5000_2_v6 October 2007

Kanmantoo Copper Project Mining Lease Proposal

Appendices Volume 2

Kanmantoo Copper Project

Mining Lease Proposal Appendices Volume 2

October 2007 5000_2_v6

Prepared by: Enesar Consulting Pty Ltd Level 1, 2-3 Greenhill Road Wayville 3510 p 61-8-7221 3588 f 61-8-7221 3510 e [email protected] www enesar.com.au Project Director David Browne Project Manager Tara Halliday Version/s: Distribution: CR 5000_2_v6 Hillgrove – 4 copies October 2007 Enesar – 4 copies South Australian Agencies and other project stakeholders – 30 copies Summary Information

Mine owner: Hillgrove Copper Pty Ltd and Kelaray Pty Ltd Mine operator: Hillgrove Copper Pty Ltd Contact person: Marty Adams Project Manager Contact details: Hillgrove Resources Limited Callington Project Office 42 Back Callington Road Callington SA 5254 Telephone: 08 8538 5100 Email: [email protected] Tenements: MC 3510, MC 3833, MC 3834, MC 3835, MC 3836 Name of mining operation: Kanmantoo Copper Project Commodity to be mined: Copper, gold, silver and garnet MLP date: October 2007 Mining Lease Proposal Kanmantoo Copper Project

Appendices 5 Kanmantoo Copper Project Flora Assessment 6 Kanmantoo Copper Project Fauna Baseline Survey and Impact Assessment 7 Kanmantoo Copper Project Socio and Economic Impact Assessment 8 Kanmantoo Copper Project Indigenous Archaeology and Cultural Heritage Assessment 9 Kanmantoo Copper Project Non-Indigenous Heritage Survey and Archaeological Assessment 10 Kanmantoo Copper Project Traffic Impact Assessment 11 Kanmantoo Copper Project Geochemistry (Acid Rock Drainage) Assessment

Enesar Consulting Pty Ltd 5000_App-Vol2_ToCv6.doc/October 9, 2007 Appendix 5

Kanmantoo Copper Project Flora Assessment Final Report Kanmantoo Copper Project Flora Assessment

Coffey Natural Systems Pty Ltd Level 1, 2-3 Greenhill Rd Wayville SA 5034

May 2007

ECOLOGICAL ASSOCIATES DE005-C Contents

1 Introduction ------1-1

1.1 Introduction 1-1 1.2 Scope of Work 1-1 1.3 Background to the Project 1-1

2 Background ------2-1

2.1 Landform 2-1 2.2 Known Vegetation Values 2-1 2.3 Mine Proposal 2-2 2.4 Legislative Framework 2-3 2.5 Existing Information 2-5

3 Survey------3-1

3.1 Method 3-1 3.2 Results 3-2 3.3 Pest Plants 3-18

4 Impact Assessment ------4-1

4.1 Clearance of Native Vegetation 4-1 4.2 Incidental Impacts on Native Vegetation 4-3 4.3 Dust 4-3 4.4 Acid Mine Leachate 4-4 4.5 Altered Groundwater and Surface Water Hydrology 4-4

5 Recommendations ------5-1

5.1 Options to Mitigate the Impacts of Vegetation Clearance 5-1 5.2 Limitations of this Study 5-2 5.3 Recommendations for Further Investigations 5-3

6 References ------1

i Figures, Tables and Appendices

Figures

Figure 1. Location of proposed Kanmantoo Copper Project...... 1-2 Figure 2. Proposed project footprint of Kanmantoo Copper Project...... 2-3 Figure 3. Eucalyptus odorata Low woodland with condition score of SEB 8:1...... 3-3 Figure 4. Vegetation map of the study area with proposed project footprint overlaid...... 3-4 Figure 5. Eucalyptus odorata Low woodland with condition score of SEB 4:1...... 3-5 Figure 6. Eucalyptus odorata Low woodland with condition score of SEB 2:1 (right of fence)...... 3-5 Figure 7. Lomandra effusa +/- Heliochrysum leucopsideum Open tussock grassland with condition score of SEB 8:1...... 3-6 Figure 8. Lomandra effusa +/- Heliochrysum leucopsideum Open tussock grassland with condition score of SEB 4:1...... 3-7 Figure 9. Austrostipa sp. Open tussock grassland with condition score of SEB 8:1...... 3-8 Figure 10. Austrostipa sp. Open tussock grassland with condition score of SEB 6:1...... 3-8 Figure 11. Acacia pycnantha Low woodland with condition score of SEB 6:1...... 3-9 Figure 12. Eucalyptus gracilis ± E. oleosa Open mallee with condition score of SEB 8:1...... 3-10 Figure 13. Allocasuarina verticillata ± Callitris gracilis ± Lomandra effusa Low woodland with condition score SEB 8:1...... 3-11 Figure 14. Location of threatened species (source indicated) within study area...... 3-15 Figure 15. Sections of Back Callington Road (yellow line) assessed for conservation significance...... 3-16 Figure 16. Example of roadside vegetation, Back Callington Road; southern side within Section 1...... 3-17

Tables

Table 1. Conservation significance of previously reported species and vegetation communities...... 2-6 Table 2. Area and conservation significance of surveyed vegetation communities...... 3-12 Table 3. Vegetation requiring clearance and SEB offset calculation...... 3-13 Table 4. Surveyed species of conservation significance...... 3-13 Table 5. Summary of data collected for each section of Back Callington Road...... 3-18 Table 7. Summary of unavoidable vegetation clearance impacts...... 4-1

Appendices

Appendix A. Surveyed Flora and Location Appendix B. Biological Survey Quadrat Data Appendix C. Combined Species List for All Surveys Appendix D. Data for Scattered Trees within the Proposed Project Footprint

ii Executive Summary

Scope of Work Ecological Associates was engaged by Coffey Natural Systems on behalf of Hillgrove Resources Ltd to:

• survey the flora of the Kanmantoo Copper Project Area and the road between the site and Callington; • assess potential impacts to flora associated with the project; • identify opportunities to avoid, minimise or mitigate impacts; • establish a foundation for ongoing monitoring; and • recommend further investigations, if required.

Methods A review was conducted of reports and surveys describing the plant species and vegetation associations of the study area and the region.

A survey of the project area, based on the methods of the Biological Survey of South Australia, was conducted in February 2007. The survey involved four quadrats in the main vegetation types, descriptions of all vegetation types, assessments of scattered trees and assessment of roadside vegetation.

Findings A total of 113 ha of native vegetation was identified in the study area. Eight vegetation communities were identified with vegetation condition ranging from "very good" to "poor". Eucalyptus odorata Low woodland is the most extensive vegetation community and occupies 54.1 ha. This vegetation community is listed as a critically endangered ecological community under the EPBC Act 1999. It is also of conservation significance at the state level (Neagle 1995) and at the regional level (Kahrimanis et al. 2001). At the local level, the remnants on the site include some of the best preserved examples in the western slopes of the Southern (Ecological Associates 2007). Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland occupies 23.3 ha of the study area. This vegetation community is also listed as a critically endangered ecological community under the EPBC Act 1999. It is of conservation significance at the state level (Neagle 1995), and at the regional level (Kahrimanis et al. 2001). At the local level, the remnants on the site include some of the best preserved examples in the western slopes of the Southern Mount Lofty Ranges (Ecological Associates 2007). Remnant patches of Austrostipa sp. Open tussock grassland occupies 17 ha. This community is of regional conservation significance (Kahrimanis et al. 2001). Other plant associations observed on the site were: • Acacia pycnantha Low woodland (11.2 ha)

iii Executive Summary

• Eucalyptus gracilis ± E. oleosa Open mallee (4 ha)

• Allocasuarina verticillata ± Callitris gracilis ± Lomandra effusa Low woodland (1.8 ha)

• Eucalyptus leucoxylon ssp. leucoxylon ± Lomandra effusa Open woodland (1.3 ha)

• Callitris gracilis Low woodland (0.2 ha). The highest level of conservation significance for plant species recorded during the survey was regional. Four species listed as rare in the Murray botanical region were recorded: • Eucalyptus leucoxylon ssp. leucoxylon; • Elymus scaber var. scaber; • Aristida contorta; and • Aristida behriana. However, from previous investigations it is known that the site also supports two species of conservation significance at the state level: • Diuris behrii (Behr’s cowslip orchid) – rare; and • Ptilotus erubescens (hairy tails) – rare; and a further 19 species of regional conservation significance. Fifty six scattered trees were documented in the area defined by the proposed project footprint. Fifty five of these trees were Eucalyptus odorata and one was Allocasuarina verticillata. Roadside vegetation between the project area and Callington was assessed. The vegetation is predominantly degraded Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland.

Potential Impacts The condition of native vegetation, and the proportion impacted by the proposed project footprint is presented in the table below. Coffey Natural Systems provided calculations of areas to be cleared.

Vegetation Condition Community area cleared cleared Area (ha) area to be %ofproject within project Area (ha) to be

Eucalyptus odorata Very good 1.23 14.90 8.28% Low woodland Good 2.02 9.70 20.85%

Moderate 0.32 28.50 1.12%

Poor 0.34 1.00 35.45%

Lomandra effusa ± Very good 9.59 17.80 53.90% Heliochrysum Good 0.00 2.05 0.00% leucopsideum Open

iv Executive Summary

Vegetation Condition Community area cleared cleared Area (ha) area to be %ofproject within project Area (ha) to be

tussock grassland Moderate 2.54 3.50 72.44%

Austrostipa sp. Open Very good 0.21 11.60 1.80% tussock grassland Good 0.00 4.70 0.00%

Moderate 0.61 0.70 86.67%

Eucalyptus gracilis ± Very good 2.79 4.00 69.76% E. oleosa Open mallee

Acacia pycnantha Good 4.26 7.70 55.29% Low woodland Moderate 2.57 3.50 73.34%

Scattered Trees 56 trees

The project footprint impacts on some of the known individuals of Diuris behrii but not on known individuals of Ptilotus erubescens. In addition to vegetation clearance, the project potentially impacts upon flora and vegetation by: • habitat fragmentation; • an increased risk of pest plant invasion due to increased soil disturbance and the importation of weed propagules on vehicles and machinery; • acid leachate; • reduced vegetation health arising from altered surface- and groundwater hydrology; and • impacts arising from the accumulation of dust from mining operations upon vegetation and the soil surface.

Measures to Mitigate and Minimise Risks Measures to minimise these risks a proposed. In particular, measures to minimise and mitigate the impacts of vegetation clearance include enhancement of vegetation on the site by connecting remnants with revegetation, improving the quality of remnant vegetation and contributing to regional programs that restore or enhance remnant vegetation.

Limitations of this Study The survey was conducted in autumn following a 12 month period of particularly low rainfall. Under these dry conditions, and at this time of year, it is likely that many plant species were absent or dormant

v Executive Summary

as seeds or propagules and could not be observed. Similarly, condition would be more accurately assessed in spring when annual weeds are present. It is recommended that the survey is repeated in spring.

vi Introduction SECTION 1

1 I ntr oduc tio n

1.1 Introduction

Ecological Associates Pty Ltd was engaged by Coffey Natural Systems Pty Ltd on behalf of Hillgrove Resources Limited (HRL) to assess the potential impacts of the proposed redevelopment and expansion of the Kanmantoo Copper Mine (‘the project’) on vegetation and plant species in the project area. For the purposes of this report, the study area corresponds to the project area.

1.2 Scope of Work

The overall objective of this project was to survey and report on the potential impacts of the proposed project on vegetation and plant species. The scope of work was to: • provide a comprehensive list of all flora species and vegetation communities; • report the conservation significance or pest status of all species and vegetation communities present; • report data in accordance with the Draft Guidelines for a Native Vegetation Significant Environmental Benefit Policy for the Clearance of Native Vegetation Associated with the Minerals and Petroleum Industry; • establish a foundation for ongoing monitoring; • describe the potential impacts of the proposed development on plant species and vegetation communities; • identify opportunities to avoid, minimise or mitigate impacts; • describe potential residual impacts of the project following implementation of mitigation measures; and • report uncertainties associated with the assessment.

1.3 Background to the Project

The Kanmantoo Copper Project is located between the townships of Kanmantoo (1.5 km to the north east) and Callington (1.5 km to the south east), 44 km east of in South Australia (Figure 1). The project area comprises approximately of 439 ha, including the property on which the mine is to be developed. Options for the transport of concentrate are currently being investigated, however the option via the Back Callington Road between the site and Callington was investigated as this may involve impacts to flora. The project area has been subject to intermittent mining operations from the mid 1800s to the 1970s (Hibbird 2004). The original Kanmantoo mine was first worked in 1848 and activities continued, with several breaks, over the next century. An open pit resource was defined in 1969 and Kanmantoo Mines Pty Ltd worked this from 1971 to 1976. The site now contains a decommissioned open cut, tailings dam and waste rock dump. The granted mining lease ML5776 covers the Kanmantoo Mine and copper-gold

1-1 Introduction SECTION 1

resource. The areas to the immediate south and north of ML5776 are covered by EL application no. 736/2004. A prefeasibility study for this project was completed in June 2006.

Figure 1. Location of proposed Kanmantoo Copper Project.

Some of the vegetation remnants and plant species in the study area are considered a high priority for conservation; these areas are generally located close to the existing mine pit (Playfair 2004; Ecological Associates 2007). To the west of the existing mine pit, on the ‘Paringa’ property, the land is currently utilized for grazing and has largely been cleared of native vegetation, although some scattered trees and small remnants exist.

1-2 Background SECTION 2

2 Background

2.1 Landform

The study area is located in the catchment of the Bremer River (a tributary of the River Murray) on the eastern slopes of the Mount Lofty Block. A north – south trending range, reaching a height of approximately 120 m above the surrounding terrain, dominates the immediate physical environment of the study area. The slopes of these hills are steep and dissected by several gullies but the area on the top of the hills is gently undulating (Hibbird 2004). All watercourses in the area of the mine are first order streams and flow intermittently. They contain salt tolerant vegetation, particularly the introduced sedge Juncus acutus (Sharp Rush), suggesting they receive saline groundwater discharge.

2.2 Known Vegetation Values

The study area falls within the region covered by the Biodiversity Plan for the South Australian Murray- Darling Basin and, more specifically, is within the Eastern Mount Lofty Ranges Regional Ecological Area (REA) (Kahrimanis et al. 2001). The clearance of native vegetation within the Eastern Mount Lofty Ranges REA has been extensive, with only 6% of the original vegetation cover remaining (Kahrimanis et al. 2001). Two ecological communities listed as critically endangered under the EPBC Act 1999 occur within the study area; Peppermint Box (Eucalyptus odorata) Grassy Woodland of South Australia and Iron-grass Natural Temperate Grassland of South Australia. Both listings are effective from 21 June 2007. DEH vegetation mapping of the region that includes the study area refers to these two ecological communities as Eucalyptus odorata woodland and Lomandra effusa +/- L. multiflora ssp. dura (open) tussock grassland respectively. An index of conservation prioritisation for plant associations has been devised for South Australia. (Neagle 1995). This prioritisation provides the widely accepted list of vegetation communities of conservation significance. Under this index, Lomandra effusa +/- L. multiflora ssp. dura (open) tussock grassland has a Priority 1 conservation rating (very rare and endangered in SA), the highest conservation significance possible for a vegetation community in the state. This vegetation community occurs to the immediate south of the existing mine pit on the summit and slopes of a feature known as MacFarlane Hill (Playfair 2004; Ecological Associates 2007). Although MacFarlane Hill has reportedly been grazed by stock (Hibbird 2004; Playfair 2004; Parsons Brinckerhoff 2006), approximately 5.8 ha of this remnant is of high quality (Ecological Associates 2007). This 5.8 ha area represents a small proportion (approximately 0.4%) of the high quality remnants of the vegetation community in the eastern slopes of the Southern Mount Lofty Ranges (Ecological Associates 2007). An area of Eucalyptus odorata woodland occurs to the north of the existing pit (Playfair 2004; Ecological Associates 2007). This vegetation has a conservation rating of Priority 3 (Neagle 1995), being poorly conserved in South Australia with most remnants being small and/or degraded and/or atypical. Within the study area a long history of grazing has depleted the understorey of some of this vegetation. However the area closest to the mine pit and extending along the eastern boundary of the property is in better condition

2-1 Background SECTION 2

than elsewhere (Playfair 2004) and has an intact understorey of native grasses and shrubs (Ecological Associates 2007). The E. odorata woodland within the study area is one of the largest remnants in the eastern slopes of the Southern Mount Lofty Ranges and includes approximately one third of the high quality vegetation of this type in the region (Ecological Associates 2007). A waste-rock dump from past open pit mining operations is located immediately west of the mine pit. It consists of approximately 25 million tonnes of rock and covers an area of approximately 0.36 km2 (Hibbird 2004). This feature has very steep sides and a level upper surface on to which soil has been placed. A revegetation area has been established on the eastern side and Golden Wattle, (Acacia pycnantha) and grass species are present. Bare ground is typical elsewhere.

To the north of the waste-rock dump is the old tailings retention area, covering approximately 0.35 km2 (Hibbird 2004). This area has also been capped with soil and partially revegetated. It features grassy areas and unvegetated areas. In a gully to the east of the tailings retention area are two dams retaining acid leachate from the tailings. A small area of Eucalyptus leucoxylon ssp. leucoxylon woodland is located adjacent to these dams. A sedgeland dominated by introduced Sharp Rush (Juncus acutus) has formed to the west of the tailings area.

2.3 Mine Proposal

Hillgrove propose to redevelop and expand the existing Kanmantoo mine to extract copper ore and process the ore on site. The proposal involves extending the existing pit to the north and south and excavating additional satellite pits to the north, south and south-west (Figure 2). An integrated waste landform will be constructed involving an extension to the existing waste rock stockpile and construction of a new tailings storage facility to the west. An area for plant and equipment will also be required (Figure 2). The project ‘footprint’ is the sum of these features. In addition to the project footprint, vehicle tracks throughout the area will be utilised.

2-2 Background SECTION 2

Figure 2. Proposed project footprint of Kanmantoo Copper Project.

2.4 Legislative Framework

Environment Protection and Biodiversity Conservation Act 1999

Under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act 1999) an action requires approval from the Commonwealth Minister for the Environment and Water Resources if it is likely to have a significant impact on a matter of national conservation significance. Matters of national environmental significance relevant to this project are threatened species and ecological communities, migratory species and Wetlands of International Importance (Ramsar sites) listed under the EPBC Act 1999. Assessment of the study area requires consideration of whether the site supports, or is likely to support, any matters of national environmental significance and risks to those matters. Where the proposal poses a significant risk, it is recommended that the matter be referred to the Minister for Environment and Water Resources. The project was referred on 26 February 2007, and the DEWR determined on 30 March 2007 that the project was not a controlled action. No further assessment under the EPBC Act is therefore required for the project.

2-3 Background SECTION 2

Native Vegetation Act 1991

The Native Vegetation Act 1991 regulates the clearance of native vegetation in South Australia. Under the Act, native vegetation includes vegetation that has never been cleared or has been cleared but has regenerated naturally. Planted vegetation is not considered native vegetation unless it’s planting was undertaken in compliance with a condition imposed by the Native Vegetation Council. The Native Vegetation Council has delegated Primary Industries and Resources South Australia (PIRSA) to administer the Native Vegetation Act 1991 as it applies to mining. PIRSA applies the policies of the Native Vegetation Council on clearance and revegetation through the use of Mining and Rehabilitation Programs (MARPs) under Regulation 42 of the Mining Act. In seeking approval to clear native vegetation it is necessary for a MARP to demonstrate that: • the work cannot be established without the clearance of some native vegetation and that native vegetation is avoided or impacts minimised wherever possible; • the site chosen contains the least significant native vegetation, provided that works can occur at that site; and • intact strata of native vegetation are avoided. It is also necessary for the MARP to demonstrate that in clearing native vegetation, a Significant Environmental Benefit (SEB) will be achieved elsewhere. Works to revegetate, restore, regenerate or enhance native vegetation may achieve SEB. So that SEB can be calculated, MARPs must report the nature and extent of impacts on native vegetation. This involves a detailed assessment of the plant species and plant communities present, their conservation significance and habitat value for fauna.

National Parks and Wildlife (NPW) Act 1972

The NPW Act 1972 provides for the protection of flora and fauna species listed under the Schedules of the Act. There are penalties for taking these protected species without a permit issued by the Department for Environment and Heritage (DEH). For plants, ‘taking’ includes removal of the plant or part of the plant from where it is growing, or damaging the plant.

Development Act 1993

The District Council of Mount Barker has prepared a development plan as per the requirements of the Development Act 1993. This plan contains rules, policies and objectives to guide development on land within the council area. Of particular relevance to exploration activities is an area designated as ‘Policy Area 16’ in the Development Plan. This is an area of remnant vegetation to the north of the mining lease. The objectives of the plan for this area are to protect and enhance all native species and revegetate degraded vegetation.

2-4 Background SECTION 2

2.5 Existing Information

The most comprehensive existing information on the flora and vegetation of the study area is provided by Playfair (2004). Playfair’s report, commissioned by Hillgrove, presents information from a survey of a part of the study area (Mining Lease 5776) in July 2004 and also a collation of pre-existing information. Playfair lists 91 native and 12 introduced plant species including one species listed as threatened in South Australia (Diuris behrii, Behr’s cowslip orchid) and an additional nine species considered rare or threatened in the region. Playfair mapped part of the Eucalyptus odorata woodland, describing the area extending north of the open pit along the eastern boundary of the property as in better condition and less invaded by introduced species than areas to the north-west and along the northern boundary of the property. Part of the Lomandra effusa grassland was also mapped. In 2006 Hillgrove commissioned Ecological Associates to investigate the extent and condition of remnants of Eucalyptus odorata woodland and Lomandra effusa grassland in the Kanmantoo area (Ecological Associates 2007). The purpose of this investigation was to enable a more accurate assessment of the significance of any potential development by Hillgrove on the two plant associations, both of which have been nominated for listing as threatened ecological communities under the EPBC Act 1999. The investigation found that the area of Eucalyptus odorata woodland within the study area comprises approximately one third of the high quality remnant vegetation of this type in the eastern slopes of the Southern Mount Lofty Ranges and is one of the largest remnants. Lomandra effusa grassland of 5.8 ha within the study area was also considered high quality, however this represented only 0.4% of the high quality remnants in the eastern slopes of the Southern Mount Lofty Ranges. The Department for Environment and Heritage (DEH) manages the Biological Database of South Australia (BDBSA). An extract from the BDBSA revealed three locations within the study area for which flora records were available. These records consisted of a total of 75 native plant species, including one species listed as threatened in South Australia, Ptilotus erubescens (Hairy-tails). Records of 21 introduced species were also present. For this study, the BDBSA extract was extended to a 6 km radius from the study area boundary. This provided additional records of two species listed as threatened under the EPBC Act 1991; Acacia menzelii (Menzel’s wattle) and Olearia pannosa ssp. pannosa (silver daisy-bush). Additionally, eight species listed as threatened within South Australia occur within this extended area. These ten species have not been recorded within the study area, however their presence within the vicinity of the study area suggests they may be present but have not yet been detected. In 2006 the Kanmantoo-Callington Landcare Group, with support from Hillgrove, undertook a study of the significant vegetation within the study area. This work reported plant species not previously recorded for the area. Management recommendations were made for particular patches of vegetation within the study area. Referring to the area of Eucalyptus odorata woodland immediately north of the existing pit, the authors concluded “It is the least disturbed or weed invaded area of this … vegetation association known to exist in SA …” (Simon and Seager 2006). The Kanmantoo-Callington Landcare Group, again in 2006 and with support from Hillgrove, prepared an Interim Weed Control Strategy for the Kanmantoo mine site (Seager 2006). This report addressed the highest priority weed issues in the area. Weed species not previously recorded for the study area were identified in this report.

2-5 Background SECTION 2

In spring 2006 Ecological Associates undertook a targeted survey within the study area for the two plant species listed as threatened in South Australia known to occur within the study area; Diuris behrii (Behr’s cowslip orchid) and Ptilotus erubescens (Hairy-tails) (Ecological Associates 2006). This survey recorded Diuris behrii at two locations within Eucalyptus odorata woodland. Ptilotus erubescens was not detected. Native vegetation within the study area has been mapped by DEH (Kahrimanis et al. 2001). This mapping indicates 53 ha of native vegetation within the study area. It should be noted that this mapping was undertaken at a relatively coarse scale by interpretation of 1:40 000 aerial photography and has not been ground-truthed. A summary of plant species and vegetation communities of conservation significance previously reported for the area is provided in Table 1.

Table 1. Conservation significance of previously reported species and vegetation communities.

Species or Vegetation Community Level of Significance

National1 State2 Regional3

Eucalyptus odorata woodland   

Lomandra effusa grassland   

Ptilotis erubescens (Hairy-tails)  

Diuris behrii (Behr’s cowslip orchid)  

11 additional species 

1. Listed as threatened under the EPBC Act 1999. 2. Listed as rare or threatened in Neagle (1995) (vegetation communities) or under the NPW Act 1972 (species). 3. Listed as threatened in the SA Murray-Darling Basin in Kahrimanis et al. (2001).

2-6 Survey SECTION 3

3 Survey

3.1 Method

Vegetation Community Mapping

On 12, 13 and 27 February and 8 March 2007 the entire study area was surveyed by vehicle and on foot. Native vegetation remnants were located and the vegetation communities comprising them were identified. ArcMap was used to map all remnants based on the field survey and extrapolation of orthorectified aerial photography. Terminology follows the regional floristic mapping for the western Murray flats (Kahrimanis et al. 2001). A list of all plant species observed was compiled for each vegetation community, except two communities that comprised a very minor component of the vegetation within the study area.

Vegetation Condition Mapping

Vegetation condition was also mapped. The condition of native vegetation remnants was assessed using the methodology outlined in Draft Guidelines for Native Vegetation Significant Environmental Benefit Under the Native Vegetation Act 1991 and Regulations 2003 for the Mineral and Petroleum Resources Industry (DWLBC 2005). Using this methodology, vegetation condition was reported as a significant environmental benefit (SEB) ratio. These ratios represent the area to be offset in compensation for impacted areas of native vegetation. The SEB ratios that can be assigned are 10:1 (highest quality vegetation), 8:1, 6:1, 4:1 and 2:1 (lowest quality vegetation).

Quadrat Survey

The vegetation survey method outlined in the Guide to a native vegetation survey using the Biological Survey of South Australia (Heard and Channon 1997) was used to prepare detailed quadrat descriptions of the four major vegetation associations present in the study area. One quadrat was surveyed within each of the following vegetation associations: • Austrostipa sp. Open tussock grassland; • Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland;

• Eucalyptus odorata Low woodland; and • Eucalyptus gracilis ± Eucalyptus oleosa Open mallee.

Scattered Tree Assessment

Scattered trees within the study area that are located within the project footprint were assessed using a datasheet provided by PIRSA based on the methodology outlined in Scattered Tree Habitat Value Ready Reckoner (Cutten and Hodder 2002). This methodology requires a photograph of each tree and a record of its location, species, height, trunk diameter at breast height, proportion of canopy dieback, canopy

3-1 Survey SECTION 3

diameter, proportion of canopy mistletoe, number of individual mistletoe infections and number of small (<5 cm), medium (5 – 15 cm) and large (>15 cm) diameter hollows. Subsequently, suitability as habitat for threatened fauna, density of scattered trees in the vicinity and proximity to remnant native vegetation was scored for each tree using a scoring system provided by PIRSA based on the principles outlined by Cutten and Hodder (2002). Spatial data for scattered tree density and proximity to remnant native vegetation were obtained using ArcMap. The total SEB for all scattered trees within the proposed project footprint was calculated using the NV_Points19.xls spreadsheet provided by the Native Vegetation Group within DWLBC.

Roadside Vegetation Assessment

An assessment of the roadside vegetation of Back Callington Road between Mine Road and the township of Callington was made. The road was divided into four sections, each with relatively homogeneous vegetation on both sides (north and south). For each section, both sides of the road were surveyed at several locations and a plant species list was compiled for each side. The flora survey was not comprehensive but recorded dominant and notable species. Planted trees were not assessed but there presence was noted. The vegetation community comprising the roadside vegetation was identified and its condition was scored using the approach described above for vegetation within the study area. Based on the information obtained, the side of Back Callington Road (north or south) of lower conservation significance was identified, providing guidance for potential clearance of roadside vegetation for road widening.

3.2 Results

Vegetation Communities

A total of 113 ha of native vegetation was identified and mapped within the study area. Eight vegetation communities were identified with vegetation condition ranging from SEB 8:1 to SEB 2:1 (Figure 4). Eucalyptus odorata Low woodland is the most extensive vegetation community within the study area, occupying 54.1 ha. This vegetation community has been nominated for listing as a threatened ecological community (as Peppermint Box (E. odorata) Grassy Woodland) under the EPBC Act 1999.Itisalsoof significance at the state level, listed as Priority 3 for conservation in Neagle (1995), and at the regional level, listed as threatened within the South Australian Murray-Darling Basin (Kahrimanis et al. 2001). A complete list of the plant species recorded for this vegetation community within the study area is provided in Appendix A. Quadrat survey data are provided in Appendix B. The best examples of this vegetation occurred to the north and north-west of the existing open pit (Figure 4) and had a condition of SEB 8:1. These areas have all vegetation strata intact, low cover of weeds, evidence of recent regeneration of overstorey trees and some old, hollow bearing trees (Figure 3). Areas with condition of SEB 6:1 are located immediately north of the open pit and a short distance further north (Figure 4). These areas have an intact overstorey and some evidence of regeneration of overstorey trees but an understorey with considerable weed infestation. Considerable physical disturbance, mainly vehicular tracks, is apparent at some locations within this area. Adjacent to the above areas, the northern boundary of the study area and

3-2 Survey SECTION 3

the north-west corner of the study area are areas where condition was SEB 4:1 (Figure 4). The understorey of these areas is either very heavily invaded by weeds or largely absent with bare ground apparent (Figure 5). An intact overstorey is present but recent regeneration of overstorey trees is not apparent. These areas appear to have been subjected to extended periods of stock grazing. Two small areas, both of which fall within the footprint of the proposed tailings storage facility, have a condition of SEB 2:1 with the understorey completely absent and considerable soil disturbance and trampling from intensive stock grazing (Figure 6).

Figure 3. Eucalyptus odorata Low woodland with condition score of SEB 8:1.

3-3 Figure 4. Vegetation map of the study area with proposed project footprint overlaid.

3-4 Survey SECTION 3

Figure 5. Eucalyptus odorata Low woodland with condition score of SEB 4:1.

Figure 6. Eucalyptus odorata Low woodland with condition score of SEB 2:1 (right of fence).

3-5 Survey SECTION 3

Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland occupies 23.3 ha of the study area. This vegetation community has been nominated for listing as a threatened ecological community (as Iron Grass (L. effusa – L. multiflora ssp. dura) Tussock Grassland) under the EPBC Act 1999.Itis significant at the state level, listed as Priority 1 for conservation in South Australia (Neagle 1995), and at the regional level, listed as threatened within the SA Murray-Darling Basin (Kahrimanis et al. 2001). The community occurs predominantly to the south of the existing open pit on the crest and slopes of MacFarlane Hill. A list of the plant species recorded within the study area for this vegetation community is provided in Appendix A. The quadrat survey data are provided in Appendix B. The best examples featured an intact structure of dense L. effusa interspersed with native grasses and few weeds (Figure 7). These areas have been assigned a condition score of SEB 8:1. Emergent trees, typically Allocasuarina verticillata, are present in some areas. At the extreme south of the study area is a remnant patch with intact structure and featuring dense L. effusa, but with considerable weed invasion, predominantly the grass Avena barbata (Bearded Oat). This area has been assigned a condition score of SEB 6:1. Smaller remnants are present immediately south-west of the open pit and further west. These areas are more degraded, with sparse L. effusa, few native grasses and considerable soil disturbance, and have been assigned a condition score of SEB 4:1 (Figure 8).

Figure 7. Lomandra effusa +/- Heliochrysum leucopsideum Open tussock grassland with condition score of SEB 8:1.

3-6 Survey SECTION 3

Figure 8. Lomandra effusa +/- Heliochrysum leucopsideum Open tussock grassland with condition score of SEB 4:1.

Remnant patches of Austrostipa sp. Open tussock grassland occupies 17 ha. This community is of regional conservation significance, listed as threatened within the SA Murray-Darling Basin (Kahrimanis et al. 2001). The community is floristically quite similar to Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland, however L. effusa is absent and the dominant species is the native grass Austrostipa sp. (the species was not able to be identified due to the absence of flowers or seed). A complete species list for this community within the study area is provided in Appendix A. Quadrat survey data are provided in Appendix B. Austrostipa sp. Open tussock grassland occurs predominantly on the southern crest and slopes of MacFarlane Hill. Small remnants also occur amongst outcropping ridgelines on the former ‘Paringa’ grazing property (Figure 4). The best example occurs on the western slope of MacFarlane Hill. In this area the vegetation has a low cover and diversity of weeds and a relatively high diversity of native grasses and herbs, a relatively high density of grass tussocks, and has been assigned a condition score of SEB 8:1 (Figure 9). On the southern slope of MacFarlane Hill the vegetation is intact but with a greater proportion of weeds (Figure 10) and has been assigned a condition score of SEB 6:1. The small remnants on the former ‘Paringa’ property have been subject to extended grazing and feature stock tracks, bare ground and considerable weed invasion. These areas have been assigned a condition score of SEB 4:1.

3-7 Survey SECTION 3

Figure 9. Austrostipa sp. Open tussock grassland with condition score of SEB 8:1.

Figure 10. Austrostipa sp. Open tussock grassland with condition score of SEB 6:1.

To the immediate east and north-east of the existing pit, divided by the work area for the existing mine, is an area of 11.2 ha of Acacia pycnantha Low woodland (Figure 4). This vegetation community was not

3-8 Survey SECTION 3

mapped by DEH for the Western Murray Flats vegetation mapping project (Kahrimanis et al. 2001). Anecdotal reports and the absence of overstorey Eucalyptus species suggest that this community has been subject to past disturbance or clearance and has regenerated naturally. It is likely that, if left undisturbed, this community would in time develop into one of the adjoining vegetation communities, i.e. either Eucalyptus odorata Low woodland, Eucalyptus gracilis ± E. oleosa Open mallee or a combination of both. To the north east of the existing pit this vegetation community is dominated by an overstorey of low Acacia pycnantha, has an intact understorey dominated by native grasses, particularly Austrostipa sp., and low shrubs and has a low cover of weeds (Figure 11). The condition of the vegetation in this vicinity was scored as SEB 6:1. Further to the south, at the base of the eastern side of MacFarlane Hill, the vegetation appears to have been more recently disturbed and partially cleared. At this location a condition score of SEB 4:1 was assigned. Another small patch of this community, in the same condition, is located south of the tailings retention dam in the north-east of the study area. A complete species list for Acacia pycnantha Low woodland is provided in Appendix A.

Figure 11. Acacia pycnantha Low woodland with condition score of SEB 6:1.

A small area (4 hectares) of Eucalyptus gracilis ± E. oleosa Open mallee is located to the immediate north of the existing open pit. There is evidence of past timber gathering in this area, however the vegetation is relatively intact with a diverse native understorey and low weed cover (Figure 12). This vegetation was assigned a condition score of SEB 8:1. A list of the plant species identified for this community is provided in Appendix A. Quadrat survey data are provided in Appendix B.

3-9 Survey SECTION 3

Figure 12. Eucalyptus gracilis ± E. oleosa Open mallee with condition score of SEB 8:1.

A 1.8 ha remnant of Allocasuarina verticillata ± Callitris gracilis ± Lomandra effusa Low woodland is located in steep, rocky terrain to the south of the tailings retention dam in the north-east of the study area (Figure 13). The vegetation structure is intact in this area, with overstorey trees and understorey shrubs, grasses and herbs all present at apparently natural densities. Some weedy grass species are present but weed cover is low. A condition score of SEB 8:1 was assigned to this vegetation. Appendix A lists the plant species present.

3-10 Survey SECTION 3

Figure 13. Allocasuarina verticillata ± Callitris gracilis ± Lomandra effusa Low woodland with condition score SEB 8:1.

To the immediate south of the tailings retention dam near the north-east corner of the study area is a remnant patch of Eucalyptus leucoxylon ssp. leucoxylon ± Lomandra effusa Open woodland of 1.3 ha. The vegetation appears to be in good condition with all strata intact and was assigned a condition score of SEB 8:1. The remnant is small and located a considerable distance from the proposed project footprint, therefore a plant species list was not compiled. This community is of conservation significance at the regional level, listed as threatened within the SA Murray-Darling Basin (Kahrimanis et al. 2001).

