ...... 19 3.6 ONGOING CONSULTATION ...... 19 4. DESCRIPTION OF LAND AND ENVIRONMENT...... 21

4.1 SURROUNDING LAND USE AND LOCAL GOVERNMENT ...... 21 4.1.1 Surrounding Land Use ...... 21 4.1.2 Local Government...... 21 4.2 CLIMATE...... 21 4.3 TOPOGRAPHY AND LANDSCAPE ...... 22 4.4 GEOLOGY AND SOILS...... 23 4.4.1 Regional Geology...... 23 4.4.2 Deposit Geology...... 23 4.4.3 Soils...... 26 4.5 SURFACE WATER...... 27 4.6 HYDROGEOLOGY ...... 29 4.6.1 Regional Setting ...... 31 4.6.2 Local Setting...... 32 4.6.3 Results of Investigations...... 34 4.7 NATIVE VEGETATION ...... 40 4.7.1 Regional Context...... 40 4.7.2 Site Investigations ...... 41

MARP FINAL 051108.DOC Page i Cairn Hill Magnetite-Copper-Gold Mining Project

4.7.3 Local Habitat Types ...... 41 4.7.4 Site Vegetation Associations ...... 41 4.8 FAUNA ...... 44 4.8.1 Regional Context...... 44 4.8.2 Site Investigations ...... 45 4.8.3 Listed Threatened Species...... 45 4.8.4 Existing Site Conditions ...... 46 4.8.5 Survey Results ...... 46 4.8.6 Mammals...... 47 4.8.7 Birds...... 47 4.8.8 Reptiles and Amphibians...... 48 4.8.9 Discussion of Threatened Species ...... 49 4.8.10 Referral under the EPBC Act...... 53 4.9 PEST PLANTS AND ANIMALS ...... 53 4.9.1 Plant Species ...... 53 4.9.2 Animal species...... 53 4.9.3 Pathogens...... 53 4.10 GEOHAZARDS ...... 54 4.10.1 Acid Rock ...... 54 4.10.2 Asbestiform Minerals ...... 55 4.10.3 Radioactivity ...... 55 4.10.4 Earthquakes...... 55 4.10.5 Flooding...... 56 4.11 AIR QUALITY ...... 56 4.12 NOISE...... 56 4.13 HERITAGE ...... 56 4.14 SOCIO-ECONOMIC...... 59 4.14.1 Study Area...... 59 4.14.2 Population...... 59 4.14.3 Employment...... 59 4.14.4 Income...... 60 4.14.5 Tourism ...... 60 4.14.6 Community Services and Facilities ...... 60 4.15 INFRASTRUCTURE AND TRANSPORT...... 61 4.15.1 Infrastructure ...... 61 4.15.2 Transport Network ...... 61 5. DESCRIPTION OF MINING OPERATIONS ...... 63

5.1 OPERATION OVERVIEW...... 63 5.1.1 Project Footprint...... 64 5.2 5.2 ORE RESERVES & MARKET ...... 64 5.2.1 Geological Environment ...... 64 5.2.2 Geotechnical Engineering...... 66 5.2.3 Reserves and Resources ...... 68 5.2.4 Market ...... 69 5.3 MINING OPERATIONS...... 69 5.3.1 Mining Operations to Occur ...... 69 5.3.2 Sequence of Operation ...... 71 5.3.3 Modes and Hours of Operation...... 72 5.3.4 Use of Explosives ...... 72 5.3.5 Type of Equipment...... 73 5.4 ORE HAULAGE AND STOCKPILES ...... 74 5.4.1 Ore Stockpiles and Waste Dumps ...... 74

MARP FINAL 051108.DOC Page ii Cairn Hill Magnetite-Copper-Gold Mining Project

5.4.2 Modes and Hours of Haulage ...... 75 5.4.3 Type of Equipment...... 75 5.5 CRUSHING AND PROCESSING ...... 76 5.5.1 Crushing Plant ...... 76 5.5.2 Hours of Operation ...... 77 5.5.3 Type of Equipment...... 77 5.6 MINE WASTE ...... 78 5.6.1 Waste Dump ...... 78 5.6.2 Industrial and Domestic Wastes...... 81 5.6.3 Silt Control and Drainage...... 81 5.7 SUPPORTING SURFACE INFRASTRUCTURE...... 85 5.7.1 Road Access ...... 85 5.7.2 Rail Siding...... 85 5.7.3 Accommodation and Offices...... 85 5.7.4 Public Roads, Services and Utilities used by the Operation ...... 85 5.7.5 Visual Screening and Site Security...... 86 5.8 RESOURCE INPUTS ...... 86 5.8.1 Workforce...... 86 5.8.2 Energy Sources...... 87 5.8.3 Fuel Storage...... 87 5.8.4 Water Sources ...... 87 6. ENVIRONMENTAL IMPACT ASSESSMENT...... 89

6.1 APPROACH ...... 89 6.1.1 Mine Operations...... 89 6.1.2 Identification of Issues, Aspects and Impacts...... 89 6.1.3 Risk Identification and Assessment ...... 89 6.1.4 Risk Acceptance ...... 91 6.1.5 Control and Management Measures ...... 92 6.1.6 Environmental Objectives, Predicted Outcomes and Assessment Criteria ...... 92 6.1.7 Predicted Outcomes and Assessment Criteria...... 92 6.2 FLORA (NATIVE VEGETATION) ...... 93 6.2.1 Context ...... 93 6.2.2 Potential Impacts ...... 93 6.2.3 Design Control and Operational Management Measures...... 95 6.2.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 95 6.3 FAUNA ...... 99 6.3.1 Context ...... 99 6.3.2 Potential Impacts ...... 99 6.3.3 Design Control and Operational Management Measures...... 101 6.3.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 101 6.4 GROUNDWATER ...... 105 6.4.1 Context ...... 105 6.4.2 Potential Impacts ...... 105 6.4.3 Design Control and Operational Management Measures...... 107 6.4.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 108 6.5 SURFACE WATER ...... 110 6.5.1 Acid Rock Drainage ...... 110 6.5.2 Spills of Fuel, Oil and Chemicals...... 110 6.5.3 Design Control and Operational Management Measures...... 110 6.5.4 Operational Management Measures...... 110 6.5.5 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 111 6.6 DUST AND AIR QUALITY...... 114

MARP FINAL 051108.DOC Page iii Cairn Hill Magnetite-Copper-Gold Mining Project

6.6.1 Context ...... 114 6.6.2 Potential Impacts ...... 114 6.6.3 Design Control and Operational Management Measures...... 115 6.6.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 115 6.7 NOISE AND VIBRATION ...... 116 6.7.1 Potential Impacts ...... 116 6.7.2 Design Control and Operational Management Measures...... 116 6.7.3 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 117 6.8 RADIATION AND ASBESTIFORM MATERIALS...... 117 6.8.1 Context ...... 117 6.8.2 Potential Impacts ...... 118 6.8.3 Design Control and Operational Management Measures...... 118 6.8.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 118 6.9 LAND USE AND SOILS ...... 119 6.9.1 Context ...... 119 6.9.2 Potential Impacts ...... 119 6.9.3 Design Control and Operational Management Measures...... 120 6.9.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 120 6.10 VISUAL AMENITY ...... 123 6.10.1 Context ...... 123 6.10.2 Potential Impacts ...... 123 6.10.3 Design Control and Operational Management Measures...... 123 6.10.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 124 6.11 INDIGENOUS AND NON-INDIGENOUS HERITAGE ...... 124 6.11.1 Context ...... 124 6.11.2 Potential Impacts ...... 124 6.11.3 Design Control and Operational Management Measures...... 125 6.11.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria...... 125 6.12 RISK LEVEL SUMMARY AND DISCUSSION ...... 127 6.12.1 Summary...... 127 6.12.2 Discussion ...... 127 7. ENVIRONMENTAL MANAGEMENT AND REPORTING...... 128

7.1 MINE NATIVE VEGETATION MANAGEMENT PLAN (NVMP)...... 128 7.1.1 Introduction...... 128 7.1.2 Objectives and Principles...... 128 7.1.3 General Site Vegetation ...... 128 7.1.4 Significant Fauna Habitat...... 129 7.1.5 Vegetation Clearance...... 129 7.1.6 Management and Mitigation ...... 131 7.2 NATIVE FAUNA MANAGEMENT PLAN ...... 132 7.2.1 Introduction...... 132 7.2.2 Objective ...... 132 7.2.3 Fauna Management ...... 132 7.3 WEED AND PEST MANAGEMENT PLAN ...... 133 7.3.1 Introduction...... 133 7.3.2 Objectives...... 133 7.3.3 Weed Management...... 133 7.3.4 Pest Management...... 133 7.4 DUST MANAGEMENT PLAN...... 134 7.4.1 Introduction...... 134 7.4.2 Objectives...... 134 7.4.3 Dust Management ...... 134

MARP FINAL 051108.DOC Page iv Cairn Hill Magnetite-Copper-Gold Mining Project

7.5 GROUNDWATER MANAGEMENT PLAN ...... 134 7.5.1 Introduction...... 134 7.5.2 Objectives, Predicted Outcomes and Assessment Criteria...... 134 7.5.3 Groundwater Management ...... 135 7.5.4 Groundwater Monitoring ...... 135 7.5.5 Replacement Groundwater Supply for Pastoralist...... 135 7.6 SURFACE WATER MANAGEMENT PLAN ...... 136 7.6.1 Introduction...... 136 7.6.2 Objective, Predicted Outcomes and Assessment Criteria ...... 136 7.6.3 Surface Water Management...... 137 7.7 LAND MANAGEMENT PLAN ...... 137 7.7.1 Introduction...... 137 7.7.2 Objective Predicted Outcomes and Assessment Criteria ...... 137 7.7.3 Land Management...... 138 7.8 HAZARDOUS MATERIALS MANAGEMENT PLAN...... 138 7.8.1 Introduction...... 138 7.8.2 Objective Predicted Outcomes and Assessment Criteria ...... 138 7.8.3 Hazardous Material Management...... 138 7.9 SUMMARY OF ENVIRONMENTAL MANAGEMENT COMMITMENTS ...... 139 7.9 ENVIRONMENTAL MANAGEMENT REPORTING ...... 143 7.9.1 Mining and Rehabilitation Compliance Report ...... 143 7.9.2 SEB...... 143 8. MINE CLOSURE AND REHABILITATION PLAN...... 144

8.1 INTRODUCTION ...... 144 8.2 PRINCIPLES ...... 144 8.3 ENVIRONMENTAL IMPACT ASSESSMENT...... 144 8.3.1 Potential Impacts ...... 144 8.4 REHABILITATION AND CLOSURE...... 145 8.4.1 Decommissioning ...... 145 8.4.2 Rehabilitation...... 145 8.5 MANAGEMENT MEASURES DURING MINING OPERATIONS ...... 146 8.5.1 Residual Risk Acceptance, Outcomes and Assessment Criteria...... 146 8.6 CLOSURE COST ESTIMATE ...... 149 8.6.1 Mine Closure Cost Assumptions...... 149 8.7 MINE CLOSURE SCHEDULE ...... 150 9. MANAGEMENT SYSTEMS...... 152

9.1 MANAGEMENT PLAN OBJECTIVES ...... 152 9.2 SUPPLIER AND SUBCONTRACTOR MANAGEMENT PLAN OBJECTIVES...... 152 9.2.1 Health, Safety, Environment and Quality...... 152 9.3 OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT PLAN OBJECTIVES ...... 153 10. BIBLIOGRAPHY ...... 154

MARP FINAL 051108.DOC Page v Cairn Hill Magnetite-Copper-Gold Mining Project

List of Figures Page Number Figure 1.1 Cairn Hill Project Location…………………………….……………………………………...…...4 Figure 1.2 Mining Lease Area…………………………………………………………………………………5 Figure 1.3 Mining Lease and Associated Infrastructure……………………………………………...…….6 Figure 1.4 Exploration Licenses and Crown Leases……………………………………………………… 7 Figure 4.1 Solid Geology Interpretation of the Gawler Craton……………………………………………24 Figure 4.2 Cairn Hill Project Local Geology………………………………………………………………...25 Figure 4.3 Cairn Hill Prospect Geology……………………………………………………………………..26 Figure 4.4 Surface Water Catchment, Enginina Creek to the MLA Boundary………………………….28 Figure 4.5 Regional Hydrogeological Setting…………………………….………………………………..30 Figure 4.6 Local Gravity Data………………………………………………………………………………..33 Figure 4.7 Bores and Exploration Holes……………………………………………………………………36 Figure 4.8 Indigenous Heritage Exclusion Zones………………………………………………………….58 Figure 5.1 Isometric View of the Cairn Hill Magnetite, Copper and Gold Mineralisation……..………..65 Figure 5.2 Plan View of the Magnetite, Copper and Gold Interpretations (wire frames) and the Associated Drilling……………………………………………………………………………….66 Figure 5.3 Cairn Hill Starter Pit (not to scale)………………………………………………………………70 Figure 5.4 Cairn Hill Pit 1 (not to scale)………………………………………………………………….….70 Figure 5.5 Cairn Hill Pit 2 (not to scale)……………………………………………………………………..70 Figure 5.6 Cairn Hill Pits (including Trial Pit) (not to scale)……………………………………….………71 Figure 5.7 ROM Pad Location………………………………………………………………………..………75 Figure 5.8 Waste Dump Location………………………………………………………………………..…..80 Figure 5.9 Run Off Dams…………………………………………………………………………………..…82 Figure 5.10 Surface Water Management……………………………………………………….……………84 Figure 7.1 Vegetation Clearance Areas…………………………………………………………………...131

List of Plates Page Number

Plate 4.1 Stony plains at Cairn Hill with mesas in distance 22 Plate 4.2 Incised Engenina Creek south of the proposed pit 27 Plate 4.3 Ill-defined Engenina Creek east of the proposed pit 29

Appendices

Appendix A Crown Leases Appendix B Climate Data Summary Appendix C Groundwater Reports Appendix C1 Cairn Hill Magnetite-Copper-Gold Project Mining Proposal – Groundwater Studies Appendix C2 Cairn Hill Groundwater Supply Investigation Appendix D Flora and Fauna studies Appendix D1 Vegetation Association Details Appendix D2 Cairn Hill Flora and Fauna Assessment, Coober Pedy, July 2007 Appendix D3 Cairn Hill Targeted Survey and Regional Assessment, Coober Pedy, December 2006 Appendix E Acid Rock Drainage Potential Study Appendix F Regional Socio Economic Data Appendix G Geomek EWMARP Cairn Hill SA Appendix H Management Systems Appendix H1 Risk Management Appendix H2 OHS Management Appendix H3 Supplier and subcontractor Management

MARP FINAL 051108.DOC Page vi Cairn Hill Magnetite-Copper-Gold Mining Project

Appendix I Environmental Risk Register Appendix J Stakeholder Consultation Record Appendix K Mine Closure Cost Estimate

MARP FINAL 051108.DOC Page vii Cairn Hill Magnetite-Copper-Gold Mining Project

1. Introduction

1.1 Project background

The Cairn Hill Magnetite-Copper-Gold Project (Cairn Hill) has been developed from the exploration of seven granted mining tenements covering an area of 4,430 km2, referred to as the Mt Woods Project.

IMX Resources NL (IMX) (previously known as Goldstream Mining NL) had been exploring the South Australian Gawler Craton province for approximately 10 years when in 2000, focus shifted to the Coober Pedy region with the acquisition of approximately 50% of the highly prospective Mt Woods Inlier. In 2001 the Inlier’s potential was highlighted by the discovery of the Prominent Hill deposit on adjacent tenements.

In 2002, IMX entered into a Joint Venture with Anglo American. Anglo completed extensive and detailed ground gravity surveys, alteration mapping, historic data review and established a new geological framework. The project was returned to IMX in early 2004.

During 2004, IMX completed a review of the updated project information and identified several target styles for investigation, including the historic Cairn Hill magnetite-hosted copper-gold deposit. In 2005 and 2006 extensive exploration and mineralisation of the Cairn Hill deposit was undertaken. A preliminary desktop scoping study was undertaken to assess the viability of the project. As a result of the outcomes of this desktop scoping study a Feasibility Study was commenced. The Feasibility study was completed in mid 2007.

In July 2007, Termite Resources NL (a 100% owned subsidiary of IMX) submitted a Mining Lease (ML) application (and supporting documentation) to the Department of Primary Industries South Australia (PIRSA) to facilitate the recovery of gold, copper and iron from the Cairn Hill project area. The Mining Lease (ML6303) which covers approximately 80.06 km2 was granted by the Minister for Mineral Resource Development on 17 April 2008.

In June 2008 Termite Resources submitted Miscellaneous Purpose Licenses (MPL) and Extractive Minerals Lease (EML) applications (and supporting documentation) for ancillary infrastructure which are located outside the ML area (haul road, supply bore and infrastructure, rail sidings and borrow pits)

TR undertook trial mining operations within the ML during July 2008. This work resulted in the extraction of approximately 20,000 t of ore and provided valuable information concerning both waste rock and ore characteristics.

1.2 Operational overview

1.2.1 Mining Operations

IMX through its wholly-owned subsidiary TR will develop the Cairn Hill project. The project is located approximately 700 km north-north west of and approximately 50 km south east of Coober Pedy (Figure 1.1).

The project involves the mining of approximately 7 million tonnes (Mt) of indicated ore resources contained within two pits in the western portion of the ML. The Cairn Hill Mineral Resource estimate as at June 2007 (40% Fe metal equivalent cut-off) for an in-situ and undiluted resource was:

MARP FINAL 051108.DOC Page 1 Cairn Hill Magnetite-Copper-Gold Mining Project

Indicated: 10.5 million tonnes of ore Inferred: 4.2 million tonnes of ore.

The resource has been classified on the basis of the Fe, Cu and Au grades as follows:

Iron (Fe) as magnetite = 51.9% Copper (Cu) = 0.4% Gold (Au) = 0.12 g/t.

The mine operations consist of two open pits located to extract the northern and southern mineralisation identified within the ML.

The operations will involve the extraction and on-site crushing of ore for direct export for processing. The crushed ore will be transported in bulk by road to the proposed rail siding and then by rail to Darwin, for export by ship.

Facilities associated with the mine operation include the mine pits, crushing facilities (mobile or permanent), waste rock dumps, offices and workshops, bores, mine site roads, potentially an explosive storage facility, a reverse osmosis (RO) plant. Location of this infrastructure is shown on Figure 1.2.

Infrastructure associated with the mine (but located outside/adjacent to the ML) include part of a water supply borefield and a proposed haul road to a proposed rail siding, as shown on Figure 1.3. The establishment and operation of this ancillary infrastructure for the main project will be facilitated by the establishment of either Miscellaneous Purpose Licenses (MPL’s) or Development Applications (DA’s).

1.2.2 Land Ownership

The mining lease area, current pastoral access road and proposed haul road and rail siding (to be used for the main project) are situated within three Crown Leases (details included in Figure 1.4). These leases were granted by the Crown for pastoral activities such as sheep and cattle grazing. The exploration leases associated with the project are shown on Figure 1.3.

Details of all crown leases relevant to the project are provided in Table 1.1 and copies of the original crown leases relevant to the trial mining operation (the ML area) are contained in Appendix A.

Table 1.1 Land Tenure Details

Project area/ Exploration Crown Lease Pastoral no. Station name Owner infrastructure Licence Infrastructure and ML6303 CL1628/71 2527 Ingomar Station Derry James mine pit(s) Maynard Future mine pit ML6303 CL1159/4 2147 McDouall Peak McDouall Peak extension EL3518 Station Pty Limited Extension of the EL3518 and CL1628/71 2527 Ingomar Station Derry James borefield EL3445 Maynard Current pastoral EL3518 and CL1628/71 2527 Ingomar Station Derry James access road EL3445 Maynard Haul road and EL3518, CL1628/71 2527 and Ingomar Station Derry James rail siding EL3830, and 2508 and Maynard and EL3437 and CL1597/74 Mount Clarence Walarintja EL3336 Landholding Inc

MARP FINAL 051108.DOC Page 2 Cairn Hill Magnetite-Copper-Gold Mining Project

Resource ML6303 CL1628/71 2527 Ingomar Station Derry James definition drilling EL3518 Maynard

MARP FINAL 051108.DOC Page 3 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 1.1 Cairn Hill Project Location

MARP FINAL 051108.DOC Page 4 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 1.2 Mining Lease Area

MARP FINAL 051108.DOC Page 5 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 1.3 Mining Lease and Associated Infrastructure

MARP FINAL 051108.DOC Page 6 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 1.4 Crown Leases and Pastoral Properties

MARP FINAL 051108.DOC Page 7 Cairn Hill Magnetite-Copper-Gold Mining Project

1.3 Purpose and Structure of this Document

1.3.1 Purpose

This is the Mining and Rehabilitation Program (MARP) for the Cairn Hill Magnetite-Copper- Gold Project.

The MARP covers the mining activities outlined in Section 5 of this document and has been prepared using PIRSA’s ‘Guidelines for the Preparation of a Mining and Rehabilitation Program (MARP)’, Version 4.8, June 2007.

The MARP builds on the project information provided to Primary Industries and Resources South Australia (PIRSA) for the Mining Lease application, the Early Works Mining and Rehabilitation Program (EWMARP) and specifically details the control measures, predicted environmental outcomes and monitoring criteria (Sections 6 and 7) to be implemented by TR during the mining activities.

1.3.2 Structure

This MARP has been structured in the following manner:

Section 1 Introduction Provides an overview of the project and outlines the purpose and structure of the MARP.

Section 2 Legislative Requirements Provides details on the legislative requirements associate with the project. Details applicable legislation and relevance to the project.

Section 3 Stakeholder Consultation Provides an overview of the stakeholder consultation undertaken to date and the activities proposed during operations of the mine.

Section 4 Description of Land and Environment Provides an overview of the existing land and environment in which the project is located. This section is supported by various specialist sub consultants’ reports that are contained in the document Appendices.

Section 5 Description of Operations Provides a description of the operation.

Section 6 Environmental Impact Assessment (EIA)

MARP FINAL 051108.DOC Page 8 Cairn Hill Magnetite-Copper-Gold Mining Project

Discusses the environmental impacts associated with the project. The impact assessment process is based on risk assessment procedures as required by PIRSA. Also details environmental objectives and predicted environmental outcomes associated with the project and the assessment criteria from which TR will monitor the outcomes.

Section 7 Environmental Management and Reporting Details the environmental management and reporting to be undertaken during mining operations.

Section 8 Mine Closure and Rehabilitation Plan Discusses the projects closure and rehabilitation plan

Section 9 Management Systems

Section 10 Bibliography

MARP FINAL 051108.DOC Page 9 Cairn Hill Magnetite-Copper-Gold Mining Project

2. Legislative Requirements

Mining in South Australia is primarily governed by the Mining Act 1971 and Regulations (as as the Offshore Minerals Act 2000 and the Opal Mining Act 1995). In addition to the primary approval and regulation of mining projects via the Mining Act, there are a number of additional South Australian and Commonwealth Acts and regulatory processes that affect exploration work and operational activities associated with the project.

2.1 South Australian Legislation

2.1.1 Mining Act 1971

2.1.1.1 Mining Lease

The Mining Act 1971 regulates all activities associated with mining in South Australia (e.g. exploration, lease requirements, licences etc). The Act is administered by PIRSA and requires that the construction and operation of a mining operation can only be undertaken with an approved ML.

All MLs require that the mining operation is carried out in an orderly and skilful manner in accordance with an approved MARP and appropriate bond in place.

As required by the Act, TR submitted an application for a ML which included supporting documentation detailing the operations and detailed description of the existing environment.

2.1.1.2 Mining and Rehabilitation Program (MARP)

Prior to the commencement of construction and operation of mining activities, a MARP must be submitted and approved by PIRSA.

As outlined above, TR is proposing to establish a mining operation for the Cairn Hill project and has developed an MARP to detail how these activities will be undertaken and managed.

The MARP will become the key operational document for environmental management at the mine site. A stamped, numbered copy of the MARP must be kept on site at all times, and must be reviewed at no longer interval than every seven years. Earlier review may be required, however, if additional significant environmental risks are identified, lease renewal is required, if there is a change in the operation or operator, if the MARP is not proving to be adequate in addressing environmental risks or if there is a change in community or stakeholder expectations regarding the operation (sufficient for PIRSA to require an update).

2.1.1.3 Miscellaneous Purpose Licences

Construction of infrastructure associated with a mining development (but not within the ML area) requires the application for a Miscellaneous Purpose Licence(s) (MPLs). MPLs may be used for ancillary purposes such as:

for the carrying on of any business that may conduce to the effective conduct of mining operations or provide amenities for persons engaged in the conduct of mining operations for establishing and operating plant for the treatment of ore recovered in the course of mining operations

MARP FINAL 051108.DOC Page 10 Cairn Hill Magnetite-Copper-Gold Mining Project

for drainage from a mine for the disposal of overburden or any waste produced by mining operations any other purpose ancillary to the conduct of mining operations.

Prior to the commencement of the main operations however, MPLs or Development Applications will be required for the proposed haul road to the proposed rail siding and a supply bore which is located outside the ML area.

2.1.2 Development (South Australia) Act 1993

The Development Act (SA) 1993 provides for planning and regulates development in the State; to regulate the use and management of land and buildings, and the design and construction of buildings; to make provision for the maintenance and conservation of land and buildings where appropriate; and for other purposes.

The location of the proposed development falls within the Remote Areas Zone as detailed in the Eyre and Far North sections of the Land Not Within a Council Area – Eyre, Far North, Riverland and Development Plan consolidated 16 August 2007.

The Development Plan anticipates and encourages significant growth and sustainable development in the mining industry, particularly in the remote Far North regions of the state.

Development Applications have been submitted to Planning SA for ancillary infrastructure consisting of the haul road, underpass and rail siding. The primary mining operation however will be developed under the Mining Act 1971.

2.1.3 Native Title (South Australia) Act 1994

The project area is subject to native title claims by the Antakarinja Matu-Yankunytjatjara and Arabunna Native Title Claimants. Work Area Clearances (WAC) have been undertaken within the Exploration Licences EL 3518, EL 3830, EL 3445, EL 3437 and E 3336. Site surveys and negotiations with the Claimants were undertaken in May, June and August 2007.

The Antakarinja Matu-Yankunytjatjara Native Title Claim (SC95/7) includes the western end of the ML, the current pastoral access road, the proposed haul road (main project) and proposed rail siding (main project). The eastern end of the ML is within a claim overlap area between the Antakarinja Matu-Yankunytjatjara claim and The Arabunna People’s Native Title Claim (SC98/2).

Native title agreements for the project were finalised in March 2008 and lodged with PIRSA on Wednesday 12 March 2008.

2.1.4 Defence Force Act 1952

The Cairn Hill Project area (including all ancillary infrastructure is located within the Woomera Prohibited Area (WPA), which has been gazetted by the Australian Government’s Department of Defence (DOD) for defence purposes.

Under Regulation 35(4) of the Act an authorisation (from the DOD) is required by TR to enter the Woomera Prohibited Area. TR have negotiated with the DOD regarding secure access to the WPA for mining purposes and access to the WPA has been granted via a Deed of Access.

MARP FINAL 051108.DOC Page 11 Cairn Hill Magnetite-Copper-Gold Mining Project

2.1.5 Environment Protection Act 1993

The Environment Protection Act 1993 (EP Act) provides for the protection of the environment; it is administered by the Environment Protection Authority (EPA).

2.1.5.1 General Environmental Duty

In addition to the various conditions of lease that have been applied to the project, TR also has a ‘general environmental duty’ under the EP Act.

This general duty (as detailed in Part 4 (Section 25)) specifies that a person must not undertake an activity that pollutes, or might pollute, the environment unless the person takes all reasonable and practicable measures to prevent or minimise any resulting environmental harm.

In determining what measures are required to be taken, consideration must be given to:

the nature of the pollution or potential pollution, and the sensitivity of the receiving environment the financial implications of the various measures that might be taken as those implications relate to the class of persons undertaking activities of the same or a similar kind the current state of technical knowledge and likelihood of successful application of the various measures that might be taken.

2.1.5.2 Authorisations

Approvals, which are administered by the EPA are required for activities which are classified as a prescribed activity of environmental significance under Schedule 1 of the Act. Authorisations for prescribed activities under the EP Act take the form of a Works Approval, Licence or Exemption.

2.1.6 Natural Resources Management Act

The extraction and use of groundwater and the diversion of any watercourses for the Cairn Hill project will be governed by the Natural Resources Management Act 2004 (NRM Act), which promotes sustainable and integrated management of the State's natural resources and provides for their protection. This act brings together three Acts, the Animal and Plant Control (Agricultural Protection and Other Purposes) Act 1986, Soil Conservation and Land Care Act 1989 and Water Resources Act 1997 and is administered by the Department of Water, Land and Biodiversity Conservation (DWLBC).

2.1.6.1 Groundwater

The area within which the Cairn Hill project is located is known as the Far North Prescribed Area (FNPWA), approximately 120–150 km south and south-west of the [Great Artesian Basin or GAB] Southwest Springs. The FNPWA incorporates the portion of the GAB which lies within South Australia and some immediately adjacent areas. The FNPWA has been set up to primarily to achieve responsible use of the GAB resources in South Australia.

Approval (in the form of a licence and water allocation) is required for extraction and use of groundwater for the project. In order to obtain a licence and allocation to extract and use groundwater TR lodged an application with DWLBC in November 2007. The application is currently being assessed.

MARP FINAL 051108.DOC Page 12 Cairn Hill Magnetite-Copper-Gold Mining Project

2.1.6.2 Surface Water

Surface water in the area of the Cairn Hill project is not prescribed, but permits under the NRM Act would normally be required for ‘water affecting activities’, such as the diversion of watercourses.

The surface water diversion required for the project will be assessed under the Mining Act approval process, rather than Natural Resources Management Act 2004, Section 5.2.4 of the Catchment Water Management Plan for the South Australian Arid Lands Region states that water affecting activities under section 127(5) of the Natural Resources Management Act 2004 that are part of a Statement of Environmental Objectives (in this case a MARP) approved under the Mining Act 1971 will not require a permit. Discussions have been undertaken with DWLBC and PIRSA and it has been determined that the MARP approval process for the project will assess these surface water activities

2.1.7 Native Vegetation Act 1991

This Act regulates the clearance, and provides for the management of, native vegetation throughout the state. It also ensures that areas of high conservation value are protected and that minor vegetation clearance is subject to a thorough assessment process. Under the Act, the clearance of native vegetation requires the consent of the Native Vegetation Council, which is advised by the Native Vegetation Branch of the Department for Land, Water and Biodiversity Conservation. Heritage Agreements are also covered and protected by this Act.

For mining projects, PIRSA currently has delegation for the administration of the Native Vegetation Act 1991 which regulates the clearance and provides for the management of native vegetation throughout the State.

This MARP includes a Native Vegetation Management Plan (NVMP) which will be assessed against the requirements of the Native Vegetation Act, including arrangements for compensation (provision of a Significant Environmental Benefit (SEB)).

2.1.8 National Parks and Wildlife Act 1972

This State Act was designed to allow for the establishment and maintenance of a system of reserves, as well as the protection of threatened species of flora and fauna. The Act identifies and protects certain species located within conservation parks and reserves, as well as any species listed under Schedules 7, 8 and 9 of the Act.

This MARP includes details regarding potential threatened fauna species in the project area, and measures to protect them including a Native Vegetation Management Plan (NVMP).

2.1.9 Opal Mining Act 1995

The Opal Mining Act came into operation in 1997 and was designed to regulate prospecting and mining for opals and other precious stones. Whilst the laws for opal mining apply throughout the state, there are special provisions within the Act that apply to the proclaimed Precious Stone Fields (PSF). The preclaimed PSF include Andamooka, Mintabie, Coober Pedy, and Stuart Creek.

The Coober Pedy precious stones field is located to the west of the ML area and the proposed haul Road, to be used for the main mining operations, passes directly through the PSF area. The location of the Coober Pedy PSF in relation to the mine infrastructure can be seen on Figure 1.3.

MARP FINAL 051108.DOC Page 13 Cairn Hill Magnetite-Copper-Gold Mining Project

2.1.10 Other Relevant State Legislation

There are a number of other South Australian Acts and polices that are, or may be, relevant to the infrastructure developments TR is undertaking in conjunction with the project.

Details of these Acts and policies are provided in Table 2.1 below.

Table 2.1 Other Relevant Legislation and Policies Related to the Project

Act Objective/purpose Relevant Section(s) How it applies to the project Radiation and To provide for the control Section 29 – Registration A study into radioactivity at Protection of activities related to of premises in which Prominent Hill was Control Act radioactive substances unsealed radioactive undertaken; the 1982 and radiation apparatus, substances are handled or concentrations were such that to protect the kept. no special precautions are environment, and the necessary. If levels of health and safety of radionuclides exceed people against the specified guidelines a licence harmful effects of to use or handle radioactive radiation. substances will be required for the project. Aboriginal To provide for the Authorisation under If an Aboriginal site is found or Heritage Act protection and Section 23 must be needs to be disturbed during 1988 preservation of obtained before disturbing the project, TR will be Aboriginal sites, objects a known Aboriginal site. required to consult with the and human remains Section 12 provides a traditional owners (Antakarinja (including burials). process for determining if a and Arabunna People) site or object is an Appropriate Work Area Aboriginal site or object. Clearances have been Section 20 controls the undertaken for the mining discovery and search for operations. Aboriginal objects and remains. Heritage To provide for the Section 16 provides the If a non Aboriginal heritage Places Act identification, recording criteria of what is site is found or needs to be 1993 and conservation of considered to be heritage disturbed during the project, places and objectives of Significance. The proposal TR will be required to consult non-Aboriginal heritage to make entry into the with the South Australian significance. South Australian heritage Heritage Council. register is provided in Section 17. Mines and To improve the Schedule 5 – The Act allows for the Works regulation and inspection Responsibilities and duties inspection of the Cairn Hill Inspection Act of mines and associated of owners and persons Mining Project works (by 1920 works. employed within mines and PIRSA) throughout the life of associated works the project. Occupational To secure the health, Part 3 – General Provisions TR is required to comply with Health Safety safety and welfare of related to occupational all aspects of the Act relating and Welfare persons at work; to health, safety and welfare. to occupational health, safety Act 1986 protect the public against and welfare. risks to health or safety arising out of, or in connection with, the activities of persons at work or the use or operation of various types of machinery.

MARP FINAL 051108.DOC Page 14 Cairn Hill Magnetite-Copper-Gold Mining Project

Act Objective/purpose Relevant Section(s) How it applies to the project Pastoral Land To make provision for Section 22 – lessee’s Under the provisions of the Management the management and obligation to comply with Act Pastoral Lessee’s are and conservation of pastoral obliged to comply with Natural Natural resource Conservation land; and for other resource Management Act Act 1989 purposes. Management Act 2004 & 2004 & Mining Act 1971 and Mining Act 1971 and any any regulations under those regulations under those Acts. Acts. Country Fires Provides for the Various provisions Prohibits (subject to Act1989 prevention, control and including: subsection provisions) the suppression of fires; to Section 36(1) lighting of fires in the open air provide for the protection during fire danger season Section 39(1) of life and property in fire The Country Fire Service and other emergencies. (CFS) can direct TR to extinguish or manage a fire or may undertake extinguishment / management of a fire themselves.

