OCTOBER Reaps the benefits of Western 2010 Clean Coal Victoria First technical resource assessment CO2CRC Greenhouse gas technologies Mining Ltd Bendigo expands with merger Northgate Minerals Corporation Northgate keeps pouring Victorian gold 10 PAGE SUMMARY

Resources Victoria Conference 2010 VICTORIA’S EARTH RESOURCES JOURNAL DEPARTMENT OF Regulars PRIMARY INDUSTRIES

Minister’s Foreword News Updates RDV Drilling Update Peter Batchelor PAGE 3 TO 7 Round three drilling progress Minister for Energy and Resources • CO2CRC PAGE 8 PAGE 2 • Former Tenement Updates Executive joins DPI What’s happening with mineral Executive in Focus • Victorian Geothermal sector applications and licences Rod Hanson heats up its community engagement PAGE 32 PAGE 13 • Victoria’s online exploration tools made easier Contacts • Dart Mining NL moves towards Your guide to Earth Resources. first Moly resource Information, contacts • Clean Coal Victoria Releases First and resources sector websites Technical Resource Assessment PAGE 33 • New legislative changes for Victoria’s mining and extractive industries CONTENTS

Articles Resources Victoria Conference

Minotaur Exploration Ltd Presenters Forum Summary Minotaur on the hunt for new minerals in Victoria ExxonMobil Craig Haymes page 9 Jabiru Metals Gary Comb Iluka Resources Iluka Resources Steve Wickham Above: Process plant at Kangaroo Flat. Iluka Resources to reap the benefits Bass Strait Oil Company Andrew Adams of Western Victoria Greenearth Energy Mark Miller For Discovery online visit: page 10 - 11 Heron Resources Mathew Longworth www.dpi.vic.gov.au/minpet/discovery Bendigo Mining Ltd 3D-GEO Jessie Davey or to receive your free copy send your details to: Bendigo expands with Bendigo Mining Rod Hanson BCD Resources merger Megan Temple pageS 22 - 27 Earth Resources Division page 12 Department of Primary Industries Next Generation Tools For Explorers: Phone: 03 9658 4402 Northgate Minerals Corporation Technical Forum Summary Email: [email protected] Northgate keeps Understanding the plumbing pouring Victorian gold Building ’s most comprehensive of the Gippsland Basin page 14 - 15 PUBLISHING DETAILS Peter Tingate onshore and offshore 3D geological model Discovery is published three times a year by Castlemaine Goldfields Ltd the Victorian Government Department of Primary Three-dimensional modelling Industries, Earth Resources Division, , Exploration success at after in the Melbourne Zone October 2010. Castlemaine acquisition GeoScience Victoria has started delivering outputs These products, along with those soon to be ISSN Number 13282409 page 16 - 17 Mark A. McLean from its Rediscover Victoria 3D modelling initiative. released for the Gippsland Basin and eastern For more information contact: 3D Oil Ltd New Victorian Heat Flow Map Department of Primary Industries 3D products are now available for download which Victoria, will provide explorers with new free Level 16, 1 Spring Street, Melbourne 3000. 3D Oil Ltd aims at David Taylor include: pre-competitive datasets that can be used www.dpi.vic.gov.au Bass Strait production New solution to the DISCLAIMER page 18 - 19 Ordovician-Silurian geometry puzzle predictively to reduce risk, time and cost of – 3D models of the Bendigo, Stawell, Grampians- This publication may be of assistance to you, but Ross A. Cayley discovery. the State of Victoria and its officers do not guarantee / Lakes Oil Stavely and Melbourne structural zones that the publication is without flaw of any kind or is Beach Energy farms into Seamless geological data wholly appropriate for your particular purposes and Lakes Oil onshore project for Melbourne Zone – 3D models and accompanying report on the therefore disclaims all liability for any error, loss or For more information: other consequence which may arise from you relying page 20 David Higgins hot sedimentary aquifers of the Otway Basin on any information in this publication. Providence Gold and Minerals New exploration tools Contact Dr Tim Rawling, This publication is copyright. No part may be – New 3D geophysical datasets and reports reproduced by any process without the written New Gold discovery under cover and new insights for Victoria Phone: +61 3 9658 4584 permission of the Department of Primary Industries. north of Bendigo Timothy J Rawling including isostatic gravity and potential field Email: [email protected] page 21 pageS 28 - 31 gradients ACKNOWLEDGMENTS Visit www.3dvictoria.dpi.vic.gov.au The Earth Resources Development Division acknowledges contributions made by private – Depth to basement surfaces for the whole state enterprise. Acceptance of these contributors, however, does not endorse or imply endorsement by – Numerical simulation results associated with gold the Department of Primary Industries of any product or service offered by the contributors. deposition and strain partitioning associated with mineralising events DEPARTMENT OF PRIMARY INDUSTRIES

Next Generation Tools For Explorers: Building Australia’s most comprehensive onshore and offshore 3D geological model

GeoScience Victoria has started delivering outputs These products, along with those soon to be from its Rediscover Victoria 3D modelling initiative. released for the Gippsland Basin and eastern 3D products are now available for download which Victoria, will provide explorers with new free include: pre-competitive datasets that can be used predictively to reduce risk, time and cost of – 3D models of the Bendigo, Stawell, Grampians- discovery. Stavely and Melbourne structural zones

– 3D models and accompanying report on the For more information: hot sedimentary aquifers of the Otway Basin Contact Dr Tim Rawling, – New 3D geophysical datasets and reports Phone: +61 3 9658 4584 including isostatic gravity and potential field Email: [email protected] gradients Visit www.3dvictoria.dpi.vic.gov.au – Depth to basement surfaces for the whole state

– Numerical simulation results associated with gold deposition and strain partitioning associated with mineralising events 2 MINISTER’S FOREWORD potentially importantnewsource of renewableenergy. provides datathatwillbeinvaluable asweworktoharnessthis across southernandnorth-western Victoria.Thisgeothermalatlas energy potentialbasedonmeasurementsatmorethan100sites launched aground-breakingnewatlasoftheState’sgeothermal in rocksandhotwateraquifers.TheVictorianGovernmenthas deep beneaththeearth’ssurfacefromnaturallyoccurringheat stage projectstomakeuseofthiscleanenergysource,generated energy needs.Severalcompaniesarealreadyworkingonearly which couldplayanimportantroleinmeetingtheState’sfuture Geothermal AtlasMapsOutAnOpportunity capture asatooltoloweremissions. perfectly placedtobecomeagloballeaderindevelopingcarbon located nexttotheworld’sbiggestbrowncoalresource,Victoriais vastdepletedoilandgasreservoirs in theGippslandBasin.With develop anetworkofpipelinestotransportcarbonstoragesites funding fortheCarbonNetinitiative.Thiswillfundworkonplansto to loweritsemissionsandtheWhitePaper featured$30millionin highlighted thehugepotentialforVictoriatousecarboncapture 20% cutingreenhousegasemissionsby2020.Bothdocuments Change WhitePaper ActionPlan,whichchartsacoursefor constrained future.ItfollowedthisupinJulywithitsClimate the Statefacesinmeetinggrowingenergydemandacarbon discussion paper, settingoutthechallengesandopportunities Future EnergyPlansFeature CarbonCapture measurement forthelevyingofcoalroyalties. of approvalsprocessesandmoreconsistentaccurate a prospectinglicencetailoredtosmallminers,streamlining can beheldforuptothreetenyearperiodsinsomecircumstances. requirements willnotapplytothesenewretentionlicenses,which a genuineintentiontodevelopmineralresources.Relinquishment licence willdelivergreatersecurityoftenureforminerswhohave identified butitscommercialviabilityisstillbeingassessed.The retention licencetobegrantedwhenamineralresourceis encouraging explorationfornewresources. security oftenureforcommitteddeveloperswhileatthesametime framework forthesector. Theystriketherightbalancebyproviding to ensureVictoriahasaneffectiveandmodernregulatory Development) Act,whichhavenowpassedintolaw, aredesigned explorers anddevelopers. laws andawealthofgeologicaldatamakingthestateanattractivedestinationfor Victoria’s miningsectorisopenforbusinesswiththeworld’smostmodern OCTOBER 2010 DISCOVERY JOURNAL Geothermal powergenerationisanotheremergingtechnology In JunetheGovernmentreleasedVictoria’sEnergyFuture Other measuresintheamendmentsincludecreationof The centrepieceofthereformsisintroductionanew Resources (Sustainable Boost Investment Revamped MiningLawsTo for thenextbigdiscovery. miners aheadstartinthehunt model ofVictoriathatgives like asophisticatedgeological industry withinnovativeinitiatives the State. generation ofminesacross investment inthenext reforms designedtodrive has putinplacelegislative The Victorian Government Amendments totheMineral It isalsosupportingthe

jobs inVictoria. mining andpetroleumindustriestogrowthesectorcreatenew vibrant earthresourcesindustry. Ilookforwardtoworkingwiththe projects thatarewritingthenextchapterinhistoryofourstate’s Conclusion resource thatwillunderpinstrategicplanningforfuturemining. building upadetailedpictureoftheState’sgiantbrowncoal processing theresultsfromitsnextroundofdrillingatLongford, for potentialresidentialdevelopment.CleanCoalVictoriaisnow mine andthetownshipofNewborough,openingupmoreland a result,theGovernmenthasmovedbufferzonebetween economically viablecoalatNewboroughonthewesternside.As a significantcoalresourcetotheeastofminebutverylittle key strategicasset.DrillingaroundtheYallourn Mineconfirmed this isalreadyinformingdecisionsabouthowbesttodevelop yielded importantdataaboutVictoria’sbrowncoalresourcesand Coal StudyDrivesStrategicPlanning mining industry’sfuture. help themmakethediscoveriesthatwillunderpinVictorian explorers freeaccesstoasophisticatedandpowerfultoolthatwill the southtoSheppartoninnorth.RediscoverVictoriaisgiving Wilsons Promontoryin in thewesttoMansfieldeastandfrom Melbourne Zonecovers37,600squarekilometres,fromHeathcote Government’s $2.5millionRediscoverVictoria3Dinitiative.The section inthewhole-of-Victoria modelbeingcreatedunderthe Zone modelthelatestpieceinpuzzle.Thisisfourth 3D geologicalmodelofVictoria,withthereleaseMelbourne Statewide GeologicalModelGrows Peter Batchelor Minister forEnergyandResources This editionofDiscoverytellsthestoriesinnovative The firsttechnicalassessmentfromCleanCoalVictoriahas Work isgatheringpaceinthedrivetobuildupastate-of-the-art

Dr Cooksaid. many activitiesthatwilltakeforward CCS,’’ these provideuswithastrongbasis toour facilities intheOtwayBasin.Together Hazelwood andourworldclassstorage research assetsatMulgraveand ‘’We willcontinue touseourcapture understanding aboutthetechnology.” dioxide captureandincreasethepublic’s options, reducethecostofcarbon to identifyandeffectivelyusestorage role insupportingthoseprojects,helping “CO2CRC researchwillplayanimportant deployment. major technicalobstaclestolargescale geological storage,whilefocusingonthe transport ofcarbondioxide,throughtoits fromthecapture, tackle allaspectsofCCS Cook, saidthe2010-2015program,would Chief ExecutiveofCO2CRC,DrPeter Cooperative ResearchCentresProgram. the CommonwealthGovernment’s extension ofitsfundingto2015under afteran forefront ofresearchintoCCS The CO2CRCissettoremainatthe and overseas. due tocomeon-stream,bothinAustralia reducing carbondioxideemissionsare projectsaimedat the commercialCCS It isinthenextfiveyearsthatfirstof Technologies (CO2CRC). Research CentreforGreenhouseGas according totheCooperative technologies, and Storage(CCS) global developmentofCarbonCapture The nextfiveyearswillbecrucialforthe Above: for GreenhouseGasTechnologies (CO2CRC) Cooperative ResearchCentre of thebrown coalgasifier, usingthree innovativenewtechnologies. This solventrigisoneofthree CO2CRCrigsinuseattheCO2CRC/HRLMulgraveCaptur on each. study areaandgasanalysiswas performed 2010, 245samplesweretakenacrossthe monitoring survey, conductedinMarch During thelatestsoilgasassurance been storedsafely. community thatthecarbondioxidehas continuing, providingassurancetothe CO2CRC saidsoilgassurveyswere In anupdateontheOtwayProject, globe,” DrCooksaid. together, hereinAustraliaandaroundthe excellence theCO2CRChasbrought “Re-funding isrecognitionofthescientific demonstration projects. continuing workatcarbondioxidecapture formations andmonitoring,aswell investigating storageinsalinegeological second stageattheOtwayProjectsite The newresearchprogramincludesa storage project. Otway ProjectinVictoria,Australia’sfirst dioxide deepundergroundattheCO2CRC demonstrated thesecurestorageofcarbon Furthermore, theCO2CRChasnow assessments. Golab, providesatemplateforregional The AtlasdevelopedbyDrAlexandra and socialenvironmentalsensitivities. and accessibility, relatedresourcesissues of NSWbutalsolooksatinfrastructure Wales (NSW)whichfocusesonthegeology AtlasofNewSouth launched theCCS He saidthatinrecentmonths,theCO2CRC e Project. Theserigscapture CO2from syngas,theproduct Above: Email: [email protected] Telephone: +61261201600 Gas Technologies The CooperativeResearchCentreforGreenhouse Chief Executive Dr Peter Cook FOR MOREINFORMATION: the modelledbehaviourofcarbondioxide. downhole samplingandmonitoringtoverify includes atmospheric,groundwaterand program attheOtwayProjectsitewhich the worldclassmonitoringandverification The soilsamplingisonecomponentof dioxide. occurring andisnotinjectedcarbon that thecarbondioxidedetectedisnaturally limit forallsamplesanalysed,indicating Concentrations werebelowthedetection Otway Project.’’ with thestoredcarbondioxideaspartof ‘’For thisreason,tracergaseswereinjected natural andinjectedcarbondioxide. being abletotellthedifferencebetween of theassurancemonitoringprogramis The updatesaidthatoneofthechallenges Capture Project. separation technologiesbeingevaluatedthrough theCO2CRCH3 Vacuum swingadsorptionisoneofthr ee carbondioxide 3 NEWS UPDATES Former Rio Tinto Executive joins DPI Victorian Geothermal sector heats up its community engagement