A very small (0.2 ha) area of Callitris gracilis Low woodland is located east of the existing open pit adjacent to the mine entrance gate. The vegetation at this location appears relatively intact with overstorey trees and understorey shrubs, grasses and herbs all present and weed cover low. A condition score of SEB 8:1 has been assigned. Due to its small size a species list was not compiled, however plant species likely to be present are those listed for the adjacent Acacia pycnantha Low woodland (Appendix A), with the addition of Callitris gracilis. This community is of conservation significance at the regional level, listed as threatened within the SA Murray-Darling Basin (Kahrimanis et al. 2001).

A summary of the vegetation communities identified and mapped, their condition, area and conservation significance is provided (Table 2).

3-11 Survey SECTION 3

Table 2. Area and conservation significance of surveyed vegetation communities.

Vegetation Community SEB Ratio Area (ha) Conservation Significance

National State Regional

Eucalyptus odorata Low woodland 8:1 14.9 

6:1 9.7

4:1 28.5

2:1 1.0

Lomandra effusa ± Heliochrysum 8:1 17.8  leucopsideum Open tussock grassland 6:1 2.1

4:1 3.5

Austrostipa sp. Open tussock grassland 8:1 11.6 

6:1 4.7

4:1 0.7

Acacia pycnantha Low woodland 6:1 7.7

4:1 3.5

Eucalyptus gracilis ± E. oleosa Open mallee 8:1 4.0

Allocasuarina verticillata ± Callitris gracilis ± 6:1 1.8 Lomandra effusa Low woodland

Eucalyptus leucoxylon ssp.leucoxylon± 6:1 1.3  Lomandra effusa Open woodland

Callitris gracilis Low woodland 8:1 0.2 

Overlaying the proposed project footprint upon the mapped vegetation reveals the location and extent of vegetation that will require clearance under the proposal (Figure 4). Four vegetation communities, with condition ranging from SEB 8:1 to SEB 2:1, will be partially cleared. Table 3 provides a summary of the vegetation clearance and the offset areas required for each community to achieve significant environmental benefit.

3-12 Survey SECTION 3

Table 3. Vegetation requiring clearance and SEB offset calculation. Coffey Natural Systems provided calculations of areas to be cleared.

Vegetation Community Area (ha) of each condition level Total area to SEB offset (SEB ratio) to be cleared be cleared required (ha) (ha) 8:1 6:1 4:1 2:1

Eucalyptus odorata Low woodland 1.23 2.02 0.32 0.34 3.92 23.92

Lomandra effusa ± Heliochrysum 9.59 2.54 12.13 86.88 leucopsideum Open tussock grassland

Austrostipa sp. Open tussock 0.21 0.61 0.82 4.12 grassland

Eucalyptus gracilis ± E. oleosa Open 2.79 2.79 22.32 mallee

Acacia pycnantha Low woodland 4.26 2.57 6.82 35.84

Scattered Trees 56 trees (see below) 17.8

TOTAL 190.88

Species of Conservation Significance

The highest level of conservation significance for plant species recorded during the survey was regional. Four species listed as rare in the Murray botanical region were recorded (Table 4).

Table 4. Surveyed species of conservation significance.

Species Common Name Conservation Significance

National State Regional

Eucalyptus leucoxylon ssp. South Australian Blue Gum R1 leucoxylon

Elymus scaber var. scaber Native Wheat-grass R

Aristida contorta Curly Wire-grass R

Aristida behriana Brush Wire-grass R

1. R = Rare; having a low overall frequency, confined to a restricted range or scattered sparsely over a wider area. The shrub Acacia iteaphylla, listed as rare in SA, was also recorded within the study area. However, this species was growing outside of its natural range and can be considered introduced. The species is commonly planted for revegetation projects. Although relatively few species of conservation significance were recorded for the current survey, an additional two species of state significance and 19 species of regional significance have been recorded in the study area by previous surveys. A complete list of plant species, both native and introduced, recorded for the study area by this and previous surveys is provided in Appendix C.

3-13 Survey SECTION 3

The two species of conservation significance at the state level that have been recorded previously within the study area are Diuris behrii (Behr’s cowslip orchid), which is listed as vulnerable, and Ptilotus erubescens (hairy tails), listed as rare. The known locations of Diuris behrii were recorded by Ecological Associates (2006) and by the Kanmantoo-Callington Landcare Group (KCLG) in the significant vegetation study in 2006. The single location of Ptilotus erubescens was obtained from the BDBSA extract provided by DEH. An additional 53 species are also listed at the same location, indicating that the BDBSA record location may represent an amalgamation of records for a wider area. Thus the spatial confidence of the BDBSA Ptilotus erubescens record is lower than that for the Diuris behrii records. The known locations of species of conservation significance at the state level within the study area are shown in Figure 14. This figure indicates that some of the known Diuris behrii sites fall within the proposed project footprint.

Scattered Trees

Fifty-six scattered trees were documented within the area defined by the proposed project footprint plus a ten metre buffer to allow for small scale spatial error. Fifty–five of these trees were Eucalyptus odorata and there was one Allocasuarina verticillata. Twenty-four trees had hollows. Tree height ranged from 4 to 13 metres and canopy diameter from 2 to 17 metres. Diameter at breast height ranged from 8 to 120 cm. Mistletoe was not noted on any tree. Dieback ranged from 0 to 90%. All scattered trees scored one point (the lowest score) for suitability for threatened fauna species. All scattered trees were located a considerable distance from vegetation of high quality and there were no threatened fauna species observations or previous records in the immediate vicinity of the trees. Data for all fifty-six scattered trees assessed is provided in Appendix D. The total offset required to achieve SEB for the clearance of the fifty-six scattered trees within the project footprint (plus ten metre buffer) is 17.8 hectares.

3-14 Figure 14. Location of threatened species (source indicated) within study area.

3-15 Survey SECTION 3

Roadside Vegetation

For the purpose of assessment, Back Callington Road was divided into four sections of approximately equal length within which the roadside vegetation was relatively homogeneous (Figure 15). The roadside reserve varies in width from approximately 1 to 5 m.

Figure 15. Sections of Back Callington Road (yellow line) assessed for conservation significance.

Vegetation on both sides of Section 1 is classified as Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland. However, because the tussocks are typically sparse and the vegetation is dominated by weeds, a condition score of SEB 2:1 was assigned to both sides. One species of conservation significance was observed on both side of the road, the regionally rare grass Aristida contorta.Someofthetrees(e.g.Acacia pycnantha) appear to have been planted and therefore do not constitute native vegetation. The overall conservation significance of the vegetation is very similar on both sides of the road. However the northern side is, in some areas, contiguous with native vegetation immediately north of the roadside reserve. In contrast, the southern side borders cropped paddock with no native vegetation. Given this difference, the southern side of Back Callington Road in Section 1 is considered to have lower conservation significance than the northern side.

3-16 Survey SECTION 3

Figure 16. Example of roadside vegetation, Back Callington Road; southern side within Section 1.

Section 2 also features Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland on both sides. The Lomandra effusa tussocks are very sparse in places and the vegetation is dominated by weeds, with a condition score of SEB 2:1. There is very little difference in conservation significance of the vegetation on either side of the road. On both sides the roadside reserve adjoins cropped land. Trees have been planted on the northern side. These trees are not native vegetation as such but may provide habitat for fauna. Given the presence of planted trees on the northern side and the absence of any other differences between the north and south side, the southern side of Back Callington Road in Section 2 is considered to have lower conservation significance than the northern side. In Section 3 both sides of the road again feature Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland. The vegetation is typically weed dominated, with a condition score of SEB 2:1 on both sides. However, on the northern side there are some small patches of L. effusa of greater density. The northern side also features some planted trees, that may have value as discussed above. Therefore, the southern side of Back Callington Road is considered to have lower conservation significance than the northern side in Section 3. Section 4 was not surveyed for flora because native vegetation appears to be absent from this section. The roadside vegetation consists exclusively of weeds and planted trees. The road passes through a residential area in Section 4. The conservation significance of the roadside vegetation in this section appears to be very low on both sides of the road. Both sides have been planted with a similar number of trees. Neither side appears to have a higher conservation significance than the other.

3-17 Survey SECTION 3

Table 5. Summary of data collected for each section of Back Callington Road.

Length Conservation Section (m) Vegetation Community Significance Side of Road Nat. State Reg. north south Lomandra effusa ± Heliochrysum     1 960 leucopsideum Open tussock grassland

Vegetation Condition (SEB ratio) 2:1 2:1

Lower Significance (preference for  clearance)

Lomandra effusa ± Heliochrysum     2 770 leucopsideum Open tussock grassland

Vegetation Condition (SEB ratio) 2:1 2:1

Lower Significance (preference for  clearance)

Lomandra effusa ± Heliochrysum     3 800 leucopsideum Open tussock grassland

Vegetation Condition (SEB ratio) 2:1 2:1

Lower Significance (preference for  clearance)

No native vegetation – planted trees  4 1100

Vegetation Condition (SEB ratio) n.a. n.a.

Lower Significance (preference for No clearance) recommendation

3.3 Pest Plants

Twenty-four introduced plant species were recorded for the survey (Appendix A). The total number of introduced species documented for the study area by all known surveys is 47 (Appendix C). The pest status of introduced species, i.e. the capacity to cause ecological degradation, varies between species.

Grasses

Several introduced grasses are present within the study area but Wild Oats (Avena barbata)isthemost abundant. This species is very common throughout the agricultural regions of South Australia. Within the study area it was most abundant within the Austrostipa sp. open tussock grassland and Lomandra effusa ± Heliochrysum leucopsideum open tussock grassland. Native grassland vegetation may benefit from

3-18 Survey SECTION 3

intermittent controlled grazing, which may assist in the control of introduced grasses such as wild oats. Burning is another management tool used to promote native grasses and disadvantage introduced grasses.

Herbs

Bridal creeper (Asparagus asparagoides) has been recorded within the Eucalyptus odorata Low woodland vegetation community, particularly beneath the canopies of old, large trees (Ecological Associates 2006). The species is proclaimed in South Australia. The spread of Bridal Creeper is facilitated by physical disturbance. Disa bracteata (South African Weed Orchid) has been recorded within Eucalyptus gracilis ± E. oleosa Open mallee and Acacia pycnantha Low woodland vegetation communities within the study area (Ecological Associates 2006). It may also be present in other communities. Although it is not a proclaimed species it has the potential to degrade understorey vegetation and displace native orchid species. Artichoke Thistle (Cynara cardunculus ssp. flavescens) was recorded within the Austrostipa sp. open tussock grassland, although it is probably not restricted to this vegetation community. This species has the potential to degrade native grassland communities and should be controlled. Salvation Jane (Echium plantagineum) does not currently appear to be abundant within the study area. However, this species has great potential to spread and degrade native vegetation, particularly grassland communities.

Shrubs

Red-head Cotton-bush (Asclepias curassavica) was recorded within the Austrostipa sp. open tussock grassland and Lomandra effusa ± Heliochrysum leucopsideum open tussock grassland. Wattle (Acacia iteaphylla) was recorded within the Eucalyptus gracilis ± E. oleosa Open mallee and Acacia pycnantha Low woodland vegetation communities, where it may have been intentionally planted. Western Coastal Wattle (Acacia cyclops) and Boneseed (Chrysanthemoides monilifera ssp. monilifera) have also been recorded within the study area. All of these species are a high priority for control.

Woody Weeds

Woody weeds recorded within the study area include Olive (Olea europaea ssp. europaea), Aleppo Pine (Pinus halepensis) and African Boxthorn (Lycium ferocissimum). All of these species are a priority for control.

3-19 Impact Assessment SECTION 4

4 Impact Assessment

4.1 Clearance of Native Vegetation

The proposed development involves structures and excavations which require the clearance of native vegetation. The composition, area and quality of vegetation to be impacted is presented in Table 6.

Table 6. Summary of unavoidable vegetation clearance impacts. Coffey Natural Systems provided calculations of areas to be cleared.

Vegetation Condition Description Community area ratio) cleared cleared Area (ha) area to be % of project within project Condition (SEB Area (ha) to be

Eucalyptus odorata 8:1 Very good condition: little disturbance, all strata 1.23 14.9 8.26% Low woodland present, evidence of overstorey recruitment, large old trees present, high understorey diversity, low weed cover, litter and woody debris cover high.

6:1 Good condition: some disturbance (grazing, weed 2.02 9.7 20.82% invasion, tracks, timber getting), at least strata depleted in cover, limited overstorey recruitment, large old trees present, high to moderate understorey diversity, low to moderate weed cover, litter and woody debris cover high to moderate.

4:1 Moderate condition: considerable disturbance 0.32 28.5 1.12% (extended grazing), at least one strata absent, no evidence of overstorey recruitment, moderate to low understorey diversity, moderate to high weed cover, litter and woody debris cover moderate to low.

2:1 Poor condition: high disturbance (extended 0.34 1.0 34% grazing), at least one strata absent, no evidence of overstorey recruitment, very low understorey diversity, high weed cover, litter and woody debris cover low to absent.

Lomandra effusa ± 8:1 Very good condition: little disturbance, all strata 9.59 17.8 53.88% Heliochrysum present, native diversity high, weed cover low, litter leucopsideum Open cover high. tussock grassland 4:1 Moderate condition: considerable disturbance 2.54 3.5 72.57% (extended grazing, tracks, weed invasion), one strata depleted, native diversity moderate to low, weed cover moderate to high, litter cover moderate to low.

Austrostipa sp. Open 8:1 Very good condition: little disturbance, all strata 0.21 11.6 1.81% tussock grassland intact, high density of tussocks, native diversity high, weed cover low, litter cover high to moderate.

4-1 Impact Assessment SECTION 4

Vegetation Condition Description Community area ratio) cleared cleared Area (ha) area to be %ofproject within project Condition (SEB Area (ha) to be

4:1 Moderate condition: considerable disturbance 0.61 0.7 87.14% (extended grazing, weed invasion), all strata present but depleted in cover, moderate to low density of tussocks, native diversity moderate to low, weed cover moderate to high, litter cover moderate to low.

Eucalyptus gracilis ± 8:1 Very good condition: little disturbance, all strata 2.79 4.0 69.75% E. oleosa Open intact, evidence of overstorey recruitment, high mallee understorey diversity, weed cover low, litter and woody debris cover high.

Acacia pycnantha 6:1 Good condition: some disturbance (past clearance, 4.26 7.7 55.32% Low woodland weed invasion, tracks), overstorey depleted, high understorey diversity, weed cover low to moderate, litter and woody debris cover high to moderate.

4:1 Moderate condition: considerable disturbance (past 2.57 3.5 73.43% clearance, weed invasion, tracks), overstorey depleted, moderate understorey diversity, weed cover moderate to high, litter and woody debris moderate to low.

Scattered Trees n/a See Appendix D 56 not assessed trees

Under the Native Vegetation Act, the Native Vegetation Council has developed a framework to calculate the significance of vegetation clearance and the mitigation required to compensate for them. The mitigation requirements are based entirely on the quality of the vegetation and are presented in Table 6. Based on this framework, impacts are most effectively reduced by minimising the area of high quality vegetation to be cleared. The framework does not take into account the conservation significance of different vegetation types. This survey has determined that the plant communities with the highest conservation significance at a state or regional level are: • Eucalyptus odorata Low woodland; • Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland; and

• Austrostipa sp. open tussock grassland Impacts on the conservation values of the site will be best be minimised by minimising the clearance of these plant associations. Impacts on roadside vegetation can be minimised by limiting clearance to the southern side of the Back Callington Road.

4-2 Impact Assessment SECTION 4

4.2 Incidental Impacts on Native Vegetation

The project has the potential to impact on vegetation through the normal operation of the site. These impacts may result from track construction, vehicle movement and earthmoving. These activities potentially impact on native vegetation in the following ways. • Track construction can fragment native vegetation, increasing the perimeter to area ratio and making vegetation remnants more vulnerable to weed invasion. Pruning involved in track construction can also expose trees to disease such as Mundulla Yellows. • Stockpiling earth can smother native vegetation and spread weed propagules. • Earth and debris on vehicles can spread weed propagules. These risks can be minimised by: • locating tracks outside vegetation remnants where possible; • minimising the length and number of tracks in vegetation remnants; • maintaining proper hygiene procedures when pruning or removing vegetation; • identifying stockpile sites for earth where they will not contaminate native vegetation; and • establishing standards for these risk minimisation measures and assessing performance against them. These risk minimisation measures can be incorporated in an Environmental Management Plan. This may involve clearly delimiting protected vegetation on the ground with fencing or flagging tape, clearly identifying roads and access-ways, developing procedures for vehicle traffic and clearly identifying areas not considered as native vegetation where vehicle movements, ground disturbance, equipment laydown or other disturbances are acceptable. The highest priorities for protection are sites in the best condition and vegetation communities with conservation significance at the state or regional level, namely: • Eucalyptus odorata Low woodland; • Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland; and

• Austrostipa sp. open tussock grassland.

4.3 Dust

Dust generated by mine operations is a potential risk to native vegetation. Dust may affect vegetation chemically, through the minerals they contain, or physically by deposits on leaves and flowers. Activities that create dust include vehicle movement, quarrying and crushing of rock, conveyance of ore and waste rock and stockpiles. Dust particles form a crust on leaves, stems and flowers. This may eventually block stomata inhibiting gas exchange or reduce the light available for photosynthesis (Murray 2005). Reductions in photosynthesis and respiration may result in poor growth and flowering. Plants with leaf hairs may be

4-3 Impact Assessment SECTION 4

affected to a greater extent as the leaf hairs trap dust on the leaf surface. Reactive dust particles include alkaline and acidic particles. These particles may have more severe impacts and symptoms include yellow spots on leaves, leaf curling and interveinal necrosis (Murray 2005). In severe cases there may be abscission of leaves, reduced seed or fruit set or plant death. The risks to vegetation associated with dust are uncertain. The risk would be better defined if the composition and load of dust were known. Nevertheless, the risk of dust to vegetation can be minimised by: • controlling dust generation in blasting, excavations, earthmoving and ore treatment; • maintaining roads to reduce potential for dust generation; and • minimising vehicle movements.

4.4 Acid Mine Leachate

The mine has the potential to generate acidic leachates which can impact on native vegetation. Acid leachates form where minerals rich in reduced sulphur are oxidised and may therefore be associated with the mine pit and waste rock storage. If they escape to the environment they may degrade native vegetation, particularly in watercourses. It is understood that the management of acid leachate is being considered in detail in other components of the mine development project. Risks to native vegetation will be minimised by preventing acid leachate from affecting to the soil or soil water in which native vegetation occurs.

4.5 Altered Groundwater and Surface Water Hydrology

The mine proposal involves the development of waste-rock stockpiles and excavations which may alter the runoff and drainage characteristics of the site. Vegetation condition is potentially affected by these works if they result in changes in the soil water regime, such as through waterlogging or the diversion of runoff. These activities may promote weed invasion, reduce tree health and may degrade the habitat for existing native plants. Any impacts on the soil water regime of remnant vegetation or the flow regime in watercourses should be avoided. The risk of altered groundwater and surface water hydrology to native vegetation can be minimised by: • locating fill and excavations away from drainage lines; • planning fill and excavations to avoid detaining or diverting runoff; and • minimising drawdown on aquifers that discharge to wetlands and watercourses.

4-4 Recommendations SECTION 5

5 Re c omme nda tions

5.1 Options to Mitigate the Impacts of Vegetation Clearance

Introduction

The Significant Environmental Benefit required to mitigate the impacts on vegetation communities and scattered tree removal can be achieved in a number of ways. The offsets should be determined when the footprint of the mine development is finalised and offset strategies are negotiated with PIRSA. The costs and SEB return of each offset strategy will vary and must be planned to provide the most appropriate outcome for the project. However, the following strategies have been identified for consideration by Hillgrove for the Kanmantoo Copper Mine project. These strategies may be undertaken on the Kanmantoo Coper Mine site or in the local area in cooperation with natural resource management agencies, research organizations, community groups, local government or government conservation agencies. Research recently by State Flora commissioned by Hillgrove Resources into propagation of Lomandra effusa may be considered as a contribution to SEB requirements.

Habitat Rehabilitation

Vegetation may be rehabilitated by controlling stock access. Grazing is currently mainly associated with SEB 2:1 and SEB 4:1 areas, but also with some SEB 6:1 and 8:1 areas. Grazing by stock can degrade native vegetation in a variety of ways including reducing plant biodiversity (by preferentially grazing more palatable species), preventing plant recruitment (by grazing seedlings), reducing habitat value by reducing overall plant cover, contributing to soil erosion by damaging soil crusts and promoting weeds by increased soil disturbance and reduced competition from native plants. Stock should be excluded from the project area to promote understorey vegetation diversity, overstorey species recruitment, reduce erosion risks and control weed risks. Vegetation may also be rehabilitated by controlling weeds in vegetation remnants across the project area. The site supports a range of weed species such as exotic grasses (Wild Oats), herbaceous weeds (Bridal Creeper), shrubby weeds (Boneseed), woody weeds (African Boxthorn) and exotic trees (Olive and Aleppo Pine). These weeds are located within and adjacent to vegetation remnants. Control of these weeds will promote native species diversity and will promote the recruitment of overstorey vegetation. Vegetation may be rehabilitated by controlling pest which degrade native vegetation and reduce habitat value for native fauna. Pest fauna known to, or likely to, occur at the site include Cat, Rabbit, European Hare and Fox. Pest fauna control would involve a program of baiting, burrow ripping and monitoring.

Habitat Consolidation

Revegetation can be used to consolidate isolated remnants and increase their overall habitat value. The property includes a number of vegetation patches which are potentially linked by revegetation to provide

5-1 Recommendations SECTION 5

fewer, larger remnants with greater overall habitat diversity and reduced edge effects. Linkages can be highly effective in enhancing the resilience of populations of native flora and fauna because they facilitate the migration of biota across the landscape. This can help overcome genetic isolation (leading to problems such as inbreeding) and boost overall population numbers.

Habitat Protection

Significant Environmental Benefit can be achieved by preserving, in perpetuity, vegetation remnants under Heritage Agreements. Heritage Agreements formally dedicate an area of high-quality remnant vegetation exclusively for the purpose of conservation. The agreement is identified on the title of the property and persists when the property changes hands. High value remnants on the property (SEB 8:1), protected from clearing during the project and nominated for Heritage Agreements, would be inspected by staff from the Department for Environment and Heritage. The department would provide species lists and access to grants for ongoing management (e.g. weed control and fencing) of the area to ensure a Significant Environmental Benefit. Hillgrove could also identify and purchase high value remnants elsewhere in the district and place them under Heritage Agreements to further ensure the project results in a Significant Environmental Benefit, should other methods listed above not be feasible.

Payment to Native Vegetation Fund

The impacts associated with the project may be offset by payment to the Native Vegetation Fund. Determination of the amount to be paid to ensure Significant Environmental Benefit is as follows (DWLBC 2005): a) Determine area to be cleared (in hectares); b) Determine offset required (in hectares); c) Determine land value ($/hectare – based on Valuer General determination for equivalent land purchase within region); d) Native Vegetation Fund payment = [(a) x $800] + [(b) x (c)]

5.2 Limitations of this Study

The timing of this flora survey, in late summer following an extended dry period, was not optimal. Some annual and ephemeral herbaceous species are likely to be present only as below-ground seeds or tubers at this time. Some species lacked flowers or fruits and could not able to be identified. Previous vegetation investigations (listed in Section 2.5) provide some information about the site at other times of year. However, the scope of this study was to provide a comprehensive assessment of the potential impacts of the proposal across the site, which the previous studies do not address.

5-2 Recommendations SECTION 5

5.3 Recommendations for Further Investigations

Spring Survey

Due to the limitations of the survey timing, it is recommended that elements of this survey are repeated in spring 2007. The following tasks should be repeated: • survey of the quadrats; and • species lists of the major vegetation communities.

Native Vegetation Management Plan

A Native Vegetation Management Plan should be prepared providing detailed information on the nature of vegetation rehabilitation and restoration works to be undertaken at the site. The plan would specify:

• the location and nature of revegetation, and a schedule for establishment maintenance tasks; • the location and nature of pest plant control, and a schedule for maintenance tasks; • a schedule for pest control activities and monitoring; and • grazing management and a monitoring schedule.

5-3 References

6 References

Cutten, J. L. and M. W. Hodder (2002). Scattered Tree Habitat Value Ready Reckoner (Test Copy). (Department of Water, Land and Biodiversity Conservation: Adelaide, South Australia).

DWLBC (2005). Draft Guidelines for Native Vegetation Significant Environmental Benefit Under the Native Vegetation Act 1991 and Regulations 2003 for the Mineral and Petroleum Resources Industry. (Department of Water, Land and Biodiversity Conservation: Adelaide, South Australia).

Ecological Associates (2006). Targeted survey for threatened species and weed species at Kanmantoo Mine. (Ecological Associates Pty Ltd: Adelaide, South Australia).

Ecological Associates (2007). Survey of remnant Eucalyptus odorata woodland and Lomandra effusa grassland in the Kanmantoo region. (Ecological Associates Pty Ltd: Adelaide, South Australia).

Heard, L. and B. Channon (1997). Guide to a native vegetation survey using the Biological Survey of South Australia. (Geographic Analysis and Research Unit, Information and Data Analysis Branch, Department of Housing and Urban Development: Adelaide, Australia).

Hibbird, S. (2004). Kanmantoo Project Declaration of Environmental Factors. (Hillgrove Resources Ltd: Perth, Western Australia).

Kahrimanis, M. J., S. Carruthers, A. Oppermann and R. Inns (2001). Biodiversity Plan for the South Australian Murray-Darling Basin. (Department for Environment and Heritage: Adelaide, South Australia).

Murray, F. (2005). A review of the impacts of atmospheric emissions from the Kalgoorlie and Olympic Dam Operation on the surrounding vegetation. Report prepared for WMC Resources by Associate Professor Frank Murray. (Murdoch University: Perth, Western Australia).

Neagle, N. (1995). An update of the conservation of the major plant associations of South Australia. (Department of Environment and Natural Resources: Adelaide, South Australia).

Parsons Brinckerhoff (2006). Kanmantoo Fauna Desktop Assessment. (Parsons Brinckerhoff Australia Pty Ltd: Adelaide, South Australia).

Playfair, R. (2004). Native Vegetation Management Recommendations for Kanmantoo Mine Site.(RMP Environmental Pty Ltd: Adelaide, South Australia).

Seager, H. (2006). Interim Weed Control Strategy, Kanmantoo Mine Site. (Kanmantoo-Callington Landcare Group: Callington, South Australia).

Simon, B. and H. Seager (2006). Significant Vegetation Areas. Kanmantoo Mine Site Hillgrove Resources Exploration Area. (Kanmantoo-Callington Landcare Group: Callington, South Australia).

6-1 Appendix A Surveyed Flora and Location

7 References Conservation Vegetation Community Significance

Species Common Name

Nat. State Reg. Mallee A. pycnantha woodland L. effusa grassland Austrostipa grassland E. odorata woodland A. verticillata woodland Acacia acinacea Wreath Wattle  Acacia ligulata Umbrella Bush  Acacia microcarpa Manna Wattle  Acacia pycnantha Golden Wattle   Allocasuarina verticillata Drooping Sheoak  Amphipogon sp. Grey-beard Grass  Amyema miquelii Box Mistletoe  Aristida behriana Brush Wire-grass R  Aristida contorta Curly Wire-grass R  Atriplex semibaccata Berry Saltbush  Austrodanthonia sp.   Austrostipa elegantissima Feather Spear-grass  Austrostipa sp. Spear-grass  Bromus sp. Brome Bursaria spinosa ssp. lasiophylla Downy Bursaria  Callitris gracilis Southern Cypress Pine  Calostemma purpureum Pink Garland-lily Chamaesyce drummondii Chenopodium desertorum ssp. Small-leaf Goosefoot  microphyllum Convolvulus sp. Bindweed  

A-1 Appendix A Surveyed Flora and Location

Conservation Vegetation Community Significance

Species Common Name

Nat. State Reg. Mallee A. pycnantha woodland L. effusa grassland Austrostipa grassland E. odorata woodland A. verticillata woodland Dianella revoluta var. revoluta Black-anther Flax-lily  Dodonaea viscosa ssp. cuneata Wedge-leaf Hop-bush   Einadia nutans ssp. nutans Climbing Saltbush  Elymus scaber var. scaber Native Wheat-grass R   Enchylaena tomentosa var. tomentosa Ruby Saltbush   Enneapogon nigricans Black-head Grass  Enneapogon sp. Bottle-washers/Nineawn   Epilobium billardierianum Robust Willow-herb Eucalyptus gracilis Yorrell   Eucalyptus leucoxylon ssp. leucoxylon South Australian Blue Gum R  Eucalyptus odorata Peppermint Box  Eutaxia microphylla Common Eutaxia   Gonocarpus tetragynus Small-leaf Raspwort   Goodenia robusta Woolly Goodenia  Gramineae sp. Grass Family  Hardenbergia violacea Native Lilac  Juncus pallidus Pale Rush Juncus subsecundus Finger Rush Kennedia prostrata Scarlet Runner  Lepidosperma viscidum Sticky Sword-sedge  Lomandra effusa Scented Mat-rush 

A-2 Appendix A Surveyed Flora and Location

Conservation Vegetation Community Significance

Species Common Name

Nat. State Reg. Mallee A. pycnantha woodland L. effusa grassland Austrostipa grassland E. odorata woodland A. verticillata woodland Lomandra micrantha ssp. micrantha Small-flower Mat-rush  Lysiana exocarpi ssp. exocarpi Harlequin Mistletoe  Maireana brevifolia Short-leaf Bluebush  Maireana enchylaenoides Wingless Fissure-plant  Maireana georgei Satiny Bluebush  Maireana sp. Bluebush/Fissure-plant Olearia axillaris Coast Daisy-bush  Oxalis perennans Native Sorrel  Persicaria prostrata Creeping Knotweed Plantago sp. Plantain  Rhamnaceae sp.  Salsola kali Buckbush Scaevola albida Pale Fanflower  Scaevola sp. Fanflower  Senecio sp. Groundsel  Themeda triandra Kangaroo Grass  Thysanotus patersonii Twining Fringe-lily  Velleia sp. Velleia  Vittadinia blackii Narrow-leaf New Holland Daisy  Vittadinia cuneata Fuzzy New Holland Daisy  Vittadinia sp. New Holland Daisy  

A-3 Appendix A Surveyed Flora and Location

Conservation Vegetation Community Significance

Species Common Name

Nat. State Reg. Mallee A. pycnantha woodland L. effusa grassland Austrostipa grassland E. odorata woodland A. verticillata woodland Wahlenbergia luteola Yellow-wash Bluebell  *Acacia iteaphylla Flinders Ranges Wattle R  *Aira sp. Hair-grass  *Asclepias curassavica Red-head Cotton-bush  *Avena barbata Bearded Oat  *Briza maxima Large Quaking-grass  *Chenopodium album Fat Hen *Chondrilla juncea Skeleton Weed  *Cynara cardunculus ssp. flavescens Artichoke Thistle  *Cynodon dactylon var. dactylon Couch *Hirschfeldia incana Hoary Mustard *Juncus acutus Sharp Rush *Lycium ferocissimum African Boxthorn  *Marrubium vulgare Horehound  *Nicotiana glauca Tree Tobacco *Panicum hillmanii Witch-grass  *Polypogon monspeliensis Annual Beard-grass *Romulea rosea var. australis Common Onion-grass  *Salvia verbenaca form Wild Sage  *Scabiosa atropurpurea Pincushion *Senecio pterophorus African Daisy 

A-4 Appendix A Surveyed Flora and Location

Conservation Vegetation Community Significance

Species Common Name

Nat. State Reg. Mallee A. pycnantha woodland L. effusa grassland Austrostipa grassland E. odorata woodland A. verticillata woodland *Solanum nigrum Black Nightshade  *Trifolium arvense var. arvense Hare's-foot Clover  *Trifolium sp. Clover *Vulpia myuros Fescue 

A-5 Appendix B Biological Survey Quadrat Data

Biological Survey Quadrat – Austrostipa sp. Open tussock grassland

SITE DESCRIPTION Quadrat: Quadrat 1 Easting: 31802 8 Date: 13/2/07 Northing: 611441 0 Observer: Ben Taylor MGA Zone: 54 Note: This position is the north-west corner of the quadr a t .

PHYSICAL DESCRIPTION Landform Pattern: Hill Site Slope: 10 Landform Element: Hill slope Site Aspect: 225° Outcrop Cover: <10% Outcrop Lithology: Not identifie d Surface Strew Size: Surface Strew Cover: Surface Strew Lithology: Fire Scars: No Plant Litter: 65% Bare Earth: 3% Salt Crystals: 0%

DISTURBANCE Disturbance Impacts (within 30m radius of quadrat): None

VERTEBRATE PRESENCE Animals Present Evidence Type Rabbit Dung Sheep Dung Comments: Although evidence of sheep is present the area appears to have been stock free for a considerable time.

SOILS Surface Soil Texture Class: silty loam

B-1 Appendix B Biological Survey Quadrat Data

VEGETATION DESCRIPTION Quadrat Size: 30x30m Climatic Conditions: Dry Species AD LF CA LS Austrostipa sp. dominant overstorey grass <0.5m 2 dead/dormant Moss mosses 2 dead/dormant Austrodanthonia sp. grass <0.5m 1 dead/dormant Avena barbata* grass <0.5m 1 dead/dormant Gramineae sp. grass <0.5m 1 dead/dormant Elymus scaber grass <0.5m T dead/dormant Romulea rosea* herbaceous T dead/dormant Vittadinia cuneata herbaceous T flowering Aristeda behriana grass <0.5m N vegetative Convolvulus sp. herbaceous N vegetative Maireana enchylaenoides herbaceous N flowering Wahlenbergia luteola herbaceous N flowering

VEGETATION ASSOCIATION DESCRIPTION Life Form/Height Class Canopy Cover Grass <0.5m sparse Structural Description: Open (tussock) grassla n d Upper Stratum Age Classes Present: n/a

OVERSTOREY MEASUREMENTS Canopy Type: n/a Overstorey Height (m): n/a Canopy Depth (m): n/a Canopy Diameter (m): n/a Gap (m): n/a

B-2 Appendix B Biological Survey Quadrat Data

Biological Survey Quadrat – Lomandra effusa ± Heliochrysum leucopsideum Open tussock grassland

SITE DESCRIPTION Quadrat: Quadrat 2 Easting: 31813 9 Date: 13/2/07 Northing: 611455 0 Observer: Ben Taylor MGA Zone: 54 Note: This position is the north-west corner of the quadr a t .

PHYSICAL DESCRIPTION Landform Pattern: Hill Site Slope: 15° Landform Element: Hill slope Site Aspect: 90° Outcrop Cover: ni l Outcrop Lithology: n/a Surface Strew Size: cobble (51-250mm) Surface Strew Cover: <10% Surface Strew Lithology: Not identified Fire Scars: No Plant Litter: 40% Bare Earth: 5% Salt Crystals: 0%

DISTURBANCE Disturbance Impacts (within 30m radius of quadrat): Access tracks, gully erosion

VERTEBRATE PRESENCE Animals Present Evidence Type rabbit dung Comments:

SOILS Surface Soil Texture Class: silty loam

B-3 Appendix B Biological Survey Quadrat Data

VEGETATION DESCRIPTION Quadrat Size: 30x30m Climatic Conditions: Dry Species AD LF CA LS Lomandra effusa Dominant overstorey Sedge <0.5m 3 vegetative Austrodanthonia sp. Grass <0.5m 1 Dead/dormant Austrostipa sp. Grass <0.5m 1 Dead/dormant Avena barbata* Grass <0.5m 1 Dead/dormant Briza maxima* Grass <0.5m T Dead/dormant Elymus scaber Grass <0.5m T Dead/dormant Enchyleana tomentosa Shrub <0.5m T vegetative Enneapogon sp. Grass <0.5m T Dead/dormant Gramineae sp. Grass >0.5m T Dead/dormant Themeda triandra Grass >0.5m T Dead/dormant Acacia pycnantha emergent Tree <0.5m N vegetative Aristida behriana Grass <0.5m N Dead/dormant Dodonea viscosa ssp. cuneata Shrub >2m N vegetative Lepidosperma viscidum Sedge <0.5m N vegetative Maireana enchylaenoides Shrub <0.5m N immature fruits Maireana georgei shrub 0.5-1.0m N Mature fruits

VEGETATION ASSOCIATION DESCRIPTION LifeForm/HeightClass CanopyCover Sedges <0.5m mid dense Structural Description: Sedgeland Upper Stratum Age Classes Present: n/a

OVERSTOREY MEASUREMENTS Canopy Type: n/a Overstorey Height (m): n/a Canopy Depth (m): n/a Canopy Diameter (m): n/a

B-4 Appendix B Biological Survey Quadrat Data

Biological Survey Quadrat – Eucalyptus gracilis ± E. oleosa Open mallee

SITE DESCRIPTION Quadrat: Quadrat 3 Easting: 31815 2 Date: 13/2/07 Northing: 611524 0 Observer: Ben Taylor MGA Zone: 54 Note: This position is the north-west corner of the quadr a t .