Explosives An Act to consolidate Various provisions The Director may license any Act 1936 and amend the law including: person to store explosives relating to explosives. Section 22(1) upon any premises subject to this Act. Environment No specific objective is NA Ground level nitrogen dioxide Protection established for the from the diesel motor exhaust (Air Quality) policy. (from all generators) conforms Policy 1994 to the limits as outlined in the policy. Public An Act dealing with Various Various requirements relating Environment public and environmental to the provision of toilets for and Health health site workers and maintaining Act 1987 appropriate sanitation. Environment No specific objective is 3(a) definition of non- TR (as the occupier) of a non- Protection established for the policy domestic premises domestic premises must not (Industrial includes “a mine within the cause or permit excessive Noise) Policy meaning of the Mines and noise to be emitted from the 1994 Works Inspection Act Cairn Hill Project site. 1920”. Excessive noise is noise that Sections 4 – 7 exceeds the background noise level at a measurement site (by more than 5dBA); and exceeds the maximum noise level for that time of day and the area (rural) in which the project site is situated. Provides guidance on instrumentation requirements as well as time and place of noise measurements procedures and records.

2.2 Commonwealth Legislation

2.2.1 EPBC Act

Under the provisions of the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), referral of a proposal to the Commonwealth

MARP FINAL 051108.DOC Page 15 Cairn Hill Magnetite-Copper-Gold Mining Project

Environment Minister is required for actions that may have a significant impact on matters of national environmental significance.

The EPBC Act identifies seven matters of national environmental significance:

World Heritage properties National heritage places Wetlands of international importance (Ramsar wetlands) Threatened species and ecological communities Migratory species Commonwealth marine areas Nuclear actions (including uranium mining).

The EPBC referral is necessary to determine whether a project requires assessment and approval under the Act. When a project is referred under the EPBC Act, the Commonwealth Department of the Environment, Water, Heritage and the Arts (DEWHA) makes a determination regarding the status of the proposal as a ‘Controlled Action’, ‘Not a Controlled Action’ or ‘Not Controlled Action Particular Manner’.

An EPBC Act Referral for this project was submitted to DEWHA on 28 March 2007 based on potentially significant impacts on threatened flora, fauna and migratory species resulting from vegetation clearance. Following assessment of the referral by DEWHA, the proposed action (the Cairn Hill Project) was decided to be not a controlled action (decision given on the 6 May 2008) and so does not require further assessment by DEWHA prior to commencement. Further details of the specific species are provided in Sections 4 and 6.

MARP FINAL 051108.DOC Page 16 Cairn Hill Magnetite-Copper-Gold Mining Project

3. Stakeholder Consultation

TR has developed and implemented an ongoing stakeholder engagement plan which includes the elements discussed in the section below. This consultation has led to the identification of a number of general and project specific issues.

The assessment process for the ML application provided the public with the opportunity to comment on the project during the approval phase. To ensure both stakeholders and the community are accurately informed about the project TR has continued to consult with stakeholder and community groups on an ongoing basis following submission of the ML and supporting information.

Updated details of consultation activities were provided in the Response to Submissions on the Cairn Hill Magnetite – Copper – Gold Mining Proposal document submitted to PIRSA in October 2007.

3.1 Issues Appreciation

A number of general and mine specific issues have been discussed during stakeholder consultation.

The issues (real and perceived) that have been addressed during the stakeholder consultation for the project include:

possible increases in road traffic/truck movements increases in population both at Cairn Hill and Coober Pedy the effect the mine may have on flora, fauna, surface and ground water (including the Great Artesian Basin) change of land use from agricultural production to mining the aspirations of Native Title holders, and ways to accommodate these Defence uses within the Woomera Protected area cumulative effects of other mines in the area potential for air quality (including dust) and noise to be an issue during operation potential for radiation issues competing use of water by landholders and mining local employment opportunities; and local business opportunities.

TR’s understanding of these issues has meant that it has been possible to pre-empt and effectively manage information dissemination and stakeholder consultation.

3.2 Consultation Objectives

The objectives of the stakeholder consultation for the project are to:

provide consistent accurate project related information to all stakeholders listen and respond to stakeholder concerns identify and discuss negotiable and non-negotiable components of the Cairn Hill Project with stakeholders and receive input from stakeholders for aspects of the project considered negotiable identify areas for inclusion in the Mining Lease application and MARP, and to ensure a smooth and efficient approvals process

MARP FINAL 051108.DOC Page 17 Cairn Hill Magnetite-Copper-Gold Mining Project

discuss project risks and possible mitigation measures prior to the development of the project; and receive feedback from various stakeholders prior to submission of approval documentation.

To meet these objectives TR has:

identified stakeholders and brought them together early to ensure all parties received the same information and risks and opportunities could be discussed early in the project discussed both the negotiable and non-negotiable components of the project during a workshop where the project team were able to clearly communicate the extent to which the stakeholders were able to influence various aspects of the project; undertaken ongoing consultation has required during the project approvals phases; and employed a Support Services Manager.

3.3 Stakeholder Analysis

A list of stakeholders has been identified below in Table 3.1. As the project progresses, additional stakeholders will be added, as required.

Table 3.1 Stakeholder Identification

Stakeholder group Individual stakeholder Federal, State Government Federal Minister for Industry, Tourism and Resources – Hon Ian Representatives (No local Macfarlane MP government representatives – out State Minister for Regional Development – Hon Karlene Maywald of council area) MP State Minister for Mineral Resources Development – Hon Paul Holloway MLC Federal, State and Local Department for Transport Energy and Infrastructure Government Authorities Department for Water Land and Biodiversity Conservation Department of Defence Department of the Environment, Water, Heritage and the Arts (Commonwealth) Department of Health (Aboriginal Health Division) Department of Health (Applied Environmental Health Branch) Department of the Premier and Cabinet Native Vegetation Council Planning SA Primary Industry and Resources South Australia (PIRSA) South Australian Arid Lands Natural Resources Management Board South Australian Department for Environment and Heritage South Australian Environmental Protection Authority (Operations and Radiation Sections) Native Title Claimants Antakarinja native title claimants and Arabunna native title claimants Landholders Ingomar Station McDouall Peak Station Communities Coober Pedy Glendambo

MARP FINAL 051108.DOC Page 18 Cairn Hill Magnetite-Copper-Gold Mining Project

3.4 Approach

TR’s approach to developing relationships with stakeholders and the community has been consultative with the key stakeholders and interested community groups. Engagement commenced early in the project’s development.

The approach for consultation has been (and will continue to be) to inform stakeholders of the project and to ascertain their issues and concerns associated with the approval, construction and operation of the mine.

The stakeholder analysis identified a number of different stakeholders. As a result TR’s approach to consultation has included information dissemination, government discussion, landholder meetings and issues management.

3.5 Consultation Undertaken

A number of meetings with individual stakeholders and a stakeholder workshop (on 6 December 2006) were held in the lead up to the submission of the mining lease application and its subsequent approval.

Appendix J provides a detailed summary of the meetings and/or correspondence exchanges conducted and a brief summary of the matters discussed.

In addition to the activities outlined in Table 3.1, the project has been through a public advertisement process, where the Mining Lease Application was made available for public comment (19 July to 31 August 2007). PIRSA received seven submissions in total, from government agencies and one private landholder. The submissions were addressed, along with comments received from PIRSA, in a response document that was submitted to PIRSA in October 2007.

3.6 Ongoing Consultation

TR’s approach to ongoing consultation is outlined in Table 3.2 below.

Table 3.2 Ongoing Consultation Approach

Stakeholder Program Landholder Currently regular briefings on work programs (e.g. haul route, water supply for stock) Future plans – Information sessions on the impacts of operations & the outcomes Negotiations for compensation Regular ongoing consultation during construction and operations Native Title Negotiating access agreement Land clearance has been completed on proposed ML and haul road routes Compensation, employment and business opportunities package negotiations Department of Defence Negotiating Access Deed to Woomera Prohibited Area Community Plan open forum meetings to discuss impacts of the Coober Pedy operations and the business and employment opportunities Glendambo

MARP FINAL 051108.DOC Page 19 Cairn Hill Magnetite-Copper-Gold Mining Project

Meetings and discussions with stakeholders as part of the ongoing consultation process will occur on an as required / ad hoc basis

MARP FINAL 051108.DOC Page 20 Cairn Hill Magnetite-Copper-Gold Mining Project

4. Description of Land and Environment

4.1 Surrounding Land Use and Local Government

4.1.1 Surrounding Land Use

The major land use in the project area is pastoralism, where the value of agricultural production varies from year to year due to climatic conditions and commodity prices. Pastoral industry type is based on the location of the dog fence with sheep and cattle to the south and cattle to the north (Figure 1.3 shows the location of the dog fence). The Cairn Hill mine site is located on Ingomar Station (Figure 4.2) which is located on the southern side of the dog fence.

Settlements in the wider region follow the major transport routes. The closest town is Coober Pedy, an opal mining settlement 50 km north-west of the project site.

As previously outlined the project area is located within Antakarinja Matu-Yankunytjatjara and Arabunna native title claim areas and the Woomera Prohibited Area.

Mining in the region began in Coober Pedy in 1915 when opal was discovered. The impacts of these operations are localised around the towns. There are two other larger mining operations (Prominent Hill and Olympic Dam) mining for copper and gold within 250 km of the Cairn Hill mining site. The Olympic Dam mine also produces uranium.

4.1.2 Local Government

The project area and surrounds are in an ‘Unincorporated Area’ in relation to local government administration. Development in the area is governed by the ‘Land Not Within a Council Area’ (Far North) Development Plan (consolidated 7 August 2003). The plan recognises that the natural resources, including minerals, should be managed to optimise productive efficiency of the diverse use of land while minimising land degradation, supporting economic stability and protecting the archaeological, ecological, historical, cultural and scenic values of the region. The plan is administered by Planning SA.

The District Council of Coober Pedy administers the township of Coober Pedy north of the project area and is a stakeholder with interest in the project. TR anticipates that some or the entire workforce for the Cairn Hill project will be from or live in Coober Pedy.

4.2 Climate

The climate of the Cairn Hill region is typical of a desert climate, with mild to hot sunny days year round with cold nights from April to October and warmer nights from November to March. Summer temperatures range from 35°C to 48°C in the shade with annual rainfall in the area being minimal at around 150 mm per annum. The average annual rainfall for Coober Pedy is 159.1 mm (83-year average, 1921–2004).

January and July are the hottest and coldest months respectively for the area with summer temperatures typically above 34°C and minimum winter temperatures below 10°C. Annual rainfall for the area ranges from 117.5–157.7 mm. January, February and December are the wettest months and are also the only months to exceed 20 mm; this can be associated with the northern monsoon occasionally drifting far enough south to cause rainfall. Rainfall in the region is however unpredictable, it can rain at any time of the year or not at all. Generally

MARP FINAL 051108.DOC Page 21 Cairn Hill Magnetite-Copper-Gold Mining Project

though when it does rain it will be local and very heavy and annual rainfall for the year can fall in one event (Arid Areas Catchment Water Management Board, 2006).

The predominant summer wind direction is from the south and south-east with winds generally being stronger at the 9 am recordings than the 3 pm recordings. In winter the wind direction is generally from the north to north-east at the 9 am measurement and moves to a dominant northerly by 3 pm. Detailed climate information of the region in which the project is located is provided in Appendix B.

4.3 Topography and Landscape

The project area occurs in the Stony Plains Bioregion, specifically within the breakaway environmental association as described by Laut and colleagues (1977) (cited in EBS 2006a). This association is characterised by a dissected silcrete tableland and mesas and extensive gibber-covered foot slopes on deeply weathered shales (Plate 4.1).

The project area lies at an elevation approximately 150 m above sea level, sloping to the Engenina Creek, which runs through the project area and eventually drains into Lake Cadibarrawirracana (see Figure 1.3) approximately 60 km to the north-east.

PLATE 4.1 Stony plains at Cairn Hill with mesas in distance

MARP FINAL 051108.DOC Page 22 Cairn Hill Magnetite-Copper-Gold Mining Project

4.4 Geology and Soils

4.4.1 Regional Geology

The area in which the Cairn Hill project is located is part of the larger Gawler Craton geological region (Figure 4.1).

The project area is located in the eastern portion of the Palaeoproterozoic Mount Woods Inlier, a large block of variable magnetic intensity lying to the east and southeast of the Coober Pedy Ridge and the Mabel Creek Inlier. These terranes abut an interpreted Archaean age cratonic area to their south and west. The area contains major regional structures (including the Karari Fault Zone) and is traversed by a several prominent northwest trending structures along which significant thicknesses of Permian sediments have been deposited.

The Palaeoproterozoic Mount Woods Inlier, comprises metasedimentary rocks and intrusions of syn- to post-tectonic granitoids. As a result, the Cairn Hill site is underlain mostly by Tertiary and Quaternary sediments of variable thickness overlying Cretaceous Bulldog Shale with minor Mount Anna Sandstone outcrop.

The Cretaceous Bulldog Shale comprises marine shales and silty shales with minor sandstone lenses, with an upper oxidised zone forming a white clay unit (including opal- bearing areas) grading below to dark grey to black fresh shales. The weathering of the Bulldog Shale forms the ‘Breakaways’ landforms dominant in the general area. Figure 1.3 shows the location of the ‘Breakaways’ in relation to the project.

The Mount Anna Sandstone (part of the Cadna-owie formation) outcrops to the south of the mine pit. Two outcrops of granitic bodies occur to the south of the mine pit. Figure 4.2 shows the local geological outcrops.

4.4.2 Deposit Geology

The Cairn Hill Mine is located in the north-central part of Exploration licence EL3518 (formerly EL2781), classified as ‘Mt Woods’. The deposit is a high intensity magnetic anomaly that appears to be located along a major East West to East North East (ENE) trending fault or shear zone. At a regional level the zone is highly magnetic regionally, although the Cairn Hill zone is less so, except at the very western end. This major ENE structural zone forms part of the complex boundary between the Mt. Woods Domain and the Coober Pedy Ridge.

The iron, copper and gold mineralisation on the mine site occurs in two main sub parallel sulphidic quartz-magnetite-apatite Banded Iron Formation (BIF) horizons (refer Figure 4.2) that have been tested over a 1.3 km strike to a depth of approximately 170 m. An additional 16.7 km of strike remains untested. These BIFs are characterised by stacked massive magnetite lenses with variable amounts of vein and blebby pyrite, chalcopyrite ± pyrrhotite ± bornite and sphalerite. Irregular to massive quartz veining occurs in places through the ore zone and are identified as quartz magnetite to differentiate them. Although copper and gold mineralisation is closely associated with the magnetite horizons, it also occurs in the adjacent gneissic host rocks, clearly post-dating the magnetite ironstone lithologies and highlighting its secondary nature.

MARP FINAL 051108.DOC Page 23 Cairn Hill Magnetite-Copper-Gold Mining Project

Cairn Hill

FIGURE4.1 Solid Geology Interpretation of the Gawler Craton (Gawler Craton 2004 – State of Play – PIRSA)

MARP FINAL 051108.DOC Page 24 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 4.2 Cairn Hill Project Local Geology

MARP FINAL 051108.DOC Page 25 Cairn Hill Magnetite-Copper-Gold Mining Project

The quartz-feldspar-biotite-magnetite gneisses within the mine site comprise both the footwall and hanging wall host rocks. The gneisses consist of variable amounts of banded felsic, mafic and magnetite rich zones which texturally vary from fine grained through to extremely coarse grained. Occasional granite pegmatoid natured horizons occur within the sequence. At this stage there is insufficient data to correlate the textural variations within the package in order to differentiate the footwall and hanging wall host rocks, hence they are considered to be the same lithological domain.

The geology of the ML area is outlined in Figure 4.2 with prospect geology details outlined in Figure 4.3.

FIGURE 4.3 Cairn Hill Prospect Geology

4.4.3 Soils

Based on the Environments of South Australia, Province 8 Northern Arid (Laut et al., 1977), the landscape within the mine site area forms part of the soils associated with the Breakaway Environmental Association (8.3.2), which consists of dissected silcrete tablelands and mesas with extensive gibber covered foot slopes overlying deeply weathered shales. Soils of the Breakaway Environmental Association consist of dominant moderately deep (0.3–1.0 m) crusty red duplex soils with minor silcrete outcrops and gilgai soils (EBS 2006a). The access road is also within this soil profile.

Based on previous exploration drilling, the resource is overlain by between 5 to 45 m of unconsolidated sandy gravels and clays. This cover material consists of soil, clays (Bulldog Shale) and sandy gravels (Cadna-owie Formation).

MARP FINAL 051108.DOC Page 26 Cairn Hill Magnetite-Copper-Gold Mining Project

4.5 Surface water

The Cairn Hill project is in the catchment of Engenina Creek, which in this location is an ephemeral watercourse environs. Parts of the creek bed are incised with some vegetation (Plate 4.2), whereas other parts are ill-defined (Plate 4.3). In the location of the main mining operation, the creek environs is a shallow undulating depression and contours indicate that water would not flow through this area. In the instance of heavy rains, this area may have some sheet flow.

The Engenina creek drains to Lake Cadibarrawirracana approximately 60 km to the north- east (shown on Figure 1.3). The catchment boundary in the west is along the ridgeline of the Stuart Range, which is also used as the route to minimise flooding of the highway. The catchment of Engenina Creek and its tributaries up to the point where the creek bed exits the ML is 21,250 ha (Figure 4.4).

PLATE 4.2 Incised Engenina Creek south of the proposed pit

MARP FINAL 051108.DOC Page 27 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 4.4 Surface Water Catchment, Enginina Creek to the MLA Boundary

MARP FINAL 051108.DOC Page 28 Cairn Hill Magnetite-Copper-Gold Mining Project

PLATE 4.3 Ill-defined Engenina Creek east of the proposed pit

4.6 Hydrogeology

A number of hydrogeological domains exist within the project area as detailed in Figure 4.5. These include:

The Great Artesian Basin (GAB) (main flow area) Other Eromanga Basin Areas (outside the GAB main flow area) The Permian Arckaringa Basin Tertiary Palaeochannels Proterozoic fractured rock (Mt Woods inlier and similar).

The project is located within an area of the Eromanga Basin. A summary of the regional and local groundwater resources and use is provided in Table 4.1 below. Specialist hydrogeology reports for the project are provided in Appendix C (referred to as PB2007a and PB2007b). Results of the specialist studies are summarised in the following sections.

MARP FINAL 051108.DOC Page 29 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 4.5 Regional Hydrogeological Setting

MARP FINAL 051108.DOC Page 30 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 4.1 Summary of Regional and Local Groundwater use.

Groundwater Resource Regional and Local Use Great Artesian Basin (main flow area) East of the project site; an unconfined area (north of Coober Pedy) supplies the Coober Pedy town water supply. Eromanga Basin Sediments Overlie the Cairn Hill Project Area; south and west of the Mt Woods Inlier there is potential hydrological independence from the main flows of the GAB. Permian Arckaringa Basin Southwest of Cairn Hill; targeted water supply for Prominent Hill.

4.6.1 Regional Setting

4.6.1.1 The Great Artesian Basin (Main Flow Area)

The main flow area to the east of the project is described in detail under Section 3.3 of PB2007a (Appendix C).

4.6.1.2 Eromanga Basin Sediments (Outside the GAB Main Flow Area)

The Eromanga Basin sediments cover much of the study area thinning to the southwest from up to 80 m near Coober Pedy to around 20 m where they overlie the Cairn Hill Project orebody (as unsaturated sediments) to zero where Mt Woods Inlier rocks outcrop 1.5 km south-south-east of the orebody (refer Figure 4.5).

The main comprises sand, silt and gravel of the Algebuckina Sandstone and the overlying Cadna-owie Formation. The Bulldog Shale overlies much of the aquifer but is hydraulically confining only for part of its areal extent.

While sediments of the Eromanga Basin extend across the GAB (main flow area) there is potential that groundwater in Eromanga sediments to the south and west of the Mt Woods Inlier and the Stuart Ranges are hydraulically independent to that of the main flows area of the GAB. High groundwater salinities south of Coober Pedy indicate that this area is unlikely to be a main contributor of recharge to the lower salinity of the GAB (main flow area), although local exceptions can occur.

Low to zero hydraulic conductivity across the Mount Woods Inlier (Figure 4.5) also suggests the Eromanga sediments west of the inlier are also very unlikely to recharge the GAB (main flow area). Eromanga sediments in the Cairn Hill area and to its southwest are therefore discussed separately from the Eromanga sediments of the main GAB to the north and east (see 4.6.1.3 below).

4.6.1.3 Great Artesian Basin and Eromanga Basin Relationship

The margin of the south western lobe of the GAB is shown in Figure 4.5 in relation to the project area. Groundwater resources of the GAB currently support a large pastoral industry, mining industries (including Olympic Dam) and many naturally flowing mound springs. The towns of Coober Pedy, Roxby Downs, and Marree are also dependent upon this water resource.

There is a major difference, however, between GAB sediments in the west of the basin, including the Cairn Hill – Coober Pedy area, and the well known artesian area with mound springs in central South Australia. The relationship between sediments of the Eromanga Basin and the GAB is problematical. “The Eromanga Basin is the largest and most central of

MARP FINAL 051108.DOC Page 31 Cairn Hill Magnetite-Copper-Gold Mining Project

the three depressions that together comprise the well known Great Artesian Basin (the other two are in Queensland or Queensland and New South Wales only). Although the term ‘Great Artesian Basin’ has obvious hydrological connotations, it is entrenched in geological literature and has been used as a geological term even though the artesian and sedimentary limits are not coincident” (Drexel & Preiss 1995).

In the context of the Cairn Hill Project, the term Eromanga Basin has been adopted, as the project area is outside the important water resources of the GAB proper. Habermehl (1980) and Habermehl & Lau (1997) show the artesian extent of the GAB finishing some 80 km or more north-east of the study area (see Figure 4.5). The characteristics of the non-artesian (water table aquifer), generally saline groundwater found in the western and south-western extremes of the Algebuckina Sandstone and Cadna-owie formation, are considerably different to those of the J Aquifer of the GAB, that supports mound springs near Lake Eyre (and elsewhere) and supplies the Olympic Dam project and numerous pastoral stations.

4.6.1.4 Permian Arckaringa Basin

The Permian Arckaringa Basin hosts the Ingomar and other coal deposits southwest of the Cairn Hill project and is described in detail in PB2007a (Appendix C).

4.6.2 Local Setting

4.6.2.1 General

The water supply potential of the Cadna-owie-Algebuckina aquifer system (Eromanga Basin area) south of Coober Pedy, (where the Cairn Hill project is located, is described in PB2007a and b in Appendix C.

Detailed gravity data delineates a linear gravity low (‘palaeochannel’) feature immediately west of the Cairn Hill orebody (Figure 4.6) (need to update). This feature may represent a palaeochannel or small faulted basin (or a combination thereof) of Permian to Cretaceous age and is at approximately right angles to current west-east drainage.

Based on the geology of the area and the existing pastoralist’s bore located within the ML area (Solar Bore) the area of the gravity low has potential as a groundwater source for the mine water supply.

Results of investigative drilling and groundwater modelling undertaken in the project area in 2006 and 2007 are summarised below in Section 4.6.3 (full reports provided in Appendix C).

4.6.2.2 Aquifers and Aquifer Interaction

The two aquifers interpreted to be present and of significance at the Cairn Hill Project are the Cretaceous Cadna-owie – Algebuckina Sandstone aquifer, present as an unconfined aquifer, and a bedrock fractured rock ‘aquifer’. Groundwater is present in both aquifers, but is widespread and potentially accessible in the Cretaceous, where the sandy sediments are water saturated. In bedrock, groundwater is found in the majority of mineral exploration holes with time, but only a few mineral exploration holes encountered significant water. The bedrock is expected to act principally as a no-flow boundary to saturated Cretaceous sediments, with possible exceptions of (rare) water-saturated fractures. Conversely, saturated Cretaceous sediments would form a recharge or discharge boundary for water- saturated fractures in bedrock if the two are connected.

MARP FINAL 051108.DOC Page 32 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 4.6 Local Gravity Data

MARP FINAL 051108.DOC Page 33 Cairn Hill Magnetite-Copper-Gold Mining Project

4.6.2.3 Aquifers and Surface Water Interaction

In the Cairn Hill area groundwater levels are several to tens of metres below the base of the local creekbeds and elevated ephemeral wetlands (claypans). Therefore surface waters, when present, are potentially sources of groundwater recharge to the underlying aquifers. Where creekbeds are underlain by clay or claystone, including the Bulldog Shale, the recharge potential is low to very low unless the shale is fractured. Local claypans generally exist where low permeability clays are present, but may be recharge features if underlying conditions are favourable.

The potential for leakage of surface water into the groundwater system is higher where the creeks are cut into sandy recent or Cretaceous sediments. This may be the case where a branch of Engenina Creek has outcropping sandstone (Plate 4.2, Figure 4.4).

4.6.2.4 Registered Bores

A search of the PIRSA database showed a number of registered wells within a distance of 30 km of the proposed Cairn Hill mining area (Figure 5.1 in PB 2007a; in Appendix C). Those with hydrogeological information are listed below in Table 4.2. Interpretation and further detail is provided in Appendix C. Only one well (ENG 9) contained water of stock quality.

The pastoralist’s bore located on the ML area, Solar Bore (see Figure 4.6), has not yet been entered on the version of the bore database that was searched, however quality and depth data obtained for this bore during investigations is contained in Tables 4.3 and 4.4. During groundwater investigations undertaken at the site by PB (2006), Mt. Penryn No. 2 were also sampled, as this was the only registered bore which had been completed as a water supply well (see Tables 4.3 and 4.4 for results). Table 4.2 Registered Bores with Hydrogeological Data

Depth Water level EC TDS Yield Bore Name (m) (m bgl) (mS/cm) (mg/L) (L/s) ENG 9 43.0 – 8.59 4,868 0.38 Stuart Hwy Bore No.67 104.0 80 – – 0.06 Stuart Hwy Bore No.68 108.0 – – – 0.13 Stuart Hwy Bore No.69 (Freds Hand) 116.0 – 73.6 51,487 4.1 Stuart Hwy Bore No.69A 101.0 – 61.6 43,171 1.26 Mt. Penrhyn No. 2 85.65 – 39.6 25,024 – Mt. Penrhyn No. 9 49.68 Mt. Penrhyn No. 15 59.13 – 35.1 21,863 –

4.6.3 Results of Investigations

4.6.3.1 Site Investigations

During September 2006 PB undertook hydrogeological investigations in and around the Cairn Hill project area (documented in PB 2007a in Appendix C). Investigations included the following:

conversion of four geotechnical holes (drilled by PB in a con-current geotechnical investigation) into groundwater monitoring wells (PBBH01 to PBBH04) installation of two monitoring wells adjacent exploration holes (PBMWRC008 and PBMWR009, subsequently renamed PBBH08 and PBBH09)

MARP FINAL 051108.DOC Page 34 Cairn Hill Magnetite-Copper-Gold Mining Project

depth and quality monitoring of all installed wells in addition to Solar Bore (the local pastoralist’s bore) and a local bore registered on the PIRSA database (Mt. Penrhyn No. 2).

In March and April 2007 PB undertook additional groundwater investigations in the proposed borefield, the proposed mine pit and some regional areas (documented in PB 2007b in Appendix C). This included the following investigations:

installation of four additional monitoring wells on or near the ML area (PBBH05, 06, 07 and 10) conversion of four exploration holes within the orebody to piezometers (PBCHRC104, PBCHRC105, PBCHD010 and PBCHD011) installation of three regional monitoring wells on the western side of the Stuart Highway (PBMWRM001 to PBMWRM003) installation of two test production bores on and near the ML area (CHPB01 and CHPB02).

Bore locations are shown on Figure 4.7 and a summary of these 2006 and 2007 investigations is provided below.

4.6.3.2 Groundwater Levels

Table 4.3 presents a summary of the groundwater levels measured during investigations in 2006 and 2007. For further details see PB 2007a and b.

Table 4.3 Summary of Bore Groundwater Levels

Date groundwater Collar height Groundwater Bore Use level measured (mAGL) level (mBGL) PBBH01 14/09/2006 0.06 32.14 Monitoring PBBH02 12/09/2006 0.55 31.65 Monitoring PBBH03 15/09/2006 0.52 16.51 Monitoring PBBH04 14/09/2006 0.34 14.38 Monitoring Solar Bore 13/09/2006 0.41 31.69 Monitoring Mt Penryn No. 2 15/09/2006 Monitoring PBBH05 21/03/2007 0.74 37.32 Monitoring PBBH06 22/03/2007 0.86 36.45 Monitoring PBBH07 23/03/2007 0.8 34.37 Monitoring PBBH08 29/04/2007 0.43 31.91 Monitoring PBBH08 2006 0.55 31.65 PBBH09 29/04/2007 0.84 39.30 Monitoring PBBH09 2006 0.32 39.22 PBBH10 24/03/2007 0.7 35.17 Monitoring PBCHRC104 26/03/2007 0.10 28.34 Exploration/ piezometer PBCHRC105 26/03/2007 0.13 27.47 Exploration/ piezometer PBCHD010 27/03/2007 0.20 13.55 Exploration/ piezometer PBCHD011 26/03/2007 0.35 25.92 Exploration/ piezometer PBMWRM001 14/04/2007 1.20 49.50 Regional Monitoring PBMWRM002 12/04/2007 0.90 34.99 Regional Monitoring PBMWRM003 11/04/2007 0.75 55.50 Regional Monitoring CHPB01 28/04/2007 0.75 37.72 Proposed production bores CHPB02 2/05/2007 0.47 31.81 Proposed production bores Note: Regional monitoring bores are adjacent original uranium exploration bores. AGL = above ground level, BGL = below ground level. PBBH08 and 09 previously named PBMWRC008 and 009.

MARP FINAL 051108.DOC Page 35 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 4.7 Bores and Exploration Holes

MARP FINAL 051108.DOC Page 36 Cairn Hill Magnetite-Copper-Gold Mining Project

In 2006, groundwater levels were also measured in available mineral exploration holes situated in bedrock and were found to be highly variable. This is possibly due to very small inflow rates and indicates that groundwater in bedrock fractures is localised and poorly interconnected. Groundwater levels in both of the installed wells situated in bedrock (BH03 and BH04) were shallower than in the sediments, which supports an interpretation of little hydraulic connection between the bedrock and sediments (see PB 2007a for more details). Groundwater levels in the remainder of the wells from the 2006 investigations (situated in sediments) indicated a groundwater flow in the gravity low area to be locally from the south to the northwest.

Groundwater levels from the 2007 monitoring and production bores at Cairn Hill (2007) were used to generate the groundwater surface to AHD, using data from a digital elevation model (DEM) as ground surface. The groundwater contours are presented in PB 2007b (Appendix C).

The groundwater surface is highest (119.5 mAHD) at the southeast end of the palaeochannel near bore CHPB02. The groundwater surface then drops to 112 mAHD at bore PBBH10 towards the centre of the palaeochannel. The groundwater surface is then relatively flat from this point onwards with only a minor decrease in groundwater elevation (112 mAHD to 111.5 mAHD) towards bore CHPB01 at the northwest end of the palaeochannel. Groundwater within the palaeochannel flows from the southeast to the northwest, following the dipping surface of the impermeable shale (Figure 3, Cairn Hill palaeochannel long section in PB 2007b).

An additional groundwater flow direction is evident on the eastern side of the palaeochannel around the Solar Bore. Groundwater quality samples support this groundwater flow direction, with a recharge area likely to be located around the Solar Bore.

4.6.3.3 Aquifer Testing

Preliminary hydraulic testing was undertaken in 2006 (PB 2007a) then more detailed pump testing was undertaken within the test production bores in 2007. The test pumping program included rising slug tests, multi-rate step tests and constant rate tests. For detailed methodology and results see PB2007b (Appendix C). Implications of testing results are provided below.

The pump test analysis provided hydraulic conductivity values of between 35 m/day and 50 m/day for the palaeochannel sand aquifer. These values are representative of the clean sands that were logged during drilling. Storativity values (10-3) were typical of semi-confined aquifer conditions. The conceptual situation was supported by the drilling logs, showing over 10 m of unsaturated sands above the piezometric surface. The small saturated thickness (10 m to 20 m) of the aquifer limits transmissivity to between 700 m²/day and 1,200 m²/day. These results were used to update the hydraulic properties of the numerical groundwater model initially undertaken in 2006.

Results show that saturated aquifer thickness increases towards the northwest of the palaeochannel, where CHPB01 is located (Figure 3, cross section in PB 2007b). This aquifer area has the higher sustainable abstraction rate (approximately 520 m³/day). Details regarding methods to increase abstraction rates are contained in 2007b (Appendix C).

Based on aquifer hydraulic properties from pumping tests undertaken within the test production it is estimated that the groundwater flow (Q) within the palaeochannel is 820,000 m³/year, assuming an average flow width of 2,500m across the palaeochannel (see

MARP FINAL 051108.DOC Page 37 Cairn Hill Magnetite-Copper-Gold Mining Project

2007b for details). The abstraction of 110,000 m³/year for dust suppression at the mine would therefore only account for 13% of the groundwater flow through the palaeochannel.

4.6.3.4 Groundwater Quality

Wells were sampled on-site for groundwater quality during September 2006 and March–May 2007 (see Table 4.4). Further detail about methodology, field sheets and results of field testing are provided in Appendix C (PB 2007a and b).

Table 4.4 Groundwater Quality Results

DO EC Temperature Bore Date pH ORP (mV) (pp/m) (mS/cm) (ºC) PBBH01 Sept 2006 7.18 7.14 7.01 -68 24.9 PBBH02 Sept 2006 Dry Dry Dry Dry Dry PBBH03 Sept 2006 9.22 14.72 7.60 -30 24.8 PBBH04 Sept 2006 5.87 4.81 7.40 -8 32.7 Mt Penrhyn No. 2 Sept 2006 9.00 4.85 7.84 20 26.8 Solar Bore Sept 2006 15.26 4.90 7.80 186 28.2 PBBH05 21/03/2007 5.91* 27.2 6.2 197* 25.8 PBBH06 22/03/2007 4.19* 23 7.00 -10* 26.6 PBBH07 23/03/2007 3.27* 5.3 6.97 148* 21.4 PBBH08 29/04/2007 1.86 19.86 6.97 -100 23.3 Sept 2006 12.14 22.4 7.29 104 22.2 PBBH09 29/04/2007 2.49 30.3 6.54 119 23.9 Sept 2006 8.31 18.1 7.83 165 25.8 PBBH10 24/03/2007 6.19* 10.07 6.47 155* 24 PBCHRC104 26/03/2007 4.81 9.01 6.33 -30 23.6 PBCHRC105 26/03/2007 5.51 9.82 6.69 75 22.5 PBCHD010 27/03/2007 3.12 4.53 6.42 -56 24.3 PBCHD011 26/03/2007 3.72 4.49 5.88 -26 25 PBMWRM001 14/04/2007 4.00* 63.4 6.68 190* 25.2 PBMWRM002 12/04/2007 4.50* 31.0 7.32 139* 25.6 PBMWRM003 11/04/2007 4.43* 17.63 7.03 154* 27.2 CHPB01 (Flow cell 28/04/07 NA 32.2 6.2 -45 26.4 90FL)# CHPB02 (Flow cell 2/05/07 1.6 20.1 6.6 160 24.8 90FL)# CHPB01 (Lab) 28/04/07 NA 33.8 NA NA NA CHPB01(Lab - 28/04/07 NA 34.5 NA NA NA duplicate) CHPB02 (Lab) 29/04/07 NA 21.4 NA NA NA * Airlifted groundwater was used for water quality samples. Dissolved oxygen and ORP values recorded are likely to be higher as a result of the airlifting. # Groundwater samples were logged at 10 minute intervals using a flow cell and TPS water quality meter model type 90FL during the constant rate pump test. The average value for each anolyte is recorded in the table. Note: PBBH01 to PBBH04 previously named BH01 to BH04. PBBH08 and 09 previously named PBMWRC008 and PBMWRC009.

MARP FINAL 051108.DOC Page 38 Cairn Hill Magnetite-Copper-Gold Mining Project

Results of the 2006 field testing indicated saline water in PBBH08 and 09 (renamed from PBMWRC008 and 009), and brackish water in the remaining wells. The freshest water was found in the pastoral wells (Solar Bore and Mt Penrhyn No. 2) and BH04. All groundwater was pH neutral to slightly alkaline and mostly well oxygenated. Temperatures ranged from 24.9 to 32.7°C, with the highest temperature occurring in the well with shallowest groundwater (BH04). Note that Mount Penryn No. 2 was the only bore from the PIRSA data base which had been completed as a water supply well and could therefore be sampled.

