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ROUND THE CLOCK DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL FEBRUARY 2001

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MOBILE HYDRAULICS • WEMEN STARTUP

VICTORIA: P.O. Box 191, 265 Ingles Street, Port Melbourne 3207. Phone: (03) 9646 2017. Fax: (03) 9646 2257 • GAS GROWS FASTER NEW SOUTH WALES:9 Carrington Road, Castle Hill 2154. Phone (02) 9843 0644. Fax (02) 9842 5113 • JOE GOES FOR GOLD

TELFORD 1203 DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL FEBRUARY 2001 contents

WEMEN LEADS THE BASIN CHARGE 2 Production is underway at Victoria’s first mineral sands mine A STAR RISES IN THE WEST 4 New eyes focus on Victoria’s massive brown coal deposits JOE GOES FOR GOLD 5 Mining entrepreneur Joseph Gutnick joins the local search GAS LINKS GROW FAST 8 Our gas pipeline network continues its rapid expansion ACTIVITY UPSURGE FORECAST 10 Kathy Hill says a major upswing in petroleum exploration is likely NEW PROTECTION DEAL FOR HEATH 16 Industry and government co-operate to protect a rare resource cover picture

BENDIGO TO FAST TRACK NEW MINE DECISION 18 Victoria is emerging as the hub of a growing Promising results continue to come from the new Bendigo mine national network of gas pipelines. Major extensions to South Australia and Tasmania have GAS FIND - BUT IT’S NOT COMMERCIAL 21 been announced. See our story on page 8. Lakes Oil remains optimistic about finding commercial gas GOLD MINE REHAB SHOWS THE WAY 22 They’re turning the environmental clock back at Avoca MOBILE BOOM RATTLES THE TIN 24 Communications technology is sparking new growth in tin mining MELBA’S DAD CARVED HIS OWN SUCCESS 26 The long mining history of Limil is something to sing about NEW LIFE FOR WIM PROSPECT 27 New processing techniques may boost work on the WIM mineral sands

DISCLAIMER: This publication may be of assistance to you, but the regular features State of Victoria and its officers do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or MINISTER’S COLUMN 7 other consequence which may arise from you relying on any information in this publication. Resurgence is good news for Vic Minerals and Petroleum Victoria acknowledges contributions made by private enterprise. Acceptance of these contributions, however, INDUSTRY NEWS 12 does not endorse or imply endorsement by the Department of Natural Latest Victorian industry news Resources and Environment of any product or service offered by the contributors. RESOURCES MAP 14 All photographs, maps, charts, tables and written information in this Victoria's mineral, oil and gas resources publication are copyright under the Copyright Act and may not be reproduced by any process whatsoever without the written permis- MINERAL LICENCE REVIEW 20 sion of the Department of Natural Resources and Environment. Who’s doing what with mineral exploration licences © Minerals and Petroleum Victoria 2001. The latest publication from the GSV on the Tasman Fold Belt System in Victoria combines the latest survey technology with contemporary thinking on Victoria's geological development. The result is the most comprehensive geological picture of the State since the pioneering geological mapping of Alfred Selwyn in the 1850's. Published quarterly on behalf of the Minerals and Petroleum Division of the Department of Natural Resources & Environment by RBA Communications, 86 Cooloongatta Rd, Camberwell Vic 3124 Tel: (03) 9889 1094 Fax: (03) 9889 9997 EMail: [email protected] Editorial: Rex Banks. Advertising: Watts Media, 3 Emily Court, Mulgrave, Vic 3170 The book costs $110 plus $10 p&p . The text of the book together with raster images is included on a CD-ROM . Tel: (03) 9546 9566 Fax: (03) 9546 9965. Distribution enquires to Chandri Nambiar, Manager Marketing Development, Minerals and Petroleum Division, Department of Natural Resources & Environment, Level 7, 240 Victoria Parade, East Melbourne, Vic, 3002, Tel: (03) 9412 5061 Fax: (03) 9412 5155. Website:

NEW FROM THE GEOLOGICAL SURVEY OF VICTORIA OF SURVEY GEOLOGICAL THE FROM NEW To order contact Minerals and Petroleum Business Centre, Level 8 , 240 Victoria Parade, East Melbourne , Victoria 3002. Australia Post Print Publication PP349472/00128. ISSN Number 13282409.

Tel (03) 9412 5020. Fax (03) 9412 5157. Email: [email protected] 1 DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL FEBRUARY 2001 contents

NEW FROM THE GEOLOGICAL SURVEY OF VICTORIA NEW FROM THE To order contact Minerals and Petroleum Business Centre, Level 8 , 240 Victoria Parade, East Melbourne , Victoria 3002. Australia Post Print Publication PP349472/00128. ISSN Number 13282409.

Tel (03) 9412 5020. Fax (03) 9412 5157. Email: [email protected] 1 MINERAL SANDS MINERAL SANDS

would be transported through the port of Portland. This is an encouraging pointer that Portland may emerge as an export port for other Wemen leads the basin charge mineral sands projects in the Murray Basin. The Minister for Energy and Resources, Candy Broad, who is also Minister for Ports, said that the move was great news for Portland and would make a significant contribution to its future growth.

5 8

he first mineral sands project in the While the basin extends into NSW and South Murray Basin has started production, Australia, some of the highest grade and most 6 leading a parade of companies into a accessible sand deposits lie in the Victorian T major new export industry for Victoria. region. 10 Murray Basin Titanium, a wholly owned sub- To identify the Wemen project from the sidiary of Japan’s Nissho Iwai Corporation, group’s other mineral sands operations in and its joint venture partner, Sons of Gwalia, Western Australia, operated by RZM Corp, has already begun dredging operations at the company has created a separate corporate Wemen, 25 km south west of Robinvale, in identity, Murray Basin Titanium, for the new Victoria’s North west. project. 2 The mine is expected to produce 40,000 Based in Mildura, the new group is in the van- tonnes of rutile and 10,000 tonnes of zircon a guard of what could become a major export year. industry for the state. A separation plant, being built at Thurlo, 10 Eventually, RZM Corp plans to relocate much km west of Redcliffs, on the Murray River, of the existing infrastructure at its existing 11 will treat the production from the mine. It is operations in NSW into Victoria as the Murray expected to begin operations this month. Basin slowly assumes responsibility for replacing depleting mineral sands reserves. Pictures 5- 11: Sand is mined using a floating The first stage of the Wemen project is expect- bucket wheel dredge (top left) and pumped to a ed to last six years before a second and larger A major study into the mineral sands potential concentrator (pic 9) where the valuable heavy project is contemplated based on the success of the entire Murray Basin has found that the minerals are separated before being stockpiled of the first stage. region could become one of the world’s major (pic 6) prior to further processing. Members of the mineral sands provinces. Environmental Review Committee (pic 10) recently Several other mineral sands producers are gear- visited the Wemen project as part of the ongoing 3 ing up for production from the vast resources Murray Basin Titanium announced recently 7 monitoring of the first mineral sand project in the now known to exist in the Murray Basin. that mineral sands from the Wemen deposit Murray Basin.

2 3 MINERAL SANDS MINERAL SANDS

5 8

9 Pictures 1- 4: Production has begun at the Wemen mineral sands project operated by Murray Basin Titanium, a joint venture between Sons of Gwalia Ltd and RZM Corp. The wet mining project, under the control of the mine superintendent, Lance 1 Faulkner, (below left) has been subject to strict environmental controls. he first mineral sands project in the While the basin extends into NSW and South Murray Basin has started production, Australia, some of the highest grade and most 6 leading a parade of companies into a accessible sand deposits lie in the Victorian T major new export industry for Victoria. region. 10 Murray Basin Titanium, a wholly owned sub- To identify the Wemen project from the sidiary of Japan’s Nissho Iwai Corporation, group’s other mineral sands operations in and its joint venture partner, Sons of Gwalia, Western Australia, operated by RZM Corp, has already begun dredging operations at the company has created a separate corporate Wemen, 25 km south west of Robinvale, in identity, Murray Basin Titanium, for the new Victoria’s North west. project. 2 The mine is expected to produce 40,000 Based in Mildura, the new group is in the van- tonnes of rutile and 10,000 tonnes of zircon a guard of what could become a major export year. industry for the state. A separation plant, being built at Thurlo, 10 Eventually, RZM Corp plans to relocate much km west of Redcliffs, on the Murray River, of the existing infrastructure at its existing 11 will treat the production from the mine. It is operations in NSW into Victoria as the Murray expected to begin operations this month. Basin slowly assumes responsibility for replacing depleting mineral sands reserves. Pictures 5- 11: Sand is mined using a floating The first stage of the Wemen project is expect- bucket wheel dredge (top left) and pumped to a ed to last six years before a second and larger A major study into the mineral sands potential concentrator (pic 9) where the valuable heavy project is contemplated based on the success of the entire Murray Basin has found that the minerals are separated before being stockpiled of the first stage. region could become one of the world’s major (pic 6) prior to further processing. Members of the mineral sands provinces. Environmental Review Committee (pic 10) recently Several other mineral sands producers are gear- visited the Wemen project as part of the ongoing 3 ing up for production from the vast resources Murray Basin Titanium announced recently 7 monitoring of the first mineral sand project in the now known to exist in the Murray Basin. that mineral sands from the Wemen deposit Murray Basin.

2 3 PROSPECTING DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Brown coal deposits Tel: +613 9412 5020 Fax: +613 9412 5150 Gutnick goes for gold at Violet Town