PHYSICAL DESCRIPTION Landform Pattern: Hill Site Slope: 5° Landform Element: Hill slope Site Aspect: 180° Outcrop Cover: ni l Outcrop Lithology: n/a Surface Strew Size: cobble (51-250mm) Surface Strew Cover: <10% Surface Strew Lithology: Not identified Fire Scars: No Plant Litter: 35% Bare Earth: 10% Salt Crystals: 0%

DISTURBANCE Disturbance Impacts (within 30m radius of quadrat): Access tracks, borrow/quarry pit, coppice regrowth, fence lines

VERTEBRATE PRESENCE Animals Present Evidence Type

Comments:

SOILS Surface Soil Texture Class: loam

B-5 Appendix B Biological Survey Quadrat Data

VEGETATION DESCRIPTION Quadrat Size: 30x30m Climatic Conditions: Dry Species AD LF CA LS Eucalyptus gracilis Overstorey species mallee 3 Mature fruits Acacia pycnantha Understorey species Tree <0.5m 1 vegetative Eucalyptus leucoxylon ssp. leucoxylon Tree 5-15m N vegetative Allocasuarina verticillata Tree 5-15m N vegetative Briza maxima Grass <0.5m 1 Dead/dormant Gonocarpus tetragynus Understorey species Shrub <0.5m 1 Dead/dormant Senecio sp. herbaceous 1 Dead/dormant Austrodanthonia sp. Grass <0.5m 1 Dead/dormant Lomandra effusa Sedge <0.5m T vegetative Dianella revoluta var. revoluta Sedge >0.5m N vegetative Moss moss 2 Dead/dormant Austrostipa sp. Grass >0.5m T Dead/dormant Aira sp. Grass <0.5m T Dead/dormant Olearia axillaris Shrub <0.5m T Dead/dormant Austrostipa elegantissima Grass >0.5m T vegetative Thysanotus patersonii vine T Dead/dormant Romulea rosa herbaceous 1 Dead/dormant Goodenia robusta herbaceous T Dead/dormant Austrostipa sp. Understorey species Grass <0.5m 1 Dead/dormant Enchyleana tomentosa Shrub <0.5m N vegetative

VEGETATION ASSOCIATION DESCRIPTION Life Form/Height Class Canopy Cover Mallee >3m mid dense Sedges <0.5m very sparse Trees 5-15m very sparse Grass <0.5m sparse Herbaceous spp very sparse

B-6 Appendix B Biological Survey Quadrat Data

Structural Description: Mallee Upper Stratum Age Classes Present: mature, hollo w s

OVERSTOREY MEASUREMENTS Canopy Type: 50% Overstorey Height (m): 4, 3, 8, 9, 5, 10, 8, 9, 7, 5 Canopy Depth (m): 1, 0.5, 2, 1, 0.5, 1, 1.5, 0.5, 0.5, 1 Canopy Diameter (m): 1.5, 5, 4, 7, 1, 6, 2, 3, 6, 2 Gap (m): 0, 10, 2, 1, 8, 6, 0, 0, 2, 5

B-7 Appendix B Biological Survey Quadrat Data

Biological Survey Quadrat – Eucalyptus odorata Low woodland

SITE DESCRIPTION Quadrat: Quadrat 4 Easting: 31810 6 Date: 13/2/07 Northing: 611552 3 Observer: Ben Taylor MGA Zone: 54 Note: This position is the south-west corner of the quadr a t .

PHYSICAL DESCRIPTION Landform Pattern: Hill Site Slope: 15° Landform Element: Hill slope Site Aspect: 360° Outcrop Cover: ni l Outcrop Lithology: n/a Surface Strew Size: cobble (51-250mm) Surface Strew Cover: <10% Surface Strew Lithology: Not identified Fire Scars: No Plant Litter: 40% Bare Earth: 1% Salt Crystals: 0%

DISTURBANCE Disturbance Impacts (within 30m radius of quadrat): Access tracks

VERTEBRATE PRESENCE Animals Present Evidence Type macropod Dung, sightings Comments:

SOILS Surface Soil Texture Class: loam

B-8 Appendix B Biological Survey Quadrat Data

VEGETATION DESCRIPTION Quadrat size: 30x30 m Climatic Conditions: Dry Species AD LF CA LS Eucalyptus odorata Overstorey species Tree 5-15m 4 Enchylaena tomentosa Understorey species Shrub <0.5m 2 Austrodanthonia sp. Grass <0.5m 1 Acacia pycnantha Tree <0.5m N Amyema miquelii mistletoe N Asclepias curassavica Shrub 0-0.5m T Austrostipa elegantissima Grass <0.5m T Austrostipa sp. Grass <0.5m T Avena barbata Grass <0.5m T Chenopodium desertorum ssp. microphyllum Shrub <0.5m N Einadia nutans ssp. nutans Shrub <0.5m N Lomandra effusa Sedge <0.5m N Lomandra micrantha Sedge <0.5m N Lycium ferrocissimum Shrub 0.5-1m N Maireana brevifolia Shrub <0.5m N Moss moss T Senecio pterophorus Shrub 0.5-1m T Vittadinia blackii Shrub <0.5m T Vittadinia sp. Shrub <0.5m N

VEGETATION ASSOCIATION DESCRIPTION Life Form/Height Class Canopy Cover Trees 5-15m sparse Shrubs 0-0.5m sparse Grass <0.5m mid dense Structural Description: Low Woodland Upper Stratum Age Classes Present: sapling, mature, senescent, hollows, dead tree s

B-9 Appendix B Biological Survey Quadrat Data

OVERSTOREY MEASUREMENTS Canopy Type: 45% Overstorey Height (m): 10, 10, 8, 14, 6, 10 Canopy Depth (m): 1, 5, 3, 4, 2, 3, 2, 4, 5 Canopy Diameter (m): 18, 4, 10, 6, 4, 10, 3, 6, 8, 3 Gap (m): 1, 0, 0, 0, 5, 3, 4, 0, 0

B-10 Appendix C Combined Species List for all Surveys

Species Common Name Conservation Significancea Sourceb National State Regional Acacia acinacea Wreath Wattle 1 Acacia halliana Hall's Wattle 2 Acacia ligulata Umbrella Bush 4 Acacia microcarpa Manna Wattle 4 Acacia pycnantha Golden Wattle 1 Acaena echinata Sheep's Burr 5 Allocasuarina verticillata Drooping Sheoak 1 Amphipogon caricinus var. caricinus Long Grey-beard Grass 1 Amphipogon sp. Grey-beard Grass 4 Amyema miquelii Box Mistletoe 4 Aristida behriana Brush Wire-grass R 1 Aristida contorta Curly Wire-grass R 4 Arthropodium fimbriatum Nodding Vanilla-lily 1 Arthropodium strictum Common Vanilla-lily 1 Asperula conferta Common Woodruff 1 Astroloma humifusum Cranberry Heath 2 Atriplex semibaccata Berry Saltbush 1 Austrodanthonia caespitosa Common Wallaby-grass 5 Austrodanthonia pilosa Velvet Wallaby-grass K 5 Austrodanthonia setacea Small-flower Wallaby-grass 5 Austrodanthonia sp. 1 Austrostipa blackii Crested Spear-grass T 5 Austrostipa elegantissima Feather Spear-grass 1 Austrostipa eremophila Rusty Spear-grass 5 Austrostipa scabra group Falcate-awn Spear-grass 5 Austrostipa sp. Spear-grass 1 Blennospora drummondii Dwarf Button-flower 5 Bromus sp. Brome 4 Bulbine bulbosa Bulbine-lily R1 Bursaria spinosa Bursaria 1 Bursaria spinosa ssp. lasiophylla Downy Bursaria 4

C-1 Appendix C Combined Species List for all Surveys

Species Common Name Conservation Significancea Sourceb National State Regional Caesia calliantha Blue Grass-lily R 2 Callitris gracilis Southern Cypress Pine 1 Calostemma purpureum Pink Garland-lily 1 Centrolepis aristata Pointed Centrolepis K 5 Chamaesyce drummondii 4 Cheilanthes austrotenuifolia Annual Rock-fern 1 Chenopodium desertorum Desert Goosefoot 1 Chenopodium desertorum ssp. microphyllum Small-leaf Goosefoot 4 Chrysocephalum apiculatum Common Everlasting 2 Chrysocephalum baxteri White Everlasting 2 Chrysocephalum semipapposum Clustered Everlasting 1 Convolvulus erubescens complex 1 Convolvulus sp. Bindweed 4 Crassula colorata Dense Crassula 1 Crassula sieberiana complex Australian Stonecrop 1 Cryptandra sp. Cryptandra 1 Cullen australasicum Tall Scurf-pea 5 Cynoglossum suaveolens Sweet Hound's-tongue R 1 Daucus glochidiatus Native Carrot 5 Dianella revoluta var. revoluta Black-anther Flax-lily 1 Dichondra repens Kidney Weed 1 Diuris behrii Behr's Cowslip Orchid V V 1 Diuris sp. Donkey Orchid 1 Dodonaea viscosa ssp. cuneata Wedge-leaf Hop-bush 4 Dodonaea viscosa ssp. spatulata Sticky Hop-bush 1 Drosera macrantha ssp. planchonii Climbing Sundew 2 Einadia nutans ssp. nutans Climbing Saltbush 1 Elymus scaber var. scaber Native Wheat-grass R 1 Enchylaena tomentosa var. tomentosa Ruby Saltbush 1 Enneapogon nigricans Black-head Grass 1 Enneapogon sp. Bottle-washers/Nineawn 4

C-2 Appendix C Combined Species List for all Surveys

Species Common Name Conservation Significancea Sourceb National State Regional Epilobium billardierianum Robust Willow-herb 4 Eucalyptus calycogona ssp. calycogona Square-fruit Mallee 1 Eucalyptus gracilis Yorrell 4 Eucalyptus leucoxylon ssp. leucoxylon South Australian Blue Gum R 1 Eucalyptus odorata Peppermint Box 1 Eucalyptus oleosa ssp. oleosa Red Mallee 1 Eucalyptus phenax ssp. phenax White Mallee 1 Eucalyptus porosa Mallee Box 1 Eucalyptus rugosa Coastal White Mallee 2 Eucalyptus socialis 1 Eutaxia microphylla Common Eutaxia 1 Glycine rubiginosa Twining Glycine 1 Gonocarpus elatus Hill Raspwort 1 Gonocarpus tetragynus Small-leaf Raspwort 4 Goodenia pinnatifida Cut-leaf Goodenia 1 Goodenia pusilliflora Small-flower Goodenia 1 Goodenia robusta Woolly Goodenia 1 Gramineae sp. Grass Family 1 Halgania cyanea Rough Blue-flower 1 Hardenbergia violacea Native Lilac 1 Helichrysum leucopsideum Satin Everlasting 1 Hibbertia crinita Q5 Hydrocotyle callicarpa Tiny Pennywort 5 Hypoxis glabella var. glabella Tiny Star 1 Juncus bufonius Toad Rush 5 Juncus pallidus Pale Rush 4 Juncus subsecundus Finger Rush 4 Kennedia prostrata Scarlet Runner 1 Lagenophora huegelii Coarse Bottle-daisy 1 Lepidosperma viscidum Sticky Sword-sedge 1 Leptorhynchos squamatus ssp. squamatus Scaly Buttons R1

C-3 Appendix C Combined Species List for all Surveys

Species Common Name Conservation Significancea Sourceb National State Regional Levenhookia dubia Hairy Stylewort R 1 Lomandra densiflora Soft Tussock Mat-rush 1 Lomandra effusa Scented Mat-rush 1 Lomandra micrantha ssp. micrantha Small-flower Mat-rush 4 Lomandra multiflora ssp. dura Hard Mat-rush 1 Lomandra nana Small Mat-rush R 2 Lotus australis Austral Trefoil 5 Lysiana exocarpi ssp. exocarpi Harlequin Mistletoe 4 Maireana brevifolia Short-leaf Bluebush 1 Maireana enchylaenoides Wingless Fissure-plant 1 Maireana georgei Satiny Bluebush 4 Maireana sp. Bluebush/Fissure-plant 4 Microtis unifolia complex Onion-orchid 1 Millotia myosotidifolia Broad-leaf Millotia 1 Neurachne alopecuroidea Fox-tail Mulga-grass 1 Olearia axillaris Coast Daisy-bush 4 Olearia ramulosa Twiggy Daisy-bush R 1 Oxalis perennans Native Sorrel 1 Panicum effusum var. effusum Hairy Panic 5 Persicaria prostrata Creeping Knotweed 4 Pheladenia deformis Bluebeard Orchid 1 Phyllangium divergens Wiry Mitrewort 5 Pimelea curviflora var. gracilis Curved Riceflower 1 Pimelea micrantha Silky Riceflower 5 Plantago gaudichaudii Narrow-leaf Plantain T 1 Plantago sp. Plantain 4 Plantago varia Variable Plantain 5 Pogonolepis muelleriana Stiff Cup-flower 1 Pomaderris paniculosa ssp. paniculosa Mallee Pomaderris 2 Poranthera microphylla Small Poranthera 5 Pteridium esculentum Bracken Fern R4

C-4 Appendix C Combined Species List for all Surveys

Species Common Name Conservation Significancea Sourceb National State Regional Pterostylis sp. Greenhood 1 Ptilotus erubescens Hairy-tails R R 5 Ptilotus spathulatus f. spathulatus Pussy-tails 1 Rhamnaceae sp. 4 Salsola kali Buckbush 4 Scaevola albida Pale Fanflower 1 Scaevola sp. Fanflower 4 Sebaea ovata Yellow Sebaea 5 Senecio picridioides Purple-leaf Groundsel R 5 Senecio pinnatifolius Variable Groundsel 1 Senecio quadridentatus Cotton Groundsel 1 Senecio sp. Groundsel 4 Senna artemisioides Desert Senna 1 Solenogyne dominii Smooth Solenogyne R 1 Stackhousia monogyna Creamy Candles 1 Swainsona sp. Swainson-pea 1 Themeda triandra Kangaroo Grass 4 Thysanotus patersonii Twining Fringe-lily 1 Tricoryne elatior Yellow Rush-lily 5 Triptilodiscus pygmaeus Small Yellow-heads 1 Velleia arguta Toothed Velleia 1 Velleia paradoxa Spur Velleia 5 Velleia sp. Velleia 4 Vittadinia blackii Narrow-leaf New Holland Daisy 4 Vittadinia cervicularis var. cervicularis WaistedNewHollandDaisy 5 Vittadinia cuneata var. cuneata f. cuneata Fuzzy New Holland Daisy 1 Vittadinia gracilis Woolly New Holland Daisy 1 Vittadinia megacephala Giant New Holland Daisy 1 Vittadinia sp. New Holland Daisy 4 Wahlenbergia luteola Yellow-wash Bluebell 1 Wahlenbergia stricta ssp. stricta Tall Bluebell 1

C-5 Appendix C Combined Species List for all Surveys

Species Common Name Conservation Significancea Sourceb National State Regional Wurmbea sp. Nancy 2 *Acacia cyclops Western Coastal Wattle 1 *Acacia iteaphylla Flinders Ranges Wattle R 4 *Aira elegantissima Delicate Hair-grass 5 *Aira sp. Hair-grass 4 *Anagallis arvensis Pimpernel 5 *Asclepias curassavica Red-head Cotton-bush 4 *Asparagus asparagoides Bridal Creeper 3 *Asphodelus fistulosus Onion Weed 1 *Avena barbata Bearded Oat 1 *Briza maxima Large Quaking-grass 4 *Briza minor Lesser Quaking-grass 1 *Bromus hordeaceus ssp. hordeaceus Soft Brome 5 *Carduus pycnocephalus Shore Thistle 5 *Centaurea melitensis Malta Thistle 5 *Centaurium erythraea Common Centaury 5 *Chenopodium album Fat Hen 4 *Chondrilla juncea Skeleton Weed 4 *Chrysanthemoides monilifera ssp. monilifera Boneseed 3 *Cynara cardunculus ssp. flavescens Artichoke Thistle 1 *Disa brachteata South African Weed Orchid 6 *Echium plantagineum Salvation Jane 1 *Galium murale Small Bedstraw 5 *Gomphocarpus cancellatus Broad-leaf Cotton-bush 1 *Juncus acutus Sharp Rush 4 *Lycium ferocissimum African Boxthorn 4 *Marrubium vulgare Horehound 1 *Nicotiana glauca Tree Tobacco 5 *Olea europaea ssp. europaea Olive 3 *Oxalis pes-caprae Soursob 1 *Panicum hillmanii Witch-grass 4

C-6 Appendix C Combined Species List for all Surveys

Species Common Name Conservation Significancea Sourceb National State Regional *Parentucellia latifolia Red Bartsia 1 *Pentaschistis pallida Pussy Tail 5 *Petrorhagia dubia Velvet Pink 5 *Pinus halepensis Aleppo Pine 3 *Polypogon monspeliensis Annual Beard-grass 4 *Romulea minutiflora Small-flower Onion-grass 5 *Romulea rosea var. australis Common Onion-grass 4 *Salvia verbenaca form Wild Sage 1 *Scabiosa atropurpurea Pincushion 1 *Senecio pterophorus African Daisy 1 *Silene gallica var. gallica French Catchfly 5 *Solanum nigrum Black Nightshade 4 *Spergularia sp. Sand-spurrey 1 *Tolpis barbata Yellow Hawkweed 5 *Trifolium angustifolium Narrow-leaf Clover 1 *Trifolium arvense var. arvense Hare's-foot Clover 4 *Trifolium sp. Clover 4 *Vulpia ciliata Fringed Fescue 5 *Vulpia myuros Fescue 4

*Introduced species aConservation Significance Codes: V = Vulnerable; rare and at risk from potential threats in the long term T = Threatened; rare and likely to become either endangered or vulnerable R = Rare; having a low overall frequency, confined to a restricted range or scattered sparsely over a wide area K = Uncertain; either threatened or rare but insufficient data for a more precise assessment bSources: 1 = Playfair (2004) 2 = not 1 but Kanmantoo-Callington Landcare Group Significant Vegetation Study (2006) 3 = not 1 or 2 but Kanmantoo-Callington Landcare Group Interim Weed Control Strategy (2006) 4 = not 1, 2 or 3 but the survey undertaken for this report 5 = not 1, 2, 3 or 4 but Biological Database of South Australia (DEH) 6 = not 1, 2, 3, 4 or 5 but Ecological Associates (2006)

C-7 Appendix D Data for Scattered Trees within Proposed Project Footprint

hollows ) Longitude Latitude Species 2 Tree # Height (m) DBH (cm) Canopy Radius (m) Canopy Area (m %Dieback small medium large Threatened Species Score Density Score Proximity Score Tree Score SEBMF Photo File (DSCN)

10 138.98798044800 -35.08341939190 Eucalyptus odorata 9 75 6 113.1 10 3 3 1 1 1 43.84 8 2461

11 138.99052921700 -35.08267491120 Eucalyptus odorata 12 65 6 113.1 0 1 1 1 1 2 2 69.06 10 2462

12 138.99081621300 -35.08295863870 Eucalyptus odorata 11 60 5 78.5 5 2 1 2 2 66.45 10 2462

13 138.99075376800 -35.08301999420 Eucalyptus odorata 8 60 5.5 95.0 5 1 1 2 2 39.13 6 2462

14 138.99153563200 -35.08289845660 Eucalyptus odorata 12 75 6 113.1 10 1 2 2 33.94 6 2463

15 138.99153563200 -35.08289845660 Eucalyptus odorata 11 40 7 153.9 0 1 2 2 37.35 6 2463

16 138.99123799100 -35.08317589760 Eucalyptus odorata 9 50 6 113.1 0 2 1 2 2 40.97 8 2464

17 138.99127545800 -35.08324747910 Eucalyptus odorata 6 40 4 50.3 20 1 1 2 2 33.94 6 2464

18 138.99160453100 -35.08340639990 Eucalyptus odorata 9 50 4 50.3 0 1 2 2 28.86 6 2465

19 138.99160453100 -35.08340639990 Eucalyptus odorata 9 45 3 28.3 0 1 1 2 2 56.07 8 2465

20 138.99188021200 -35.08302669970 Eucalyptus odorata 11 90 8.5 227.0 0 1 1 2 2 69.06 10 2466

21 138.99197107200 -35.08324529980 Eucalyptus odorata 9 50 6.5 132.7 0 1 2 2 28.86 6 2467

22 138.99201432200 -35.08332828060 Eucalyptus odorata 10 40 6.5 132.7 0 1 1 2 2 51.59 8 2467

D-1 Appendix D Data for Scattered Trees within Proposed Project Footprint

hollows ) Longitude Latitude Species 2 Tree # Height (m) DBH (cm) Canopy Radius (m) Canopy Area (m %Dieback small medium large Threatened Species Score Density Score Proximity Score Tree Score SEBMF Photo File (DSCN)

23 138.99183947600 -35.08337941020 Eucalyptus odorata 13 60 6 113.1 0 1 1 1 2 2 69.06 10 2467

24 138.99179345900 -35.08342953400 Eucalyptus odorata 11 45 7.5 176.7 5 1 1 2 2 49.44 8 2467

25 138.99165096700 -35.08392104880 Eucalyptus odorata 8 85 6 113.1 0 1 1 1 1 34.35 6 2468

26 138.99244297300 -35.08401073520 Eucalyptus odorata 10 40 5.5 95.0 0 1 1 1 31.14 6 2469

27 138.99447499800 -35.08505076170 Eucalyptus odorata 12 80 7.5 176.7 0 1 2 1 2 1 47.87 8 2470

28 138.99451682300 -35.08520448580 Eucalyptus odorata 11 40 7.5 176.7 0 1 2 1 34.35 6 2470

29 138.99522174100 -35.08630167690 Eucalyptus odorata 9 55 5 78.5 10 1 1 1 21.16 6 2471

30 138.99502367700 -35.08629815650 Eucalyptus odorata 12 55 4.5 63.6 5 1 1 1 29.60 6 2472

31 138.99391299100 -35.08221415800 Eucalyptus odorata 11 120 7 153.9 5 1 1 1 29.60 6 2473

32 138.99231791500 -35.08158417420 Eucalyptus odorata 9 80 6 113.1 0 1 1 1 2 1 37.79 6 2474

33 138.99257188700 -35.08160043510 Eucalyptus odorata 7 55 5 78.5 20 1 1 1 2 1 43.84 8 2475

41 138.99410963100 -35.08801644670 Eucalyptus odorata 12 60 3.5 38.5 50 2 1 1 1 27.05 6 2485

42 138.99416713000 -35.08812909950 Eucalyptus odorata 9 40 3.5 38.5 5 1 1 1 22.38 6 2486

D-2 Appendix D Data for Scattered Trees within Proposed Project Footprint

hollows ) Longitude Latitude Species 2 Tree # Height (m) DBH (cm) Canopy Radius (m) Canopy Area (m %Dieback small medium large Threatened Species Score Density Score Proximity Score Tree Score SEBMF Photo File (DSCN)

43 138.99359833400 -35.08796364070 Eucalyptus odorata 6 25 2.5 19.6 30 1 1 3 1 43.84 8 2488

44 138.99359833400 -35.08796364070 Eucalyptus odorata 11 50 5 78.5 20 1 3 1 31.14 6 2488

45 138.99359833400 -35.08796364070 Eucalyptus odorata 4 20 2 12.6 5 1 1 3 1 30.75 6 2488

46 138.99288126300 -35.08845331150 Eucalyptus odorata 10 40 3.5 38.5 5 1 1 1 2 61.42 10 2489

47 138.99118250200 -35.08825868370 Eucalyptus odorata 10 35 5 78.5 20 1 1 3 30.36 6 2492

48 138.99106356300 -35.08893879130 Eucalyptus odorata 9 40 4 50.3 5 1 1 3 27.05 6 2493

49 138.99106356300 -35.08893879130 Eucalyptus odorata 5 45 3.5 38.5 5 1 1 1 3 38.68 6 2493

50 138.99122181300 -35.08781109010 Eucalyptus odorata 7 20 2 12.6 30 1 3 2 23.33 6 2494

51 138.99122181300 -35.08781109010 Eucalyptus odorata 8 45 4 50.3 70 1 3 2 14.49 4 2494

52 138.99122181300 -35.08781109010 Eucalyptus odorata 5 20 2 12.6 10 1 3 2 28.86 6 2494

53 138.99122181300 -35.08781109010 Eucalyptus odorata 6 30 2 12.6 20 1 3 2 26.00 6 2494

54 138.99122181300 -35.08781109010 Eucalyptus odorata 7 40 3 28.3 5 1 3 2 30.36 6 2494

55 138.99098093800 -35.08720165960 Eucalyptus odorata 8 35 3.5 38.5 20 1 1 1 2 30.75 6 2495

D-3 Appendix D Data for Scattered Trees within Proposed Project Footprint

hollows ) Longitude Latitude Species 2 Tree # Height (m) DBH (cm) Canopy Radius (m) Canopy Area (m %Dieback small medium large Threatened Species Score Density Score Proximity Score Tree Score SEBMF Photo File (DSCN)

56 138.99122264900 -35.08765319900 Eucalyptus odorata 5 50 3.5 38.5 10 1 2 2 26.00 6 2496

57 138.99054464000 -35.08737405760 Eucalyptus odorata 7 25 3 28.3 90 1 2 2 9.58 4 2497

58 138.99021456000 -35.08743088690 Eucalyptus odorata 7 45 3.5 38.5 20 1 2 2 23.33 6 2498

59 138.99027801100 -35.08779784660 Eucalyptus odorata 6 25 2.5 19.6 60 1 2 2 14.49 4 2499

60 138.99013526700 -35.08856881410 Eucalyptus odorata 10 50 5 78.5 20 1 1 2 2 43.35 8 2500

61 138.98985983800 -35.08888598530 Eucalyptus odorata 9 35 2.5 19.6 10 1 2 2 26.00 6 2501

62 138.98985883200 -35.08908547460 Eucalyptus odorata 7 40 4.5 63.6 5 1 2 2 27.40 6 2502

63 138.98985883200 -35.08908547460 Eucalyptus odorata 4 8 1 3.1 0 1 2 2 21.76 6 2502

64 138.98913790500 -35.08945796640 Eucalyptus odorata 11 80 5 78.5 0 1 2 3 40.51 8 2503

65 138.98913790500 -35.08945796640 Eucalyptus odorata 7 30 1.5 7.1 80 1 2 3 12.49 4 2504

66 138.98905442100 -35.08889369670 Eucalyptus odorata 8 30 4.5 63.6 5 1 2 3 29.98 6 2505

67 138.98911703400 -35.08863721040 Eucalyptus odorata 8 35 4.5 63.6 20 1 2 3 25.65 6 2506

68 138.98896683000 -35.08814636620 Eucalyptus odorata 9 70 3.5 38.5 20 1 1 2 3 36.91 6 2508

D-4 Appendix D Data for Scattered Trees within Proposed Project Footprint

hollows ) Longitude Latitude Species 2 Tree # Height (m) DBH (cm) Canopy Radius (m) Canopy Area (m %Dieback small medium large Threatened Species Score Density Score Proximity Score Tree Score SEBMF Photo File (DSCN)

Allocasuarina 69 138.98932985000 -35.08794771510 verticillata 8 30 3 28.3 0 1 2 3 40.51 8 2509

73 138.99037438000 -35.09059616730 Eucalyptus odorata 10 40 2.5 19.6 10 1 1 1 2 2 63.90 10 2533

74 138.99356257900 -35.09166660920 Eucalyptus odorata 7 25 2 12.6 40 1 2 2 18.56 4 2536

75 138.99356257900 -35.09166660920 Eucalyptus odorata 7 45 4 50.3 30 1 1 2 18.56 4 2536

D-5 Appendix 6

Kanmantoo Copper Project Fauna Baseline Survey and Impact Assessment Final Report

Kanmantoo Copper Project: Fauna Baseline Survey and Impact Assessment

Coffey Natural Systems 2-3 Greenhill Rd Wayville SA 5034

August 2007

ECOLOGICAL ASSOCIATES REPORT DE006-C3 Contents

1 Introduction ------1-1 1.1 Introduction 1-1 1.2 Objectives 1-1 1.3 Background 1-1

2 Background ------2-1 2.1 Site Description 2-1 2.2 Nature and Extent of Mine Project 2-3 2.3 Legislative Framework 2-4 2.4 Existing Data 2-4

3 Fauna Survey------3-1 3.1 Introduction 3-1 3.2 Methods 3-1 3.3 Results 3-4

4 Discussion of Results------4-1 4.1 Regional Perspective 4-1 4.2 Species of Management Concern 4-2

5 Threat Assessment ------5-1 5.1 Approach to Threat Assessment 5-1 5.2 Vegetation Clearance 5-1 5.3 Noise and Vibration 5-4 5.4 Dust 5-5 5.5 Traffic and Activity 5-5 5.6 Attraction of Water Birds to Contaminated Water 5-6 5.7 Summary of Threats to Species of Conservation Significance 5-6

6 Further Investigations------6-1 6.1 Diamond Firetail Investigations 6-1 6.2 Spring Survey 6-1

7 References ------7-1

i Figures, Tables & Appendices

Figures Figure 1: Kanmantoo Copper Project study area (white line), native vegetation communities (coloured), and vegetation survey quadrats (black squares)...... 2-2 Figure 2: Kanmantoo Copper Project footprint (black-hatched or dappled areas), and Significant Environmental Benefit (SEB) assessment for each native vegetation community..... 2-3 Figure 3: Sites of trap-lines A. Eucalyptus odorata woodland B. Austrostipa grassland C. Lomandra effusa grassland...... 3-3

Tables Table 1: Weather during survey period. Weather station located on Kanmantoo Project Area, MacFarlane Hill...... 3-4 Table 2: Trapline Survey (Pitfall Traps, Elliot Traps, and Cage Traps)...... 3-5 Table 3: Roaming Survey – ...... 3-6 Table 4: Roaming Survey – Birds ...... 3-7 Table 5: Physical Search – Reptiles and Amphibians...... 3-10 Table 6: identified from Anabat Recordings (27/02/06 – 02/03/07) ...... 3-12 Table 7: Spotlighting Survey ...... 3-13 Table 8: Bird species observed in survey compared with number in DEH records within a 7 km radius of the Kanmantoo Copper Mine...... 4-2 Table 9: Area and conservation significance of surveyed woodland vegetation communities in the Kanmantoo Copper Project. Vegetation condition was reported as a significant environmental benefit (SEB) ratio (DWLBC 2005). Higher SEB ratios indicate better quality habitat...... 5-2

Appendices Appendix A DEH records of birds within 6 km of the Kanmantoo Copper Mine area boundary Appendix B species call identification graphs Appendix C Mammals Appendix D Reptiles

ii Executive Summary

Scope of Work Ecological Associates was engaged by Coffey Natural Systems on behalf of Hillgrove Resources to: • survey the fauna of the Kanmantoo Copper Project Area • identify potential impacts to fauna associated with the project; and • identify opportunities to avoid, minimise or mitigate impacts; • recommend further investigations, if required; and • recommend a program to monitor the effects of mine on fauna in the future.

Methods Records of fauna previously observed in the region were extracted from the Biological Survey of South Australia to assess the fauna likely to be present in the area. A survey of the site, based on the methods of the Biological Survey of South Australia, was conducted over one week in February 2007. The survey involved trapping, bird searches, active searches for vertebrate fauna in litter, debris, hollows and bark, spotlighting and bat recordings. The survey assessed the fauna of the main habitat types of the site (Eucalyptus odorata woodland, Lomandra effusa tussock grassland and Austrostipa sp. grassland) and the general landscape.

Findings The overall diversity of fauna found at the site was low in comparison to records of fauna previously observed in the area. The abundances of fauna were also low in comparison to values expected from surveys in similar habitats. The low diversity and abundances are believed to partly reflect the low rainfall experienced in the region in the 12 months prior to the survey and the timing of the survey in late summer, when many species may not be active. The greatest diversity and abundance of fauna was found in the E. odorata woodland. This vegetation provided relatively complex habitat components such as hollows, understorey vegetation, logs and deep debris. Species diversity and abundances were lower in the L. effusa tussock grassland. However, this habitat type supports specialist grassland species that are unlikely to be found in other vegetation types. Two bird species of conservation significance listed under the South Australian National Parks and Wildlife Act 1972 were observed. Diamond Firetail Stagonopleura guttata is recognised as vulnerable. It was mainly associated with the E. odorata woodland. Peregrine Falcon Falco peregrinus is recognised as rare. A pair is resident at the site and nests annually in the cliff face of the existing open cut. One migratory bird species that is protected under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) was observed. The Rainbow Bee-eater Merops ornatus

ES-1 Executive Summary

is subject to the Japan Australia Migratory Bird Agreement (JAMBA) and is therefore protected under the EPBC Act. The Brushtail Possum Trichosurus vulpecula was observed. This species has been proposed for listing as rare under the schedules of the National Parks and Wildlife Act (NPWC & DEH 2003). This species is dependent on tree hollows and was observed in the E. odorata woodland.

Potential Impacts The proposed mine development potentially impacts on the fauna of the site. The potential impacts and measures to address these impacts are identified in Table ES-1. Table ES-1. Potential Impacts and Impact Minimisation Measures

Potential Impact Possible Minimisation Measures Clearing vegetation and therefore reducing fauna habitat Reduce impacts by planning excavations, roadways and in E. odorata woodland, L. effusa tussock grassland, other infrastructure by avoiding remnant vegetation, Austrostipa sp. grassland, mallee vegetation and where possible. scattered trees. Minimise impacts by avoiding high quality habitat, where possible. Disturbing fauna from the noise of blasting, traffic, Locate noisy activities as far as possible from high value excavations, ore processing and other activities habitat. Take measures to minimise noise generation. Disturbing fauna from vibrations associated with blasting, Locate disturbing activities as far as possible from high traffic, excavations, ore processing and other activities value habitat. Take measures to minimise vibration generation. Degrading habitat quality by dust generated from the Minimise dust creation in excavations, vehicle movement mine and roadways and ore processing. Maintain roads to minimise dust creation. Degrading habitat quality by weed invasion associated Control movement of weed-contaminated vehicles and with increased traffic soil and ensure vehicles remain free of soil and weeds. Implement a weed monitoring and control program.

Significance of Impacts The mine development may significantly impact on Diamond Firetails, which have conservation significance at the state level. This species is closely associated with grassy woodlands such as the E. odorata woodland on the site. Their significant decline in South Australia is associated with habitat loss and predation. In order to clarify the significance of any impacts on this species, further investigations are required to assess the size of the population on the site and the distribution of the species in the region. It may be possible to mitigate the impacts of the mine by rehabilitating or protecting similar habitat elsewhere. The potential impact on Rainbow Bee-eater is not expected to be significant at the national level. The regional and national population of this species is not threatened. Mitigation measures associated with the Significant Environmental Benefit for vegetation are likely to provide alternative habitat for this species.

ES-2 Executive Summary

The potential impact on Brushtail Possum may be significant at the local, regional and state level. This species depends on tree hollows and productive habitat associated with grassy woodlands. It may be possible to mitigate impacts on this species by protecting and rehabilitating other grassy woodland habitat elsewhere. The potential impact on Peregrine Falcon is not expected to be significant at the local, regional, state or national level. The breeding pair may leave the site when the mine is redeveloped, but this is not likely to significantly affect the security of this species in the region. Impacts on other fauna affected by the mine are expected to be mitigated by habitat rehabilitation under the Significant Environmental Benefit framework. They are not expected to be significant.

Recommendations Further investigations are recommended to assess: • Diamond Firetail distribution and numbers in grassy woodland remnants within the region; and • the size and nature of the Diamond Firetail population on the site. It is recommended that, where possible, activities involving vegetation clearance, excavations, traffic, noise and other disturbances be located to avoid remnant vegetation. In order of priority, protection should be given to: 1. Eucalyptus odorata woodland and mallee; 2. Lomandra effusa grassland; and 3. Austrostipa sp grassland. Impact on fauna habitat can be mitigated to some extent by the preservation, restoration or creation of similar habitat elsewhere. Mitigation processes are not relevant to the Peregrine Falcons that presently use the site. Alternative habitat could be preserved or rehabilitated to mitigate expected impacts on Diamond Firetail, Rainbow Bee-eaters and Brushtail Possum.

ES-3 Introduction SECTION 1

1 I ntr oduc tio n

1.1 Introduction

Coffey Natural Systems, on behalf of Hillgrove Resources Limited (HRL), engaged ecological Associates to carry out a fauna baseline survey to assess the potential impacts of the proposed redevelopment and expansion of the Kanmantoo Copper Mine (‘the project’) on local fauna, habitats, and associated ecological communities.