Results of the 2007 field testing indicated EC was lowest at PBBH07 at (10 mS/cm) and at bore PBBH10 (10 mS/cm to 15 mS/cm). EC was highest towards the northwest and west ends of the palaeochannel at bore CHPB01 and PBBH09 (30 mS/cm to 35 mS/cm). High EC was associated with groundwater at some distance from recharge areas. (Note: the EC of ocean water is about 60 mS/cm, salinity of 36,000 mg/L, density of 1.036 kg/m³).

The pH of the groundwater was neutral to slightly acidic at between 6.2 and 7 over the Cairn Hill site. The pH is probably influenced by the bicarbonate alkalinity of the sand which forms the main aquifer at Cairn Hill.

Laboratory analysis was also undertaken on samples from the majority of bores during the September 2006 investigations and from the two production bores during the 2007 investigations. Full details of methodology and results are provided in PB2007a and b (Appendix C).

Groundwater sample results from both sampling events were compared and summarised in PB2007b. As discussed in that report (see Appendix C), some trace elements (Al, Mo, Se) exceeded livestock guidelines in one or more water samples and some trace elements (Pb, Mn, Ni, Se, U, Zn) exceeded potable guidelines in one or more water samples (note: Solar Bore met all livestock guidelines, but not all potable guidelines). There were also several exceedences of freshwater and marine guidelines, however there is no known connection of local groundwater to surface water.

Based on the trace elements exceedances, named above it was recommended to include these elements, in addition to iron (Fe, elevated in two wells), arsenic (As, elevated in one well), and copper (potentially leached from exposed or broken ore) in future monitoring. Full details are provided in PB2007b.

Further detail on groundwater quality, including hydrograph results are presented in PB 2007a and b (provided in Appendix C).

4.6.3.5 Conceptual Hydrogeology

Groundwater modelling undertaken in 2006 (and described in PB 2007a in Appendix C) indicated that the groundwater at the Cairn Hill project site is generally restricted to fractures in bedrock, therefore dewatering is not expected to be a significant issue for the pit excavations. A potential groundwater supply was identified within a thick layer of saturated sands where there is a gravity low (‘palaeochannel’), which was found to be largely independent of the groundwater present in the highly inhomogeneous and erratic fractures in bedrock. Some interaction is likely where water-bearing fractures contact saturated sediments, but the overall connection is interpreted to be small. This concept was supported by the results of water chemistry analysis, water levels and lithology. The saturated sands are interpreted to be the Cada-owie Formation, part of the Eromanga/GAB but remote from the artesian parts of the Eromanga Basin.

MARP FINAL 051108.DOC Page 39 Cairn Hill Magnetite-Copper-Gold Mining Project

Based on the additional drilling program undertaken in 2007 (see PB 2007b in Appendix C), and subsequent pump tests, depth and quality monitoring, the hydrogeological model of the site was updated and indicated that there is a recharge area close to the Solar Bore and that groundwater movement through the paleochannel is slow. Information from pump tests was used to update the previous numerical groundwater model (PB 2007a) and results showed that the newly installed production bores (CHPB01 and CHPB02) are capable of supplying a combined total of 500 m3/day of groundwater for the Cairn Hill project. This is enough to meet the requirements of 500 m3/day during construction and 300 m3/day for the ongoing operation of the mine.

The predicted drawdown from operating the two production bores for 10 years is only 0.3 m at the Solar Bore (pastoralist water supply) and it is unlikely that abstraction from the production bores will significantly affect the groundwater level at this bore.

Groundwater investigations indicated that dewatering the pit is unlikely to impact the Solar Bore however if dewatering did affect the Solar Bore, alternative sources of stock quality groundwater would need to be sourced (such as from PBBH07 or PBBH04). Groundwater in CHPB01 and CHPB02 is too saline to supply stock.

For more detailed information see the full reports (PB 2007 a and b) in Appendix C. Details of the impacts to groundwater as a result of the mine operations (and based on the results of the conceptual model) are discussed in Section 6.4.

4.7 Native Vegetation

4.7.1 Regional Context

The Cairn Hill project site is located within the arid lands of South Australia, approximately 55 km south-east of Coober Pedy, and falls within the Stony Plains Bioregion. The Stony Plains Bioregion is characterised by gibber and gypsum plains, sand plains and ephemeral watercourses. These habitat types also characterise the Cairn Hill area.

Major land uses within the Stony Plains Bioregion include pastoralism, mining, tourism and conservation. The major land uses within the Stony Plains Bioregion are cattle and sheep grazing. The study area is located on a pastoral lease (Ingomar Station), with cattle currently being grazed within the project area. Over-grazing by cattle, rabbits and possibly kangaroos has occurred in the past. The vegetation communities within close proximity to watering points have been heavily grazed with large areas of bare ground existing within these locations; however, the quality and diversity of vegetation increases further away from watering points and is in better condition.

The draft Biodiversity Plan for the bioregion (DEH 2005) lists the major threats to biodiversity in the bioregion as:

excessive total grazing pressure (the combined effects of grazing from domestic stock and feral and native species) reduction in Great Artesian Basin water pressure (levels of extraction resulting in a reduction in artesian pressure and flow to the surface) alteration to natural water flows (restrictions on natural flow and flooding regime of a watercourse due to diversions or artificial flow barriers and storages) competition for resources (between native and introduced species) predation (of introduced species upon native species)

MARP FINAL 051108.DOC Page 40 Cairn Hill Magnetite-Copper-Gold Mining Project

altered fire regimes (changes to fire that differ to the previous regime that the ecosystem was adapted to) mechanical disturbance (changes to vegetation cover and soil exposure due to human activities); and pollution (reduction in the quality of ground and surface water).

There are no conservation parks or reserves in close proximity to the Cairn Hill Project area.

4.7.2 Site Investigations

Several flora and fauna studies have been undertaken at the project site and the following assessment reports are contained in Appendix D.

1. 2006a Cairn Hill Ecological Assessment (initially issued October 2006 then re-issued in July 2007).

2. 2006b Cairn Hill Targeted Survey and Regional Assessment.

Two proposed haul road alignments were also investigated for the mining project and a northern route was chosen due to its accessibility and reduced impact on native vegetation. Any reference to the southern haul road route and Wirrida Siding in reports 2006a and b in Appendix D are no longer relevant.

4.7.3 Local Habitat Types

The dominant habitat types identified within the main Cairn Hill project area during the initial survey (2006a) were:

stony tablelands defined by gibber and gilgai depressions supporting chenopod shrubland vegetation and the occasional stony rise dominated by chenopod shrublands sandy watercourses supporting Acacia woodlands (Elegant Wattle (Acacia victoriae)/ Dead Finish (Acacia tetragonophylla)) tussock grasslands (Swamp Cane-grass (Eragrostis australasica)); and ephemeral swamps and sand sheets supporting chenopod shrubland vegetation.

Additional habitat types assessed during the December 2006 vegetation assessment included:

eastern outwash plains of the Stuart Range defined by chenopod shrubland communities breakaway hills and slopes of the Stuart Range with chenopod shrubland communities western outwash plains of the Stuart Range with well developed gilgais dominated by low chenopod shrubland communities linear east-west trending dune system dominated by Open Mulga woodlands (Acacia aneura (Mulga) /A. ramulosa (Horse Mulga)) Coolibah woodlands associated with wide sandy watercourses; and sand plains dominated by low open mulga (Acacia aneura) woodlands.

4.7.4 Site Vegetation Associations

Database searches, literature reviews and field surveys have been undertaken for the project area in order to identify the vegetation associations in the project area.

MARP FINAL 051108.DOC Page 41 Cairn Hill Magnetite-Copper-Gold Mining Project

4.7.4.1 Desktop Review

A database search of flora previously recorded in and around Cairn Hill was conducted (Department for Environment and Heritage SA and database records); a 50 km by 55 km area from the centre of Cairn Hill was searched. Additionally, a ‘Protected Matters’ search was performed under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC 1999) to determine if any species of national significance possibly occur within the project area.

Previous reports about species which may occur within or near Cairn Hill were reviewed, these reports include:

Draft Biodiversity Strategy for the Stony Plains Bioregion, South Australian Arid Lands (DEH 2005). EPBC Nomination to de-list from the Vulnerable category Maireana melanocarpa (Black-fruit Bluebush) (Commonwealth of Australia 2006).

4.7.4.2 Site Surveys

In addition to the desktop review, field surveys of the project area were undertaken and copies of the specialist field study reports are contained in Appendix D as discussed in 4.7.2 above.

A detailed field survey was undertaken for the project area during between 9 and 20 October 2006 (EBS 2006a), provided in Appendix D. A range of survey techniques were utilised to determine the presence of flora (and fauna) species in the project area. All vegetation types within the area were assessed to establish the vegetation communities present, condition and overall biological significance.

A targeted threatened species survey and regional habitat assessment was also undertaken in December 2006. This survey utilised regional floristic data for habitat assessment and involved fauna trapping at 6 sites, covering 3 different habitat types (EBS 2006b).

4.7.4.3 Vegetation Species

A total of 115 flora species were recorded across the main project area. No exotic species were detected during any of the surveys. Flora species recorded during the survey are outlined in Appendix D.

4.7.4.4 Vegetation Associations

As mentioned above, Chenopod Shrublands and Acacia Low Woodlands are the dominant broad vegetation type across the project area. The associations within this broad definition vary in dominance of species and composition.

The vegetation associations (adapted from EBS 2006a) that are representative of the entire Cairn Hill project area are shown in Table 4.5 below.

Table 4.5 Vegetation Associations and Associated Survey Sites

Assoc Vegetation association Broad landform Survey sites No. A Stony Tablelands/Uplands and Stony Rises

MARP FINAL 051108.DOC Page 42 Cairn Hill Magnetite-Copper-Gold Mining Project

Assoc Vegetation association Broad landform Survey sites No. 1 Atriplex vesicaria (Bladder Saltbush), Gibber tableland COO-003 Sclerolaena sp. (Bindyi) Low Very Open Shrubland 2 Atriplex nummularia ssp. omissa (Oodnadatta Gibber tableland COO-006 Saltbush) Low Very Open Shrubland COO-007 3 Sclerostegia medullosa (Glasswort) Gibber tableland COO-004 Sclerolaena sp. (Bindyi) Low Very Open Shrubland 4 Atriplex vesicaria (Bladder Saltbush), Stony rises/ Gibber COO-008 Maireana astrotricha (Low Bluebush) Low tableland Open Shrubland 5 Sclerolaena sp. (Bindyi) Herbland Gibber Tableland COO-012 6 Maireana aphylla (Cotton-bush), Stony (eastern) Atriplex vesicaria (Bladder Saltbush) Low Very outwash plains/ Open Shrubland to Low Open Shrubland Gibber tableland B Watercourses and Ephemeral Swamps 12 Maireana aphylla (Cotton-bush), Gibber tableland/ COO-002 Atriplex vesicaria (Bladder Saltbush), associated with minor Rhagodia spinescens (Spiny Saltbush) Low drainage lines Very Open Shrubland to Low Open Shrubland 13 Acacia victoriae ssp. victoriae (Elegant Wattle) Watercourse COO-001 Tall Very Open Shrubland 14 Eragrostis australasica (Swamp Cane-grass) Watercourse COO-014 Tussock Grassland 15 Marsilea drummondii (Common Nardoo), Ephemeral swamp COO-005 Frankenia serpyllifolia (Thyme Sea-heath) Ephemeral Herbland 16 Acacia aneura (Mulga) Low Open Woodland Watercourse C Low Dune and Sand Plains over Gibber 18 Atriplex vesicaria (Bladder Saltbush) Low Low dune/sand plain COO-009 COO-011 Open Shrubland over Gibber Tableland 19 Atriplex vesicaria (Bladder Saltbush), Sand plain over COO-010 Astrebla pectinata (Barley Mitchell-grass) Low Gibber Tableland Open Shrubland 20 Atriplex nummularia ssp. omissa (Oodnadatta Sand plain over COO-013 Saltbush), Atriplex vesicaria (Bladder Saltbush) Gibber Tableland Low Open Shrubland Note: Associations 5, 14, 18, 19, 20 were identified in survey sites located in the eastern portion of the ML area and may not be present in the project area

4.7.4.5 Species of Conservation Significance

The Eragrostis australasica (Swamp Cane-grass) Tussock Grassland Vegetation Association is considered to be of conservation significance. The community has been rated as Priority 12 in An update of the Conservation Status of the Major Plant Associations of South Australia by Neagle (1995), which is recorded as being “Poorly conserved or not conserved interstate or only occurs in South Australia.” This association is located within the creek bed along sections of the Engenina Creek tributary, which runs north into the main channel.

Sclerolaena blackiana (Black's Bindyi) is the only flora species of conservation significance detected during the October 2006 field survey. The species is listed as Rare, under the

MARP FINAL 051108.DOC Page 43 Cairn Hill Magnetite-Copper-Gold Mining Project

National Parks and Wildlife Act 1972. It is known to occupy clay soils and was found at sites defined by stony tablelands. The species was dry due to adverse seasonal conditions and was therefore not conspicuous. The species is likely to be more widespread across the stony tablelands of the project area than is reflected by the survey results.

The Commonwealth EPBC ‘Protected Matters Search Tool’ indicated that Maireana melanocarpa (Black-fruit Bluebush) may occur in the Cairn Hill project area. The species has a national rating of Vulnerable (EPBC Act 1999) and a state rating of Rare (National Parks and Wildlife Act 1972). This species was not detected during the field survey.

A total of 168 flora species have been previously recorded within close proximity to the Cairn Hill project area, of which 167 are native species and one is exotic (DEH Databases, 2006 in EBS 2006a) (refer to the EBS report for the full list).

Seven conservation significant (NPW Act 1972) flora species previously recorded for the area are listed in Table 4.6 (DEH Databases, 2006 in EBS 2006). Only one species was located during the field survey; Sclerolaena blackiana (Black's Bindyi). It is possible that all of the additional species, except Goodenia chambersii, may occur across the project area, given that they have all been detected within gibber plain environments in the general vicinity of the project site in the past.

Table 4.6 Flora Species of State Conservation Significance (NPW Act 1972)

Conservation Rating Botanical Name Common Name SA LE Brachyscome eriogona R R Goodenia chambersii R R Halosarcia cupuliformis Bead Samphire V K Lepidium pseudoruderale R Sclerolaena blackiana* Black's Bindyi R K Swainsona oligophylla R R Zygophyllum humillimum Small-fruit Twin leaf R K Conservation Ratings R = rare, V = vulnerable, K = Uncertain: likely to be either Threatened or Rare but insufficient data for a more precise assessment. SA = South Australia, LE = Lake Eyre botanical region * observed during site surveys

4.8 Fauna

4.8.1 Regional Context

The Stony Plains Bioregion supports a number of fauna species, including endemic species (particularly reptiles). Within this region, the Stony Plains and Tablelands habitats are particularly known to support the Plains Rat (Pseudomys australis) and the Thick-Billed Grasswren (Amytornis textilis modestus). The range of both of these species has declined since European occupation and is now mainly restricted to the Stony Plains Bioregion (DEH 2005). The draft Biodiversity Plan for the region lists the major threat to both of these species as the loss of shrub cover leading to a reduction in food resources, shelter and predation (EBS 2006a).

The Dunefields and Sand Plains habitats that also occur within the Stony Plains Bioregion support a small number of mammal species and a diverse range of reptiles that depend

MARP FINAL 051108.DOC Page 44 Cairn Hill Magnetite-Copper-Gold Mining Project

upon this habitat for survival. Many generalist bird species also use this habitat, but not exclusively (DEH 2005, cited in EBS 2006a).

Within the Breakaway and Stony Hills habitats of the bioregion, a number of endemic reptile species are present, including Ophidiocephalus taeniatus (Bronzeback Legless Lizard), which has a conservation rating of Vulnerable (state and nationally). The primary threat to this species is habitat modification associated with grazing pressure (DEH 2005, cited in EBS 2006a).

4.8.2 Site Investigations

Database searches, literature reviews and field surveys have been undertaken for the project area in order to identify potential fauna species. The initial fauna survey was undertaken at the project site in September 2006 followed by a targeted fauna survey in December 2006 to survey specifically for four species listed under the EPBC Act. In conjunction with the targeted fauna survey undertaken in December 2006, background research into threatened species recovery plans and related articles was undertaken in addition to database searches for all records of nationally listed species within a 125 km radius of the site. Results of the investigations are contained in the following assessment reports (contained in Appendix D):

1. 2006a Cairn Hill Ecological Assessment (initially issued October 2006 then re-issued in July 2007).

2. 2006b Cairn Hill Targeted Survey and Regional Assessment.

Two proposed haul road alignments were also investigated for the mining project and a northern route was chosen due to its accessibility and reduced impact on native vegetation. Any reference to the southern haul road route and Wirrida Siding in reports 2006a and b in Appendix D are no longer relevant.

4.8.3 Listed Threatened Species

Database searches undertaken as part of investigations at the site included a search of the EPBC Act (1999) protected matters database (50x50 km2 area) which identified the following nationally listed threatened species (see Appendix D for full report):

Species Common Name Status Thick-billed Grasswren Vulnerable Bird Amytornis textilis modestus (eastern subspecies) Mammal Pseudomys australis Plains Rat Vulnerable Reptile Ophidiocephalus taeniatus Bronzeback Snake-lizard Vulnerable

Although not outlined as potentially occurring in the area by the EPBC Protected Matters Search Tool, it is also possible that the following threatened species exist or may have available habitat within or around the project area:

Species Common Name Status Bird Pedionomus torquatus Plains Wanderer Vulnerable Bird Acanthiza iredalei Slender-billed Thornbill Vulnerable These species are discussed further in Section 4.8.6

MARP FINAL 051108.DOC Page 45 Cairn Hill Magnetite-Copper-Gold Mining Project

The EPBC Protected Matters Search Tool also outlines that the following Migratory species may occur, or may have potential habitat, within the general vicinity of the project area:

Migratory Species Common name Terrestrial Merops ornatus Rainbow Bee-eater Wetland/Marine Ardea alba Great Egret Wetland/Marine Ardea ibis Cattle Egret Wetland Charadrius veredus Oriental Plover Marine Apus pacificus Fork-tailed Swift These species are discussed further in Section 4.8.6

4.8.4 Existing Site Conditions

As outlined previously, the Cairn Hill area falls within the Stony Plains Bioregion. The vegetation in the area, particularly the grasslands, has been over-grazed by cattle, rabbits and possibly kangaroos, with evidence of erosion present. The vegetation communities within close proximity to watering points have been heavily grazed and there are large areas of bare ground. The quality and diversity of vegetation further away from the watering points is in better condition to provide habitat.

The Stony Plains Bioregion supports a number of fauna species, including those listed under the EPBC Protected Matters Search Tool (listed above) such as endemic reptiles (e.g. the Bronzeback Legless Lizard Ophidiocephalus taeniatus), the Plains Rat (Pseudomys australis) and the Thick-billed Grasswren (Amytornis textilis modestus). The range of the latter two species have declined since European occupation and is now mainly restricted to the Stony Plains Bioregion. The Plains Wanderer (Pedionomus torquatus) has also been detected in this region (EBS 2007a). Major threats to all these species include loss of shrub cover and habitat modification associated with grazing pressure (DEH 2005 in EBS 2006a,b).

4.8.4.1 Drought Conditions

Due to the drought conditions of 2006/2007, it is likely that the number of fauna species, and the numbers of individuals observed for each species were lower than in other years, particularly during springs after wet winters. Observations of both species and numbers of animals are usually greater following periods of good rainfall. During the survey however, it appeared that body condition of captured animals were underweight for that particular time of year. Few mammals were also observed to have pouch young and showed no signs of preparing for young, further indicating that resources may have been scant due to the lack of rain. Additionally, only one House Mouse (Mus musculus) was captured during the first survey which is uncommon for disturbed pastoral areas where House Mouse numbers are generally higher during productive seasons (EBS 2006a).

While the species observed during the Cairn Hill survey are a good indication of what inhabits the area, it is possible that the results obtained are not a comprehensive representation of all species in the area. If the survey was completed after prolonged rainfall, it may result in an increase in trap captures, and detection of new species.

4.8.5 Survey Results

All field surveys were undertaken using standard methodology developed by the Department for Environment and Heritage (Owens 2000) in line with South Australian government requirements.

MARP FINAL 051108.DOC Page 46 Cairn Hill Magnetite-Copper-Gold Mining Project

EBS reports 2006a and b (contained in Appendix D) outline the number of species and individuals recorded within the different habitats surveyed at the mine site. The greatest number of species were recorded in the low dune/ sand plain over gibber tableland habitat and gibber tableland (with cracking clays) habitats. The greatest number of individuals was recorded at in the gibber tableland (with cracking clays) and watercourse habitats. The ephemeral swamp habitat area recorded the least number of species and individuals.

Only one fauna species of national or state conservation significance was observed during the fauna surveys (Amytornis textiles modestus, the Thick-billed Grasswren). A brief summary of fauna findings for the project are presented below.

4.8.6 Mammals

A total of 171 observations of 11 mammal species were made during the September 2006 fauna survey. Of these observations, 142 were from seven native species and 29 were from four exotic species. Appendix 5 of EBS 2006a (provided in Appendix C) summarises the survey data from the trapping sites and data collected opportunistically.

The most common small mammal species observed at trapping sites during the survey were Sminthopsis macroura (Stripe-faced Dunnart), Planigale tenuirostris (Narrow-nosed Planigale), and Sminthopsis crassicaudata (Fat-tailed Dunnart). The Leggadina forresti (Forest’s Mouse) and Planigale gilesii (Giles Planigale) were also recorded.

The common captures of Dunnart species is not surprising as they are widespread and inhabit much of inland and central South Australia. These species were found consistently throughout the survey site and showed a preference for sites that contained cracking clay soils containing gilgais dominated by Oodnadatta Salt-bush Low Very Open Shrubland (see EBS 2006a for more detail).

Similar to the Dunnarts and the Planigales, Leggadina forresti (Forrest’s Mouse) was also captured during the survey and occurred within sites defined by stony tablelands (gibber plains). This species is also known to occur within this habitat type and the result is not surprising.

The most common mammal species observed, (not captured in pitfall or Elliott traps), was the Macropus rufus (Red Kangaroo), with 20 individuals observed. Bat calls of the Nyctophilus genus were also recorded within the Cairn Hill survey area (AnaBat detector). Identification to species level is reliant on capturing individuals, but harp traps and mist nets were not used in this survey, therefore it is impossible to determine which species of Nyctophilus was present during the survey. Based on distribution records of Nyctophilus bat spp., it is most likely the bat calls recorded are probably that of Nyctophilus geoffroyi (Lesser Long-eared Bat) (Robinson et al. 2000). It is highly unlikely the bat calls belong to Nyctophilus timoriensis (Greater Long-eared Bat) as the habitat requirements of this species is quite different to the habitats found at Cairn Hill (Strahan 1995).

The December 2006 targeted survey identified no additional mammal species on the project site.

4.8.7 Birds

A total of 374 observations of 27 bird species were made during the September 2006 fauna survey. Appendix 7 of EBS 2006a (provided in Appendix D) summarises the survey data from the trapping sites and data collected opportunistically. There were 215 sightings of 21 species made opportunistically away from trapping sites; from the base camp along a creek line where tall Acacia shrubs and other large shrubs were present.

MARP FINAL 051108.DOC Page 47 Cairn Hill Magnetite-Copper-Gold Mining Project

The most common bird species observed at trapping sites during the survey was Cacatua roseicapilla (Galah). The next most common bird species observed were Taeniopygia guttata (Zebra Finch), Corvus bennetti (Little Crow) and the Calamanthus campestris (Rufous Fieldwren).

Atriplex vesicaria (Bladder Saltbush) Low Open Shrubland areas (Site COO–009) had the highest diversity of bird species. The next most diverse areas were Eragrostis australasica (Swamp Cane-grass) Tall Tussock Grassland within the main Engenina watercourse (site COO–014) and Acacia victoriae ssp. victoriae (Elegant Wattle) Tall Very Open Shrubland (site COO–001).

In contrast to mammals, the gibber tableland landforms recorded fewer bird species and generally observations were made of birds specialised to this habitat type, such as Calamanthus campestris (Rufous Fieldwren) and Cincloramphus cruralis (Brown Songlark). Bird diversity increased at Low dune/sand plain over gibber tableland sites as well as the watercourse sites. No bird species were found at the ephemeral swamp site which is characterised as a Marsilea drummondii (Common Nardoo), Frankenia serpyllifolia (Thyme Sea-heath) Ephemeral Herbland.

The results from the survey indicate a moderate diversity of bird species. The open habitat of the area was limiting when identifying bird species as little vegetation was present to conceal birds; therefore bird species would often flee the site before identification could be confirmed. Smaller birds such as the Malurus spp. (Fairy-wrens) and Calamanthus campestris (Rufous Fieldwren) were observed more than any other species around the trapping sites.

The December 2006 targeted survey identified the nationally threatened species, Amytornis textilis modestus (Thick-billed Grasswren), near the existing pastoral access track to the ML area, within a drainage line of the Enginena Creek system. Three additional bird species were also identified, which were the Charadrius australis (Inland Dotterel), the Aphelocephala nigricincta (Banded Whiteface) and the Grallina cyanoleuca (Magpie-lark).

4.8.8 Reptiles and Amphibians

A total of 114 observations of 24 reptile species were made during the September 2006 fauna survey. There were 100 individuals of 22 species recorded from the trapping sites, whilst a total of 14 observations of eight species were made opportunistically around the Cairn Hill survey area. Of the opportunistic observations; two species, Eremiascincus richardsonii (Broad-banded Sand-swimmer) and Tiliqua occipitalis (Western Blue-tongue), were not observed at trapping sites. (Appendix 6 of EBS 2006a, in Appendix D) summarises the survey data from the trapping sites and data collected opportunistically. One amphibian species was observed (after rainfall) during the current survey; Neobatrachus centralis (Desert Trilling Frog).

The most common reptile species caught during the survey was Tympanocryptis tetraporophora (Eyrean Earless Dragon). The next most common reptile species caught were Ctenotus orientalis (Eastern Spotted Ctenotus) and Ctenotus brooksii (Sandhill Ctenotus). The most common species observed opportunistically was Pogona vitticeps (Bearded Dragon).

A greater diversity of reptile species were captured at the low dune/sand plain gibber tableland sites compared to other sites. These sandier sites contained few cracks and supported species not found in other sites, such as legless lizards, blind snakes, whipsnakes and painted dragons, as well as Ctenotus brooksii (Sandhill Ctenotus).

MARP FINAL 051108.DOC Page 48 Cairn Hill Magnetite-Copper-Gold Mining Project

The ephemeral swamp and the watercourse sites recorded lower levels of reptile species. The vegetation at the watercourse site was different to other sites surveyed, (Eragrostis australasica (Swamp Cane-grass) Tussock Grassland); the only capture of Lialis burtonis (Burton’s Legless Lizard) was at this site.

The original survey found a high diversity of reptile species considering the arid habitat type and environmental conditions of a dry winter experienced prior to the survey. All reptile species captured were expected to be within the Cairn Hill survey area and are commonly found in semi-arid and arid regions. The number of individuals captured per species was quite low; however, this result is not unusual in arid areas.

The December 2006 targeted survey identified one additional reptile species on the project site, a Pseudonaja nuchalis (Western Brown).

4.8.9 Discussion of Threatened Species

As outlined previously, only one species of national conservation significance (Thick-billed Grasswren) was recorded during the project surveys. However, the Protected Matters Report generated for the project lists several species as potentially occurring, or potentially having habitat, within the general area (as shown in 4.8.2.1 above).

As part of the September 2006 investigations, a 50 km by 55 km database search area surrounding Cairn Hill was conducted on fauna databases (Department for Environment and Heritage and South Australian Museum) to identify previous records of species found in and around the area. As part of the December 2006 targeted survey, a database search for all records of nationally listed species within a 125 km radius of the site was undertaken.

The recorded and potential species are discussed below.

4.8.9.1 Thick-billed Grasswren – Amytornis textiles modestus

This species is also listed as Vulnerable at the state conservation level. This Grasswren is a small, shy and cryptic species, which is often difficult to locate. The genera comprises three subspecies, only one of which is considered to potentially inhabit vegetation in this region; Amytornis textilis (modestus), the eastern subspecies. Grasswrens spend most of their time on the ground in search of seeds and insects and rarely fly. This subspecies of the Thick- billed Grasswren inhabits chenopod shrublands dominated by Maireana spp. and Atriplex spp, favouring areas along drainage lines and depressions where the chenopods are thicker.

Past populations of Amytornis textilis modestus existed from inland New South Wales in the east, over the Lake Eyre Basin (South Australia) and north over the Northern Territory border. The distribution of Amytornis textilis modestus is now confined to a very small pocket within the North West of New South Wales and the Lake Eyre Basin (South Australia). The subspecies has undergone a considerable decline in distribution since European settlement (NPWS 2002b in EBS 2006a, b).

A. t. modestus has been previously recorded inhabiting gibber plains with chenopod shrubs along dry, sandy watercourses. The species has also been known to inhabit sandhill canegrass (Zygochloa paradoxa) on sandy dunes, as well as dense saltbush and bluebush, where it may both shelter and nest. Additionally, it also shelters in goanna and rabbit and other natural crevices. Amytornis t. modestus is secretive in behaviour and usually remains under shelter of vegetation, rarely flying above shrubs (NPWS 2002b in EBS 2006a, b).

MARP FINAL 051108.DOC Page 49 Cairn Hill Magnetite-Copper-Gold Mining Project

This species has been recorded at a variety of sites within a 125 km search area of the proposed site, with the closest previous record over 40 km away (Cooper Pedy). It is likely that additional suitable habitat occurs across the general region and with more surveys, it is likely that additional populations and occurrences of this species would be recorded (EBS 2006b).

During the targeted fauna survey of the project area, the Thick-billed Grasswren was recorded within the Engenina Creek and it is likely that the species occurs along the creek system and similar drainage lines within the project area (EBS 2006b).

4.8.9.2 Plains Rat – Pseudomys australis

The Plains Rat is one of the largest native rodents weighing between 50-80 g. The distribution of the Plains Rat has declined by 50-90% since European settlement (Strahan 1995 in EBS 2006a, b and 2007a). The species now occurs from a north/south band of stony plain habitat to the west of Lake Eyre (South Australia) to an area just over the Northern Territory border. The area is approximately 700 km in length and 250 km in width, however the populations within this area are very fragmented (Moseby 2006 in EBS 2006a, b and 2007a).

This species was not recorded during the initial fauna survey or the targeted threatened species survey of the project area. Pseudomys australis (Plains Rat) has however, been previously caught near the project area. It has been observed in habitats with cracking clay plains and gilgais in Oodnadatta Salt-bush Low Shrubland and is generally associated with minor drainage features common to gibber plains (DEH 2005 in EBS 2006a, b and 2007a). The habitat utilised by P. australis in central and northern South Australia under dry conditions was studied by Brandle et al (1999 in EBS 2006a,b and 2007a). Results from this study suggest that in low-rainfall years the Plains Rat has a preference for cracking clay areas formed by minor drainage features that are supported by perennial grass and Sclerolaena spp. and to a lesser extent, perennial shrubs. This habitat type is found within the Cairn Hill survey area and although P. australis was undetected during project surveys, it is possible that it occurs within the survey area as it is often difficult to capture due to low population densities. Generally, most captures have occurred after good rainfall and populations can fluctuate greatly in response to local conditions (Brandle et al. 1999 in EBS 2006a,b and 2007a).

4.8.9.3 Bronzeback Snake-lizard – Ophidiocephalus taeniatus

This species has a national and state rating of Vulnerable. It occupies areas with dense leaf litter along temporary watercourses dominated by Gidgee (Acacia cambagei) and/or Dead Finish (Acacia tetragonophylla) Open Woodland with a shrub understorey. The watercourse habitat of this species typically cut through stony gibber plains. The species is a sandswimmer found in loose sandy loam soil, deep leaf litter and/or plant debris overlying deep cracking clays, often near the bases of trees and shrubs (EBS 2006b). Very little leaf litter was identified within the watercourse environs on the ML area and proposed haul road.

Very little is known about the size of past populations of the Bronzeback Legless Lizard. Likely factors threatening current populations of the species are the degradation of habitat through overstocking of cattle and sheep, grazing pressure from rabbits, goats and the effects of drought. Introduced predators such as cats and foxes are also considered to be a threat to the species (EBS 2006b).

Ophidiocephalus taeniatus has only been found in the Stony Plains bioregion of arid Australia and is known from a series of eight sites between Abminga and Coober Pedy in

MARP FINAL 051108.DOC Page 50 Cairn Hill Magnetite-Copper-Gold Mining Project

northern South Australia (DEH 2006, DEH 2005 in EBS 2006a,b and 2007a). The closest known population to Cairn Hill is within the Breakaways Reserve in the Stuart Ranges 25 km North, North-West of Coober Pedy (Cogger, 1994; Brandle, 1998 in EBS 2006b). Although it is a difficult species to detect, the Bronzeback Snake-Lizard has not previously been recorded at, or in the area of, Cairn Hill, and the surveys undertaken in the ML area indicated a lack of typical habitat. It is therefore highly unlikely that it inhabits the project area (EBS 2006b).

4.8.9.4 Plains Wanderer – Pedionomus torquatus

This species is a small shy ground-dwelling quail-like bird that is reluctant to fly. It is predominantly found amongst lowland native grasslands including Atriplex nummularia (Old man saltbush) and Atriplex vesicaria (Bladder Saltbush). Preferred habitat typically has 50% bare ground, 10% fallen litter, and the remaining 40% comprised of herbs and grasses (NPWS 2002a in EBS 2006a,b and 2007a). The species is sedentary for as long as the habitat remains suitable. Where grassland habitats are affected by drought or overgrazing, P. torquatus can be eliminated from landscapes until the vegetation cover returns (NPWS 2002b in EBS 2006a,b).

The distribution of the Plains-wanderer has declined greatly since European settlement. The only stronghold of the species is the Riverina of south west New South Wales. Other known areas include north-central Victoria, central-western Queensland and north east South Australia (Baker-Gabb 1998 in EBS 2006b).

The Plains Wanderer was not located on any of the database searches (100 km search area) for the ecological assessment; however Neagle (2003 in EBS 2007a) highlights the bird’s detection within the Stony Plains and Gawler Bioregion which encompass the project site. Historical records also indicate a bird was observed on the Ingomar Pastoral lease in the far north of the Gawler bioregion in 1971 (EBS 2007a). Anecdotal evidence suggests this species has recently (2006) been found south of Lake Frome (>450 km away) on Mitchell grasslands. Due to the grazing history within the survey area, P. torquatus is unlikely to occupy similar habitats within the project site, except possibly in good years when the grass may be abundant (G. Carpenter pers. comm. in EBS 2007a).

Findings of a targeted species survey and regional habitat assessment within the survey area, indicated that the Open Grassland areas at Cairn Hill were not suitable to support P. torquatus on a permanent basis; however, these areas may provide marginal temporary habitat to nomadic individuals (pers. comm. K. Bellchambers 2006 in EBS 2006b). In addition, removing grazing pressure at the project site may result in regeneration of native grasses and herbs; consequently, suitable habitat for P. torquatus may become available.

4.8.9.5 Slender-billed Thornbill – Acanthiza iredalei

This species is a small ground-dwelling insectivorous bird that occupies treeless chenopod shrublands. In South Australia it occurs on plains dominated by Maireana spp. and Atriplex spp. The species has been recorded infrequently from scattered locations within the Stony Plains Bioregion, but probably only inhabits the south western border of the Stony Plains Bioregion (Neagle 2003 in EBS 2007a). No records exist for the Slender-billed Thornbill in a 50 km by 55 km database search (SA DEH) area surrounding Cairn Hill.