“I’m very pleased to be working towards Greenearth Energy’s exercise in Victoria’s continued economic prosperity establishing a new position in this from the sustainable development of its emerging industry has lead it to a earth resources,” Mike said, adding that he more comprehensive approach in its sees his new role as promoting four major community engagement. Community outcomes for Victoria: and stakeholder consultation is now very • ensuring exploration contributes a much a feature of Greenearth Energy pipeline of potential resources projects; Ltd’s plans for its Geothermal • supporting and facilitating the Power Project (GGPP). development of major resources projects for the benefit of all Victorians; While the company works towards NEWS UPDATES • continuing to develop an aligned, establishing the GGPP, it has moved to positively engaged industry; and engage the community in all aspects of • working to maintain an engaged positive what will be a new industry for Victoria through the formation of a Community Dr. Mike Hollitt is the new Executive community that understands the role of Reference Group (CRG). Director of the Earth Resources mining in economic and social prosperity. Development Division, Department of “The aim of the CRG is to provide a In facing those challenges, Mike believes he Primary Industries (DPI), a position he transparent, representative and accessible would need to, among other things: assumed on 27 April 2010. forum to address issues of community • support the establishment of legislative interest related to the project and to capture A qualified chemical engineer, metallurgist instruments that align government community feedback and suggestions,” and MBA, Mike has worked in every processes with business processes, e.g., the company announced in late July. populated continent, managing resource via the Mineral Resources (Sustainable projects, new process development and Development) Act amendments, and in “The CRG also exists to assist with the operational efficiencies across the value many other ways; decision making for the GGPP, to increase chains from resource assessment to • focus on individual industries understanding about the project within the finished products in the lead, zinc, copper, encouraging the participation of globally community, and to ensure a more effective mineral sands, chemicals and aluminium linked competitors in strategic industries response from the project team to any industries. in Victoria; arising issues and concerns,” the company • seek new competitive positions for said. Prior to joining DPI, Mike was with Rio Victoria in energy resources; and Tinto occupying eight senior executive and • continue to support access for Greenearth said that advertisements calling general management roles over 25 years, industries having high importance to the for nominations from interested members including the position of Executive Director development of our cities, regions and of the community and representatives (and Working Group Chairman) of the Rio infrastructure. of stakeholder groups were placed in Tinto Foundation for a Sustainable Minerals publications circulated in the project area Industry and Technical Director of the Rio Mike looks forward to working with at the beginning of the June quarter. Tinto La Granja Project in Peru. all Victorian stakeholders to meet the challenges of developing Victoria’s earth “A number of nominations were received, Mike suggests that Victoria is the birthplace resources for the benefit of all Victorians. representing a diverse range of community of the Australian mining and processing groups in the Wensleydale, Gherang, For more information contact industries and notes that it still houses Anglesea, and Geelong region, as well as the head offices of some major global Dr Michael Hollitt Executive Director some interested individuals.” corporations. Victoria continues to host Earth Resources Development Division thriving industries in coal, gold and mineral Department of Primary Industries It said that an independent selection sands, with considerable potential to further Telephone: 03 9658 4410 panel, consisting of representatives from Email: [email protected] progress these industries, base metals Department Sustainability and Environment and new opportunities in geothermal and (Bellarine Region), Barwon Water and the carbon storage. Surf Coast Shire made the selections for the CRG which will consist of an independent Chairperson, 10 members representing various stakeholder and community groups and Greenearth Energy’s representative, Executive Director Robert King. Greenearth is also providing secretarial support to the CRG.

4 DISCOVERY JOURNAL OCTOBER 2010 Victoria’s online exploration tools made easier

Subject to financing availability, the GGPP project envisages spending $104 million on firstly proving the geothermal potential of the region’s hot sedimentary aquifer, and then building a 12MW demonstration plant. The company is aiming to complete what would essentially be stage one of the project in the second half of 2013.

The establishment of the CRG followed the late June launch of an industry body designed to promote geothermal energy in NEWS UPDATES Victoria by Energy and Resources Minister Peter Batchelor.

Mr Batchelor said the Victorian chapter of the Australian Geothermal Energy Association would “strengthen the promising geothermal energy work already underway across the state.”

“The Victorian chapter will represent Above: A screen capture of the new GeoVic with Geothermal Heat Flow layers displayed. geothermal companies, helping the industry grow and work with communities, as well as helping the community understand more GeoVic is Victoria’s earth resources Apart from these improvements, the about the industry. Diversifying our energy online web mapping application. appearance of the interface has changed sources and technologies is essential if we Although highly regarded, the exploration along with the way the interface works. are to maintain energy security and cut our tool has been redeveloped as part of the The system is also running on a new whole greenhouse gas emissions,” he said. Gold Undercover Initiative. of Victoria Government ICT platform.

Mr Batchelor said that geothermal energy Built on what had become an ageing Extensive Online Help is also one of the was one of the few renewable energy platform, access to more of earth resources features of a new generation of GeoVic. technologies which could provide 24-hour data necessitated a rebuild of the system. base load power for the State’s electricity In light of this, a new GeoVic online web Importantly, the new system will no longer grid. mapping system has been developed over work in Internet Explorer 6. It will require the past year. Internet Explorer 7 or above. This change “In Victoria, there appears to be significant means that it can take advantage of potential to produce geothermal energy It includes many new features: improved browser functionality. from naturally occurring hot water reservoirs • Quick searches to earth resources key deep beneath the earth’s surface,” he said. datasets To be kept informed of when the new • Common searches tailored to speed up system will be implemented, check FOR MORE INFORMATION: the “Service Update” message at Mark Miller searches to datasets/layers Managing Director • User configurable layer transparency www.dpi.vic.gov.au/earth-resources/geovic. Greenearth Energy Ltd • Significant improvements to access to Telephone: 03 9620 7299 For more information contact Email: [email protected] our data stores Robert Lane Website: www.greenearthenergy.com.au • Improved user interface Telephone: 03 9658 4574 • New layer folder functionality Email: [email protected]

• Access to Open Geospatial Consortium data formats • Registration mechanism for enhanced features • Improved accessibility • Improvement in many Earth Resource Images • Real time borehole reports.

5 Dart Mining NL moves towards first Moly resource NEWS UPDATES

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

Early encouragement in its deep drilling Molybdenum and copper mineralisation Despite the excitement caused by the program has given Dart Mining NL the was intersected in core to more than Unicorn/Morgan finds, Dart continues to confidence to work towards issuing 400 metres depth in the first of the deep assess the modern-day gold potential of the first inferred resource estimate for holes and the second deep hole has also its tenements in north-eastern Victoria, its Unicorn molybdenum-copper-silver encountered mineralisation. including its namesake property, the historic property near Corryong in north-east Dart goldfield. Victoria. Mr Bain said that assay results to hand, when taken in combination with surface At the Mountain View prospect a structure Chairman and acting Managing Director mapping, geochemistry and geophysics, extending over one kilometre has been of the Melbourne-based explorer, Chris demonstrates the potential for “a very large subject of detailed near surface drilling Bain, told Discovery in August that the mineralised system of potentially many adjacent to a historic mine. High grade second deep hole at the property was well hundreds of million tonnes.” gold associated with a significant arsenic underway and that the plan was to keep anomaly has been identified from surface, The discoveries at Unicorn and nearby drilling ahead of the maiden resource with the most significant intersection in hole at Morgan are located close to what Mr estimate being made. “We don’t plan to MVD20 of 6 metres grading 21.79 grams of Bain said was the first class infrastructure stop,” Mr Bain said. gold a tonne. base less than 20 kilometres away from The maiden resource estimate – possibly Corryong. Dart said in an investor update that within a year – would be a first for Victoria, additional work was required to better The Morgan porphyry is located 7 given the importance of molybdenum in the understand the continuity of the system kilometres west of Unicorn in the same suite of metals encountered at Unicorn. so that additional drilling can be better structural setting. Diamond drilling targeted in what has the potential to be The Unicorn porphyry was first recognised commenced in November 2009 at a modest sized but rich gold prospect. in late 2007 when field work confirmed the molybdenum-copper-silver-gold outcropping rocks contained a suite of prospect. The Phase I program was FOR MORE INFORMATION: metals. completed in April 2010. A significant Chris Bain zone of visible molybdenite mineralisation Chairman Follow up soil sampling indicated the Dart Mining NL was encountered within highly altered Telephone: 03 9621 1322 presence of a strong multi-element circular sediments and porphyry dykes above what Website: www.dartmining.com.au anomaly, some 500 metres in diameter, is interpreted to be a concealed porphyry with notable molybdenum. Now known complex. as the Unicorn prospect, the feature was first subjected to a program of shallow drill Dart has also identified several other holes. locations it considers are prospective for mineralised porphyry intrusions. At Bunroy The current deep drilling campaign started and Boebuck to the south of Unicorn, in April 2010 and encountered early regional alteration studies indicate the success. existence of intrusions and first pass soil sampling along fire tracks has confirmed anomalous copper, lead and bismuth. Mr Bain said the prospects will be subject to follow up exploration in future.