1.2 Objectives

The purpose of the survey and impact assessment was to provide information on fauna for the Kanmantoo Copper Project Mining Lease Proposal (MLP). The scope of work was as follows. 1. Baseline Survey • Survey the study area to describe the fauna species (including introduced species) and habitat types with a particular focus on species and communities of conservation significance (ie local, regional, state or national). • Place the species and habitats present in the study area in a regional context. 2. Impact Assessment • Describe the potential impact of the project (including construction, operations, decommissioning, post-decommissioning) on species, communities and habitats of local, regional, state or national significance. Placing this within local, regional, state and national context as appropriate. • Describe any impact of the project to introduced fauna species. • Describe the ability of communities or individual species to recover from habitat disturbance associated with the project. • Discuss ways in which impacts on species, communities and habitats can be minimised or mitigated, including possible methods for protecting areas that will not be disturbed. • Discuss the regional context for fauna and habitats of conservation significance, and the relative importance of the study area within this context. • Describe potential residual impacts of the project following implementation of mitigation measures and rehabilitation. • Identify uncertainties with respect to the fauna impact assessment.

1.3 Background

The Kanmantoo Copper Project is located between the townships of Kanmantoo (1.5 km to the north east) and Callington (3.5 km to the south east), 44 km east of Adelaide in South Australia. The project area has been subject to intermittent mining operations from the mid 1800’s to the 1970’s. The original Kanmantoo mine was first worked in 1848 and activities continued, with numerous breaks,

1-1 Introduction SECTION 1

over the next century. An open pit resource was defined in 1969 and Kanmantoo Mines Pty Ltd worked this from 1971 to 1976. The site now contains a decommissioned open cut, tailings storage and waste rock dump. The granted mining lease ML5776 covers the Kanmantoo Mine and copper-gold resource. The areas to the immediate south and north of ML5776 are covered by EL 3298 which is surrounded by the larger EL3277 which covers 498 km2. A prefeasibility study for this project was completed in June 2006, which returned a positive result.

1-2 Background SECTION 2

2 Background

2.1 Site Description

The Kanmantoo Copper Mine Project is located in the Eastern Mount Lofty Ranges Ecological Area near the western boundary of the South Australian Murray Darling Basin (Kahrimanis et al. 2001). The project is to be developed within an area of 439 ha (Figure 1). A north – south trending range, reaching a height of about 120 m above the surrounding area, dominates the immediate physical environment of the Kanmantoo Copper Mine area. The slopes of these hills are steep and dissected by several gullies but the area on the top of the hills is gently undulating. All watercourses in the area of the mine are first order streams and flow intermittently. They contain salt tolerant vegetation (*1Juncus acutus) suggesting they receive saline groundwater discharge. The existing open cut is about 470 m across at its widest point. It is roughly circular and about 120 m deep from the western, highest pit wall. The 1971-76 mine plant and administration buildings were all located to the southeast of the pit, in the area now occupied by Neutrog Australia, a fertilizer manufacturer. An acid leaching mineral extraction plant is presently operating directly to the east of the pit and MacFarlane Hill. Much of western part of the project area has been cleared for grazing and was previously part of the Paringa Station. A waste-rock dump, from the previous open pit mining operations, is located immediately west of the open pit. It consists of approximately 25 million tonnes of rock and covers an area of approximately 0.36 km2. This waste-rock dump has a level upper surface and very steep sides. Soil has been placed on the top of the waste dump and revegetated with a variety of local and non-local native trees species. High-density plantations are found on the eastern side. Most of the dump surface is covered by Golden Wattle (Acacia pycnantha) bare ground, and grass covers. To the north of the waste-rock dump is located the old tailings retention area, covering about 0.35 km2. This site has also been capped with soil and revegetated with a variety of tree species. It has extensive areas of bare ground and grass across it. In a gully to the east of this tailings area are two dams that retain acid leachate from the tailings. Remnant Eucalyptus leucoxylon woodland is found on the slopes around these dams. A *J. acutus wetland has formed to the west of the tailings area. A variety of remnant native vegetation communities are found across the eastern half of the site (Figure 1). These habitat types consist of Eucalyptus odorata woodlands, Eucalyptus leucoxylon woodlands, Allocasuarina verticillata woodlands, Callitris gracilis woodlands, and mallee woodlands, which extend from the north face of the open pit to the north and west. All habitat remnants vary in quality across the site (Figure 2). To the west between the waste rock dump and the old tailings storage area is a very healthy mature remnant of the Eucalyptus odorata woodland. The understorey of other nearby remnants has been heavily grazed and is in poorer condition. The Eucalyptus odorata woodland continues to the north of the old tailings storage area, on to a gently rising ridge and to the west of the Kanmantoo township. This area has been grazed and the understorey predominantly comprises introduced grass

1 Designates introduced flora or fauna throughout the text.

2-1 Background SECTION 2

species. The Peppermint Box (Eucalyptus odorata) Grassy Woodland is listed as a Critically Endangered Ecological Community under the EPBC Act. Eucalyptus odorata Woodland is also recognized as a plant association of high conservation significance in South Australia (Neagle 1995). This plant association occurs only in South Australia (DEH 2005b, a) and is listed as a critically endangered ecosystems of South Australia’s agricultural region. The community is of significance in the Kanmantoo region as only 6% of native vegetation remains and only 8% of the Eastern Mount Lofty Ranges Regional Ecological Area is formally protected in NPWSA reserves and Heritage Agreements (Kahrimanis et al. 2001). The largest Eucalyptus odorata Woodland remnants occur in the Kanmantoo area between the Princes Highway and the Back Callington Road, west of Mine Road. This includes the remnants within the Kanmantoo mine lease. A third of the E. odorata woodlands of high quality within the study region occur within the mine lease (Ecological Associates 2007b).

Figure 1: Kanmantoo Copper Project study area (white line), native vegetation communities (coloured), and vegetation survey quadrats (black squares).

To the south of the open pit, the area is dominated by MacFarlane Hill. MacFarlane Hill extends about 800 m south from the southern rim of the open pit. The hill is quite flat on top but has very steep sides. It has been cleared of trees and shrubs, although Drooping Sheoaks (Allocasuarina verticillata) are scattered in places and a number of introduced eucalyptus trees have been planted near the summit. The area has been used for stock grazing. Over parts of this area, generally on the east slope of MacFarlane Hill, there is a community of Lomandra effusa, which forms dense tussocks. The Iron Grass (Lomandra

2-2 Background SECTION 2

effusa) Natural Temperate Grassland is listed as a Critically Endangered Ecological Community under the EPBC Act. The area of Lomandra effusa grassland within the site represents only a small proportion of the high quality Lomandra grasslands in the study region (Ecological Associates 2007b). It is of significance as it is one of the few patches that are not grazed. To the west of the saddle there is an Austrostipa grassland community.

2.2 Nature and Extent of Mine Project

The proposed works and the quality of vegetation are presented in Figure 2. The quality of vegetation is expressed as Significant Environmental Benefit (SEB) ratios, which represent the area of vegetation that is required to compensate any vegetation clearance. High SEB ratios (e.g. 8:1) reflect high quality vegetation.

Figure 2: Kanmantoo Copper Project footprint (black-hatched or dappled areas), and Significant Environmental Benefit (SEB) assessment for each native vegetation community. The project extends the existing open cut mainly to the south and slightly to the north. Two satellite pits may be developed to the north of the existing pit and two to the southwest. The existing waste rock dump will be extended and raised by 20 m and combined with a new tailings storage facility (approximately 1 km external diameter) to the west of the waste rock dump on the Paringa farmland. A new processing

2-3 Background SECTION 2

plant and equipment area (200 m x 200 m) will be constructed to the south of the existing rock dump on the Paringa farmland.

2.3 Legislative Framework

Primary Industries and Resources South Australia (PIRSA) will assess the Kanmantoo Copper Project (KCP) under the Mining Act 1971. The key assessment document under the Mining Act is the Mining Lease Proposal (MLP). The MLP will be placed on public exhibition and referred to relevant State Government agencies for comment. PIRSA will consider available information including the Mining Lease application, the MLP, and submissions on the MLP in making the decision to approve the project, and the establishment of appropriate mining lease conditions. The MLP must identify the potential impacts of a mine development on fauna and identify measures to avoid, minimise or mitigate impacts. The MLP must identify how impacts will be monitored and measures to rehabilitate the mine after closure. Matters of National Environmental Significance (NES) are identified in the schedules of the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Actions that will have, or are likely to have a significant impact on a matter of NES must be referred to the Commonwealth Minister for the Environment. The South Australian National Parks and Wildlife Act 1972 (NP&W Act) prohibits the taking or disturbance of native animals. The Act provides particular protection to endangered, vulnerable and rare species, which are listed in the schedules of the Act. A permit may be sought from the Minister for the Environment through the Department of Environment and Heritage (DEH) for actions, which affect protected species. The Act does not specify the requirements of a permit, but it is necessary to inform the Department of the species to be affected, how they will be affected, what measures have been taken to avoid disturbance and what amelioration measures have been proposed. A referral was lodged under the EPBC Act on 26 February 2007 and the DEWR determined on 30 March 2007 that the project is not a controlled action. No further assessment under the EPBC Act is therefore required for the project.

2.4 Existing Data

No fauna survey work has previously been conducted at the site. Existing records of flora and fauna relevant to the site have previously been reviewed (Parsons Brinckerhoff 2006). This study involved a desktop assessment of potential impacts of the mine on species of state and national conservation significance. Records of fauna previously observed in the region were extracted from the Biological Survey of South Australia in February 2007. Records for an area of 6 km radius from the site boundary were reviewed to assess the fauna likely to be present in the area. Bird data from this search are presented in Appendix A.

2-4 Fauna Survey SECTION 3

3 Fauna Survey

3.1 Introduction

This survey applied the methods of the Biological Survey of South Australia (National Parks and Wildlife SA 2000). The survey was carried out under: • The Wildlife Ethics Committee Approval of a Project Involving Animals – Application Number 7/2007; • Permit to Undertake Scientific Research – Permit Number W25407 1; and • Licence to Use Animals for Teaching, Research or Experimental Purposes – Licence No 202.

3.2 Methods

Trap Lines One set of traplines was installed within three of the existing flora survey quadrats (Ecological Associates 2007b) (Figure 3): 1. Eucalyptus odorata woodland (SW corner: GDA 94 54H 0318112E 6115517S), 2. Lomandra effusa grassland (NW corner: GDA 94 54H 0318140E 6114548S), and 3. Austrostipa Grassland (NW corner: GDA 94 54H 0318029E 6114414S) previously identified within the Kanmantoo Copper Project area. Each trap-line consisted of a pit-line (six pitfalls 10 m apart), one Elliot trap-line (15 traps 10 m apart), and two Sherman traps at either end of the line. Traps were installed and opened on Monday 26 February 2007; they were finally cleared, closed and removed on Friday 02 March 2007. Traps were checked in the evening and morning each day.

Roaming Surveys Two observers carried out roaming surveys for birds of at least two hours total duration each day over three days. Each of the key habitat types was surveyed each day. In addition walks were made through all other habitat types at least once.

Physical Search Physical searches were conducted on each day with particular emphasis within the three key habitat types and during roaming surveys throughout the area. Physical searches involved the lifting of rocks and logs, looking under bark on tree trunks, digging up burrows and raking of leaf litter. Observations were made of animals active at the time, or for signs of animals, including tracks, scats, scratchings, burrows, and skulls. Active animals were, where possible, hand caught and identified.

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Anabat Survey Two Anabat bat detectors and recorders were installed at the site during the survey. Each recorded bat calls over 4 nights (detectors and recorders were switched off during the day). The first detector was placed for two nights on the saddle between the Lomandra effusa grassland and the Austrostipa Grassland (GDA 94 54H 0318147E 6114260S). It was then shifted to western edge of the Austrostipa Grassland along the rocky outcrop (GDA 94 54H 0317932E 6114338S) for the remaining two nights. A second detector was placed in a flyway within the Eucalyptus odorata woodland quadrat (GDA 94 54H 0318116E 6115497S) on all four nights.

Spotlighting Spotlighting for nocturnal mammals, birds and reptiles was carried out on a warm humid evening (Wed 28/02) between 20:00 and 22:30. Using a portable spotlight, two observers walked a predetermined route along existing tracks. The route followed north from the pit past regrowth areas to the west, through Eucalyptus odorata and Eucalyptus leucoxylon woodlands, along the eastern edge of the site through Allocasuarina verticillata woodlands and Callitris gracilis woodlands, and west parallel to the pit through mallee woodlands (Figure 1). All sightings, audible movement and calls were investigated and identified.

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A B

C

Figure 3: Sites of trap-lines A. Eucalyptus odorata woodland B. Austrostipa grassland C. Lomandra effusa grassland.

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3.3 Results

Weather Surveys were carried out over five days (four nights) 26/02/2007 to 02/03/2007. Weather conditions during this period were warm to hot and dry, with overnight dew and fog on Monday 26 February and Wednesday 28 February (Table 1). All days were generally fine and sunny. All traps were checked and cleared each morning between 07:00 and 09:00 and late each afternoon between 17:00 and 19:00. On hot days traps were also checked and cleared in the early afternoon. Mean annual rainfall at Murray Bridge is 342.4 mm (N = 122years - 1885-2007 BOM 2007). Total rainfall on site in the previous 11-month (23/04/06 – 15/03/07) period was 196 mm. Thus rainfall at the Kanmantoo Copper Mine site was significantly below average over the last year. In the three months prior to the baseline survey total rainfall was 49 mm, well below the rate of evaporative loss. As a consequence of this long, dry period the floral understorey across the survey area had very few annual plants or grasses growing or flowering. Limited flowering was observed in a mallee species and the Harlequin Mistletoe (Lysiana exocarpi) was flowering.

Table 1: Weather during survey period. Weather station located on Kanmantoo Project Area, MacFarlane Hill

o Daily Temperature ( C) Maximum Date Dew Point (oC) Maximum Minimum Humidity (%)

Monday 26/02/07 24.8 11.2 90 10.9 Tuesday 27/02/07 29.8 12.9 94 12.9 Wednesday 28/02/07 32.8 17.2 66 10.6 Thursday 01/03/07 28.9 15.5 90 13.8 Friday 02/03/07 37.9 17.7 79 11.9

Trap Lines No native mammals were caught in the trap-lines (Table 2). The House Mouse (*Mus musculus)was trapped throughout the study area, but was particularly associated with the Lomandra effusa grassland. Signs of active burrows beneath Lomandra tussocks were evident throughout the Lomandra habitat type. Five species of skink entered traps.

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Table 2: Trapline Survey (Pitfall Traps, Elliot Traps, and Cage Traps)

Conservation Habitat Type Status sp. Common Name Scientific Name woodland SA AUS grassland grassland Eucalyptus Austrostipa Lomandra effusa odorata

House Mouse *Mus musculus 1 9 3

Eastern Spotted Ctenotus Ctenotus orientalis 2

Eastern Striped Skink Ctenotus robustus 4

Dwarf Skink Menetia greyii 1 1

Sleepy Lizard Tiliqua rugosa 2

Eastern Bluetongue Tiliqua scincoides 1

Roaming Survey Two species of Kangaroo were observed across the project area (Table 3). The Western Grey Kangaroo (Macropus fuliginosus) was relatively common. Females were all observed with young at feet, but no pouch young were evident. The Euro (Macropus robustus) was observed in small numbers. Foxes (*Vulpes vulpes) and European (Brown) Hares (*Lepus capensis) were active throughout the day. Signs and observations suggest foxes are relatively common, but European Hares were in low numbers. A number of apparently active, large rabbit warrens were found in the Austrostipa grassland, but no rabbits were observed to be associated with these warrens. Thirty-two bird species were recorded during the survey (Table 4). The highest species diversity was observed in the Eucalyptus odorata woodlands (69% of birds observed). This is most likely a product of the relative large area of the woodlands compared with other habitat types surveyed, and the relative high diversity of microhabitats present within this habitat type. The diversity of birds in all other habitat types was markedly lower (Table 4). Only two introduced bird species were observed. Three separate large flocks (> 100 birds) of the Common Starling (*Sturnus vulgaris) were associated with the feeding lot near the Paringa farm homestead. A small flock of European Goldfinch were observed foraging on the cones of Allocasuarina verticillata.

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Table 3: Roaming Survey – Mammals.

Conservation Habitat Type Status

Common Name Scientific Name SA AUS Regrowth woodland grassland grassland Woodland Woodland Allocasuarina Golden wattle Rock Outcrop Austrostipa sp. Lomandra effusa Mallee Woodland Riparian NE Gully Eucalyptus odorata

Western Grey Macropus 5, 2 Kangaroo fuliginosus >10

Euro Macropus robustus 1 2

Fox *Vulpes vulpes 2,1 1

Brown Hare *Lepus capensis 1 1 1

Three of the observed bird species have a significant conservation status. Flocks of up to nine Rainbow Bee-eaters (Merops ornatus) were observed feeding and roosting in the Eucalyptus odorata woodlands throughout the survey period. These birds are listed as Marine Migratory species under the Japan Australia Migratory Bird Agreement (JAMBA) and are therefore protected under the EPBC Act. A pair of Peregrine Falcons (Falco peregrinus) is permanently resident in the area, and nest annually on the rock face of the open cut (pers. com: J. Popow, Hillgrove Resources Ltd. 12/02/2007). These birds are classified as rare species within South Australia under the NP&W Act. Diamond Firetail (Stagonopleura guttata. Shaw, 1796) was observed in at least one flock (probably more) on four occasions, feeding on the ground in the Eucalyptus odorata woodlands. These birds are classified as vulnerable threatened species within South Australia under the NP&W Act. No snakes or amphibians were detected. The Eastern Brown Snake (Pseudonaja textiles) is reported to be common across the site, and one Red-bellied Black Snake (Pseudechis porphyriacus) has been observed within the last year (pers. com: Kanmantoo mine site employees, Hillgrove Resources Ltd. 02/03/2007).

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Table 4: Roaming Survey – Birds

Conservation Habitat Type Status sp. Common Name Scientific Name

woodland AUS SA Farmland Regrowth woodland woodland grassland grassland Eucalyptus Allocasuarina Golden wattle Rock Outcrop Austrostipa Mallee woodland Lomandra effusa Riparian NE Gully odorata

Crested Pigeon Ocyphaps lophotes 211` Dusky Woodswallow Artamus cyanopterus 4 7, 42 5 334 Australian Magpie Gymnorhina tibicen >10,5 Little Raven Corvus mellori >20 >20 2 2 White-winged 8, H H Corcorax melanorhamphos Chough Magpie-lark Grallina cyanoleuca 1 Willie Wagtail Rhipidura leucophrys 11 21 Welcome Swallow Hirundo neoxena 221 White-plumed 1,1,2 2,1 1 1 Lichenostomus penicillatus Honeyeater Singing Honeyeater Lichenostomus virescens 2,2 1 3 2 Noisy Miner Manorina melanocephala 3 Brown-headed 1,2 1 Melithreptus brevirostris Honeyeater New Holland Phylidonyris 2,1 1 2 Honeyeater novaehollandiae 9,4 3 Marine Rainbow Bee-eater Merops ornatus Migratory

3-7 Fauna Survey SECTION 3

Conservation Habitat Type Status sp. Common Name Scientific Name

woodland AUS SA Farmland Regrowth woodland woodland grassland grassland Eucalyptus Allocasuarina Golden wattle Rock Outcrop Austrostipa Mallee woodland Lomandra effusa Riparian NE Gully odorata

(JAMBA) Grey Shrike-thrush Colluricincla harmonica 2, 1 2 Rufous Whistler Pachycephala rufiventris 1 Striated Pardalote Pardalotus striatus 1,1,1 Galah Cacatua roseicapilla Purple-crowned Glossopsitta 2 Lorikeet porphyrocephala Platycercus elegans Race 2,2,2, 2 1 4,2, Adelaide Rosella adelaide 2,2,2 2 2,2,7. V Diamond Firetail Stagonopleura guttata 5 Yellow-rumped >10,5 >10 5 Acanthiza chrysorrhoa Thornbill Yellow Thornbill Acanthiza nana 21 Southern Whiteface Aphelocephala leucopsis 1 >10,1 1,1 1 Weebill Smicrornis brevirostris ,1 European Goldfinch *Carduelis carduelis 5 >100 Common Starling *Sturnus vulgaris >100 >100 Wedge-tailed Eagle Aquila audax 2,2

3-8 Fauna Survey SECTION 3

Conservation Habitat Type Status sp. Common Name Scientific Name

woodland AUS SA Farmland Regrowth woodland woodland grassland grassland Eucalyptus Allocasuarina Golden wattle Rock Outcrop Austrostipa Mallee woodland Lomandra effusa Riparian NE Gully odorata

Black-shouldered Elanus axillaris Kite Nankeen Kestrel Falco cenchroides 11 Peregrine Falcon Falco peregrinus 2 R Australian Owlet- 1 Aegotheles cristatus nightjar Percentage of all observed species found in 69 9 13 13 28 6 19 13 22 22 each habitat type AUS: National Conservation rating (EPBC Act) SA: State Conservation rating (NPW Act) CE: Critically Endangered threatened species rating – species facing an extremely high risk of extinction in the wild in the immediate future. E: Endangered threatened species rating – species not critically endangered but facing an extremely high risk of extinction in the wild in the immediate future. R: South Australian Rare Species (Schedule 9). National Parks and Wildlife Act 1972. V: Vulnerable threatened species rating; species not critically endangered or endangered but facing a high risk of extinction in the wild in the medium-term future. Marine: Listed – over-fly marine area – EPBC Act Migratory: Protected migratory species under the EPBC Act H: Heard

3-9 Fauna Survey SECTION 3

Physical Search Eight species of lizards were observed across the area during the physical searches (Table 5). No vertebrate species were located during the litter-raking, log rolling or under bark on trees. No amphibians were detected during the survey. Given the relatively warm and dry conditions this is not unexpected. The Tawny Dragon (Ctenophorus decressii) was common and active, being found associated with rocks, rock falls and rock faces throughout the site. The four species of skink found all appeared to be relatively common across the site. The Sleepy Lizards (Tiliqua rugosa) are generally inactive at this time of the year. Despite this many animals, including both young of the year and juveniles (individuals between 1 and 3 years) were observed. The Sleepy Lizards were in relatively high density in the grassland habitats. The Dwarf Skink (Menetia greyii) was relatively common and active throughout the study area. Adults and juveniles of both the Eastern Spotted Ctenotus (Ctenotus orientalis) and the Eastern Striped Skink (Ctenotus robustus) were observed. The Eastern Spotted Ctenotus was strongly associated with the Lomandra effusa Grassland. The Eastern Striped Skink was most frequently observed in the Eucalyptus odorata woodlands, but was found in other habitat types.

Table 5: Physical Search – Reptiles and Amphibians

Conservation Habitat Type Status

Common Scientific sp. Name Name woodland SA AUS Regrowth grassland grassland Woodland Woodland Eucalyptus Allocasuarina Golden wattle Rock Outcrop Austrostipa Lomandra effusa Mallee Woodland Riparian NE Gully odorata

Tawny Ctenophorus 3 1 3>5 Dragon decressii Eastern Ctenotus Spotted 2 orientalis Ctenotus Eastern Ctenotus Striped 21 robustus Skink Dwarf Skink Menetia greyii 32 Sleepy Tiliqua rugosa 16 1 Lizard Delma molleri? Adelaide (Possibly D. 1 Snake-lizard inornata)1 Thick-tailed Nephrurus milii 11 Gecko Southern Gehyra sp. 2 Rock Dtella '2n=44' AUS: National Conservation rating (EPBC Act) SA: State Conservation rating (NPW Act)

3-10 Fauna Survey SECTION 3

The skin of a Pygoponid or legless lizard was found under a rock in the Austrostipa grassland. This animal was from the Delma genus (M. Hutchinson, Pers. Com. 02/03/07), and based on locality probably the Adelaide Snake Lizard (Delma molleri), but D. inornata could not be excluded.

Both the Thick-tailed Gecko (Nephrurus milii) and the Southern Rock Della (Gehyra sp. '2n=44') were widespread across the area.

Anabat Anabat detectors recorded seven (possibly eight) bat species over the four nights surveyed (Table 6). Weather conditions during the survey were good for bat activity. Time versus frequency graphs of each of the seven species identified are included in this report under Australasian Bat Society Inc. reporting standards for insectivorous bat surveys using bat detectors (Appendix B). Species composition in the area was typical for the Mount Lofty Ranges, but overall the number of calls recorded per night was low for the region (pers. com. Terry Reardon SA Museum March 2007). None of the species recorded merit a conservation status, as all are common and widespread. The highest diversity of bat species, and largest number of each species recorded, were associated with the Eucalyptus odorata woodland. Species known to forage above tree canopies, or in the open (Tadarida australis, gouldii,andNyctophilus geoffroyi) were recorded above the Lomandra effusa and Austrostipa grasslands. Three species (Chalinolobus morio, darlingtoni and V. regulus) that forage in, around, or on tree foliage, or above the shrub layer were only associated with the Eucalyptus odorata woodlands. Mormopterus planiceps a species that forages high above tree canopies was also recorded in the Eucalyptus odorata woodlands. The Little Forest Bat (Vespadelus vulturnus) may also be in the area although the analysis was not definitive. All species recorded roost in tree hollows or under bark (Reardon and Bourne 2006).

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Table 6: Bats identified from Anabat Recordings (27/02/06 – 02/03/07)

Conservation Habitat Type Status Ridge between Lomandra Rock face west Eucalyptus effusa of Austrostipa Common Name Scientific Name odorata woodland grassland sp grassland and SA

Austrostipa AUS sp grassland 27/02 28/02 01/03 26/02 27/02 28/02 01/03

White-striped Tadarida australis 839 4 7 6 6 Freetail-bat Southern Freetail- Mormopterus 261 - - 1 - bat planiceps Gould's Wattled Chalinolobus 411 - 1 1 2 Bat gouldii

Mp or Cg ? 8 9 14 1 2 10 5

Lesser Long-eared 251 - 1 3 1 Bat geoffroyi Chocolate Wattled Chalinolobus 221 - - - - Bat morio Vespadelus 1-1 - - - - darlingtoni Southern Forest Vespadelus ?-- - - 1 - Bat regulus

Vd or Vr 1------

Vespadelus Little Forest Bat --1- - - - vulturnus or Vd Bat call not 133 - - 4 3 identifiable Total calls per 29 29 32 5 11 26 17 night AUS: National Conservation rating (EPBC Act) SA: State Conservation rating (NPW Act)

Spotlighting On the evening when spotlighting was carried out, conditions for nocturnal animal activity were good, being warm and relatively humid. This needs to be placed in the background context of a dry autumn following a severe drought. Animal activity was relatively low and only four species were recorded (Table 7). No nocturnal birds were heard calling or observed. Some nocturnal lizards were active and heard moving through leaf litter. Two species were caught: the Thick-tailed Gecko and the Southern Rock Dtella. One Rabbit was observed, they were not common across the site. Three Brushtail Possums (Trichosurus vulpecula) were each observed foraging in different tree types in the Woodland area. These

3-12 Fauna Survey SECTION 3

possums have no national conservation status. Within South Australia Brushtail Possums currently have no conservation rating but have been nominated for listing as rare under the National Parks and Wildlife Act (National Parks and Wildlife Council and Department of Environment and Heritage 2003).

Table 7: Spotlighting Survey

Conservation Habitat Type Status

Common Name Scientific Name woodland SA AUS Woodland Woodland Eucalyptus Allocasuarina Golden wattle Mallee Woodland odorata

Common Brushtail Trichosurus vulpecula 111 R* Possum Rabbit *Oryctolagus cuniculus 1 Thick-tailed Gecko Nephrurus milii 1 1 Southern Rock Gehyra sp. '2n=44' 1 Dtella AUS: National Conservation rating (EPBC Act) SA: State Conservation rating (NPW Act) CE: Critically Endangered threatened species rating – species facing an extremely high risk of extinction in the wild in the immediate future E: Endangered threatened species rating – species not critically endangered but facing an extremely high risk of extinction in the wild in the immediate future V: Vulnerable threatened species rating; species not critically endangered or endangered but facing a high risk of extinction in the wild in the medium-term future R: South Australian Rare Species (Schedule 9). National Parks and Wildlife Act 1972. * considered potentially vulnerable in Australia (Foulkes and Gillen 2000) and endangered in the / Murray Plains Regional Ecological Area (Barratt et al. 1991).

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4 Discussion of Results

4.1 Regional Perspective

Compared with existing records for the region, the survey reported low species diversity of mammals (15 species - Appendix C), birds (32 species - Appendix C), amphibians and reptiles (no amphibians, nine species of reptile - Appendix D), and low numbers for each species. This would partly reflect that this was a one-off survey, and that more species would be reported from longer-term monitoring. It probably also reflects the low availability of food (seeds, flowers, forage, prey) at the end of summer and the unusually dry period leading up to the survey. A survey in spring would likely report a broader range of fauna. Neither can the existing DEH fauna records of reptiles, amphibians, and mammals (in particular) within 6 km of the study site be considered as a complete and representative fauna list. All 15 mammals recorded in this survey, excepting the House Mouse (Mus musculus), are new records for the area. Of the mammals observed in this survey, four species were introduced (House Mouse, Fox, Brown Hare and Rabbit). Of these species only the House Mice were present in any significant numbers. Their numbers were moderately high in the Lomandra effusa grasslands. Bat species composition in the area was typical for the Mount Lofty Ranges, but overall the number of calls recorded per night was low for the region (pers. com. Terry Reardon, SA Museum, March 2007). One of nominated conservation significance within South Australia – the Brushtail Possum Trichosurus vulpecula –was found during this survey. Of the nine species of reptiles recorded during the survey, only two had been previously recorded in the area (Ctenotus robustus and Gehyra sp “2n=44”). Five species previously recorded and common to the area were not found (Christinus marmoratus, Hemiergis decresiensis, Pogona barbarta, Pseudonaja textiles and Morethia boulengeri). A rare species, the carpet python (Morelia spilota) is probably locally extinct and was not found. A number of regionally common skinks (eg Lampropholis guichenoti and Lerista bougainvillii) were not recorded in the area. For a habitat fragment of this size in the southern Mount Lofty Ranges the species count of reptiles in this survey was moderate (Sacchi 2003). Given the dry conditions it is not unexpected that no amphibians were found during this study; a survey during spring would be required to detect these species. No reptiles of conservation significance were found in the Kanmantoo Project Area during this survey. A comparison between the DEH records of birds within 6 km of the Kanmantoo Project Area boundary and birds detected in this survey (Appendix 3) showed 31 species recorded in the survey out of 109 species previously recorded in the locality, with one new record for the area (Australian Owlet-nightjar, Aegotheles cristatus). Of the locally abundant species only 45% (ie 13 out of 29 species) were found on site in the survey (Table 8). Species not observed were mostly insectivorous (10 species), or nectivorous (4 species) in feeding habit. In late summer / autumn most nectivorous birds are highly nomadic, moving to habitats associated with highly productive soils in the Mount Lofty region (Paton et al. 2004). The DEH database records 13 species of water birds locally. Water quality on site, in the two water bodies presently holding water was, due to low pH, not suitable for water birds. The dry swamp in the NW corner of the study area, and the ephemeral creeks on the farmland may provide suitable habitat for

4-1 Discussion of Results SECTION 4

water birds during periods with higher rainfall in winter and spring. Of the locally uncommon species, 27% were observed in the study area.

Table 8: Bird species observed in survey compared with number in DEH records within a 7 km radius of the Kanmantoo Copper Mine.

Bird Species DEH records Observed in Survey Not Observed in Survey Locally “abundant” species 13 16 ( 1% of records*) Locally “uncommon” species 18 48 (< 1% of records) Not Recorded 1 Not Applicable Water Birds 0 13 * Species recorded in 1% of 2202 records of bird species in DEH records.

The survey reported two birds of conservation significance at the state level: • a population of Diamond Firetail. • a breeding pair of Peregrine Falcon. One species of national conservation significance was also reported: Rainbow Bee-eaters were present in significant numbers.

4.2 Species of Management Concern

Diamond Firetail (Stagonopleura guttata) – Vulnerable in South Australia Reasons for listing as vulnerable in SA The Diamond Firetail is classified as vulnerable because the best available evidence, based on direct observation, indicates there has been a reduction in population size of greater than 50% over the last 10 years or three generations (National Parks and Wildlife Council and Department of Environment and Heritage 2003). The species is therefore considered to be facing a high risk of extinction in the wild. This species has declined over most of its historical range across south eastern and eastern Australia in both extent and density and is considered to be near-threatened nationally (Garnett and Crawley 2000). In South Australia, where it is classified as vulnerable under the NPW Act, a significant reduction in distribution was recorded between 1974-1975 and 1984-1985 (Paton et al. 1994). This decline has continued and Diamond Firetails are now rarely reported in the western, central and southern Mount Lofty Ranges (Paton et al. 2004). Declines have also been recorded in the Strathalbyn area on the eastern side of the ranges (Eckert 2000). Factors implicated in the decline of Diamond Firetails include clearing of habitat, nest predation by birds (McGuire and Kleindorfer 2007), predation by cats (Read 1987), and trapping by man (Blakers et al.

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1984). Foraging behaviour in general and the loss of native seed species is not considered to be a factor in the decline of Diamond Firetails in the Mount Lofty Ranges in South Australia (Read 1994, Antos and Bennett 2006). Diamond Firetails are sensitive to patch size and quality, with minimum threshold plains grassy woodland patch size being estimated at around 20 ha (Robinson and Howell 2003). Relevant behavioural ecology The Diamond Firetail is a type of finch. They live in a wide range of Eucalyptus dominated vegetation communities that have a grassy understorey, including woodland, forest and mallee (Antos and Bennett 2006, Higgins et al. 2006). Diamond Firetails are known to use large revegetation patches (eg the Monarto plantations) where they successfully breed and have achieved densities comparable to those using remnant native vegetation patches (Paton et al. 2004). Diamond Firetails are mainly resident or sedentary throughout their range. Regular short-distance migratory movements are known in western Victoria (O'Gorman 1981) and in South Australia seasonal movements occur (O'Gorman 1981, Higgins et al. 2006). The longest recorded distance moved by an individual bird in the Mount Lofty ranges is 5 km (Paton et al. 2004). Movements away from breeding areas, to over-wintering sites, tend to occur in autumn. In non-breeding season they can form large flocks, usually of up to c. 40 individuals, with many juveniles in the groups (O'Gorman 1981, Higgins et al. 2006). These groups disperse in late winter and early spring, and birds appear singly or in pairs during the breeding season (Higgins et al. 2006). The diet of Diamond Firetails in the Mount Lofty Ranges consists of predominantly grass seeds (up to 73% of crops, (Read 1994)), but the grass species seed composition changes with season. Diamond Firetails now forage extensively on the seeds of many introduced plants that have colonised much of the range of the finches, and potentially replaced much of the native seed plants (Read 1994). No arthropods were found in their crops. Foraging takes place exclusively on the ground and generally in flocks (Antos and Bennett 2006). Seeds are taken by gleaning from bare ground and foraging in grassy understorey and in ground litter (Antos and Bennett 2006). Access to free standing water is very important to finches to aid digestion and prevent dehydration as a consequence of the low water content of many seeds. Consumption of green vegetation apparently allows survival for short periods without freestanding water (Read 1994, Higgins et al. 2006). The monogamous Diamond Firetails breed in simple pairs. Home ranges for a pair vary in size from 2 to 20 ha (Paton et al. 2004). Nesting usually occurs in small loose colonies with multiple nests in one tree (Higgins et al. 2006). Nest site selection varies between areas (McGuire and Kleindorfer 2007), but in some areas a preference is shown for nesting in mistletoe (O'Gorman 1981, Cooney 2005, Cooney et al. 2006). Egg laying occurs between the months of October and November in South Australia (Higgins et al. 2006). Time from egg laying to fledging is approximately 47 days (Higgins et al. 2006).