4.8.9.6 Migratory Species

The following species are listed as a migratory species under the EPBC Act and are listed by the Protected Matters Search Tool as potentially occurring in the area. Migratory species

MARP FINAL 051108.DOC Page 51 Cairn Hill Magnetite-Copper-Gold Mining Project

may not be considered endangered or vulnerable, but are noted as benefiting from a nationally coordinated approach to conservation and are listed under the ‘Wildlife Conservation Plan for Migratory Shorebirds 2006’. In addition, these species are also listed as ‘other matters protected by the EPBC Act’ and are all listed marine species under the Act, but do not have conservation ratings. Marine species are listed under the Act, as species which may occur within the area.

4.8.9.7 Rainbow Bee-eater – Merops ornatus

This species is thought to have a reasonably large population size (DEWR 2007b, Barrett et al. 2003 in EBS 2006a) and can be found widely distributed throughout Australia, particularly during the summer in most of southern Australia, except Tasmania. It is listed under the EPBC Act as a Migratory species due to its migration from southern Australia into northern Australia, Indonesia, or New Guinea during winter months. The habitat requirements of the Rainbow Bee-eater are very diverse as the species is located throughout all of Australia. Rainbow Bee-eaters occur mainly in open forests usually dominated by eucalypts and woodlands including mallee, shrublands, and in various cleared or semi-cleared habitats, including farmland and areas of human habitation. The Bee-eater is found in all kinds of open country usually by a water supply. It also occurs in inland and coastal sand dune systems, and in mangroves in northern Australia, and has been recorded in various other habitat types including heathland, sedgeland, vine forest and vine thicket, and on beaches (EBS 2006a).

The Rainbow Bee-eater has been recorded in the project area (database records), but not found during recent fauna surveys of the Cairn Hill project site or haul road.

4.8.9.8 Great Egret – Ardea alba

Great Egrets occur throughout most of the world. They are common throughout Australia, with the exception of the most arid areas. Great Egrets prefer shallow water, particularly when flowing, but will utilise any watered area, including damp grasslands. Its diet consists of small fish, crustaceans and amphibians. This species is not threatened and is expected to occupy areas supporting greater water bodies than any available within the project area. The species was not found during current or recent surveys and it is unlikely to be found in the vicinity of the project area due to the lack of available habitat.

4.8.9.9 Cattle Egret – Ardea ibis

The Cattle Egret’s range includes South Australia where it prefers floodplains, swamp margins and irrigated areas. This species is often seen in flocks with livestock. The Cattle Egret’s close association with livestock and habitat adaptability has helped this species spread. This species is not threatened and is expected to occupy areas supporting greater water bodies than any available within the project area. The species was not found during current or recent surveys and it is unlikely to be found in the vicinity of the project area due to the lack of available habitat.

4.8.9.10 Oriental Plover – Charadrius veredus

The Oriental Plover is a widespread species and is found predominantly through inland Australia, Northern Australia, and Southern Australia, (DEWR 2007a in EBS 2006a) where it migrates during spring. The species generally inhabits semi-arid regions on open grasslands, claypans or gibberstone plains (Morcombe 2003 in EBS 2006a) as well as tidal mudflats, coastal salt marshes and grassy areas that are often far from water. While some of

MARP FINAL 051108.DOC Page 52 Cairn Hill Magnetite-Copper-Gold Mining Project

these landforms are present within the Cairn Hill project site, most of the known distribution of this species concentrates north of Cairn Hill, or within southern Australia (EBS 2006a).

The species was not found during current or recent surveys and it is unlikely to be found in the vicinity of the project area due to the lack of available habitat (EBS 2006a).

4.8.9.11 Fork-tailed Swift – Apus pacificus

This is an aerial species, which is often seen over open country, including arid areas, and occurs over much of Australia. It usually arrives in Australia in October, departing again by April.

This species is not threatened and is expected to occupy areas supporting greater water bodies than any available within the project area. The species was not found during current or recent surveys and it is unlikely to be found in the vicinity of the project area due to the lack of available habitat (EBS 2006a).

4.8.10 Referral under the EPBC Act

Due to the identification of one threatened fauna species in the project area (Thickbilled Grasswren) in addition to the identification of habitats suitable for other threatened species (Plains Rat, Bronzeback Snake-lizard and Plains Wanderer) as discussed above, an EPBC referral was submitted to DEWHA on 31 March 2008.

4.9 Pest Plants and Animals

4.9.1 Plant Species

No exotic flora species were identified during the vegetation surveys. However, due to the preceding dry months when the project area was surveyed, it is possible that some weeds already exist in the area but were only present as seeds, tubers or similar at the time of survey.

Only one exotic species has been previously recorded in the area (DEH records); Buffel Grass (Cenchrus ciliaris). This species is not a proclaimed weed.

4.9.2 Animal species

Of the exotic species observed during the original survey, the most common was Bos taurus (Cattle) with observations of scats or tracks made at most fauna survey sites. Observations of live cattle were generally made at or near watering points within the Cairn Hill survey area. The other introduced mammal species observed during the fauna survey were that of the Oryctolagus cuniculus (Rabbit), Vulpes vulpes (Fox), and the Mus musculus (House Mouse).

4.9.3 Pathogens

The project area is not located in a high risk Phytophthora cinnamomin (root-rot fungus) or Mundulla Yellows area within the State (DEH, 2003). No evidence of either pathogen has been identified during field investigations to date.

MARP FINAL 051108.DOC Page 53 Cairn Hill Magnetite-Copper-Gold Mining Project

4.10 Geohazards

4.10.1 Acid Rock

4.10.1.1 General

In a general sense, iron ore in its oxide forms is usually environmentally benign, low in other potentially toxic elements and of low solubility. Where iron sulphides such as pyrite and pyrrhotite are present, however, there is the possibility that oxidation of sulphides may lead to acid rock drainage (ARD), which may be accompanied by elevated levels of dissolved toxic elements such as heavy metals (e.g. cadmium, copper), aluminium and arsenic.

Experience at other mines in South Australia and elsewhere, including iron ore mines in Western Australia and copper mines in several states, has shown that ARD can be associated with mining of sulphide-bearing ore or waste rock.

4.10.1.2 ARD Study

An initial ARD study was undertaken for the Cairn Hill Project (referred to as PB2007c, provided in Appendix E). The study examined the characteristics of selected samples of overburden sediments, ore and country rock (hanging wall and footwall gneiss). The samples were compared to guidelines to establish their ARD potential classification and to compare the uranium content to determine whether additional investigation was required.

The aim of the tests was to classify the selected rock and ore types as:

Potentially Acid Forming (PAF) Potentially Acid Forming – Low Capacity (PAF-LC) Non Acid Forming (NAF) Acid Consuming Material (ACM).

Laboratory results were compared to Miller (1998) (further details provided in the specialist PB report in Appendix E). The results of the classification are shown in Table 4.7.

Table 4.7 Acid Forming Potential Screening Test Results

Sample Description NAG NAPP ANC S 2 S 3 pH Class1 name kg kg kg % % 1:5 in H2SO4/t H2SO4/t H2SO4/t water CHARD001 Ore (with 58 46.3 <5 4.9 4.98 5.9 PAF4 pyrrhotite) CHARD002 Ore 26 23.6 <5 1.5 1.00 8.8 PAF4 CHARD003 Sediments <3 <5 <5 0.1 8.4 NAF CHARD004 Footwall <3 <5 <5 0.1 10 NAF CHARD005 Hanging Wall <3 <5 <5 0.2 9.9 NAF CHARD006 Hanging Wall <3 <5 <5 <0.1 9.4 NAF CHARD007 Ore 39 38.5 <5 3.1 2.49 9 PAF4 CHARD008 Ore (dup. of 007 37 33.9 <5 3.4 2.49 8.8 PAF4 CHARD009 Sediments <3 <5 <5 <0.1 8.5 NAF CHARD010 Footwall <3 <5 <5 0.1 9.9 NAF CHARD011 Ore 31 25.3 <5 2.4 0.79 8.3 PAF4 1 See Table 5.7 in PB 2007c

MARP FINAL 051108.DOC Page 54 Cairn Hill Magnetite-Copper-Gold Mining Project

2 by Amdel. 3 supplied by TR (see Table 5.5 in PB 2007c). 4 Except for pH, which was high (CHARD001 less so).

All overburden and country rock samples have negligible sulphur content and were classified as NAF.

All ore samples were classified as PAF due to the ore containing sulphides, both as copper- bearing sulphides and as the iron sulphides pyrite and pyrrhotite. These iron sulphides may be associated with ARD however, water-rock extracts for all ore samples other than that containing visible pyrrhotite were neutral to alkaline and the pyrrhotitic sample mildly acidic (5.9 pH units), rather than <4.5 pH units as per the pH criterion used.

The mostly alkaline pH results suggest that short-term storage of ore on the surface, including exposure to rainfall, is not likely to be problematic, and the arid climate of the Cairn Hill area reduces the potential spread and impact of any ARD that may be generated. However, with regard to longer term stockpiles of ore (for example low-grade ore) there is the possibility that rare large rainfall events (a few times per century) could flush out acidic material that has slowly accumulated over years or decades of lesser rainfall.

For more detail see PB2007c (Appendix E).

4.10.2 Asbestiform Minerals

To date, no asbestiform minerals have been observed during drilling at the Cairn Hill deposits and are not expected to be encountered due the nature of the mineral deposits.

4.10.3 Radioactivity

The Cairn Hill deposit, comprising iron ore containing copper and gold, has some similarities to the iron-oxide – copper – gold – (uranium) deposits in the general area at Olympic Dam and Prominent Hill. Although the iron oxide is not of ore grade at either of these mines, Olympic Dam produces uranium as a significant by-product and uranium is present at above- background but currently non-commercial concentrations at Prominent Hill. The developers of Prominent Hill undertook a study into radioactivity at Prominent Hill, although the concentrations were such that no special precautions are necessary. The possible presence of uranium at ‘nuisance’ concentrations at Cairn Hill was investigated and is included in full in the Initial ARD (Acid Rock Drainage) and uranium content assessment (Appendix E, PB2007c).

All measured uranium contents were below the trigger level for further investigation of 80 ppm, with the highest measured concentration being 26 ppm in CHARD006 (hanging wall gneiss). The 80 ppm trigger level is from the National Directory on Radiation Protection (Radiation Protection Series No. 6). Although this has no as yet been officially adopted in state legislation, but will eventually be adopted (as advised by the Radiation Protection Division of the SA EPA). The Division was notified of this result on 17 December 2006 and that no additional investigations were considered warranted at this stage.

4.10.4 Earthquakes

The Cairn Hill Project is away from areas of enhanced earthquake activity such as the Flinders Ranges or Tennant Creek area of the Northern Territory, and earthquake risks are low. The following parameters will be used to calculate loads due to earthquake loading in

MARP FINAL 051108.DOC Page 55 Cairn Hill Magnetite-Copper-Gold Mining Project

accordance with AS1170.4-1993 “Minimum Design Loads on Structures – Earthquake Loads:

Acceleration coefficient (α) = 0.06. Site factor (S) = 1.0.

4.10.5 Flooding

The Cairn Hill Project area is subject to occasional flooding notwithstanding the arid climate. Suitable flood protection to a minimum of a 1:100 flood event has been incorporated into the design for the pit. Where possible, infrastructure will be sited outside the flood-prone areas associated with Engenina Creek and its tributaries.

4.11 Air Quality

While there has been no specific monitoring of dust levels in the Cairn Hill Project area, existing ambient air quality has been inferred from existing land uses and vegetation cover in the area. The closest significant industrial development is Prominent Hill which is located approximately 70 km southeast of the project area, although active opal mining occurs at Coober Pedy 50 km north and has been undertaken at locations within 20 km of Cairn Hill.

Particulate matter (dust), as the result of wind, is likely to have the most significant impact on air quality. Oodnadatta, 195 km north east of the project site, experiences on average five dust storms annually (Arid Areas Catchment Water Management Board 2006). This frequency is related to lack of ground cover and major dust storms have been recorded after periods of drought. High wind levels are likely to exacerbate dust generation and lead to an increase in the concentration of airborne dust.

BHP Billiton has 14 passive dust monitoring stations recording dust levels surrounding the Olympic Dam mining operation. The results of the two monitoring stations outside of Roxby Downs represent the dust levels expected at the Cairn Hill project area. These two monitoring stations recorded passive dust levels of 49 mg/m²/d and 46 mg/m²/d during the 1 January and 31 December 2004 reporting period.

4.12 Noise

No specific noise monitoring has been collected for the project area. However, no significant, permanent man-made noise sources are located near the project area. Wind blowing over vegetation is the only noise source. The nearest sensitive noise receptor to the mining operation is Ingomar homestead which is located 45 km south-west of the project area.

4.13 Heritage

4.13.1.1 Indigenous Heritage

There are currently no indigenous heritage sites on the Register of Sites and Objects, held by the Aboriginal Affairs and Reconciliation Division (AARD) for the Cairn Hill Project Area, including the ML and the proposed access road, haul road and rail siding (Wood and Fitzpatrick, 2007a, b, c).

MARP FINAL 051108.DOC Page 56 Cairn Hill Magnetite-Copper-Gold Mining Project

Work Area Clearances (WACs) were undertaken for the ML area and proposed haul road and as previously outlined (Section 4.1.4) Native Title agreements have been finalised for the project.

Suggested exclusion areas that are avoided by the project include a 50 m zone extending from Rocky Outcrops southeast of the proposed mine site, a 100 m exclusion zone from Cairn Hill and an exclusion area along Engenina Creek to the east of the project site (Wood and Fitzpatrick - 2007a, b). Exclusions zones are shown in Figure 4.8.

Results from Work Area Clearance surveys (Wood and Fitzpatrick 2007a, b) are detailed as follows:

The ML contains areas of both traditional and archaeological significance. Traditional elements have been identified, but detailed archaeological surveys have not been undertaken.

A number of myths pass through the Cairn Hill Area, some myths interact and others travel in isolation. The principal myth is related to the ancestor Thunpila, father of the Seven Sisters (waterholes in the creek).

Geographical features of significance to mythology and with varying densities of archaeological scatter include the sides of Engenina Creek and its tributaries, the sandy areas, cane grass areas and granite outcrops. In addition, there is a large site where the creek and ore body coincide that has an archaeological scatter.

Archaeological material at the sites includes flakes, tools of chert and quartzite (imported to the area), local silcrete and quartz. A few sites also contain a range of stone tools that are in relative pristine condition. There is also archaeological material on Engenina Creek where it crosses the Vermin Proof (Dog Proof) Fence, indicating that similar material will be found along much of its length. There are also large densities of archaeological material at Lake Cadibarrawirracanna.

MARP FINAL 051108.DOC Page 57 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 4.8 Indigenous Heritage Exclusion Zones

MARP FINAL 051108.DOC Page 58 Cairn Hill Magnetite-Copper-Gold Mining Project

4.13.1.2 European Heritage

No places or items of European heritage have been identified within the project area.

Disturbance to non-indigenous historic and cultural heritage sites or items is considered unlikely given the nature of the area and the previous land use history of the site (i.e. agricultural). Under the Heritage Places Act 1993, if a non-Aboriginal heritage site is found or needs to be disturbed during the project, TR will be required to consult with the South Australian Heritage Council.

4.14 Socio-Economic

A summary of socio-economic data for the two nearest population centres is provided below. Appendix F provides additional socio-economic information.

4.14.1 Study Area

The site of the Cairn Hill Project is very remote with the nearest towns being Coober Pedy (approximately 50 km to the north-west), Roxby Downs (approximately 215 km south-east) and (approximately 400 km south-east). Coober Pedy is the largest supplier of opal in the world and hosts a large number of small-scale opal mines. Roxby Downs is home to the large- scale BHP Billiton Olympic Dam mine and a town with good services and facilities to encourage workers and their families to live there. Current population levels at Port Augusta have been fuelled by the establishment of a major power plant and related infrastructure and mining industries.

The Cairn Hill project area is situated within the Mt Penrhyn portion of Ingomar Station (refer Figure 4.2), with the Ingomar homestead is located approximately 45 km to the south-west of the project area. Other homesteads including McDouall Peak and Mirikata are situated approximately 60 km from the project area.

4.14.2 Population

The total populations at Coober Pedy and Roxby Downs were 3,062 and 3,814 respectively (ABS, 2003b & d). Both towns have experienced overall population growth since the first census in 1991, however Cooper Pedy decreased in size between 1996 and 2001 (Table 4.8).

Table 4.8 Time Series Population Profile

1991 1996 2001 Coober Pedy 2,881 3,187 3,067 Roxby Downs 2,401 2,682 3,822 Source: ABS, 2003b,d

Both towns are made up of more males than females. However, this is to be expected in mining towns as the mining industry is generally male dominated.

The station homesteads of the region, mostly situated south of the project area, consist of small populations made up of the station owners, operators and employees.

4.14.3 Employment

Coober Pedy and Roxby Downs have very different employment status profiles. Coober Pedy has 8% unemployment while Roxby Downs has only 3% unemployment.

MARP FINAL 051108.DOC Page 59 Cairn Hill Magnetite-Copper-Gold Mining Project

The main industries in each town differ. Coober Pedy has a spread of people employed in different industries with mining being the 5th biggest employer. The major industry employer in Roxby Downs is mining. Mining employs 909 people, approximately a quarter of the town’s population, detailed employment profiles can be located in Appendix F.

4.14.4 Income

The median reported weekly household income in Coober Pedy is $400–$499 compared to $800– $999 in Roxby Downs. The higher rate in Roxby Downs can be attributed to the Olympic Dam mine which pays its workers well to compensate for the regional placement. Refer to Appendix F for further analysis of the town’s income levels.

4.14.5 Tourism

Tourism in the region is mainly restricted to the township of Coober Pedy. Coober Pedy attracts tourists for its array of opal mines and underground dwellings. The main tourist attractions in the town are1:

The Breakaways – flat-topped mesas based in an arid environment located approximately 33 km north of Coober Pedy The Coober Pedy Golf Club – voted in the top 10 most unique golf courses in the world Crocodile Harry’s Underground Nest – featured in the Lonely Planet’s “Guidebook to Australia” and “Max Max – Beyond the Thunderdome” feature film Desert , Gallery and The Levels “Underground” Bar – world’s only truly underground bar and gaming room, includes accommodation.

Tourists frequently use Stuart Highway on their travels from southern to northern Australia and vice versa. Travel by off-road vehicles to remote scenic areas has also been increasing which can create problems for environmental management and privacy for regional station owners (Planning SA 2003).

4.14.6 Community Services and Facilities

There are a number of health services at both Coober Pedy and Roxby Downs that are listed in Table 4.9 below.

Table 4.9 Health Facilities

Name Type Address Coober Pedy Community Heath Community health McDougal Rd, Coober Pedy Services Coober Pedy Hospital and Hospital Hospital Rd, Coober Pedy Health Services Inc. Coober Pedy Mental Health Community mental health McDougal St, Coober Pedy Service Coober Pedy District Centre Family and youth centre Hutchinson St, Coober Pedy Umoona Tjutajku Health Service Aboriginal health Via Coober Pedy Inc CYH – Coober Pedy Clinic Child and youth health McDougal Road, Coober Pedy CYH – Coober Pedy Clinic Child and youth health Umoona Aboriginal Centre off Umoona Road, Coober Pedy Roxby Downs Hospital Hospital 16-28 Burgoyne St, Roxby

1 District Council of Coober Pedy and the Coober Pedy Retail Business and Tourism Association, 2006.

MARP FINAL 051108.DOC Page 60 Cairn Hill Magnetite-Copper-Gold Mining Project

Downs

CYH – Roxby Downs Clinic Child and youth health Roxby Downs Hospital, 18-28 Burgoyne St, Roxby Downs CYH – Andamooka Clinic Child and youth health Andamooka Hospital, Government Rd, Andamooka

The emergency services within the region are all located in the urban centres. Andamooka, Coober Pedy and Roxby Downs each have a Police Station and Country Fire Service Base within their townships. These are the nearest emergency services to the Cairn Hill mine site.

4.15 Infrastructure and Transport

4.15.1 Infrastructure

4.15.1.1 Electricity

The project area is not connected to the state grid. Electricity at Coober Pedy is generated from diesel generators and a wind turbine, operated by Energy Generation Pty Ltd, with the District Council of Coober Pedy being responsible for the distribution and retailing.

4.15.1.2 Water Supply

Pastoralists operating in and around the project area (Ingomar Station) utilise underground water resources for stock watering. There is a stock watering point within the project area which is fed by an underground bore (Solar Bore) which produces water of good stock quality (by local standards).

4.15.1.3 Communications

There are currently no communication networks in the project area.

4.15.1.4 Other Infrastructure

The dog fence stretches 5,300 km and was constructed to protect the pastoral areas in the south from the wild dogs in the north. The northern boundary of the Mining Lease is located 15–20 km south of the dog fence, which runs northwest to southeast (see Figure 1.4).

4.15.2 Transport Network

4.15.2.1 Road

The Stuart Highway is the major interstate road closest to the project area. This highway connects Adelaide and Darwin and is maintained by the Department of Transport, Energy and Infrastructure. Current access to the site is along a minor pastoral road to the east off the Stuart Highway.

The site is 60 km by road from Coober Pedy and 380 km by road from Roxby Downs.

A network of minor sealed and unsealed roads service the pastoralists, community and mining operations. The minor roads are occasionally disrupted by heavy rainfall.

4.15.2.2 Rail

The interstate railway from to Darwin, managed by AustralAsia Rail Corporation, is on a standard gauge and passes through the region. Wirrida Siding is the nearest railway siding and is

MARP FINAL 051108.DOC Page 61 Cairn Hill Magnetite-Copper-Gold Mining Project

approximately 68 km from the project area by a possible transport route. FreightLink is the operating company of AustralAsia Rail and operates the freight service between Adelaide and Darwin. Great Southern Railway operates passenger service on this line (AustralAsia Railway Corporation, 2004). The Trans Australian Railway near Glendambo on the Stuart Highway is 228 km to the south, and is used by several freight companies.

4.15.2.3 Air

The project area is located between two commercial airports serviced by Regional Express. The closest is located at Coober Pedy, next closest is to the south of the project area at Olympic Dam. Emergency airstrips are used by the Royal Flying Doctor Service and located on various pastoral properties.

4.15.2.4 Port

There are four main ports suitable for mining and energy operation exports in South Australia; Port Pirie, Whyalla, Port Bonython and Port Adelaide. Flinders Ports manages the privately owned port in Port Pirie. Exports from Port Pirie include lead and zinc (Flinders Ports 2006).

The Whyalla port is privately owned by OneSteel Manufacturing Ltd. Port Bonython is state owned and accommodates larger vessels (Whyalla.com 2006), but is currently configured for LPG exports and does not have rail infrastructure. Port Adelaide accepts limestone imports and exports of mineral sand concentrates, but is further from the proposed mine and only accommodates Handymax vessels from the current minerals berth.

The port in Darwin has additional rail length compensated by shorter marine shipping routes to the customers in China. Use of the port facilities in Darwin is the current preferred option for the project.

MARP FINAL 051108.DOC Page 62 Cairn Hill Magnetite-Copper-Gold Mining Project

5. Description of Mining Operations

5.1 Operation Overview

Prior to the main mining project, TR undertook a trial mine operation, in order to refine the parameters of the pit design and understand the behavioural characteristics of ore through the mining and treatment (crushing and screening) process.

The main project (shown in Figure 1.2) involves mining approximately 7Mt of a total indicated and inferred resource over a period of up to six (6) years. Mining will occur at an average rate of approximately 1.35Mt/a of ore (million tonnes per annum). The ore will consist of approximately 51.9 % Fe (magnetite) and 0.4 % Cu (copper). The mine life is currently estimated to be approximately 6 years; however it is expected to exceed this timeframe as the project progresses and the further extent of the resource is better defined.

The mine will be open cut and ore will be processed (screened and crushed) at a rate of up to approximately 300 tonnes per hour using a conventional mobile screening and crushing plant(s). The plant will produce a minus 40 mm sized magnetite copper gold ore suitable for transport.

Operations will consist of blasting, excavation, loading and haulage of ore and waste in three pits (Starter Pit, Pit 1 and Pit 2) by dump truck and road haulage of product to the rail siding for rail transport to Darwin:

The location(s) of these components of the operation is detailed on Figure 1.2.

Key characteristics of the mining activities are summarised in Table 5.1.

Table 5.1 Key Characteristics of the Project

Item Description Project Location 750 km north-northwest of Adelaide, South Australia Exploration Licence EL 3518 Mining Lease ML6303 Mining Project Area 118.35 km2 Waste Dump 1 225,000m2 Waste Dump 2 255,000m2 ROM Pad (final) 90,000m2 Laydown Pad 90,000m2 Explosive Storage Area 40,000m2 Site Roads 143,500m2 Portion of Access Roads 75,000m2 Pit 1 (inclusive of starter Pit) 145,000m2 Pit 2 120,000m2 Mining Method Open pit Mineralisation Comprises Iron (Magnetite), Copper and Gold Mining rate (average) Dependant on mine scheduling requirements but up to 10,000 bcm per day Mine life 6 years, likely to extend as project develops. Project economic and technical fundamentals are to be reviewed bi annually Resource 7.3Mt (diluted JORC resource estimate) within pits 1 and 2. Total indicated and inferred JORC resource estimate is 14.7Mt using a 40% Fe cut off

MARP FINAL 051108.DOC Page 63 Cairn Hill Magnetite-Copper-Gold Mining Project

Item Description Pit dimensions Pit 1 675m long (east – west) and 270m wide (north – south) Pit 2 500m long (east – west) and 240m wide (north – south) Processing method Conventional mobile crushing and screening Operating hours Continuous operation, up to 24 hours per day, 7 days per week Tailings Storage No tailings facility required Power source Mobile Gen sets utilised Power requirement Mobile Gen sets utilised Raw water source Existing production bores Raw water requirement Minimal requirements for dust suppression/road maintenance/construction Accommodation All staff will reside in Coober Pedy, no on site accommodation Employees Up to a nominal 98 people Capital expenditure $40M (estimated)

5.1.1 Project Footprint

The major components of the mine operations and associated footprints are identified in Table 5.2 and are described in the following sections. Figure 1.2 shows the location of the major mine components within the MLA, and Figure 5.1 below shows details of the mine infrastructure

Table 5.2 Project Components and Footprints

Footprint Component Area (m2) Within Mine Operation Area Waste Dumps 480,000 ROM Pad 90,000 Laydown Pad 90,000 Explosive Storage 40,000 Site Roads 143,500 Portion of Site Access Road 75,000 Pit 1 675m x 270m 145,000 Pit 2 500m x 240m 270,000 Total 1,183,500

5.2 5.2 Ore Reserves & Market

5.2.1 Geological Environment

The Cairn Hill magnetite deposit consists of two sub parallel, east-west trending horizons with a strike length of approximately 1.3 km as demonstrated by 43 reverse circulation drill holes and 15 diamond core holes which test the deposit to a depth of 170 m (Figures 5.1 and 5.2). The magnetite deposit is open at depth and is closely associated with (and usually hosts) secondary gold and copper mineralisation which may also be found in the surrounding granitic (gneissic) host rocks.

The copper and gold mineralisation is largely conformable with the magnetite horizons but also extends into the immediate adjacent gneissic host rocks.

MARP FINAL 051108.DOC Page 64 Cairn Hill Magnetite-Copper-Gold Mining Project

Within the area tested by recent drilling (between 511100 mE and 513000 mE), the copper mineralisation pinches out east of 511960 mE. The Cairn Hill mineralisation sits on the western end of a major linear magnetic high with a strike length of at least 18 km (Geomek 2007).

The resource estimate for the main project (as at June 2007) was (40% Fe metal equivalent cut- off) for an in-situ and undiluted resource was Indicated (10.5 million tonnes) and Inferred (4.2 million tonnes). The resource was classified on the basis of Iron (magnetite) (Fe = 51.9%), copper (Cu = 0.4%) and gold (Au = 0.12 g/t) grades.

FIGURE 5.1 Isometric View of the Cairn Hill magnetite, Copper and Gold Mineralisation

MARP FINAL 051108.DOC Page 65 Cairn Hill Magnetite-Copper-Gold Mining Project

FIGURE 5.2 Plan View of the Magnetite, Copper and Gold Interpretations (wire frames) and the Associated Drilling

5.2.2 Geotechnical Engineering

Cairn Hill has been classified to have separate geotechnical domains comprising alluvial, weathered and fresh bedrock materials.

The depth below ground surface for the base of alluvial (over the main mining project pit extents) ranges from 12m in the north east to 30m in the southwest.

The depth below ground surface for the base of weathering/top of fresh rock ranges from 16m in the north east to 40m in the southwest below ground surface.

Alluvial materials are typically loose coarse quartz sands.

Weathered materials are typically medium strong rock (25MPa to 50MPa).

Fresh materials are generally strong to very strong rock (100MPa to 250MPa).

5.2.2.1 Slope Stability Analysis

Deterministic and probabilistic stability analyses has been undertaken for both structurally controlled sliding in batters and for toppling and rotational sliding in the weathered and fresh rock masses forming the inter-ramp and overall slopes. Analysis of simple structurally controlled planar and/or wedge sliding modes in batters has been undertaken for all those defect sets which form critical sliding geometries, either planar or tetrahedral wedge sliding. For these modes, parametric analyses were undertaken for 10m to 20m batter heights, a range of batter angles and a range of berm widths.

MARP FINAL 051108.DOC Page 66 Cairn Hill Magnetite-Copper-Gold Mining Project

Batter/berm design has been based on effective retention of failed material rather than a design factor of safety or probability of failure. Analysis of rotational sliding was performed for all rock masses and slope designs (slope height versus slope angle curves were developed to be used in the inter-ramp and overall slope design). Analysis of potential toppling failure was performed for the south wall of the Cairn Hill pit where unfavourably orientated foliation increases the risk associated with this failure mechanism. The pit will be constructed using the parameters outlined in Table 5.3 below and may be changed subject to conditions on site following inspection of side slope stability and closer inspection of in situ material by a qualified geotechnical engineer. Table 5.3 Slope Design Parameters

Depth Batter Batter Berm Inter-ramp Slope below Height Angle Width Domain Slope Sector 1 surface (m) (°) (m) Angle (°) 0 – 30 All 10 60 10 Alluvial 28.5 Weathered 30 – 40 All 10 50 10 26.1 Bedrock North 20 70 6 58.5 North Eastern 20 60 8 47.7 Fresh 40 – 160 Southern 20 80 6 Bedrock 66.9 North 20 60 6 50.4 Western

5.2.2.2 Mitigation of Geotechnical Risk

Procedures will be followed to mitigate risk and information determined from the trial pit used in the design of the final pit for the main mine project. The routine geotechnical risk mitigation measures which will be implemented for the trial mine include: Geotechnical mapping of weathered and fresh rock batters as soon as these materials are exposed Integration of the resulting data into the geotechnical database Updating of the structural model Review of geotechnical domains and associated geotechnical design parameters. Review of hydro geological conditions and issues evident during mining Review and, if necessary, revision of slope designs. Routine batter inspections will be carried out to identify wire line tension cracking Blasting strategies will be better understood so that the final selected blast design can be developed aiming to minimise damage to batter faces and crests. Groundwater is expected to have a minimal impact on slope stability due to the following; • Likely high permeability of the loose sands that make up the alluvial.

• The level of the fresh rock is at 10 meters below surface compared with 30 meters to the west. Water is likely to accumulate where bedrock is encountered at greater depth.

MARP FINAL 051108.DOC Page 67 Cairn Hill Magnetite-Copper-Gold Mining Project

5.2.3 Reserves and Resources

The Cairn Hill Mineral Resource estimate for the main project as at June 2007 (40% Fe metal equivalent cut-off) for an in-situ and undiluted resource was:

• Indicated: 10.5 million tonnes

• Inferred: 4.2 million tonnes

The resource for the main mining project has been classified on the basis of the Fe and Cu as follows:

• Iron (magnetite): Fe => 40%

• Copper: Cu => 0.15%

Applying the above classification, the Cairn Hill Mineral Resource within pits 1 and 2 for an indicated diluted resource is approximately 7.3Mt.

The application of minimum mining widths may reduce the amount of recoverable ore.

Table 5.4 June 2007 Mineral resource Estimate (above a 40% Fe equivalent cut-off)

Model Tonnes (Mt) Fe (%) Cu (%)

In Situ (indicated) 10.5

In situ (inferred) 4.2

Diluted 51.9 0.4

The mineralisation is open along strike to the east of the mine. Less than one kilometre of strike length of the zone east of the mine has been drill-tested to any extent. Untested, almost continuous, magnetic anomalies extend for over 4.0 km eastwards. In addition, several large, isolated magnetic anomalies occur within a radius of 15.0 km of the mine. These targets have the potential to significantly increase the size of the resource.

MARP FINAL 051108.DOC Page 68 Cairn Hill Magnetite-Copper-Gold Mining Project

5.2.4 Market

IMX Resources (100% owner of TR) has entered into agreements with Tonghau mining including the Long Term Purchase and Sales Contract for Iron & Copper Ore (“Sales Offtake Contract”) and the Asset Disposal Process For Yingkou Australian Ore Processing Company Ltd (“Process Plant Disposal Agreement”)

Under the Sales Offtake Contract the total planned annual ROM production for the magnetite / copper ore for Phase 1 at Cairn Hill will be sold to Tonghau Mining. Up to 1.4Mtpa will be sold over a three (3) year period subject to contract extensions at market related prices.

The ore will be sold on a FOB basis with the target shipping specifications averaging 55% Fe and 0.43% Cu. IMX Resources receives payment for both the contained iron and copper, with the process based on internationally traded benchmark prices and a 20% discount to allow for processing costs and losses.

The Process Plant Disposal Agreement covers the process to be followed should the contract not be renewed by mutual agreement beyond the initial three (3) year term. Under this agreement, IMX Resources has the first right to purchase the processing plant at Bayuquan in Liaoning Province, North East China at an independently assessed market price.

5.3 Mining Operations

5.3.1 Mining Operations to Occur

Mining at Cairn Hill will occur by traditional open cut mining methods with ore being processed via a mobile screening / crushing plant. The plant will produce a 40mm sized magnetite copper gold product suitable for transport.

A ‘Starter’ Pit encompassing the ‘trial pit’ will be mined initially. This ‘Starter’ Pit is developed into Pit 1 (Northern Pit). A second pit, Pit 2 will be developed to the south of Pit 1. Final pit dimensions for both Pit 1 and Pit 2 will not been fully known until further resource drilling, geotechnical data from the ‘Starter’ Pit has been assessed and grade reconciliation between the resource model and plant undertaken.

Initial design criteria of the pits have been based upon the ‘trial pit’ design parameters as well as geotechnical fieldwork and the following criteria:

• Ramp width – 10m (single lane) • Passing bays – 24m in width, located at every berm level • Ramp gradient – 1:8 • Batter height – varies between 10m and 20m • Berm width – varies between 5m and 10m

Perimeter safety bunds will be constructed around the crest of the pit(s).

MARP FINAL 051108.DOC Page 69 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 5.3 Cairn Hill Starter Pit (not to scale)

Figure 5.4 Cairn Hill Pit 1 (not to scale)

Figure 5.5 Cairn Hill Pit 2 (not to scale)

MARP FINAL 051108.DOC Page 70 Cairn Hill Magnetite-Copper-Gold Mining Project

Figure 5.6 Cairn Hill Pits (including Trial Pit) (not to scale)

Figure 1.2 shows a conceptual layout for the Cairn Hill Project showing pit(s), waste dump(s), haul roads, laydown area, ROM pad and potential explosive storage area.