6 DISCOVERY JOURNAL OCTOBER 2010 Introduction • of reformsincluding: The Actwillintroduceanumber Amendment Act. and informedthedevelopmentof was undertakenaspartofthereview 2009. Anextensiveconsultationprocess part ofareviewwhichcommencedinApril The AmendmentActwasdevelopedas administrative changes. Act 1990tointroduceanumberof Resources (SustainableDevelopment) 2010. TheActwillamendtheMineral received royalassenton14September (Sustainable Development)Act2010 The MineralResourcesAmendment Victoria’s miningandextractiveindustries Introduction ofnewlegislativechangesfor brown coal. plan forthefutureuseofLatrobeValley will seethedevelopmentofastrategic become partofamuchlargerprojectwhich This areaisthefirsttobeassessedandwill very littlecoalonthewesternside. resource totheeastofYallourn mine but investigation confirmedaverylargecoal The Newboroughdrillingandcoalresource and eastofthetownshipNewborough. Newborough westoftheYallourn Mine The firstdrillingwasundertakenat drilling toassistinthistask. and hasundertakensomepreliminary for Victoria’svaluablebrowncoalresource responsible fordevelopingastrategicplan CCV, establishedinmid-2009,is report. its firsttechnicalresourceassessment Clean CoalVictoria(CCV)hasreleased Technical ResourceAssessment Clean CoalVictoria ReleasesFirst Changes • development to improveaccessforgenuineresource arrangements forexplorationlicences licences requirements forretentionandmining

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Email: [email protected] Telephone: 0351609000 Director, CleanCoalVictoria Charlie Speirs, F Email: [email protected] Telephone: 0396584804 Department ofPrimaryIndustries Manager, EarthResourcesPolicy andLegislation Dr DannySuster F website, www.dpi.vic.gov.au the legislationareavailableonDPI www.legislation.vic.gov.au. Linksto and Parliamentary Documentswebsite, available ontheVictorianLegislation Copies oftheAmendmentActare industry processes. greater alignmentoflicensingand security oftenure,andwillleadtoa The Actwillalsoprovideincreased and benefitstoVictorians. increases activityinthemineralsindustry and creatingalegislativeframeworkthat is thelicensingprovisionsofAct, The primaryfocusoftheseamendments 2011-2012. brown coalbeingcompletedduring a viewtohavingthestrategicplanfor drilling programduring2010-2011with CCV willundertakeamoresignificant area willbereleased. Resource AssessmentReportforthis been analysed,thesecondTechnical Council, andoncethedataobtainedhas is locatedwithintheWellington Shire been completedatLongford,which The seconddrillingprogramhasnow Assessment Reportswillbereleased. additional Technical Resource As CCVundertakefurtherdrilling, or or

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contact contact 7 NEWS UPDATES Rediscover Victoria Round three drilling underway

Twelve companies were offered grants totalling Mantle Mining Corporation Ltd (RVD Grant: A$45,000) has A$700,000 under the third round of the Victorian completed two diamond holes to a depth of 568m on the first of Government’s A$2.5 million Rediscover Victoria two magnetic anomalies at Haunted Stream, north of Bairnsdale. The program of four diamond holes is expecting to reach a total Drilling (RVD) project designed to assist exploration depth of 1200m with an additional 800m of RC drilling. Drilling on for new geothermal and mineral resources. the second anomaly will commence in mid-October/November, 2010. Round three received the strongest level of industry interest to date, having more than doubled the number of grants offered

RDV UPDATE RDV compared to the initial round of grants in early 2008. Mineral Projects (Planned)

The RVD Program provides funding assistance to companies Austpac Resources NL (RVD Grant: A$14,000) will undertake a to encourage exploration in greenfields areas and to promote series of 14 aircore holes, each 75m deep, in the Delamerian Fold innovative drilling programs and testing of new geological models Belt to explore for copper and gold south of Horsham in western in areas that may be seen as either higher risk or having limited Victoria. The program is expected to commence in December 2010. prospectivity. The exploration generates new geoscience insights BCD Metals Pty Ltd (RVD Grant: A$66,000) is undertaking that can be used by DPI to better understand Victoria’s geology a program of two 300m diamond holes (with RC collar) in the and prospectivity. Stawell Belt to explore for gold southwest of Ararat in western Victoria. The project, which follows on from successes in rounds one and two, is expected to be completed in late 2010. BCD Mineral Projects (Completed) Metals is a subsidiary of Melbourne-based BCD Resources which has recently announced merger plans with Bendigo Mining Ltd. Two companies have successfully completed their Round 3 drilling programs in northern Victoria and have submitted Final DMS Pty Ltd (RVD Grant: A$50,000) is undertaking to drill a Drilling Reports to GSV. series of 42 aircore holes in the Stawell Corridor as part of a project to explore for gold between Horsham and St Arnaud Providence Gold & Minerals (RVD Grant: A$70,000) in western Victoria. The program will be conducted from mid- completed 66 aircore holes for a total of 7000m of drilling in the September 2010. to explore for gold in the Mitiamo area, north of Navarre Discovery No 1. Pty Ltd (RVD Grant: A$17,000) is Bendigo. Providence reported anomalous gold in 10 holes, with a planning to drill eight holes in the Dimboola Arc (total 1200m) to very promising basement intersection of 6m returning 29g/t gold. explore for copper-gold-nickel in the Horsham region, western The gold is coarse, likely of the Bendigo style, and contained Victoria. The drilling component is expected to commence in within quartz in the basement Ordovician rocks, under some 30 to October 2010 for a period of two weeks. 120 metres of sand/clay cover. Oscar Mining (RVD Grant: A$24,250) completed its “first-pass” Geothermal Projects drill test program of 17 aircore holes totalling 2400m of drilling in the Terrick East region, west of Echuca. Earth Solar Power Pty Ltd (RVD Grants: A$60,000 Dart Mining Pty Ltd (RVD Grant: A$80,000) has recently (Geothermal Exploration Permit 21), A$30,000 (GEP 14), completed drilling to a target depth of 700m on the second of two A$30,000 (GEP22)) is anticipating commencement on three diamond holes on the Mount Unicom Porphyry Mo-Au-Cu Project. RVD projects across northern Victoria in the Oct-Dec quarter. The drilling program in the Corryong district of northeast Victoria, The company has been conducting extensive community liaison returned multiple mineralised sections with very promising results. and stakeholder engagement programs as part of their overall Dart is conducting additional drilling to further define the target. exploration approach. Earth Solar Power is currently negotiating with landholders to confirm drill sites. Torrens Energy Ltd has deferred its shallow drilling program in Mineral Projects (in progress) GEP 5 at this stage and is no longer eligible for an RVD grant. Goldsearch Ltd (RVD Grant: A$80,000) has drilled the first Granite Power Pty Ltd (RVD Grant: A$32,500) is planning a of two diamond holes to 198m on targets in their Long Ridge 400m hole to investigate basal heatflow for potential Engineered Project. The total drilling is expected to reach 550m. Technical Geothermal System (EGS) resources in GEP 11. It is anticipated difficulties led to suspension of drilling in late April. Drilling is that drilling will commence in November, 2010. expected to re-commence in mid-October/November, 2010.

For more information contact David Gallus Project Manager Rediscover Victoria Drilling Department of Primary Industries Telephone: 03 9658 4536 Email: [email protected] 8 DISCOVERY JOURNAL OCTOBER 2010 Minotaur Exploration Ltd

Minotaur on the hunt for new minerals in Victoria

Successful South Australian minerals explorer Minotaur Exploration Ltd has joined the hunt for new base metals discoveries in Victoria.

Best known for its discovery of the big Prominent Hill copper/gold deposit in SA’s far north (now owned by Melbourne-based OZ Minerals Ltd), Minotaur was the successful applicant for the Rochester Tender Application Area (RTAA). The award was announced by Energy and Resources Minister Peter Batchelor at the Victoria Resources Above: Drilling at Cowra. Paydirt Conference. The RTAA covers 479 square kilometres in central Victoria, centred Minotaur plans an extensive investigation of the area for VHMS- on the town of Rochester, about 200 kilometres north of Melbourne. style mineralisation, including priority work around the new target, It stretches between Rochester in the north and Colbinabbin in the and along more than 20 kilometres of strike extent of the volcanic belt south, and between Elmore in the west and Stanhope in the east. under cover. “This area has a strong The company’s planned work history in successful gold Minotaur is an active explorer. mining and this tender is program will Before its move in to Victoria, it had an exciting step towards include ground the discovery of further geophysical active programs in , deposits, which could drive surveys, soil Queensland, NSW and Nova Scotia. sampling and job creation and investment It is best known for the discovery in the region,” Mr Batchelor drill testing of of the Prominent Hill copper/gold said. conductive The RTAA covers a targets. deposit in 2001. major portion of the The company Heathcote greenstone belt, said that along a geophysically distinctive with another Above: Portable XRF at Cowra. band of volcanic rocks and application (Dookie) over similar greenstones north-west of sediments in central Victoria that host copper, lead, zinc and silver Shepparton, the award of the Rochester RTAA “marks a significant occurrences indicative of a style of mineralisation known as Volcanic entry by Minotaur Exploration in to Victoria and this is expected to be Hosted Massive Sulphide (VHMS). supplemented with additional opportunities as these are identified.” Remote sensing work as part of the Department of Primary Minotaur is an active explorer. Before its move in to Victoria, it had Industries’ “Gold Undercover” initiative identified a significant bedrock active programs in South Australia, Queensland, NSW and Nova anomaly on the southern portion of the Heathcote greenstone belt, Scotia. It is best known for the discovery of the Prominent Hill copper/ south of Rochester. gold deposit in 2001. The remote sensing work involved a helicopter-borne Versatile Time OZ Minerals acquired the project in 2005 and spent more than Domain Electromagnetic (VTEM) survey along a number of traverses $1.1 billion to bring it into production. Prominent Hill is 650 kilometres coincident with deep seismic reflection profiles north of the Stawell, north-west of and 130 kilometres south-east of the opal Ballarat and Bendigo goldfields. mining town of Coober Pedy. Minotaur told the stock exchange that a “significant” conductive FOR MORE INFORMATION: bedrock anomaly is present in the VTEM data, closely correlated with Andrew Woskett Heathcote greenstone belt volcanics. Managing Director Minotaur Exploration Ltd Telephone: 08 8366 6000 “This conductive feature has been confirmed by a preliminary Email: [email protected] ground electromagnetic (EM) survey and remains untested,” Website:www.minotaurexploration.com.au Minotaur said. 9 The $240 million expansion involved the development of the Kulwin mine, 28km east of Ouyen. Kulwin is the first of Iluka’s northern deposits in the Murray Basin to be developed, Iluka Resources with its heavy mineral concentrates (HMC) sent to Iluka’s mineral separation plant (MSP) at Hamilton for further processing. Future developments in the northern part of Iluka Resources to the Murray Basin will involve the WRP cluster of deposits (Woornack, Rownack and Pirro), reap the benefits of located 20 kilometres south east of Ouyen. The Kulwin HMC feed supplements that Western Victoria available from Iluka’s Douglas operations, in the southern part of the Murray Basin and Leading mineral sands producer Iluka Resources is poised 90km north of Hamilton. to reap the benefits of its heavy investment in switching its Mr Wickham said that Kulwin has now met production base from ageing Western Australian operations to nameplate capacity. The Kulwin operations Victoria’s Murray Basin and South Australia’s Eucla Basin. access the first of several long strand-like deposits found in the northern part of Victoria Completion of the investment program comes as Iluka forecasts and across the border in . that mineral sands demand will continue to recover from the The equipment on site, including the depressed levels of the global financial crisis. mining unit plant, is designed to be relocated Steve Wickham, recently appointed General Manager, Eastern and along the orebody as it is progressively Western Operations for Iluka, told the Resources Victoria Conference mined. Other equipment on site, including that Iluka’s view was that industry characteristics are moving in favour the pre-concentrator and wet concentrator of high quality and reliable mineral sand suppliers. plant is modular in design, allowing Iluka to disassemble and relocate it to future ore deposits in the area. The company operates a drive-in-drive out operation at Kulwin, with a large proportion of the workforce drawn from the local area. The Kulwin deposit itself is 12 kilometres in length, has an ore width of up to 100 metres and an average depth thickness of 4 metres. Mining is planned to occur at Kulwin to the end of 2011 before relocation to the WRP deposits. Above: Kulwin Mine. Heavy mineral concentrate produced at Kulwin is sent by truck in B-doubles 360 kilometres to the Hamilton Above: Kulwin mobile mining unit. MSP. Iluka is also drawing zircon rich feed source from a satellite Previously responsible for Iluka’s WA operations, Mr Wickham now mining operation, Echo, located closer to Douglas. also has responsibility for Iluka’s operations in the Murray Basin and The Douglas mining operations, 90 kilometres from Hamilton, have the Jacinth-Ambrosia project in the Eucla Basin. been mined since late 2006. The Hamilton MSP was upgraded as He has recently relocated to Iluka’s Adelaide office as it offers a part of the total project expenditure to expand capacity to handle the more central location for access to the Victorian and South Australian additional feed source from the northern deposits. operations. The MSP has a throughput of 80 tonnes of HMC per hour or Iluka’s Victorian operations, along with Jacinth/Ambrosia, now approximately 700,000 tonnes annually. Final product is shipped from contribute 80-90 per cent of Iluka’s production of the highest value Portland, with some container material also sent to Melbourne for products in the mineral sands mix - zircon and rutile. export. The Murray Basin is a long life, rutile-dominated province, with a The Murray Basin’s status as a core component of strong associated Iluka’s operations and global supply chain has been zircon production stream, especially cemented in recent times with the completion by from the southern Iluka of its Murray Basin Stage 2 expansion. deposits. Iluka’s current mine plans entail mining and processing operations until at least 2023.