Peregrine Falcon (Falco peregrinus) – Rare in South Australia Reasons for listing The Peregrine Falcon has a worldwide distribution. It has declined significantly in most countries other than Australia. In Australian the population is substantial, widespread and viable (Olsen and Olsen

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1988b). In South Australia it is classified as rare because the resident population is small, with the total population estimated at less than 3000 mature individuals (National Parks and Wildlife Council and Department of Environment and Heritage 2003). The Peregrine Falcon appears to be a species that has benefited from changes such as partial clearing of woodlands and forests and the building of farm dams (Olsen and Olsen 1988b). Nevertheless, in South Australia the level of pesticide contamination detected in the Peregrine Falcon and the consequent thinning of egg shells was considered sufficient to interfere with this species’ reproduction (Olsen and Olsen 1979, Falkenberg et al. 1994). Relevant behavioural ecology The Peregrine Falcon uses a traditional nest site or territory, frequently one that has been used over several generations (Olsen and Olsen 1988a). The spacing between these traditional nests is often regular. In general, for Peregrine Falcon to breed successfully, the minimum basic requirements of adequate prey and suitable nest sites must be present. Populations of most native birds on which the falcon preys have probably declined because of clearing. However this impact is compensated by the availability of suitable introduced bird species (Falkenberg et al. 1994). The main prey species of Peregrine Falcons are the Rock Dove (Columba livia), Common Starling (Sturnus vulgaris), Silver Gulls (Larus novaehollandiae)and Galah (Cacatua roseicapilla) (Falkenberg et al. 1994, Emison et al. 1997) which constitute50-75% of their diet. In a long-term study in Victoria it was found that over half of Peregrine Falcon eyries are on cliffs (51%), 37% are in trees, and the rest (12%) are on human-made structures and quarry faces (Emison et al. 1997). Over half of the quarries with eyries were actively operated when birds were present, often forcing the Peregrine Falcons to select another site in the quarry when a previous eyrie was destroyed (Emison et al. 1997). This suggests that the bird tolerates a degree of noise, vibration and activity associated with quarrying.

Rainbow Bee-eater (Merops ornatus) – EPBC migratory species JAMBA Reasons for listing Rainbow Bee-eaters are listed under the Japan-Australia Migratory Bird Agreement (JAMBA) as they migrate over marine waters during their northern movements in autumn. Inclusion of a species under JAMBA automatically resulted in its listing under the EPBC Act. Despite this automatic listing, at present the Rainbow Bee-eater is not listed as a threatened species within Australia, nor is it considered rare or threatened within South Australia. There is evidence of a five-year decline in numbers in the wheat-sheep belt of New South Wales and Queensland (Olsen et al. 2003). Impacts on EPBC migratory species are considered significant if they: • Substantially modify, destroy or isolate an area of important habitat for a migratory species; • result in an invasive species that is harmful to the migratory species becoming established in an area of important habitat for the migratory species; or

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• seriously disrupt the lifecycle (breeding, feeding, migration or resting behaviour) of an ecologically significant proportion of the population of a migratory species. Relevant behavioural ecology Rainbow Bee-eaters (Merops ornatus) are migratory both within Australia and overseas to islands north of Australia. In the autumn months the Bee-eaters depart southern Australia and are only found in the northern States in the winter months. They migrate annually between Australia and New Guinea (Blakers et al. 1984). During spring and summer they have an Australian wide distribution, but are predominantly found breeding in southern Australia between September and February (Barrett et al. 2003). They are burrow breeders, with nests generally located in vertical banks of soil.

Brushtail Possum (Trichosurus vulpecula)–NominatedforListingasRarein South Australia Reasons for nomination for listing as rare in SA The Brushtail Possum has the widest distribution of any Australian mammal, being found across southern, eastern, and northern Australia. Within this distribution it occurs in most areas where there are trees, especially open forests and woodlands (How 1983). Their abundance has declined dramatically throughout much of their range, and they are now considered rare in the arid zone, although in some localities they are very common (Kerle et al. 1992). Within South Australia Brushtail Possums currently have no conservation rating under the National Parks and Wildlife Act 1972 (Schedule 9) but have been nominated for listing as rare (National Parks and Wildlife Council and Department of Environment and Heritage 2003). They are classified as endangered in the Murray Mallee/ Murray Plains Regional Ecological Area (Barratt et al. 1991). They have no national conservation status, but are considered potentially vulnerable in Australia (Foulkes and Gillen 2000). Within South Australia they have disappeared from greater than 50% of their former area of occupancy and it is believed that further decline in area is continuing. The have also experienced a greater than 50% reduction in abundance and it is believed this decline is also continuing (NPWC & DEH 2003). Population decline has been attributed to habitat loss (Kahrimanis et al. 2001), cycles of resource-poor seasons and predation (Kerle et al. 1992). It has been hypothesised that the decline in abundance and distribution arises as a consequence of disturbance of refuge habitat patches critical for the survival of the species. This occurred at the same time as areas of southern Australia experienced below average rainfall. Once the populations were reduced, they fell into a ‘predator-pit’ through depredation by dingoes and introduced predators (eg cats and foxes), and have been unable to increase in numbers even with the advent of improved conditions (Kerle et al. 1992). Relevant behavioural ecology Brushtail Possums are nocturnal arboreal marsupials. Home range size varies from 0.7 to 11.3 ha, with the extent of home range overlap being highly variable; some populations are apparently territorial, while others show no evidence of territoriality (Kerle 1998). Brushtail Possum density is typically in the range of 0.4 to 1.4 animals / ha (How 1983).

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Brushtail Possums generally live up to 11 years (How 1983). Their major breeding period is in autumn, but they may also breed in spring. The young spend four to five months in the pouch and a further one to two months suckling and on their mother's back prior to dispersal. Dispersal occurs between six and 18 months of age, during which time there is high mortality, particularly in males (How 1983). In the Mt Lofty Ranges Brushtail Possums prefer habitat dominated by smooth-barked eucalypts (Armstrong et al. 2003). They tend to live in habitat associated with more fertile soils, which produce a variety of more nutritious plant species, and the larger trees (Braithwaite et al. 1984) that provide the large hollows they require for shelter (How and Hillcox 2000, Harper 2005). This preference for woodland vegetation remnants based on more fertile soils, means they are associated with a much- reduced habitat type in the Mount Lofty Ranges (Armstrong et al. 2003). Brushtail Possums feed mainly on Eucalyptus leaves (Dearing and Cork 1999). They can detoxify poisons in the leaves to some extent but cannot cope with an exclusively Eucalyptus diet. Compared to other possums the Brushtail Possum has higher nutritional needs, requiring a wider variety of plant species (How 1983). Ground vegetation particularly grasses comprises about 25% of their diet (Kerle 1984). Brushtail Possums are susceptible to predation from foxes, cats and dingoes when they come to the ground to feed (Jones and Coman 1981, Kerle et al. 1992, Pickett et al. 2005). In areas with high fox density possums reduce the distance travelled on ground and change their foraging habits relative to areas with low fox density (Pickett et al. 2005). Predation of dispersing sub-adults appears to be a major threat (Kahrimanis et al. 2001).

4-6 Threat Assessment SECTION 5

5 Threat Assessment

5.1 Approach to Threat Assessment

The threats to fauna associated with the Project are considered in five main categories: • vegetation clearance; • noise and vibration; • dust; • traffic and activity; • contaminated surface water storage; The degree to which these threats do or do not affect the fauna values identified in this report is discussed. Opportunities to minimise these threats are identified.

5.2 Vegetation Clearance

The proposed project involves the clearance of areas of native vegetation in Eucalyptus odorata woodland and open mallee, Lomandra effusa grassland, Austrostipa sp. grassland, Eucalyptus gracilis +/- Open mallee and Acacia pycnantha Low woodland. The area of vegetation to be cleared on the site is presented in Table 9. The fauna values of the site are most sensitive to clearance of woodland vegetation. Woodland vegetation supported the highest numbers of species and the highest numbers of individuals. Two species of conservation significance were associated with woodland habitat. Woodland vegetation also supported the vulnerable (SA) Diamond Firetail. The value of woodland for this species was related to the size, integrity and quality of the habitat component (Table 9). This species depends on grassy woodland vegetation, and this site is one of the largest and best-preserved habitat remnants in the region (Ecological Associates 2007b). The species is vulnerable to a decline in woodland area; with 20 ha reported as the minimum required for species presence. Brushtail Possum, nominated for listing under the NP&W Act as rare, depends on the diversity of species and habitat complexity in woodlands for sheltering hollows and for food in the form of leaves, flowers invertebrates and carrion. This site is one of the largest and best-preserved habitat remnants in a region where less than 8% of natural habitat remains. Many of the remaining habitat fragments in the region constitute poor habitat because of small size, isolation, shape and understorey grazing. The project involves the clearance of approximately 13% of Eucalyptus odorata Low woodland in either 'very good' or 'good' condition (Table 9) and will reduce the area of good quality vegetation (or better) to 21.5 ha. The project involves the clearance of 48% of the 'good' quality Lomandra effusa grassland habitat. No species of conservation significance were associated with grassland habitat. The cleared area would effectively divide the existing large remnant into two fragments to the east and west of the pit.

5-1 Threat Assessment SECTION 5

Vegetation clearance threatens the fauna values of the site by potentially: • reducing the extent of good quality habitat below the threshold required to sustain the Diamond Firetail population at the site; and • reducing the habitat available to Brushtail Possum. Vegetation clearance will also reduce the availability of habitat for non-threatened fauna but these values are not specifically protected under legislation.

Table 9: Area and conservation significance of surveyed woodland vegetation communities in the Kanmantoo Copper Project. Vegetation condition was reported as a significant environmental benefit (SEB) ratio (DWLBC 2005). Higher SEB ratios indicate better quality habitat.

Vegetation Condition Description Community area cleared cleared* Condition Area (ha) area to be (SEB ratio) %ofproject within project Area (ha) to be

Eucalyptus odorata 8:1 Very good condition: little disturbance, all strata 1.2 14.9 8.3% Low woodland present, evidence of overstorey recruitment, large old trees present, high understorey diversity, low weed cover, litter and woody debris cover high.

6:1 Good condition: some disturbance (grazing, weed 2.0 9.7 20.9% invasion, tracks, timber getting), at least strata depleted in cover, limited overstorey recruitment, large old trees present, high to moderate understorey diversity, low to moderate weed cover, litter and woody debris cover high to moderate.

4:1 Moderate condition: considerable disturbance 0.3 28.5 1.1% (extended grazing), at least one strata absent, no evidence of overstorey recruitment, moderate to low understorey diversity, moderate to high weed cover, litter and woody debris cover moderate to low.

2:1 Poor condition: high disturbance (extended 0.3 1.0 35.5% grazing), at least one strata absent, no evidence of overstorey recruitment, very low understorey diversity, high weed cover, litter and woody debris cover low to absent.

Lomandra effusa ± 8:1 Very good condition: little disturbance, all strata 9.6 17.8 53.9% Heliochrysum present, native diversity high, weed cover low, leucopsideum Open litter cover high. tussock grassland 6:1 Good condition: some disturbance (grazing, weed 0.0 2.1 0.0% invasion), all strata present, high to moderate density of tussocks, native diversity high to moderate, weed cover moderate, litter cover variable.

5-2 Threat Assessment SECTION 5

Vegetation Condition Description Community area cleared cleared* Condition Area (ha) area to be (SEB ratio) %ofproject within project Area (ha) to be

4:1 Moderate condition: considerable disturbance 2.5 3.5 72.4% (extended grazing, tracks, weed invasion), one strata depleted, native diversity moderate to low, weed cover moderate to high, litter cover moderate to low.

Austrostipa sp. 8:1 Very good condition: little disturbance, all strata 0.2 11.6 1.8% Open tussock intact, high density of tussocks, native diversity grassland high, weed cover low, litter cover high to moderate.

6:1 Good condition: some disturbance (grazing, weed 0.0 4.7 0.0% invasion), all strata present, high to moderate density of tussocks, native diversity high to moderate, weed cover moderate, litter cover variable.

4:1 Moderate condition: considerable disturbance 0.6 0.7 86.7% (extended grazing, weed invasion), all strata present but depleted in cover, moderate to low density of tussocks, native diversity moderate to low, weed cover moderate to high, litter cover moderate to low.

Eucalyptus gracilis ± 8:1 Very good condition: little disturbance, all strata 2.8 4.0 69.8% E. oleosa Open intact, evidence of overstorey recruitment, high mallee understorey diversity, weed cover low, litter and woody debris cover high.

Acacia pycnantha 6:1 Good condition: some disturbance (past clearance, 4.3 7.7 55.3% Low woodland weed invasion, tracks), overstorey depleted, high understorey diversity, weed cover low to moderate, litter and woody debris cover high to moderate.

4:1 Moderate condition: considerable disturbance 2.6 3.5 73.3% (past clearance, weed invasion, tracks), overstorey depleted, moderate understorey diversity, weed cover moderate to high, litter and woody debris moderate to low.

Scattered Trees n/a See Appendix D 56 not assessed trees

* Calculations of areas to be cleared provided by Coffee Natural Systems Threats associated with vegetation clearance may be minimised by: • minimising where possible the extent of clearance in woodland vegetation, particularly in 'good' and 'very good' quality vegetation; and

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• consolidating areas to be cleared so that large blocks, rather than small fragments, are preserved. It may be possible to mitigate the impacts on fauna by providing or protecting alternative habitat elsewhere. This could include improving the quality of remnants in 'moderate' or 'poor' quality elsewhere on the site so that they are equivalent, or better, than the quality and extent of habitat that is cleared. This could involve: • weed control; • stock removal; and • revegetation to enhance, extend and connect remnants. However, it is possible that the habitat improvements associated with these measures will develop after the impacts of the project take place, so it is recommended that work of this type start as early as possible.

5.3 Noise and Vibration

Noise and vibrations generated by the project present a threat to fauna values on the site. Vehicle traffic, blasting and excavations, and ore processing may generate the noise and vibrations. High noise levels are known to decrease species diversity, numbers, and breeding success in the vicinity of the noise, in both mammals and birds (Forman and Alexander 1998, Habib et al. 2007). The noise level at which population densities of all woodland birds begin to decline is around 42 decibels on average (Forman and Alexander 1998). Many possible reasons are proposed for the effects of traffic noise on birds. Likely hypotheses include hearing loss, increase in stress hormones, altered behaviours, interference with communication during breeding activities, differential sensitivity to different frequencies, deleterious effects on food supply or other habitat parameters (Forman and Alexander 1998), and predator avoidance communication during nesting and fledging phase (Forman et al. 2002). Birds with higher pitched songs are less susceptible to the effect of noise pollution than those with lower pitched songs (Rheindt 2003), suggesting that acoustic masking is one of the mechanisms by which noise negatively affects passerine density. The impact of vibrations and noise can be subtle to the extent that vibrations associated with traffic effect the emergence of earth worms from soil and in turn reduce the abundance of birds found feeding on them (Forman and Alexander 1998). As noise levels within a habitat component increase above critical minimums, both the number of species and the population of each species present in the fragment will decrease. The louder the noise, and the longer the duration of the noise, the greater the impact on species present in the area. For a social species like the Diamond Firetail, which uses a variety of contact and predator avoidance calls, research indicates that the consequences of prolonged and loud noise (to the extent that it prevents effective communication among group members) are reduced breeding success and higher predation levels (Forman and Alexander 1998). Both of these outcomes would reduce population levels of the Diamond Firetail within the Project Area. The threat associated with noise and vibration is therefore difficult to define without information on the noise and vibrations generated and the tolerance of species on the site. The literature suggests that the Diamond Firetail could be affected if noise interferes with their calls.

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Measures to minimise this threat can be incorporated into the project design. These include: • minimising noise levels within all high quality habitat; • locating excavations as far from high-value habitat as possible; • locating roadways as far from high-value habitat as possible; • limiting the number and extent of roads constructed; and • regulating traffic volume.

5.4 Dust

Excavations and traffic will potentially increase dust loads to native vegetation. Dust can contaminate forage and reduce rates of photosynthesis with negative consequences for productivity and biomass in the area affected. Dust impacts can be minimised by: • controlling dust production in the excavation works; and • controlling dust during processing and transportation of material.

5.5 Traffic and Activity

Roads function as barriers for the movement and dispersal of many species, with roads as narrow as 2.5 m acting as barriers for insects and spiders (Forman and Alexander 1998). Roads and associated traffic impact on fauna through roadkill, vehicle disturbance and road avoidance, barrier effects and habitat fragmentation. For bird populations exposed to traffic, numbers may be lower, animal density may be lower, and the extent of breeding may be reduced (Forman et al. 2002). The effect increases with increased traffic volume (Forman et al. 2002). The barrier effect tends to create metapopulations, where large populations are split into smaller, partially isolated populations. Small populations fluctuate more widely over time and have a higher probability of extinction than do larger populations. Raptor behaviour is impacted by traffic levels on roads (Bautista et al. 2004) with birds decreasing activity in the area of roads as traffic activity increases. Depending on intensity, traffic and activity may disrupt fauna directly, indirectly or not at all. Direct impacts may occur where intense activity and noise disrupts feeding, calling and other activities and where fauna are discouraged from using otherwise suitable habitat. Indirect impacts may result from declining food availability. This threat potentially significantly affects fauna, particularly Diamond Firetail, and should be minimised. The threat to fauna associated with roads and traffic can be minimised by: • locating roads as far from high-value habitat as possible; • minimising noise levels within all high quality habitat; • limiting the extent of roads within the site; and

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• monitoring and managing weed threats.

5.6 Attraction of Water Birds to Contaminated Water

The project potentially involves the storage of contaminated surface water on the site in a tailings storage facility. The expected chemical composition of the water is not known, but may present a threat to fauna if it has high concentrations of heavy metals, low or high pH or other contaminants. Waterbirds, which are attracted to open water, are particularly at risk. Low or high pH can have immediate effects on the mucosal membranes, skin or feathers of the birds. Exposure to heavy metals such as copper can have short-term toxic effects on the individual animal or longer term effects on the individual and its progeny (Kertesz et al. 2006) resulting in premature mortality or teratogenicity. The site is not an important waterbird habitat and the risk associated with this threat is expected to be low. However, the site is located near the Lower Lakes and Coorong Ramsar Site, which supports high numbers of waterbirds. Furthermore, many waterbirds visit waterbodies opportunistically and the possibility of exposure remains even in isolated sites. The level of risk also depends on the nature of the contamination and this is not known at this stage. The threat associated with contaminated surface water can be minimised by: • minimising the area of any uncovered contaminated water storage; • minimising the concentration of hazardous chemicals in a contaminated water storage; • placing passive deterrent devices (eg raptor silhouettes, plastic models of birds taking of) over or near to the water body; and • periodic broadcast of taped alarm calls.

5.7 Summary of Threats to Species of Conservation Significance

Diamond Firetail As a consequence of the dry conditions over the last year, the Diamond Firetail population has declined to low levels in the Mount Lofty Region (pers. com. Dr David Paton, The University of Adelaide, March 2007). Diamond Firetail presence, under such conditions, suggests the grassy woodlands at Kanmantoo Copper Project Area constitute a refuge for the species. This species depends on grassy woodlands, of which the Eucalyptus odorata at the site is one of the best-preserved remnants in the region (Ecological Associates 2007b). The proposed mining development may significantly impact on this population at the local and possibly regional level.

Peregrine Falcon The Peregrine Falcon is naturally found in low densities throughout its distribution. The birds tolerance of mining activity, ability to shift to new prey species and the low number of individuals directly impacted

5-6 Threat Assessment SECTION 5

on, suggests that it is unlikely that the mine development will significantly affect the size or population viability of this species nationally or at the state level. At the local level it may result in the pair relocating their nest site within the open cut or to a new locality.

Rainbow Bee-eater Given the status of the population in South Australia, this project cannot be predicted to significantly affect the size or viability of the Rainbow Bee-eater population in South Australia or nationally. However, it may impact on species presence and habitat use at the local level. Rainbow Bee-eaters may breed in sandy banks in the area, and prior to their annual northerly migration, the local population may use the woodlands within the site as feeding grounds to build up fat reserves.

Brushtail Possum Brushtail Possums prefer vegetation remnants based on more fertile soils. In the study area these fertile soils have been favoured and preferentially cleared by European settlers (Armstrong et al. 2003), and are associated with woodland, a much reduced habitat type in the Eastern Mount Lofty Ranges Ecological Area (Kahrimanis et al. 2001). In the Murray Darling Basin the loss of food trees, hollow trees and hollow branches is reducing the area of habitat available to this species and concomitantly increasing the competition among species that require similar habitat resources (Kahrimanis et al. 2001). This loss of habitat, in combination with high predation pressures, may be underlying the continuing decline of this species in South Australia. The possible loss and degradation of Brushtail Possum habitat, in the context of a relatively large and species rich floral habitat fragment, may significantly impact on the Brushtail Possum population at the local level, and possibly contribute to the ongoing decline in population size at the regional level.

5-7 Further Investigations SECTION 6

6 Further Investiga tions

6.1 Diamond Firetail Investigations

This report identifies that the project may represent a significant threat to Diamond Firetail. Further investigations are required to better define this threat and to identify viable measures to minimise or mitigate impacts, if necessary. Firstly, it is necessary to better assess the population in the Kanmantoo Project area in relation to other habitat in the region. It is recommended that other suitable habitat in the western slopes of the Southern Mount Lofty Ranges be surveyed to report the distribution of Diamond Firetail. This study would indicate whether the population at the mine site is a significant or insignificant proportion of the regional population. Secondly, it is necessary to describe the status of the Diamond Firetail population in the Kanmantoo Copper Project area. In this study the size of the population and the size and number of flocks could not be determined. A reliable description of the population is recommended to quantify and monitor the magnitude of any impacts. A capture / mark / release program is recommended. Birds would be captured at focal points such as drinking sites or feeding areas using mist nets, banded to allow permanent identification, and then released. Birds would later be captured or observed and the proportion of banded birds caught would be used to estimate the population size. On the completion of these studies, it is recommended that a detailed harm minimisation and mitigation plan is developed. This could involve operational guidelines for the mine or rehabilitation or protection of habitat elsewhere. Suitable alternative habitat would be identified from the proposed survey of habitat in the western Mount Lofty Ranges and from Ecological Associates (2007b). The plan would establish targets for the performance of the species and would set out how these targets would be monitored and reported. The objectives and methodologies of these investigations should be established in consultation with representatives of the Department of Environment and Heritage.

6.2 Spring Survey

The results of this survey are likely to have been affected by the preceding dry conditions. This survey was conducted at the end of summer and after a 12-month period with below average rainfall. Under these conditions, food availability (including seeds, insects, flowers, nectar, forage) would have been particularly low and would have resulted in fewer species and individuals being observed than in more favourable conditions. It is recommended that the survey be repeated in spring when a more representative sample of the site fauna will be evident.

6-1 References SECTION 7

7 References Antos, M. J., and A. F. Bennett. 2006. Foraging ecology of ground-feeding woodland birds in temperate woodlands of southern Australia. Emu 106:29-40. Armstrong, D. M., S. J. Croft, and J. N. Foulkes. 2003. A Biological Survey of the Southern Mount Lofty Ranges, South Australia. Department for Environment and Heritage, Adelaide. Barratt, R., S. Williams, and C. Nixon. 1991. How to Manage Native Vegetation in the Murray Mallee: A Conservation Handbook.in A. Department of Environment and Planning, South Australia, editor. Barrett, G., A. Silcocks, S. Barry, R. Cunningham, and R. Poulter. 2003. The New Atlas of Australian Birds. Birds Australia. Bautista, L. M., J. T. Garcia, R. G. Calmaestra, C. Palacin, C. A. Martin, M. B. Morales, R. Bonal, and J. Vinuela. 2004. Effect of weekend road traffic on the use of space by raptors. Conservation Biology 18:726-732. Blakers, M., S. J. J. F. Davies, and P. N. Reilly. 1984. The Atlas of Australian Birds. RAOU and Melbourne University Press, Melbourne. Braithwaite, L. W., J. Turner, and J. Kelly. 1984. Studies on the arboreal marsupial fauna of eucalyptus forests being harvested for woodpulp at Eden, NSW. III.* Relationships between faunal densities, eucalyptus occurrence and foliage nutrients, and soil parent materials. Australian Wildlife Research 11:41-48. Cooney, S. J. N. 2005. Diamond firetails (Stagonopleura guttata) preferentially nest in mistletoe. Emu 105:317- 322. Cooney, S. J. N., D. M. Watson, and J. Young. 2006. Mistletoe nesting in Australian birds: a review. Emu 106:1- 12. Dearing, M. D., and S. Cork. 1999. Role of detoxification of plant secondary compounds on diet breadth in a mammalian herbivore, Trichosurus vulpecula. Journal of Chemical Ecology 25:1205-1219. DEH. 2005a. Iron Grass (Lomandra effusa - L. multiflora ssp. dura) Tussock Grassland: Nomination for listing under the Environment Protection and Biodiversity Conservation Act 1999. Department for the Environment and Heritage, Canberra. DEH. 2005b. Peppermint Box (Eucalyptus odorata) Grassy Woodland: Nominations for Listing under the Environment protection and Biodiversity Conservation Act 1999., Department of the Environment and Heritage, Canberra. DWLBC. 2005. Draft guidelines for native vegetation significance environmental benefit under the Native Vegetation Act 1991 and Regulations 2003 for the Mineral and Petroleum Resource Industry., Department of Water, Land and Biodiversity Conservation, Adelaide, South Australia. Eckert, J. 2000. Birds. Pages 25-89 in S. N. Club, editor. Natural History of Strathalbyn and Goolwa Districts. Douglas Press, Woodville North, SA. Ecological Associates. 2007a. Kanmantoo Copper Mine Project Flora Assessment. Adelaide. Ecological Associates. 2007b. Survey of remnant Eucalyptus odorata woodland and Lomandra effusa grassland in the Kanmantoo region., Hillgrove Resources, Adelaide. Emison, W. B., C. M. White, V. G. Hurley, and D. J. Brimm. 1997. Factors influencing the breeding distribution of the peregrine falcon in Victoria, Australia. Wildlife Research 24:433-444. Falkenberg, I. D., t. E. Dennis, and B. D. Williams. 1994. Organochlorine pesticide contamination in three species of raptor and their prey in South Australia. Wildlife Research 21:163-173. Forman, R. T. T., and L. E. Alexander. 1998. Roads and their major ecological effects. Annual Review of Ecology and Systematics 29:207-231. Forman, R. T. T., B. Reineking, and A. M. Hersperger. 2002. Road traffic and nearby grassland bird patterns in a suburbanizing landscape. Environmental Management 29:782-800. Foulkes, J. N., and J. S. Gillen. 2000. A Biological Survey of the Murray Mallee, South Australia. Biological Survey and Research, Department fo Environment and heritage. Geographic Analysis and Research Unit, Department for Transport, Urban Planning and Arts. Garnett, S. T., and G. M. Crawley. 2000. Action Plan for Australian Birds. Environment Australia. Habib, L., E. M. Bayne, and S. Boutin. 2007. Chronic industrial noise affects pairing success and age structure of ovenbirds Seiurus aurocapilla. Journal of Applied Ecology 44:176-184. Harper, M. J. 2005. Home range and den use of common brushtail possums (Trichosurus vulpecula) in urban forest remnants. Wildlife Research 32:681-687.

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Higgins, P. J., J. M. Peter, and S. J. Cowling, editors. 2006. Handbook of Australian, New Zealand and Antarctic Birds. . Oxford University Press, Melbourne. How, R. A. 1983. in R. Strahan, editor. The Australian Museums Complete Book of Australian Mammals. Angus and Robertson Publishers, Melbourne. How, R. A., and S. J. Hillcox. 2000. Brushtail possum, Trichosurus vulpecula, populations in south-western Australia: demography, diet and conservation status. Wildlife Research 27:81-89. Jones, E., and B. J. Coman. 1981. Ecology of the feral cat, Felis catus (L.), in south-eastern Australia. I. Diet. Australian Wildlife Research 8:537-547. Kahrimanis, M. J., S. Carruthers, A. Oppermann, and R. Inns. 2001. Biodiversity Plan for the South Australian Murray-Darling Basin. Department for Environment and Heritage, Adelaide South Australia. Kerle, J. A. 1984. Variation in the ecology of Trichosurus: its adaptive significance. Pages 115-128 in A. P. Smith and I. D. Hume, editors. Possums and Gliders. Australian Mammal Society, Sydney. Kerle, J. A. 1998. The population dynamics of a tropical possum, Trichosurus vulpecula arnhemensis Collett. Wildlife Research 25:171-181. Kerle, J. A., J. N. Foulkes, R. G. Kimber, and D. Papenfus. 1992. The decline of the Brushtail Possum, Trichosurus vulpecula (Kerr 1798), in arid Australia. Rangeland Journal 14:107-127. Kertesz, V., G. Bakonyi, and B. Farkas. 2006. Water pollution by Cu and Pb can adversely affect mallard embryonic development. Ecotoxicology and Environmental Safety 65:67-73. McGuire, A., and S. Kleindorfer. 2007. Nesting success and apparent nest-adornment in Diamond Firetails (Stagonopleura guttata). Emu 107:1-8. National Parks and Wildlife Council and Department of Environment and Heritage. 2003. 2003 Review of the Status of Threatened Species in South Australia. Proposed Schedules under the South Australian National Parks and Wildlife Act 1972. Discussion Paper Adelaide. National Parks and Wildlife SA. 2000. Guidelines for Vertebrate Surveys in South Australia Using the Biological Survey of South Australia.in B. S. a. R. D. D. f. E. a. Heritage, editor. Neagle, N. 1995. An update of the conservation of the major plant associations of South Australia. Native Vegetation Conservation Section, Department of Environment and Natural Resources, Adelaide. O'Gorman, B. 1981. A prolonged field study of the diamond firetail. Australian Aviculture January:14-27. Olsen, P., M. Weston, R. B. Cunningham, and A. Silcocks. 2003. The state of Australia's birds 2003. Birds Australia. Olsen, P. D., and J. Olsen. 1979. Eggshell thinning in the peregrine, Falco peregrinus (Aves: Falconidae) in Australia. Australian Wildlife Research 6:217-226. Olsen, P. D., and J. Olsen. 1988a. Breeding of the Peregrine Falcon Falco peregrinus: I. weather, nest spacing and territory occupancy. Emu 88:195-201. Olsen, P. D., and J. Olsen. 1988b. Population trends, distribution, and status of the peregrine falcon in Australia. Pages 255-274 in T. J. Cade, J. H. Enderson, C. G. Thelander, and C. M. White, editors. Peregrine Falcon Populations: Their Management and recovery. The Peregrine Fund, Boise. Parsons Brinckerhoff. 2006. Kanmantoo Fauna Desktop Assessment. Hillgrove Resources Limited, Adelaide. Paton, D. C., G. Carpenter, and R. G. Sinclair. 1994. A second bird atlas of the Adelaide region. Part 1: Changes in the distribution of birds: 1974-75 vs 1984-85. Part 2: Distribution maps 1984-85. South Australian Ornithologist 31:151-265. Paton, D. C., D. J. Rogers, and W. Harris. 2004. Birdscaping the environment: restoring the woodland systems of the Mt Lofty region, South Australia. Pages 331-358 in D. Lunney, editor. Conservation of Australia's Forest Fauna. Royal Zoological society of New South Wales, Mosman, NSW. Pickett, K. N., D. S. Hik, A. E. Newsome, and R. P. Pech. 2005. The influence of predation risk on foraging behaviour of brushtail possums in Australian woodlands. Wildlife Research 32:121-130. Read, J. L. 1987. The ecology of firetail finches. University of Adelaide, Adelaide. Read, J. L. 1994. The diet of three species of firetail finches in temporate South Australia. Emu 94:1-8. Reardon, T., and S. Bourne. 2006. Bats of the : The South East of South Australia. The Friends of Naracoorte Caves, Naracoorte South Australia.

7-2 References SECTION 7

Rheindt, F. E. 2003. The impact of roads on birds: does song frequency play a role in determining susceptibility to noise pollution? Journal fur Ornithologie 144:295-306. Robinson, D., and M. Howell. 2003. Biodiversity Action Planning. Local Biodiversity Planning. Longwood Zone Trial. Department of Sustainability and Environment, Victoria and Goulburn Broken Catchment Management Authority, Victoria. Sacchi, M. P. 2003. The impact of habitat loss and habitat fragmentation on the survival of the herpetofauna in the southern Mount Lofty Ranges, South Australia. University of South Australia, Mawson Lakes, Adelaide.