Where possible material will be ‘free dug’ whilst drill and blast operations will occur for more competent material (ore and waste).

Blasting will generally occur on five (5) metre benches with flitches being up to three (3) metres in height.

In order to minimise dilution ore mining will:

• Primarily occur on dayshift. • Be mined from hanging wall to footwall and along strike • Be under the supervision of a spotter (if required) • Cross cutting of the ore will be minimised.

Once it is mined, suitable material will be utilised in the construction of infrastructure (roads, pads etc.) or carted to the waste dump or, if ore, carted to the ROM Pad.

The mobile crushing plant is to be located on the ROM pad as shown in Figure 5.7.

Material will be either feed into the mobile screening / crushing plant by front end loader (FEL) or excavator.

At this point in time no chemical beneficiation of the ore will be undertaken on site.

In due course, it is expected that the use of ‘dry magnetic separation’ will occur on site as this enables a ‘higher grade’ crushed product to be produced. However ‘dry magnetic separation’ will not occur on site during the initial phase of the project.

Ongoing exploration will occur near mine, on the ML and on the greater Mt Woods (EL3518).

5.3.2 Sequence of Operation

A trial pit has been established at Cairn Hill.

MARP FINAL 051108.DOC Page 71 Cairn Hill Magnetite-Copper-Gold Mining Project

Approximately 20,000t of ore was mined during this activity.

Mining will commence with a ‘Starter Pit’ which encompasses the ‘Trial Pit’.

Mining will commence pending final approvals in Q4 2008.

Establishment of mine site infrastructure (roads, laydown pad etc) will occur once suitable material is available ex-pit (for construction purposes) and will occur during the first six (6) months of operations.

Mine life is estimated to be six (6) years, however as more information becomes available and pending further exploration success it is possible this lifespan will be extended.

The conceptual production schedule is listed in Table 5.5.

Table 5.5 Conceptual Production Schedule

Period Ore (kt) Waste (kt) S:R

2008/09 316.61 3,807.54 12 : 1

2009/10 1,603.58 7,857.01 4.9 : 1

2010/11 1,561.60 5,148.85 3.3 : 1

2011/12 1,574.79 3,266.14 2.1 : 1

2012/13 1,512.84 1,982.16 1.3 : 1

2013/14 266.92 126.34 0.5 : 1

TOTAL 6,836.33 22,188.04 3.2 : 1

Note: FY 2008/09 assumes mining commences in Nov 08

5.3.3 Modes and Hours of Operation

Mining operations will occur on a continuous (365 days / year) basis.

Mining and screening / crushing may occur on a double shift basis (dayshift and nightshift).

As no accommodation will be available on site the hours of work per shift shall be structured to take into account travel time to / from Coober Pedy.

5.3.4 Use of Explosives

An external subcontractor appropriately qualified will be appointed to undertake the blasting services.

Generally ‘dry’ (ANFO or Heavy ANFO) explosives will be utilised on site. If required ‘wet’ (Emulsion or package explosive) shall be used in wet holes. Appropriate explosives shall be used in pre-splitting is to occur.

Blasting may occur daily during daylight hours, the frequency of blasting is dependent upon mining schedule, drill productivities, work areas available etc.

MARP FINAL 051108.DOC Page 72 Cairn Hill Magnetite-Copper-Gold Mining Project

Blasting strategies used to form fresh rock slopes will aim to minimise damage to batter faces and crests.

The batter faces may be formed by pre-splitting to ensure that the steep slope angles can be achieved.

A diligent program of batter scraping to ‘hard’ and/or batter chaining will be implemented to minimise the potential for rock falls and minor failures with time.

Additionally, a program of post blast inspection and assessment may be undertaken to help optimise the near wall blast designs.

Blasting consultants will be used as required in order to optimise blasting results.

At this point in time limited or no explosive storage facilities are proposed to be constructed on site.

But during the course of the project explosive storage facilities may be required to be established on site.

The proposed facility will take up a surface area of no greater than 200m x 200m.

These facilities may include but not be limited to:

• Ammonium Nitrate storage • Emulsion storage • Booster and detonator storage

These facilities will comply with all relevant Australian Standards, State and Federal Legislation. Prior to the commencement of construction of any facilities copies of the relevant licenses will be provided to PIRSA.

5.3.5 Type of Equipment

The core mining equipment fleet (CMEF) to be utilised in the mining process at Cairn Hill is listed in Table 5.6. Final selection of equipment will be based on availability at the start of the project.

Table 5.6 Summary of Mining Equipment

Equipment Hydraulic Excavator (up to 120t) Number 1 Dump Truck (up to 100t) Number 4 Motor Grader – up to Caterpillar 16H (or similar) Number 1 Water Cart – up to 35kl Number 1 Service Truck Number 1 Total Equipment 8

All equipment shall be serviced and maintained as per the manufacturer’s recommendations.

MARP FINAL 051108.DOC Page 73 Cairn Hill Magnetite-Copper-Gold Mining Project

5.4 Ore Haulage and Stockpiles

5.4.1 Ore Stockpiles and Waste Dumps

5.4.1.1 Ore Stockpiles

The ROM pad will be constructed from alluvial material of a silty clay (desired) consistency watered and compacted to a height of up to 500 mm above natural ground level.

The raised pad will form a semi-impermeable layer, that will assist in water diversion and limit the ingress of any contaminated water into the natural ground layer (e.g. in the event that the waste rock stockpile contains any AFR or PAF rock). In addition, the surface of the ROM pad may be further stabilised by placing a layer of NAF rock as a base.

“Drain to pit’ strategies will be followed with all stockpiles of ore or waste where acid rock drainage is a problem and drainage may be managed by constructing lined channels to the open cut pit or to sumps located on the down slope side of the ROM pad area.

The ROM pad will be up to 300m x 300m in dimension.

A pad of this size will enable numerous ore stockpiles to exist to allow ore blending strategies to occur at the mine in preference to occurring elsewhere.

Free standing ore stockpiles shall be established on the ROM Pad.

Ore stockpiles shall be roughly rectangular in shape and shall be limited in height to as to what can be safely established with the size of mobile fleet being utilised.

Stockpiles will be established by ‘butt dumping’ with dump trucks, dozing the top of the dumps and building another lift or if sufficient material is available by establishing a ‘tiphead’.

If a loader is to be used to feed the mobile screening / crushing plant and if the height of the stockpile is greater than the reach of the loader a ‘dozer’ shall be used to cut the dump down to an adequate height.

The mobile screening / crushing plant shall be moved between stockpiles.

5.4.1.2 Un-sterilised Stockpiles

For the project both sterilised (waste rock) and un-sterilised material stockpiles will be located on site. Un-sterilised stockpiles will contain material that does not currently meet desired grades, however, may have some economic value in the future should strategic mine planning reveal economic benefit from recovering lower grade ore. Those stockpiles with potential future economic value will not specifically be considered ‘waste rock dumps’ but will generally be located in the two designated waste dump footprints.

MARP FINAL 051108.DOC Page 74 Cairn Hill Magnetite-Copper-Gold Mining Project

ROM Pad

Figure 5.7 ROM Pad Location

5.4.2 Modes and Hours of Haulage

Haulage operations will occur on a continuous (365 days / year) basis.

Ore haulage may occur on a double shift basis (dayshift and nightshift).

As no accommodation will be available on site the hours of work per shift shall be structured to take into account travel time to / from Coober Pedy.

5.4.3 Type of Equipment

The fleet to be utilised in the haulage process at Cairn Hill is listed in Table 5.5. Final selection of equipment will be based on availability at the start of the project.

A loader will load the roadtrains at Cairn Hill.

At Rankin Dam (railing siding) the roadtrains shall run along the face of stockpiles, side tipping their loads. A loader shall be used to push and form stockpiles.

Trains shall be loaded with a loader.

The haulage contractor shall also maintain the haulroad between Cairn Hill and Rankin Dam

Table 5.7 Summary of Haulage Equipment

Ore Haulage Wheel loader - up to Caterpillar 980 or 988 (or Number similar) on Mine Site 2

MARP FINAL 051108.DOC Page 75 Cairn Hill Magnetite-Copper-Gold Mining Project

Roadtrains – ‘triples’ Number 5 Wheel loader - up to Caterpillar 988 (or similar) Number at Rail Siding 2 Road Maintenance Watercart (up to 40kl) Number 1 Grader – up to Caterpillar 16H (or similar) Number 1 Service Truck Number 1 Total Equipment 11

All equipment shall be serviced and maintained as per the manufacturer’s recommendations

5.5 Crushing and Processing

5.5.1 Crushing Plant

The screening and crushing plant will be designed to treat approximately 1.35Mtpa of magnetite and copper – gold bearing ore.

The plant operation will consist of:

• Pre crusher ore stockpiles • Mobile screening and crushing plant(s) • Dry magnetic separation • Storage of crushed ore in a post crusher ore stockpile

All product produced shall be less than 40mm.

If extra screening and crusher capacity is required further mobile plants may be sourced.

During the course of the mine life and particularly if further exploration success occurs a fixed plant may be established.

This would consist of:

• Primary open circuit crushing of ROM ore; • Closed circuit secondary crushing • Primary / secondary screening • Dry magnetic separation

Primary crushing may occur in a single stage primary jaw crusher and will be conveyed to a vibrating screen. The primary process will nominally produce up to 80% of particles less than 125mm in size. A rockbreaker may be provided to deal with oversize particles, and the ROM bin may be protected from oversize rocks by a fixed grizzly.

Proceeding the primary crushing, the ore particles sized 40mm or less, will be screened on a vibrating screen and discharge the primary ore onto a conveyor belt. The ore will then be transferred to the dry magnetic separator, and all oversized particles (> 40mm) will be progressed for secondary crushing.

The secondary cone crusher will be adjacent to the primary crusher, and may be fed by a small surge bin, equipped with a vibrating feeder. The secondary crusher may discharge with the primary feeder for screening the ore.

MARP FINAL 051108.DOC Page 76 Cairn Hill Magnetite-Copper-Gold Mining Project

After primary and secondary crushing (where applicable), and the screening of the ore, the undersize product may be equipped with a magnetic head pulley and slitter chute. This is designed to reject a portion of non-magnetic ore, at a rate of approximately 5 to 10% of the input. The rejected ore will be transferred from the plant to the waste dump; the upgraded product will be stockpiled for haulage.

A mobile crushing plant with a capacity of up to 300 tonnes per hour (tph) will be placed in the area as shown in the drawings.

Crusher specifications are outlined below in Table 5.8.

Table 5.8 Crusher Specification

Crusher type Striker model HDT 1112R (or similar) Machine weight 47 tonne with an impactor rotor diameter of 1120x1210mm Capacity up to 300 tph Noise Impact chamber is enclosed Emissions The 350 HP C9 Cat engine is the latest ACERT technology which meets U.S. and European Tier 3 emissions regulations Ignition sources The machine is electrically controlled with Cat engine electronic management Area Mobile unit is 17 m long x 6 m wide and 4 m high Type of construction Minor civils required to achieve flat, stable ground required for the crushing plant Noise sources Engine, impactor and feeder when loaded Dust sources and Hopper/feeder when being loaded, impactor, and main discharge belt composition

No chemical processing of ore shall occur on site.

5.5.2 Hours of Operation

Screening and crushing operations will occur on a continuous (365 days / year) basis.

Screening / crushing may occur on a double shift basis (dayshift and nightshift).

As no accommodation will be available on site the hours of work per shift shall be structured to take into account travel time to / from Coober Pedy.

5.5.3 Type of Equipment

The fleet to be utilised in the feeding of the crusher at Cairn Hill is listed in Table 5.7. Final selection of equipment will be based on availability at the start of the project.

Crusher feed may occur by either loader or small excavator.

Table 5.9 Summary of Crusher Feed Equipment

Crusher Feed Wheel loader - up to Caterpillar 980 or similar Number 1 Excavator – up to 30t Number 1 Total Equipment 2

MARP FINAL 051108.DOC Page 77 Cairn Hill Magnetite-Copper-Gold Mining Project

All equipment shall be serviced and maintained as per the manufacturer’s recommendations

5.6 Mine Waste

5.6.1 Waste Dump

5.6.1.1 Geochemical Waste Rock Characterisation

A geochemical assessment (Appendix E) involving the analysis of selected samples of overburden sediments, ore and country rock indicated that all the overburden and country rock samples had negligible sulphur content and were classified as Non Acid Forming (NAF). The ore contains sulphides which are associated with Acid Rock Drainage (ARD) and are therefore classified as Potentially Acid Forming (PAF). It is estimated that about 5% of the waste rock may have marginally economical grades of ore and this material will be continually assessed during extraction for blending with ore or sending to the waste dumps. Based on these results the volumes of NAF and PAF are summarised in Table 5.10.

Table 5.10 ARD Classification of Waste Rock

Waste rock NAF(t) PAF (t) Total Waste Rock (t) unit Alluvial 9,110,000 9,110,000 Host rock 13,639,150 717,850* 14,357,000 Total waste 22,749,150 717,850 23,467,000 % of total 97% 3% 100% waste rock • assuming 5% of host rock • estimated total volumes

The mostly mildly acidic to alkaline pH results indicate the ore materials have low acid producing capacity and short term storage of the ore on the surface is not likely to be problematic. The arid climate of the Cairn Hill significantly reduces the potential to spread any ARD that may be generated.

5.6.1.2 Physical Waste Rock Characterisation

The physical characteristics of the waste rock as they relate to extraction and storage have been derived from studies undertaken by Snowden (2006) and volumes derived from mine plans, are summarised below in Table 5.11.

Table 5.11 Summary of Waste Rock Volumes and Properties

Waste Mining Operations Storage in Waste Dumps rock unit Volume In- Tonnage Tonnage Bulking Placed Storage Angle of (m3) situ (t) (t) factor Density volume repose Dens (%) (t/m3) (m3) (°) ity (t/m3) Alluvial 4,338,291 2.1 9,110,000 9,110,000 30 1.6 5,694,000 32 Host rock 5,127,421 2.8 14,357,000 14,357,000 30 2.15 6,678,000 45 Total 9,465,712 23,467,000 23,467,000 12,372,000 Waste

MARP FINAL 051108.DOC Page 78 Cairn Hill Magnetite-Copper-Gold Mining Project

The alluvial profile to be extracted at Cairn Hill is comprised of coarse quartz sands ranging in depths from 12m to 30m. These sands are loose on the surface and have become lightly cemented and dense through the remainder of their profile. These lightly cemented sands can be excavated above the water table in near vertical temporary faces (as shown in the trial pit) but will eventually fail using circular failure mechanics once exposed and dried out to a rill slope angle of approximately 32° (Snowden, 2006). In-situ densities of the alluvial sands ranged from 1.99 t/m3 to 2.3 t/m3, with a mean of 2.11t/m3 used for volume estimation purposes. The sands when removed from the pit will be placed in the waste dumps, with an estimated bulking factor of 30%, at a placed density of around 1.6t/m3 which reflects the limited compaction achieved by trafficking by mine equipment.

The host rock ranges from weathered to fresh bedrock comprised of gneiss of medium to very high strength (UCS ranging from 25MPa to 250MPa). In-situ densities of the bedrock materials range from 2.15 t/m3 (for weathered rock) to 3.25 t/m3, with a mean of 2.8t/m3 used for volume estimation purposes. The waste rock will be drill and blasted and will be placed in the waste dump using end- tipping methods which is expected to form batter slopes of approximately 45°. Using an estimated bulking factor of 30%, the placed density of the waste rock is assumed at about 2.15 t/m3. The host rock waste high strength material may be used for rock-armouring and pit safety bund construction.

5.6.1.3 Waste Rock Management

Over the life of the mine, approximately 23 Mt of waste rock will be mined (see Table 5.9) and placed in either the northern or southern waste rock dumps (Figure 5.8) with footprints of 22.5ha and 25.5ha respectively. The capacity required for the waste dumps is approximately 12.3Mm3 which given the footprints of the two waste dumps are expected to have final heights of about 40 m (184 m RL). The outer faces of the waste dumps will be constructed using either host rock or alluvial materials end-tipped in nominal 10m lifts. The outer faces of the dump will not be battered down but rather left at the materials natural angle of repose. Predominant winds, south and south easterly (summer) and north and north easterly (winter) will create windblown, natural erosion on the waste dumps. Windblown material (tails) will propagate on the downwind side of the waste dumps over time. The faces of the dumps will be created in a non linear way (non straight faces). Over time as a result of the wind blown erosion it is expected that part of all the berms left every 10m on the dump will deteriorate either partially or completely in localised areas. As the outer faces of the dump are constructed using host rock and / or alluvial materials, windblown erosion will affect mainly the alluvial material and not the host rock resulting in further, non lineal land forms. Any PAF material will be placed within the main body of the waste dump and encapsulated by the host rock waste material (NAF).

MARP FINAL 051108.DOC Page 79 Cairn Hill Magnetite-Copper-Gold Mining Project

Waste Dumps

Figure 5.8 Waste Dump Location

5.6.1.4 General Construction and Operation

The waste dumps have been designed to: • Minimise their footprints, • Minimise haulage distances but remain outside the long term potential instability zone of the pit (a perimeter line extending 45° from the base of the pit). • Maximise the use of the NAF to encapsulate any PAF waste rock. • Accommodate all waste rock generated in the mine life. • Facilitate a stable rehabilitated landform.

The waste dumps will be progressively constructed with the PAF materials placed within the inner section of the waste dumps and NAF waste rock on the outer perimeter. The northern waste dump will primarily receive waste from Pit 1 whilst the southern waste dump mainly from Pit 2. Several waste dump faces may be active at any one time and will faces will be based on extraction rates of the alluvial and host rock materials.

A perimeter drain may be constructed at the base of the waste dump faces which will capture water run-off and facilitate evaporation of the water leaving any sediment in the drain.

5.6.1.5 Management of Potentially Acid-Forming Material

Alluvial and host rock materials are NAF and are not expected to pose ARD hazards or contaminate leachate. A small proportion (about 5%) of the waste rock may contain sulphides at economic to sub-economic grades (off-specification ore). This PAF material will be identified in the pit during extraction and placed on a prepared low permeability pad whilst an assessment on its suitability for blending into the ore material or storage in the waste dump is undertaken. The pad may be constructed with perimeter drainage which will be directed into the pit. This PAF material, if directed to the waste dump, will require infiltration control, utilising a NAF encapsulation method to

MARP FINAL 051108.DOC Page 80 Cairn Hill Magnetite-Copper-Gold Mining Project

isolate it from the natural ground surface and surface infiltration. This will be achieved by placing the PAF material onto a bed of NAF host rock within the inner section of the waste dump and then surrounding it by NAF host rock material.

The expected small volume of PAF material (approx 3% of waste volume) is expected to be mined during the early stages of operations and may be placed in either of the waste dumps, depending on the availability of NAF host rock at the time of storage. NAF materials will also be placed in the uppermost level of the waste dumps to provide a NAF cap over the waste dump. The thickness of the NAP cap and arid conditions should prevent any infiltration of moisture into the PAF materials, subsequent acid leachate generation and escape of the leachate through the encapsulated NAF material into the surrounding environment.

5.6.2 Industrial and Domestic Wastes

Domestic wastes from service areas and industrial wastes such as waste oils, scrap steel, tyres, packaging and drums etc. will be generated during operations.

Bio-degradable litter will be collected in lidded drums then taken off site by a suitable contractor

Paper and recyclable containers made from plastic, metal and glass will also be collected and taken off site by a suitable contractor.

Scrap metals, tyres, batteries etc. will also be collected for recycling and disposal off site.

Domestic wastewater from the administration and mine site will be collected and will be piped to a centrally located septic system.

Any septic system established shall comply with the relevant standards and be approved by the Department of Health.

5.6.3 Silt Control and Drainage

The project site is located in an arid environment where evaporation far exceeds rainfall. Annual rainfall is in the range of 117.5mm to 157.7mm (Appendix B).

Run off dams may be located on the downslope side of the laydown pad, ROM pad and waste dumps.

Actual location and number of dams will be dependant upon actual rainfall events.

Any rainfall will be attempted to be harvested and utilised throughout the mining operation.

MARP FINAL 051108.DOC Page 81 Cairn Hill Magnetite-Copper-Gold Mining Project

Proposed Run Off Dams Location (not to scale)

Water Flow

Proposed Turkeys Nest Location

Figure 5.9 Run Off Dams

MARP FINAL 051108.DOC Page 82 Cairn Hill Magnetite-Copper-Gold Mining Project

5.6.3.1 Site Water Management

Integral to the ongoing management of the project’s water resources will be water conservation principles such as recycling and minimising water consumption.

A lined turkey’s nest shall be established adjacent to the laydown pad.

5.6.3.2 Mine dewatering

It is not anticipated that significant mine dewatering activities will be required as part of the mining activities.

Mining operations will extend below the local water table, which is about 30m below the surface; however the highly permeable sandy sediments are shallow and unsaturated in the area of the pit. Therefore groundwater is unlikely to seep very quickly into the pit as it will come from isolated fractures only. It is expected that no pit dewatering bores will be required.

In the event that groundwater flow into the pit occurs during the operations the water will be utilised for dust suppression.

5.6.3.3 Site Run-off

Figure 5.10 shows the final pit outline for the current life of the operation as well as surface contours confirming the creek beds to the east and south are not intersected.

A bund will be constructed around the crest of each pit.

This bund can be utilised as a water diversion bund as required.

Waste dumps are located to the north and west of the pits. The location of the western dump will ensure that runoff is diverted to the southern creek bed. The northern dump does not intersect any creek beds

A creek tributary intersects Pit 2. Prior to the development of Pit 2 this tributary shall be diverted around the pit and the western waste dump

To protect the downstream environment from potential contamination, hydrocarbon interceptors and chemical containment areas will be included (where required) as close as possible to the potential source of the containment.

Surface water discharge from silt traps during storm events will be the only water discharges to the downstream environment.

5.6.3.4 Dust Control

Dust generation will be minimised by utilising water carts on haulroads, the ROM pad and Laydown pad and conditioning the ore. Water may be added at the ROM bin prior to crushing and other appropriate locations as required.

Discharge of sediment to the surface water system will be controlled with appropriate drainage measures.

MARP FINAL 051108.DOC Page 83 Cairn Hill Magnetite-Copper-Gold Mining Project

Water Flow

Figure 5.10 Surface Water Management

MARP FINAL 051108.DOC Page 84 Cairn Hill Magnetite-Copper-Gold Mining Project

5.7 Supporting Surface Infrastructure

5.7.1 Road Access

Initially vehicular access to site will be via the existing pastoral access track from the Stuart Highway. The road will be watered prior to and during operation for dust suppression and to maintain a stable running surface for the duration of the trial mine. The existing road is a private road and access will be restricted to that necessary for mine establishment and operations. There will be no public access along the road.

Approximately 14km of unsealed double lane (15m wide) road will be established from the Stuart Highway to the mine site (Cairn Hill).

An underpass under the Stuart Highway is required to enable the ore to be transported safely and efficiently from the mine site to the rail siding.

Approximately 44km of unsealed double lane (15m wide) road will be established from the Stuart Highway to the rail siding (Rankin Dam)

Figure 1.4 shows the location of the to be constructed haulroad.

5.7.2 Rail Siding

The location of the siding has been selected to minimise impact on the ecology of the area and to provide access to ports.

A new siding will be constructed approximately 8km to the north of the previous siding appurtenant to the Central Australian Railway

5.7.3 Accommodation and Offices

No accommodation will be established at Cairn Hill.

Offices for TR, the mining contractor and haulage contractor will be established at Cairn Hill,

The size of each office will be suitable to house each individual areas requirement.

The offices will be of the ‘demountable’ type and will be constructed and installed to the relevant standards.

A suitably sized RO plant will be established for the operation.

All offices, car parks, RO plant etc. will be established on the Laydown Pad.

The laydown pad will be approximately 300m x 300m. (refer to Figure 5.7)

5.7.4 Public Roads, Services and Utilities used by the Operation

The Stuart Highway will be utilised to transport personnel and consumables to the Cairn Hill ‘turn off’.

From the ‘turn off’ access will be the yet to be constructed haul / access road.

No public power, water, electricity will be required for the operation.

MARP FINAL 051108.DOC Page 85 Cairn Hill Magnetite-Copper-Gold Mining Project

Communications for the site will be established either via satellite or other ‘remote’ means.

5.7.5 Visual Screening and Site Security

Due to the location of the remoteness of the operation no vegetation is proposed to be constructed for the purpose of screening.

At this point in time no fencing (to limit unauthorised access) around the ML is proposed. Sufficient signage shall be established along the route of the haulroad highlighting the nature and use of the haulroad.

5.8 Resource Inputs

5.8.1 Workforce

The project will employ approximately 50 to 60 people for the operation.

Where possible, employees with be sourced locally and from South Australia but additional recruitment from elsewhere in Australia may be required. As such a component of the workforce may be employed on a FIFO basis ex Adelaide or elsewhere.

Employees will reside in Coober Pedy and be transported to site.

A proposed breakdown of total project employment figures is as follows:

Table 5.12 Proposed Employment Figures – Cairn Hill

Area Number

Termite Resources

• Site Management (includes Support Up to 4 Services Manager) Up to 3 • Site Geology Up to 3 • Site Survey

Mining Contractor

• Site Management Up to 10 • Operators Up to 33 • Drill and Blast Up to 10 • Maintenance Up to 15

Haulage Contractor

• Site Management Up to 2 • Operators Up to 15 • Maintenance Up to 3 Rail Contractor TBA • Supervision and Operators

MARP FINAL 051108.DOC Page 86 Cairn Hill Magnetite-Copper-Gold Mining Project

Port Operations TBA

TOTAL (excluding Port Operations) Up to 98

5.8.2 Energy Sources

Energy supply for the operation will be via portable Gen Sets.

All Gen Sets shall be serviced and maintained as per manufacturer’s recommendations.

5.8.3 Fuel Storage

The main fuel storage facility will be located on the Laydown Area as shown in Figure 5.7.

The tanks will store up to four (4) weeks of fuel supply for the operation.

The fuel storage facility will be established to the relevant Australian Standards and as to SA EPA Requirements (EPA guideline 080/04)

5.8.4 Water Sources

The mine operations will require water for:

dust suppression; material conditioning for infrastructure; drinking

Table 5.13 provides the details of the bores for which a water allocation and licence has been lodged with DWLBC and outlines water requirements of the whole mine operations (see Figure 4.7 for bore locations).

Table 5.13 Water Allocation Application Details

Water Allocation Aquifer Well Number Purpose Location Requested (kL) 300 m3/day Mine construction (109,500 m3/year) Cadna-owie CHPB01 and Dust CL 1628/ 71 for dust Formation Suppression suppression palaeochannel 3 aquifer (partially 500 m /day Mine construction 3 saturated, (182,500 m /year) confined aquifer CHPB02 and Dust CL 1628/71 for dust sand dominated) Suppression suppression The estimated water requirement during operations is up to 500 m3/day and will be supplied from CHPB02 with water being drawn from CHPB01 if additional water is required.

Annual water usage will be approximately 182,500 m3. This will primarily be sourced from either CHPB01 or CHPB02 with additional water being sourced from the pit (if required).

5.8.4.1 Groundwater Infrastructure and Storage

Production wells will be established with associated power supply, pipeline to the main mining area and an associated maintenance track(s). The track will be suitable for light vehicles / service trucks,

MARP FINAL 051108.DOC Page 87 Cairn Hill Magnetite-Copper-Gold Mining Project

Power will be supplied by mobile Gen Sets.

Water pipelines from the production bores will be nominally 100mm to 200mm polyethylene. Pipes will be laid on the surface from the bores to a turkeys nest located near the Laydown Pad.

5.8.4.2 Treatment of Raw Groundwater

A reverse osmosis (RO) plant will be located on the Laydown Pad to provide potable water for the site.

Any wastewater generated through the operation of the RO plant shall be collected and used in dust suppression activities (where possible) around site.

MARP FINAL 051108.DOC Page 88 Cairn Hill Magnetite-Copper-Gold Mining Project

6. Environmental Impact Assessment

Environmental Impact Assessment (EIA) is an assessment of the impacts to the biophysical, social and economic dimensions of the environment, in this case as a result of the proposed mining operations at the Cairn Hill site.

The EIA process provides a structure in which the environmental consequences of options can be considered when developing and formulating projects. As a result, the potential environmental impacts are identified, minimised and managed in a cost effective manner. The impacts considered are broad ranging and include both on and off-site impacts as well as direct and indirect impacts.

6.1 Approach

6.1.1 Mine Operations

The approach to the EIA was developed based on the risk assessment process detailed in the PIRSA Guidelines for the Preparation of a Mining Lease Proposal or Mining and Rehabilitation Program (MARP) Revision 4.8 (PIRSA 2007)

To assist in the identification of environmental aspects and provide a framework for the environmental impact assessment associated with the Cairn Hill Project, an environmental risk assessment workshop was conducted in the early stages of the project development (November 2006) Present at the workshop were representatives from PIRSA and DWLBC.

The risk assessment for the main Cairn Hill Project was then reassessed for the trial mining operation and detailed within the EWMARP, and again for the main mining operations taking into consideration changes to operations, as detailed in the following sections.

The aspects and impacts identified for the mine operations are outlined in Sections 6.4 to 6.11 with a summary of the risk assessment outcomes being detailed in Section 6.12.

Further details regarding the criteria used in the risk assessment for the operations are provided below.

6.1.2 Identification of Issues, Aspects and Impacts

A total of 31 environmental issues were identified as being associated with the mining operations. For each of these issues, specific aspects and impacts have been discussed and are presented in the Cairn Hill Environmental Risk Register (Appendix H).

6.1.3 Risk Identification and Assessment

6.1.3.1 Process

Inherent risk is a measure of the likelihood and consequences of environmental harm occurring from an activity if the project was to be undertaken without having any regard to environmental impacts and risks i.e. it does not take into account any environmental management and mitigation measures.

MARP FINAL 051108.DOC Page 89 Cairn Hill Magnetite-Copper-Gold Mining Project

The Inherent Risk Level (IRL) has been assessed against the identified objective based on knowledge of the existing environment, experience with similar operations elsewhere and issues of concern identified by project stakeholders.

Consideration has then been given to avoidance, mitigation and/or management measures. These have been categorised as Design Control Measures (i.e. those measures that can be incorporated into the design of the mine and associated infrastructure) and Operational Management Measures (e.g. identification of management approaches and plans to be implemented both during and following operation).

The Design Control Measures and Operational Management Measures are considered technically and economically feasible and reflect TR’s commitment to minimising environmental impact by best practice mining and environmental management.

The final component of the assessment involved assessing the Residual Risk Level (RRL) associated with each of the identified aspects. This assessment assumes the effective implementation of the proposed Design Control and Operational Management Measures.

The descriptors used in the IRL and RRL assessments are based on the categories as outlined in the PIRSA Guidelines for the Preparation of a Mining Lease Proposal or Mining and Rehabilitation Program (MARP) Version 4.8 (PIRSA 2007).

6.1.3.2 Likelihood Rating

The likelihood of each event occurring should be determined, based on information such as past experience, known meteorological data / site conditions etc, and the effectiveness of proposed control measures. The likelihood (LHD) of the event is classified using the following categories (Table 6.1):

Table 6.1 Qualitative Measures of Likelihood

Level Rating Description 1 Virtually Has almost never occurred in similar mines but conceivably Impossible (VI) could 2 Unlikely (U) May occur in some mines but not expected in Cairn Hill Operations 3 Possible (P) May occur at operations 4 Likely (LI) Likely to occur during mine lifetime 5 Virtually Will occur, or is of continuous nature, or the likelihood is Certain (VC) unknown

6.1.3.3 Consequence Rating

The severity of each event occurring should be determined, based on information such as the potential scale of the event, the range of stakeholders who may be affected, the duration of the event and the difficulty in remediating the impact. The consequence (CON) of the event is classified using the following categories (Table 6.2):

Table 6.2 Qualitative Measures of Consequence

Level Rating Description A Disastrous (D) Extreme permanent changes to the environment (rehabilitation is not practical), major public outrage or the consequences are unknown.

MARP FINAL 051108.DOC Page 90 Cairn Hill Magnetite-Copper-Gold Mining Project

Level Rating Description B Severe (S) Substantial and significant changes will attract public concern, only partial rehabilitation possible or uncertain if rehabilitation can be successful. C Moderate Significant changes may be rehabilitated with difficulty. (MOD) D Minor (MIN) Some limited consequence but no significant long-term changes, may simply be rehabilitated, not of significant concern to wider community. E Negligible (N) Possible impacts but without noticeable consequence

6.1.3.4 Risk Determination and Categories

The risk associated with each event is then determined using the matrix below (Table 6.3):

Table 6.3 Risk determination and categories

Likelihood of Consequences 1 2 3 4 5 Virtually Unlikely Possibl Likely Virtuall Impossible e y Certain Negligible VL VL L L L Effects Minor Effects VL L MED MED MED Moderate Effects L L MED MED H Severity of Severe Effects MED MED MED H H Consequence Disastrous MED MED H H H

Legend H : High risk L: Low risk MED : Medium risk VL : Very Low risk

6.1.4 Risk Acceptance

A consideration of each of the identified aspects, impacts and RRL has been undertaken to assist in determining whether the residual risk is considered to be acceptable.

When considering the identified RRL, a process of involved and deliberate thinking and debate was undertaken by the proponent and a number of project stakeholders including environmental professionals. By involving a number of parties in the evaluation, a balanced outcome has been achieved that takes into account the risks both from a technical and economic and social perspective.

As outcomes of the risk assessment process, the residual risks are considered by TR to be appropriate risks that are associated with the project that they are knowingly prepared to accept.

Discussion regarding the risk acceptance for the identified aspects and impacts are discussed in the respective sections below.

MARP FINAL 051108.DOC Page 91 Cairn Hill Magnetite-Copper-Gold Mining Project

6.1.5 Control and Management Measures

The incorporation of control and management measures into the project includes both Design Control Measures and Operational Management Measures. Design control measures are the primary control measures designed to ameliorate the impact prior to it occurring. They encompass aspects of the project such as infrastructure design and placement e.g. inclusion of impermeable barriers in dam design. Secondary measures are those that involve management activities during operations e.g. management and monitoring plans.

Implementation of both design and operational management control measures will facilitate the achievement of the identified objectives.

6.1.6 Environmental Objectives, Predicted Outcomes and Assessment Criteria

TR’s objective is to establish a modern, profitable, magnetite-copper-gold mining operation to current safety, social and environmental standards.

Specific environmental objectives for each of the 10 environmental categories have been developed to assist in the implementing the environmental management program for the mining operations and are outlined in Tables 6.4 to 6.10 below.

The predicted outcomes developed for each of the 10 environmental categories are based on the objectives developed for each issue as well as the results of the risk assessment. The predicted outcomes reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

Predicted outcomes and assessment criteria have not been developed where the inherent and residual risk levels are considered to be low or very low with the exception of those aspects which have an associated Mining Lease Condition.

6.1.7 Predicted Outcomes and Assessment Criteria

In some instances Potential Impacts are discussed in the text but no reference is made to these Potential Impacts under the Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria Tables. Advice received from PIRSA on the 22nd October 2008 suggested for impacts with a Residual Risk Level (RRL) of L (Low) or VL (Very Low) which had a Predicted Outcome and Assessment Criteria of ‘Not Required’ to be removed from the MARP, references are made as part of the text and as part of the Appendices.

MARP FINAL 051108.DOC Page 92 Cairn Hill Magnetite-Copper-Gold Mining Project

6.2 Flora (Native Vegetation)

6.2.1 Context

The Cairn Hill project site is located within the arid lands of South Australia within the Stony Plains Bioregion. The Stony Plains Bioregion is characterised by gibber and gypsum plains, sand plains and ephemeral watercourses. Specifically, the major habitats found within the ML area were:

• Stony tablelands defined by gibber and Gilgai depressions supporting chenopad shrubland vegetation and the occasional stony rise dominated by chenopad shrublands;

• Sandy watercourses supporting Acacia woodlands (Elegant Wattle (Acacia victoriae)/ Dead Finish (Acacia tetragonophylla)) tussock grasslands (Swamp Cane-grass (Eragrostis australasica)); and

• Epehermal swamps and sand sheets supporting chenopad shrubland vegetation

The relevant Acts of legislation that protect the state’s flora and provide a framework for ongoing management include:

Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth) National Parks and Wildlife Act 1972 (State) Native Vegetation Act 1991 (State).