MINERALS AND PETROLEUM DIVISION: Mike Woollands may spark new industry Fax: (03) 9412 7834 Manager Basin Studies Telephone: (03) 9412 5135 David Lea Executive Director Minerals and Petroleum Maher Megallaa he burgeoning growth in ining entrepreneur, Joseph Gutnick, Telephone: (03) 9412 4508 Manager Acreage Release Australia’s natural gas has acquired gold exploration leases Fax: (03) 9412 4183 Telephone: (03) 9412 5081 T industry has prompted the covering 3,700 square kilometres in creation of a new form of gas M central Victoria as part of a major Bob Harms David Wallish production, with commercial effort to locate new ore resources in the state. Business Manager Manager Petroleum Information coalbed methane projects now The leases, covering almost the entire area Telephone: (03) 9412 5137 Telephone: (03) 9412 5053 emerging in both NSW and between Seymour and Benalla, stretch west- Queensland. MINERALS BUSINESS CENTRE: Geoff Collins wards as far as Rushworth. Manager Petroleum Projects Fax: (03) 9412 5157 But now Victoria’s vast brown After completing a review of the mining his- Telephone: (03) 9412 5095 coalbeds have become the focus of Kim Ricketts tory of the area and plotting much of the more a new company which listed on the Client Services Officer MINERALS AND PETROLEUM recent geological data and fieldwork by Australian Stock Exchange in early Telephone: (03) 9412 5103 REGULATION: other companies, Mr Gutnick’s company, Fax: (03) 9412 5152 February. GEOLOGICAL SURVEY VICTORIA: Wyn Davies Eastern Star Gas has acquired three Fax: (03) 9412 5155 Rob King Manager Minerals and exploration licences — EL 4507, EL 4392 and EL 4510 — over the Phil Roberts Petroleum Regulation western portion of Victoria’s brown coal deposits. They stretch from Manager Geological Survey Victoria Telephone: (03) 9412 5069 the western outskirts of Melbourne to the Maddingly brown coal mine Telephone: (03) 9412 5035 near Bacchus Marsh in the northwest, to Colac and the Barwon River George Buckland Valley in the southwest, and to the Anglesea open cut brown coal mine Alan Willocks Manager Minerals and in the southeast. Manager - Geophysics Petroleum Tenements A draft prospectus prepared by the company notes that: “The largest Telephone: (03) 9412 5131 Telephone: (03) 9412 4778 accumulation of coal in these licence areas is in the Melbourne trough Peter O’Shea Graeme McLaughlan of the Port Phillip Basin. This brown coal deposit is the largest in Manager Geological Mapping Manager, Northern Region Australia outside of the Gippsland Basin. Johnson’s Well Mining NL, has embarked on and Bendigo immediately attracted early min- Telephone: (03) 9412 5093 Chief Mining Inspector “A potential gas resource of 0.5 trillion cubic feet could occur in this a 500-square kilometre geochemical sam- ers, much of Victoria’s gold potential is Telephone: (03) 5444 6689 Roger Buckley area alone. This potential gas resource is located close to the pling program. masked by cover which would have defeated Manager Mineral Resources John Mitas Melbourne market and adjacent to existing pipeline infrastructure.” Using augers to drill for soil samples, the sur- their early efforts. Telephone: (03) 9412 5025 Manager, Southern Region The prospectus adds that the Anglesea brown coal deposit was being vey is the first step in a major project to iden- In its annual report to shareholders, Mr Chief Inspector of Quarries mined at a rate of approximately one million tonnes a year (by Alcoa) tify gold resources which may lie under the Gutnick, who is chairman of Johnson’s Well, Graham Gooding Telephone: (03) 9412 5083 and the retrieved coal used to generate electricity. thin alluvial cover in much of the region. said the move into Victoria was a major devel- Regional Manager Ballarat While outcropping gold areas such as Ballarat opment for the company. Telephone: (03) 53 336 521 Doug Sceney “The same coalbeds that outcrop in the Anglesea coal mine are known “The decision to focus on gold exploration in Environmental Manager from existing drilling results to extend in EL 4510 (now owned by this region is based on the view that Victoria, Guy Hamilton Telephone: (03) 9412 5107 Eastern Star),” it adds. “This area of coal development is also an attrac- Regional Manager Bendigo tive gas exploration target.” which is recognised as one of the world’s Telephone: (03) 5444 6697 Horacio Haag major gold provinces, had been grossly under- Manager, Petroleum Operations, Eastern Star Gas directors note that, “There has been no previous explored in the 20th century,” Mr Gutnick Chandri Nambiar Safety and Environment brown coalbed methane exploration activity in the area or anywhere said. Manager Marketing Development else within Australia.” “Large areas in the north of Victoria are under Telephone: (03) 9412 5061 Telephone: (03) 9412 5101 The company is aiming to issue 50 million shares at 20 cents each to thin cover that would have obscured gold min- Fax: (03) 9412 5155 MINERALS AND raise $10 million. Eastern Star Gas is led by Dr Wynford Davies, the eralisation from 19th century prospectors.” PETROLEUM POLICY: PETROLEUM DEVELOPMENT: non-executive chairman. Dr Davies was previously the managing direc- The acquisition of a tenement block of this Fax: (03) 9412 5156 John Lambert tor of Queensland Nickel. The managing director is Denis Morton, for- size, within such a historically important gold merly managing director of junior petroleum company, Stirling Manager Minerals and province that has seen little modern explo- Kathy Hill Resources NL. Petroleum Policy ration, presents a wonderful opportunity for Manager Petroleum Developments Telephone: (03) 9412 5068 Interest is also being shown in the potential of Victoria’s vast Gippsland the company. Telephone: (03) 9412 4208 brown coal deposits for coalbed methane production. INFORMATION: Kourosh Mehin Janne Bonnett Exploration licence applications for coalbed methane from brown coal Acting Manager Petroleum Resources Manager Minerals and have been lodged by another company, CBM Resources, over the east- Above: Johnson’s Well Mining staff reviewing Telephone: (03) 9412 5074 Petroleum Reference Centre ern LaTrobe Valley and Gippsland coast. plans in the field. Telephone: (03) 9412 5022 Above left: Folded and faulted sandstone and shale FOR MORE INFORMATION CONTACT: Fax: (03) 9412 5157 typical of the host rocks for Victorian gold. Dr Wynford Davies, Chairman Telephone (02) 9232 6550 Left: Locality plan for the Violet Town project.

4 5 PROSPECTING DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Brown coal deposits Tel: +613 9412 5020 Fax: +613 9412 5150 Gutnick goes for gold at Violet Town

4 5 PROSPECTING REGULAR FEATURE

Cuttings on the side of country roads provide a useful guide to identifying geological features across the state. But where potential gold deposits lie under recent alluvial cover (below) the geological detective work becomes more complex, requir- Resurgence is good news for Vic ing sophisticated new exploration tools to pinpoint drilling locations.

“Johnson’s is confident that the latest explo- he Bracks Government has apprec- search by independent Australian and interna- ration and geological interpretation techniques iated and supported the need for tional companies including Santos, Eagle Bay, will lead to the discovery of large gold continuing responsible development of and OMV. deposits in the tenement area.” T the petroleum, mining and extractive Onshore, Santos has enjoyed success in the In its latest quarterly report, Johnson’s Well industries. Port Campbell region and is producing small reported that it had begun fieldwork in the ten- It is rewarding to see the higher levels of activ- but highly profitable fields as well as engaging ement area concentrating on road cuttings and ity in these sectors, particularly in the petrole- in exploration activities. areas of outcrop on its Violet Town project. um exploration and mineral sands areas. New entity, Essential Petroleum, is also look- “Of particular interest were the old gold work- In this issue of Discovery you will read that ing forward to moving to an active explo- ings, more deformed structural zones and petroleum exploration is again on the rise and ration phase. Lakes Oil continues its long- areas of intense quartz veining. may well see its most active season for a term quest in onshore Gippsland and has been “The regional geology and geophysics have decade. drilling. been synthesised with the aim to better under- This activity arises from a number of factors, Esso and BHPP, encouraged by high oil stand the areas under alluvial cover.” including the high world oil price. The con- prices and profits as well as breakthroughs in struction of major gas infrastructure in the last exploration technology, have now proposed to Mr Gutnick said the geochemical survey of two to three years, including the Eastern Gas drill their first wildcat exploration well for the region, allied with the geological synthe- Pipeline to New South Wales (completed in several years. sis, would allow the company to better under- September 2000), has also exposed the area to They are also proposing the largest three- stand the areas under cover. new markets. dimensional seismic program in the region’s This would then allow the company to follow The encouragement of investment in petrole- history, covering 3500 square kilometres over the initial program with more detailed sam- um exploration, both on and offshore, has much of the northern Gippsland production pling and drilling. been an important focus of the early imple- license and areas. Mr Gutnick said meetings with state politi- mentation of the government’s Minerals and cians and local councils had already begun Petroleum Policy Statement which I delivered Victoria’s resource industries are substantial wealth- with a view to establishing a “sound working in Parliament in June last year. relationship” with local communities and indi- Victoria encouraged and provided major assis- generators through direct and indirect employment, local viduals who may be affected by the compa- tance to the Commonwealth for the joint off- ny’s planned exploration activities. shore release of the deeper water areas. industry supply, as well as direct revenue from royalties. Since the gold rush of the 1800s, few major These areas have excited considerable interest new gold resources have been located in among major global and domestic explorers Victoria, although the Victorian Government's and the ultimate bidding response will attract In the policy statement, I spoke of the recent intensive program of aeromagnetic and the attention of the industry internationally. Government’s commitment to developing gravity surveys over much of the state under The release of these deepwater and other areas these industries and the substantial wealth the Victorian Initiative for Minerals and generating capability they have for the state was supported by comprehensive ‘VIMP’ Candy Broad Petroleum has provided all explorers with a reports which I am advised are being well through direct and indirect employment, sup- Minister for Energy and Resources major boost. received by the industry. plying local industry, as well as direct revenue from royalties. A company spokesman said the provision of In addition, the work has increased in pace to the data free of charge by the government was ensure that the large volumes of critical petro- Importantly, these industries have provided a major incentive which drew Johnson's Well leum data acquired during the past 30 years of exposure to some of the nation’s most gifted to Victoria. exploration and development are being pre- business and scientific intellects and exper- He added that any decision on the next stage served and made retrievable to today’s new tise. of exploration by the company in Victoria had explorers. The exploration stage is so important for the yet to be decided by the company’s board of Victoria is seeing these policies bear fruit long-term future of the industry and it is very directors. through the influx of new companies investing encouraging to see the return to higher levels in the region. of activity. Following the acquisition of costly new reflec- I wish these explorers every success. FOR MORE INFORMATION CONTACT: tion seismic data in western Victoria, the Origin/Woodside/CalEnergy consortium is Peter Harold, Investor Relations Manager putting forward exploration wells for drilling Johnson's Well Mining this year and Strike Oil is proposing both Telephone (03) 9234 1133 wells and seismic data acquisition. Or visit:www.jwm.com.au Woodside is also active in the offshore Gippsland area and has been joined in the

6 7 PROSPECTING REGULAR FEATURE

6 7 GAS DEVELOPMENTS Gas links grow fast

he rapidly expanding natural gas Victoria’s rapidly expanding gas pipeline network pipeline network radiating from is set to link the state with both South Australia and Victoria is set to grow even faster with Tasmania to add to the existing NSW gas pipeline grid connection. The growing number of interstate two more interstate links moving gas pipeline connections is helping to create a T towards construction. national gas grid, a way of delivering greenhouse Duke Energy has confirmed plans to build a friendly natural gas to the whole country. new gas pipeline from the Longford gas hub in Gippsland to Tasmania, and has already secured foundation customers to support the The 305 km offshore pipeline will rest on the $380 million project. seabed of Bass Strait, while the 430 km They include Australian Bulk Minerals, which onshore pipeline will stretch to Port Latta in operates an iron ore pellet plant near Stanley the north west, and to Hobart in the south. on Tasmania’s north west coast and power The pipeline is expected to be completed in generator, Hydro Tasmania, which have both the first half of 2002. agreed to buy gas when it comes ashore in Gas will be sourced from Esso Australia and Tasmania. BHP Petroleum in Victoria. These were the Meanwhile, the South Australian Government only companies able to demonstrate adequate is moving towards a short list of gas pipeline long-term reserves and supply competitively builders to construct a new line linking the priced gas to meet DEI’s timetable, Mr Victorian gas grid with Adelaide to overcome Williamson said. a major shortfall looming in the South He added that an extensive community con- Australian market within the next few years. sultation program was now well underway. Gas supplies in the Cooper Basin in north- “We will be working closely with all of the eastern SA and south-west Queensland are various community and government stake- running low and will have to be bolstered by “In the short term, we expect construction of the pipeline will employ about 900 people,” he holders over the coming months to ensure supplies from interstate if SA is to avoid gas selection of the best possible pipeline route shortages. said. “In the longer term, experience in other parts of Australia indicates that where gas within the identified corridor,” he said. Victoria is a natural supplier to the market. enters a market for the first time, growth and Mr Williamson said the project was the most Victoria’s western region gas pipeline network addressed prior to the introduction of this new “We have now reached agreement on a com- Basslink is an undersea electricity connection jobs follow.” complex project Tasmania had encountered in form of energy to the state but DEI has the mercial arrangement.” between Tasmania and Victoria which will already stretches to the SA border and is decades, but the benefits were numerous. linked directly into the main grid supplied The pipeline will start at Longford in Victoria, resources and experience to make this project Gas will be a very important backup for Hydro offer two-way power sharing between the from both Bass Strait and the Otway Basin cross Bass Strait, and come ashore in the region “There are significant infrastructure, legisla- a reality,” he said. Tasmania’s hydro-electric system in the lead- states. fields in the Warrnambool region. north of George Town (near Launceston). tive and regulatory considerations to be DEI, a wholly owned subsidiary of Duke up to Basslink. “At the moment, our oil-fired Bell Bay power Duke Energy, which last year completed the Energy, is one of the world’s major interna- station provides our backup in the event of Longford to Sydney gas pipeline, now plans to tional energy companies offering energy trad- prolonged drought,” Mr Willis said. start construction of the line to Tasmania in ing and marketing, risk management, natural But, he added: “With world oil prices the mid-2001. gas and power development expertise and way they are and Australia’s weak dollar, oil operations services across Latin America, Duke Energy President, Bruce Williamson, is a very expensive power generation option. Europe and the Asia Pacific. said the Tasmanian Government was working So converting Bell Bay to gas makes very on the appointment of a gas reticulator to sell DEI’s Asia Pacific energy portfolio includes good commercial sense for Hydro Tasmania. gas in Hobart, Launceston and other areas of 1585 km of natural gas pipelines in operation “On a broader scale, the advent of gas will the state. and under construction, 780 gross megawatts make the overall energy market more com- Onshore surveys and environmental assess- of thermal power generation, and energy trad- petitive and, once we have Basslink as well, ment studies were already underway in ing and marketing located in Australia, New the total energy market in Tasmania will be Tasmania. Zealand and Indonesia. on the same footing as in mainland “The offshore pipeline construction contract Hydro Tasmania’s chief executive, Geoff Australia.” will be let in early 2001 with the onshore con- Willis, said the project was an important plank in Tasmania’s development and would stimu- struction contract to be let by mid 2001,” he FOR MORE INFORMATION CONTACT: added. late new development and help expand exist- Mr Williamson said that the pipeline would ing industries. Michelle Barry, Public Relations manager provide open third party access to any other “We have been negotiating with Duke for Duke Energy International party wanting to transport gas to Tasmania and some, time on the conversion and use of our Telephone: 0414 790 480 would offer competitively-priced gas to indus- Bell Bay power station for the gas project,” Mr or visit www.duke-energy.com.au try, business and households. Willis said.