7-3 Appendix A Bird Observations from the Biological Survey of SA

DEH records of birds within 6 km of the Kanmantoo Copper Mine area boundary

DEH Ecol Total Percent of Assoc SPECIES COMNAME Records Observations Survey Corvus sp. 80.36 Tachybaptus Australasian Grebe, (Little novaehollandiae Grebe) 5 0.23 Falco longipennis Australian Hobby 2 0.09 Gymnorhina tibicen Australian Magpie 142 6.45 O Aegotheles cristatus Australian Owlet-nightjar 0 0.00 O Corvus coronoides Australian Raven 2 0.09 Australian Wood Duck, (Maned Chenonetta jubata Duck) 11 0.50 Tyto alba Barn Owl 2 0.09 Falco subniger Black Falcon 1 0.05 Coracina novaehollandiae Black-faced Cuckoo-shrike 29 1.32 Elanus axillaris Black-shouldered Kite 9 0.41 O Falco berigora Brown Falcon 3 0.14 Accipiter fasciatus Brown Goshawk 3 0.14 Cincloramphus cruralis Brown Songlark 1 0.05 Climacteris picumnus Brown Treecreeper 8 0.36 Melithreptus brevirostris Brown-headed Honeyeater 6 0.27 O Melopsittacus undulatus Budgerigar 1 0.05 Acanthiza reguloides Buff-rumped Thornbill 23 1.04 Scythrops novaehollandiae Channel-billed Cuckoo 1 0.05 Acrocephalus stentoreus Clamorous Reedwarbler 2 0.09 Nymphicus hollandicus Cockatiel 1 0.05 Accipiter cirrhocephalus Collared Sparrowhawk 1 0.05 Phaps chalcoptera Common Bronzewing 3 0.14 Sturnus vulgaris Common Starling 62 2.82 O Phylidonyris pyrrhoptera Crescent Honeyeater 4 0.18 Oreoica gutturalis Crested Bellbird 1 0.05 Ocyphaps lophotes Crested Pigeon 34 1.54 O Platycercus elegans Crimson Rosella 198 8.99 O Stagonopleura guttata Diamond Firetail 8 0.36 O Gallinula tenebrosa Dusky Moorhen 4 0.18 Artamus cyanopterus Dusky Woodswallow 13 0.59 O Acanthorhynchus tenuirostris Eastern Spinebill 19 0.86 Turdus merula Eurasian Blackbird 39 1.77 Fulica atra Eurasian Coot 5 0.23 Alauda arvensis Eurasian Skylark 2 0.09 Carduelis carduelis European Goldfinch 12 0.54 O Petrochelidon ariel Fairy Martin 3 0.14 Cacomantis flabelliformis Fan-tailed Cuckoo 2 0.09 Cacatua roseicapilla Galah 85 3.86 O Pachycephala pectoralis Golden Whistler 27 1.23 Phalacrocorax carbo Great Cormorant 2 0.09 Strepera versicolor Grey Currawong 28 1.27 Rhipidura albiscapa Grey Fantail 61 2.77 Colluricincla harmonica Grey Shrike-thrush 40 1.82 O Aythya australis Hardhead (White-eyed Duck) 1 0.05 Poliocephalus poliocephalus Hoary-headed Grebe 1 0.05 Chrysococcyx basalis Horsfield's Bronze-cuckoo 3 0.14 Mirafra javanica Horsfield's Bushlark 1 0.05 Passer domesticus House Sparrow 36 1.63

A-1 Appendix A Bird Observations from the Biological Survey of SA

DEH Ecol Total Percent of Assoc SPECIES COMNAME Records Observations Survey Microeca fascinans Jacky Winter 1 0.05 Dacelo novaeguineae Laughing Kookaburra 10 0.45 Cacatua sanguinea Little Corella 4 0.18 Phalacrocorax melanoleucos Little Pied Cormorant 2 0.09 Corvus mellori Little Raven 63 2.86 O Anthochaera chrysoptera Little Wattlebird 1 0.05 Grallina cyanoleuca Magpie-lark 27 1.23 O Vanellus miles Masked Lapwing 1 0.05 Dicaeum hirundinaceum Mistletoebird 2 0.09 Glossopsitta concinna Musk Lorikeet 42 1.91 Falco cenchroides Nankeen Kestrel 10 0.45 O Phylidonyris novaehollandiae New Holland Honeyeater 97 4.41 O Manorina melanocephala Noisy Miner 9 0.41 O Anas superciliosa Pacific Black Duck 4 0.18 Geopelia placida Peaceful Dove 4 0.18 Falco peregrinus Peregrine Falcon 4 0.18 O Phalacrocorax varius Pied Cormorant 1 0.05 Porphyrio porphyrio Purple Swamphen 1 0.05 Glossopsitta porphyrocephala Purple-crowned Lorikeet 6 0.27 O Merops ornatus Rainbow Bee-eater 4 0.18 O Trichoglossus haematodus Rainbow Lorikeet 9 0.41 Anthochaera carunculata Red Wattlebird 81 3.68 Neochmia temporalis Red-browed Finch 20 0.91 Petroica goodenovii Red-capped Robin 1 0.05 Psephotus haematonotus Red-rumped Parrot 23 1.04 Myiagra inquieta Restless Flycatcher 2 0.09 Anthus novaeseelandiae Richard's Pipit 5 0.23 Columba livia Rock Dove 9 0.41 Cincloramphus mathewsi Rufous Songlark 3 0.14 Pachycephala rufiventris Rufous Whistler 5 0.23 O Zosterops lateralis Silvereye 6 0.27 Lichenostomus virescens Singing Honeyeater 13 0.59 O Aphelocephala leucopsis Southern Whiteface 3 0.14 O Acanthagenys rufogularis Spiny-cheeked Honeyeater 2 0.09 Circus assimilis Spotted Harrier 1 0.05 Pardalotus punctatus Spotted Pardalote 3 0.14 Streptopelia chinensis Spotted Turtle-dove 4 0.18 Pardalotus striatus Striated Pardalote 116 5.27 O Acanthiza lineata Striated Thornbill 53 2.41 Coturnix pectoralis Stubble Quail 1 0.05 Cacatua galerita Sulphur-crested Cockatoo 23 1.04 Malurus cyaneus Superb Fairy-wren 133 6.04 Petrochelidon nigricans Tree Martin 41 1.86 Daphoenositta chrysoptera Varied Sittella 4 0.18 Malurus lamberti Variegated Fairy-wren 1 0.05 Aquila audax Wedge-tailed Eagle 4 0.18 O Smicrornis brevirostris Weebill 4 0.18 O Hirundo neoxena Welcome Swallow 28 1.27 O Cheramoeca leucosternus White-backed Swallow 1 0.05 Pomatostomus superciliosus White-browed Babbler 15 0.68 Egretta novaehollandiae White-faced Heron 5 0.23 Epthianura albifrons White-fronted Chat 1 0.05

A-2 Appendix A Bird Observations from the Biological Survey of SA

DEH Ecol Total Percent of Assoc SPECIES COMNAME Records Observations Survey Melithreptus lunatus White-naped Honeyeater 29 1.32 Lichenostomus penicillatus White-plumed Honeyeater 73 3.32 O Cormobates leucophaeus White-throated Treecreeper 2 0.09 Corcorax melanorhamphos White-winged Chough 6 0.27 O Rhipidura leucophrys Willie Wagtail 60 2.72 O Acanthiza nana Yellow Thornbill 17 0.77 O Lichenostomus chrysops Yellow-faced Honeyeater 101 4.59 Acanthiza chrysorrhoa Yellow-rumped Thornbill 45 2.04 O Taeniopygia guttata Zebra Finch 1 0.05 Grand Total 2202 100.00

A-3 Appendix B Bat species call identification graphs

The Australasian Bat Society Inc. reporting standards for insectivorous bat surveys using bat detectors require a sample ‘time versus frequency’ graph of each species identified during the survey to be included in the final report. These graphs must be of bats recorded and identified during the survey. Graphs of each of the seven species identified are presented below:

Mormopterus planiceps

Tadarida australis Vespadelus regulus

B-1 Appendix B Bat species call identification graphs

Chalinolobus morio Vespadelus darlingtoni

Chalinolobus gouldii

B-2 Appendix C Mammals

Conserv Common Scientific Family Habitat Type ation Name Name Status sp. SA AUS Regrowth woodland grassland grassland Woodland Woodland Allocasuarina Golden wattle Rock Outcrop Austrostipa Lomandra effusa Mallee Woodland Riparian NE Gully Eucalyptus odorata

Western Macropus 5, MACROPODIDAE Grey 2 fuliginosus >10 Kangaroo Macropus MACROPODIDAE Euro 12 robustus Common Trichosurus PHALANGERIDAE Brushtail 21 vulpecula Possum CANIDAE Fox *Vulpes vulpes 2,1 1 House MURIDAE Murinae *Mus musculus 193 Mouse *Oryctolagus LEPORIDAE Rabbit 1 cuniculus Brown *Lepus LEPORIDAE 111 Hare capensis White- striped Tadarida MOLOSSIDAE 20 11 12 Freetail- australis bat Southern Mormopterus MOLOSSIDAE Freetail- 9 1 planiceps bat Gould's Chalinolobus Wattled 6 1 3 gouldii Bat Lesser VESPERTILIONIDAE Nyctophilus Long- 8 1 4 Nyctophilinae geoffroyi eared Bat Chocolate VESPERTILIONIDAE Chalinolobus Wattled 5 Vespertilioninae morio Bat VESPERTILIONIDAE Large Vespadelus 2 Vespertilioninae Forest Bat darlingtoni VESPERTILIONIDAE Southern Vespadelus 1 Vespertilioninae Forest Bat regulus VESPERTILIONIDAE Little Vespadelus 1? Vespertilioninae Forest Bat vulturnus or Vd AUS: National Conservation rating (EPBC Act) SA: State Conservation rating (NPW Act) CE: Critically Endangered threatened species rating – species facing an extremely high risk of extinction in the wild in the immediate future E: Endangered threatened species rating – species not critically endangered but facing an extremely high risk of extinction in the wild in the immediate future V: Vulnerable threatened species rating; species not critically endangered or endangered but facing a high risk of extinction in the wild in the medium-term future

C-1 Appendix D Reptile

Conser Habitat Type vation Status

Common Scientific Family

Name Name sp. SA AUS Regrowth woodland grassland grassland Woodland Woodland Allocasuarina Golden wattle Rock Outcrop Austrostipa Lomandra effusa Mallee Woodland Riparian NE Gully Eucalyptus odorata

Tawny Ctenophorus AGAMIDAE 33>5 Dragon decressii Eastern Ctenotus SCINCIDAE Spotted 2 orientalis Ctenotus Eastern Ctenotus SCINCIDAE Striped 31 robustus Skink SCINCIDAE Dwarf Skink Menetia greyii 312 Sleepy SCINCIDAE Tiliqua rugosa 1 6 21 Lizard Eastern Tiliqua SCINCIDAE 1 Bluetongue scincoides Delma GEKKONIDAE Adelaide molleri? 1 Pygopodinae Snake-lizard (Possibly D. inornata)1 GEKKONIDAE Thick-tailed Nephrurus 21 1 Diplodactylinae Gecko milii GEKKONIDAE Southern Gehyra sp. 12 Gekkoninae Rock Dtella '2n=44' AUS: National Conservation rating (EPBC Act) SA: State Conservation rating (NPW Act) CE: Critically Endangered threatened species rating – species facing an extremely high risk of extinction in the wild in the immediate future E: Endangered threatened species rating – species not critically endangered but facing an extremely high risk of extinction in the wild in the immediate future V: Vulnerable threatened species rating; species not critically endangered or endangered but facing a high risk of extinction in the wild in the medium-term future 1: Identification made from skin cast. Based on location probably Delma molleri,butDelma inornata cannot be excluded

D-1 Appendix 7

Kanmantoo Copper Project Socio and Economic Impact Assessment Hillgrove Resources Ltd.

Kanmantoo Copper Project

Socio and Economic Impact Assessment

September 2007 CR 5000_3_v3

Prepared by: Enesar Consulting Pty Ltd 126 Trenerry Crescent Abbotsford Victoria Australia 3067 p 61-3-9418 0600 f 61-3-9418 0650 e [email protected] www enesar.com.au Principal David Browne Associate Tara Halliday Consultant Susannah Kenny, Kathryn Levingstone Draftsperson/graphic designer Felicity Thompson GIS Grant Young WP/DTP Jill ONeil Version/s: Distribution: CR 5000_3_v3 Hillgrove–1copy September 2007 Enesar – 1 copy (Via email) Contents 1. Introduction 1 1.1 Project Proponent 1 1.2 Project Area 1 1.3 Project Description 1 1.4 Study Area 3 1.5 Method 3 1.5.1 Objective and Approach 3 1.5.2 Stakeholder Consultation and Fieldwork Undertaken for this Report 4 1.5.3 Stakeholder Consultation Undertaken by Hillgrove 10 2. Existing Socio-economic Environment 12 2.1 Key Demographics 12 2.1.1 Population 12 2.1.2 Age 12 2.1.3 Ethnicity 16 2.1.4 Education 16 2.1.5 Employment 16 2.1.6 Skill Levels 18 2.2 Incomes 18 2.3 Land Use 19 2.3.1 Council Zoning 19 2.3.2 Undeveloped Land 20 2.4 Economy 21 2.4.1 Future Major Developments 22 2.5 Accommodation 22 2.5.1 Availability 22 2.5.2 Property Value 23 2.5.3 Temporary Accommodation 25 2.6 Community Services and Facilities 26 2.6.1 Health Care Providers 26 2.6.2 Educational Facilities 28 2.6.3 Police and Emergency Services 29 2.7 Existing Infrastructure 29 2.7.1 Roads 29 2.7.2 Rail 31 2.7.3 Communications 31 2.7.4 Power and Water Supplies 31 2.8 Community Attitude 31 3. Project Socio-economic Details 33 3.1 Economics 33 3.2 Economic and Employment Multipliers 33 3.3 Construction and Operations Workforce 34 3.3.1 Construction Workforce 34 3.3.2 Operations Workforce 34 3.3.3 Recruitment and Training Policies 34 3.4 Accommodation and Transport Arrangements 35

i Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

3.5 Infrastructure 35 3.5.1 Water 35 3.5.2 Electricity 35 3.5.3 Road 35 3.5.4 Rail 36 4. Potential Economic Impacts 37 4.1 National, State and Regional Economic Impacts 37 4.1.1 National and State Economic Impacts 37 4.1.2 Local and Peripheral Economic Impacts 38 4.2 Employment 39 4.2.1 Retail Sales 40 4.2.2 Tourism 40 4.2.3 Residential Housing Prices 41 4.2.4 Rural Property Prices 41 5. Potential Social Impacts 43 5.1 Population Changes and Employment 43 5.1.1 Workforce 43 5.1.2 Impacted Landholders 44 5.1.3 Police and Emergency Services 44 5.1.4 Employment 44 5.1.5 Competition for Skilled Labour 45 5.2 Accommodation 46 5.2.1 Availability 46 5.2.2 Temporary Accommodation 46 5.3 Infrastructure 47 5.3.1 Roads 47 5.3.2 Power and Water Supply 47 5.4 Community Services and Facilities 48 5.4.1 Health 48 5.4.2 Schools and Childcare 48 5.4.3 Shops and Commercial Services 49 5.4.4 Police and Emergency Services 49 5.5 Community Cohesion 50 6. References and Bibliography 51 6.1 Personal Communications 53

Figures 1 Kanmantoo Copper Project – study area 2 2 Population change (total) 2000 - 2004 13 3 Population change (%) 2000 - 2004 14 4 Callington and Kanmantoo council zonings 24 5 Bus routes and haul routes 30

ii Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

Tables 1 Summary of tenements 1 2 Stakeholders consulted 4 3 Key demographic indicators for local towns* 15 4 Education level in local towns (% of total population) 16 5 Predominant industries of employment and occupations in local towns 17 6 Regional job listings 17 7 Typical crops 19 8 Planning schemes of Local Government Areas within the study area 19 9 Planning schemes of Callington and Kanmantoo 20 10 Properties for sale within the study area 22 11 Sales and overall growth rate (1993 to 2006)* 23 12 Rural property prices (Callington and surrounds) 25 13 Properties for rent within the study area 25 14 Educational facilities within the vicinity of the study area 28

Plates 1 Callington Primary School 5 2 Callington Kindergarten 5 3 New housing development in Kanmantoo. This development is situated adjacent to Mine Road 5 4 Main Street, Hahndorf 6 5 The Hahndorf Inn, Main Street Hahndorf 6 6 Main Street, Woodside 6 7 The Murray Bridge and the Rail Bridge, Murray Bridge 7 8 The local cinema, Murray Bridge 7 9 The Victoria Hotel, Albyn Terrace, Strathalbyn 7 10 Eastern Fleurieu School, Strathalbyn 8 11 The old post office, Dawsley 8 12 A regional tourist attraction, the Monarto Zoo, Monarto South 8 13 Waste rock dumps at 9 14 Disused building, Pallamanna 9 15 Houses and land required in the Murray Bridge area 9 16 Temporary accommodation available in the study area 27 17 Opening of the environmental complex (a Hillgrove sponsored event), Callington Primary School, March 2007 27 18 The Callington Football oval, showing Hillgrove sponsorship 27

Appendices 1 Kanmantoo – Callington Community Consultative Committee. Hillgrove Response - July 2007 2 An Economic Evaluation of the Kanmantoo Copper Mining and Rehabilitation Project 3 Population projections for the Murraylands and Mount Barker LGAs

iii Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 1. Introduction

1.1 Project Proponent Hillgrove Resources Limited (Hillgrove), is an emerging Australian copper-gold producer, listed on the Australian Stock Exchange since 2003. Hillgrove, and its subsidiary Hillgrove Copper Pty Ltd, has business interests in Eastern Star Gas, Kanmantoo and exploration projects at Mount Rhine, Mount Torrens and Alford in South Australia. Hillgrove has offices in Sydney, Perth and Callington (South Australia).

1.2 Project Area The Kanmantoo Copper Mine is located approximately 44 km southeast of Adelaide in the southern Mount Lofty Ranges of South Australia. The proposed project area is approximately 1.5 km north to northeast of Kanmantoo and 4 km southeast of Callington (Figure F001). Closest regional centres servicing the district include Mount Barker, 14 km west of the project area and Murray Bridge, 24 km southwest.

The project area is within the District Council of Mount Barker, defined as a Local Government Area (LGA) by the Australian Bureau of Statistics (ABS).

Hillgrove holds a series of tenements for the project (Table 1). The proposed project area is approximately 2.5 km long and 2 km wide (4.44 km2).

Table 1 Summary of tenements Tenement Tenement Date Date Area Registered Titleholder(s) Number Name Granted Expired 489 Hillgrove (90%) and Kelaray EL 3277 Kanmantoo 3/11/2004 2/11/2006 km2 Pty Ltd (10%) Kanmantoo 1.5 EL 3298 18/1/2005 17/01/2007 Hillgrove Copper Pty Ltd Mine km2 Kanmantoo 0.46 ML 5776 9/12/1991 8/12/2012 Hillgrove Resources Mine km2 Kanmantoo 0.46 MC 3510 30/3/2005 29/03/2006* Hillgrove Copper Pty Ltd Mine km2 * Under application for retention lease. Remains current until lease is granted.

1.3 Project Description The Kanmantoo Copper Project (hereafter referred to as the project) will consist of an open pit(s), integrated waste landform and associated infrastructure to extract and process copper-gold ore. Processing of the ore will be undertaken on site to produce a mineral concentrate for export and sale on the world market.

Preliminary studies and a conceptual mine plan are based on an initial mine life of 8 years with construction starting in late 2007 to early 2008 for a 12 month duration. Mining is expected to commence in late 2008 to early 2009.

Current resources at Kanmantoo are approximately 33.4 million tonnes of ore, grading at 0.9% copper and 0.2% gold. The total copper resource is estimated at 290,000 tonnes and 216,900 ounces of gold.

1 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 290 000 295 000 300 000 305 000 310 000 315 000 320 000 325 000 330 000 335 000 340 000 345 000 350 000 6 135 000 6 135 000

a River River Murray Approximately 40 km to Adelaide

CAMPBELLTOWN Onkaparing Charleston 6 130 000 6 130 000 BURNSIDE Salt Creek Rockleigh MID MURRAY Ponde Woodside Harrogate Uraidla MannumCaloote Summertown Tepko Junction Road Inverbrackie Pompoota 6 125 000 6 125 000 Oakbank Yantaringa Balhannah Brukunga MITCHAM Mount Lofty Carripook Long Gully Bridgewater Ambleside Aldgate Jibilla Stirling Mypolonga National ParkUpper Sturt Madurta Preamimma Creek Pallamanna Heathfield Hahndorf Nairne 6 120 000 6 120 000 Mylor Bremer River

Mount Barker Petwood Kanmantoo Monarto Mount Barker Junction urray

MURRAY BRIDGE RiverKinchina M LittlehamptonMOUNT BARKER Balyarta 6 115 000 6 115 6 115 000 6 115 Echunga Wistow St Ives Mobilong Prison Philcox Hill CallingtonOld Princes Highway Murray Bridge Monarto South Rabila

Flaxley Road ONKAPARINGA

Swanport a Road Red Creek South Eastern Highway 6 110 000 6 110 6 110 000 6 110 ALEXANDRINA Braendler Scrub Battung Macclesfield Monteith Meadows Bugle Ranges Hartley Kangarilla Woodchester LEGEND Gemmells Study area 6 105 000 6 105 000 Jervois Road Bletchley Local government area Rodwell Creek SOUTH AUSTRALIA

Long Valley Road

Project area Strathalbyn Road N Adelaide Kuitpo Valley Brinkley 6 100 000 6 100 000 Railway

Goolwa Road Watercourse Dal 05km veen Road Waterbody Scale 1:250,000 Projection: GDA94 MGA Zone 54

290 000 295 000 300 000 305 000 310 000 315 000 320 000 325 000 330 000 335 000 340 000 345 000 350 000

Note: For the purposes of the socio-economic assessment, theDate: study area is defined as the area within approximately Figure No: 20 km (or 15 mins drive) from the centre of the project area. Although Murray Bridge is located just outside the defined study area it is likely to be impacted to some extent by the project and is still considered part of the study area.06.06.07 MXD: Hillgrove Resources Ltd HillgroveResources_KanmantooGIS Socio-economic study area 1 Source: Job No: Kanmantoo Copper Project Place names, roads, rail and drainage from GEODATA TOPO 250K (optimum scale 1:250,000) 5000_03_F001_GIS_AI Kanmantoo Copper Project Social and Economic Impact Assessment

Ore will be mined and processed at a rate of 250 tonnes per hour (tph) using a conventional crushing, grinding and floatation circuit to produce approximately 70,000 tonnes per annum (tpa) of copper-gold concentrate.

1.4 Study Area For the purposes of this socio-economic assessment, the study area is defined as the area within approximately 20 km (or 15 minute drive) from the centre of the project area (see Figure F001).

The study area is divided into two categories:

• The local area: towns located within 5 km of the project area (Callington and Kanmantoo).

• The peripheral area: all other towns contained within the study area, as well as Adelaide (see Figure F001).

The study area takes into consideration distances people are prepared to travel for goods and services and is designed to include all communities with potential to be directly impacted by the project. The study area is located within the District Council of Mount Barker and the Murray Bridge Rural City Council local government areas (LGAs) as defined by the ABS.

1.5 Method

1.5.1 Objective and Approach The objective of this report is to provide a social and economic assessment of the project for input to the Kanmantoo Copper Project Mining Lease Proposal (MLP), which is the key document for regulatory assessment of the project. The socio-economic assessment has been based on:

• An analysis of the existing socio-economic environment, including an assessment of key population and demographic characteristics of the potentially affected communities, a review of local social infrastructure (including education, health services and facilities), existing housing and accommodation and land use and infrastructure planning.

• Interviews with stakeholders including local government, state government agencies, social service providers and members of the community, to identify local community values and existing and future social service needs.

• Assessment of potential social and economic impacts (positive and negative) of the construction and operation of the project including effects on local and regional residents, social infrastructure, community wellbeing and workforce.

• Identification of approaches to maximise the community benefits and minimise any potential adverse social impacts.

3 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

1.5.2 Stakeholder Consultation and Fieldwork Undertaken for this Report Fieldwork was undertaken over four days in the following locations:

• Callington (Plates 1 and 2). • Kanmantoo (Plate 3). • Hahndorf (Plates 4 and 5). • Woodside (Plate 6). • Nairne. • Mount Barker. • Murray Bridge (Plates 7 and 8). • Strathalbyn (Plates 9 and 10). • Dawsley (Plate 11). • Monarto and Monarto South (Plate 12). • Harrogate. • Brukunga (Plate 13). • Rockleigh. • Pallamanna and Tepko (Plate 14).

Thirteen community stakeholders were formally interviewed (Table 2). Interviewees were selected based on:

• Project familiarity. • Availability at the time fieldwork was undertaken. • Role within the community. • Proximity to the project area.

Table 2 Stakeholders consulted Date Stakeholder Role 7 March 2007 Callington Kindergarten Teacher, Helen Robertson Rural City Council of Murray Senior Planner - Development Bridge Assessment, Michael Walmesley 8 March 2007 District Council of Mount Environmental Officer, Greg Sarre, Barker Manager - Engineering and Technical Services, Atis Berzins and Peter McGinn, Community Development Officer Adelaide Hills Regional CEO, Bob Goering and Employment and Development Board staff Skills Formation - Project Support Officer, member Belinda Groser Hillgrove Marty Adams, Site Manager, John Popow, Land Owner Liaison Officer 9 March Murraylands Hills Regional CEO, Brenton Lewis, Project Manager Development Board staff Export and Food, Chris Weir and member Business Advisor, Darryll Webb Callington Primary School Teacher, Fiona Challen

Five directly affected landholders were contacted in May 2007. Interviewees were selected based on proximity to the project area and extent of stakeholder consultation already undertaken by Hillgrove in regards to land purchase.

4 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Plate 1 Callington Primary School

Plate 2 Callington Kindergarten

Plate 3 New housing development in Kanmantoo. This development is situated adjacent to Mine Road

5000_02_P001-P003_FT Plate 4 Main Street, Hahndorf

Plate 5 The Hahndorf Inn, Main Street Hahndorf

Plate 6 Main Street, Woodside

5000_02_P004-P006_FT Plate 7 The Murray Bridge and the Rail Bridge, Murray Bridge

Plate 8 The local cinema, Murray Bridge

Plate 9 The Victoria Hotel, Albyn Terrace, Strathalbyn

5000_02_P007-P009_FT Plate 10 Eastern Fleurieu School, Strathalbyn

Plate 11 The old post office, Dawsley

Plate 12 A regional tourist attraction, the Monarto Zoo, Monarto South

5000_02_P010-P012_FT Plate 13 Waste rock dumps at Brukunga

Plate 14 Disused building, Pallamanna

Plate 15 Houses and land required in the Murray Bridge area

5000_02_P013-P015_FT Kanmantoo Copper Project Social and Economic Impact Assessment

In each town, community organisations and retail outlets were visited and 24 community members were informally interviewed:

• Volunteers working in a tourist bureau. • Residents of several local towns. • Local landowners. • Local business owners: – Café owner. – Butcher. – Chemist. – Hotel manager. – Second-hand dealers. –Farmer. – Motel owner. – Real estate agents. • District Council of Mount Barker Mayor. • Hills Murray Local Service Area police. • Emergency services providers. • Agronomist. • Medical services providers. • School administrators.

1.5.3 Stakeholder Consultation Undertaken by Hillgrove Hillgrove commenced consultation activities within the local community in April 2004 when exploration activities began. Consultation involved education programs during one- on-one consultations and project information updates.

Consultation activities have expanded as the project has progressed through the prefeasibility study (early 2005 to November 2006) and the definitive feasibility study stage (November 2006 to present) including the establishment of the Kanmantoo – Callington Focus Group and Kanmantoo/Callington Community Consultative Committee (K/CCCC) and production of a monthly newsletter which is distributed to over 200 stakeholders. During these stages, consultation was focused on three main areas:

• Liaison with key state and Australian government agencies to establish the appropriate permitting and approval path for the project.

• Liaison with local landholders to facilitate land access for exploration specialist study activities.

• Liaison with the community, initially through the Kanmantoo – Callington Focus Group and since November 2006, the K/CCCC to provide project information and answer project-related questions.

Key activities to date have included:

– Presentation of findings of specialist consultant reports at the K/CCCC.

– Posting of summary of findings and K/CCCC recommendations on the Hillgrove web site (www.hillgroveresources.com.au).

10 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

– Considering K/CCCC recommendations and formally accepting 108 of the recommendations. The remaining 21 were accepted in principal (Appendix 1).

– Modifying the mine plan and mining method to accommodate recommendations.

– Incorporating recommendations into the MLP.

Project information, minutes from community meetings, summaries of specialist study findings and recommendations, chairs reports (Appendix 2) and Hillgroves response to recommendations are posted on Hillgrove's website.

Specific outcomes of consultation activities include:

• Hillgrove's development of a number of community-orientated commitments, such as sponsorship of the Callington Football Club and the Kanmantoo Miners Reunion.

• A broad understanding of the importance of issues to stakeholders (including those issues raised during the K/CCCC). Those of key importance include:

– Traffic, particularly use of existing roads.

– Water, particularly use of water from the .

– Existing vegetation, particularly Eucalyptus ordorata low woodland and Lomandra effusa open tussock grassland.

• Commissioning of an economic evaluation of the project to support this Social and Economic Impact Assessment in response to a request by the community (Appendix 3).

11 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

2. Existing Socio-economic Environment

2.1 Key Demographics The study area is characterised by dryland and irrigated agriculture, manufacturing and production and processing of farm products. Demographic indicators for local towns based on ABS 2001 Census data1 are summarised in Table 3. Local and peripheral communities within the study area are currently experiencing rapid growth. This is attributed to housing affordability within towns located within easy commuting distance (45 minutes) from Adelaide

2.1.1 Population Between 2000 and 2004, the population of the study area increased by 6% (from 55,453 to 58,796). Over the same period population growth rates in South Australia and Australia were lower at 1.8% and 4.6% respectively. This is mainly attributed to the rapid population increase in the town of Mount Barker, which rose by approximately 12% between 2000 and 2004 (Figure F002 and F003).

Between 2001 and 2006, the population of Callington rose from 337 to 1,244 and in Kanmantoo from less than 200 to 617 (ABS, 2007).

The population of the towns of Mount Barker and Murray Bridge in 2005 was 26,186 and 18,000 respectively. Based on new land release and recently approved rezoning, the District Council of Mount Barker estimates a population increase in the town of Mount Barker of 7,314 by 2013. The Rural City of Murray Bridge Council predicts an increase in the town of Murray Bridge of 12,000 by 20302.

Growth rates in the town of Mount Barker are higher than the average national growth rate of 3.5%. This is likely to be the result of the availability of cheaper housing in Mount Barker compared to Adelaide (see Section 2.5.1). This is consistent with the aims of the Strategic Management Plan for the Rural City of Murray Bridge (2005) and Adelaide Hills Regional Development Plan (2006) which outline strategies to facilitate urban growth.

2.1.2 Age The median age of the Mount Barker and Murray Bridge LGAs populations is between 34 and 36 years respectively. This is similar to the rest of the state (37 years) and Australia (35 years). Median age shows greater variability through the local townships,

1 Data from the most recent census, conducted on 8 August 2006, is currently unavailable. The first data from the 2006 census are expected to be released in mid 2007.

2 Data from Planning SA estimates population decline in Murray Bridge LGA and a 14% population increase in Mount Barker LGA by 2016 (Appendix 4). This data is considered conservative and does not reflect planning approvals and developments more recently approved.

12 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Population change (total study area)

59,000

58,000

57,000

56,000 Population 55,000

54,000

53,000 2000 2001 2002 2003 2004

Year

Note: For the purposes of the socio-economic assessment, the study area is defined as the area within approximately 20 km (or 15 mins drive) from the centre of the project area. Although Murray Bridge is located just outside the defined study area it is likely to be impacted to some extent by the project and is still considered part of the study area.

Population change (defined statistical areas within the study area)

20,000

18,000

16,000

14,000

12,000

10,000

8,000 Population

6,000

4,000

2,000

0 2000 2001 2002 2003 2004

Year

Murray Bridge (RC) Adelaide Hills (DC) - North SLA Adelaide Hills (DC) - Balance of SLA Mount Barker (DC) - Central SLA Mount Barker (DC) - Balance of SLA

Note: Between censuses, the smallest spatial unit is the SLA. There are 128 SLAs in South Australia. RC = Regional Council DC = District Council SLA = Statistical Local Area Job No: Figure No: 5000 Hillgrove Resources Ltd File No: Population change (total) 2000-2004 2 5000_03_F002_FT Kanmantoo Copper Project Population change (%) (total study area) 1.55

1.50

1.45

1.40

1.35 Population (% change) 1.30

1.25 2001 2002 2003 2004

Year

Note: For the purposes of the socio-economic assessment, the study area is defined as the area within approximately 20 km (or 15 mins drive) from the centre of the project area. Although Murray Bridge is located just outside the defined study area it is likely to be impacted to some extent by the project and is still considered part of the study area.

Population change (%) (defined statistical areas within the study area) 5.00

4.00

3.00

2.00

1.00 Population (% change) 0.00

-1.00 2001 2002 2003 2004 Year

Murray Bridge (RC) Adelaide Hills (DC) - North SLA Adelaide Hills (DC) -balance of SLA Mount Barker (DC) - Central SLA Mount Barker (DC) - balance of SLA South Australia Australia

Note: Between censuses, the smallest spatial unit is the SLA. There are 128 SLAs in South Australia. RC = Regional Council DC = District Council SLA = Statistical Local Area Job No: Figure No: 5000 Hillgrove Resources Ltd File No: Population change (%) 2000-2004 3 5000_03_F003_FT Kanmantoo Copper Project (8.4%) Mount 21,293 18,661 (1,103) (1,548) (1,370) (93.1%) (81.6%) (11.8%) (10.5%) Services Health and Community Retail trade Barker LGA Manufacturing

15 fishing 14,276 (1,050) (1,017) (86.4%) (12.1%) (11.7%) Retail trade Agriculture, forestry and Bridge LGA (956) (11.0%) Manufacturing (7.4%) Health and community (76) (6.9%) Retail trade services (81) (143) (13.0%) Manufacturing

5000_3_SEIA_v3.doc/September 21, 2007

Social and Economic Impact Assessment Services $300-$399 $300-$399 $200-$299 $300-$399 Health and Community Retail trade 570 (17.7%) 194 (12.4%) 2,495 (15.1%) 2,883 (12.6%) (160) (6.3%) (215) (8.5%) (200) (7.9%) 2,767 (86.0%) 1,337 (85.2%) 3,067 (95.3%) 1,513 (96.4%) 7,444 (45.0%) Manufacturing 72 and 373 436 (38) $499 $400- Retail (7.0%) (7.9%) (83.1%) (97.1%) (16.0%) (11.1%) services Property business trade (27) Trade (24) Wholesale Services Nairne Oakbank Strathalbyn Woodside Murray Business Retail trade (137) (6.7%) (194) (9.5%) Property and (203) (10.0%) 2,265 (81.4%) 2,628 (94.5%) Manufacturing kets (%). (44.4) 11,233 11,864 Bridge Murray (86.3%) (91.1%) Agriculture, Retail trade Forestry and Fishing (473) (888) (83.4%) (797) (74.8%) Manufacturing Barker Services Health and Community Retail trade (436) (6.3%) (658) (9.6%) (556) (8.1%) Manufacturing eld Mount acclesfi (38) (6.5%) (47) (8.0%) Retail Trade 618 (79.9%) 7,629 (83.3%) 737 (95.3%) 8,587 (93.8%) 101 (13.1%) 977 (10.7%) 1,952 (15.0%) 289 (10.4%) (59) (10.1%) Construction Manufacturing Table 3 Key demographic indicators for local towns* 319 and 1,444 1,683 Retail (9.5%) (78.7%) (91.7%) (17.4%) services Property Services business Health and trade (144) (79) (5.2%) (84) (5.5%) Community and 295 321 llington Hahndorf M Retail (7.3%) (87.5%) (95.3%) services Property Services business trade (17) Health and (12) (5.2%) (18) (7.8%) Community services Personal Trade (6) and other (6) (3.7%) (8) (4.9%) Wholesale (3.7%) and Retail Trade (27) (16.6%) Construction 3.8 13.0 13.8 6.1 5.0 6.0 10.6 6.1 4.8 3.9 4.7 9.8 5.5 (6.3%) 23 (2.2%) 3 (1.2%) 6 (1.8%) 46 (2.5%) 19 (2.5%) 207 (2.3%) 211 (1.6%) 71 (2.6%) 7 (1.6%) 51 (1.6%) 39 (2.5%) 695 (4.2%) 143 (0.6%) $400-$499 $300-$399 $200-$299 $300-$399 $300-$399 $300-$399 $200-$299 $300-$399 Health and community (49) (6.1%) Retail trade 863 (82.6%) 192 (78.4%) 973 (93.1%) 217(88.6%) 169 (16.2%) 6 (2.4%) 30 (8.9%) (90) (11.3%) services (50) Manufacturing

Kanmantoo Copper Project * Census information is not collated for towns with a population of less than 200 people (including Kanmantoo). Percentage of total population in brac Enesar Consulting Pty Ltd IndicatorPopulation BalhannaIndigenous origin BrukungaMedianage36323043363237323639333634 1,045 Ca Born in Australia Speaks 245English only Fully owned private 337dwelling Median weekly individual 1,835income (gross) Unemployment rate (%) 773 9,153Major employment industries 13,016(population aged 15 years and over) 2,782 433 3,218 1,569 16,532 22,863 Kanmantoo Copper Project Social and Economic Impact Assessment

with Callington having the youngest population (30 years), and Hahndorf the oldest (43 years) (see Table 3). Community members believe this reflects the movement of young families and retirees to the region (pers. com., interviews, 2007).

2.1.3 Ethnicity People in the study area are predominantly Australian born, ranging from 78% in Brukunga to 88% in Callington. Similarly, the majority of residents speak English, ranging from 88% in Callington to 97% in Oakbank (see Table 3). Immigrants are most commonly from the United Kingdom.

The Indigenous population in local towns ranges between 1.2% and 2.5% (see Table 3), which is comparable to Australia and the rest of the state (2.4% and 1.7% respectively). Indigenous residents in Mount Barker and Murray Bridge LGAs contribute between 0.6% and 4.2% of the total population respectively.

2.1.4 Education The highest level of education achieved in towns within the study area is typically lower than Australia and the rest of the state. A minimum Year 12 education was achieved by between 18.0% and 31.6% of people in local and peripheral communities, compared to 27.0% and 37.7% in South Australia and Australia respectively. In 2001, no residents in Callington held a bachelor degree. Peripheral towns recorded between 2% and 7% compared with 9.7% and 6.5% in Australia and the rest of the state respectively (Table 4).

Table 4 Education level in local towns (% of total population)

Year 8 or Year 12 or Bachelor Local Town Certificate Not Applicable Below Equivalent Degree Balhanna 5 27 6 14 40 Brukunga 10 18 0 13 44 Callington 4 18 2 12 45 Hahndorf931814 42 Macclesfield 3 27 7 14 39 Mount Barker 6.3 25.5 5.2 13.2 43.8 Murray Bridge 14 15.6 2.3 10.6 53.1 Nairne 3.6 25 5 15.3 41.9 Oakbank 4 31.6 6.7 12.9 41.2 Strathalbyn 10.6 20.2 4.4 12.8 48.1 Woodside 6.9 23.8 4.5 15.1 43.9 South Australia 8.4 27 6.5 12.6 46.4 Australia 9.4 37.7 9.7 15.8 27.4 Source: ABS, 2006

2.1.5 Employment

Unemployment Unemployment levels within the study area in 2001 were frequently lower than the South Australian average of 7%. Unemployment levels varied from 3.8% in Balhanna, to 13.8% in Callington. In 2001, the Mount Barker and Murray Bridge LGAs experienced

16 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment unemployment levels of between 5,556 (5.5%) and 5,115 (9.8%) respectively (see Table 3).

Existing Employment In 2001, the predominant industries of employment within the Murray Bridge LGA were retail trade (12.1%), agriculture, forestry and fishing (11.7%) and manufacturing (11.0%). In Mount Barker LGA the predominant industries of employment were retail trade (11.8%), manufacturing (10.5%) and heath and community services (8.4%).

It is common for people living within the study area to commute to Adelaide for work. The District Council of Mount Barker suggests that 65% of Mount Barker township residents commute to Adelaide daily for work.

Table 5 Predominant industries of employment and occupations in local towns Town Predominant Industry of % Predominant Occupation % Employment Balhanna Retail 17.5 Professionals 16.1 Brukunga Personal and other 45.8 Tradespersons and related 34.1 services workers Callington Property and business 18.4 Intermediate clerical, sales, 17.2 services service, production and transport workers Hahndorf Retail 17.6 Professionals 20.2 Macclesfield Manufacturing 15.8 Tradespersons and related 17.3 workers Mount Barker Retail 16.3 Intermediate clerical, sales and 18 service workers Murray Bridge Retail 18.0 Laborers and related workers 20.1 Nairne Retail 15.4 Intermediate clerical, sales and 17.2 service workers Oakbank Property and business 16.1 Associate professionals 19.3 services Strathalbyn Manufacturing 16.1 Laborers and related workers 19.6 Woodside Retail 19.2 Tradespersons and related 16.3 workers Source: ABS, 2006

Employment Vacancies At the time of this study (mid March, 2007), the Australian Job Search website had 487 job listings (covering a range of occupations) for the South Adelaide Hills and Murraylands sub-region. Of the 487 jobs, 261 were full-time, 11 were part-time and 215 were casual (Table 6).