Further details regarding the requirements and relevance of these pieces of legislation to the project are discussed in Section 2.

In accordance with the requirements of the Guidelines for a Native Vegetation Significant Environmental Benefit Policy for the clearance of native vegetation associated with the minerals and petroleum industry (PIRSA 2005), Significant Environmental Benefit (SEB) requirements will be met as a result of the clearing of vegetation for the project (see Section 7.1 – Native Vegetation Management Plan).

6.2.2 Potential Impacts

Five impacts to native vegetation which may arise as a result of activities associated with the mining operation have been identified and are described in the sections below:

6.2.2.1 Clearance of Vegetation: Reduced Species Abundance

Approximately 118.35ha of vegetation will be cleared to facilitate the establishment of mining operations (infrastructure) and components on the ML (see Section 7 for SEB calculations). Despite all the vegetation associations within the area being locally important for general biodiversity conservation purposes, it is anticipated that the clearing associated with the project will have a minor impact on native flora overall due to the general extent of the vegetation in the region.

Without any consideration and management, it is unlikely that there will be reduced regional species abundance from vegetation clearance. It is considered that any impact would be of minor consequence on native flora in the region (due to the relatively small area of impact and abundance of similar habitat in the region). As such, this provides a very low level of inherent environmental risk associated with the project.

MARP FINAL 051108.DOC Page 93 Cairn Hill Magnetite-Copper-Gold Mining Project

6.2.2.2 Effects on Threatened Species/Vegetation Associations of Conservation Significance

The Eragrostis australasica (Swamp Cane-grass) Tussock Grassland Vegetation Association is considered to be of conservation significance. This association is located within the creek bed along sections of the Engenina Creek tributary, which runs north into the main channel.

Sclerolaena blackiana (Black's Bindyi) is the only flora species of conservation significance detected during the October 2006 field survey. The species is listed as Rare, under the National Parks and Wildlife Act 1972. The species is likely to be more widespread across the stony tablelands of the project area than is reflected by the survey results.

The Commonwealth EPBC ‘Protected Matters Search Tool’ indicated that Maireana melanocarpa (Black-fruit Bluebush) may occur in the Cairn Hill project area. The species has a national rating of Vulnerable (EPBC Act 1999) and a state rating of Rare (National Parks and Wildlife Act 1972). As outlined in Section 4, this species was not detected during the field survey.

A total of 168 flora species have been previously recorded within close proximity to the Cairn Hill project area, of which 167 are native species and one is exotic (DEH Databases, 2006 in EBS 2006a) (refer to the EBS report for the full list).

It is considered unlikely that without any control or management the clearance of vegetation on the ML will reduce the regional species abundance of native flora species/vegetation associations which are of conservation significance. In the event of an impact, it is considered that a moderate consequence would eventuate. This provides a low inherent environmental risk.

6.2.2.3 Wind Generated Dust: Reduced Plant Regrowth Due to Smothering

Open areas within the project area will present an opportunity for the wind generation of dust being deposited on areas of uncleared vegetation. The consequences of deposited dust on vegetation can include reduced plant regrowth as well as damage to existing vegetation.

Without implementation of dust controls, reduced regional abundance of flora species from dust generation associated with the mining operations are considered unlikely. Should impacts occur, it is considered that they would be minor in consequence. This results in an overall inherent environmental risk level of low.

6.2.2.4 Vegetation Impacts Due to the Use of Saline Water for Dust Suppression

Impacts associated with use of saline water for dust suppression are related to reduced plant regrowth and damage to existing vegetation that can be caused by either salt impacts on foliage or increased soil salinity.

Without any controls or management, reduced regional abundance of flora species from using saline water for suppression is considered unlikely with a minor consequence. This provides a low inherent environmental risk.

6.2.2.5 Introduction of Weed Species

It is possible that both weed density and distribution may increase on site as a result of the following activities associated with the project:

MARP FINAL 051108.DOC Page 94 Cairn Hill Magnetite-Copper-Gold Mining Project

soil disturbance (associated with vegetation removal) movement of vehicles, machinery and equipment.

No weed species were identified in the project area during the vegetation survey and although weed species are less common in the area, there still remains a potential that weeds will germinate following rains. Only one exotic species has been previously recorded in the area (DEH records); Buffel Grass (Cenchrus ciliaris). This species is not a proclaimed weed.

It is considered possible that soil disturbance or traffic movements associated with the ML area will create favourable conditions for the germination of weed species as well as the introduction of new weed species. With no control mechanisms, increased weed abundance has the potential to create a minor consequence within the regional area. This results in an overall inherent risk of medium.

6.2.3 Design Control and Operational Management Measures

6.2.3.1 Design Control Measures

Design control measures to minimise impacts to native vegetation have involved minimising the area required for clearing as far as practicable, and defining those areas so that additional clearance is not undertaken.

Placement of mine infrastructure to minimise the operational footprint and avoid disturbance to key habitats has been undertaken where practical. A specific effort has been made to minimise areas identified in the specialist studies as being sensitive to disturbance.

6.2.3.2 Operational Management Measures

Measures to avoid, mitigate and manage the risks associated with flora and native vegetation removal during trial operations have been developed and include:

Implementation of a Native Vegetation Management Plan (see Section 7.1) that includes the maximum allowable vegetation clearance (and corresponding SEB requirements) and management measures to monitor this. Implementation of a Dust Management Plan (see Section 7.4). Implementation of a Weed Management Plan (see Section 7.3).

6.2.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

Reconsideration of the risks to flora (native vegetation) during mine activities and taking into account the design and operational management measures has resulted in the residual risk of each identified impact remaining at, or being reduced to low.

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as reasonably practicable and for this reason are considered by TR to be acceptable for the project.

Predicted outcomes have been identified for each of the impacts and reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

MARP FINAL 051108.DOC Page 95 Cairn Hill Magnetite-Copper-Gold Mining Project

A summary of the environmental risk assessment including inherent risks, control and management measures and residual risks are provided in Table 6.4 below, in addition to predicted outcomes and assessment criteria developed as a result of the residual risk assessment.

MARP FINAL 051108.DOC Page 96 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 6.4 Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria – Flora (Native Vegetation)

Objective: To maintain the regional abundance, diversity and productivity of vegetation.

ID Aspect and impact IRL Summary of control RRL Predicted outcomes Assessment criteria and management measures CH_001 Reduced regional L Defined areas for L Mining Lease Clearance not to occur abundance of flora vegetation clearance condition: No outside of the areas shown species due to (disturbance) significant adverse in Figure 1.2 – Mining clearance of Native Vegetation impact on the Lease Area and not to vegetation Management Plan abundance and exceed clearance footprint (NVMP) diversity of shown in Table 5.2 – threatened or non Project Components and threatened native Footprints flora species, as a result of mining operations CH_002 Reduced regional L As above in CH_001 L Mining Lease Clearance not to occur abundance of flora condition: No outside of the areas shown species/ vegetation significant adverse in Figure 1.2 – Mining associations of impact on the Lease Area and not to conservation abundance and exceed clearance footprint significance due to diversity of shown in Table 5.2 – clearance of threatened or non Project Components and vegetation threatened native Footprints flora species, as a result of mining operations CH_003 Reduced regional L Dust Management L Mining Lease Ongoing surveys at abundance of flora Plan. Restriction of condition: No nominated locations to species due to traffic movement. significant adverse identify changes in smothering by wind impact on the composition and generated dust abundance and abundance of flora species diversity of threatened or non threatened native flora species, as a result of mining operations

MARP FINAL 051108.DOC Page 97 Cairn Hill Magnetite-Copper-Gold Mining Project

ID Aspect and impact IRL Summary of control RRL Predicted outcomes Assessment criteria and management measures CH_004 Reduced regional L Native Vegetation L Mining Lease Ongoing surveys at abundance of flora Management Plan condition: No nominated locations to species due to the (NVMP) significant adverse identify changes in use of saline water No application of impact on the composition, condition and used for dust saline water outside abundance and abundance of flora species suppression of ‘cleared areas’ diversity of Clearance not to occur threatened or non outside of the areas shown threatened native in Figure 1.2 – Mining flora species, as a Lease Area result of mining operations CH_005 Potential for MED Weed and Pest L Mining Lease Compliance with Weed increased weeds Management Plan. condition: No and Pest Management due to soil Implement ongoing increase in the weeds Plan disturbance and inspection of the ML and plant pathogens, Complaints register traffic movements for weeds as a result of mining on site operations (Containing complaints Implement relating to weeds issues) eradication plan if with associated actions / weeds identified responses to demonstrate all reasonable complaint(s) are addressed.

MARP FINAL 051108.DOC Page 98 Cairn Hill Magnetite-Copper-Gold Mining Project

6.3 Fauna

6.3.1 Context

The Cairn Hill project site is located within the arid lands of South Australia within the Stony Plains Bioregion. The Stony Plains Bioregion is characterised by gibber and gypsum plains, sand plains and ephemeral watercourses.

The Stony Plains and Tablelands habitats within the Stony Plains Bioregion are particularly known to support the nationally threatened species; the Plains Rat (Pseudomys australis) and the Thick-Billed Grasswren (Amytornis textilis modestus). The range of both of these species has declined since European occupation and is now mainly restricted to the Stony Plains Bioregion (DEH 2005). The Thick-Billed Grasswern was identified within a drainage line along the pastoral access track south of the ML area during the targeted fauna survey at the site.

The EPBC Protected Matters Search Tool has indicated that, in addition to the Plains Rat and the Thick-Billed Grasswern, the Bronzeback Snake-Lizard (Ophidiocephalus taeniatus), the Plains Wanderer (Pedionomus torquatus) and the Slender-Billed Thornbill (Acanthiza iredalei), could be present in the area.

Based on the flora and fauna investigations undertaken at the site it is considered unlikely that the Bronzeback Snake-Lizard or the Plains Wanderer would be present in the project area due to their preferred habitats not being dominant.

With regard to the other threatened species, due to the relatively small area of potential impact posed by the Cairn Hill Project, within the preferred habitat of the potential threatened species, and the extent of suitable habitat outside of the project area, it is anticipated that although there may be local impacts (i.e. reduced habitat for local populations) upon these species; at a regional and national level, it is considered that these impacts would not be significant.

The project area is currently grazed by cattle, particularly around watering holes, resulting in the vegetation in these areas being less diverse and degraded. Due to this grazing by cattle there were limited resources (shelter and food) for native animals; consequently, it is likely population numbers of faunal species in these areas had been affected by the grazing.

The relevant acts of legislation that protects the state’s fauna and provides a framework for ongoing management include:

Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth) National Parks and Wildlife Act 1972 (State) Native Vegetation Act 1991 (State).

Further details regarding the requirements and relevance of these pieces of legislation to the project are discussed in Section 2.

6.3.2 Potential Impacts

Six impacts to native fauna which may arise as a result of activities associated with the mining operations have been identified and are described in the sections below:

MARP FINAL 051108.DOC Page 99 Cairn Hill Magnetite-Copper-Gold Mining Project

6.3.2.1 Reduced Habitat and Regional Species Abundance Due to Vegetation Clearance for Mining

Due to the abundance of similar habitats in the surrounding area, regional impacts to fauna from habitat clearance are considered unlikely and are of a negligible consequence. This provides a very low level of inherent environmental risk.

6.3.2.2 Reduced Habitat and Regional Threatened Species Abundance Due to Vegetation Clearance for Mining

Only one sighting of a threatened species during the field survey (Amytornis textiles modestus (Thick-billed Grasswren)) and due to the abundance of similar habitats in the surrounding area, it is considered that regional impacts to threatened fauna from habitat clearance are unlikely but would result in moderate consequence. This provides a low level of inherent environmental risk.

6.3.2.3 Reduction in Regional Abundance of Native Fauna Species Due to Impacts from Noise and Vibration During the Mining Operations

It is considered unlikely that there will be a reduction in regional abundance of native (including threatened) fauna species due to noise and vibration from mining operations. The consequent impact to regional species abundance is considered to be negligible which results in a low inherent risk level.

6.3.2.4 Reduction in Regional Abundance of Native Fauna Due to Entrapments or Barriers to Fauna Movements Due to Mining Operations

It is considered unlikely that establishment of the mine will cause a reduction in regional abundance of native fauna species due to entrapments or barriers to fauna movements in the ML area. Any impacts would be of minor consequence which provides an overall inherent environmental risk of low.

6.3.2.5 Reduction in Regional Abundance of Native Fauna Due to Traffic on Site Colliding with Fauna

It is considered unlikely that traffic associated with the establishment of the mine will cause a reduction in regional abundance of native fauna species due to collisions with fauna. The impacts of these collisions (to regional fauna abundance) are considered to be minor in consequence. This results in a low level of inherent environmental risk.

6.3.2.6 Increased Abundance of Introduced Fauna Species from Mine Activities

There is a potential that introduced fauna species that would not normally inhabit the area could be attracted to the site if food waste is left on site.

As all waste will be stored in lidded drums and removed regularly, it is considered unlikely that favourable conditions will be created for introduced fauna species. Without control and management, these impacts are considered to have negligible consequences. This provides a very low level of inherent environmental risk.

MARP FINAL 051108.DOC Page 100 Cairn Hill Magnetite-Copper-Gold Mining Project

6.3.3 Design Control and Operational Management Measures

6.3.3.1 Design Control Measures

Design control measures to minimise impacts to native and threatened fauna species have involved minimising the area required for clearing as much as practicable, and defining those areas so that additional clearance is not undertaken. .

6.3.3.2 Operational Management Measures

Measures to avoid, mitigate and manage the risks associated with native and threatened fauna species during trial operations have been developed and include:

Implementation of a Native Vegetation Management Plan (see Section 7.1) that includes the maximum allowable vegetation clearance (and corresponding SEB requirements) and management measures to monitor this.

Implementation of a Fauna Management Plan including site traffic restrictions and waste management.

6.3.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

Reconsideration of the risks to fauna during trial mine activities and taking into account the design and operational management measures has resulted in the residual risk of each identified impact remaining at, or being reduced to low or very low.

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as reasonably practicable and for this reason are considered by TR to be acceptable for the project.

Predicted outcomes have been identified for each of the impacts and reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

A summary of the environmental risk assessment including inherent risks, control and management measures and residual risks are provided in Table 6.5 below, in addition to predicted outcomes and assessment criteria developed as a result of the residual risk assessment.

MARP FINAL 051108.DOC Page 101 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 6.5 Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria – Fauna

Objective: To maintain the regional abundance, diversity, and productivity of fauna.

ID Aspect and impact IRL Summary of control and RRL Predicted Assessment criteria management measures outcomes CH_006 Reduced habitat VL Implementation and VL Mining Lease Clearance not to occur and regional adherence to a Fauna condition: No outside of the areas species abundance Management Plan significant adverse shown in Figure 1.2 – due to vegetation Implementation and impact on the Mining Lease Area and clearance for the adherence to a Native abundance and not to exceed clearance mine Vegetation Management diversity of footprint shown in Table Plan threatened or non 5.2 – Project threatened native Components and fauna species, as a Footprints result of mining operations CH_007 Reduced habitat L Implementation and L Mining Lease Clearance not to occur and regional adherence to a Fauna condition: No outside of the areas threatened species Management Plan significant adverse shown in Figure 1.2 – abundance due to Implementation and impact on the Mining Lease Area and vegetation adherence to a Native abundance and not to exceed clearance clearance for the Vegetation Management diversity of footprint shown in Table mine Plan threatened or non 5.2 – Project threatened native Components and fauna species, as a Footprints result of mining operations

MARP FINAL 051108.DOC Page 102 Cairn Hill Magnetite-Copper-Gold Mining Project

ID Aspect and impact IRL Summary of control and RRL Predicted Assessment criteria management measures outcomes CH_008 Reduction in L Adhere to Fauna L Mining Lease Compliance with Fauna regional abundance Management Plan condition: No Management Plan of native (including significant adverse Ensure equipment threatened) fauna impact on the complies with relevant species due to abundance and noise standards impacts from noise diversity of and vibration during threatened or non Results of monitoring mining operations threatened native program show no fauna species, as a statistically significant result of mining differences (increase or operations decrease) in native vertebrate density and diversity compared with the local area Results of monitoring program show no statistically significant differences (increase or decrease) in introduced vertebrate density and diversity compared with the local area

CH_009 Reduction in L Adhere to Fauna L Mining Lease Compliance with Fauna regional abundance Management Plan condition: No Management Plan of native fauna due significant adverse Ongoing fauna to entrapments or impact on the monitoring and barriers to fauna abundance and observation to determine movements due to diversity of changes in abundance of mining operations threatened or non fauna species threatened native fauna species, as a result of mining operations

MARP FINAL 051108.DOC Page 103 Cairn Hill Magnetite-Copper-Gold Mining Project

ID Aspect and impact IRL Summary of control and RRL Predicted Assessment criteria management measures outcomes CH_010 Reduction in L Adhere to Fauna L Mining Lease Compliance with Fauna regional abundance Management Plan condition: No Management Plan of native fauna due significant adverse Clearance not to occur to traffic on ML impact on the outside of the areas colliding with fauna abundance and shown in Figure 1.2 – diversity of Mining Lease Area and threatened or non not to exceed clearance threatened native footprint shown in Table fauna species, as a 5.2 – Project result of mining Components and operations Footprints

MARP FINAL 051108.DOC Page 104 Cairn Hill Magnetite-Copper-Gold Mining Project

6.4 Groundwater

6.4.1 Context

Preliminary groundwater investigations which included preliminary modelling of potential drawdown, and subsequent groundwater supply investigations were undertaken at the Cairn Hill site in 2006 and 2007 as detailed in Section 4.5.

A potential groundwater supply was identified at the Cairn Hill site within a thick layer of saturated sands where there is a gravity low (‘palaeochannel’). This aquifer is interpreted to be a Cretaceous Cadna-owie – Algebuckina Sandstone aquifer and was found to be largely independent of the groundwater present in the highly inhomogeneous and erratic fractures in bedrock (such as the orebody)

The project is located within an area of the Eromanga Basin, which extends further north across the main flow area of the GAB, however there is potential that groundwater in Eromanga sediments to the south and west of the Mt Woods Inlier and the Stuart Ranges are hydraulically independent to that of the main flows area of the GAB. Habermehl (1980) and Habermehl & Lau (1997) show the artesian extent of the GAB finishing some 80 km or more north-east of the study area. The boundary of the Southwest Springs Zone is approximately 30km north east of the site.

An application for a water allocation and license has been lodged with DWLBC to extract 800m3/day of groundwater for two proposed supply bores (CHPB01 and CHPB02), located in the saturated sands of the ‘paleochannel’, one which is situated outside the ML area (CHPB01) and has been applied for on an MPL. For the purposes of the risk assessment, the impact of extraction from both supply bores will be considered.

The relevant acts of legislation that protects the state’s groundwater and provides a framework for ongoing management include:

Mining Act 1971 Natural Resources Management Act 2004 Environment Protection Act 1993.

Further details regarding the requirements and relevance of these pieces of legislation to the project are discussed in Section 2.

6.4.2 Potential Impacts

Six impacts to groundwater which may arise as a result of activities associated with the mining operations have been identified and are described in the sections below.

6.4.2.1 Groundwater Drawdown

The main impacts of the proposed project on groundwater are due to groundwater drawdown and possible alterations in groundwater quality.

6.4.2.2 Extraction from Supply Bores

Results of pump tests undertaken on the supply bores as part of the groundwater supply investigations (undertaken in 2007) were used to update the groundwater model for the

MARP FINAL 051108.DOC Page 105 Cairn Hill Magnetite-Copper-Gold Mining Project

Cairn Hill Project site in order to estimate the potential extent of groundwater drawdown as a result of proposed groundwater extraction for the project.

The model indicated that the predicted drawdown from operating the two supply bores (CHPB01 and CHPB02) for 10 years is only 0.3m at the Solar Bore (pastoralist water supply), which is also within the ‘paleochannel’ and it is considered unlikely that abstraction from the supply bores will significantly affect the permanent groundwater level at this bore. It is also likely that the actual drawdown at Solar Bore will be less than predicted by the model. The impact of groundwater drawdown due to the establishment of the mine pits is considered to be negligible.

The extent of the impacts due to extraction from the supply bores is expected to be local, in the order of 10km, rather than the 80 or more kilometres that would be necessary to impact on flowing wells or springs of the GAB (or 50km to impact on the Coober Pedy town water supply).

6.4.2.3 Pit Dewatering

It is likely that fractures in the ore body are localised, with the majority of the ore body having low hydraulic conductivity (10 -4 m/day). The nature of the fractured rock ‘aquifer’ and the fact that it is largely independent from the ‘paleochannel’ aquifer, will limit the extent of the groundwater drawdown around the pit, including the influence on the nearby Solar Bore

It is expected that any minor inflows to the pit can be maintained by in-pit sump pumps. Low groundwater inflows are considered normal in the area as shown by mineral exploration drilling, the experience of pastoralists and highway construction well drilling.

6.4.2.4 Impacts to Regional Systems

Based on the results of the groundwater investigations and modelling, and due to the location of the site, a reduction in groundwater levels and flows at the Southwest Springs Zone boundary and the main flow area of the GAB, due to extraction from CHPB01 and CHPB02 are considered to be virtually impossible. In the event that drawdown events did occur, the consequence has been considered to be moderate, resulting in a low impact.

6.4.2.5 Impacts to Local Pastoralist’s Bore

Based on the results of the groundwater investigations and modelling, a small amount of drawdown (0.3m) is predicted at the pastoralist’s bore (Solar Bore) as a result of extraction from CHPB01 (and CHPB02) for a 10 year period. A reduction in the groundwater quality and availability at Solar Bore is considered possible. Due to the predicted drawdown being minimal, the consequence is considered to be minor, resulting in a medium impact.

6.4.2.6 Seepage of Materials into Groundwater

Depth to groundwater in the ML and borefield area ranges from approximately 15m to 40m below ground level (BGL). Salinity of groundwater in monitoring and investigation bores on the ML and borefield area ranges from stock quality to highly saline.

Depth to groundwater in registered bores between the Stuart Highway and the rail siding ranges from approximately 12m to 29m BGL and salinity ranges from stock quality to highly saline.

MARP FINAL 051108.DOC Page 106 Cairn Hill Magnetite-Copper-Gold Mining Project

6.4.2.6.1 Acid Rock Drainage (ARD)

As outlined previously, all overburden and country rock samples have negligible sulphur content and were classified as Non Acid Forming (NAF) while all ore samples were classified as Potentially Acid Forming (PAF). The mostly alkaline pH results suggest that short term storage of ore on the surface, including exposure to rainfall, is not likely to be problematic, and the arid climate of Cairn Hill reduces the potential spread and impact of any ARD that may be generated.

Considering also the depth to groundwater, it is considered unlikely that groundwater would be impacted by ARD, even in the case of rare large rainfall events (a few times per century) which could flush out acidic material that has slowly accumulated. If contamination of groundwater did occur from acid drainage, the consequence is considered to be moderate and as a result presents a low risk to the mining operations.

6.4.2.6.1 Fuels and Chemicals

Considering the depth of groundwater in the area of the ML, it is considered unlikely that spills of fuels or chemicals will impact on groundwater. If impacts to groundwater due to spills were to occur, the consequence is considered to be moderate. Overall the risk was assessed as low.

6.4.3 Design Control and Operational Management Measures

6.4.3.1 Design Control Measures

6.4.3.1.1 Groundwater Management

Measures to manage potential impacts to Solar Bore have been negotiated and formalised in an agreement with the pastoralist.

6.4.3.1.2 Ore Stockpile Areas

Ore and waste rock will be stored on low permeability storage pads and potentially acid forming rock will be encapsulated.

6.4.3.1.3 Fuel, Oil and Chemical Storage

Fuel and oil storage will be in accordance with SA EPA guidelines, Australian Standards and Best Practice Guidelines.

6.4.3.2 Operational Management Measures

6.4.3.2.1 Groundwater Monitoring

A Groundwater Management Plan that will be implemented for the site (see Section 7.5) which includes requirements for groundwater monitoring.

6.4.3.2.2 Ore Stockpile Areas

Leaching tests will be undertaken periodically to determine the acid forming rock potential of ore stock piles.

MARP FINAL 051108.DOC Page 107 Cairn Hill Magnetite-Copper-Gold Mining Project

6.4.3.2.3 Fuel, Oil and Chemical Storage

Refuelling will be undertaken in accordance with industry best practice and procedures will be developed. Chemical and oil storage areas will be maintained including regular inspections of the areas will be undertaken to ensure integrity, good housekeeping and correct use of areas.

6.4.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

Reconsideration of the risks to groundwater during mining activities and taking into account the design and operational management measures has resulted in the residual risk of each identified impact remaining at, or being reduced to low .

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as reasonably practicable and for this reason are considered by TR to be acceptable for the project.

Predicted outcomes have been identified for each of the impacts and reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

A summary of the environmental risk assessment including inherent risks, control and management measures and residual risks are provided in Table 6.6 below, in addition to predicted outcomes and assessment criteria developed as a result of the residual risk assessment.

MARP FINAL 051108.DOC Page 108 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 6.6 Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria – Groundwater

Objectives: To ensure that extraction and use of groundwater does not adversely affect environmental values, existing users or the health and amenity of people

ID Aspect and impact IRL Summary of control RRL Predicted outcomes Assessment criteria and management measures CH_011 Reduction in VL Water supply bores VL Mining Lease Demonstrate that there groundwater levels are a significant condition: No are no impacts to the GAB and consequent distance from reduction in springs due to project reduction in Southwest Springs groundwater flows to water extraction. groundwater flow at Zone boundary and Great Artesian Basin the Southwest the main flow area of springs due to project Springs Zone the GAB. water extraction boundary and the Adhere to main flow area of the Groundwater GAB Management Plan CH_012 Reduction in MED Adhere to L Mining Lease Monitoring of groundwater groundwater Groundwater condition: No in Solar Bore (in availability and Management Plan reduction in accordance with quality in local Agreement in place groundwater quantity Groundwater Pastoral bore (solar with pastoralist in the and quality for Management Plan). bore) resulting from event that water in existing users (Solar Measures identified in extraction for water solar Bore is Bore used by agreement with pastoralist supply bores impacted. pastoralist) due to to be implemented if mining operations groundwater in Solar Bore is impacted.

MARP FINAL 051108.DOC Page 109 Cairn Hill Magnetite-Copper-Gold Mining Project

6.5 Surface Water

6.5.1 Acid Rock Drainage

As outlined previously, all overburden and country rock samples have negligible sulphur content and were classified as Non Acid Forming (NAF) while all ore samples were classified as Potentially Acid Forming (PAF).

Although the arid climate of the Cairn Hill area reduces the potential for ARD, due to the presence of PAF ore and waste on site it is possible that surface water areas may be impacted by ARD. The consequences of contamination of surface water for acid rock drainage are considered moderate and as a result present a medium risk to the mining operations.

6.5.2 Spills of Fuel, Oil and Chemicals

It is considered possible that impacts to watercourse vegetation and fauna and general surface water quality could occur due to spills and / or leakage of fuels, oils and chemicals. It is considered that the consequence of the event occurring would be moderate in nature (i.e. some limited consequence that may be simply rehabilitated but have no significant long term changes) and results in a medium risk.

6.5.3 Design Control and Operational Management Measures

6.5.3.1 Surface Water Management

Surface water diversion in the area of the waste dumps and mine pits will be designed to provide for current flow regimes.

6.5.3.2 Ore Stockpile Area

Ore and waste rock will be stored on low permeability storage pads and potentially acid forming rock will be encapsulated.

6.5.3.3 Fuel and Oil Storage

Fuel and oil storage will be in accordance with SA EPA guidelines, Australian Standards and Best Practice Guidelines.

6.5.4 Operational Management Measures

6.5.4.1 Surface Water Management

In the event of rain during operations, inspections of surface water flows and possible impacts will be undertaken at the soonest available time after the occurrence.

6.5.4.2 Ore Stockpile Area

Leaching tests will be undertaken periodically to determine the acid forming rock potential of stockpiles.

MARP FINAL 051108.DOC Page 110 Cairn Hill Magnetite-Copper-Gold Mining Project

6.5.4.3 Fuel and Oil Storage

Refuelling will be undertaken in accordance with industry best practice and procedures will be developed. Chemical and oil storage areas will be maintained including regular inspections of the areas will be undertaken to ensure integrity, good housekeeping and correct use of areas.

6.5.5 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

Reconsideration of the risks to surface water during mining activities and taking into account the design and operational management measures has resulted in the residual risk of each identified impact remaining at, or being reduced to low or very low.

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as reasonably practicable and for this reason are considered by TR to be acceptable for the project.

Predicted outcomes have been identified for each of the impacts and reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

A summary of the environmental risk assessment including inherent risks, control and management measures and residual risks are provided in Table 6.7 below, in addition to predicted outcomes and assessment criteria developed as a result of the residual risk assessment.

MARP FINAL 051108.DOC Page 111 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 6.7 Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria – Surface Water

Objectives: To maintain the pre-mining quality and flow of surface watercourses so that environmental values are protected.

ID Aspect and impact IRL Summary of control RRL Predicted outcomes Assessment criteria and management measures CH_013 Adverse effects on L Adhere to Surface VL Mining Lease Inspection of surface flow regimes (and Water Management condition: No long water flows after rain consequently Plan term effects on events watercourse fauna aquatic fauna and Compliance with Surface and flora and flora due to altered Water Management Plan general water flow regimes quality) due to mining operations CH_014 Adverse effect on MED Ore and waste rock L Mining Lease Compliance with the surface water quality will be stored on low condition: No long design requirements for due to Acid Rock permeability storage term effects on ARD management Drainage pads and potentially aquatic fauna and - stockpiles Section acid forming (PAF) flora due to ARD 5.4.1.1 Ore Stockpiles waste rock will be encapsulated. - Waste Dumps Section 5.6.1 Waste Dumps Leaching tests to determine AFR Inspection of surface potential of stockpiles water flows after rain events

MARP FINAL 051108.DOC Page 112 Cairn Hill Magnetite-Copper-Gold Mining Project

ID Aspect and impact IRL Summary of control RRL Predicted outcomes Assessment criteria and management measures CH_015 Adverse effects on MED Refuelling to be L Mining Lease Demonstrate adherence watercourse fauna undertaken in condition: No long industry best practice and and flora and accordance with term effects on guidelines. general water quality industry best practice aquatic fauna and Records of inspections of from spills and / or and any spills flora due to release of fuel, oil and chemical leakages from fuel / attended to fuel and / or containment areas. oil / chemical immediately. chemicals

storage and / or use Fuel / chemical / oil storage in accordance with guidelines, maintained and inspected to ensure integrity, good housekeeping and correct use of the area.

MARP FINAL 051108.DOC Page 113 Cairn Hill Magnetite-Copper-Gold Mining Project

6.6 Dust and Air Quality

6.6.1 Context

While there has been no specific monitoring of dust or other air quality parameters in the Cairn Hill Project area, existing ambient air quality has been inferred from existing land uses and vegetation cover in the area.

Particulate matter (dust), as the result of wind is likely to be the most significant impact on air quality. Oodnadatta, 195 km north east of the project site, experiences on average five dust storms annually (Arid Areas Catchment Water Management Board 2006). This frequency is related to lack of ground cover and major dust storms have been recorded after periods of drought. High wind levels are likely to exacerbate dust generation and lead to an increase in the concentration of airborne dust.

The relevant acts of legislation relating to air quality in the area and provides a framework for ongoing management include:

Mining Act 1971 Natural Resources Management Act 2004 Environment Protection (Air Quality) Policy 1994 Environment Protection Act 1993.

Further details regarding the requirements and relevance of these pieces of legislation to the project are discussed in Section 2.

6.6.2 Potential Impacts

Two possible impacts related to dust and air quality which may arise as a result of activities associated with the mining operations have been identified and are described below.

6.6.2.1 Dust Generation

Dust generated from the mine and associated activities will include:

wind erosion of exposed surfaces including soil stockpiles, waste rock areas and mine pit loading, haulage and unloading of ore and waste rock drilling and blasting of ore loading ore and hauling to the ROM stockpile unloading of ore at the ROM stockpile crushing and screening; and general vehicle movements around site over unsealed roads.

Although dust will be generated as a result of mining operation, it is considered that regional impacts on air quality related to dust generation is unlikely, and due to the remote nature of the site the consequence is considered to be minor and therefore represents a low risk.

6.6.2.2 Combustion Emissions

Potential adverse effects on local or regional air quality due to emissions from combustion engines (associated with the mine operations) is considered unlikely and the consequence negligible. The inherent risk associated with combustion emission impacts has been calculated as very low.

MARP FINAL 051108.DOC Page 114 Cairn Hill Magnetite-Copper-Gold Mining Project

6.6.3 Design Control and Operational Management Measures

6.6.3.1 Design Control Measures

6.6.3.1.1 Infrastructure Placement

In 2000 the South Australian EPA released Draft Guidelines for Separation Distances. The guideline contains recommended separation distances to ensure developments are located in a way which minimises impacts caused by noise, odour or polluting air emissions.

The separation distances advocated by the guideline vary from 100 m to 1,000 m depending on the type of development, with the exception of pulp or paper works, large-scale structural steel producers or anti-frost fan manufacturing which have greater recommended separation distances of 2,000 m to 5,000 m.

The nearest non-company residence to the proposed mine site is 45 km away, a distance which well in excess of any recommended separation distances in the EPA Guideline.

6.6.3.1.2 Infrastructure design

Fuel combustion facilities / equipment will be designed to meet Australian Design standards.

6.6.3.2 Operational Management Measures

6.6.3.2.1 Dust generation

In order to avoid, mitigate and manage the risks associated with dust generated by mining activities a Dust Management Plan will be developed. This plan shall include but not be limited to the following:

establishing and enforcing speed limits on roads used by mine traffic using water or dust suppressants on trafficked areas, exposed surfaces and other disturbed areas minimising the extent of exposed areas susceptible to wind erosion.

6.6.3.2.2 Combustion Emissions

Vehicles and machinery used on site will be fitted with the appropriate emission control equipment and will be maintained in accordance with manufacturers’ recommendations.

6.6.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

The two risks associated with dust and air quality as a result of the construction and operation of the mining operation will remain at low or very low, as the inherent risk is as low as reasonably practicable.

Predicted outcomes and assessment criteria were not considered necessary for this level of

risk.

MARP FINAL 051108.DOC Page 115 Cairn Hill Magnetite-Copper-Gold Mining Project

6.7 Noise and Vibration

No significant, permanent man-made noise or vibration sources are located near the area of the proposed mines site. Wind blowing over vegetation is essentially the only existing (pre- development) noise source. The nearest sensitive off site noise receptor to the mining operation is Ingomar Homestead which is located 45 km south-west of the project area.

Noise and vibration related to native fauna as a result of mining operations is addressed in Section 6.3.

The relevant acts of legislation relating to noise and vibration in the area and provides a framework for ongoing management include:

Environment Protection (Industrial Noise) Policy 1994 Environment Protection Act 1993.

Further details regarding the requirements and relevance of these pieces of legislation to the project are discussed in Section 2.

6.7.1 Potential Impacts

One possible impact related to noise and vibration which may arise as a result of activities associated with the mining operations has been identified and is described below.

6.7.1.1 Plant Noise

Operations associated with the mine will produce noise and vibration from both fixed and mobile equipment such as loaders, crusher, haul trucks, excavators and other equipment.