8 9 GAS DEVELOPMENTS Gas links grow fast

8 9 OIL EXPLORATION OIL EXPLORATION

major upswing in petroleum Gas marketing and development exploration drilling in Victoria is The Minerva-Incitec project, which was to predicted for this year. This follows provide gas from the 1993 Minerva discovery increased activity in 2000, after a as feedstock for a proposed Incitec/BHP fer- A couple of flat seasons. tiliser plant near Geelong, was deferred indefi- Three wells were drilled onshore in the nitely in response to depressed fertiliser prices. Gippsland Basin during the 1999/2000 fiscal The Western Underground Gas Storage year and two more in the onshore Otway Basin. Facility (WUGS), operated by Texas Utilities But the forecast for this calendar year is for a and using the Iona Field, has been producing major upswing in both on and offshore explo- gas into the SW Pipeline since July 1999. ration drilling as companies bring forward The facility supplied up to 130 TeraJoules a commitments to capture rig availability. day (TJ/d) but compressors installed in the Wells will be drilled both in the Gippsland and Spring of 2000 will enable injection rates of Otway Basins offshore and onshore. up to 200 TJ/d. Figure 3 Gippsland Basin- Oil and Gas Fields, Permits and Pipelines Projections are for the best exploration The Eastern gas pipeline, extending 795 km drilling year in a decade, contingent on sever- from Longford (near Sale) to Horsley Park, al board-level approvals within individual just north of Sydney, was commissioned in companies (see Fig. 1). August 2000, in time for the Olympics. Development drilling peaked in Gippsland last Capacity is currently 65 PetaJoules a year year at 44 wells, although the rate is expected to (PJ/yr) but can be increased to 110 PJ. Total fall to nine overall in 2001 as the major workover project cost was approximately $490 million. campaign by Esso/BHP draws to its end. Contracted maximum daily quantities are While the deregulation of the Australian gas falling from 991 TJ/d in 2000 to 861 TJ/d in industry has stimulated onshore gas develop- 2001 and down to 848 TJ by 2005 providing some more potential for new market partici- The growth in natural gas demand, driven by the pants (See VENCorp Annual Gas Planning Figure 1 - Exploration wells, Victoria (1984/85 - 1999/00) expanding natural gas pipeline network, is being Review November 2000, available on the translated into new gas exploration drilling activity VENCorp website). Gippsland Offshore Otway Offshore Gippsland Onshore Otway Onshore Murray across the state, both onshore and offshore. An existing contract to supply liquefied natur- 20 al gas (LNG) ends in December, 2002, pro- ment, changes to the Victorian Petroleum Act viding an additional need for peak-demand 18 1998, which came into effect on December 1, day supply after that time. New connections to 1999 and the supporting Petroleum 16 the market include Colac, west of Melbourne, Regulations 2000, which were put in place in and a 13.5 km proposed connection to the Loy July last year, have streamlined the operation 14 Yang B plant for gas-fired power generation of petroleum exploration in the state. for auxiliary firing. Duplication of the 12 The Petroleum Act 1998 replaced the 1958 Brooklyn to Corio pipeline in the western Act and introduced many fundamental MelbourneÐGeelong area is also planned. South Australia for power generation, which The Kipper field, the largest discovered field 10 changes including: Duke received major project facilitation status could be supplied by Minerva, other Otway not completely owned by the Esso/BHP joint ¥ Enshrining competitive tendering for acreage from the Commonwealth for the Longford to 8 Basin or Bass Strait gas. venture, has been remapped using new high- and transparency in the award process; Bell Bay (Tasmania) pipeline and recently New fields under consideration for develop- quality 3D seismic and confirmed, with earliest approved the project at board level. First gas 6 ¥ Permits being awarded for five-year terms ment include OMV’s Patricia Baleen Field in production as soon as 2004/5. The field strad- from the Longford plant is proposed for win- subject to renewal for a further five years Gippsland (Figure 3), subject to board dles the Esso/BHP L/9 production license. 4 ter 2002 (subject to approvals). with 50% relinquishment, then full relin- approval in Austria. This low CO2 high- Other potential gas field developments in the quishment 10 years after initial award. This A pipeline from the Bream A is being planned methane gas field could produce gas to a small next five years include Woodside’s 2 replaces the much shorter two-year initial to produce the Bream Gas Cap starting in plant in the Orbost area for transmission to the Basker/Manta/Gummy field complex south of term, with one-year renewal; 2002, which could supply Tasmania. Kipper, the Santos nearshore Golden Beach 0 Victorian or NSW markets. The project is 84/85 85/86 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 ¥ Providing greater clarity for land access and Other pipeline projects that have been under preparing its joint State/Commonwealth envi- field, the Shell Sole field to the east and the compensation; consideration include a pipeline from Iona to ronmental assessment. Turrum gas field under the Marlin field.

10 11 OIL EXPLORATION OIL EXPLORATION

¥ Providing for special access authorisations Figure 2 - Pipelines and Permits November 2000 and retention leases; ¥ Providing production licenses for the life of Activity upsurge forecast the field rather than 15 years; ¥ Recognition of gas storage; and ¥ Clarification of data submission requirements The regulations replace the 1992 regulations and align with the new Act. By Kathy Hill Victoria’s Minister for Energy and Resources, Manager Petroleum Developments, Candy Broad, has announced that a review of the 1967 Pipelines Act will also take place in Minerals and Petroleum Victoria this term (See ministerial statement, June 2000). major upswing in petroleum Gas marketing and development exploration drilling in Victoria is The Minerva-Incitec project, which was to predicted for this year. This follows provide gas from the 1993 Minerva discovery increased activity in 2000, after a as feedstock for a proposed Incitec/BHP fer- A couple of flat seasons. tiliser plant near Geelong, was deferred indefi- Three wells were drilled onshore in the nitely in response to depressed fertiliser prices. Gippsland Basin during the 1999/2000 fiscal The Western Underground Gas Storage year and two more in the onshore Otway Basin. Facility (WUGS), operated by Texas Utilities But the forecast for this calendar year is for a and using the Iona Field, has been producing major upswing in both on and offshore explo- gas into the SW Pipeline since July 1999. ration drilling as companies bring forward The facility supplied up to 130 TeraJoules a commitments to capture rig availability. day (TJ/d) but compressors installed in the Wells will be drilled both in the Gippsland and Spring of 2000 will enable injection rates of Otway Basins offshore and onshore. up to 200 TJ/d. Figure 3 Gippsland Basin- Oil and Gas Fields, Permits and Pipelines Projections are for the best exploration The Eastern gas pipeline, extending 795 km drilling year in a decade, contingent on sever- from Longford (near Sale) to Horsley Park, al board-level approvals within individual just north of Sydney, was commissioned in companies (see Fig. 1). August 2000, in time for the Olympics. Development drilling peaked in Gippsland last Capacity is currently 65 PetaJoules a year year at 44 wells, although the rate is expected to (PJ/yr) but can be increased to 110 PJ. Total fall to nine overall in 2001 as the major workover project cost was approximately $490 million. campaign by Esso/BHP draws to its end. Contracted maximum daily quantities are While the deregulation of the Australian gas falling from 991 TJ/d in 2000 to 861 TJ/d in industry has stimulated onshore gas develop- 2001 and down to 848 TJ by 2005 providing some more potential for new market partici- The growth in natural gas demand, driven by the pants (See VENCorp Annual Gas Planning Figure 1 - Exploration wells, Victoria (1984/85 - 1999/00) expanding natural gas pipeline network, is being Review November 2000, available on the translated into new gas exploration drilling activity VENCorp website). Gippsland Offshore Otway Offshore Gippsland Onshore Otway Onshore Murray across the state, both onshore and offshore. An existing contract to supply liquefied natur- 20 al gas (LNG) ends in December, 2002, pro- ment, changes to the Victorian Petroleum Act viding an additional need for peak-demand 18 1998, which came into effect on December 1, day supply after that time. New connections to 1999 and the supporting Petroleum 16 the market include Colac, west of Melbourne, Regulations 2000, which were put in place in and a 13.5 km proposed connection to the Loy July last year, have streamlined the operation 14 Yang B plant for gas-fired power generation of petroleum exploration in the state. for auxiliary firing. Duplication of the 12 The Petroleum Act 1998 replaced the 1958 Brooklyn to Corio pipeline in the western Act and introduced many fundamental MelbourneÐGeelong area is also planned. South Australia for power generation, which The Kipper field, the largest discovered field 10 changes including: Duke received major project facilitation status could be supplied by Minerva, other Otway not completely owned by the Esso/BHP joint ¥ Enshrining competitive tendering for acreage from the Commonwealth for the Longford to 8 Basin or Bass Strait gas. venture, has been remapped using new high- and transparency in the award process; Bell Bay (Tasmania) pipeline and recently New fields under consideration for develop- quality 3D seismic and confirmed, with earliest approved the project at board level. First gas 6 ¥ Permits being awarded for five-year terms ment include OMV’s Patricia Baleen Field in production as soon as 2004/5. The field strad- from the Longford plant is proposed for win- subject to renewal for a further five years Gippsland (Figure 3), subject to board dles the Esso/BHP L/9 production license. 4 ter 2002 (subject to approvals). with 50% relinquishment, then full relin- approval in Austria. This low CO2 high- Other potential gas field developments in the quishment 10 years after initial award. This A pipeline from the Bream A is being planned methane gas field could produce gas to a small next five years include Woodside’s 2 replaces the much shorter two-year initial to produce the Bream Gas Cap starting in plant in the Orbost area for transmission to the Basker/Manta/Gummy field complex south of term, with one-year renewal; 2002, which could supply Tasmania. Kipper, the Santos nearshore Golden Beach 0 Victorian or NSW markets. The project is 84/85 85/86 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 ¥ Providing greater clarity for land access and Other pipeline projects that have been under preparing its joint State/Commonwealth envi- field, the Shell Sole field to the east and the compensation; consideration include a pipeline from Iona to ronmental assessment. Turrum gas field under the Marlin field.