Above: Truck loading at Kulwin. 10 DISCOVERY JOURNAL OCTOBER 2010 The Murray Basin is a long life, rutile- dominated province, with a strong associated zircon production stream, especially from the southern deposits. Iluka’s current mine plans entail mining and processing operations until at least 2023. Above: Kulwin Mine. The greatly improved outlook for mineral sands forecast by Iluka was reflected in the group’s production report for the June quarter. Production of Iluka’s mineral sands products increased sharply in the June 2010 quarter compared with the preceding March quarter. The initial contributions from Iluka’s two new operations (Jacinth-Ambrosia and Murray Basin Stage 2), and the ramping back up of Virginia production in the United States, allowed Iluka to respond to the demand recovery for all of its mineral sands products. The Murray Basin Stage 2 operation achieved targeted production rates, underpinning higher June 2010 quarter zircon production of 37,900 tonnes, an increase of 58 per cent on the preceding March quarter.

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

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

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

Mr Hanson said that the “strategic vision” for the merged group was to build a profitable mid-tier gold mining business. Above: Underground drilling at Henty. “We plan to discover, operate and acquire quality 9 grams a tonne silver. By spending $1 million on exploration over assets to transform the company in to a 500,000 four years, BCD was earning a 75 per cent interest in the project. ounce a year producer.” The Stavely project has focused on a number of gold and copper prospects, especially along strike from the Thursdays Gossan “The merger is an important step towards achieving our vision,” supergene copper deposit, which has an inferred resource of 10.6 Mr Hanson said. million tonnes grading 0.45 per cent copper. High grade primary It is intended that the Bendigo board of directors will continue to copper mineralisation was also intersected beneath the supergene be led by Peter McCarthy as non-Executive Chairman and that Mr copper mineralisation of Thursdays Gossan. Hanson will remain as Managing Director and Chief Executive Officer. Mr Hanson said that the copper assets would be held by the It is a feature of the merged group that it will have a strong balance merged group, certainly in the shorter term. “It’s in our part of the sheet. At June 30, Bendigo was holding $57 million in cash and BCD world and it’s got a gold component to it as well.” about $8 million. Mr Hanson said the merged group would look to advance the BCD’s Chairman Denis Clarke said that the merger made sound projects in the near term. Longer term, it could look to either find a strategic sense. “It will facilitate the unlocking of value in the Tasmania joint venture partner to pick up the pace of work, or possibly spin mine as well as facilitating aggressive exploration programs at the the assets off into a new company. existing gold operations and exciting exploration projects to enable the combined entity to capitalise on continued strong gold markets,” For more information contact Dr Clarke said. Rod Hanson Managing Director, Bendigo Mining Ltd Telephone: 03 5447 1834 Email: [email protected] Website: www.bendigomining.com.au 12 DISCOVERY JOURNAL OCTOBER 2010 Mining engineer Rod Hanson, Managing Director and Chief Executive Officer of the expanding Bendigo Mining Ltd, is one of Australia’s best known mining executives.

Rod Hanson MD and CEO, Bendigo Mining Ltd

If the former Sydney-sider is not being diversified resources group Elders stopped for a chat in the streets of his Resources NZFP, and General Manager adopted home base of Bendigo, he is Operations for the multi-mine gold getting pulled up by mining-industry producer Plutonic Resources. types for a chin-wag on industry matters. While Elders Resources NZFP had overseas production and exploration The latter was certainly the case at interests (Papua New Guinea and New the Resources Victoria Conference in Zealand), it was Mr Hanson’s position as EXECUTIVE PROFILE July, and again in August at Kalgoorlie’s General Manager of the Gold Ridge mine Diggers & Dealers conference where in the Solomon Islands with Ross Mining/ Mr Hanson was on hand to update Delta Gold and later General Manager He joined Bendigo Mining as Chief delegates on Bendigo Mining’s for Sino Gold at the Jianchaling Mine in Operating Officer in January 2005, the merger with Tasmanian gold Shaanxi Province, China, that gave him year before the new process plant was producer, BCD Resources NL. the international experience and outlook commissioned. The merger with BCD will bring he was seeking. When senior management changes three mines together under the Mr Hanson’s time in the Solomons were made in January 2007 in response Bendigo Mining banner – Kangaroo (1999-2001) was certainly an experience. to the grade estimation issues in the mine Flat (Bendigo), Henty (Tasmania) Based in Honiara and responsible for leading to gold production shortfalls, and the Tasmania mine at the management of the 120,000 ounce- Mr Hanson was appointed to the position Beaconsfield (Tasmania). a-year Gold Ridge mine on the island of of managing director and CEO. The deal with BCD is another step Guadalcanal, Mr Hanson had to contend His task was to lead Bendigo Mining’s in plans by Mr Hanson to establish with the escalation of political violence new strategy, one which involved Bendigo Mining as a profitable mid- and lawlessness at the mine and in production being deferred so the focus tier gold producer. The company’s Honiara. could be on exploration/development to stragtegy is to grow annual gold In June 2000 operations at Gold Ridge build reserves in more productive areas production to 500,000 ounces a were suspended and all expatriate of the goldfield. year through discovering, operating employees were evacuated. That meant Kangaroo Flat was returned to and acquiring quality assets. a desk job for Mr Hanson in Sydney production in 2008 as a profitable As much as he is well-known in and the task – successfully achieved operation and has posted steady the industry, Mr Hanson is also one – of extracting a $70 million insurance production for the last two years of the most experienced and well settlement from the project’s political risk (36,927 ounces in the 2009 travelled. insurer. financial year and 36,649 ounces in He now has more than 35 years’ By November 2002 Mr Hanson found the 2010 financial year). experience in mine development, himself in China as resident manager at Like any of the other mines and exotic operations, project evaluation and Sino Gold’s Jianchaling mine, considered locations that Mr Hanson has worked, corporate management roles, mainly in something of a showpiece in the Bendigo is not without its challenges. But gold and base metals, but with a bit of burgeoning Chinese gold industry. operating an underground mine in an NSW coal experience thrown in for good He told Discovery the move occured urban environment has its benefits too. measure. as he “had heard a lot about China ‘’Obviously there are particular Mr Hanson’s earliest involvement in the and wanted to see what it was like.’’ He challenges working in an area of high mining industry was as an underground stayed for two years as the resident mine population density, but generally the labourer in the CSA copper/gold mine at manager at Jianchaling. positives such as a motivated and Cobar in NSW in 1972. It was not long The mine was a high grade, narrow- highly-skilled workforce and a supportive before he became a mechanical miner vein underground operation producing regulatory environment more than “in training”. about 80,000 ounces of gold. The compensate,’’ Mr Hanson said. Then it was off to the west coast of workforce numbered about 400, of which Tasmania as a young mining engineer about 390 were Chinese nationals and For more information contact for a 7-year stint with EZ Company of the balance expatriates. Rod Hanson Australasia. Numerous moves up the Mr Hanson found it all a fascinating Managing Director ranks lead Mr Hanson to the role of experience. But the work regime of six Bendigo Mining Ltd Underground Manager at the Rosebery Telephone: 03 5447 1834 weeks on site, 2 weeks off, on a fly-in, fly- Email: [email protected] base and precious metals mine. out roster became too grueling, and the Website: www.bendigomining.com.au Subsequent roles included project decision was made to come “home”. evaluation and development with the 13 Right: Underground truck exiting the Ellesmere Portal at Fosterville Gold Mine Below: Hand lens and drill core from Northgate’s Stawell operation.

The underground ore production shortfall necessitated the processing of a substantial quantity of low-grade stockpiled oxide ore in order to keep the mill operating at capacity and resulted in production of 14,832 ounces of gold, compared with 20,066 ounces Northgate Minerals Corporation in the previous corresponding period of last year. The net cash cost of production at Stawell was significantly higher at US$1,069 an ounce of gold, compared with US$608 an ounce in the same period in 2009. For the balance of 2010, Stawell’s cash cost Northgate keeps is forecast to be lower at US$745 an ounce of gold. “Issues arising in the second quarter have since been addressed,” pouring Victorian gold Mr Stowe said. “A recovery plan has been implemented to bring production back to its normal run rate of approximately 25,000 ounces a quarter, which includes development in the new GG6 mining zone, with a significantly higher average reserve grade of Victoria’s biggest gold mine, the Fosterville operation near 6.3 grams of gold a tonne.” Bendigo, has become a star performer for Canadian based Northgate Minerals Corporation. The company acquired the mine in early 2008 and has invested heavily in improving its performance.

Northgate is now reaping the rewards, with Fosterville achieving record production and an attractive cost base in the June 2010 quarter. During the June quarter a record 218,259 tonnes of ore was mined and the milling rate increased to 205,094 tonnes at a grade of 4.97 grams of gold a tonne, up from 4.54 g/tonne in the previous corresponding period. Gold production in the June quarter at Fosterville was a record 28,476 ounces, about 2,000 ounces higher than the previous record “Also, a program of increased drill information prior to extraction set in the fourth quarter of 2009. The strong showing at Fosterville has been implemented, as well as deferred mining in the more was reflected in its record cash flow generation for the period of challenging extremities of the ore zones. Production for the second US$14.1 million. half of the year is now forecast to be 44,000 ounces of gold and full The average net cash cost of production for the second quarter year production has been revised to 81,000 ounces,”he said. of 2010 was US$669 an ounce, which was in line with forecast and Exploration continues to be a major focus for Northgate. slightly lower than the US$679 an ounce recorded in the previous At Fosterville in the June quarter, four drill rigs completed 15,000 quarter. metres of drilling, focusing on resource-to-reserve conversion on “Cash costs in the most recent quarter were an excellent three target areas - Harrier Underground North, accessible resource achievement, despite the dramatic increase in the areas within the Harrier Decline and the Phoenix Extension. relative to the US dollar, which averaged over 16 per cent higher in Also during the quarter, geophysical and geochemical surveys the most recent quarter,” were undertaken in the region surrounding the mine lease to identify the company reported. drill targets for the second half of the year. Gold production in the June For (calendar) 2010, At Stawell, two drill rigs completed 3,110 metres of drilling on a quarter at Fosterville was a Fosterville is expected to number of targets, both on the mine lease and in the general district. record 28,476 ounces, about produce 105,000 ounces Northgate said that the two main mine lease targets currently being of gold at a net cash cost tested are the Northgate Gift and Wonga Gift Deeps. 2,000 ounces higher than the of US$690 an ounce, down “The Northgate Gift is a postulated offset of the Golden Gift deposit previous record set in the slightly from the previous below and north of the Golden Gift along the Wildcat Porphyry, a dyke fourth quarter of 2009. estimate as a result of small that fills a post mineralisation structure. During the quarter, the hole changes in the mine plan for progressed 1,320 metres and is nearing its target,” Northgate told the the balance of the year. Canadian market in early August. Northgate’s President and Chief Executive Officer enK Stowe It said the Wonga Gift Deeps drilling is targeting a postulated basalt was not able to report a similar strong showing at Northgate’s other dome that has been confirmed by geophysical surveys. Victorian gold mine at Stawell. Drilling started at the end of the June quarter. He said that Stawell’s performance in the June quarter was impacted upon by challenges presented by “complex geology in FOR MORE INFORMATION: the orebody and poor reserve performance.” That necessitated the Luc Guimond Northgate Minerals Corp unplanned processing of marginal grade ore, hitting gold production Telephone: +61 03 5442 7755 for the period. Fax: +61 03 5442 3955

14 DISCOVERY JOURNAL OCTOBER 2010 “Cash costs in the most recent quarter were an excellent achievement, despite the dramatic increase in the Australian dollar relative to the US dollar, which averaged over 16 per cent higher in the most recent quarter”

15 Castlemaine Goldfields Ltd

Exploration success at Ballarat after Castlemaine acquisition

Exploration success has spurred on planning for a resumption of gold production at the Ballarat gold project by its new owner, Castlemaine Goldfields Ltd (CGT).