The nearest sensitive off site receiver (Ingomar Station) is located 45km from the mine. Due to the separation distance, it is considered virtually impossible that disturbance from noise and vibration is experienced at Ingomar. The consequence of the noise is considered negligible and as a result the inherent environmental risk level is considered to be very low.

6.7.2 Design Control and Operational Management Measures

6.7.2.1 Infrastructure Placement

In 2000 the South Australian EPA released Draft Guidelines for Separation Distances. The guideline contains recommended separation distances to ensure developments are located in a way which minimises impacts caused by noise, odour or polluting air emissions.

The separation distances advocated by the Guideline vary from 100 to 1,000 m depending on the type of development, with the exception of pulp or paper works, large-scale structural steel producers or anti-frost fan manufacturing which have greater recommended separation distances of 2,000 to 5,000 m.

The nearest non-company residence to the proposed mine site is 45 km away, a distance which well in excess of any recommended separation distances in the EPA Guideline.

6.7.2.2 Infrastructure Design

Due to the separation distances, no specific noise mitigation measures have been incorporated in the current design of trial mine infrastructure.

MARP FINAL 051108.DOC Page 116 Cairn Hill Magnetite-Copper-Gold Mining Project

6.7.2.3 Operational Management Measures

Although the mine is located a considerable distance from non-company residences, noise control measures will be implemented as part of the company’s ‘good practice’, to ensure that the project presents a safe working environment and to minimise impacts to local fauna.

General operational measures proposed to be implemented include:

Managing noise impacts by complaint. In the event of a complaint, additional management and mitigation measures will be introduced. Servicing all plant, machinery and vehicles regularly.

Specific measures to be implemented to minimise the potential effects of the blasting will include:

Design and execution of each blast on site is to be undertaken by a suitably qualified person. No blasting at night or early morning will be undertaken. These are the times when it is more likely that ground-based or low level atmospheric temperature inversions will be present on site. Strictly managing blasting procedures, including complying with ground vibration and overpressure limits, to ensure the comfort of employees and to protect mine infrastructure. Managing blasting impacts by complaint. In the event of a complaint, additional management and mitigation measures will be introduced.

6.7.3 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

The one risk associated with noise and vibration as a result of the construction and operation of the mining operation, will remain very low, as the inherent risk is as low as reasonably practicable.

Predicted outcomes and assessment criteria were not considered necessary for this level of

risk.

6.8 Radiation and Asbestiform Materials

6.8.1 Context

All naturally occurring soils, rocks and minerals contain small amounts of the radioactive materials (radionuclides) thorium and uranium. Uranium concentrations measured in ore samples as part of investigations at the site were below the trigger level for further investigation of 80 ppm.

To date no asbestiform minerals have been identified during the drilling for the Cairn Hill project. Ore and waste are also low in uranium and classified as non radioactive.

The relevant acts of legislation that governs radiation and asbestiform materials in the State and provides a framework for ongoing management are discussed in detail in Section 2 and include:

Radiation Protection and Control Act 1982 Occupational Health, Safety and Welfare Act 1986.

MARP FINAL 051108.DOC Page 117 Cairn Hill Magnetite-Copper-Gold Mining Project

6.8.2 Potential Impacts

Three impacts related to radiation and asbestiform material have been identified as being:

prolonged radiation exposure for workers exceeding health limits to workers radiation impacts to soil, water, air and biological receivers asbestiform impacts to soil, water, air and biological receivers.

6.8.2.1 Prolonged Radiation Exposure for Workers Exceeding Health Limits to Workers

As all uranium concentrations measured in ore samples as part of investigations at the site were below the trigger level for further investigation, it was determined that prolonged exposure was considered to have a likelihood of virtually impossible with a minor consequence. As a result, the risk is also considered to be very low.

6.8.2.2 Soil, Water, Air and Flora/Fauna Impact from Excavated Material Containing Radioactive Elements

As all uranium concentrations measured in ore samples as part of investigations at the site were below the trigger level for further investigation, there is a likelihood of virtually impossible and a consequence of minor for impacts associated with soil, water, air and biological radiation exposure, resulting in a very low risk.

6.8.2.3 Soil, Water, Air and Flora/Fauna Impact from Excavated Material Containing Asbestiform Materials

As there have been no asbestiform materials identified at the site to date, there is considered to be a likelihood of virtually impossible and a consequence of minor for impacts to workers or fauna from asbestiform minerals, resulting in a very low risk.

6.8.3 Design Control and Operational Management Measures

6.8.3.1 Design Control Measures

No specific design control measures have been developed for radiation and asbestiform risks.

6.8.3.2 Operational Management Measures

During the mining activities, geologists will visually check for uraniferous minerals and fibrous amphibole and asbestos minerals.

In the event that these materials are observed in mining faces or blast hole cuttings TR General Manager shall be notified.

6.8.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

The risks associated with radiation and asbestiform materials as a result of the construction and operation of the mining operation will remain at very low, as the inherent risk is as low as reasonably practicable.

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as

MARP FINAL 051108.DOC Page 118 Cairn Hill Magnetite-Copper-Gold Mining Project

reasonably practicable and for this reason are considered by TR to be acceptable for the project.

Predicted outcomes and assessment criteria were not considered necessary for this level of risk.

6.9 Land Use and Soils

6.9.1 Context

The Cairn Hill Project site is located on a pastoral station grazed by cattle, with pastoralism being the major land use in the area.

The project area is located within the Antakarinja native title claim area, an overlap claim native title claim area (Antakaninja and Arabunna People) and the Woomera Prohibited Area (used by the Australian Department of Defence for weapons testing).

Soils in the area of the ML consist of moderately deep crusty red duplex soils with minor silcrete outcrops and Gilgai soils. Based on previous exploration drilling, the resource is overlain by between 5 to 45m of unconsolidated sandy gravels and clays. This cover material consists of soil, clays (Bulldog Shale) and sandy gravels (Cadna-owie Formation).

The relevant acts of legislation relating to land management and land use in the area that provide a framework for ongoing management include:

Mining Act 1971 Natural Resources Management Act 2004 Environment Protection Act 1993 Development Act 1993.

Further details regarding the requirements and relevance of these pieces of legislation to the project are discussed in Section 2.

6.9.2 Potential Impacts

Four main impacts related to land management and land use have been identified as being associated with the trial mining activities.

6.9.2.1 Soil Contamination

Spills of Fuel, Oil and Chemicals

It is considered possible that impacts to soil could occur due to spills and/or leakage of these materials, the consequence of the event occurring would be minor in nature and results in a medium risk.

6.9.2.2 Leakage of Saline Water from Supply Pipelines

It is considered possible that impacts to soil could occur due to leakage of saline water from water supply pipelines on the ML area. The consequence of the event occurring would be minor in nature and results in a medium risk.

MARP FINAL 051108.DOC Page 119 Cairn Hill Magnetite-Copper-Gold Mining Project

6.9.2.3 Effects on Department of Defence Operations in the Woomera Prohibited Area

It is considered unlikely that the trial mine operations will impact on the operations of the Department of Defence within the Woomera Prohibited Area. In the event that impacts were created, it is considered that these would have a minor consequence and therefore results in an overall low risk.

6.9.2.4 Impacts on Pastoral Lessee

The potential for a decrease in the pastoralist’s income caused by cattle falling in to the mine pits or being hit by mine associated traffic is considered unlikely. In the event that an impact was experienced, it is considered that the consequence would be minor and as result poses a low risk.

6.9.3 Design Control and Operational Management Measures

6.9.3.1 Design Control Measures

The design control measures associated with land management and land use issues include:

Fuel and oil storage will be in accordance with SA EPA guidelines, Australian Standards and Best Practice Guidelines.

Activities to be located within proposed areas as outlined in Defence agreement

6.9.3.2 Operational Management Measures

Proposed operational management measures to manage and mitigate potential impacts to land use and soils include:

Refuelling will be undertaken in accordance with the industry best practice. Fuel and oil storage areas will be maintained, including regular inspections of the areas to ensure integrity and good housekeeping. A Deed of Access has been negotiated with the Department of Defence for operating within the WPA. An agreement has been negotiated with the pastoralist regarding potential impacts from the Cairn Hill Project

6.9.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

Reconsideration of the risks associated with land use and soils during mining activities and taking into account the design and operational management measures has resulted in the residual risk of each identified impact remaining at, or being reduced to low or very low.

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as reasonably practicable and for this reason are considered by TR to be acceptable for the project.

MARP FINAL 051108.DOC Page 120 Cairn Hill Magnetite-Copper-Gold Mining Project

Predicted outcomes have been identified for each of the impacts and reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

A summary of the environmental risk assessment including inherent risks, control and management measures and residual risks are provided in Table 6.11 below, in addition to predicted outcomes and assessment criteria developed as a result of the residual risk assessment.

MARP FINAL 051108.DOC Page 121 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 6.11 Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria – Land Management and Land Use

Objective: To ensure that impacts to land management and land use are kept as low as reasonably practicable.

ID Aspect and impact IRL Summary of RRL Predicted Assessment criteria control and outcomes management measures CH_016 Adverse effects on soil MED Refuelling to L No long term Demonstrate adherence quality due to spills of undertaken in impacts to soil to industry best practice fuel/oil/chemicals accordance industry quality due to spills and guidelines. Records best practice and of fuel, oil or of inspections of fuel, oil any spills attended chemicals during and chemical to immediately. mining operations. containment areas Fuel/ chemicals/oil storage in accordance with guidelines, maintained and inspected to ensure integrity, good housekeeping and correct use of area. All MSDS on site and up to date. CH_017 Adverse effects on soil MED Adhere to Land L No long term Compliance with Land quality due to leakage of Management Plan impacts to soil Management Plan saline water from water quality due to Repair water leaks as supply pipelines leakages from water identified supply pipelines Repair and stabilise landform scours / washouts / erosion

MARP FINAL 051108.DOC Page 122 Cairn Hill Magnetite-Copper-Gold Mining Project

6.10 Visual Amenity

6.10.1 Context

Potential impacts on landscape and visual amenity (including mine rehabilitation and closure issues) are related to how the proposed mining operations will affect the character of the landscape, the sensitivity of the views and the nature of the change.

The surrounding area in which the proposed mine is to be located is remote and arid and characterised by low open vegetation (as previously discussed). The topography of the area has a gently undulating slope.

The establishment of the proposed mining operations will result in modifications to the landscape in both the short-medium and long term. Shorter term impacts relate to construction and operation while long term impacts include mine rehabilitation and mine closure issues.

6.10.2 Potential Impacts

One main impacts related to visual amenity has been identified as being associated with the mining activities and is discussed below.

6.10.2.1 Establishment and Operation of Mine

Visual amenity reductions will be caused by a number of project components:

Ground disturbance and clearing of vegetation Fugitive dust emissions associated with ground disturbance Establishment of project infrastructure and components including the waste rock dump, mine pit and administration facilities Increased number of vehicles, machinery and people in the area.

Due to the remote nature of the site however, it is considered unlikely that the establishment and operation of the project will result in any major short or medium term reductions in visual amenity within the local and regional area. In the event that impacts did occur, it is considered that they would be minor in nature and therefore result in a low risk.

6.10.3 Design Control and Operational Management Measures

6.10.3.1 Design Control Measures

During the design phase for the mining project, consideration has been given to the visual impact associated with various project components, particularly the overburden landform and waste rock area.

6.10.3.2 Operational Management Measures

Procedures and facilities for good house keeping and waste management will also be implemented and provided during operations to avoid creation of litter and inappropriate storage of other wastes e.g. scrap metal, timber etc

MARP FINAL 051108.DOC Page 123 Cairn Hill Magnetite-Copper-Gold Mining Project

6.10.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

The risk associated with visual amenity as a result of the construction and operation of the mining operation, will remain at low, as the inherent risk is as low as reasonable practicable.

A predicted outcome and assessment criteria were not considered necessary for this level of

risk.

6.11 Indigenous and Non-Indigenous Heritage

6.11.1 Context

6.11.1.1 Indigenous Heritage

The project area is subject to native title claims by the Antakarinja people. A Work Area Clearance has been obtained to permit activities associated with the project and Native Title negotiations have been finalised.

6.11.1.2 Non-Indigenous Heritage

No places or items of European heritage significance have been identified within the project area.

The relevant acts of legislation relating to cultural and European heritage issue in the area and provides a framework for ongoing management include

Aboriginal Heritage Act 1988 Native Title (South Australia) Act 1994 Heritage Places Act 1993.

Further details regarding the requirements and relevance of these pieces of legislation to the project are discussed in Section 2.

6.11.2 Potential Impacts

Two main impacts related to indigenous and non-indigenous heritage have been identified as being associated with the mining activities and are discussed below.

6.11.2.1 Disturbance to Aboriginal Sites of Scientific, Mythological and Cultural Significance

The likelihood of disturbing Aboriginal sites of scientific, mythological and cultural significance during construction and operation works is considered possible and the consequence is considered to be severe. Thus the inherent environmental risk is considered to be medium.

6.11.2.2 Disturbance to European Heritage Sites

No non-Indigenous (European) heritage sites have been identified within or around the proposed project area.

MARP FINAL 051108.DOC Page 124 Cairn Hill Magnetite-Copper-Gold Mining Project

The likelihood of disturbing non-Indigenous heritage sites is therefore considered to be unlikely, the consequence of this being negligible. The inherent environmental risk associated with this aspect of the project is considered to be very low.

6.11.3 Design Control and Operational Management Measures

6.11.3.1 Design Control Measures

No design control measures identified

6.11.3.2 Operational Management Measures

In order to manage the potential heritage impacts of the project TR proposes to undertake the following activities:

In the event that Aboriginal sites are discovered during site development, cease work, and contact the Antakarinja to determine the required assessment of the site and appropriate management measures, in addition to statutory reporting under the Aboriginal Heritage Act 1988 (SA).

In the event that non-Aboriginal historic and cultural heritage sites are uncovered during site development, e.g., cease work within 50 m of the area until a cultural heritage consultant has been contacted to undertake an assessment of the site and determine appropriate management measures.

Long term contractors will be informed regarding indigenous and non-indigenous cultural history aspects of the operations and obligations if a site is uncovered.

6.11.4 Residual Risk Acceptance, Predicted Outcomes and Assessment Criteria

Reconsideration of the risks associated with indigenous and non-indigenous issues during mine activities and taking into account the design and operational management measures has resulted in the residual risk of each identified impact remaining at, or being reduced to medium or very low.

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as reasonably practicable and for this reason are considered by TR to be acceptable for the project.

Predicted outcomes have been identified for each of the impacts and reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

A summary of the environmental risk assessment including inherent risks, control and management measures and residual risks are provided in Table 6.13 below, in addition to predicted outcomes and assessment criteria developed as a result of the residual risk assessment.

MARP FINAL 051108.DOC Page 125 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 6.13 Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria – Indigenous and Non- Indigenous

Objective: To ensure that changes to the biophysical environment do not adversely affect historical and cultural associations.

ID Aspect and impact IRL Summary of RRL Predicted Assessment criteria control and outcomes management measures CH_018 Disturbance to MED Cease work and MED Aboriginal sites of Demonstration of Aboriginal sites of consult with scientific, consultation with the native scientific, mythological Antakarinja and mythological and title claimants and statutory and cultural Arabunna Native cultural significance reporting in the event that a significance Title Claimants in are protected or suspected Aboriginal site / event of discovery of lawfully removed relic is discovered Aboriginal with consent of Sites/relics. Native Title Statutory reporting Claimants, and of discoveries in reported in accordance with the accordance with Aboriginal Heritage statutory Act 1988 (SA). requirements (under the Aboriginal Long term Heritage Act). contractors will be informed regarding indigenous and non- indigenous cultural history aspects of the operations and obligations if a site is uncovered

MARP FINAL 051108.DOC Page 126 Cairn Hill Magnetite-Copper-Gold Mining Project

6.12 Risk Level Summary and Discussion

6.12.1 Summary

A summary of the project related environmental issues and associated inherent and residual risk levels are provided in Table 6.14 below.

Table 6.14 Risk Level Summary

IRL RRL Issue H MED L VL H MED L VL Flora and Native Vegetation 1 4 5 Fauna 4 2 4 2 Groundwater 1 3 4 Surface water 2 1 2 1 Dust and air quality 1 1 1 1 Noise and Vibration 1 1 Radiation and Asbestiform 3 3 Materials Land Management and 2 2 2 2 Landuse Visual Amenity and 1 1 Rehabilitation Indigenous and non- 1 1 1 1 Indigenous heritage

6.12.2 Discussion

The risk assessment resulted in a total of 30 environmental aspects and impacts being identified across 10 categories for the mining operation. A full environmental risk register is contained in Appendix I.

Of the 30, 5 risks were considered to have an IRL of medium, 16 were low and 10 were considered to be very low.

Due to the limited size and potential impact of the mining operation, and by formulating control and management measures, the inherent risk levels were reconsidered and resulted in 1 residual medium risk, 18 residual low risks and 12 very low.

Although all of the residual risks associated with the operations were considered to be low or very low, with the exception of one medium. Environmental Management Plans (EMPs) have been developed for those aspects where more rigorous monitoring or management measures are required. These EMPs will be implemented by TR and included in the scope and induction for the mine contractor who carries out the trial mining operation. Management and control measures relating to those aspects which are not covered by an EMP will also be included in the scope and induction for the mine contractor.

EMPs for the mining operation are contained in Section 7 below and a summary of environmental management commitments is contained in Section 7.1 to 7.7.

MARP FINAL 051108.DOC Page 127 Cairn Hill Magnetite-Copper-Gold Mining Project

7. Environmental Management and Reporting

In order to address the environmental and social impacts of the project and implement the various Operational Management Measures (as outlined in Section 6) TR proposes to implement a number of management procedures and plans during the trial mine operations.

The following procedures and plans will be implemented during the mine operations:

Organisation capability procedures Native Vegetation Management Plan Weed and Pest Management Plan Dust Management Plan Groundwater Management Plan Fauna Management Plan Mine Rehabilitation and Closure Plan (see Section 8).

Further details of each of these are provided below.

7.1 Mine Native Vegetation Management Plan (NVMP)

7.1.1 Introduction

This plan contains information towards the requirements of the Guidelines for a Native Vegetation Significant Environmental Benefit Policy for the clearance of native vegetation associated with the minerals and petroleum industry (PIRSA 2005), which supersede the general PIRSA Guideline M30 (Interim Guidelines on Requirements for Mineral Exploration and Mining under the Native Vegetation Act 1991 and Regulations 2003).

The plan addresses the native vegetation management requirements during the mining operations.

7.1.2 Objectives and Principles

The native vegetation objective for the project is:

To maintain the regional abundance, diversity and productivity of vegetation.

The following general principles will be adopted for native vegetation management during mining operations:

Retaining areas of native vegetation on site that are not required for trial operations. Identifying areas for vegetation clearance for mining operations and ensuring clearance is only undertaken in those designated areas. Minimising the time of exposure of cleared land i.e. undertaking clearing immediately prior to development.

7.1.3 General Site Vegetation

The Cairn Hill project site is located within the arid lands of South Australia within the Stony Plains Bioregion. The Stony Plains Bioregion is characterised by gibber and gypsum plains, sand plains and ephemeral watercourses. A detailed site ecological survey is provided in Appendix D.

MARP FINAL 051108.DOC Page 128 Cairn Hill Magnetite-Copper-Gold Mining Project

Some species of conservation significance were identified on the ML area during site surveys including Eragrostis australasica (Swamp Cane-grass) and Sclerolaena blackiana (Black's Bindyi), however not necessarily in the area of the mining operations.

The Commonwealth EPBC ‘Protected Matters Search Tool’ indicated that Maireana melanocarpa (Black-fruit Bluebush) may occur in the Cairn Hill project area. The species has a national rating of Vulnerable (EPBC Act 1999) and a state rating of Rare (National Parks and Wildlife Act 1972). As outlined in Section 4, this species was not detected during the field survey.

7.1.4 Significant Fauna Habitat

The Stony Plains and Tablelands habitats within the Stony Plains Bioregion are particularly known to support the Plains Rat (Pseudomys australis) and the Thick-Billed Grasswren (Amytornis textilis modestus). The range of both of these species has declined since European occupation and is now mainly restricted to the Stony Plains Bioregion (DEH 2005). The Thick-Billed Grasswren was identified within a drainage line along the pastoral access track south of the ML area during the targeted fauna survey at the site.

The Dunefields and Sand Plains habitats that also occur within the Stony Plains Bioregion support a small number of mammal species and a diverse range of reptiles that depend upon this habitat for survival. Many generalist bird species also use this habitat, although it is currently thought that none use this habitat exclusively (DEH 2005). The EPBC Protected Matters Search Tool has indicated that, in addition to the Plains Rat and the Thich-Billed Grasswren, the Bronzeback Snake-Lizard (Ophidiocephalus taeniatus), the Plains Wanderer (Pedionomus torquatus) and the Slender-billed Thornbill (Acanthiza iredalei), could be present in the project area.

The project area is currently grazed by cattle, particularly around watering holes, resulting in the vegetation in these areas being less diverse and degraded. Due to this grazing by cattle there were limited resources (shelter and food) for native animals; consequently, it is likely population numbers of faunal species in these areas had been affected by the grazing.

7.1.5 Vegetation Clearance

The approximate footprint areas for the ML for the mining operations are 118.35ha. The various mine components are as follows:

Waste dumps 48ha Pit 1 14.5ha (inclusive of Starter Pit) Pit 2 12ha Laydown Area 9ha ROM Pad 9ha Explosives storage 4ha Portion of haulroad 7.5ha Mine site roads 14.35ha

SEB calculations and potential off set area are detailed below. Vegetation clearance of 10.55Ha has already been accounted for via SEB as part of the trial mining operation.

7.1.5.1 Significant Environmental Benefit (SEB)

As detailed in the EWMARP, payment of $8,476.71 was made to the Native Vegetation Fund as SEB for the trial mining operation, based on 10.55Ha of native vegetation clearance. The

MARP FINAL 051108.DOC Page 129 Cairn Hill Magnetite-Copper-Gold Mining Project

remaining area to be accounted for on the ML is therefore 107.8ha (118.35 – 10.55 = 107.8 ha)

A preliminary breakdown of the calculation for the Significant Environmental Benefit (SEB) for the trial mining operation is provided in Table 7.1 below, following the Guidelines for a Native Vegetation Significant Environmental Benefit Policy for the clearance of native vegetation associated with the minerals and petroleum industry (PIRSA 2005).

Taking into account the condition of the proposed mine site and the proposed rehabilitation program, the SEB offset area would be 107.8ha or the payment to the Native Vegetation Fund would be $86,863.79 as summarised in Table 7.1 below. The rationale behind these calculations is detailed below.

Table 7.1 SEB Calculations for the Mine Area

Area of SEB Offset Management Land value- Total SEB Disturbance Area cost based cost Payment to NV Project Area (ha) (ha) ($800/ha) ($) Fund ($) ($) Open Pits, Waste Rock 71.45 571.6 57,160 497.29 57,657.29 Dump, Site Haulroad (8:1 ratio) Laydown Yard, ROM Pad, 36.35 145.4 29,080 126.50 29,206.50 Explosive Storage, Mine (4:1 ratio) Site Roads TOTAL 107.80 717.0 86,240 623.79 86,863.79

According to the Valuer General, the ‘value’ of the land is $0.87/ha. This has been determined based on the total value provided for the proportion of the Crown Lease within the Hundred of Coober Pedy ($2,000 for the CL area of 2,287 km2).

The SEB offset area has been calculated from ratios determined on the basis of the process outlined in Guidelines for a Native Vegetation Significant Environmental Benefit Policy for the clearance of native vegetation associated with the minerals and petroleum industry (PIRSA 2005). The initial SEB assessment based on Table 1 of (PIRSA, 2005) indicated an initial SEB ratio of 8:1 (area) for the mine area, being an area of Native Vegetation with little disturbance (vegetation structure not altered, most seed sources available to regenerate, some signs of disturbance (e.g. tracks, grazing) and no or minor weed infestation). This ratio has been kept for areas of longer term disturbance (open pit(s), waste rock dump(s) and site haulroad) has been reduced by 50% to 4:1 due to the fact that an on-site rehabilitation program for part of the total area disturbed will be undertaken (laydown yard, ROM pad, explosive storage, mine site roads)(see Section 8).

PIRSA (2005) states that in general the cost of re-vegetation ranges from $500 to $3,500 per hectare. As costs to revegetate will vary significantly depending upon the terrain, location, the amount of re-vegetation required, ongoing management costs, the amount of preparation work required, rainfall, soil types etc., it is difficult to determine a single management cost. Subsequently a flat rate for the management cost is proposed at a rate of $800/ha.

Based on these calculations the SEB options for the mining project are:

SEB Offset area with restoration: 36.35ha @ 4:1 = 145.4ha and 71.45ha @ 8:1 = 571.6ha. Total 717ha .

Payment to Native Vegetation fund:

MARP FINAL 051108.DOC Page 130 Cairn Hill Magnetite-Copper-Gold Mining Project

Land value cost (36.35ha x 4:1 x $0.87/ha = $126.50) plus (71.45ha x 4:1 x $0.87/ha = $497.290). Total $623.79

Management costs ($800/ha x 107.8ha = $86,240)

Total Cost = Land value cost ($623.79) plus Management costs ($86,240) = $86,863.79

Figure 7.1 Vegetation Clearance Areas

7.1.6 Management and Mitigation

7.1.6.1 Mine Establishment

During the establishment of the operations the following activities will be undertaken to manage and mitigate native vegetation impacts:

Inspection and identification of areas for vegetation clearance prior to clearance occurring. Establishment of control sites in selected locations surrounding the mining area to be used for assessment of vegetation condition.

7.1.6.2 Mine Operations:

During the mining operations the following activities will be undertaken to manage and mitigate native vegetation impacts, and to assist in rehabilitation:

Ensure approved clearance boundaries are maintained. Clearing to be undertaken immediately prior to development to minimise the time of exposure of cleared land.

MARP FINAL 051108.DOC Page 131 Cairn Hill Magnetite-Copper-Gold Mining Project

Ongoing monitoring at selected locations to assess changes / impacts to vegetation adjacent to the mining activities and to ensure that any impacts are within the specified clearance area

7.2 Native Fauna Management Plan

7.2.1 Introduction

The project site is located within the arid lands of South Australia within the Stony Plains Bioregion. The Stony Plains and Tablelands habitats within the Stony Plains Bioregion are particularly known to support the Plains Rat (Pseudomys australis) and the Thick-Billed Grasswren (Amytornis textilis modestus). The range of both of these species has declined since European occupation and is now mainly restricted to the Stony Plains Bioregion (DEH 2005). The Thick-Billed Grasswren was identified within a drainage line along the pastoral access track south of the ML area during the targeted fauna survey at the site.

The Dunefields and Sand Plains habitats that also occur within the Stony Plains Bioregion support a small number of mammal species and a diverse range of reptiles that depend upon this habitat for survival. Many generalist bird species also use this habitat, although it is currently thought that none use this habitat exclusively (DEH 2005). The EPBC Protected Matters Search Tool has indicated that, in addition to the Plains Rat and the Thick-Billed Grasswren, the Bronzeback Snake-Lizard (Ophidiocephalus taeniatus), the Plains Wanderer (Pedionomus torquatus) and the Slender-billed Thornbill (Acanthiza iredalei), could be present in the project area.

Information regarding native fauna is included in the detailed site ecological surveys as listed in Appendix D.

7.2.2 Objective

The fauna objective for the project is:

To maintain the regional abundance, diversity and productivity of fauna.

7.2.3 Fauna Management

Proposed management and mitigation measures to be implemented by TR during construction and operation to assist in minimising the impacts to fauna include:

Disturbance of vegetation to be in accordance with specified areas. No driving off mine management roads unless authorisation received from TR. Mine excavation / work areas to be inspected regularly to identify existence of potentially trapped fauna. Maintenance of site fencing to avoid, minimise and manage impacts associated with grazing animals. Adherence to waste management procedures to reduce potential food sources for introduced pests and vermin. Ongoing fauna monitoring to determine changes in abundance of fauna species (if required).

MARP FINAL 051108.DOC Page 132 Cairn Hill Magnetite-Copper-Gold Mining Project

7.3 Weed and Pest Management Plan

7.3.1 Introduction

Environmental weeds can impact by the local environment by: competing with natives for resources, preventing recruitment/establishment of natives, altering geomorphological processes, altering the hydrogeographical cycles (e.g. water table level), altering nutrient content of soil, altering the natural fire regime and altering the abundance of native fauna.

No weed species were identified in the project area during the vegetation survey and although weed species are less common in the area, there still remains a potential that weeds will occur on site following disturbance associated with mining activities.

The area of the site has been over-grazed by cattle in addition to rabbits and possibly kangaroos, particularly close to the watering point (solar bore). Other introduced species observed during fauna surveys were foxes and house mice.

7.3.2 Objectives

The objective for the project that relates to weed and pest management is:

To prevent new infestations of weeds and populations of pest species on site so that native flora and fauna are protected.

7.3.3 Weed Management

Although there are no weeds currently identified on site, standard weed hygiene practices will be undertaken during the mining operations to ensure that weeds are not brought onto site. The following weed management activities will be undertaken during mining activities:

Inspection of mine area for the presence of weeds. All interstate or higher risk vehicles or equipment shall be checked and cleaned prior to commencing work. All vehicles will be required to remain on formed roads and tracks within the mining project area. Regular inspections of area surrounding mining operations to identify any new weeds

7.3.4 Pest Management

There is a potential that exotic fauna species that would not normally inhabit the area could be attracted to the site due to changes in habitat as well as activities associated with operations on site e.g. storage of waste on site. The following pest management activities will be undertaken during mining activities:

Establish and follow strict waste management procedures (waste to be stored in lidded drum and removed weekly from the site) to minimise food sources. Monitor and implement pest trapping and management as may be required

MARP FINAL 051108.DOC Page 133 Cairn Hill Magnetite-Copper-Gold Mining Project

7.4 Dust Management Plan

7.4.1 Introduction

Dust generated from the mine and associated activities will include:

wind erosion of exposed surfaces including waste rock areas and mine pit loading, haulage and unloading of waste rock drilling and blasting of ore and waste loading ore and hauling to the ROM stockpile unloading of ore at the ROM stockpile crushing and screening; and general vehicle movements around site over unsealed roads.

7.4.2 Objectives

The dust and general air quality objective for the project is:

To ensure that particulate or gaseous emissions do not adversely affect environment values or the health and amenity of people.

7.4.3 Dust Management

Proposed management and mitigation measures to be implemented by TR during construction and operation to assist in minimising the impacts associated with dust generation include:

Mine traffic to remain on formed roads and tracks within the mining areas Clearing to be undertaken immediately prior to development to minimise the time of exposure of cleared land. Stabilisation of disturbed areas using water

7.5 Groundwater Management Plan

7.5.1 Introduction

The study area is located in the northwest pastoral region of central South Australia, 50 km south of Coober Pedy. The scale of the Cairn Hill project is such that the mine water supply will be sourced from a paleochannel aquifer in the ML area.

Groundwater in the regional area is a vital resource to pastoralists, the Coober Pedy township and the mining industry including the Cairn Hill project. Groundwater management and monitoring are important aspects of the management of the project.

An application for a water allocation and license has been lodged with DWLBC to extract 800m3/day of groundwater from the two proposed supply bores (CHPB01 and CHPB02), located in the saturated sands of the ‘paleochannel’, one of which is situated outside of the ML area (CHPB01).

7.5.2 Objectives, Predicted Outcomes and Assessment Criteria

The groundwater objective for the mining project is:

MARP FINAL 051108.DOC Page 134 Cairn Hill Magnetite-Copper-Gold Mining Project

To ensure that extraction and use of groundwater does not adversely affect environmental values, existing users or the health and amenity of people.

7.5.3 Groundwater Management

Proposed management and mitigation measures to be implemented by TR during construction and operation to assist in minimising the impacts associated with groundwater include:

extraction and use of groundwater in accordance with allocation and conditions monitoring of extraction volume during operations quality and depth monitoring to be undertaken at Solar bore and other monitoring bores as summarised below; and provision of an alternative water supply for the pastoralist in the instance that the supply at Solar Bore is compromised by extraction of water from the supply bores (see below)

7.5.4 Groundwater Monitoring

Table 7.2 summarises the proposed groundwater monitoring program (including depth and quality) for the Cairn Hill Project.

Table 7.2 Proposed Groundwater Monitoring Program at Cairn Hill

Bores Water Level Salinity (converted Water Quality from EC) and pH

Active production wells Weekly Monthly Annually

Inactive production wells and Monthly Quarterly Annually monitoring wells

Solar Bore Monthly Quarterly Annually

Mt Penrhyn No.2 (new) Quarterly Quarterly Annually

ENG9, Stuart Hwy bores 67, 68, 69 and 69 (if located)

Note: Water quality parameters are: pH, EC, TDS, major ions (Ca, Mg, Na, K, Cl, HCO3/CO3), trace elements (Al, As, Cu, Fe, Mn, Ni, Se, U, Zn)

7.5.5 Replacement Groundwater Supply for Pastoralist

The pastoralist’s bore, Solar Bore, provides around 23,000 to 27,500 l/day of low salinity water for cattle on Ingomar station. It is unlikely that extraction from supply bores CHPB01 and CHPB02 will affect the groundwater level at Solar Bore, however if impacts did occur alternative sources of stock quality groundwater would need to be provided.

In the case that the water supply at Solar Bore became compromised due to extraction from CHPB01 and CHPB02 and immediate contingency was required, possible management measures to maintain the pastoral water supply may include:

Supplying water from the RO plant on the mine site or trucking potable water to site (could be undertaken immediately).

MARP FINAL 051108.DOC Page 135 Cairn Hill Magnetite-Copper-Gold Mining Project

Injecting potable water into Solar Bore to create a buffer of fresh water and to maintain water levels. Drill and complete another supply bore for the pastoralist. Groundwater from CHPB01 and CHPB02 is too saline to supply stock however field measurements of groundwater quality indicate that stock quality water (5.3 mS/cm or 3395 mg/L TDS) is available around 1.8km west of the Solar Bore at monitoring well PBBH07. It is in the same (sand) aquifer as solar Bore and could be redrilled and completed as a supply bore if required. Potential stock quality groundwater (4.81 mS/cm or 3080 mg/L) has also been sampled about 2.7km southeast of the Solar Bore at monitoring bore PBBH04, although yields were very low. The PBBH04 location is in the fractured bedrock aquifer, not the sand aquifer as is the case for Solar Bore and PBBH07.

7.6 Surface Water Management Plan

7.6.1 Introduction

The Cairn Hill ML is located in the catchment of Engenina Creek, which drains to Lake Cadibarrawirracana approximately 60km to the north east. The catchment boundary in the west is along the ridgeline of the Stuart Range, which is also used as the Stuart Highway route to minimise flooding of the highway. It is an arid area where surface flows are infrequent and naturally highly turbid.

Parts of Engenina Creek are incised with some creekside vegetation, whereas other parts are ill defined. In the location of the proposed mining operations, the creek environs is a shallow undulating depression.

7.6.2 Objective, Predicted Outcomes and Assessment Criteria

The surface water objective for the project is:

To maintain the pre-mining quality and flow pattern of surface watercourses so that environmental values are protected.