10 11 REGULAR FEATURE REGULAR FEATURE Industry News Industry News

Alliance invested in a new health care company proceed, we will acquire the tenements from deposit and nearby targets that show signs of PLACER DOME COMES TO VICTORIA called Allmed Technologies Limited last Ballarat on a royalty basis.” additional mineralisation.. SONS OF GWALIA INCREASES One of the world’s major gold producers, March, but the collapse of the technology sector “As part of this process, we intend to form a The start of the new program was conditional on MINERAL SANDS INFLUENCE Canadian based Placer Dome Inc, has moved caused the company to reject the deal and return joint venture to offset some of the financial risk, an acceptable extension of the option agreement Intense corporate activity has continued to into Victoria seeking new gold deposits, to gold. Alliance bought into the historic Dunolly- contributing due diligence funding and the under which Austminex had gained access to attracted by the strong potential for new dis- Moliagul and Maryborough gold fields in central surround the Murray Basin mineral sands Maldon plant to the joint venture, with other the Benambra lease from the administrator of province with industry newcomer, Sons of coveries in one of the world’s major gold Victoria last December after securing the rights to financial parties and local technical and con- Denehurst Ltd, the mine’s former operator. provinces. a potential resource of over 180,000 ounces of Gwalia Ltd, acquiring a 20 per cent stake in tracting groups sharing the risks and the gold In the latest quarterly report, covering the explorer, BeMaX Resources. Placer Dome has joined Sedimentary gold in the region through a deal with Ballarat proceeds with Alliance and Ballarat,” he added. three months to December 31, Austminex said Bemax announced a share placement to Sons Holdings in a joint venture on ground near Goldfields NL. The Maldon plant can treat 250,000 tonnes of metallurgical testwork on the Wilga and of Gwalia and a simultaneous rights issue to Beaufort in central Victoria seeking gold tar- The fields were originally owned by Highlake ore a year and is suited to treating ores in the Currawong deposits, incorporating concen- shareholders, fully underwritten by Johnson gets associated with the black shale forma- Resources but went to Ballarat when the two Dunolly-Moliagul and surrounding gold fields. trate regrind tests, had confirmed that higher Taylor Potter Corporate Finance Ltd. The resumption of zinc and copper mining at tions in the area. companies merged in 1999. recoveries and concentrate metal grades could The plant is located at Porcupine Flat, where it The initial placement to Sons of Gwalia was Benambra in north-east Victoria, has focussed A small, truck-mounted scout drilling opera- Alliance now plans to reactivate its moth- be achieved than the rates obtained by the pre- attention on the sensitive environment of the region. has been on care and maintenance for over 18 for 10% of the company, with the shares tion has begun as part of a broad scale geolog- balled Maldon treatment plant to process vious mine operator. months. issued at 24 cents each. Sons of Gwalia will ical program. selected ore zones within the newly acquired “We believe this could be the first of several Austminex has also determined that, to suc- fully sub-underwrite the rights issue. areas, initially focusing on the Harvest-Home Placer Dome produces about three million Victorian gold resources to be mined and cessfully operate the Benambra mine, ultra- SHELL’S GEELONG REFINERY resource at Dunolly-Moliagul to provide eco- The rights issue was made to shareholders on ounces of gold a year from operations in treated in this way,” Mr Andrews said. “This is fine grinding would be a necessary component nomic mill feed. the basis of one ordinary share at 24 cents GOES LEAD FREE Africa, South America, the USA, Papua New a very positive step for the state’s gold indus- of the ore-processing circuit. each for every seven fully paid ordinary shares Guinea and South East Asia. The project could pave the way for other ore try and could lead the way for new projects in Flotation tests are examining the benefits of held at January 31. Shareholders who partici- The Geelong oil refinery, owned by Shell The Sedimentary joint venture is Placer resources in the region to be processed at the region.” regrinding the ore to a size of 15 and 10 pate in the rights issue will also receive one Australia, has stopped producing leaded petrol Dome’s first involvement in Victoria. The Maldon,with the plant operating as a central microns, Mr Robinson said. free option, exercisable at 20 cents and expir- in the latest of a series of developments to facility for a number of gold resources within company told Discovery it had been pleasant- Austminex faces a number of challenges in ing on September 30, for every two new ordi- improve Australia’s fuel quality standards. trucking distance. BENAMBRA LOOKS FOR MORE ly surprised by the enthusiasm that had greet- eventually re-opening the Benambra mine. nary shares subscribed for. Shell is now producing lead free super grade ed the company’s move into the state. Under the agreement with Ballarat, Alliance The reopening of the Benambra base metal “Our work to date has confirmed that the key BeMaX also plans to place additional shares fuel, intended for use as a replacement fuel for has secured the right to acquire the Harvest- mine eastern Victoria has been deferred while A company spokesman said Placer Dome had issues we face in re-establishing mining oper- with Gwalia after the rights issue at a mini- older cars which use super grade leaded fuel. Home project, Dunolly-Moliagul exploration a new a exploration drilling program is con- been attracted to Victoria by the vast amount of ations at Benambra are achieving acceptable mum price of 24 cents/share and a maximum Refinery manager, Karel Pronk, said making licences, as well as the Maryborough and ducted in a bid to locate more ore resources. geological information provided to the indus- metallurgical outcomes from the complex, price of 30 cents/share, depending upon the Geelong refinery lead-free was one of the Campbelltown projects. The projects host The project, which involves the mine being try from the large-scale mapping and aerial fine-grained ores at Wilga and Currawong, market price of the shares, to allow Gwalia to plant’s key environmental initiatives for 2000. potential resources of more than 180,000 reconfigured from its former status as a copper surveying conducted by the Geological Survey negotiating a superior tailings closure strategy reach 19.9 % in BeMaX. The deals will raise “We are striving to make our production ounces. mine into a new life as a primary zinc produc- of Victoria under the Victorian Initiative for with the Victorian Department of Natural $7 million to fund the company’s feasibility cleaner and greener,” he added. Minerals and Petroleum. er, has to be scaled-up to achieve sufficient study on the Ginkgo mineral sands project in Alliance managing director, Peter Andrews, Resources and Environment and a level of The move follows the Federal Government’s economies of scale to justify its re-opening. southern NSW, ongoing exploration in the said the initial focus would be to establish that environmental bonding that is economically decision to ban lead in petrol by 2002. Leaded Since listing on the Australian Stock Murray Basin and working capital. ALLIANCE RETURNS TO the central zone of the Harvest-Home resource sustainable by the project,” Mr Robinson said. fuel is currently being phased out worldwide Exchange late last year, the new operating would provide economic mill feed. Sons of Gwalia Ltd is active in the Murray due to health concerns. VICTORIAN GOLD company, Austminex NL, has continued its Basin through its 50% participation in the Located within 50 kilometres of the Maldon HELP FOR EAST TIMOR INDUSTRY About one in four Victorian cars use leaded Benambra Mine re-opening study. Murray Basin Titanium Joint Venture (with Alliance Gold Mines, former operator of the plant, the project area has a significant alluvial petrol. An additive in Shell lead free super Experience in Victoria’s RZM Nissho Iwai), which owns significant Maldon gold mine and processing plant, has gold mining history and is prospective for But in its latest quarterly report to the Australian lubricates the parts on older cars known as the mining and petroleum tenements in the northern region of the basin. returned to Victorian gold exploration after a shear-hosted, open-pittable deposits. Stock Exchange the company said, that, ‘soft’ exhaust valve seats and helps stop them industries is helping brief foray into the technology sector. Mining consultants, Snowden, have estimated a “Despite positive technical outcomes, the mine Sons of Gwalia and RZM are currently com- from wearing down. re-opening study shows that rising fuel prices, Egidio de Jesus (left) missioning the first Murray Basin mineral resource of 750,000 tonnes at 2.49 g/t gold con- Shell’s Geelong refinery produces about 250 weaker zinc prices and the impact of a deterio- with the task of establish- sands operation (the Wemen project) situated taining 60,000 ounces for the Harvest prospect. million litres of Shell lead free super a year for rating global economic outlook on base metal ing and regulating viable in northern Victoria (see our story on page 2). “We plan to immediately commence a due price forecasts, makes the likelihood of achiev- resource-based industries markets in Victoria, South Australia, diligence program, including some low level In a statement to the ASX, BeMaX directors ing an acceptable rate of return from the current in East Timor. Queensland and Tasmania. exploration to confirm the economic viability said, “The Board believes the agreement with mineral resources at Benambra too uncertain.” of the prospective central zone at Harvest- Egidio visited Victoria recently through the Gwalia represents a significant step towards Home,” Mr Andrews said. “If we decide to The report added: “Financial modelling indi- East Timor Training Partnership, initiated by the realisation of the value in the Ginkgo pro- BENDIGO TRAGEDY cates that an economically robust project under DNRE, to provide training for East Timorese ject for all shareholders, as it will provide the A young miner was tragically killed in Bendigo prevailing circumstances requires economies in public administration in the natural company with the funds required to complete on February 1. Patrick Thomas Stevens, 19, of Scout drilling by Placer Dome Inc near Beaufort of scale that only additional mineral resources resources and environment areas. the Ginkgo project feasibility study. Tarnagulla died when he became trapped in in central Victoria is the first stage of a potentially and consequent ore reserves can provide.” He visited many of Victoria’s mining and “The agreement preserves for all shareholders machinery while working 400 metres under- much larger project by the international gold producer. Geologist, Gary Sparks, was brought to As a result, the Austminex board has now petroleum operations while looking at how their participation in the considerable upside ground and died from severe crush injuries to Victoria by the company to conduct the first pass approved an immediate start to a new explo- our extractive, mining and petroleum indus- which the Board believes exists in the compa- his torso. The incident at Bendigo Mining’s drilling program. ration program to test extensions of the Wilga tries are operated and regulated. ny’s Murray Basin assets.” Carshalton site is still being investigated.

12 13 REGULAR FEATURE REGULAR FEATURE Industry News Industry News

12 13 REGULAR FEATURE REGULAR FEATURE Victoria’s mineral, oil and gas resources

14 15 REGULAR FEATURE REGULAR FEATURE Victoria’s mineral, oil and gas resources

14 15 CONSERVATION NEWS

Far left: Anglesea Heath park ranger Kate McMahon explains the region’s unique features to Alcoa’s general manager of Victorian operations, Peter Burgess. Alcoa has operated a coal mine and power station in the heathland since the early 1960’s, providing a useful buffer which has protected much of the region’s natural flora and fauna. Left: The Blotched Sun-orchid is just one of the heath’s vulnerable species. Picture courtesy of John Eichler. The heathland, (middle) is also one of the few The heath is also home to one of the last In 1961 the then Mines (Aluminium Agreement) remaining habitats for the Powerful Owl (below), remaining populations of the critically endan- Act, 1961 allowed Alcoa to build a power station of which less than 50 nesting pairs are known to gered New Holland Mouse and the Powerful which started producing power in the late 1960s. exist in Victoria. Picture courtesy of Ed McNabb. Owl, of which only about 50 nesting pairs are The Act gave Alcoa access, through a lease, to thought to remain in Victoria. explore for and mine brown coal within the association with universities and these focus on the Anglesea Heath. Those research pro- In a speech at the launch of the heath protection Anglesea Heath until 2011, with an option to grams are providing valuable data for the pre- strategy recently, Peter Burgess, Victorian opera- renew the lease for an additional 50 years. sent and the future management,” Mr Burgess tions general manager for Alcoa World Alumina, The brown coal Alcoa found in the area is low said. said protection of the heath was a major part of in moisture and high in energy, making it a Alcoa’s operating strategy for the area. very efficient power generation fuel, provid- Anglesea coal mine manager, Chris Rolland, said that the first major work undertaken with “At first glance the heath looks fairly drab but ing Alcoa with the opportunity to build sub- the funding, as well as cash from Parks you only need to take a few steps into it to see stantial Victorian assets which now generate Victoria and the Corangamite Catchment the beauty. It’s the sort of place that sneaks up exports from the state worth more than $624 Authority, was to extensively upgrade the on you,” Mr Burgess told the gathering at million last year. Cecil Track. Anglesea. “I’ve been here a number of times Ð Alcoa directly employs about 2000 people “The track was unusable, but meandered and each time I’ve visited I’ve admired the thoughout Victoria with about 1200 at its through a part of the heath which provided a surroundings, learning more as I go. It takes Point Henry and Anglesea operations. It showcase of the region’s unique attractions,” time in the heath to gain an understanding of employs another 6,000 in a range of sectors Mr Rolland said. “Most of the work centred supplying energy, goods and services. around a river crossing (Marshy Creek) which Mr Burgess said Alcoa’s Victorian operations was being destroyed by uncontrolled traffic pumped well over $1,000 million into the which was widening the crossing as each track Australian and Victorian economy each year. became degraded.” Alcoa’s sales of alumina and aluminium last year totalled $2.6 billion, but the company has Now a concrete ford that controls the crossing New protection deal for heath point and doesn’t interfere with water flow long taken a leading role in rehabilitation of its mines and industrial sites around Australia. has been built, with the remaining money spent on resurfacing the track. its beauty.” Alcoa operates a brown coal mine It is still the only mining company in the at Anglesea to fuel its 150 megawatt power world on the United Nations’ Global Roll of Several old gravel pits on the heath that were station which provides electricity for the Honour, an award granted for excellence in eroding badly and resisting earlier rehabilita- ne of Victoria’s most important restoration of the area with the work and Alcoa aluminium smelter at Point Henry, near rehabilitating the jarrah forests of Western tion attempts were also reclaimed. Gravel from the area was placed on Cecil Track, coastal heathland reserves, the staffing to be funded jointly between Alcoa Geelong. Mr Burgess said the deal between Australia where Alcoa mines bauxite. “We which in turn made rehabilitation of the old Anglesea Heath, will be protected and and Parks Victoria. The Anglesea Heath con- industry and government was unique. apply our lessons in rehabilitation across all gravel pit area easier, due to easier slope O restored under a major new program tains a large array of native Victorian plants “We are entering into a unique and what we our operations Ð as well as in the Landcare angles. initiated by aluminium producer Alcoa of but is best known for its wild populations of consider to be a most important partnership projects that we support in Victoria and Australia, one of Australia’s biggest mining the Anglesea grevillea and Anglesea slender with the Department of Natural Resources and Western Australia Ð and those lessons are used Alcoa has also used NHT funding (through and industrial companies and the Victorian orchid, both only found in the area. Environment,” he said. here,” Mr Burgess said. ANGAIR) to rehabilitate another gravel pit site and plans to use the remainder of funds on Department of Natural Resources and He said, “This lease covers more than 7200 identified track closures and other areas that Environment. hectares and our current operations occupy been damaged by indiscriminate recreational about 7 per cent of that. Initially, we didn’t go The area, a diverse and spectacular haven for to discuss proposed additions to the National vehicle use. flora and wildlife, covers 7,200 hectares of large- out deliberately in the early days to protect the Heritage-listed area within the Anglesea “We have carried out many projects already, ly untouched natural coastal heath on Victoria’s heath and were prevented from doing so by Heath. “During these discussions it was funded internally, that have covered rehabilita- rugged south-west coast near Anglesea. the very Act that established the area as a min- agreed there was a need for a more strategic ing lease. We kept to the area we needed to approach to the management of the heath,” Mr tion of despoiled areas, track closures and Seventeen years ago the Anglesea Heath was mine and worked at that as a best-practice Burgess said. maintenance and signage,” Mr Rollands a blackened ruin, a victim of the devastating operation Ð including rehabilitating areas after added. A consultative committee including Alcoa, Ash Wednesday fires which rushed across mining.” Parks Victoria, Surf Coast Shire, The much of Victoria’s western districts. Under a FOR MORE INFORMATION CONTACT: deal announced late last year between Alcoa “But the local community’s strong and diverse Anglesea and Aireys Inlet Society for the and the Victorian Government, measures to interests in the heath was the impetus behind Protection of Flora and Fauna (ANGAIR), the Joan McGovern protect and restore degraded areas of the heath Alcoa and the Department of Natural Geelong Environment Council, and staff from Public Relations and Landcare Manager have been established. The agreement pro- Resources and Environment approving the the School of Biology and Chemical Sciences Victorian Operations, Alcoa agreement partnership for managing the vides protection for the heath with day-to-day at Deakin University at Geelong all con- Telephone (03) 5245 1257 Anglesea Heath. tributed the management plan. management by Parks Victoria rangers. or 0438 303 417 (mobile) An Alcoa project officer will work with Parks “In 1996, Alcoa and DNRE gathered a group “As well as community involvement, there are [email protected] Victoria rangers to oversee the protection and of key stakeholders and environmental experts a number of research programs operating in