Table 6 Regional job listings Occupation Number Australian apprenticeships 3 Accounting, finance and management 3 Building and construction 4 Cleaning 30 Clerks, receptionists and secretaries 9

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Table 6 Regional job listings (contd) Occupation Number Computing and IT 0 Drivers and transport 4 Electrical and electronics trades 1 Engineering, science and the environment 0 Food, hospitality and tourism 21 Gardening, farming and fishing 12 Government and defense 0 Health, fitness, hair and beauty 15 Laborers, factory and machine workers 237 Marketing and sales representatives 68 Media, the arts and printing 0 Metal and engineering trades 49 Motor vehicle service and repair 6 Sales assistants and storepersons 20 Social, welfare and security 8 Teaching, childcare and library 0 Source: Australian Job Search, 2007.

Of the 67 full time jobs the largest proportion (labourer, factory and machine workers subsection) were located in Murray Bridge. The marketing and sales positions were based mainly in Mount Barker (see Figure 1) and the metal and engineering jobs restricted to Mindarie, over 100 km northwest of Murray Bridge.

2.1.6 Skill Levels The number of people in local and peripheral communities with trade certificates is comparable to South Australia and the rest of Australia, with the exception of Murray Bridge, which is higher at 10.6% (see Table 4).

Skilled people (particularly people who have mining experience) are likely to come from other parts of the region, South Australia and the rest of Australia. The close proximity of the mine to the capital is likely to provide an incentive for workers with mining experience to live in Adelaide and commute daily to the project area.

2.2 Incomes In 2001, the median weekly individual income for the local and peripheral towns was between $300 and $399 (Brukunga, Hahndorf, Macclesfield, Mount Barker, Nairne, Strathalbyn and Woodside). Callington and Murray Bridge had the lowest median individual incomes of $200 to $299. Oakbank and Balhanna recorded the highest income levels of $400 to $499 (see Table 3). These incomes are comparable to South Australia and Australia, which both have a median weekly individual income of $300 to $399.

18 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

2.3 Land Use Agriculture, including dryland and irrigated crops and sheep, is the primary land use in the Murray Bridge LGA. Livestock, horticulture and field crops comprise the primary land use in the Mount Barker LGA

Farms of varying sizes occupy land within the study area. On average, working farms within 20 km of the mine site are approximately 2,500 acres. Of this, approximately 1,500 acres (60%) is cropped and 1,000 acres (40%) is grazed by sheep (Table 7). Average gross margin is $235/ha.

Anecdotal evidence suggests that average farm sizes have decreased from working farm size (approximately 4,500 acres) to hobby farms size (between 2 and 150 acres) in the last 10 to 15 years. Only a few working farms remain in the study area (Brett Wegner, pers. com., 2007).

Agricultural productivity in the study area is estimated to be $235/ha/year on average (Brett Wegner, pers. com., 2007 and Graham Page, pers. com., 2007).

Table 7 Typical crops Crop % of Total Farm Acres Gross Margins per Ha Wheat 25.2 630.0 300 Barley 16.8 420.0 300 Field pea 7.5 187.5 200 Canola 7.5 187.5 300 Bean 1.5 37.5 200 Lupins 1.5 37.5 200 Sheep 40 1,000 150 Total 100 2,500 1,650

2.3.1 Council Zoning Land within Mount Barker and Murray Bridge LGAs is predominantly zoned as rural. Approximately 493 ha and 2,359 ha is zoned as industrial and residential respectively (Table 8).

Both councils indicated during interviews that planning scheme amendments to zone more land as industrial land are currently being considered (Greg Sarre, pers. com., 2007 and Michael Walmesley, pers. com., 2007).

Table 8 Planning schemes of Local Government Areas within the study area LGA Land Development Zones Ha Mount Barker Commercial 162 Residential 1,288 Recreation 216 Rural 35,976 Rural living 911 Industrial 165 Community facilities 116

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Table 8 Planning schemes of Local Government Areas within the study area (contd) LGA Land Development Zones Ha Mount Barker (contd) Deferred urban 171 Historic residential 148 Watershed protection 20,232 Murray Bridge Commercial 247 Residential 1,071 Recreation 143 Rural 149,775 Rural living 1,221 Industrial 328 Deferred urban 551 Special use 1,014 Country township 183 Flood zone 28,023 Mixed uses 255 Source: Planning SA, 2007

Local Area Land in Kanmantoo and Callington is predominantly zoned as residential and rural living respectively (Table 9). In Kanmantoo, the large proportion of land zoned as residential is a result of recent planning scheme amendments that allowed land to be rezoned and subdivided. However, no further subdivision of land within either township is permitted.

Table 9 Planning schemes of Callington and Kanmantoo Town Land Development Zones Ha Kanmantoo Commercial 3.4 Residential 72.5 Callington Commercial 2.4 Country Township 13.8 Industry 18.6 Residential 29.8 Rural Living 38.9

2.3.2 Undeveloped Land Between 1,500 and 1,700 undeveloped residential allotments are estimated to be available are in greater Mount Barker, Littlehampton and Nairne (Greg Sarre, pers. com., 2007).

Approximately 28% (20.5 ha) of land in Kanmantoo zoned as residential is not developed. Most land in Callington zoned as residential is already developed. It is estimated that approximately 55 and 65 undeveloped residential allotments are available in Callington and Kanmantoo respectively (Greg Sarre, pers. com., 2007).

Land zoned as rural living within the District Council of Mount Barker (911 ha) can be subdivided to no less than 1,500 m2. Land zoned as rural living within the Rural City of

20 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

Murray Bridge can be subdivided to no less than 10,000m2, effectively capping the number of subdivisions allowed by both councils.

2.4 Economy Agriculture and horticulture are currently the predominant industries in the Murray Bridge and Mount Barker LGAs. Agricultural production contributed $496.8 million to the Murraylands region in 2001/02 (Murraylands Regional Profile, date unknown). In 2002/03 food production (excluding wine) contributed $413 million to the Adelaide Hills gross food revenue (Adelaide Hills Regional Profile, 2005).

Other industries within the Murray Bridge LGA include:

• Manufacturing and wholesale trade: – Retail trade. – Tourism. – Transport. – Food processing. – Communication services (infrastructure components).

• Emerging industries include: – Distribution and warehousing.

– Transport. This emerging industry is linked to the focus on warehousing and distribution of wholesale goods.

– Value-adding industries.

– Manufacturing.

– Environmental management (particularly water resource management which under-pins many other state-wide business activities, particularly tourism).

Other industries within the Mount Barker LGA include:

• Wine. • Tourism. • Retail. • Manufacturing. • Seafood processing3 At present, mining is not recognised as a significant industry by the Murraylands or Adelaide Hills Regional Development Boards. However, mining has been cited as a significant growth industry by both boards (based on employment numbers within a single industry).

3 It is likely that seafood revenue would be derived mainly from processing as the region borders no major lake or sea bodies.

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2.4.1 Future Major Developments A new prison is planned for a site adjacent to the existing Mobilong Prison near Murray Bridge. This will include:

• A $315 million, 760-cell mens prison (up from 341 cells at Yatala). • A $96 million, 150-cell womens prison (up from 92 cells).

Work is expected to commence in 2008 to 2009. The prison is expected to be fully operational by 2011 to 2012 (SA Government, 2006).

Terramins Angas zinc project is located 2 km outside Strathalbyn, approximately 60 km southeast of Adelaide. The Angas project is likely to employ approximately 70 people fulltime. The mine has a life of approximately seven years and an annual operating budget of $29 million (Terramin, 2007).

2.5 Accommodation Of the occupied dwellings in the study area, between 8% (Brukunga) and 45% (Hahndorf) are fully owned, between 24% (Murray Bridge) and 55% (Callington) are being purchased and between 11% (Callington) and 36% (Brukunga) are being rented (Figure 4).

2.5.1 Availability In March 2007, over 600 properties were for sale in the study area, with property prices ranging from $100,000 to $1,000,000 (Table 10). The greatest number of houses were available in the town of Murray Bridge (200 plus), with 18 being available in the local area (comprising Callington and Kanmantoo). The most affordable housing (between $100,000 and $289,000) was available in Callington and Kanmantoo.

Numerous properties are for sale in Adelaide. The median house price in Adelaide in May 2007 was $300,000.

The perception from community members and real estate agents interviewed is that there is low housing availability within the study area.

Table 10 Properties for sale within the study area Town Houses for Sale Price Range

Flaxley 1 $850,000 Langhorne Creek 1 $320,000 Rockleigh 1 $332,000 Woodchester 1 $243,000 Harrogate 2 $239,500 to high $200,000 Monarto 2 $299,000 to $315,000 Wistow 5 $310,00 to $775,000 Oakbank 6 $289,000 to $1,100,000 plus Callington 9 High $100,000 to $289,000 Kanmantoo 9 $191,000 to $445,000 Echunga 12 $220,000 to high $800,000

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Table 10 Properties for sale within the study area (contd) Town Houses for Sale Price Range

Ballhannah 12 High $200,000 to $1,000,000 plus Macclesfield 15 $200,00 to $1,400,000 Littlehampton 23 $220,00 to mid $660,000 Hahndorf 24 $30,000 to $1,000,000 Woodside 24 $200,000 to high $700,000 Nairne 54 $189,000 to low $400,000 Strathalbyn 100 $162,500 to $579,000 Mount Barker 107 $150,000 to $1,100,000 plus Murray Bridge 200 plus $119,500 to $338,000 Total 600 plus Source: www.realestate.com.au, 2007

2.5.2 Property Value

Residential Property values in the towns of Murray Bridge and Mount Barker increased between December 2005 and 2006. Despite this, residential properties in the study area are perceived as affordable compared to Adelaide. Property prices in Callington rose by 13% on average between 1993 and 2006; however, it should be noted that on average only 9 properties were sold each year, reducing the reliability of the data (Georgia Gowing, pers. com., 2007). Annual growth rates in Kanmantoo were significantly lower (7.6%) compared to other towns (Table 11).

Table 11 Sales and overall growth rate (1993 to 2006)* Town Overall Growth Rate Overall Growth Rate Average Number of (median sale price) (average sale price) Sales (per annum) Callington 206.39% 214.54% 9 Kanmantoo 100.00% 37.82% 10 Nairne 171.23% 141.97% 92 Mount Barker 166.03% 163.52% 218 Strathalbyn 184.21% 135.46% 108 Murray Bridge 173.57% 151.02% 241 Source: Real Estate Institute of South Australia * Only towns with comparable data are included in this table.

Rural Rural property prices in the study area have similarly increased in recent years from approximately $1,500/acre to $2,000/acre. This marked increase in land prices is attributed to improved access to the Adelaide Hills, which has induced a demand for hobby or lifestyle properties (see Section 2.3). Rural property values in peripheral communities are expected to continue to rise as demand for hobby farms increases (Colin Wegner, pers. com., 2007).

23 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Nairne, 5.3 km2 Balhannah, 2.8 km2

Brukunga, 1.7 km2 Callington, 1.7 km2

Hahndorf, 3.3 km2 Macclesfield, 3 km2

Fully owned Being purchased Being purchased under a rent/buy scheme Rented total Other tenure type Not stated

Mount Barker, 15.1 km2 Murray Bridge, 44.5 km2

Oakbank, 1.8 km2 Woodside, 3.7 km2

Job No: Figure No: 5000 Hillgrove Resources Ltd File No: Property tenure within the study area 4 5000_03_F004_FT Kanmantoo Copper Project Kanmantoo Copper Project Social and Economic Impact Assessment

Table 12 Rural property prices (Callington and surrounds) Town Acres Price ($) $/acre Dawsley 2 289,000 144,500 Dawsley 50 340,000 6,800 Monarto 73 149,000 2,041 Dawsley 90 365,000 4,055 Dawsley 93 550,000 5,913 Monarto 120 219,000 1,825 Monarto 138 229,000 1,659 Kanmantoo 295 550,000 1,864 Callington 358 350,000 977 Source: www.realestate.com.au, 2007

2.5.3 Temporary Accommodation In March 2007, 69 properties were listed on www.realestate.com.au for rent in eight towns within the study area (Table 13). In March 2007, Raine and Horne Real Estate based in Murray Bridge had three rental properties available in Murray Bridge. Raine and Horne Real Estate based in Hahndorf had no rental properties available. Real Estate Institute of South Australia President Mark Sanderson says There is nothing available for rent in the Adelaide Hills at all (RP Data, 2006). This is likely to be a result of the extremely low vacancy rate in Adelaide, which is currently less than 1% (Real Estate Institute of SA, 2007).

Table 13 Properties for rent within the study area Town Houses for Rent Price Range (per week) Callington 1 $195 Woodside 1 $350 Echunga 2 $240 to $260 Hahndorf 3 $255 to $350 Littlehampton 5 $220 to $295 Mount Barker 12 $185 to $295 Strathalbyn 13 $165 to $270 Murray Bridge 32 $100 to $250 Total 69 Source: www.realestate.com.au, 2007

Hotels, Motels and Caravan Parks Temporary accommodation within the project area consists of hotels, motels and caravan parks (Plate 16). Temporary accommodation increases with population size, with Murray Bridge having the largest availability of accommodation. Vacancy rates vary considerably and are dependant on tourism and special events or other construction activities. Construction of the new prison precinct is likely to occupy a large proportion of available temporary accommodation (Murray Bridge hotel owner (anon), pers. com., 2007).

In March 2007, no accommodation was available in Hahndorf due to filming of a documentary in Callington.

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2.6 Community Services and Facilities The towns of Murray Bridge and Mount Barker are the main service centres for the study area and provide a range of general and community services and facilities including:

• Hospitals. • Education facilities. • Nursing homes. • Shopping centres. • Sporting facilities. • Entertainment centres. • Community centres.

2.6.1 Health Care Providers Towns within the study area are serviced by one private hospital (Stirling District Hospital Incorporated) and four public hospitals: Mount Barker District Soldiers Memorial Hospital, Gumeracha District Soldiers' Memorial Hospital, Strathalbyn and District Soldiers Memorial Hospital and Murray Bridge Soldiers' Memorial Hospital.

Public hospitals provide 219 beds (of which at least 98 are designated for aged care) and the following services:

• 24-hour accident and emergency. • Inpatient and outpatient. • Acute medical. • Aged care (including a respite service). • Primary health care. • Clinical services, including: – General medicine. – Rehabilitation. • Surgical services, including: – Obstetrics. – Paediatrics. – Orthopaedics. – Gynaecology. – Ear, nose and throat. – Plastics. – Urology. – Dental. – General and day. • Palliative care. • Medical imaging. • Gynaecology. • Home dialysis

A Sleep Studies Clinic is provided at Strathalbyn and District Health Service.

26 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Plate 16 Temporary accommodation available in the study area

Plate 17 Opening of the environmental complex (a HRL sponsored event), Callington Primary School, March 2007

Plate 18 The Callington football oval, showing HRL sponsorship

5000_02_P016-P018_FT Kanmantoo Copper Project Social and Economic Impact Assessment

General practitioners from affiliated public clinics in Woodside, Strathalbyn and Mount Barker and one in Murray Bridge service the hospitals. Emergency care is provided by helicopter and road ambulance services. For specialist care, hospitals refer patients to Adelaide. All other medical clinics are privately run.

Mount Barker has a relatively high number of general practitioners per capita (1:1,000- 1,200 (depending on patient load)) compared to the rest of Australia (1:1,500). Data for Murray Bridge is unavailable at present but is likely to be similar.

2.6.2 Educational Facilities A number of educational facilities from primary to secondary level are located within the study area (Table 14). Secondary schools are located in Mount Barker, Murray Bridge and Strathalbyn. Public primary schools located in Langhorne Creek, Callington, Echunga, Macclesfield, Littlehampton, Hahndorf, Woodside, Nairne, Strathalbyn (two schools), Mount Barker (two schools) and Murray Bridge (three schools).

Table 14 Educational facilities within the vicinity of the study area Facility Type Education Region Hills Murraylands Southern Sea and Vines Aboriginal/Anangu schools 1 0 Child care centres 14 22 Early learning programs 1 3 Family day care schemes 3 4 Integrated centres 0 5 Occasional care 5 4 Out of school hours care 21 26 Playcentres 1 2 Preschools 25 23 Primary education 28 32 Primary/Secondary combined 5 11 Rural care program 1 0 Secondary education 3 3 Special education 1 1 Specialist facilities 4 4 Support services 1 1

Nine private schools and two catholic schools are located within the study area in Mount Barker, Murray Bridge, Strathalbyn, Belair and Hahndorf.

Tertiary education is provided to TAFE level at more than ten locations within a one hour drive of the study area (TafeSA, 2007).

Three universities service the study area: The University of Adelaide, which has three campuses (one in central Adelaide, two in the foothills of the Adelaide hills), the University of South Australia, which has four campuses (two in central Adelaide, two

28 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment within 20 km of central Adelaide) and Flinders University of South Australia. The closest university campus to the study area is located approximately 19 km southwest of Adelaide (a one-hour drive from the centre of the study area). The Flinders University Rural Clinical School is located in Goolwa, approximately 25 km south of the study area.

School Buses There are numerous bus routes within the study area. Two companies operate school bus services along routes to be used by Hillgrove during construction and operation of the mine (Figure F005).

2.6.3 Police and Emergency Services Local and peripheral towns are serviced by police, air and road ambulance, fire brigade and State Emergency Service (SES).

2.7 Existing Infrastructure

2.7.1 Roads A number of minor and secondary roads and one federal freeway transect the study area. The , linking Adelaide to Melbourne was built in the late 1970s. The freeway bypassed many towns within the study area that were previously along the Princes Highway including:

• Murray Bridge. • Monarto. • Callington. • Kanmantoo. • Nairne. • Littlehampton. • Mount Barker. • Hahndorf. • Verdun. • Bridgewater. • Aldgate. • Stirling. • Crafers.

In 2000, the upgrade to the South Eastern Freeway was completed, which involved the construction of the Heyson Tunnels making the trip between Murray Bridge (including Mount Barker) and Adelaide safer and faster (MG, 2001). This has improved access to Adelaide for residents of towns such as Callington and Kanmantoo (Callington resident (anon), pers. com., 2007).

In recent years, the Murray Bridge bypass and the Monarto and Swanport interchanges have been constructed. A Callington resident cited construction of the Monarto interchange as a significant determinant of reduced traffic on East Terrace in Callington (Callington resident (anon), pers. com., 2007).

29 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 305 000 310 000 315 000 320 000 325 000 330 000 335 000 340 000 345 000 6 120 000 6 120 000 Nairne

Old Princes Highway Kanmantoo Mount Barker Monarto 6 115 000 6 115 6 115 000 6 115 Balyarta

Old Princes Highway Kinchina Site access road South Eastern Freeway Mobilong Prison Wistow St Ives Philcox Hill Monarto South

South Eastern Freeway Princes Hi ghway 6 110 000 6 110 6 110 000 6 110 nces Highway Red Creek Pri

East Terrace Braendler Scrub Callington Jervoi South Eastern Fre Bugle Ranges

eway s Road Hartley 6 105 000 6 105 000

LEGEND Brinkley Project area Bletchley Dalveen Road Project layout Site access road Bus RouteHaul route Murray Bridge to Mount Barker school bus route Murray Bridge to Strathalbyn school bus route 6 100 000 6 100 000 Nairne to Callington school bus route N

04km Road Scale 1:175,000 Track Projection: GDA94 MGA Zone 54

305 000 310 000 315 000 320 000 325 000 330 000 335 000 340 000 345 000

Date: Figure No: 19.03.07

MXD: Hillgrove Resources Ltd HillgroveResources_KanmantooGIS Bus routes, site access road and haul 5road Source: Roads is GEODATA 250K Job No: Kanmantoo Copper Project 5000_03_F005_GIS_AI Kanmantoo Copper Project Social and Economic Impact Assessment

2.7.2 Rail The Melbourne to Adelaide Railway line runs east to west along the southern boundary of the project area, before crossing Back Callington Road and turning south.

2.7.3 Communications Mobile coverage is available throughout the study area at varying degrees of reliability. Marginal Telstra and Optus mobile coverage is available in both Kanmantoo and Callington. In-vehicle mobiles generally gain better coverage than hand-held mobiles (www.telstra.com). Broadband internet is not currently available in Kanmantoo or Callington.

2.7.4 Power and Water Supplies Power is supplied to the project area by Electronet via a system of above-ground powercables. Water is supplied to the project area by SA Waters Murray Bridge to Onkaparinga pipeline

2.8 Community Attitude Community members interviewed displayed a generally positive attitude toward their respective communities. Some have strong ties to the local area and community through work, sporting and other recreational activities and children growing up in the area. All community members interviewed believe that towns within the study area are changing rapidly and would continue to grow in the future. The relaxed and quiet lifestyle was most commonly cited as the best aspect of living in the study area. Mount Barker is the most popular town for shopping and various recreational and social activities.

A negative aspect about living in the local area included the regions lack of facilities and available housing.

Most community members interviewed had a positive attitude toward Hillgrove. Support/sponsorship of local sporting teams was the most commonly cited positive aspect of Hillgroves involvement in the community. Most community members felt informed about the project through newsletters and the Callington – Kanmantoo Community Consultation Forum. Others knew very little about the project and had no opinion.

Scepticism about the Community Consultation Forum and individual stakeholder consultation with impacted landholders was expressed by some community members. Of the 24 community members informally interviewed, two felt that the Community Consultation Forum only heard what it wanted to hear and were reserving judgement abort the adequacy and effectiveness of the Community Consultation Forum until issues arose and the consultative process was put to the test. Two impacted landholders felt that stakeholder consultation undertaken so far had been inadequate and was window dressing for public relations purposes.

No opinions relating to the K/CCCC (formed in December 2006) were expressed by community members interviewed.

The majority of community members interviewed were concerned about traffic impacts associated with the project. Two Kanmantoo residents expressed concern about

31 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment potential environmental impacts, particularly those on existing vegetation and revegetated areas. Most were aware of contamination issues relating to the Brukunga mine and some expressed concern about contamination of groundwater at Kanmantoo. Most community members believed that the project would increase employment but did not want the town to become overcrowded.

32 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 3. Project Socio-economic Details

3.1 Economics In July 2007, Hillgrove commissioned Economic Research Consultants to provide an evaluation of the potential magnitude of economic benefits, focusing on the outcomes from a regional and South Australian perspective (Appendix 3). Economic benefits provided in this report are based on the following assumptions (Hillgrove, pers. com., 2007):

• Total investment expenditure (e.g., project expenditure and investment in additional infrastructure). Approximately $140 million over 8 years.

• Total, unescalated revenues (note these do not take into account cost of production etc). Approximately $650 million.

• Annual operating expenditure. Approximately $55 million.

• Annual Government royalties. Approximately $1.3 million for first five years then approximately $3.5 million ($14.4 million in total or 1.8 million per year on average over the life of the mine).

• Annual salaries for Hillgrove staff and contractors. Salaries for Hillgrove staff approximately $4.8 million per annum (excluding on-costs) and for contractors approximately $7.0 million.

• Direct employment of up to about 150 people during operations (approximately 50 Hillgrove staff and 100 mining contractors).

Hillgrove predicts 80% of the management expenditure, 30% of mine construction expenditure, 10% of business services expenditure and 100% of electricity expenditure will be spent in the outer Adelaide region (covering the and District Council of Mount Barker LGA). Remaining amounts will be spend in the rest of the state, other parts of Australia and overseas (see Table 2 of Appendix 3).

3.2 Economic and Employment Multipliers The Minerals Council of Australia estimates that, for every job created in the South Australian mining industry, three jobs are created elsewhere within the economy as a result of the initial increase in demand for goods and services (SACOME, 2006).

REMPLAN (Regional Economic Modelling and Planning System) is a model built by La Trobe University and used to assess direct and flow-on implications across industry sectors in terms of employment, wages and salaries, output and Gross Regional Product for a region.

REMPLAN estimates that for every job created as result of the Kanmantoo Copper project, the potential exists within the Murraylands region for 2.2 additional jobs to be created (ERU, 2006).

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3.3 Construction and Operations Workforce The workforce will comprise:

• Construction contractors. • Operations contractors. • Permanent operations staff (Hillgrove employees).

3.3.1 Construction Workforce Hillgrove will appoint a construction contractor to undertake construction of the project, expected to last approximately 12 months. The construction workforce is estimated to be approximately 150 people. It is likely that the construction workforce will operate on a 12- hour shift roster from 7 a.m. until 7 p.m. on a one week on, one week off basis.

3.3.2 Operations Workforce The operations workforce is likely to comprise approximately 150 people including approximately 65 Hillgrove staff (mine manager, mine engineer, geologist and, health and safety manager etc) and 85 mining and transport contractors (licensed truck, front- end loader, excavator, haul trucks, drill rig and bulldozer drivers, people with electrical, construction and/or mechanical servicing trade certificates and cleaners, couriers and maintenance staff).

The majority of the operations workforce (mine and transport workers) is likely to operate on a 4 days on, 4 days off roster, based on 11- to 12-hour shifts, 24 hours a day, 7 days a week. Technical staff and managers are likely to work from 7.00 a.m. to 5.00 p.m., Monday to Friday (depending on individual job requirements).

3.3.3 Recruitment and Training Policies The construction contractor will be encouraged to employ people from local and peripheral towns where possible; however, this will not be a condition of contract and given the current skills shortage in the region (Adelaide Hills Regional Development Board, 2006) it is likely that 80% of the construction workforce will be sourced from Adelaide and places outside the study area.

During the operations phase, employees will be sourced locally where possible. Hillgrove has no formal employment policy but a high proportion of operations contractors e.g., truck drivers and plant operators, are likely to be sourced from the study area and trained on the job if necessary. Hillgrove staff, such as supervisors/trainers, heavy machinery fitters and geologists will be sourced locally if these skills are available.

The proportion of staff that is likely to be sourced from existing resources within the study area (excluding Adelaide) is approximately 20%. Remaining resources are likely to be sourced from Adelaide, which is located within easy commuting distance from the project area) (see Section 2.1) and other parts of South Australia, Australia and overseas (if necessary).

Ongoing coordination with the Adelaide Hills and Murraylands Regional Development Boards will maximise opportunities for employment of people from local and peripheral communities.

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3.4 Accommodation and Transport Arrangements During construction and operations, contractors and Hillgrove employees will arrange their own accommodation through purchase, rent of properties or temporary accommodation such as motels and caravan parks. Workers who are unable to find suitable accommodation or choose not to live in smaller towns within the study area are likely to find accommodation in Adelaide.

Employees will access the mine site by car via the network of minor, local and secondary roads and the South Eastern Freeway. The mine site cannot be accessed via public transport. As a large number of workers may commute daily from Adelaide, Hillgrove may consider providing a courtesy bus to run between the project area and a central Adelaide location.

3.5 Infrastructure

3.5.1 Water Water will be required for the project for potable water purposes (approximately 5.5 ML/annum) and raw water (approximately 520 ML/annum) for processing. All processes and facilities on site have been designed to ensure maximum recovery and re-use of water. Water conservation will receive strong emphasis throughout the life of the operation.

3.5.2 Electricity Power for this project will be sourced from the existing Kanmantoo 132-kV substation. The average electrical power load during operations is estimated to be 5.6 MW, with the total annual energy consumption estimated to be about 5,122 kWh. The new power infrastructure to be built (i.e., a transmission line extension of the existing 132-kV line into the site, and a switchyard to convert the 132 kV to 11 kV) will be of sufficient capacity to support the mines power requirements. Negotiations with the power supplier (Electronet) are currently underway.

3.5.3 Road The proposed haul route for concentrate between the mine and the South Eastern Freeway will involve construction of a private access road, commencing opposite the mine access gate on Mine Road and traversing in a northeasterly direction to link up with the Princes Highway north of Callington, a distance of approximately 2.7 km. This road will be available for mine traffic only (including heavy vehicles), and will create a traffic bypass around Kanmantoo.

Approximately 19 haul trips and numerous other trips will be made by mine vehicles (haul trucks, delivery trucks, cars and mini buses) per day. Mine Road is currently utilised by Neutrog Fertilisers, which makes between 1 and 10 haul trips per day (between 2 and 20 journeys), using trucks of varying sizes, depending on demand and season (Brian Ambrose, pers. com., 2007).

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3.5.4 Rail Rail transport has been considered as an option for freighting the concentrate from the project area to Port Adelaide. However, as additional infrastructure and equipment would be required, an initial economic analysis has indicated this is unlikely to be a viable option (Roche, 2006).

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4. Potential Economic Impacts

The key source of benefits arising from the project will be derived from economic activity generated through the discovery, mining and processing of the raw material, which, if not for the project, is unlikely to be extracted in the foreseeable future (Appendix 3).

Economic benefits will result from the project through:

• Population growth.

• Diversification of the current industrial and economic base of the region.

• Employment.

• Purchase of goods and services (economic multipliers) in both local and peripheral communities.

• Increased opportunity cost of mining compared to agricultural production.

• Tourism.

While the project will have a significant impact at a national and state level, in relative terms, the project will impact on regional, peripheral and local communities to a greater extent.

4.1 National, State and Regional Economic Impacts

4.1.1 National and State Economic Impacts Potential (and substantial) economic benefits to state and national economies may result from:

• Direct financial contributions through the payment of taxes and royalties.

• A direct contribution to the gross state product (GSP4) of approximately $0.3 billion (in present value terms) over a 9 year period (one year of construction investment and eight years of operation (calculated at 2007 prices) (Appendix 3).

• Indirect financial contributions through the payment of taxes by people employed directly and indirectly, and also by companies that service the project directly or indirectly.

4 Hillgrove Copper Project GSP includes annual capital investment, annual operating expenditure, annual government royalties and annual salaries for Hillgrove staff and contractors.

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• Decreased unemployment levels. State-wide, the project will create in excess of 1,500 jobs in 2007 and 2008 (the main year of construction) and 400 to 500 annual jobs during operations (Appendix 3).

At a regional level positive economic impacts will be derived from employment, local investment and purchases of goods and services. On a regional basis, around 331 indirect jobs will be created during operations (using an employment multiplier of 2.2 (i.e., for every directly employed person, an additional 2.2 people will be indirectly employed) to calculate the flow-on effects in terms of employment in other business and services.

Economic Research Consultants predict increased incomes for regional communities, including local and peripheral communities of approximately $20 million per annum. These outcomes could be greater if more regionally based industry is encouraged to take advantage of the opportunities presented. This would involve building deeper regionally based supply chains and would require leadership by a regionally based group such as the Adelaide Hills Regional Development Board, which would compliment the work of the Industry Capability Network SA. Provided this is done, the project has the potential to generate an additional $18 million in the region and an additional 20 jobs per annum on average (Appendix 3).

The current industrial and economic base of the region will diversify as a result of the project. This is consistent with South Australia's Strategic Plan that was launched in 2004 to ensure the ongoing prosperity of the state. The Strategic Plan has goals in six areas, with a number of targets that are reported against every two years. Development of the project will assist in the achievement of these targets, e.g., reducing the unemployment rate, increasing South Australia's population and increasing expenditure in mining exploration.

Successful development of the project will improve the chance of other mines and related infrastructure developing in the region. This is consistent with the Strategic Management Plan for the Rural City of Murray Bridge (2005) and Adelaide Hills Regional Development Plan (2006), namely, the need to provide infrastructure to facilitate urban growth.

It should be noted that negative impacts in terms of supply side effects, in that there is a limited supply of labour and capital to draw on, along with macroeconomic constraints (exchange rate) have the potential to reduce the economic benefits described above to some extent (Appendix 3).

4.1.2 Local and Peripheral Economic Impacts Economic benefits will be experienced at the local and peripheral community level.

Local communities, i.e., the residents of Callington and Kanmantoo will receive indirect benefits through population growth, corporate support of sporting teams and spending to some extent in local businesses. Peripheral communities will experience economic benefits associated with population growth and direct and indirect employment of residents.

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The magnitude of the benefits will vary depending on the community concerned, with those communities that house mine employees likely to benefit most.

The proposed mine and associated infrastructure will directly affect the production capacity of one property (approximately 253 ha). Removing one property from agricultural production will reduce the economic benefits derived from agriculture for the local community.

Agricultural productivity in the study area is estimated to be $235/ha/year on average (Brett Wegner, pers. com., 2007 and Graham Page, pers. com., 2007) (see Table 7). Based on this figure, the total lost opportunity cost of agricultural production is estimated to be $59,635. Over the life of the mine, total loss in agricultural production from cropping and grazing is estimated to be $477,085.

Provisions of the Mining Act 1971 protect landholders within the mining licence area from adverse economic impacts. Compensation for impacted surrounding landholders is subject to negotiation, but existing landholders are likely to be suitably compensated, reducing the overall impact of reduced agricultural production.

4.2 Employment The economic multiplier effect (otherwise known as the spending/income multiplier flow- on effect) occurs when a direct change in economic activity causes a flow-on which is disproportionate to the demand for goods and services (i.e., spending occurs in other sectors).

Multipliers used to measure impacts on a state-wide basis are derived from the RISE model (Appendix 3) and estimate the project will create in excess of 1,400 jobs in the construction phase and around 400 to 400 annual jobs during construction.

Regionally, based on estimates provided by REMPLAN, 150 initial and 330 flow-on jobs could be created (see Section 3.2). Of these, the greatest potential exists within the following industries:

• Manufacturing (23 jobs). • Wholesale trade (34 jobs). • Retail trade (104 jobs). • Transport (21 jobs). • Property and business services (18 jobs). • Health and community services (18 jobs).

Sourcing labour from within the existing, local labour market will increase local employment opportunities and may provide incentives for more skilled workers to move to the area, for skilled workers who have left the area to return and for people that currently commute out of the area (believed to be 65% of Mount Barker township residents) to reduce commuting times by working in the study area. This type of structural adaptation in the workforce is common to the entry of any new industry into an area and is likely to create opportunities for both the existing and future workforce.

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An increased number and variety of employment opportunities will benefit communities at local, peripheral, state and even national levels. However, the size of this effect is such that it is likely to be imperceptible at state and national levels.

Job opportunities are increasing elsewhere in the region as a result of other developments (e.g., Terramin's Angus zinc mine, Mobilong prison redevelopment (see Section 2.4.1)) and skills shortages are already apparent, which will lessen the positive effects of increased employment opportunities for peripheral communities.

Benefits for the local community will be determined by the employability of people living in Callington and Kanmantoo.

4.2.1 Retail Sales The population increase during construction and operations will provide a slightly larger customer base for local hotels, bakeries, cafes, supermarkets and retail shops.

The growth in population associated with the mine and the operational expenditure by the mine will result in more spending and an economic boost to local communities through increased retail sales. Without knowing where mine employees will live, it is not possible to quantify the extent to which each town will benefit at this stage. However based on existing trends, it is likely that mine employees living outside Adelaide will purchase most goods from Mount Barker and Murray Bridge and to a lesser extent Nairne and smaller towns in which they live.

Hillgrove will become a customer for local businesses in Mount Barker and Murray Bridge. Hillgrove is already purchased vehicles from a car dealership in Woodside and mine vehicles are serviced within peripheral communities. Wherever possible, large items such as cars and good and services will continue to be purchased from within the study area. Hillgrove are encouraged to hold supplier briefings so that businesses in local and peripheral communities can diversify to accommodate the needs of the mine. Provision of services to the mine by suppliers in local and peripheral communities have the potential to increase employment and income in those communities by approximately 10% (i.e., from approximately $230 million to $250 million in local expenditure) (Appendix 3).

RMIT University and project partners (Beattie et. al., 2005) reported that local business owners and service providers in Hamilton and Balmoral experienced an increased demand for services and products as a result of Iluka's Douglas mineral sand mine and separation plant.

Local retailers have indicated that they have the capacity to cater for and would welcome more sales. However, local businesses will not supply specialist mining equipment to the mine. The capacity for peripheral communities to supply these products is unknown.

4.2.2 Tourism Impacts on aesthetic, cultural and recreational values, significant locations and vantage points in the region will be investigated as part of the Visual and Landscape Characterisation and Assessment undertaken by Wax Design (2007).

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Adverse impacts on tourism are not expected as Kanmantoo and Callington are largely already perceived as mining towns. Hillgrove intend to provide interpretive facilities and a viewing platform. This is expected to generate tourism interest in the operating mine (Mount Barker and Hahndorf Tourist Information Centre (anon), pers. com., 2007).

Tourism providers in Hahndorf and residents and retailers interviewed in local and peripheral communities were not concerned that the clean and green perception of local and peripheral communities would be impacted by the mine (Mount Barker and Hahndorf Tourist Information Centre (anon), pers. com., 2007)

Business owners interviewed did not anticipate any downfall in tourism numbers and generally believed that if this did occur increased patronage by mine staff and their families would make up for any potential losses.