CGT acquired the project from Lihir Gold in May 2010 for the price of $4.5 million, plus a 2.5% royalty on future production, capped at $50 million. Lihir worked for three years on mine development and surface processing facilities in an effort to establish the project as a 250,000 ounce-a-year gold producer. When it became clear it would not be able to achieve the rate as planned, Lihir put the project up for sale. Then Managing Director Gary Scanlan told investors in CGT’s update to the stock exchange in late July that CGT “could not have wished for a more encouraging and exciting first two months at Ballarat.” CGT’s plan is to return the project to production at a targeted annual rate of about 50,000 ounces a year. Its Victorian gold ambitions do not stop there, with CGT tipping that a similar rate of gold production could follow a year later from its namesake Castlemaine goldfield. “Substantial synergies will be gained from combining the Ballarat project with existing Central Victorian projects (Castlemaine, Tarnagulla and Sebastian),” the company said. The company’s exploration/ goldfield in a $3 million exploration program. development plans for the Mr Scanlan said that it would be at the end of the nine month Ballarat project are well funded, exploration program that CGT would decide upon recommencing with a placement of shares to mine development and production. Mr. Gary Scanlan said “The initial institutions and sophisticated results for the drilling program, expected to take 9 months, have investors raising $30 million. already vindicated the acquisition of the Ballarat mine. Ownership of the project was This drilling has now confirmed the northern extension of the Mako transferred to CGT, occurring Fault Zone within Llanberris and most excitingly has indicated the on May 7. The underground target zone in the adjacent Britannia geological compartment may mine and existing surface not have been displaced to a greater depth as first postulated. facilities – including a 600,000 The exploration program is ahead of schedule at this time, work on tonne-a-year processing facility identifying surplus assets is well advanced with discussions with a

Above: Part of the state of the art gold treatment plant. – has been kept on a “care number of parties indicating that significant cash will be realised from and maintenance” basis while sales and the transition of ownership has occurred without incident or CGT conducts in-mine exploration to support its gold production surprise”. resumption plans. “It was this northern area containing the Llanberris and Britannia A group of 14 direct employees are on site for the ongoing mine, compartments which were the focus of initial modern mining efforts in mill and infrastructure maintenance, along with exploration drilling. the late 1980’s-early 1990’s and again renewed since 2003.” The number of employees increases to 33 people when contract Mr Scanlan said in the July update to the stock exchange that drilling and other contractors are included. the previous mining development at Ballarat saw both decline mine Underpinning the resumption plans is a decision by CGT to target drives stop just within the northern compartments and less than the potential of the northern “compartments” on the Ballarat East 200 metres from the discovered mineralisation.

16 DISCOVERY JOURNAL OCTOBER 2010 Assets and infrastructure to be acquired by CGT include 18km of underground development, a 600,000 tonnes-a-year processing plant, the Golden Point ventilation shaft and extensive surface buildings, plant and equipment.

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

Above: Ariel view of the surface operations, with the tails storage facility and wetlands in the foreground. The mine offices, gold treatment plant and the workshops are in the background. He also said that previous resource estimates for Ballarat East Chewton/Wattle Gully (CWG), Quartz Hill and Cappers targets along the recognised that the main target area lies to the north of the field central corridor of the goldfield. where CGT is now exploring. It said that success at shallow targets at South Wattle Gully within “The surface projections of these targets correspond to the largest CWG could result in access from within the Wattle Gully mining lease. and most prolific original alluvial workings, and lie beneath the “Development would be via an initial 700 metre exploration decline into highest concentration of historic underground gold production.” the South Wattle Gully mineralisation which could be readily drilled as the Since acquiring the Ballarat project, CGT has conducted diamond development progressed to depth,” the company said. drilling from underground to test the northern zones. A total of 19 It continued that indications to date are that such a discovery scenario holes for 4,755 metres were completed by the end of June. would yield the earliest gold production and cash flow from within the CGT said the drilling indicated that the Lower Llanberris Mako Castlemaine goldfield. “It is also then the fastest and most cost effective Fault Zone (MFZ) mineralisation, first intersected in 1985 and further path to mining the deeper Chewton resource.” defined by Lihir in 2008/09, has an additional 100 metres of northern Drilling has also resumed at Tarnagulla, where historic high-grade strike. production yielded 700,000 ounces of gold. Studies by CGT have Gold production is expected to initially come from the MFZ within revealed the potential for the broader region to contain at least 82 the Llanberris compartment and could be followed by the adjacent gold-bearing quartz reefs. Britannia compartment, which has only been lightly drilled from surface positions in the past. FOR MORE INFORMATION: Drilling by CGT has found gold mineralisation in the Britannia Matthew Gill Managing Director & CEO Castlemaine Goldfields Ltd compartment associated with west-dipping faults and quartz veining Telephone: 03 5327 2555 interpreted to be the displaced northern extensions of the MFZ. Email: [email protected] CGT’s original mainstay project at Castlemaine has not suffered Website: www.cgt.net.au as a result of the Ballarat acquisition. A new round of drilling is underway and aims to increase the existing 686,000 ounce Inferred gold resource with other discoveries CGT’s main focus is to drill the 17 Right: Roughnecks on the drill floor adding drill pipe.

3D Oil Ltd “I believe that once we get this project underway what will follow will be a number of tie-ins to other oil developments. We plan to go from strength to strength in Bass Strait.” 3D Oil Ltd aims at “I see West Seahorse as very much a starter project for the company,” Mr Newell continued. “We’ve assembled a team that knows Bass Bass Strait production Strait really well. Arguably we know Bass Strait as well as anyone,” Mr Newell told Discovery. He himself has 30 years’ experience in Bass Strait, starting with a stint with BHP Billiton’s petroleum Melbourne-based 3D Oil Ltd is continuing its march towards unit in 1981. becoming a Bass Strait oil producer from its West Seahorse 3D is the operator and 100 per cent holder of oilfield in VIC/P57. VIC/P57 and T/41P in the Bass Basin. 3D reports that the West Seahorse field has proved and The company, which joined the Australian Securities Exchange probable reserves of 5.3 million barrels, with an (ASX) in May 2007 after its earlier formation in July 2003, views the additional 3.4 million barrels in the contingent development of West Seahorse as a stepping stone to bigger things resource category. in Bass Strait (Gippsland Basin), and its Bass Basin permit offshore The permit is also home to the Sea Lion Tasmania. prospect, 7 kilometres to the north-west. An oil In an update on its plans lodged with the ASX, 3D said that discovery at the prospect could potentially be engineering and design work on the planned West Seahorse developed as a “tie-in” to the West Seahorse development by energy and resource engineering firm WorleyParsons development. 3D has said that Sea Lion has Ltd was expected be completed by the fourth quarter of 2010. a “prospective resource” best estimate of 20 The basic development million barrels. concept is a sub-sea The permit also contains the potentially bigger completion in shallow Felix prospect, currently rated as a “prospective water, tied back to an oil resource” of up to 100 million barrels of stabilisation plant onshore recoverable oil. (a distance of about 14 In the August update, 3D said that quotations kilometres) using flexible for flexible steel pipeline and installation tubing. options, including the shore crossing, had been Completion of that work obtained. comes as 3D continues a “The company has met with Federal (NOPSA) formal process of seeking a and Victorian (DPI) authorities to clarify the partner for its VIC/P57 permit. Above: Roughnecks make a connection. approval requirements for the project and pipelines,” it said. The company said it was continuing to “progress On the exploration front in VIC/P57, 3D is discussions with a number of overseas companies also stepping up activity after what it said was a interested in both the development of the West Seahorse comprehensive review of the Sea Lion and Felix oilfield and the highly prospective exploration potential prospects, and further assessment of the other of VIC/P57.” prospects and leads in the permit. It has tendered for state-of-the-art But 3D said it was not going to rush the process. “The company reprocessing of seismic data from the 750 will continue to take the time necessary to ensure a strategic square kilometre “Northern Fields” program. alignment with the right partner, and to do so on appropriate terms The reprocessing started in August and has that reflect the underlying value of the asset and which allows the aim of improving the “imaging of prospective the company to grow and provide a positive result for existing deeper levels, enabling much better definition of shareholders.” additional drilling targets, including those beneath currently identified Managing Director of 3D Noel Newell told Discovery that the prospects.” company was excited about its plan to become the next offshore oil “The benefits of such reprocessing along the Gippsland Basin’s producer in Victoria. He said that after completion of the engineering northern margin have most recently been demonstrated by the and design study in the fourth quarter of 2010, 3D hoped to be in a success of the South East Remora-1 well earlier this year,” 3D said. position to make a final investment decision on the development. The South East Remora discovery was made by the Esso/BHP A capital cost of about $US80 million is expected. Billiton partnership in Bass Strait. The oil and gas find is close to their existing Marlin A platform.

18 DISCOVERY JOURNAL OCTOBER 2010 3D is the operator and 100 per cent holder of VIC/P57 in the Gippsland basin, and T/41P in the Bass Basin. 3D reports that the West Seahorse field has proved and probable reserves of 5.3 million barrels, with an additional 3.4 million barrels in the contingent resource category.

In the Bass Basin offshore Tasmania, 3D has also re-tendered the last year and early in 2010 in the Bass Basin have encouraged other 250 square kilometre Dalrymple seismic survey, which was meant to Bass Basin explorers. have been undertaken last summer. “The expected acquisition period 3D has identified at least 15 leads to date in T41-P. Some are said is late December to early 2011, to coincide with the preferred weather to have similarities (amplitude anomalies) to the Trefoil find. window and avoidance of marine mammal migration periods,” 3D said. FOR MORE INFORMATION: Just as the Esso/BHP Billiton South East Remora discovery buoyed Noel Newell Managing Director, 3D Oil Ltd oil explorers in adjacent permits in Bass Strait, the recent Trefoil (gas) Telephone: +61 3 9650 9866 and Rockhopper (oil/gas) finds by an -led consortium Fax: +61 3 9639 1960 Email: [email protected] 19 Below: Lakes Oil’s Petroelum Retention Lease 2, The artificial stimulation of oil and gas wells has long been onshore Gippsland Basin, Victoria, showing the location of Lakes’ main tight gas fields and prospect practised in the United States. Technology breakthroughs there areas in relation to the Bass Strait oil (green) and gas (red) pipelines that cross the lease as well as have unlocked huge oil and gas reservoirs previously thought to be other infrastructure elements, such as the Alinta uneconomic to produce from compared with hydrocarbons produced Gas Hub near Longford. from so-called conventional or free-flowing wells. Below right: Wombat Field Operations: coiled tubing unit workover operations post-refracture “The commerciality of our Wombat field is based on results from stimulation treatment of tight gas zone in Wombat 2, June 2009. all our wells within the Strzelecki group that have encountered gas in multiple zones,” Mr Annells said. Beach Energy / Lakes Oil “We see this project as part of a much wider play, which could result in a new Victorian energy asset which no doubt encouraged Beach to join with us in this exciting new onshore resource.” Beach Managing Director Reg Nelson said that the agreement with Lakes gave Beach the opportunity to test unconventional reservoir Beach Energy farms into petroleum production and development technology developed in the United States in recent years. Lakes Oil onshore project He said that Beach already holds a major land position in unconventional gas (including shale gas) in South Australia’s onshore Cooper Basin. “We expect that Beach’s activities in shale and other unconventional opportunities in Australia will step up significantly, with an accelerated program now being considered for the Cooper Basin and this significant program in the onshore Gippsland, close to markets in Victoria,” Mr Nelson said. He noted that the Gippsland Basin is one of Australia’s most prolific hydrocarbon basins, with more than 4 billion barrels of oil and 7 trillion cubic feet of gas produced since 1969 – all of it from the offshore portion, more commonly referred to as the Bass Strait oil and gas fields. “Whilst all of production has occurred from offshore oil and gas fields, the presence of hydrocarbons onshore, notably PRL2, is proven and awaiting the development and application of the correct technology to commercialise these resources,” Mr Nelson said. Lakes Oil NL’s “tight” gas discoveries in the onshore Gippsland The Wombat field in PRL 2 has been the subject of a number of Basin near Sale in Victoria have attracted a $50 million deal tests by Lakes in the past. from the Adelaide-based oil gas producer, Beach Energy. Lakes reports that short-term tests on the Wombat-1, 2 and 3 wells have realised combined flows of up to two million standard cubic The deal with Beach follows more than 20 years of drilling and feet a day from zones within the 1,000 metre thick Strzelecki Group testing by Lakes in the onshore portion of the basin, better known for formation. the oil and gas fields of the ExxonMobil/BHP Billiton partnership in the Following the drilling of Wombat 4, the Wombat field has been offshore waters. independently estimated by Gaffney, Cline and Associates to contain Lakes has spent more than $50 million to show that there is oil and a 2C contingent gas gas to be discovered in the onshore part of the basin. resource (“Development Executive Chairman Rob Annells has always believed that Lakes Pending/Uncertain”) of 329 would commercialise a discovery in the Wombat field (in PRL 2) and BCF and a P50 contingent now with the help of Beach, the location could produce enough gas resource of gas-initially-in- to be sent to Melbourne or nearby power stations through existing place resource of 787 BCF. pipelines. The Trifon and Boundary Under the agreement, Beach can earn up to 50 per cent of PRL 2 Creek gas discoveries, also under a two stage entry with a total cost to Beach of $50 million. in PRL2, are said to ‘confirm As operator, Beach will fund the $10 million cost of conducting flow the high prospectivity of this and fracture tests (Stage 1) in the previously drilled Wombat 4 and onshore area.’ Boundary Creek wells. Lakes told the stock Beach’s Stage 2 expenditure of $40 million will secure the company exchange on 10 August a half interest in PRL 2, which matches Lakes investment of more 2010 that the agreement with Beach is now unconditional and that it than $50 million in the area. is looking forward to the upcoming operations in PRL 2. Unlike the free flowing wells found in offshore reservoirs, the The expected forward work program involves plans to re-enter the reservoirs in the onshore part of the Gippsland Basin need stimulation Wombat 4 and Boundary Creek 2 wells and fracture stimulate several by expensive “fraccing”, where special gas or fluids are forced down of the best zones later this year, pending equipment availability and the well at extremely high pressures to release trapped gas or oil from receipt of the necessary approvals. various levels. “Beach’s interest has reinforced our commitment in using tight gas FOR MORE INFORMATION: Rob Annells technology in Victoria,” Mr Annells said. Executive Chairman, Lakes Oil NL Telephone: 03 9629 1566 Email: [email protected] Website: www.lakesoil.com.au 20 DISCOVERY JOURNAL OCTOBER 2010 Providence Gold and Minerals

New Gold discovery under cover north of Bendigo

A new gold discovery has been made under farm paddocks to the north of Bendigo, hidden by geologically young sediments which mask the prospective rocks.

