Cairn Hill Magnetite- Copper-Gold Mining 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
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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 (South Australia) 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
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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
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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
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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
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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
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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
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Appendix I Environmental Risk Register Appendix J Stakeholder Consultation Record Appendix K Mine Closure Cost Estimate
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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 Adelaide 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:
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