16 17 CONSERVATION NEWS

16 17 BENDIGO GOLD BENDIGO GOLD Bendigo to fast track new mine decision

endigo Mining plans to fast track a Left: Bendigo Mining’s ore crushing and stacking 12.3 million ounces. But, while enthusiasm in Only a small proportion of this material will decision on full-scale development of plant could soon be put to work processing new ore Bendigo remains high, the lack of sharemarket be treated at the New Moon Plant at the New Bendigo gold field, with a from the underground workings. Bulk sampling has interest in gold companies has hurt the com- Eaglehawk. Underground drilling at Bendigo proved the validity of the ‘ribbon repeat’ theory pro- view to making a decision on full-scale pany’s prospects for raising new capital to is now taking place from three locations along B posed by Bendigo Mining which could lead to the mining by early 2002. discovery of economically viable new ore reserves. continue the project. the decline path, with drilling crews working Mr Philip said: “Bendigo Mining NL is one of around the clock shifts, 7 days a week. In a report to the Australian Stock Exchange Right: Mining was integral to Bendigo’s develop- the few stocks that has held the line during this late in January, the company's managing ment in the 1800’s but could again become a pow- Meanwhile, dewatering of the old workings is director Doug Buerger said: “We are raising erful economic force in the region. The Swan difficult period. But as we move forward, rais- continuing with pumping from the decline as funds to advance the decline down to the gold decline has now reached 550 metres below the city. ing the required capital on reasonable terms well as the Red White and Blue Consolidated, bearing reefs and to do the planning necessary may be difficult.” New Moon and Carshalton shafts. for a production decision.” ¥ clearly demonstrate the existence of The Swan Decline now extends 3,520 metres The water is pumped to evaporation ponds at from the portal at the Carshalton site in A report on the status of unmined ribbons beneath historically mined Woodvale. Repairs to the walls of the old ponds Kangaroo Flat, putting the tunnel more than its exploration program lines of reef; at Woodvale have been completed although 550m below King Street in central Bendigo. heavy rain late last year delayed the work. on the Bendigo goldfield ¥ show that the ‘repeat ribbon’ theory is robust; has again increased confi- Now that Bendigo Mining is concentrating on ¥ demonstrate that the spatial controls are so dence in the size and bulk sampling, the associated development well understood that new unmined ribbons FOR MORE INFORMATION CONTACT: grade of reefs and shown headings off the main decline are much smaller. can be consistently intersected by drilling; that the geological model These tunnels measure 3m x 3.5m compared Doug Buerger, managing director ¥ demonstrate that the 10 million ounce poten- Peter Phillip holds across the extent of to 5m x 5.5m in the main decline which is Bendigo Mines NL the field. “This improves tial of the New Bendigo is a robust figure; intended to accommodate ore-haul trucks Telephone: 03 5447 1834 our ability to target the position of new rib- ¥ develop the means of predicting mined when mining starts. Smaller equipment is now Or visit www.bmnl.com.au bons, reduces risk and cost, and boosts confi- grade from drilling by correlating bulk sam- being used to access the quartz-bearing rock. dence in the successful development of a long- pling with fan drilling. life low-cost gold mine,” Mr Buerger said. Mr Philip said Bendigo Mining had accessed Drilling has now identified eight gold-bearing It also found that there is now a high degree of of reef in November, revealed four new ‘rib- one new ribbon from the Swan Decline and reefs in the vicinity of the Swan Decline. predictability of the mineralised structures bon’ structures missed by earlier generations located, through drilling, three new ribbons in Significant intersections include 13.5 m @ giving Bendigo Mining the ability to find new of miners. Assays of drill samples taken from the vicinity of the decline (This has now been 58.1 gAu/t, 13 m @ 11 gAu/t, 16.3 m @ 20.3 targets and to be confident of the success of the four newly-discovered ribbon structures overtaken by the latest exploration work). gAu/t and 9m @ 55.9 gAu/t. That has doubled ongoing exploration. have produced ‘ore grade’ intersections. Mr Philip told shareholders, “The area we are the number of previously known, unmined Mr Buerger said that a bulk sampling program Reporting to the ASX then, the company said: testing from the decline represents less than 5 ribbon structures which Bendigo Mining had conducted late last year had proven that the “Preliminary fire assay results have identified per cent of a 70 square kilometre goldfield, so identified late last year. actual gold grade is significantly higher than what are considered ore grade intersections such we also drilled to test for new ribbons under This, combined with the typical size of the that generally indicated by drilling, because of as 9 metres @ 21.4 gAu/t, 13 metres @ 5.1 gAu/t two lines of reef up to 8km from the decline. reefs of 10 metres wide and 30 metres high, the extreme ‘nugget effect’ at Bendigo. and 13 metres @ 8.0 gAu/t within the reefs.” This drilling targeted and intersected four new “is very encouraging for the prospect of pro- Economic grades are indicated by a combina- Those drilling results and the latest results ribbons. These results demonstrate that the duction,” Mr Buerger said. “The similarities tion of the presence of gold-associated miner- released late in January, have provided addi- ‘repeat ribbon’ theory applies over most of the between the historically mined reefs and the als, alteration of the surrounding rocks and tional confirmation of the validity of the field and that we can predict their location and newly discovered reefs are significant. modest drill-indicated grades. ‘repeat ribbon’ geological model which drill into them.” “The reefs previously mined on the Deborah and Bendigo Mining had originally estimated the augers well for eventual gold production from Shortly before the annual meeting, drilling in Sheepshead lines yielded 650,000 ounces at a gold resource potential of the New Bendigo to the Swan Decline. the Deborah line of reef produced an intersec- recovered grade of 14 gAu/t. Our new reefs lie be 10 million ounces, but that was upgraded to In late-January, the decline had reached the St tion of ‘bonanza grade’ ore, prompting a quick below those previously mined and everything 12.3 million ounces last year after intensive Anthony reef, 550 metres below surface, rethink of priorities for the company. points to them being of a similar size and grade.” drilling and bulk sampling efforts. Now the where development work to enable the collec- But bulk sampling was critical as the ‘nugget- The new reefs are close to the Swan Decline and Bendigo Mining board believes that even the tion of a series of 70 tonne bulk samples was ty’ nature of the Bendigo field makes drill will form the basis for initial gold production. 12.3 million ounce might be conservative. carried out. intersections of gold bearing ore an unreliable The key points of the exploration status report The company’s directors have agreed to raise The samples will be used to correlate the lat- guide to overall grade. Mr Philip also told suggest that the eight new gold-bearing reefs money for a new, year-long drilling program, est drilling results and provide additional cer- shareholders that: “A comprehensive study of discovered so far on the Deborah and aimed at putting the New Bendigo field on an tainty about the location and volume of poten- historical mining records and modeling the Sheepshead lines of reef are of the same size accelerated path towards production. tial gold resources. unmined reefs below the most productive anti- and tenor of gold mineralisation as the shal- Bendigo Mining’s pre-Christmas bulk sam- At the company’s annual meeting in late clines has determined that there is a high prob- lower, historically mined reefs. pling program revealed the likely commercial November, Bendigo Gold chairman, Peter ability of the New Bendigo having 12.3 mil- The report suggested that the gold bearing prospects for future mining on the field. Philip, previously the chairman of US gold lion mineable ounces.” reefs are large, with shapes amenable to mod- Bulk samples, along with intensive diamond giant, Newmont Mining Corp, said Bendigo’s However, the company now expects to be able ern bulk-mining methods. drilling on the Deborah and Sheepshead lines short-term objectives were to: to increase the potential gold resource beyond

18 19 BENDIGO GOLD BENDIGO GOLD Bendigo to fast track new mine decision

18 19 LICENCE REVIEW ON- SHORE EXPLORATION Mineral Licences Gas find - but it’s not commercial October/December 2000