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

21 2010 SUMMARY

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

Above: Minister Peter Batchelor opens Resources Victoria Conference 2010.

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

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

Mr Batchelor told the delegates that Victoria’s emerging “Increasing energy demand is driving growth and our efforts to geothermal energy potential was an exciting example of the new sorts tackle climate change are also driving new uses for some resources – of technology that the State had at its disposal to build a sustainable including our significant brown coal resources,” he continued. energy future. “Already investigations are underway into converting coal into He said that new capital investment of more than $30 billion was fertiliser, liquid fuels, and other carbon based products.” expected to be made in new energy resources based projects over “That’s why we have worked hard to assist and stimulate the coming decades. investment so that the industry can continue to grow,” he said. “This enormous capital program includes major new gas projects, He noted that capital expenditure in Victoria on earth resources new non-power coal based developments and major new power projects over the past three years was more than $5.4 billion, generation facilities.” principally from petroleum coal and mineral sands projects.

From top: Xxxxxx

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ExxonMobil Jabiru Metals

Craig Haymes Gary Comb Production Operations Manager, ExxonMobil Australia Managing Director

Safe workplace the key Stockman base metals project The importance of maintaining a safe workplace was the key theme in an address to the conference by ExxonMobil Jabiru Metals Ltd has been busy working towards Australia’s Production Operations Manager Craig Haymes. delivering Victoria a base metals mine at its Stockman base metals project in north-eastern Victoria. “We do not believe that anything less than zero injuries is an acceptable vision for a “safe” workplace. Our target is Nobody Managing Director Gary Comb told the conference that the Gets Hurt,” Mr Haymes told delegates. project was being advanced on three parallel levels: expanding But he also admitted that the company - operator of the Bass the resource base through exploration, embarking on the Strait oil and gas joint venture with BHP Billiton - encounters approvals process and undertaking feasibility work. “quite a degree of scepticism when people initially learn of this Better known for its success in with its target.” Jaguar/Bentley base metals project, Jabiru won a tender for the “There is a common belief that accidents happen and that exploration licence covering the Stockman project in May 2007 being safe means trying to minimise serious injuries. Overcoming by committing to spend $19.6 million over the first five years of this attitude is one of the challenges we face,” Mr Haymes said. ownership. “Our aim is to convince every individual working on our sites that Annual expenditure by Jabiru since it won the tender has been it is possible to operate a workplace where accidents do not running at the required annual rate of about $4 million. Stockman happen.” is 12 kilometres to the east of the township of Benambra. The “In order to operate without injuries, we adopt the approach project has two known deposits, the partly mined Wilga deposit that safety MUST come first in all we do. We approach safety with and the nearby Currawong deposit to the south which has not the same stringent discipline we would for any other engineering previously been mined. project,” Mr Haymes continued. Wilga’s September 2009 resource estimate was 3.3 million He said that the oil and gas exploration and production industry tonnes grading 2.4 per cent copper, 0.4 per cent lead, 4.9 per deals with volatile products, often under very high temperatures cent zinc and 30 grams of silver a tonne. Currawong’s September and pressures. It also tends to operate in some remote and 2009 estimate was 9.2 million tonnes grading 2 per cent copper, challenging environments, such as Bass Strait. 0.8 per cent lead, 4.2 per cent zinc and 41 grams of silver a “These conditions present a degree of risk and can be very tonne, as well as 1.1 g/tonne gold. unforgiving if mistakes occur,” Mr Haymes said. Like Jabiru’s WA operations, the Stockman deposits are of the But he also said that the industry’s disciplined and systematic volcanogenic massive sulphide (VMS) style. Elsewhere where approach to identifying, reducing and managing the risks was VMS deposits occur, they tend to do so in clusters, making the paying off. “Despite these risks, according to total recordable exploration hunt at Stockman a priority ahead of a commitment Injury rates per hours worked, our industry is one of the safest in being made to a development. Australia – safer even than the hospitality sector, and almost as safe as retail trade,” Mr Haymes said. FOR MORE INFORMATION CONTACT: Gary Comb Managing Director FOR MORE INFORMATION: Jabiru Metals Ltd Craig Haymes Telephone: +61 8 9426 8300 Production Operations Manager ExxonMobil Australia Email: [email protected] Telephone: 03 9270 3333 Website: www.jabirumetals.com.au Website: www.exxonmobil.com.au

24 DISCOVERY JOURNAL OCTOBER 2010 PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference

Iluka Resources Bass Strait Oil Company

Steve Wickham Andrew Adams General Manager, Eastern and Western Operations Managing Director

Murray Basin Bass Strait Oil looks mineral sands into the Windermere

The Murray Basin mineral sands operations of Iluka A joint venture led by Bass Strait Oil Company Ltd is Resources are central to the process of transforming IIuka preparing to undertake a modern-day assessment of the Resources Ltd’s base production from Western Australia to 1987 Windermere-1 oil discovery in PEP 167 in western Victoria and South Australia. Victoria’s onshore Otway Basin.

Steve Wickham, recently appointed General Manager, Eastern Processing of new 3D seismic survey data over the original and Western Operations for Iluka, told the Resources Victoria discovery is due to lead to a potential decision on drilling a new Conference that the Murray Basin Stage 2 project involved well on the find later this year. additional expenditure of $240 million to open up the first of the Managing Director Andrew Adams told the Resources mineral sands deposits in the northern part of the basin. Victoria Conference that the seismic survey also took in several The Victorian operations, along with Iluka’s Jacinth/Ambrosia surrounding leads that would make natural follow-up targets in project in South Australia, will, in the future, contribute 80 - 90 the event of success. per cent of Iluka’s production of the highest value products in the “If oil production is established at Windermere, we anticipate mineral sands mix - zircon and rutile. a relatively short development schedule and low capital and The first of the northern deposits developed in the Murray Basin operating costs, leading to robust project economics,” Mr Adams is Kulwin, 25 kilometres from Ouyen. Mr Wickham said that Kulwin said. has met nameplate capacity and is being ramped up to full “Potential resource estimates will be based on the new 3D production. Kulwin will supply heavy mineral concentrate (HMC) seismic, with the project offering substantial value upside for feed to Iluka’s mineral separation plant (MSP) at Hamilton, giving Bass.” the MSP two supply sources. In late 2009 the company struck a deal with Interra Resources The Kulwin operations will access the first of several long Ltd on PEP 167. Under the agreement, Interra undertook to fund strand-like deposits found in the northern part of Victoria and 100 per cent of seismic survey costs, up to a value of $1.75 across the border in New South Wales. million. Funding beyond that level was on a 50:50 basis. The Douglas mining operations, 90 kilometres from Hamilton, Interra is a Singapore-based exploration and production have been mined since late 2006 and constitute an additional company with onshore production in Indonesia and Myanmar. feed source, with the HMC blended on site at Hamilton before Interra’s entry in to the PEP 167 joint venture is the first time it has processing. become involved in oil exploration in Australia. Mr Wickham said that mineral sands demand has recovered When it was drilled in 1987, the Windermere 1 well recovered from the depressed levels of the global financial crisis. 32 barrels of oil during testing. Mr Adams told the conference that technical reviews suggest that there is good potential for FOR MORE INFORMATION: commercial flow rates to be achieved at the find. Robert Porter He said it was possible that drilling could occur in 2011, General Manager Investor Relations Telephone: + 61 3 9225 5481 pending results from the seismic survey. Website: www.iluka.com FOR MORE INFORMATION: Andrew Adams Managing Director Bass Strait Oil Company Ltd Telephone: +61 3 9927 3000 Email: [email protected] Website: www.bassoil.com.au

25 PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference

Greenearth Energy Heron Resources

Mark Miller Mathew Longworth Managing Director Managing Director

Geothermal plant aims Heron aims at gold at 3 year start up output from the A1

Greenearth Energy Ltd is working towards having its Heron Resources Ltd is working towards returning the demonstration plant for its Geelong Geothermal Power historic A1 gold mine at Gaffneys Creek in eastern Victoria Project (GGPP) connected to Victoria’s electricity grid to production. within two to three years – subject to a capital raising and a successful Stage 1 “proof of concept.” Managing Director of the -based Heron, Mathew Longworth, told the Resources Victoria Conference that a number of Addressing the Resources Victoria Conference, Greenearth studies aimed at underpinning a mine re-opening decision were Managing Director Mark Miller said the start-up would be subject underway. to funding availability and success in Stage 1. He that Greenearth “Realistically, any mine start would be around 18 months or was also considering seeking a strategic partner for the GGPP. so away, but our current modelling is focusing on a throughput The project is located within geothermal exploration permit of about 100,000 tonnes of underground ore production using a GEP10 to the north-west of the Victorian township of Anglesea in combination of hand-held air leg mining and mechanised mining the Wensleydale-Gherang area. It has attracted A$32 million in techniques,” Mr Longworth told delegates. Federal and Victorian Government grants. “On work to date, we would see any renaissance for the A1 “One of the biggest advantages of the GGPP is that the project mine having a mine life of around eight years, depending on is close to existing power grid infrastructure and proximate heavy further exploration success – and we are continuing to drill as A1 industry – not hundreds of kilometres from the grid and potential offers a genuine near-term production opportunity,” he said. offtakers,” Mr Miller said. At a planned mining rate of 100,000 tonnes-a-year, the A1 “The greater Geelong region represents one of the most would produce between 25,000 and 30,000 ounces of gold carbon exposed regions in Australia and we see the potential for annually. Heron’s target mineralisation is a bulk tonnage gold this area to also evolve as a renewable energy technology hub, stockworks system, hosted by a “dyke.” not just geothermal,” he told the conference. Heron holds a two year option to acquire the A1 which boasts Greenearth is negotiating contracts with the Victorian historical production of 450,000 ounces of gold from intermittent Government under its award in late 2009 of $25 million as part of production between 1861 and up until when the most recent the Government’s Energy Technology Innovation Strategy (ETIS) operations ceased in 1992. program for large scale, pre-commercial, sustainable energy Heron is in strong financial position to pursue its gold demonstration projects. production ambitions at the A1. The group was holding more than The Victorian Government awarded the GGPP $5 million for the $60 million cash at end of March thanks to the takeover of Polaris Stage 1 “Proof of Resource” and, upon successful completion, Metals NL, in which it had a stake. a further $20 million for the Stage 2, 12MW geothermal energy On site, Heron has completed site infrastructure, and decline demonstration plant. development and exploration drilling and sampling is ongoing. Greenearth reports that the GGPP has an inferred geothermal About 26 people are employed at the nearby Woods Point which resource of 17,000 petajoules. Mr Longworth says could increase to 50 if mining goes ahead. Mr Miller said Greenearth was in capital raising mode to fund the $31 million Stage 1 and the $73 million Stage 2 schedules. FOR MORE INFORMATION: He said that the Stage 1 proof of concept will take Mathew Longworth Managing Director Heron Resources Ltd approximately two years to complete. The 12MW Stage 2 Telephone: 08 9215 4444 demonstration plant has the potential to power up to 8,000 Website: www.heronresources.com.au homes with zero emissions, base load renewable energy.