Table 7.3 Predicted Outcomes and Assessment Criteria for Surface Water

ID Predicted Outcomes Assessment Criteria

CH_019 Mining Lease condition: No long term Construction of surface water effects on aquatic fauna and flora due diversion as designed to altered flow regimes

CH_020 Mining Lease condition: No long term Demonstrate that there is no effects on aquatic fauna and flora due adverse impact on aquatic fauna to ARD and flora due to ARD. Demonstrate adherence to design requirements for ARD management

CH_021 Mining Lease condition: No long term Demonstration of adherence to effects on aquatic fauna and flora due industry best practices and guidelines to release of fuel and / or chemicals Adherence to EPA Guidelines 080/07

MARP FINAL 051108.DOC Page 136 Cairn Hill Magnetite-Copper-Gold Mining Project

Bunding and spill management

Adherence to AS1940 – 1993 The storage and handling of flammable and combustible liquids

Records of inspections fuel, oil and chemical containment areas

7.6.3 Surface Water Management

Proposed management and mitigation measures to be implemented during construction and operation of the mining operation, to assist in minimising impacts associated with surface water include:

Hydrological design of surface water diversion to provide for current flow regimes. Surface hydrogeological design elements, site surface water diversions and drainage lines will be regularly inspected and maintained to ensure design capacity and integrity is maintained. Inspections of surface water flows and possible impacts during rain events.

7.7 Land Management Plan

7.7.1 Introduction

The Cairn Hill Project site is located on a pastoral station grazed by cattle, with pastoralists being the major land user in the area.

The project is located within Antakarinja native claim area, an overlap claim native title claim (Antakaninja and Arabunna People) and the Woomera Prohibited Area (used by the Australian Department of Defence for weapons testing)

Soils in the area of the ML consist of moderately deep crusty red duplex soils with minor silcrete outcrops and Gilgai soils. Based on previous exploration drilling, the resource is overlain by between 5m to 45m of unconsolidated sandy gravels and clays. This cover material consists of soil, clays (Bulldog Shale) and sandy gravels (Cadna-owie Formation).

7.7.2 Objective Predicted Outcomes and Assessment Criteria

The land use and soils objective for the mining project is:

To ensure that impacts to land use and soils are kept as low as reasonably practicable

Table 7.4 Predicted Outcomes and Assessment Criteria for Land Use and Soils

ID Predicted Outcomes Assessment Criteria

CH_022 Mining Lease condition: No long term Demonstrate adherence to effects on soil quality due to spills of industry best practice and fuel, oil or chemicals during mining guidelines. Records of inspections operations of fuel, oil and chemical

MARP FINAL 051108.DOC Page 137 Cairn Hill Magnetite-Copper-Gold Mining Project

containment areas.

Adherence to EPA Guidelines 080/07 Bunding and spill management

Adherence to AS1940 – 1993 The storage and handling of flammable and combustible liquids

CH_023 Mining Lease condition: No long term Record of condition of water impacts to soil quality due to leakages supply pipelines from water supply pipelines

7.7.3 Land Management

Proposed management and mitigation measures to be implemented by TR during construction and operation of the mining operation, to assist in minimising the impacts associated with land and soils include:

Refuelling to be undertaken in accordance with industry best practice and any spills attended to immediately. Fuel / chemical / oils storage in accordance with guidelines, maintained and inspected to ensure integrity, good housekeeping and correct use of area. Regular inspections of water supply pipelines. Activities restricted to access outlined in Defence agreement. Adherence to Deed of Access finalised with Department of Defence Provision to restrict cattle from entering high activity areas Mine excavation / work area to be checked to determine impacts to livestock.

7.8 Hazardous Materials Management Plan

7.8.1 Introduction

A number of materials (fuel, chemicals, potentially explosives) will be utilised on site during the duration of the project. Some of these materials may be deemed to be hazardous and as such a management plant is required to be instigated to minimise the risk to both personnel and equipment.

7.8.2 Objective Predicted Outcomes and Assessment Criteria

The objective for the project that relates to hazardous material management is:

• To prevent the occurrence of any incidents associated with hazardous materials which may put either personnel or equipment at risk.

7.8.3 Hazardous Material Management

TR will develop a hazardous material management procedure which will include the following:

MARP FINAL 051108.DOC Page 138 Cairn Hill Magnetite-Copper-Gold Mining Project

Lists of dangerous goods and their quantities and locations. Required Handling and storage practices. Safety and hazard management. Audit procedures. Contingency cleanup and disposal procedures.

Transportation, storage and handling of dangerous goods, particularly explosives if the decision is made to store explosives on site, to be in accordance with the requirements of the SA Mine Management Regulations, the Australian Code for the Transport of Dangerous Goods by Road and Rail and in particular Australian Standards AS2243.10 and AS2508.

The classification, packaging, labelling and safe transport of dangerous goods is the responsibility of manufacturers, suppliers and transport contractors.

No dangerous goods will be allowed on site without the requisite Material Safety Data Sheet (MSDS) has been received in advance.

The dangerous goods procedure will ensure that the dangerous goods that are stored on site will be held in approved storage vessels and surrounded by bunds constructed to the appropriate regulations. It will also ensure that personnel exposed to any dangerous chemical to be trained in the dangers associated with the chemical, its safe use and procedures to follow in case of an emergency.

Fuel and oil storage logs containing the following information shall be maintained:

Types and volumes of fuel and oils on site; Locations of storage facilities, storage methods, bunding and secondary containment; Pumping, piping transfer and separation procedures; Fire protection measures Spill containment and cleanup procedures Maintenance, testing and audit procedures Waste oil collection, treatment and disposal procedures

All fire extinguishers and fixed fire equipment shall have six (6) monthly checks and maintenance.

A dangerous goods and chemicals register shall be established for the site.

7.9 Summary of Environmental Management Commitments

The environmental management commitments which have been proposed (and detailed in tables 7.1 to 7.4 and EMPs) in order to achieve the proposed environmental objectives and predicted outcomes for the Cairn Hill Project are summarised below in Table xx

Table 7.5 Environmental Management Commitments

No, Commitment

NATIVE VEGETATION MANAGEMENT PLAN

1 Inspection and identification of areas for vegetation clearance prior to clearance occurring

MARP FINAL 051108.DOC Page 139 Cairn Hill Magnetite-Copper-Gold Mining Project

2 Establishment of control sites in selected locations surrounding the mining area to be used for assessment of vegetation condition

3 Ensure approved clearance boundaries are maintained

4 Clearing to be undertaken immediately prior to development to minimise the time of exposure of cleared land

5 Ongoing monitoring at selected locations to assess changes / impacts to vegetation to the mining activities and to ensure that any impacts are within the specified clearance area

6 Maintenance of records of inspections and management measures to include in the Annual Compliance Report

FAUNA MANAGEMENT PLAN

7 Ensure approved clearance boundaries are maintained

8 Adherence to strict site rules to minimise off road driving and access to non designated work areas

9 Mine excavation / work areas to be inspected regularly to identify existence of potentially trapped fauna

10 Ongoing fauna monitoring to determine changes to abundance of fauna species

11 Maintenance of records regarding inspections and management measures to include in the Annual Compliance Report

WEED AND PEST MANAGEMENT PLAN

12 Inspection of mine area for the presence of weeds

13 All interstate or higher risk vehicles or equipment shall be checked and cleaned prior to commencing work

14 All vehicles will be required to remain on formed roads and tracks within the mining project area

15 Regular inspections of area surrounding mining operations to identify and remove any new weeds

16 Establish and follow strict waste management procedures (waste to be stored in lidded drums and removed weekly) to minimise food sources

17 Monitor and implement pest trapping and management as may be required

18 Maintenance of records regarding inspections and management measures to include in the Annual Compliance Report

DUST MANAGEMENT PLAN

MARP FINAL 051108.DOC Page 140 Cairn Hill Magnetite-Copper-Gold Mining Project

19 Mine traffic to remain on formed roads and tracks within the mining area

20 Stabilisation of road surfaces using water

21 Delineation of areas requiring dust suppression

22 Clearing to be undertaken immediately prior to development to minimise the time of exposure of cleared land.

Maintenance of records regarding inspections and management measures to be included in the Annual Compliance Report

GROUNDWATER MANAGEMENT PLAN

23 Extraction and use of groundwater in accordance with allocation and conditions

24 Monitoring of extraction volume during operations

25 Quality and depth monitoring to be undertaken at Solar Bore and other monitoring bores

Provision of an alternative water supply for the pastoralist in the instance that the supply at Solar Bore is compromised by extraction of water from the supply bores

Maintenance of records regarding inspections and management measures to be included in the Annual Compliance Report

SURFACE WATER MANAGEMENT PLAN

27 Hydrological design of surface water diversion to provide for current flow regimes

28 Surface hydrogeological design elements, site surface water diversions and drainage lines will be regularly inspected and maintained to ensure design capacity and integrity is maintained

29 Inspections of surface water flows and possible impacts during rain events

30 Maintenance of records regarding inspections and management measures to be included in the Annual Compliance Report

LAND MANAGEMENT PLAN

31 Refuelling to be undertaken in accordance with industry best practice and any spills attended to immediately

32 Fuel / chemical / oil storage in accordance with guidelines, maintained and inspected to ensure integrity, good housekeeping and correct use of area

32 Regular inspection of water supply pipelines

33 Activities restricted to areas outlined in Defence agreement

34 Adherence to Deed to Access finalised with Department of Defence

MARP FINAL 051108.DOC Page 141 Cairn Hill Magnetite-Copper-Gold Mining Project

35 Provision to restrict cattle from entering high activity areas

36 Mine excavation / work areas to be checked to determine impacts on livestock

37 Maintenance of records regarding inspections and management measures to be included in the Annual Compliance Report

HAZARDOUS MATERIALS MANAGEMENT PLAN

38 Refuelling to be undertaken in accordance with industry best practice and any spills attended to immediately

39 Fuel / chemical / oil storage in accordance with guidelines, maintained and inspected to ensure integrity, good housekeeping and correct use of area. Storage in accordance with guidelines and maintained and to ensure integrity and good housekeeping

AIR QUALITY

40 Fuel combustion in accordance with Australian Standards

41 Maintain air quality filters and other devices on mine infrastructure and vehicles. Service equipment regularly

RADIATION AND ABESTIFORM MATERIALS

42 Ore and waste are low in uranium and classified as non-radioactive. Geologists will visually check for uraniferous minerals and conduct periodic tests

43 During mining activities, geologists will visually check for uraniferous minerals and fibrous amphibole and asbestos minerals

INDIGENOUS AND NON-INDIGEHOUS HERITAGE

44 Cease work and consult with Antakarinja and Arabunna Native Title Claimants in the event of discovery of Aboriginal sites / relics

45 Statutory reporting of discoveries in accordance with the Aboriginal Heritage Act 1988 (SA)

46 Long term contractors informed regarding Indigenous and Non-Indigenous cultural history aspects of the operations and obligations if a site is uncovered

47 Cease work and consult heritage consultant in the event that non-Aboriginal historic and cultural heritage sites are uncovered

48 Long term contractors informed regarding Indigenous and Non-Indigenous cultural history aspects of the operations and obligations if a site is uncovered.

MARP FINAL 051108.DOC Page 142 Cairn Hill Magnetite-Copper-Gold Mining Project

7.9 Environmental Management Reporting

7.9.1 Mining and Rehabilitation Compliance Report

One of the lease conditions for the Cairn Hill Project is to provide PIRSA an annual Mining and Rehabilitation Compliance Report (MARCR) on operations carried out on the lease and compliance with the approved MARP with two (2) months of the anniversary of the lease grant.

7.9.2 SEB

Reporting requirements for SEB commitments require the preparation of an annual report that includes details concerning:

th th Areas cleared over the previous twelve (12) months (30 June – 30 June) against work areas; Any reconciliation of actual clearance areas against estimates from previous years; Estimates of proposed clearance for the next twelve (12) months; Area of land subject to rehabilitation works for the next twelve (12) months; Indications of the success of any prior rehabilitation works; Outcomes of ant monitoring undertaken on the impacts of dust on adjacent native vegetation; Any breaches of the legislation, including remediation works that may have been undertaken and Reporting on any on ground SEB outcomes.

MARP FINAL 051108.DOC Page 143 Cairn Hill Magnetite-Copper-Gold Mining Project

8. Mine Closure and Rehabilitation Plan

8.1 Introduction

TR proposes to decommission and rehabilitate parts of the ML area at the closure of mining activities. The decommissioning (closure) and rehabilitation objectives for the project are outlined as follows:

To remove all site equipment and infrastructure. To recreate a safe, stable area and landform.

8.2 Principles

The factors considered as part of the rehabilitation and closure plan include:

public safety hazards and risks ecological compatibility potential as ongoing source of pollution future land use and resource demands; and aesthetics.

Principles of the rehabilitation and closure are summarised as follows:

Minimisation of areas to be disturbed, thereby minimising the areas to be rehabilitated. Final land form and condition of disturbed areas to be stable. Final land condition not to pose an unacceptable risk to local soil, groundwater or surface water resources. Mined area to be in a condition which allows access for future resource development.

8.3 Environmental Impact Assessment

8.3.1 Potential Impacts

Four potential impacts relating the successful closure and rehabilitation of the site were identified and are detailed are as follows:

8.3.1.1 Compatibility with Land Use

In order for the site to be returned to the pre-mining land use of cattle grazing, following the closure of the mine, appropriate decommissioning works are required such as complete removal of construction equipment and infrastructure.

It is considered possible that there would be impacts on the use of the land for cattle grazing due to incomplete decommissioning of the site. If impacts occurred, it is considered that they could be moderate resulting in a medium inherent risk rating.

8.3.1.2 Erosion of Soil

The successful establishment of vegetation at the site will be dependent on the presence of suitable soil resources following mining operations in addition to control of soil erosion during rehabilitation. In is considered possible that the regeneration of vegetation on site will be impacted by loss of soil due to erosion or from compaction of soil due to mining operations. It

MARP FINAL 051108.DOC Page 144 Cairn Hill Magnetite-Copper-Gold Mining Project

is considered that this would result in moderate consequences, resulting in a medium inherent risk rating.

8.3.1.3 Stock Grazing on Regenerating Vegetation

The successful establishment of vegetation at the site will be dependent on an environment that is free of grazing animals (including both native and pest animal species) to allow them to develop into mature reproductive adults.

It is considered possible that the regeneration of vegetation on site will be impacted by grazing stock. It is considered that this would result in minor consequences, resulting in a medium inherent risk rating.

8.3.1.4 Visual Amenity Following Mine Closure

Due to the remote nature of the site, it is considered unlikely that the rehabilitation of the area will result in impacts to the visual amenity within the local and regional area. In the event that impacts did occur, it is considered that they would be minor in nature and therefore result in a low risk.

8.4 Rehabilitation and Closure

The areas to be rehabilitated within the ML area will be focussed on the ROM Pad and laydown area.

Some of the infrastructure such as the haul road, groundwater bores, access tracks and possibly other infrastructure (to be determined at mine closure) will be handed over to the pastoralist at the completion of mining operations and so will not be rehabilitated.

The waste dump(s) will be constructed progressively during mining operations and the mine pits will remain as permanent features in the landscape. These areas are discussed in Sections 8.4.2 below.

8.4.1 Decommissioning

All mining equipment decommissioned and removed from site. All ancillary equipment dismantled and removed from site. Haul road handed over to the pastoralist. Groundwater monitoring wells decommissioned or handed over to the pastoralist. Groundwater monitoring wells decommissioned or handed over to the pastoralist Other infrastructure (to be determined at mine closure) will be handed over to the pastoralist

8.4.2 Rehabilitation

8.4.2.1 Waste Dumps

Waste dumps will be constructed as discussed in Section 5.6

Given the arid environment, characterised by low and unreliable rainfall, the nature of the material and the limited topsoil available, revegetation of the surface of the waste dump landforms would be extremely difficult. It is therefore not proposed to revegetate the waste landforms. The landforms will naturally contain crevices which could provide habitat for reptiles and small amounts of birds.

MARP FINAL 051108.DOC Page 145 Cairn Hill Magnetite-Copper-Gold Mining Project

8.4.2.2 Mine Pit(s)

The mine pits will remain as permanent features in the landscape. A bund will be constructed around the mine pits, which can not be driven over by vehicles or be traversed inadvertently by the public.

Appropriate signage will be placed on / near this bund.

8.4.2.3 Laydown Area and ROM Pad

Following decommissioning, disturbed areas will be scarified and watered (with non-saline water) to allow natural revegetation.

If natural revegetation does not occur, seeds will be collected followed by revegetation and ongoing monitoring and maintenance until vegetation established to an acceptable condition.

8.5 Management Measures During Mining Operations

Measures to be undertaken during mining operations to avoid, mitigate and manage the risks associated with successful rehabilitation of the ML area will include the following:

• Use of overburden material to facilitate ongoing construction of waste landforms and encapsulation of PAF waste. • Stabilisation of waste landforms using saline water (if required).

8.5.1 Residual Risk Acceptance, Outcomes and Assessment Criteria

Based on the proposed closure and rehabilitation measures outlined above, the residual risk of the identified decommissioning and rehabilitation risks associated with the mining operation have been reduced to very low and low.

In determining the acceptability of these levels, TR has considered both the practicalities and economics of managing the impacts. The residual risks are considered to be as low as reasonably practicable and for this reason are considered by TR to be acceptable for the project.

Predicted outcomes have been identified for each of the impacts and reflect the anticipated level of environmental impact associated with the trial project. Criteria have also been developed to facilitate assessment against the predicted outcome.

A summary of the environmental risk assessment including inherent risks, control and management measures and residual risks are provided in Table 8.1 below, in addition to predicted outcomes and assessment criteria developed as a result of the residual risk assessment.

MARP FINAL 051108.DOC Page 146 Cairn Hill Magnetite-Copper-Gold Mining Project

Table 8.1 Environmental Risk Assessment Summary, Control Measures, Predicted Outcomes and Assessment Criteria – Mine Closure and Rehabilitation

Objectives: To remove all site equipment and infrastructure

To recreate a safe, stable area and landform.

ID Aspect and IRL Summary of control and RRL Predicted Assessment criteria impact management measures outcomes CH_024 Decreased MED Remove all mine VL No mine equipment Demonstration that no equipment, compatibility infrastructure from site. and infrastructure to infrastructure and waste remains on site with use of land Inspection of site during remain on site after decommissioning for cattle and following mine following mine grazing due to closure to ensure all mine closure failure to equipment and completely infrastructure removed remove mine from site. equipment and infrastructure. CH_025 Rehabilitation MED Stabilise disturbed L Rehabilitation Rehabilitated ROM, hardstand and cleared failure due to surfaces and revegetated success not areas ripped, scarified and watered. unacceptable areas during rehabilitation significantly Rehabilitated disturbed areas demonstrate erosion rates in with water and ensure impacted upon by vegetation coverage 50% of that for areas of soil structure limits erosion of soil undisturbed reference (control) site regenerating erosion Demonstrate ‘as built’ waste dumps comply vegetation Design and construct with Section 5.6.1.3 Waste Rock abandoned landforms to Management ensure erosion rates no Demonstrate that abandoned mine voids more than natural are geotechnically stable by complying with Section 5.2.2 Geotechnical Engineering

MARP FINAL 051108.DOC Page 147 Cairn Hill Magnetite-Copper-Gold Mining Project

ID Aspect and IRL Summary of control and RRL Predicted Assessment criteria impact management measures outcomes CH_026 Rehabilitation MED Restrict and monitor L Rehabilitation Demonstrate that cattle are restricted from failure due to access of cattle to areas success not impacting on revegetating areas stock grazing on of regenerating significantly regenerating vegetation impacted upon by vegetation stock grazing on regenerating vegetation

MARP FINAL 051108.DOC Page 148 Cairn Hill Magnetite-Copper-Gold Mining Project

8.6 Closure Cost Estimate

The estimated cost to decommission and rehabilitate the mine site is based upon the NSW Department of Primary Industries Cost Calculation model for an Open Cut Metals Mine and is summarised in Table 8.2 below and forms Appendix K.

Table 8.2 Closure Cost Estimate

Management Precinct Amount Infrastructure • Process Plant / Mill $77,330 • Rail Line and Loop $0 • Main Workshop Area $184,580 • Admin Buildings $41,250 • Access and Haul roads $0 • Sewerage / Water Treatment Plants $3,872 • Hardstand / Laydown Areas $0 Sub Total - Infrastructure $307,032 Tailings $0 Sub Total - Tailings $0 Waste Rock Dumps $0 Sub Total – Waste Rock Dumps $0 Active Mine and Voids • Active Pit $55,385 • Highwall Treatment $0 • Disturbance ahead of mining $0 • River and creek diversions $0 Sub Total – Active Mine and Voids $55,385 Other $9,000 Sub Total - Other $9,000 Management and Contingencies • Management $120,712.55 • Contingencies (10%) $49,212.96 Sub Total – Management and Contingencies $169,925.51 TOTAL $541,342.51

8.6.1 Mine Closure Cost Assumptions

The mine closure cost assumptions are based upon the NSW Department of Primary Industries Cost Calculation model for an Open Cut Metals Mine and is summarised below:

8.6.1.1 Infrastructure

Process Plant / Mill – No fixed process plant nor mill will be established. Majority of the closure costs are associated with the assumption that material will be required from the 9Ha ROM pad as well as ripping / scarifying the pad.

Rail Line and Loop – No rail line nor loop forms part of this MARP.

MARP FINAL 051108.DOC Page 149 Cairn Hill Magnetite-Copper-Gold Mining Project

Main Workshop Area – Assumptions have been made for the size of buildings / workshops and concrete to be removed. The majority of costs are associated with the removal of buildings.

Admin Buildings - Assumptions have been made for the size of buildings and concrete to be removed. The majority of costs are associated with the removal of buildings.

Access and Haul roads – All haulroads will be left in-situ as agreed with the pastoralist. Sewerage / Water Treatment Plants – An allowance has been made for the removal of RO plants.

Hardstand / Laydown Areas – No allowance has been made here, allowance made in the ‘Main Workshop Area’ section.

8.6.1.2 Tailings

No allowance for rehabilitation for tailings dam has been made as no tailings dams will be established on site.

8.6.1.3 Waste Rock Dumps

No allowance for rehabilitation of waste rock dumps has been made as no battering down (shaping) of dump faces, placement of topsoil etc. has been allowed due to the nature of the waste material to be mined and placed on the dumps as well as the overall scarcity of sufficient topsoil material on site.

8.6.1.4 Active Mine and Voids

An allowance has been made for the shaping of the final pits for surface water drainage. The placement of the ‘Pit Abandonment Bund’ will occur during mining operations and as such no allowance has been made in the mine closure cost estimates.

8.6.1.5 Other

An allowance for site survey has been made under ‘Other’ as part of the closure estimate.

8.6.1.6 Management and Contingencies

An allowance for management and contingencies for the closure activities based on the formulas contained in the model have been allowed for.

8.7 Mine Closure Schedule

At the completion of the Cairn Hill Project rehabilitation of the site Laydown Area and ROM Pad shall occur.

The mining contractor shall demobilise all plant and equipment associated with the works.

Remaining infrastructure as agreed with the pastoralist shall be handed over to the pastoralist.

MARP FINAL 051108.DOC Page 150 Cairn Hill Magnetite-Copper-Gold Mining Project

As due to the nature of the material forming the waste dumps, the nature to use the majority of the established infrastructure (roads etc.) up to and post completion of mining activities the ability to carry out progressive rehabilitation of the site is limited.

The site shall be cleaned up and rehabilitated within three (3) months of the completion of mining and crushing activities.

Ongoing monitoring of the rehabilitated areas shall be undertaken as long as necessary to ensure that closure criteria are achieved

MARP FINAL 051108.DOC Page 151 Cairn Hill Magnetite-Copper-Gold Mining Project

9. Management Systems

TR has prepared a Mine Management Plan, a Supplier and Subcontractor Management Plan and an Occupational Health and Safety Management Plan. These plans describe the processes and strategies implemented to ensure the safe and successful execution of the works and management of the mine.

The owners of TR and its senior management team confirms its commitment to management systems outlined in the plans and to continued improvement that will ensure technical specifications are met and safety is never compromised.

The management plans are attached as Appendix H.

9.1 Management Plan Objectives

As part of the management plan, capability guidelines and procedures have been developed for implementation during the mining operations covering the following areas:

Project Management Personnel Administration Reporting Document and Record Management Purchasing and Sub-contractor Management Quality Management Risk Management.

Environmental risks for the mining operation will be managed by TR via the EMPs, control and management measures and assessment criteria detailed within the Environmental Risk Assessment in the MARP.

9.2 Supplier and Subcontractor Management Plan Objectives

As part of the supplier and subcontractor management plan, guidelines and procedures have been developed for the management of suppliers and subcontractors during the mining operations covering the following areas:

pre-start requirements start-up requirements execution requirements verify completion.

9.2.1 Health, Safety, Environment and Quality

Induction into the requirements relating to health, safety, environment and quality for the mining operation will be communicated and achieved by:

sending the requirements via correspondence purchase order terms and conditions extract from Contract Documents copies of Mine HSEQ Documentation other Statement of Requirements verbally through a documented meeting.

MARP FINAL 051108.DOC Page 152 Cairn Hill Magnetite-Copper-Gold Mining Project

Through these various induction methods, details of the environmental risks and management requirements for the trial mining operation (as detailed within the Environmental Risk Assessment and EMPs in the MARP) will be thoroughly conveyed.

9.3 Occupational Health and Safety Management Plan Objectives

Termite Resource’s Occupational Health, Safety and Welfare methodology is based on the South Australian Occupational Health, Safety and Welfare Act, and the South Australian Occupational Health, Safety and Welfare Regulations (latest publications and amendments).

Every employee of Termite Resources is expected to be familiar with and fully comply with the legal and company responsibilities as set out in the state legislation and the Occupational Health, Safety and Welfare Manual.

The OH&S Management Plan will be used as a basis for induction into OH&S requirements for employees, suppliers and subcontractors, in addition to the other induction methods described above.

MARP FINAL 051108.DOC Page 153 Cairn Hill Magnetite-Copper-Gold Mining Project

10. Bibliography

Armstrong, D & Aldam, RG, In: Drexel, JF and Priess, WL (Eds) 1995, The Geology of South Australia, Vol. 2 ‘The Phanerozoic’, South Australian Geological Survey. Bulletin 54:pp126- 127.

Arid Areas Catchment Water Management Board 2006, State of the Catchment Report. South Australian Arid Lands Natural Resource Management Board, South Australia.

ARRB (Transport Research Ltd.) 2000, Environmental Best Practice for Roads. Transport SA Contract Report RC 90165-4,

AustralAsia Railway Corporation 2004, Railway Operations, Commencement of Operations, 6 October 2006,

Australian Bureau of Statistics 2003a. Coober Pedy (DC) (SLA 435251330) Expanded Community Profile. 2001 Census Community Profile Series, Commonwealth of Australia.

Australian Bureau of Statistics 2003b. Coober Pedy (DC) (SLA 435251330) Time Series Profile. 2001 Census Community Profile Series, Commonwealth of Australia.

Australian Bureau of Statistics 2003c. Roxby Downs (M) (SLA 435256970) Expanded Community Profile. 2001 Census Community Profile Series, Commonwealth of Australia.

Australian Bureau of Statistics 2003d. Roxby Downs (M) (SLA 435256970) Time Series Profile. 2001 Census Community Profile Series, Commonwealth of Australia 2003.

Brandle, R, Moseby, KE, & Adams, M 1999, The distribution, habitat requirements and conservation status of the plains rat, Pseudomys australis (Rodentia : Muridae). Wildlife Research, 26, 463-477.

Cane, S & Nicholson, A 1998, Work Area Clearance report for the WMC for the Coober Pedy Project.

Commonwealth of Australia 2006, Inclusion of species in the list of threatened species under section 178 of the Environment Protection and Biodiversity Conservation Act 1999 (48). Deletion of Maireana melanocarpa (Black-fruit Bush) from the list in the vulnerable category. Ian Campbell, Minister for the Environment & Heritage. Federal Register of Legislative Instruments F2006L03838.

Department of Environment and Heritage 2006, Ophidiocephalus taeniatus Bronzeback Snake-lizard, Species Profile and Threats Database, 30 October 2007,

Department of Environment and Heritage 2005, Draft Biodiversity Strategy for the Stony Plains Bioregion, South Australian Arid Land, DEH South Australia.

Department of Transport and Urban Planning 2003, Planning Strategy for Regional South Australia.

District Council of Coober Pedy Council, History, Coober Pedy, 6 October 2006,

MARP FINAL 051108.DOC Page 154 Cairn Hill Magnetite-Copper-Gold Mining Project

District Council of Coober Pedy and the Coober Pedy Retail Business and Tourism Association 2006, Coober Pedy Opal Capital of the World, 12 November 2006,

Dodds, AR 1997, A Groundwater and Surface Study over the Northwest Gawler Craton, SA, Report 97/06, Department of Mines and Energy Geological Survey South Australia.

Drexel, JF and Priess, WL (Eds) 1995, The Geology of South Australia, Vol. 2 ‘The Phanerozoic’, South Australian Geological Survey. Bulletin 54:pp126-127.

EBS 2006a, Cairn Hill Flora and Fauna Assessment, Coober Pedy, Environmental Biodiversity Services, Unpublished Report prepared for Parsons Brinckerhoff (revised 2007).

EBS 2006b, Cairn Hill Targeted Survey and Regional Assessment, Coober Pedy. Environmental Biodiversity Services, Unpublished Report prepared for Parsons Brinckerhoff.

EBS 2007a, Draft Haul road (45km)/ Wirrida Siding Bird Assessment, Coober Pedy, March 2007. Environmental Biodiversity Services, Unpublished Report prepared for Parsons Brinckerhoff.

EBS 2007b, Draft proposed Haul Road (45km) and Rail Siding Flora/Fauna Assessment, Cairn Hill Project. July 2007. Environmental Biodiversity Services, unpublished report prepared for Parsons Brinckerhoff. (option 2)

EBS 2007b, Proposed Haul Rd (70 km) and Rail Siding Flora/Fauna Assessment, Cairn Hill Project. September 2007. Environmental Biodiversity Services, unpublished report for Parsons Brinckerhoff.

Enesar/Oxiana 2006, Prominent Hill Copper-Gold Project. Mining and Rehabilitation Proposal,

Environment Australia 1997, Best Practice in Environmental Management in Mining: Managing Sulphidic Mine Wastes and Acid Drainage, Canberra.

EPA 2004, Bunding and spill management, EPA Guideline 080/04, South Australia Environment Protection Agency,

EPA 2000, Draft Guidelines for Separation Distances, Government of South Australia

EPA 1999, South Australian Reclaimed Water Guidelines (Treated Effluent), South Australia Environment Protection Agency,

EPA 1997, South Australian Biosolids Guidelines for the Safe Handling, Reuse or Disposal of Biosolids, Government of South Australia

EPA 1995b, Best Practice in Environmental Management in Mining: Mine Planning for Environmental Protection. Commonwealth Environmental Protection Agency, Canberra.

Flinders Port 2006, Port Pirie, 6 October 2006,

Geoscience Australia 2007, Place names search, January 2007,

MARP FINAL 051108.DOC Page 155 Cairn Hill Magnetite-Copper-Gold Mining Project

Habermehl, MA 1980, The Great Artesian Basin, Australia. BMR J. Aust. Geol. Geophys. 5: 9-38

Habermehl, MA & Lau, KE 1997, Hydrogeology of the Great Artesian Basin, Australia. Australian Geological Survey Organisation, scale 1:2 500 000.

Laut P, Keig, G, Lazarides, M. Loffler, E. Margules, C Scott, RM & Sullivan, ME 1977, Environments of South Australia Province 8 Northern Arid, Division of Land Use Research Commonwealth Scientific and Industrial Research Organisation. Canberra, Australia.

Love, AJ, Herczeg, AL, Sampson, L, Cresswell, RG & Fifield LK, 2000, Sources of chloride and implications for 36Cl dating of old groundwater, southern Great Artisian Basin, Australia. Water Resources Research, V36(6):1561-1574.

Miller, G 1998, Predicting Acid Drainage. Groundwork 1(2), 8-9.

Morecombe 2000, Field Guide to Australian Birds. Steve Parish publishing Pty Ltd, QLD.

Moseby, K. E. 2006, Draft Recovery Plan for the Plains Rat, Pseudomys australis. Unpublished, Department for Environment and Heritage, SA.

Neagle, N 2003, An inventory of the Biological Resources of the Rangelands of South Australia. Department for Environment and Heritage, South Australia.

National Parks and Wildlife Services 2002a, Draft Plains Wanderer (Pedionomus torquatus) Recovery Plan, Department for Environment and Conservation, NSW.

National Parks and Wildlife Services 2002b, Thick-billed Grasswren (Amytornis textilis modestus) Recovery Plan, Department for Environment and Conservation, Hurstville, NSW.

National Native Title Tribunal 2006, SA Native Title applications and determination areas, 30 September 2006,

Neagle, N 1995, An Update of the Conservation Status of the Major Plant Associations of South Australia, Department of Environment and Natural Resources, Adelaide.

PB2007a, Cairn Hill Magnetite-Copper-Gold Project Mining Proposal – Groundwater Studies, Unpublished Report PB 07-002401-2102712A.

PB2007b, Cairn Hill Groundwater Supply Investigation, Unpublished Report for Goldstream Mining NL.(now known as IMX Resources or Termite Resources NL (Subsidiary)).

PB2007c, Cairn Hill Acid Rock Drainage Study. Unpublished Report for Goldstream Mining NL .(now known as IMX Resources or Termite Resources NL (Subsidiary)).

Parsons Brinckerhoff 2006, Preliminary Geotechnical Investigation Report for Cairn Hill Mine Site – Process Plant, Waste Dump, Tailing Storage Facilities and Access Road, Unpublished Report for Goldstream Mining NL (now known as IMX Resources or Termite Resources NL (Subsidiary)).

Planning SA 2003, Land not within a council area (Far North) – Consolidated 7 August 2003. Government of South Australia.

MARP FINAL 051108.DOC Page 156 Cairn Hill Magnetite-Copper-Gold Mining Project

PIRSA 2006, Guidelines for the Preparation of a Mining and Rehabilitation Program (MARP) version 3.12,

PIRSA 2005, Guidelines for a Native Vegetation Significant Environmental Benefit Policy for the clearance of native vegetation associated with the minerals and petroleum industry,

PIRSA 2003, Interim Guidelines on Requirements for Mineral Exploration and Mining under the Native Vegetation Act 1991 and Regulations 2003. PIRSA Guideline M30.

Radke, BM Ferguson, J, Cresswell, RG, Ransley, TR & Habermehl, MA 2000, Hydrochemistry and implied hydrodynamics of the Cadna-owie – Hooray Aquifer, Great Artesian Basin, Australia, Bureau of Rural Sciences, Canberra.

Robinson, AC, Casperson, K.D. & Hutchinson, M.N. 2000, A list of the vertebrates of South Australia, Department for Environment and Heritage, Adelaide.

Strahan, R 1995, The Mammals of Australia, Reed Books, NSW.

South Australian Arid Lands Natural Resources Management Board (SAALNRMB) 2006, Water Allocation Plan: Far North Prescribed Wells Area (final draft). South Australian Arid Lands Natural Resources Management Board.

WMC (Olympic Dam Corporation) Pty Ltd 2004, Environmental Management and Monitoring Report 1 January 2004 – 31 December 2004, 22 November 2006,

Wood, V & Fitzpatrick, P 2007a, Work Area Clearance for the proposed Cairn Hill MLA and haul road route, A report to Goldstream Mining NL (now known as IMX Resources or Termite Resources NL (Subsidiary)) and the Antakarinja Matu-Yankunytjatjara Native Title Claimants.

Wood, V & Fitzpatrick, P 2007b, Work Area Clearance proposed Cairn Hill Mining Lease, A report to Goldstream Mining NL (now known as IMX Resources or Termite Resources NL (Subsidiary)) and the Arabunna People’s Native Title Claimants.

Wood, V & Fitzpatrick, P 2007c, Work Area Clearance for proposed Cairn Hill haul road route – northern option, A report to Goldstream Mining NL (now known as IMX Resources or Termite Resources NL (Subsidiary)) and the Antakarinja Matu-Yankunytjatjara Native Title Claimants. August 2007.

Whyalla South Australia 2006, Whyalla South Australia Infrastructure, 6 October 2006,

MARP FINAL 051108.DOC Page 157