EXPLORATION LICENCES GRANTED wo new gas wells in the onshore Wildcat drilling by Lakes Oil in the Trifon 1 and Gangell 1 wells near Seaspray in East Gippsland TITLE NO. STATUS EVENT MAP PRIMARY OWNER EVENT DATE EXPIRY DATE portion of the Gippsland Basin near Seaspray, aimed at proving a new style has overturned many long held theories about EL 4500 CURRENT GRANT WONTHAGGI GREENPOWER ENERGY PTY LTD 05/10/2000 05/10/2002 where gas might be found in the Gippsland Basin. of onshore hydrocarbon play, have EL 4510 CURRENT GRANT COLAC EASTERN ENERGY AUSTRALIA PTY LTD 05/10/2000 05/10/2002 T The wells proved that gas exists below the LaTrobe EL 4430 CURRENT GRANT WARRAGUL ALPHADALE PTY LTD 06/11/2000 06/11/2002 produced non-commercial gas flows. formation, the region’s main hydrocarbon zone. EL 4519 CURRENT GRANT BACCHUS MARSH MR DANIEL G TOOHEY 15/11/2000 15/11/2002 Lakes Oil Ltd’s Trifon-1 and Gangell-1 wells EL 4520 CURRENT GRANT BEAUFORT SEDIMENTARY HOLDINGS LTD 15/11/2000 15/11/2002 EL 4521 CURRENT GRANT HORSHAM AUSTPAC RESOURCES NL 01/12/2000 01/12/2002 sought to find gas below the basin’s traditional may solve the reservoir problems encountered in EL 4069 CURRENT GRANT OUYEN ILUKA MIDWEST LIMITED 11/12/2000 11/12/2002 reservoir, the Latrobe Group. While gas flowed the latest wells. Mr Annells said, “Lakes will now EL 4073 CURRENT GRANT DANYO ILUKA MIDWEST LIMITED 11/12/2000 11/12/2002 to the surface in both wells, the volumes were too re-interpret the existing seismic over both of these EL 4076 CURRENT GRANT DANYO ILUKA MIDWEST LIMITED 11/12/2000 11/12/2002 small to justify any commercial development. prospects with a view to drilling them during the EL 4508 CURRENT GRANT CORRYONG AUSTRALASIAN GOLD MINES NL 15/12/2000 15/12/2002 Trifon 1 was abandoned on December 29 after EL 4522 CURRENT GRANT NATIMUK BASIN MINERALS HOLDINGS NL 15/12/2000 15/12/2002 second half of the 2001 calendar year subject to EL 4517 CURRENT GRANT COHUNA AUSTRALIAN COALBED METHANE PTY LTD 19/12/2000 19/12/2002 reaching a total depth of 2570 metres and rig availability and financing.” EL 4513 CURRENT GRANT CRESWICK CLUNES GOLD MINES LTD 19/12/2000 19/12/2002 encountering several minor gas producing zones. Lakes Oil now believes it has upgraded the EL 4526 CURRENT GRANT ARARAT P. S. AND G. F. FORWOOD PTY LTD 19/12/2000 19/12/2002 A total of four drill stem tests were conducted potential to discover commercial hydrocar- on the well, three of those tests flowing gas to bons in the onshore Gippsland basin. EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED surface, although at rates not sufficient to sup- The company believes it has proved its theory port commercial operations. TITLE NO. STATUS MAP PRIMARY OWNER EVENT DATE EXPIRY DATE that gas is present in structures below the Further gas indications were also noted on the gas Latrobe formation and is now reviewing all the EL 4332 EXPIRED WILLAURA GEOFFREY J MCDERMOTT 01/10/2000 01/10/2000 recorder at numerous levels as the well was being existing seismic within its Gippsland permits EL 4296 EXPIRED HEATHCOTE BURNS RESOURCES PTY LTD 02/10/2000 02/10/2000 Mr Annells said, “Although no commercial EL 4077 SURR DANYO ILUKA MIDWEST LIMITED 04/10/2000 04/10/2000 drilled according to Lakes Oil chairman, Rob to identify Early Cretaceous age (Strzelecki EL 4075 SURR DANYO ILUKA MIDWEST LIMITED 04/10/2000 04/10/2000 Annells. “Several of the recorded indications were hydrocarbons were discovered in either the Trifon Formation) and Late Cretaceous age (Golden EL 3894 SURR ST ARNAUD FLITEGOLD PTY LTD 04/10/2000 04/10/2000 substantial enough to have been tested under nor- or Gangell wells, the results represent a geologi- Beach Formation) alluvial fans, formed as sed- EL 4239 SURR MATLOCK ALCASTON MINING NL 18/10/2000 18/10/2000 mal circumstance. However, the well bore had cal success. Gas has been successfully recovered iments originally shed from fault scarps. EL 3790 EXPIRED BENDIGO KRALCOPIC PTY LTD 20/10/2000 20/10/2000 to surface in both wells and the core cut during the EL 4364 EXPIRED BACCHUS MARSH MADDINGLEY BROWN COAL PTY LTD 21/10/2000 21/10/2000 become severely washed out during drilling and “These fans are similar in style to that of the drilling of Gangell has confirmed our “fan” EL 3789 SURR COLERAINE P G M MANAGEMENT PTY LTD 15/11/2000 15/11/2000 this option was not available to us.” Mr Annells Kipper Field, located in the offshore portion EL 4454 SURR BALLARAT ALLEGIANCE EXPLORATION PTY LTD 15/11/2000 15/11/2000 told the Australian Stock Exchange. model. We are disappointed that the gas, although of the Basin,” consulting geologist, Jack EL 4440 SURR CRESWICK ALLEGIANCE EXPLORATION PTY LTD 15/11/2000 15/11/2000 Mr Annells said, “Lakes is very encouraged by apparently present in large quantities, was in a Mulready found in a study last year. EL 4345 EXPIRED ARARAT GLENELG MINING PTY LTD 17/11/2000 17/11/2000 reservoir which lacked permeability.” EL 3061 EXPIRED ST ARNAUD SIROCCO RESOURCES NL 03/12/2000 03/12/2000 the results of this well.” Gangell-1, which The best result from the Gangell-1 well was a EL 4242 SURR ROBINVALE BASIN MINERALS HOLDINGS NL 07/12/2000 07/12/2000 reached a depth of 2350 metres, was drilled FOR MORE INFORMATION CONTACT: EL 3589 SURR NOWINGI VICTORIAN GYPSUM PTY LTD 07/12/2000 07/12/2000 immediately after Trifon 1 with more gas indi- gas flow of 23,000 cubic feet of gas a day from EL 4030 SURR NOWINGI VICTORIAN GYPSUM PTY LTD 07/12/2000 07/12/2000 cations. At the time Discovery magazine went drill stem test number 3 over the uphole inter- Robert J. Annells, Executive Chairman, Lakes Oil NL EL 3987 SURR OMEO MINES AND RESOURCES AUSTRALIA PTY LTD 18/12/2000 18/12/2000 to press, Lakes Oil had requested the plugging val 1885-1940 metres which also produced Level 11, 500 Collins St Melbourne Vic 3000 EL 4154 SURR LALBERT MURRAY BASIN TITANIUM PTY LTD 18/12/2000 18/12/2000 and abandonment, as well as temporary sus- 1650 metres of water from the drill string. Tele: (03) 9629 1566 Fax: (03) 9629 1624 EL 4092 SURR CHARLTON PROVIDENCE GOLD AND MINERALS PTY LTD 18/12/2000 18/12/2000 e-mail: [email protected] EL 4371 EXPIRED CHARLTON STRAND MINERALS NL 24/12/2000 24/12/2000 pension of the Gangell-1 well on January 27 The company now has two more prospects named Web site: www.lakesoil.com.au EL 4377 EXPIRED MANSFIELD LEON SAY (BENEFICIARIES OF THE ESTATE) 24/12/2000 24/12/2000 after conducting a total of nine drill stem tests. ‘Hurson’ and ‘O’Hara’, which Mr Annells hopes EL 4376 EXPIRED CASTLEMAINE THE BREAKAWAY GROUP P/L (IN LIQUIDATION) 31/12/2000 31/12/2000

MINING LICENCES GRANTED VICMIN2001 The third conference on Recent Developments in Victoria’s Geology and Mineralisation TITLE NO. STATUS EVENT MAP PRIMARY OWNER EVENT DATE EXPIRY DATE April 26, University of Ballarat MIN 5276 CURRENT GRANT DANYO MR DARREN J. PILGRIM 04/10/2000 04/10/2005 MIN 5300 CURRENT GRANT WARRACKNABEAL MR KENNETH D. PFEIFFER 01/12/2000 01/12/2005 Fitting in with Victoria’s celebrations of the The conference will feature speakers from the • The Belltopper deposit at Malmsbury MIN 5315 CURRENT GRANT WEDDERBURN MR THOMAS HALL 01/12/2000 01/12/2005 Geological Survey, Monash and Ballarat MIN 5309 CURRENT GRANT DUNOLLY MR BRENDAN W SMITH 01/12/2000 01/12/2002 150th anniversary of the discovery of gold, And others. A bulletin in the AIG series with MIN 5238 CURRENT GRANT DUNOLLY TALAGER PTY LTD 04/12/2000 04/12/2010 Victoria’s premier geological technical Universities, and from Industry. Topics to be full papers will be available to all persons MIN 5258 CURRENT GRANT DUNOLLY MR LAWRENCE E. SEWELL 19/12/2000 19/12/2005 conference will be held close to the original presented include: attending. The oral program will be discovery site and major centre of gold • Mineral sands in the Horsham region supported by an extensive poster display MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED production - in Ballarat. A post-conference • Developments in the New Bendigo goldfield covering topics under research or of dinner will be held at the famous Sovereign TITLE NO. STATUS MAP PRIMARY OWNER EVENT DATE EXPIRY DATE • Sediment-hosted disseminated gold geological interest. Hill historic gold village followed by the mineralisation at Daylesford MIN 5044 EXPIRED DUNOLLY KENNETH C SYMES 03/10/2000 03/10/2000 world-acclaimed sound and light show ‘Blood • Tectonic and economic implications of MIN 5137 SURR CASTLEMAINE ADRIAN L TREVORROW 15/11/2000 15/11/2000 on the Southern Cross’. A tour of geological Monitor the AIG website at www.aig.asn.au MIN 4961 EXPIRED DUNOLLY WANBANNA PTY LTD 16/11/2000 16/11/2000 mafic dykes in the Victorian gold province MIN 4203 SURR BALLARAT DATAFAST TELECOMMUNICATIONS LTD 18/12/2000 18/12/2000 and historic points of interest around Ballarat • The gold potential of the basalt for further details as they become available. MIN 5230 SURR DUNOLLY TALAGER PTY LTD 19/12/2000 19/12/2000 and Clunes (site of the first economic gold covered Clunes-Creswick area Or contact Don Cherry, Secretary AIG Victoria ML 1209 CANC MATLOCK MARTIN EXPLORATION PTY LTD 04/10/2000 04/10/2000 discovery in Victoria) will be conducted • Stawell Gold Mine - Exploration Branch, email: [email protected] to on the day after the conference. concepts to ore reserves be placed on the mailing list. ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED

20 21 LICENCE REVIEW ON- SHORE EXPLORATION Mineral Licences Gas find - but it’s not commercial October/December 2000