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

26 DISCOVERY JOURNAL OCTOBER 2010 PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference PRESENTERS FORUM 2010 Resources Victoria Conference

3D-GEO Bendigo Mining

Jessie Davey Rod Hanson Principal Geologist, 3D-GEOthermal Managing Director

3D Geothermal helps Aggressive growth ambitions develop industry

The relative youthfulness of Victoria’s geothermal industry Bendigo Mining Managing Director Rod Hanson told can be turned to its advantage, according to research and delegates at the Resources Victoria Conference that the consulting group 3D-GEO. group has aggressive growth ambitions.

Dr Jessie Davey, a consultant with 3D-GEO’s geothermal He said that the ambition to become a 500,000 ounce-a-year unit, told the Resources Victoria Conference that there was no gold producer was backed by a multi-pronged strategy. doubting Victoria’s geothermal potential. The cornerstone of the strategy was to maximise the But the emerging Victorian industry needs to learn from performance of the group’s existing mines – the Kangaroo Flat mistakes that have occurred where the industry is more mature, operation at Bendigo and the Henty gold mine in Tasmania. Since and move forward. his address to the conference, Bendigo Mining has reached “The definition of insanity is repeating the same process and agreement for a friendly merger with BCD Resources, the expecting a different outcome,” Dr Davey warned. Melbourne-based owner of the Tasmania mine at Beaconsfield in 3D-GEO’s geologists and geophysicists consult to the Tasmania. petroleum, carbon capture and storage and geothermal Production from the three mines in the June financial year was industries. While the consultancy is based in Melbourne, it has 137,600 ounces. been involved in projects around the world. Its geothermal unit, The other elements of Bendigo Mining’s growth strategy are 3DGEOthermal, has been active in the fast-growing sector for five to step up its exploration efforts, either on a direct basis or in years. partnerships, and to develop, acquire and invest in other projects. Dr Davey also called on the broader industry to get on with job At the Kangaroo Flat mine, production in the June financial year of converting Australia’s geothermal potential in to a reality. was 36,649 ounces. That was down modestly on 36,927 ounces “It’s all well and good to get out there and preach about in the 2009 financial year – serving to confirm the steady state geothermal potential,” she said. performance of the operation since production resumed in 2008. But with Australia yet to have a producing project, it was “time Output in the final June quarter was 9,454 ounces at a cash to stop talking about the potential and actually do something with cost of A$875 an ounce. The group’s average realised gold it,” Dr Davey said after her presentation. price in the quarter was A$1,353 an ounce, ensuring a healthy In the presentation, Dr Davey said that geothermal explorers operating margin. should be alert to techniques used in the petroleum exploration Mr Hanson said $4 million annually was being spent on industry (such as seismic data interpretation), as well as being exploration for new gold-bearing reefs at Kangaroo Flat. He said prepared to draw on the temperature data base logged in further discoveries are required to support mine plans beyond the previously drilled petroleum exploration wells. 2011 financial year. She said that a failure to draw on that type of information had been a shortcoming of the industry elsewhere in Australia. FOR MORE INFORMATION: “Whilst there is not a lot of information in Australia about areas Rod Hanson Managing Director of geothermal interest specifically, there has been a lot of work Bendigo Mining Ltd that relates to it. And that is generally not taken in to account Telephone: 03 5447 1834 when people undertake exploration,” Dr Davey explained. Email: [email protected] Website: www.bendigomining.com.au She also warned delegates about the potential for errors to be made when it came to the extrapolation of temperatures across prospective basins, particularly in the use of regional temperature maps to define resources in areas of geothermal interest.

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

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

Dr Peter Tingate Mark A. McLean Senior Basin Analyst Geophysicist

Understanding the plumbing Three-dimensional modelling of the Gippsland Basin: new in the Melbourne Zone, results on migration and southeast Australia charge history

GeoScience Victoria and CSIRO have been working Rediscover Victoria 3D brought the future of Victorian geology together to test the containment potential of the to the big screen with a flythrough of its newly developed Gippsland Basin to ensure that CO2 can be safely stored three-dimensional Melbourne Zone model. One of the key in the subsurface. The combined research program is drivers behind this type of geology simulation is to build our enabling GSV to delineate the CO2 storage potential understanding of the plumbing systems that control regional while simultaneously contributing to further defining the mineralisation styles, and ultimately provide a foundation for petroleum prospectivity of the basin. the state’s base and precious metal resources.

This research has been able to predict the migration pathways The bulk of the Melbourne Zone is modelled from the Earth’s surface along which petroleum moved in the subsurface by focusing on down to the Moho, in an effort to further our knowledge of the the hydrology and geochemistry of the Gippsland Basin together structure and processes of the entire crust. GSV’s modellers set the with CO2 migration simulations. Recently acquired petroleum Melbourne Zone’s boundaries with the Governor Fault in the east and systems data tested the potential of individual structures or traps north, and the Mount William Fault in the west. The main rock units along these migration pathways, and indicated that early oil in the zone are a succession of Ordovician to Early Devonian marine charge occurred in many structures within the basin that are now turbidites and shales. filled with gas. One of the more striking features of the model is a series of The latest results from CSIRO indicate that structures in chevron style, doubly plunging folds which have an E-W interference areas such as the Golden Beach gas field, have had complex pattern. These patterns represent the current architecture of this hydrocarbon migration and charge histories and that in some region which comprises of turbidites that have been truncated cases, hydrocarbons have migrated through the regional seal. by reverse faults. The Rediscover Victoria 3D team assembled The research confirms local measurements of the top seal the geometry using contemporary surface geology with airborne potential and ensures that future efforts can concentrate on the magnetics and land based gravity data. Once the subsurface most prospective areas for CO2 containment. structures were established, the team were able to build a realistic 1:250,000 scale 3D model of the Melbourne Zone. FOR MORE INFORMATION CONTACT: The Melbourne Zone model, and ultimately our understanding, will Dr Peter Tingate be continually developed as more data becomes available. The next Department of Primary Industries Telephone: 03 9658 4548 step is to populate the model with properties such as density and Email: [email protected] magnetic susceptibility to further refine the geological boundaries.

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

28 DISCOVERY JOURNAL OCTOBER 2010 TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM

David Taylor Ross A. Cayley Geologist Senior Geologist

New Victorian Heat Flow New solution to the Map to support informed Ordovician-Silurian investment geometry puzzle

GeoScience Victoria has just produced the first State heat GSV has developed a new model that solves the long- flow map to boost understanding of Victoria’s geothermal standing geometry puzzle and extraordinary width of the resource potential. Geothermal energy has the potential to Lachlan Fold Belt (LFB). The solution also simplifies the provide sustainable low emission baseload energy. Late Cambrian–Early Silurian configuration of the LFB. New aeromagnetic data shows that the Baragwanath The heat flow map comprises 103 data points to give insight into Transform – once thought to be the key structure in ‘where it’s hot’ across much of Victoria. Heat flow estimates are the tectonic jigsaw – does not occur in western derived by analysing precision temperature logs and rock thermal New South Wales. conductivity data from open boreholes several hundred metres deep. The new model links mid- to Late Silurian oroclinal folding with The map shows much higher than anticipated heat flows dextral strike-slip faults such as the Kancoona-Kiewa Fault. It across much of Victoria when compared with global averages also points to a 90° clockwise rotation of the Tabberabbera Zone for rocks of these ages (~65 mW/m2). These heat flow values to form the middle limb of a large Z-shaped oroclinal fold. This (100 mW/m2+) are as high as those seen in the South Australian fresh approach fits the new aeromagnetic data and explains the hot rock province, and indicate a previously unrecognised complex palaeogeography. Evidence strongly suggests that until geothermal fairway in the northwest of the State under the Murray the Early Devonian, the Tabberabbera Zone was not contiguous basin. with the Melbourne Zone. This solution does not need to invoke Good geothermal resources generally occur where high heat multiple subduction zones to explain reversals in vergence and flow intersects areas of good thermal insulation to create high observed complex distribution of sedimentary packages. Instead temperatures at shallow depth. Although heat flow is generally these features are readily explained by oroclinal folding. average across the Otway and Gippsland basins (55-75 mW/ Contemporary models for the LFB argued for either (1) m2), the insulation provided by thick basin fill in these areas may large-scale horizontal movement along the mid- to Late Silurian still allow commercially viable temperatures to develop. Ongoing Baragwanath Transform or, (2) several coeval subduction zones of assessment of the thermal insulation (conductivity) properties opposing polarity, to explain the complex geometry, sedimentary of rock units across Victoria will assist in refining areas of high relationships as well as the Belt’s width and magmatic history. geothermal prospectivity, with contribution from this new heat flow The new model consigns the Baragwanath Transform to history map. and greatly simplifies the geometry of subduction zones active in the early development of the LFB. FOR MORE INFORMATION CONTACT: David Taylor FOR MORE INFORMATION CONTACT: Geologist Ross Cayley GeoScience Victoria Senior Geologist Telephone: 03 9658 4575 GeoScience Victoria Email: [email protected] Telephone: 03 9658 4517 Email: [email protected]

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

David Higgins Senior Geospatial Information Officer, GeoScience Victoria

Seamless geological data for The new geological data is available as a DVD, with seamless geology layers at Melbourne Zone 1:50,000 and 1:250,000 scale available in ESRI and Mapinfo formats, registered A major rework of geological maps and datasets of Victoria geophysical images, geological is underway to create a seamless two-dimensional surface interpretation of 1:1,000,000 and geological map of the entire state, which will assist the 1:500,000 geophysics, mineral occurrence discovery of major new mineral deposits. and production data and exploration

The 1:250,000 scale geology for the Melbourne Zone is now geochemical data. seamless, to join previously released data in the Bendigo and western zones of Victoria. This task was a concerted effort, with over 2,000 field sites and many hours of office interpretation involved in reconciling the geology with past geological mapping. The existing 1:50,000 scale geology has also been made seamless, within the area where existing mapping was available. This dataset is being used by the Rediscover Victoria team to help construct the 3D models of the state’s geology. The project will create a seamless geology layer across the state of Victoria at 1:50,000 and 1:250,000 scales. The work involves: • Matching geological boundaries and polygons across pre- existing map edges; • Checking the accuracy of older maps against radiometrics, topography, aeromagnetics, aerial photos, boreholes and field observations; • Updating stratigraphic names and reconciling name changes across map edges; and • Assigning many geological attributes to geological units, boundaries and faults.

New geological data is available on DVD, with seamless geology layers at 1:50,000 and 1:250,000 scale available in ESRI and Mapinfo formats, registered geophysical images, geological interpretation of 1:1,000,000 and 1:500,000 geophysics, mineral occurrence and production data and exploration geochemical Above: Part of the newly released Melbourne Zone 1:250 000 geological interpretation data. In addition, two reports detailing the updated stratigraphy OneGeology and Auscope web portals and will soon be available and name changes for the Bendigo Zone (GSV Report 129) and via DPI’s newly updated Geovic web mapping application. western zones (GSV Report 130) have been released. These also contain numerous photos of critical outcrops. FOR MORE INFORMATION CONTACT: The seamless 1:250,000 geology data is now available on the David Higgins Senior Geospatial Information Officer GeoScience Victoria Telephone: +61 3 9658 4506 Email: [email protected]

30 DISCOVERY JOURNAL OCTOBER 2010 TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM 2010 Resources Victoria Conference TECHNICAL FORUM

Timothy J Rawling 3D Modelling Manager

Rediscover Victoria 3D, new Rediscover Victoria’s 3D modelling has proved an extremely powerful tool for GeoScience exploration tools and new Victoria. Coupled with flexible, targeted insights for Victoria investigation, it has allowed geologists to identify, check and reinterpret geometric inconsistencies that may not be apparent to GeoScience Victoria is striving to provide the resources the mapping teams during the course of a industry with the next generation of exploration tools as part of the Rediscover Victoria 3D project. more orthodox mapping campaign.