20 21 SPECIAL FEATURE SPECIAL FEATURE

The alluvial mining operation at Amphitheatre Amphitheatre history was based on mining and processing the higher grade ‘Blue wash’ alluvial gravel delineat- ed by drilling by an earlier company. Alluvial gold was discovered at Avoca and then Amphitheatre early in 1853, causing a Gold mine rehab shows the way large influx of miners to the area in 1854 with the population of Amphitheatre report- A form of strip mining evolved where mining edly reaching 6,000 in 1858. progressed in strips 80 metres wide in incre- ments of 30 metres per pit. This form of min- Other alluvial discoveries in the area included Beaufort in 1854, Mountain Hut and ing continued, with some modification, for the Lamplough in 1858 and Landsborough, in 1862. life of the project. Gold production during the early years from the shallow alluvial deposits was not hey’re turning the environmental Topsoil was pushed off by a bulldozer and recorded but, as the rich alluvial deposits became exhausted, miners followed the clock back 147 years in the Avoca- stockpiled for use in rehabilitation. The aver- leads or palaeochannels, deeper underground. Amphitheatre region of central age four to eight metre thickness of cycle two Deep lead mining started near Beaufort in 1865 and at Avoca in 1866. T Victoria. material was pushed by bulldozer to backfill Mining regulations of the day placed significant restrictions on the size of the claim Sedimentary Holdings Ltd, the last mining the preceding pit. which could be held by individual miners and the legacy of this intensive shallow min- company to work the area, claims that its final When the Blue Wash was exposed, it was dug ing is thousands of shafts and associated mullock heaps spread along kilometres of old rehabilitation work is a model for other com- by excavator and trucked to the ore stockpile drainage channels on what is now privately-owned farmland or Crown land around the pany's wanting to open shallow alluvial mines at the plant site. Blue Wash was usually in the township of Amphitheatre. in Victoria. range of 1.5 to 4 metres thick, and approxi- Evidence of a sophisticated water distribution system comprising dams and several The company began alluvial mining at mately 15 mm of basement was excavated to kilometres of water races still exists at Mountain Hut West. The region then lay idle for Amphitheatre, 13 kilometres southwest of recover any settled gold. almost a century until a hydraulic sluicing operation operated from 1906 to 1909. Avoca, in 1992. During the next eight years, it With the progressive mining technique used, The next major activity started in September 1951, when the Central Victorian Gold extended its operations to the nearby Mountain the pits were backfilled as mining advanced Dredging Company NL started operating with the refurbished Newstead dredge, along Hut, Belfast and Wildebeest deposits to pro- which resulted in a final land surface very the flats and terraces of the present Avoca River within the Amphitheatre lead. duce a total of 28,095 ounces of gold. close to the original. The operation planned to treat two million cubic yards of alluvium a year for 10 years, Falling gold prices during the nineties and tight Tailings in above-ground storage dams were but the dredge sank in April, 1957 and operations ceased. profit margins forced the company to develop capped with overburden and the walls battered After dredging 8 km along the riverbank, the project produced 26,869 ounces of gold new gravity concentration methods and innov- prior to topsoiling and planting. from 5 million bank cubic metres of material. ative mining practices to cut production costs. Mr Devereux said the overriding considera- In 1980, Cyprus Gold Australia Corporation was granted EL892 covering the Belfast The project also established a good reputation ing the shallow alluvial gold and later moving tion in contouring the rehabilitated landform Sedimentary Holdings managing director, Rob deep leads and the undredged area of the Avoca River flats upstream towards as a model for dry alluvial mining with reha- deeper following the leads beneath shallow Devereaux, has presided over the dramatically was that it be compatible with the surrounding Amphitheatre. bilitation of disturbed areas an integral part of cover and leaving thousands of shallow shafts successful rehabilitation at the Amphitheatre natural landscape. the operation. However, despite considerable and associated mullock heaps in their wake. mining operations. Seed collected locally has Cyprus entered a joint venture with Climax Mining in 1984 leading to the Belfast leads and ensured the integrity of the species used in the the Avoca channel being drilled. Sedimentary Holdings entered a joint venture in 1989 with success in these areas, mining operations were Long before Sedimentary Holdings moved in, rehabilitation program. Sandy and Elizabeth Gray of Avoca who had established a plant at Moonambel. shut down in April last year. the Crown Land areas and much of the private In November 1991, the former Climax mining lease was forfeited and awarded to Sedimentary Holdings managing director, Rob farmland had been degraded and was of low periodic gravel extraction. Erosion also had Sedimentary. An operation was subsequently established and produced gold continuously Devereux, said the final rehabilitation work conservation value due to clear felling of the seriously damaged the top soil layer. was a model for other companies which might original forests and the left-over mine holes until economic resource depletion caused its closure in March, 2000. Consequently, the main thrust of Sedimentary want to open shallow alluvial mines in Victoria. and mullock heaps which changed the soil and Holdings’ rehabilitation work was aimed at topography. The company’s rehabilitation work was made improving the conservation value of these more difficult because the area had been exten- Damage and destruction of the under storey blocks and re-establishing a representative collect and is naturally a primary coloniser. Plan” and stock was kept off sown areas until sively mined since the 1850s as successive and ground vegetation had been caused by species mix. the pasture was fully established. waves of diggers moved into the region seek- grazing sheep and native animals, as well as Good regrowth of Yellow Box from seed natu- Before the company began exploration work rally occurring in the topsoil has already A recent visit by a Discovery reporter to the in 1992, it held detailed discussions with occurred at both the Moonambel and Avoca mining sites revealed dramatic pasture Geology of the Avoca alluvials landowners to obtain a landowner compensa- Amphitheatre sites. Plant growth from seed and native tree regrowth in rehabilitated areas. tion agreement. Rehabilitation of the dis- Topsoil was respread from stockpiles, was typically very good. Tree growth at the There is virtually no sign of mining activity in The alluvials generally were deposited in three cycles with the first, and deepest cycle, turbed areas was planned and the cost calcu- although the amount of topsoil varied widely rocky bare Moonambel site has been spectacu- the areas where final rehabilitation is complete, commonly known as the ‘Blue Wash’. This Mesozoic age gravel, the oldest of the grav- lated long before mining began at any of the and, in many of the gravel reserve areas, was lar, particularly the Blue gums in the mix. Trees while other recent restoration work is already el units, overlies an eroded shale/siltstone basement and is generally less than five areas disturbed. virtually non-existent. sown at Mountain Hut in August 1997 have showing promising results. While grazing in developed into trees up to 6 metres tall by some pasture areas has not yet resumed, anoth- metres thick.It is the principal source of alluvial gold at Amphitheatre. After mining, the rehabilitation included con- In areas barren of topsoil, principally on December 2000, boosted by a period of hot, dry er season of consolidation should result in sig- The early diggers shafts generally extend down to basement and the Blue Wash was touring and topsoiling of the disturbed areas Crown land which had been degraded by grav- weather which aided germination and growth. nificantly improved pasture growth. extracted in horizontal drives.The same Blue Wash also represented the major source and replanting the land to pasture or trees if el extraction, the replanted trees grew well on of gold for Sedimentary with the best grade material generally in the bottom half to applicable and replacement of fences. the clean gravelly soil. A flora survey On the gravel reserves, where there was sparse Importantly, landowners in the areas affected one metre of the gravel. Some landholders negotiated special compen- described the existing vegetation and pro- topsoil, the eucalypts and wattles germinated by the mining operation are strongly support- well over winter/spring 1999, especially in the ive of the project which has set new standards Overlying the Blue Wash is a younger, Tertiary-age quartz sand gravel which is far more sation deals for items such as new dams, or posed a seed mix for replanting, that would, in rip lines that trapped moisture and provided a for co-operation between the mining industry widespread than the cycle 1 Blue Wash. The basal quartz gravels overlying the cycle 1 retention of dams which were constructed for time, evolve into a similar forest type. warmer microclimate, Mr Devereux said. and rural landowners. gravel still contained gold and were mined at Amphitheatre as ‘Top Wash’ to produce the mining operation. Acacias were included in the mix as they gold and gravel products. An area of Top Wash at Belfast was of sufficient grade to feed Mr Devereux said landowners recognised that were components of the understory but also Early pasture sowing on rehabilitated areas at FOR MORE INFORMATION CONTACT: the main plant. the compensation rate was attractive for low- to give rapid infilling and provide nitrogen Amphitheatre used perennial pasture seed mixes recommended by the Department of The youngest gravels occur in the present drainage system and are weakly stratified con- value grazing land, that rehabilitation would for eucalypt growth. Yellow Box (Eucalyptus Rob Devereux, Managing director Natural Resources and Environment. taining flat sandstone cobbles with angular and rounded quartz clasts. They were exten- improve land previously blighted with shafts Melliodora), a minor component of the Sedimentary Holdings NL sively mined along the Avoca River flat and adjoining gullies in the goldrush. and mullock heaps, and that their land would original vegetation was not included in The seed mixes were consistent with the Telephone (03) 9329 9884 be returned in a more productive condition. the seed mix as the seed is difficult to “Avoca Catchment Salinity Management

22 23 SPECIAL FEATURE SPECIAL FEATURE

22 23 SPECIALIST METALS SPECIALIST METALS Mobile boom rattles the tin

he growing use of mobile phones and to take a new look at old tin mines with a mining area with potential for the discovery of ing the late 1960’s through to early 1980’s computers has created a demand view to resuming production of their tanta- primary pegmatite hosted and alluvial tanta- intersected significant tantalum/tin minerali- boom for specialist metals and lum content. lum/tin deposits. sation adjacent to and beneath the open pit in T minerals used to produce various One early Victorian tin mine could shortly The remaining licence area covers six known a series of stacked flat-lying pegmatites vary- electronic equipment. become the focus of attention of one of primary pegmatite hosted tantalum/tin ing from three to 15 metres thick. Once regarded as a low-value industrial metal, Australia’s fastest growing tantalum produc- deposits, three of which were formerly mined No drilling went deeper than 70 metres and tantalum, often associated with tin mines, has ers, Australasian Gold Mines, operator of the for tin by shallow open cuts. little or no exploration has been completed in emerged as a major new commodity driven by newly expanded Dalgaranga tantalum project Each of the six prospects has been percussion the area since the early 1980’s. demand from the electronics sector. in Western Australia. or diamond drill tested. However, numerous Early percussion drilling results have never Tantalum is used primarily in capacitors, with- Australasian Gold Mines NL bought an option other targets have been identified that were not been followed up. out which, no circuit board is complete. over the Mt Alwa tin and tantalum project in drill tested by previous explorers. Australasian Gold Mines managing director, the Walwa Tin Field early this year. A global shortage of tantalum (Ta2O5) in the The Mt Alwa deposit was mined as an open Michael Fotios, said: “Significant potential past two years has forced the price from The Mt Alwa project covers 51 square kilo- pit from 1962 to 1968, with the open pit mea- exists for immediate extensions to the peg- around $US40 a pound to well over $US100 metres and is 100 kilometres east of Wodonga, suring 200 metres long, 100 metres wide and matite or for repetitions. a pound, with recent sales at close to $US180 in Victoria’s glorious high country. 20 metres deep. “Mineralisation has been identified in the six a pound. That has caused mining companies In the 1960s, Mt Alwa was a producing tin Percussion drill testing of the pegmatite dur- prospects within a north south zone of pegmatite intrusions measuring 2.5 by 1.2 kilometres.” Mr Fotios said the resource potential adjacent to and beneath the Mt Alwa pit alone, identi- A tantalum boom, driven by the surge in mobile fied by previous exploration, was for 8.64 mil- phone and electronic component usage, has created lion tonnes grading 50 to 100 grams of tanta- new interest in re-opening old tin mines, which often produced large volumes of tantalum. The Mt Alwa lum per tonne and up to and 1,600 grams per tin mine, near Albury, in northern Victoria, is being tonne of tin. explored by Perth-based Australasian Gold Mines. Exploration at other targets within the project Managing director, Mike Fotios, (below right) said had returned significant tantalum results an exploration work program had already been submitted to the Victorian Government. including 15.1 metres at 172 g/t Ta2O5 and 950 g/t Sn from a channel sample across a bench at the Mt Alwa south prospect. mence subject to lodgement of a $5000 bond and approval of the work program. Assays of tin concentrates produced in the 1960’s from one open pit returned 8.1 % tan- Drilling to accurately define the tantalum talum and indicated that significant tantalum resources on the licences began in November. was being produced as a by product of the tin Meanwhile, the company has applied to the mining operation. NSW authorities for leases covering the con- In those early days, long before mobile ceptual regional extensions of the Walwa phones, tantalum was a considered a nuisance tin/tantalum mineralisation. or penalty mineral in tin concentrates. It has applied for a 1009 square km explo- Reverse circulation drilling at the Redbank ration licence that would cover several known prospect, 1.2 kilometres north of Mt Alwa, has tin and tantalum bearing pegmatites which intersected values up to 10 metres at 193 g/t extend sporadically from near the township of Ta2O5 and 624 g/t Sn in a near-surface, flat- Jingellic northwards for 15 km. lying pegmatite. Mr Fotios said that the company also was Numerous other percussion drill holes at this completing an extensive data compilation prospect intersected similar grades of tanta- ate other tantalum targets to add to its portfolio.” exercise in order to convert all previous map- lum mineralisation, Mr Fotios said. Mr Fotios said a work program to explore the ping and sampling data into digital format. “Participation in the Mt Alwa project is con- tenements had been submitted to the sistent with the company’s previously stated Department of Natural Resources and FOR MORE INFORMATION CONTACT: diversification into tantalum,” Mr Fotios Environment in Victoria. added. Access to the land covered by freehold prop- Michael Fotios, Managing director “Australasian Gold Mines considers tantalum erties is subject to the completion of standard Australasian Gold Mines NL an emerging commodity that is linked to the compensation agreements. Telephone 08 9386 7211 booming electronics (ie. communications and The balance of the tenements cover vacant or visit www.australasiangold.com.au computing) industry and is continuing to evalu- Crown land on which exploration can com-

24 25 SPECIALIST METALS SPECIALIST METALS Mobile boom rattles the tin

24 25 QUARRYING BASIN NEWS Melba’s dad carved his success New life for WIM prospect

n the past two centuries, Victorians have Limestone has been quarried at David n industry newcomer believes it has embraced natural stone as a favorite Mitchell’s Lilydale operations for 122 years, overcome the processing problems building material with many of our producing a wide range of industrial and which have prevented development of agricultural products and helping the company historic buildings created from the Victoria’s massive WIM-style mineral I expand its operations nationally. A state’s abundant resources of limestone, sands deposits near Horsham. sandstone and bluestone. Zirtanium Ltd, a subsidiary company of But Victoria is where the story started with the But one early Scottish stonemason, looking GDM Resources, says that test work has original Cave Hill quarry still supplying for a new source of limestone for building pur- shown it is possible to process the fine-grained around 250,000 tonnes of material a year to poses, went on to create a business which has deposits satisfactorily, overcoming some of the feed the lime kilns and the processing plant. endured and prospered for more than a centu- mineral beneficiation problems experienced by ry. The limestone deposits of Lilydale, discov- The three lime kilns are fired by natural gas their discoverer, CRA Ltd (now Rio Tinto Ltd) ered by David Mitchell in 1878, were the which allows a more controlled and efficient in the 1980s. foundation of the company bearing his name burning process than earlier fuel types which The WIM deposits contain massive volumes to this day. included firewood cut from the local forests of high quality, but extremely fine-grained, and, later, black coal from the south Gippsland David Mitchell is one of Australia’s biggest minerals. The small grain size and the accom- region and, even later, Bunker C type heavy producers of lime products, marketed under panying difficulties in processing the mineral, fuel oil. the company flagship brand name, Limil. forced CRA to abandon the discoveries in After mining, the lime is crushed and sent to 1997 after spending more than $60 million Originally, the Lilydale quarries were created the kilns from where it is selected after strict drilling, sampling and researching ways to to cut marble and limestone blocks for build- her death on February 23, 1931 in Sydney. quality control for hydration. overcome the processing problems. ing purposes. But the company has dramati- While his famous daughter carved out an In a draft prospectus, currently being complet- cally expanded its operations and now pro- The lime is passed through a Knibb’s continu- international career, David Mitchell was carved, Zirtanium noted that the mineral sands duces a wide range of building, agricultural ous hydrator and mill which ensures a uni- ing his own niche, cutting limestone in industry is one of the most profitable in the and industrial lime products from almost formly fine particle size. Lilydale and converting it into building stones resources sector. every state in Australia. From there the Limil brand product is bagged and other valuable building products. Zirtanium directors said that while Australia’s or sold in bulk to a wide range of industries. The success of the David Mitchell business The original quarries opened on March 26, traditional mineral sands reserves are being Lime is used in many applications in the steel also created another major international bene- 1878 with the limestone subsequently used in depleted, the Murray Basin, occupying an area and aluminium smelting industry and in agri- fit for Australia. With his business prospering, the manufacture of EMU brand cement and of approximately 300,000 square kilometres, culture, water treatment and, in Victoria’s David Mitchell established a large and stately burnt lime products. In those days, the Cave is likely to be the next major mineral sands Dandenong ranges area, it is finding increas- home, still standing in Lilydale today. Hill site was also used for the manufacture of province to be exploited in the world. ing use in the expanding grape growing and It was in that home that he reared a daughter cheese, bacon and soap. Two main styles of mineral sand deposits have wine industry. been identified in the Murray Basin. Helen, who went on to international fame and At nearby Coldstream and at St Huberts Estate Limestone is a sedimentary rock composed acclaim as the singer, Dame Nellie Melba. at Rutherglen, grapes were grown for wine There are large, fine-grained, sheet-type principally of calcite calcium carbonate Born in the Melbourne suburb of Richmond production to be eventually cellared at deposits (WIM style) and the coarse-grained, (CaCO3). Crushed to varying diameters, it is on May 19, 1861, Helen Mitchell lived there Burnley and supplied amongst others, to the narrow ribbon-type deposits (beach style). used as landscaping spalls, roadbase, aggre- for many years and at Lilydale. She sang at the Governor of Victoria. More than 65 individual, coarse-grained gates, screenings, foundry flux or toppings. deposits of economic significance have been The term ‘mineral sand’ refers to deposits of ducer controlling 36% of the world market, fol- Richmond public hall when she was six and Today, David Mitchell Limited (DML), Crushed limestone has an attractive appear- identified with a total contained heavy mineral minerals of specific gravity of 3.0 or more lowed by South Africa 31% and the USA 19%. became a skilled pianist and organist, but did formed from the original David Mitchell ance and a bonding quality superior to compa- content of 44 million tonnes with an estimated which have been concentrated by water or The decline in Australia’s dominant position not study singing until after her marriage to Estate, has interests in many parts of rable materials. value of more than $13 billion at current prices. wind action. has been due to the steady increase in demand Charles Nesbitt Armstrong in 1882. Australia. Ground into its finer forms, limestone can be The deposits over which Zirtanium holds A variety of heavy minerals are concentrated for both titanium feedstock and zircon com- She appeared in Sydney in 1885 and in DML manufactures lime and limestone prod- used for acid neutralisation, Aglime, mineral exploration licences Ð Jackson (WIM 200) in mineral sand deposits with the minerals of bined with the depletion of Australian London in 1886 before studying in Paris. ucts in far north Queensland at Ootann near fillers and a host of other uses. and Donald (WIM250) Ð fall into the fine- prime economic significance including the deposits and competition from new overseas She made her operatic debut as Gilda in Chillagoe, and at Woodstock, outside of grained category with a total in-situ heavy titanium minerals, rutile and ilmenite along operations, particularly in South Africa. The Lilydale plant also supplies the well- Verdi’s Rigoletto in 1887 in Brussels under Townsville. The output from these kilns feeds mineral content of 60 million tonnes. with leucoxene. Australia is a major supplier World demand for both titanium feedstocks the alkali requirements of major gold mines in known Lilydale toppings gravel which is used the name Melba, derived from her home city Zirtanium directors believe the Murray Basin of rutile, zircon and ilmenite. and zircon is expected to grow at an average north Queensland. extensively for pathways. of Melbourne. Until 1926, she sang in the will allow Australia’s continued dominance of Australia’s mineral sands output peaked in the rate of 2.5% to 3% a year over the next decade principal opera houses of Europe and the The same Quicklime products are used in the the global mineral sands industry as it has 1970s when it accounted for 90% of the world with the medium-term outlook for tight sup- United States, particularly Covent Garden and ply. That outlook provides a solid backdrop sugar mills from Mosman through the Herbert FOR MORE INFORMATION CONTACT: good access to modern infrastructure with a rutile production, 30% of the world ilmenite pro- the Metropolitan Opera. area down to the Burdekin region. well-developed network of roads, railways, duction and 60% of the world zircon production. for Zirtanium’s plans to develop the WIM dis- She was created a Dame of the British Empire The installation of a lime hydrator plant at Geoff Clements, National marketing manager towns, power, water and communications. But by 1999, production in Australia had coveries. in 1918 before returning in 1926 to Australia, DML’s Woodstock plant has enabled the com- David Mitchell Limited The Jackson and Donald deposits are well sit- decreased to 26% of the total titanium feedstock Between 1983 and 1998, CRA spent over $60 where she became president of the Melbourne pany to export hydrated lime out of Telephone (03) 9285 4822 uated on the southern side of the Murray (ilmenite and rutile) compared to South Africa million on drilling, sampling and analysis of Conservatorium. Melba toast and the dessert, Townsville to the burgeoning mining industry or visit www.davidmitchell.com.au Basin closer to the major port of Portland than 25%, Canada 16% and USA 12%. Australia, the WIM deposits. Peach Melba, were named after her following in the Pacific rim. most other economically significant deposits. however, continues to be the main zircon pro- Work by CRA subsidiary, Wimmera Industrial

26 27 QUARRYING BASIN NEWS Melba’s dad carved his success New life for WIM prospect

26 27 BASIN NEWS

Minerals, discovered that the separation and Geological Survey of Victoria Proposed schematic mining system concentration of the titanium minerals and zircon did not produce products acceptable to the end users. Metallurgical test work by CRA later con- heads for the high country firmed that the “ high titanium minerals can be agglomerated, ilmenite can be upgraded to synthetic rutile or to a high grade acid soluble titania and that zircon can be upgraded to a new premium grade product” New geology maps and interpretations covering the Bogong 1:100 000 map area. CRA’s approach was to produce one titanium product consisting of agglomerated synthetic The next exciting project in the continuing detailed mapping program of the G.S.V. rutile, rutile and leucoxene from a bulk flotation process. But by 1998, CRA quit the project eventually relinquishing tenure to the ¥ The region is home to the Harrietville, Glen Wills and Mitta Mitta gold/tin fields and the Granite Flat Jackson and Donald deposits. porphyry goldÐcopper deposit. Zirtanium is taking a different approach to the WIM deposits, primarily by planning early ¥ The project team consists of Vince Morand, Kylie Wohlt, David Taylor, Ross Cayley, Bruce Simons, production at a rate which allows all mineral products to be sold using high-grade portions Simon Maher and April Westcott. of the deposit. ¥ Field mapping commenced February 2001 and is scheduled to be completed by September 2002. The company plans to use spirals to produce a bulk heavy mineral concentrate and then aims to separate the heavy mineral content into magnetic and non-magnetic components. This approach will reduce capital expenditure Project objectives by mining only the high-grade zones initially. To test the concept, Zirtanium bulk sampled that relatively low pressure acid leaching ¥ to increase the coverage of new generation geological mapping across both the Jackson and Donald deposits, taking may be effective in reducing the silicone eastern Victoria, leading to a complete east-west transect of new 4 tonne samples, to determine the nature of the content to acceptable levels in leucoxene. mapping through the Lachlan and Delamerian fold belts in Victoria; mineralised zone and to assess the bulk heavy A recent scoping study by Zirtanium proposes mineral grade against that returned from pre- a 10 million tonne per annum mining opera- ¥ to enhance understanding of the stratigraphy and structure of the vious drilling. tion for the project in the central high-grade These samples were sent for metallurgical test portion of the Jackson deposit using dry-min- poorly known Ordovician metasediments which host a number of work, which involved heavy mineral separa- ing techniques. historic gold fields including Mount Wills and Harrietville and thereby tion using gravity, flotation, magnetics and The study was developed on a mining system help unravel the complex geological history of eastern Victoria; electrostatics. operating on 1,000m wide panels, with over- netics and shaking tables to produce a mag- The company believes that its preliminary test burden removal and mining progressively netic (ilmenite) and non-magnetic (rutile, leu- ¥ to better understand the timing and structural controls on orogenic work shows that acceptable separation and completed in 200m advancing segments. coxene and zircon) concentrate. gold mineralisation, as well as gain a better understanding of recoveries of heavy minerals could be The figure above shows the proposed schematic The proposed WPP and CUP operations magmaticÐhydrothermal mineralisation associated with granites and achieved, not withstanding their fine-grained mining system. Contract mining would be car- involve conventional mineral sand technology nature. ried out using an excavator. Two mobile combi- adapted and further refined for the recovery of dykes. This will be done with the aim of enhancing the prospectivity Subsequently, Zirtanium has contracted nation belt-feeder and pulping units positioned fine-grained heavy minerals. Zirtanium of the Bogong area. CSIRO to apply its heat and leach process ahead of the operating ore face would prepare believes that the application of this technlogy (HL) to the zircon to reduce the uranium and the ore for pumping to the wet processing plant has been successfully demonstrated by thorium to levels within market specification. (WPP) located alongside the mining panel. Zirtanium’s test work. This has been accomplished, along with sig- The WPP would deslime the ore using Magnetic and non-magnetic concentrate nificant reduction in other impurities. cyclones and separate the heavy minerals from would be transported to Portland to separate Products Zirtanium reports that recent metallurgical the sand by spirals. This is a major change to the individual mineral products. Portland test work on the titanium products show that CRA’s approach, which was to use flotation as offers a deep-water port and all the necessary ¥ Geological data collected at 1:25 000 will be compiled for publication at 1:50 000 scale. outstanding technical issues may be dealt with the primary concentration method rather than infrastructure. in the following ways: WPP, concentrate upgrading (CUP) and min- Zirtanium directors said that a combination of ¥ A geophysical interpretation map at 1:100 000. eral separation (MSP) plants. conventional mineral sand dry mill technology ¥ Material bulk: that spirals are totally effective before froth flotation in reducing the Slimes from the WPP would be dewatered and and flotation has the potential to yield quality ¥ The maps will be accompanied by a report detailing the geology, geophysical character and prospectivity of the feed bulk by approximately 85% co-deposited with sand and allowed to settle products at high recoveries. While this combina- area. behind the advancing face. tion of processes has yet to be thoroughly tested, ¥ Magnetics: That both roasting and differen- initial test work is said to be encouraging. tial froth flotation may be effective in CRA WIM150 pilot plant tailings were suc- ¥ A GIS package containing the digital information relevant to the area (including mining and open-file company removing the contaminated chromite from cessfully redeposited and rehabilitated using exploration data). FOR MORE INFORMATION CONTACT: illmenite this co-deposition method. The heavy mineral ¥ Non magnetics: The tests demonstrate that concentrate (HMC) from the WPP will require Dr Mark Elliott We welcome any feedback or contributions you may wish to make to the project. rutile agglomeration effectively produce a further upgrading to remove excess sand and Managing director, Zirtanium Ltd some of the trash minerals. If you would like further information on any aspect of the project, please contact suitable grain size from the finer product, Telephone: (07) 3832 2505 which will satisfy market specification and The CUP would use wet, high-intensity mag- Peter O’Shea (Manager, Geological MappingÐ 03 9412 5093).

28 BASIN NEWS

28 ROUND THE CLOCK DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL FEBRUARY 2001

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MOBILE HYDRAULICS • WEMEN STARTUP

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