On the top shelf of the toolbox is GSV’s sophisticated, crustal scale 3D geological model of Victoria. To date, few regional 3D geological models have been built that incorporate detailed basement and overlying basin geometries, so it’s no wonder that adding extra dimensions to a problem occasionally generates surprises. One such surprise led to the modelling of a number of newly-interpreted undercover granites beneath the Murray Basin. One of the challenges in geophysics datasets has been to differentiate magnetic and non- magnetic granites, particularly undercover. Modelling and geophysical inversion of granites as part of GSV’s 3D model building process for western Victoria has proved extremely useful in refining our understanding of the depths and sub-surface geometries (shapes) of these granites. It is now possible in some cases to identify separate phases within these granites. Another unexpected outcome was the likely presence of a folded and faulted Cambrian sequence approximately 5–8 km thick under the Ordovician Castlemaine Group in the Bendigo Zone. Bendigo was the first area to be modelled, due largely to its high prospectivity, Above: Western Victoria granite model showing the distribution of granites interpreted from magnetic data (light pink) and gravity data (red). Above: Part of the newly released Melbourne Zone 1:250 000 geological interpretation and availability of high-quality data, including a deep seismic profile. However, once carefully assembled into a investigation, it has allowed geologists to identify, check and reinterpret 3D form, it was clear that contemporary 2D datasets were unable to geometric inconsistencies that may not be apparent to the mapping explain a number of spatial inconsistencies. teams during the course of a more orthodox mapping campaign. Further analysis indicates that this Cambrian package must FOR MORE INFORMATION CONTACT: gradually wedge out towards the east ahead of an imbricate system Tim Rawling of south-west dipping thrust faults, interpreted to account for most of 3D Modelling Manager the thickening in the hanging wall of the Mount William Fault. These GeoScience Victoria inferred faults are probably Tabberabberan in age. Telephone: 03 9658 4584 Email: [email protected] Rediscover Victoria’s 3D modelling has proved an extremely Website: www.rvd.dpi.vic.gov.au powerful tool for GeoScience Victoria. Coupled with flexible, targeted

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

Exploration Licences Granted Exploration Licence Applications Tenement Primary Owner Application Granted Tenement Primary Owner Application Date

EL4666 Rio Tinto Exploration Pty Ltd 30/5/02 27/5/10 EL5283 Rocky Mining Pty Ltd 14/5/10 EL4735 Rio Tinto Exploration Pty Ltd 14/1/03 27/5/10 EL5284 Victorian Iron Pty Ltd 17/5/10 EL4870 Rio Tinto Exploration Pty Ltd 22/3/05 27/5/10 EL5285 Victorian Iron Pty Ltd 17/5/10 EL4872 Rio Tinto Exploration Pty Ltd 22/3/05 27/5/10 EL5286 Victorian Iron Pty Ltd 17/5/10 EL4874 Rio Tinto Exploration Pty Ltd 22/3/05 27/5/10 EL5287 Victorian Iron Pty Ltd 17/5/10 EL5241 Golden Deeps Ltd 15/9/09 5/8/10 EL5288 Victorian Iron Pty Ltd 17/5/10 EL5244 Metals Australia Ltd 18/9/09 7/7/10 EL5289 Victorian Iron Pty Ltd 17/5/10 EL5245 Metals Australia Ltd 18/9/09 7/7/10 EL5290 Victorian Iron Pty Ltd 17/5/10 EL5253 Minotaur Operations Pty Ltd 12/11/09 7/7/10 EL5292 GBM Resources Ltd 1/6/10 EL5255 Donald Mineral Sands Pty Ltd 9/12/09 12/5/10 EL5293 GBM Resources Ltd 1/6/10 EL5261 Sovereign Gold NL 10/12/09 27/5/10 EL5294 Mantle Mining Corporation Ltd 2/6/10 EL5262 Sovereign Gold NL 10/12/09 12/5/10 EL5296 Minotaur Operations Pty Ltd 13/7/10 EL5263 Donald Mineral Sands Pty Ltd 10/12/09 12/5/10 EL5297 Mecrus Support Services Pty Ltd 23/7/10

TENEMENT UPDATE EL5267 Matrix Gold Ltd 27/1/10 27/5/10 EL5298 Mecrus Support Services Pty Ltd 23/7/10 EL5268 BTB Mining Pty Ltd 12/2/10 20/8/10 EL5299 Mecrus Support Services Pty Ltd 23/7/10 EL5270 Clean Global Energy Ltd 4/3/10 9/6/10 EL5300 Mt Wills Gold Mines Pty Ltd 27/7/10 EL5273 Triton Gold (Project B) Pty Ltd 23/3/10 7/7/10 EL5301 Petra Minerals Pty Ltd 6/8/10 EL5276 ECI International Pty Ltd 31/3/10 7/7/10 EL5302 Tawson Pty Ltd 19/8/10 EL5278 Providence Gold & Minerals Pty Ltd 9/4/10 25/6/10 EL5303 Iron Mountain Mining Ltd 20/8/10 EL5279 ABX5 Pty Ltd 9/4/10 9/6/10 EL5304 Iron Mountain Mining Ltd 20/8/10 EL5291 Austpac Resources NL 1/6/10 5/8/10 EL5305 Iron Mountain Mining Ltd 20/8/10 EL5306 Iron Mountain Mining Ltd 20/8/10 EL5307 Iron Mountain Mining Ltd 20/8/10 Mildura EL5308 Wassylko, Stanislaw 27/8/10 ^ EL5309 Donald Mineral Sands Pty Ltd 27/8/10

Swan Hill ^ EL5306 EL5308 EL5262 EL5255 EL5278 EL5268 EL5291 Wodonga ^ EL5295 EL5253 Shepparton Wangaratta EL5261 EL5296 ^ ^ EL5241 EL5290 EL5289 EL5263 EL5286 Horsham EL5267 EL5285 EL5300 ^ EL5284^ Bendigo EL5304 EL5302 EL5288 EL5309 EL5287 EL5303 EL5305 EL5307 EL5293

EL5283 EL5299 EL5245 EL5301 EL5273 Ballarat ^ EL5292 EL5298 EL5294 Hamilton Melbourne EL4666 ^ EL5244 ^ EL4870 EL4874 ^ Bairnsdale EL5297 EL4872 EL4735 EL5279 Geelong ^ ^ Portland Warrnambool ^ ^ EL5276

EL5270 N Applications Granted Current

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

32 DISCOVERY JOURNAL OCTOBER 2010 Mineral Exploration Tenements New applications and grants during May – August 2010 Earth Resources Resources Sector Websites Development Division

Exploration Licence Applications Academic Executive GeoScience Victoria Monash Earth Sciences Tenement Primary Owner Application Date Michael Hollitt Paul McDonald www.earth.monash.edu.au Executive Director Acting Director, GeoScience Victoria EL5283 Rocky Mining Pty Ltd 14/5/10 RMIT Department of Civil T: (613) 9658 4405 T: (613) 9658 4531 EL5284 Victorian Iron Pty Ltd 17/5/10 and Chemical Engineering [email protected] [email protected] EL5285 Victorian Iron Pty Ltd 17/5/10 www.rmit.edu.au/eng/civil-chem EL5286 Victorian Iron Pty Ltd 17/5/10 Dr. Geoff O’Brien Resources Investment Manager, Energy Geoscience Seismology Research Centre EL5287 Victorian Iron Pty Ltd 17/5/10 and Facilitation T: (613) 9658 4537 www.seis.com.au EL5288 Victorian Iron Pty Ltd 17/5/10 Sean Rooney geoff.o’[email protected] University of Ballarat Geology Department EL5289 Victorian Iron Pty Ltd 17/5/10 Acting Director, Resources, Investment and Facilitation Peter O’Shea www.ballarat.edu.au/ard/sci-eng/geology EL5290 Victorian Iron Pty Ltd 17/5/10 Manager, Minerals Geoscience T: (613) 9658 4739 University of Melbourne School EL5292 GBM Resources Ltd 1/6/10 T: (613) 9658 4525 [email protected] of Earth Sciences EL5293 GBM Resources Ltd 1/6/10 peter.o’[email protected] Geoff Collins www.earthsci.unimelb.edu.au EL5294 Mantle Mining Corporation Ltd 2/6/10 Petroleum Development Manager Linda Bibby Manager, Geoscience Information Government EL5296 Minotaur Operations Pty Ltd 13/7/10 T: (613) 9658 4406 CONTACTS T: (613) 9658 4511 Australian Governments EL5297 Mecrus Support Services Pty Ltd 23/7/10 [email protected] [email protected] Geoscience Portal EL5298 Mecrus Support Services Pty Ltd 23/7/10 Kathy Friday www.geoscience.gov.au EL5299 Mecrus Support Services Pty Ltd 23/7/10 Manager, Minerals Development David Gallus Manager, Strategic Geoscience Department of Resources EL5300 Mt Wills Gold Mines Pty Ltd 27/7/10 T: (613) 9658 4407 [email protected] T: (613) 9658 4536 www.minerals.nt.gov.au EL5301 Petra Minerals Pty Ltd 6/8/10 [email protected] Department of Mines and Petroleum, EL5302 Tawson Pty Ltd 19/8/10 Renee Kjar Acting Manager, Coal Development Adele Seymon Western Australia EL5303 Iron Mountain Mining Ltd 20/8/10 Acting Manager, Resources T: (613) 9658 4403 www.dmp.wa.gov.au EL5304 Iron Mountain Mining Ltd 20/8/10 [email protected] T: (613) 9658 4523 EL5305 Iron Mountain Mining Ltd 20/8/10 [email protected] Department of Resources, Energy and Gordon Chakaodza Tourism EL5306 Iron Mountain Mining Ltd 20/8/10 Senior Resources Development Officer www.ret.gov.au EL5307 Iron Mountain Mining Ltd 20/8/10 T: (613) 9658 4401 Clean Coal Victoria Charlie Speirs EL5308 Wassylko, Stanislaw 27/8/10 [email protected] Department of Mines Director, Clean Coal Victoria and Energy, Queensland EL5309 Donald Mineral Sands Pty Ltd 27/8/10 T: (613) 5160 9000 www.dme.qld.gov.au [email protected] Department of Primary Industries, Earth Resources Policy New South Wales and Legislation www.minerals.nsw.gov.au Danny Suster Department of Primary Industries, Victoria Acting Manager, Earth Resources Policy www.dpi.vic.gov.au and Legislation T: (613) 9658 4804 Department of Environment, Water, [email protected] Heritage and the Arts www.environment.gov.au Geoscience Australia Earth Resources Regulation www.ga.gov.au Mineral Resources Tasmania Doug Sceney David Boothroyd www.mrt.tas.gov.au Director, Earth Resources Regulation Manager, Earth Resources Policy T: (613) 9658 4451 T: (613) 9658 4439 Primary Industries and Resources, [email protected] [email protected] South Australia www.pir.sa.gov.au John Mitas Andrew Radojkovic Manager, Minerals and Extractive Operations Manager Sustainable Development T: (613) 9658 4422 T: (613) 9658 4433 Peak Bodies [email protected] [email protected] Australian Petroleum Production Terry McKinley and Exploration Association Manager Petroleum and Geothermal Operations Earth Resources www.appea.com.au T: (613) 9658 4414 Business Centre Cement Concrete and [email protected] Kim Ricketts Aggregrates Australia Tenements Registration Officer www.concrete.net.au T: (613) 9658 4454 [email protected] Construction Material Processors Association www.cmpavic.asn.au Minerals Council of Australia (Vic) Earth Resources Information Development www.minerals.org.au/victoria Information Centre Boris Rudoy Prospectors and Miners 16th Floor, 1 Spring Street Manager, Information Development Association of Victoria GPO Box 4440 T: (613) 9658 4571 www.pmav.org.au Melbourne Victoria Australia 3001 [email protected] T: (613) 9658 4440 Victorian Mining Wardens Court F: (613) 9658 4760 Corporate Communications www.miningwarden.vic.gov.au [email protected] Alistair King Complete mineral, petroleum and extractive tenement details are available from www.dpi.vic.gov.au/minpet/geovic Communication Manager, Earth Resources T: (613) 9208 3928 [email protected] 33 DEPARTMENT OF PRIMARY INDUSTRIES

Image: Base of Tertiary surface, red colours are shallow, purple colours are deep. Source 3D-GEO Pty Ltd.

VicGCS: VictorianVictorian Geological Geological Carbon Carbon Storage Storage RegionalRegional geological geological frameworks frameworks for forinformed informed basin basin management management

Otway Basin Bass Basin Gippsland Basin • 2010 petroleum acreage release: • Basin-scale geological carbon • 2010 petroleum acreage release: two onshore and one offshore storage assessment available fourfive onshore blocks available blocks available • 3D generation-migration model • New 8000 line km 2D seismic • Basin-scale assessment with available survey complete, co-funded by Geoscience Australia DRET • Major Fluid Inclusion • Basin-scale 3D geological Stratigraphy (FIS) study Rediscover Victoria 3D framework and seismic volume released with FIT • Building on VicGCS to produce a • Top seal architecture and • Regional structural evaluation 3D model of Victoria’s basins at a characteristics defined scale of 1:250,000 or better • Deep aquifer assessment • Pre-stress state hydrodynamic • Several regional-scale models model and database available now • New charge history study • For more information visit released with CSIRO www.3dvictoria.dpi.vic.gov.au • 3DBuilding fluid flow a unified model aquifer released model with DSE • 3D fluid flow model released

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