Plans to revegetate and change the shape of the existing waste rock dump at the mine to minimise visual intrusion as viewed from the South Eastern Freeway between Callington and Mount Barker (Marty Adams, pers. com., 2007), has the potential to improve visual amenity for tourists and the local community.

4.2.3 Residential Housing Prices External factors such as the cost of housing in capital cities and the close proximity of the study area to a capital city (i.e., Adelaide) are likely to be the dominant influences on land values in local and peripheral communities (Beattie et. al., 2005).

Residential housing prices in local and peripheral towns are already increasing (see Table 11). Information obtained from several real estate agents operating in the study area suggests that a slight spike in housing prices may coincide with an announcement about commencement of the mine, but overall the influence of the mine on residential housing prices would be minimal (Gavin Clarke, pers. com., 2007 and Raine and Horne (anon), pers. com., 2007).

4.2.4 Rural Property Prices Since 1997, improved access to the Adelaide Hills has induced a marked increase in land prices as property buyers seek out hobby or lifestyle properties within easy commuting distance of Adelaide. Properties between 2 and 150 acres in size are seen as particularly desirable (see Table 12).

Rural property prices for land immediately adjacent to the mine have the potential to increase if Hillgrove pays premium prices for this land. Land that is not likely to be purchased by Hillgrove but is impacted by the mine through reduced amenity or air quality or increased noise could reduce in value; however, data relating to this is unavailable and the degree to which this will occur cannot be quantified (Gavin Clarke, pers. com., 2007, Raine and Horne (anon), pers. com., 2007 and Ray Snooks, pers. com., 2007).

Government mining regulations insist on operating conditions designed to protect amenity. Hillgrove has committed to a set of environmental objectives for the construction, operation, rehabilitation and closure of the project as part of its Mining Lease Proposal. Each environmental objective is accompanied by measurable criteria

41 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment that can be used by Hillgrove and others (such as external environmental auditors) to assess progress and/or compliance with each objective.

Negative impacts on rural properties prices are possible; however, provided environmental objectives are achieved, negative impacts on rural property prices will be minimal and confined to properties immediately adjacent to the mine. These properties are likely to be purchased by Hillgrove.

Feedback from residents of Kanmantoo indicates that Neutrog is a source of unpleasant odours. Stricter regulation of Nuetrog as a result of the mine (and improved amenity) would be seen as positive by local residents.

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5. Potential Social Impacts

5.1 Population Changes and Employment

5.1.1 Workforce Of a total operations workforce of approximately 150, approximately 120 staff members are likely to be sourced from outside the study area (excluding Adelaide). If they bring their families, a population increase of 240 adults and 470 children is expected (assuming an average of 1 spouse and 1.7 children). This represents a 2.2% increase in the population of the study area (defined as the total population of towns within the study area that have ABS data (excluding Adelaide)).

Based on the availability of housing, a large number of mine workers will live in Adelaide and Murray Bridge where more than 200 houses are available for purchase (see Table 10). Mine employees will also live in Mount Barker, Strathalbyn, Nairne and Woodside and, to a lesser extent, other small towns within the study area.

The population of the Mount Barker and Murray Bridge LGAs has increased since 2000 (see Section 2.1.1). The cost of housing in all capital cities and improved access to the study area from Adelaide has brought and is predicted to increasingly bring new people into towns within the study area. Of the persons interviewed, most had lived in the area for less than 10 years.

No-one interviewed expressed concern that population growth would impact on community cohesion or change the feel of towns within the study area. A common response was that towns were already progressing rapidly and that the mine would be just one of several factors contributing to the towns progress.

If mine employees chose to live in Adelaide, the impact on the population of local towns will be minimal.

Rental Accommodation Given that there is already a paucity of rental accommodation in the Adelaide Hills region because of extremely low vacancy rate in Adelaide, the scarcity of temporary accommodation will increase as a result of Hillgrove employees and contractors looking to rent. This is likely to impact on people in local and peripheral communities to some extent.

Increased occupancy and demand for temporary (hotels, motels and caravan parks) and rental accommodation as a result of Hillgrove staff and contractors living in the area has the potential to increase revenue for investors, developers and hotel/motel owners in local and peripheral communities.

Increased Support to Communities The project will result in increased support to communities (volunteer recruitment and participation in community initiatives such as the CFS and sporting teams). Increased support will be largely centred on peripheral communities with accommodation suitable for mine employees (i.e., Adelaide and the larger towns of Strathalbyn, Mount Barker

43 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment and Murray Bridge). Increased support to communities is likely to be perceptible only in local communities (i.e., those closest to the mine).

5.1.2 Impacted Landholders Two separate landholdings will be directly impacted and eight indirectly impacted by mining. The directly impacted residents are currently unoccupied. This represents a nominal population loss of 0.05% of the population of the study area (excluding Adelaide) if all indirectly impacted landholders chose to move out of the study area. Despite the worst-case scenario of a potential loss of approximately sixteen individuals from the study area (excluding Adelaide), a net population increase of approximately 2.15% is expected.

5.1.3 Police and Emergency Services Policing is viewed by some community members as inadequate. A resident of Kanmantoo noted that at times the town feels lawless and that a stronger police presence would be preferable (Kanmantoo resident (anon), pers. com., 2007).

The proposed development of 1,700 new homes in Mount Barker is expected to place additional pressure on existing police services. A small population increase in some towns as a result of the mine may place short-term, increased pressure on police resources.

Given that only a small number of mine employees and contractors are likely to be accommodated in any one town within the study area and are likely to be accommodated with their families, any increased pressure on police resources as a result of the mine is likely to be minor and short term. Although recruitment of police to local towns (especially Murray Bridge) is currently difficult (Glen Snidavich, pers. com., 2007), allocation of additional resources will mitigate any negative impacts as a result of the mine.

Emergency response teams such as CFS, SES and ambulance are adequately staffed to cope with a work force of 150 people at the mine. An increase in population is not expected to place additional pressure on these services. In fact, population growth has the potential to increase volunteer recruitment and participation in community initiatives such as the CFS and sporting teams in local and peripheral communities.

5.1.4 Employment Job creation at the mine will create additional job opportunities for:

• The existing labour force (people who are currently working but may wish to change professions or work places).

• Unemployed people (868 people in the towns of Murray Bridge and Mount Barker who are registered as looking for work).

• Indigenous people (300 people in the towns of Murray Bridge and Mount Barker who are available for work and 35 people who are registered with the Indigenous Employment Centre as ready for work).

• Parents (200 people in the towns of Murray Bridge and Mount Barker).

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• Disabled people (200 people in the towns of Murray Bridge and Mount Barker on a disability support pension who are actively registered as seeking work with job networks).

• Local residents who have traditionally moved to larger commercial centres for employment after finishing school.

• Local residents who currently commute to larger commercial centres for employment on a daily basis.

5.1.5 Competition for Skilled Labour It is estimated approximately 20% of mine employees will come from local and peripheral communities (specifically Mount Barker and Murray Bridge) (Murraylands Regional Development Board, 2007). Approximately 80% of the workforce is likely to be sourced from Adelaide and other regional centres, state capitals, or overseas.

Skilled labour shortages are already apparent in most regional areas, South Australia and in the rest of Australia (DOTARS, 2004). It was reported by regional development boards that existing businesses experience difficulties finding skilled employees to work in the region. Given the opening of Terramins Angas Mine in Strathalbyn and Australian Zircon's Mindarie Mine and ongoing operation of T&R Pastoral and other industries, competition for skilled labour (particularly for people who have mining experience) at local, regional, state and national levels will increase.

Within the region, Hillgrove involvement in pre-employment skills training will build skill capacity to enable previously unskilled people to work at the mine. Training and education opportunities provided by the project have the potential to increase the skills capacity of existing and potential employees, mitigating the impacts of skills shortages to come extent. In addition actively encouraging skilled personnel to move back to South Australia to work at the mine will mitigate the impacts of labour competition in local and peripheral communities to some extent.

Immigrant workers from other parts of South Australia, Australia and overseas are predicted to fulfill remaining vacancies. Overseas workers have been successfully employed by T&R Pastoral (a meatworks and significant local employer located in Murray Bridge) to fulfill existing skills shortages.

Employment provision, re-skilling of existing workers and in-migration will benefit local and peripheral communities through:

• Provision of higher wages. • Better service provision. • Potential for greater growth.

This is in line with the goals of the Strategic Management Plan for the Rural City of Murray Bridge 2005 to 2010 and Adelaide Hills Employment and Skills Formation Network Action Plan 2006 to 2007; namely, that urban growth within the region will assist and provide, overtime, the base and financial capacity needed to sustain essential infrastructure, environmental programs, commercial development and community services and facilities.

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The skills capacity of spouses of existing and potential employees may increase the skills base in the region. The consequence of a slight increase in the overall number of skilled people (e.g., health practitioners and teachers etc.) is expected to benefit local and peripheral communities to some extent.

5.2 Accommodation A number of factors will influence the decision of where mine employees live:

• The availability of houses.

• The price of houses.

• The quality of houses.

• The distance between local and peripheral towns and the mine site (i.e., the influence of petrol prices and driving distances).

• How long mine employees intend to work for Hillgrove.

• Access to services and facilities.

5.2.1 Availability The greatest number of houses are available for purchase in Adelaide, Murray Bridge, Strathalbyn and Mount Barker (www.realestate.com, 2007). It is unknown how quickly approval and construction of an additional 1,700 to 2,000 homes in Mount Barker, Littlehampton and Nairne will proceed and how it will influence housing availability in the near future compared to rates of in-migration.

Good quality housing (based on cost) (see Table 10) is available to a lesser extent in towns outside Adelaide, Mount Barker and Murray Bridge. Given the easy commuting distance to Adelaide, many workers may decide against settling outside Adelaide until new housing is built.

Given that other developments are planned for Murray Bridge in 2008 (the construction of three new prisons), housing availability in towns within the study area is expected to decrease. However, investment in affordable housing is likely to be seen as a future business opportunity for developers and investors.

The availability of housing in local towns will depend on how quickly developments are approved by relevant councils. Indications are that approvals will be expedited by local councils if necessary.

5.2.2 Temporary Accommodation The scarcity of rental and temporary accommodation means that options for mine workers will be limited. In March 2007, Real Estate Institute of South Australia President Mark Sanderson said The new mine will attract a new workforce and place further pressure on scarce rental accommodation (RP Data, 2006).

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Increased occupancy and demand for temporary and rental accommodation has the potential to increase revenue for investors, developers and hotel/motel owners in local and peripheral communities.

5.3 Infrastructure

5.3.1 Roads Given that approximately 19 trips by haul trucks will be made per day and numerous trips will be made by mine vehicles (51 return trips per day during construction and 91 return trips per day during operation) local residences will experience increased traffic on roads used by mine vehicles (e.g., light vehicles carrying staff to and from the mine site, trucks transporting supplies to the mine and trucks transporting concentrate from the mine site to Outer Harbour for export). Construction of a site access road will limit traffic to already heavily trafficked roads such as the Princess Highway and East Terrace in Callington.

Three roads used by school buses are proposed as haul routes to and from the mine (see Figure 005).

Impacts associated with roads, traffic and transport will be investigated and reported by specialist road consultants (Maunsell, 2007). A traffic management plan will be implemented and will address traffic management during operations and road upgrades and mitigation measures to reduce impacts on existing road users such as school buses, including:

• Manage schedules to reduce traffic volumes when school buses are operating.

• Liaise with the community to minimise impact of changed traffic conditions (i.e., plan to ensure interruptions are as short as possible and the community is aware of any potential delays on roads during upgrades).

• Liaise with council to upgrade local roads and ensure that road intersections are improved.

• Implement any additional recommendations of the traffic report.

Kanmantoo residents expressed concern about the close proximity of the proposed haul route to a new residential development in Kanmantoo and cited negative experiences with Neutrog trucks exceeding speed limits as the reason for this concern.

5.3.2 Power and Water Supply The project has the potential to temporarily affect local communities through disruption to existing infrastructure e.g., short-term (1 hour) power outages particularly during the construction phase of the project.

Temporary disruptions and appropriate mitigation measures should be discussed with Electronet (the power utility servicing the project area), the District Council of Mount Barker and the community to minimise inconvenience.

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Opportunities for residents of Callington and Kanmantoo (and the local school) to benefit from improved communications infrastructure will be investigated and implemented if possible.

Hillgrove will become a new customer for potable water (5.5 ML/annum). Process water is likely to be supplied via treated effluent water from the Mount Barker District Council (approximately 520 ML/annum) if viable. Potential impacts of the project on local and regional water management (supply, usage and disposal) will be investigated and reported by Aqua Terra and Resource Environmental Management (specialist water consultants).

5.4 Community Services and Facilities A range of factors will determine how existing community services and facilities will be used:

• Where mine employees live. • The age of their children. • The suitability and convenience of the existing service i.e., opening hours, location, size etc.

5.4.1 Health A high standard of healthcare is provided for residents of towns within the study area. It is usually possible to see a doctor within 24 hours of phoning for an appointment. In Mount Barker LGA, an increased population is not expected to place additional pressure on existing medical services and medical clinics will cope with and welcome additional patients to their practices (Fay Briggs, pers. com., 2007).

Attracting doctors to practices within the Mount Barker LGA is not expected to be difficult as working in the study area is viewed as an attractive rural posting (Fay Briggs, pers. com., 2007) due to the easy commuting distance from Adelaide.

In Murray Bridge, the cumulative impact of T&R Pastoral, the new prison precinct and the mine is predicted to place extra pressure on existing medical facilities. This is expected to manifest, not in increased waiting times, but in an increased number of patients (particularly obstetrics patients) being transferred to Mount Barker or Adelaide. Attracting doctors to practices within the Murray Bridge LGA is expected to be difficult (similar to problems experienced by rural towns in other regional settings across Australia). Clinical manger of Murray Bridge Community Hospital expressed hope that mine staff may have wives who are nurses and may choose to work at the hospital (Sharon Harrison, pers. com., 2007).

5.4.2 Schools and Childcare Callington Primary School and kindergarten and the primary section of the Eastern Fleurieu School are currently operating under capacity and enrolment of an additional 100 children at the Eastern Fleurieu School, 70 to 80 children at Callington Primary School and 25 children in Callington kindergarten could be accommodated. Nairne Primary School has 500 students and is currently at capacity. Cumulative impacts of the mine and existing population growth in the Nairne area represents a significant increase in student numbers for the school.

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Nairne Primary School principal is already in discussion with the Education Department regarding extra facilities for the school. These are expected to be delivered within six months (Leesa Shephard, pers. com., 2007).

Secondary schools within the study area are already operating over capacity. Employment of a large number of immigrant workers at T&R Pastoral in Murray Bridge has seen enrolments at Murray Bridge Highs School increase by 50 in the last 18 months. This demonstrates the schools capacity to adapt to a changing school community (Merrilyn Clem, pers. com., 2007). Murray Bridge High School anticipates that extra students as a result of the mine could be accommodated provided the school is given sufficient notice to enable extra staff to be employed and extra classrooms to be built if necessary.

Eastern Fleurieu School anticipates that between 800 and 1000 school-aged children will move to Strathalbyn within the next five years. Enrolment of an additional 100 students as a result of the mine can be accounted for in plans to redevelop the school to accommodate extra students. Attracting additional teachers is not likely to be difficult (Bob Heath, pers. com., 2007) due to the easy commuting distance from Adelaide.

Enrolments in educational facilities in local and peripheral communities including childcare facilities, kindergartens and primary and secondary schools will increase as a result of the project. In addition to existing population growth, this has the potential to result in additional funding for schools (e.g., extra teachers and classrooms) that are already in demand. Increased funding as a result of additional enrolments has the potential to improve service provision within educational facilities.

5.4.3 Shops and Commercial Services A slightly bigger population will represent a small boost to economies in local and peripheral areas (excluding Adelaide where the impact is likely to be imperceptible) which will have a flow-on to other local and peripheral retail and commercial facilities (ERU, 2006). The commercial viability of shops and services may be strengthened (i.e., some existing businesses may choose to expand existing services) and additional business opportunities may be created. This in turn may encourage additional businesses to open and encourage people to shop more extensively in local and smaller peripheral towns.

Commercial service providers will welcome increased patronage and have the capacity to cope with a larger population and increased demand (pers. com., Nairne, Kanmantoo and Callington business owners (anon), 2006).

5.4.4 Police and Emergency Services

Police Resources In addition to existing population growth, an increase in the local and peripheral population as a result of the project has the potential to place additional pressure on police resources until adequate resources can be provided. Hillgrove will liaise with the Hills Murray Local Service Area police regarding where the projects workforce resides so that additional resources may be allocated to towns within the study area, if necessary.

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Emergency Services Although the mine will have its own mine rescue and first aid centre, a major incident may require the services of regional ambulance or hospital, the SES, or similar services from Mount Barker and, possibly, Adelaide and Murray Bridge.

Provided information is given to emergency service providers so they can plan to ensure emergencies both at the mine and in other parts of the study area can be managed effectively, no impact on incident response times of ambulance, CFS, SES or police is anticipated.

Induction for emergency response teams, including operation of specialist equipment and site access may be required. This will require consultation between Hillgrove and emergency service providers to determine existing capacities, training requirements and contingency plans should their services be required. Specifically, work with CFS and SES volunteer groups to explain the activities at the mine and potential emergency scenarios i.e., joint training exercises could be beneficial.

Emergency services (CFS, SES and ambulance) are expected to cope with any increase in population (Trevor Arnold, pers. com., 2007) as a result of the mine. Increased participation in volunteer organisational such as SES is anticipated as the population of the study area increases (Trevor Arnold, pers. com., 2007).

5.5 Community Cohesion Community members interviewed did not express concern about the project impacting on community cohesion. As described above, communities in towns within the study area are already diversifying (see sections 2.1.1. and 5.1). The mine is just one of many factors influencing communities within the study area. One community member hopes that new people will change the community – for the better (Callington resident (anon), pers. com., 2007).

Hillgrove has donated money to the community in the form of sponsorship of a number of sporting teams (Callington Football Club, Callington Little Aths, Callington cricket and netball clubs) (plates 17 and 18) and local events (Miners Reunion). Sponsorship has been viewed favourably by most community members. Some expressed concern that Hillgrove was attempting to buy them off, but conceded that regardless of the motives, community benefits were positive.

A member of the Callington football team had no concern that participation levels would drop as a result of the mine. Instead there is an expectation that participation levels will increase if more people live in the community. The extent to which participation in community groups and events will increase is impossible to determine but will largely depend on where mine employees chose to live.

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6. References and Bibliography

ABS. 2006. 2001 Census Data by Product Type. A WWW publication accessed in October 2006 at http://www8.abs.gov.au/ABSNavigation/prenav/ProductSelect? newproducttype=Community+Profiles&btnSelectProduct=Select+Location+%3E&are acode=&geography=&method=&productlabel=&producttype=&navmapdisplayed=tru e&javascript=true&breadcrumb=P&topholder=0&leftholder=0¤taction=201&ac tion=104&textversion=false. Australian Bureau of Statistics.

ABS. 2007. 2006 Census Data by Product Type. A WWW publication accessed in September 2007 at http://www.censusdata.abs.gov.au/ABSNavigation /prenav/ ViewData?action=404&documentproductno=SSC43856&documenttype=Details&ord er=1&tabname=Details&areacode=SSC43856&issue=2006&producttype=Census% 20Tables&javascript=true&textversion=false&navmapdisplayed=true&breadcrumb=L PTD&&collection=Census&period=2006&productlabel.

Adelaide Hills Regional Development. 2006. Overview of Adelaide Hills Region 2006.

Adelaide Hills Regional Development Board. 2006. Adelaide Hills Employment and Skills Formation Network Action Plan 2006 to 2007.

Adelaide Hills Regional Profile. 2005. Prepared by Government of South Australia Department of Further Education, Science and Technology.

Australian Job Search. 2007. A WWW publication accessed in March 2007 at http://jobsearch.gov.au/Maps/maps.aspx?st=11&rgn=sa&WHCode=0.

Beattie, L., Eversole, R., Krummel, S. 2005. From shearing stands to stripping sands: Sustainable regional development and mining industry start-up in established agricultural communities. Stage one: May 2004 to June 2005 Project report. A report prepared by RMIT University, Iluka Reources, Ltd and Southern Grampians Shire Council, September.

BTRE. Date unknown. Skill Shortages in Australias regions, Working Paper No.68, pg 31. Prepared by Australian Government, Department of Transport and Regional Services, Bureau of Transport and Regional Economics.

Budget Speech 2006-07. Delivered on 21 September 2006, on the second reading of the Appropriation Bill 2006, by the Honourable Kevin Foley MP, Treasurer of South Australia.

Clifford, B. 2006. Murraylands Jobs and Investment Survey 2006. A forecast pf growth in the Murraylands region to end of 2008 for the Murraylands Regional Development Board. A Murraylands Regional Development Board publication.

DOTARS. 2004. Auslink White Paper, Department of Transport and Regional Services, Canberra.

51 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

DTED. 2005. South Australias Economic Performance Update. December. Report prepared by Department of Trade and Economic Development, South Australian Government.

ERU. 2006. REMPLAN: Regional economic modelling software. Developed by the Economic Research Unit at La Trobe University, Bendigo, Victoria.

Francis, K. Health and Health Practice in Rural Australia: Where are We, Where to From Here?. A WWW publication accessed on 26 March 2007 at http://www. rno.org/journal/issues/Vol-5/issue-1/Francis_article.htm.

Government of South Australia, Division of Minerals and Energy Resources. 2002. Earth Resources Information Sheet: Liaison Guidelines for Landholders and Mineral Explorers in South Australia (July 2002) M36

Hillgrove Resources Ltd. Kanmantoo Project Update - November/December 2006.

Hillgrove Resources Ltd. Kanmantoo Project Update – January 2007.

Hillgrove Resources Ltd. Kanmantoo Project Update -October 2006.

Hillgrove Resources Ltd. Kanmantoo Project Update - September 2006.

Hillgrove Resources Ltd. Kanmantoo Project Update - August 2006.

Jobs in the Murraylands Time Tracker. 2006. Proudly developed by Murraylands Regional Development Board, Australian Government: Department of Employment and Workplace Relations, and South Australia Works.

Joyce S.A and MacFarlane, M. 2001. Social Impact Assessment in the Mining Industry: Current Situation and Future Directions. Report prepared for Mining Minerals and Sustainable Development Project of the International Institute of Environment and Development. England.

Maunsell, 2007. Kanmantoo Copper Mine. Traffic Impact Assessment. August. Prepared by Maunsell: Aecom for Hillgrove Resources Ltd.

Meeting Notes: Murray and Mallee Local Government Association Broadband Steering Committee Meeting, held on 17 November 2005.

MG. 2001. Australian Towns Cities and Highways. A WWW publications accessed on 16 March 2007 at http://www.hotkey.net.au/~krool/photos/sa/sefreeway.html.

Murraylands Regional Profile. Date unknown. Prepared by Murraylands Regional Development Board Inc.

P.B. 2006. Preliminary Engineering and Environmental Assessment of Mining Operations at Kanmantoo: Road Access Assessment (Draft). April. Prepared by Parsons Brinckerhoff for Hillgrove Resources Ltd.

Planning SA. 2007. A WWW publication accessed on 18 March 2007 at http://www.planning.sa.gov.au/

52 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

Real Estate Institute of SA. 2007. Adelaides rental shortage still biting. A WWW publication accessed on 16 March 2007 at http://www.reisa.com.au

Realestate.com.au 2007. A WWW information source, accessed on 18 March 2007 at http://www.realestate.com.au/

Roche. 2006. Kanmantoo Copper Project Pre-Feasibility Study. June. Prepared by Roche Mining (JR) Pty Ltd for Hillgrove Resource.

RP Data Property Reports, 2006. Newsletter Nov.06. A WWW publications accessed on 16 March 2007 at http://www.reports.rpdata.com.au/enews/20061122.html

Rural City of Murray Bridge, 2005. Strategic Management Plan - Action Plan, December

SACOME. 2006. General Information. A WWW publication accessed on 17 January 2006 at http://www.resourcessa.org.au/industry/general.cfm

South Australia: Mining and Energy – Your future is here. 2006. Prepared by Government of South Australia, Department of Trade and Economic Development.

South Australia Works Linking people, skills, and jobs: Action Plan 2006 – 2007 for Adelaide Hills Region. Prepared by Adelaide Hills Regional Development.

Symonds, L. 2007. More growth – Additional 1700 homes for Mount Barker district. The Courier, March 7, 2007.

TafeSA. 2007. Government of South Australia. Tele-Learning Connections.

Terramin. 2007. Questions & Answers: Angas Zinc Project. A WWW publication accessed on 28 June 2007 at www.terramin.com.au/qanda.html

The Inter-organizational Committee on Principles and Guidelines for Social Impact Assessment. 2003. Principles and guidelines for social impact assessment in the USA. Impact Assessment and Project Appraisal (September): 231-250

The inter-organizational Committee on Principles and Guidelines for Social Impact Assessment. 1994. Guidelines and principles for social impact assessment. A WWW publication accessed on 06 October 2006 at http://www.nmfs.noaa.gov

URPS. 2006. Social Impact Assessment of the Proposed Mining Operations – Preliminary Feasibility Stage. Report prepared by A. Hazebroek of Urban & Regional Planning Solutions, for Hillgrove Resources.

Wax Design, 2007. Kanmantoo Copper Project. Visual Impact Assessment. August. Prepared by Wax Design Space for Enesar.

6.1 Personal Communications Ambrose, Brian. Neutrog Fertilisers, Production Manager. Telephone conversation, 18 March 2007.

Anon. Hahndorf hotel/motel/café owner. Personal interview. 9 March 2007.

Anon. Murray Bridge hotel owner. Personal interview. 10 March 2007.

53 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

Anon. Mount Barker and Hahndorf Tourist Information, Hahndorf. Personal interview. 9 March 2007.

Anon. Callington resident. Personal interview. 10 March 2007.

Anon. Kanmantoo resident. Personal interview. 8 March 2007.

Anon. Raine and Horne Real Estate, Hahndorf. Personal interview. 9 March 2007.

Anon. Raine and Horne Real Estate, Murray Bridge. Personal interview. 7 March 2007.

Anon. Statistics Department, Australian Bureau of Statistics. Telephone conversation. 17 May 2007.

Adams, Marty. Hillgrove Resources. Site Manager. Personal interview. 8 March 2007.

Arnold, Trevor. State Emergency Service. Central Commander, Manager of Technical Operations and Safety. Telephone conversation. 23 March 2007.

Briggs, Faye, Nairne Medical Centre. General administrator. Telephone conversation. 20 March 2007.

Challen, Fiona. Callington Primary School, teacher. Personal interview. 9 March 2007.

Clarke, Gavin. Elders Real Estate, Mount Barker, Telephone conversation. 20 March 2007.

Clem, M. Murray Bridge High School, principal. Telephone conversation. 20 March 2007.

Ferguson, A. District Council of Mount Barker, Mayor. Personal interview. 9 March 2007.

Goodall, C. Mt Barker District Soldiers Memorial Hospital, Nursing manager. Telephone conversation. 19 March 2007.

Harrison, Sharon. Murray Bridge Soldiers' Memorial Hospital, Clinical Manager. Telephone conversation. 19 March 2007.

Heath, Bob. Eastern Fleurieu School, principal. Telephone conversation. 20 March 2007.

Helm, Neil, Hingston Quarry, Telephone conversation. 12 March 2007.

Magors Bus Service. Facsimile. 5 March 2007.

McRae, Chris. Murray Mallee General Practice Network, Executive Officer. Telephone conversation. 12 March 2007.

Gowing, Georgia. Real Estate Institute of South Australia, Email. 16 March 2007.

Page, Graham. Elders Real Estate, Mount Barker, Telephone conversation. 20 March 2007.

Parker-Benton, Rona, State Ambulance Service - Hills Murray Region. Telephone conversation. 15 March 2007.

Sarre, Greg. District Council of Mount Barker. Personal interview. 8 March 2007

54 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Kanmantoo Copper Project Social and Economic Impact Assessment

Scalfino, Lina. Callington Primary School, principal. Personal interview. 9 March 2007.

Shepherd, Lessa. Nairne Primary School, principal. Personal interview. 19 March 2007.

Shultz, Sandy. District Council of Mount Barker. Telephone conversation. 18 March 2007.

Snidavich, Glen. Hills Murray Local Service Area, Senior Sargent. Telephone conversation. 20 March 2007.

Snook, Ray. Elders Real Estate, Mount Barker. Facsimile. 16 March 2007.

Star, Darren. District Council of Mount Barker, Policy Planner. Telephone conversation. 18 March 2007.

Walmesley, Michael. Rural City Council of Murray Bridge. Personal interview. 7 March 2007

Wegner, Brett. Colrae Seeds. Telephone conversation. 16 March 2007.

Wegner, Colin. Colrae Seeds. Telephone conversation. 16 March 2007.

Whiterod, David. Planning SA. Telephone conversation. 19 March 2007.

55 Enesar Consulting Pty Ltd 5000_3_SEIA_v3.doc/September 21, 2007 Appendix 1 Kanmantoo – Callington Community Consultative Committee

Hillgrove Response - July 2007 KANMANTOO KCCCC Recommendations

1. Introduction

2. KCCCC Recommendations and Hillgrove Response

3. Summary KANMANTOO Hillgrove Response

• Response is a consolidation of all recommendations by the community, other stake holders, local, state (DEH, DWLBC, EPA, Planning SA, DPI, PIRSA etc and federal government.

• DFS/MLP deals with what is feasible at the time of the study.

• There is opportunity to change down the track if options change via a variation of the MLP and this will be considered if the opportunities arise. INTRODUCTION Consultation Process

• Informal Community Forum - Focus Group - Phase Complete

• KCCCC in Public Forum Mode - Community Brief - Consultant Presentations - Community Recommendations - Chairs Report - Phase Complete

• KCCCC in Public Forum Mode - Hillgrove Response - Further Community Comment INTRODUCTION Consultation Process • KCCCC in Committee Mode - Mining Lease Proposal (MLP) Submitted - Further Comment from Community and Stake Holders - MARP Developed taking into Account Comments. - Likely to happen mid – late July 2007

• KCCCC in Community Building Mode - Positive DFS - Project Licensing by PIRSA with Conditions - Expected around December 2007.

• Parallel Process - Consultation with other stake holders Local, State and Federal Government. - Where relevant these bodies have also been asked to comment on issues within the prospective porfolio’s. KCCCC RECOMMENDATIONS Hillgrove Response

• We have listened to, and carefully considered, all the recommendations put forward by the KCCCC. • There are 129 recommendations. • We have accepted 108 of these recommendations in full. • We have accepted 21 in principle, but have added a practical solution to either further define the issue or to provide an example of how it would work. • Each topic will be reviewed in the order which it was presented to the KCCCC. KCCCC RECOMMENDATIONS Hillgrove Response

• Through this response we have tried to address all the key issues raised by KCCCC but due to limited time tonight we cannot go through every issue in detail. • All the relevant consultants who are preparing the mining lease proposal have been forward a copy of the KCCCC recommendations and all issues will be considered as part of the mining lease proposal. • Tonight’s discussion will focus largely on the recommendations which have been accepted in principal with suggested practical solutions and any new information which has become available since the consultants reports were presented. KCCCC RECOMMENDATIONS Detailed Break Down of Issue

No. Accepted Accepted Topic Recommendations Full Part Flora 10 7 3 Fauna 9 6 3 Non-Indigenous Heritage 7 3 4 Aboriginal Heritage 6 6 0 Noise 10 10 0 Processing 4 3 1 Visual 8 7 1 Socio-Economic 5 5 0 Mining 6 6 0 Air, Odour, GHG 11 8 3 Groundwater 14 13 1 Traffic 21 16 5 Integrated Waste Landform 8 8 0 Mine Closure 10 10 0 Total 129 108 21 KANMANTOO PROJECT Updated Site Layout

• All the recommendations provided by the KCCCC were taken and provided back to our consultants and we have tried to come up with a site layout which would address as many recommendations as possible. • When you put all these recommendations together the following maps show the consolidated effect on the final site layout. KANMANTOO PROJECT Site Layout - Original KANMANTOO PROJECT Site Layout - Updated KANMANTOO PROJECT KCCCC Presentations

14 presentations give to the KCCCC on various issues:

• Flora • Fauna • Non-Indigenous Heritage • Aboriginal Heritage • Noise • Processing • Visual • Socio-Economic • Mining • Air, Odour, GHG • Groundwater • Traffic • Integrated Waste Landform • Mine Closure PROPOSED MINE FOOTPRINT Flora – Original Areas of Direct Clearance PROPOSED MINE FOOTPRINT Flora – Updated Areas of Direct Clearance PROPOSED MINE FOOTPRINT Flora – Areas of Direct Clearance

Vegetation Type Total Area (ha) Old Footprint (ha) New Footprint (ha)

Eucalyptus odorata 54 8.7 3.9 woodland

Lomandra effusa 23 11.9 12.1 grassland

Austrostipa sp. grassland 17 3.7 0.8

Acacia pycnantha 11.2 5.4 6.8 woodland

Eucalyptus gracilis ± E. 4 2 2.8 oleosa mallee

Scattered E. odorata 75 trees 45 trees 56 trees

TOTAL 109.2 31.7ha 26.4ha (5.5ha reduction)

Note: This is a simplified table which combines all vegetation qualities and only the main vegetation types KCCCC RECOMMENDATIONS Flora

• 10 KCCCC Recommendations: 7 Accepted, 3 Accepted in principal with practical solutions.

1. Special attention should be paid to the Eucalyptus odorata (Peppermint Box) habitat and Lomandra effusa (Iron Grass) habitat located to the north and south of the existing pit respectively; Accepted 2. No mining activity should be conducted on high biodiversity woodland areas, especially those of Eucalyptus odorata, to the north of the pit; Accepted in principle Hillgrove recognizes the value of the woodlands to the north, but in order for the project to remain viable the full extent of the main pit needs to maintained. 3. Proposals to revegetate or regenerate alternative areas (as an offset strategy) should not be used as a compensation measure for any disturbance to the E odorata woodland to the north of the pit; Accepted in principle, with the practical solution being to work with the stake holders to design an appropriate offset measure (SEB) for any small residual disturbance of E.odorata in the northern reaches of the pit. KCCCC RECOMMENDATIONS Flora

4. Follow up flora surveys and habitat studies should be conducted over the coming winter and spring, followed by a commitment to longitudinal studies using a standardized methodology agreed with other interested parties such as DEH, PIRSA and local Landcare Groups; Accepted in principle with the practical solution, being to undertake a spring 2007 survey and once operations commenced an annual survey of vegetation transects will be undertaken together with surveys of revegetated areas. Hillgrove will have an environmental department who will implement and monitor a series programs, mitigations and offsets and as always we will endeavor to include all parties . 5. The extent of any likely affected areas of grasslands and other sensitive areas should be confirmed as soon as practicable to allow for the development of appropriate offset and impact minimisation strategies; Accepted 6. Offset programs in relation to the areas of Lomandra predominantly to the south of the pit, should be applied to achieve the greatest environmental benefit possible; Accepted KCCCC RECOMMENDATIONS Flora

7. Offset measures for unavoidable clearance of the habitats mentioned in this report, including the habitats of special significance and the lesser sites, should involve large, contiguous blocks Accepted 8. Cooperation should be sought from surrounding landowners in regard to offsets generally, as many of these landowners have undertaken, or are intending to undertake, revegetation activities; Accepted 9. Minor realignment of some of the proposed sites for processing facilities, tailing settlement and waste rock dump for example, should be undertaken to minimise impacts on more scattered remnants such as the patches of E. odorata in the north- west corner of the project site; Accepted 10. The establishment of a seed collection and cuttings process and bank should be undertaken as a matter of urgency. Accepted KCCCC RECOMMENDATIONS Fauna

• The revised footprint now leaves a coherent stand of native vegetation in excess of the minimum area of 20ha as outlined by the independent consultants as the minimum habitat area to sustain the diverse population of native fauna. • This will help to minimise the impacts of the project on the native fauna on site. KCCCC RECOMMENDATIONS Fauna • 9 KCCCC Recommendations: 6 Accepted, 3 Accepted in part with practical solutions.

1. Special attention should be paid to the Eucalyptus odorata (Peppermint Box) habitat and Lomandra effusa (Iron Grass) habitat located to the north and south of the existing pit respectively; Accepted 2. No mining activity should be conducted on high biodiversity woodland areas, especially those of Eucalyptus odorata, to the north of the pit; Accepted in principle Hillgrove recognizes the value of the woodlands to the north, but in order for the project to remain viable the full extent of the main pit needs to maintained. 3. Proposals to revegetate or regenerate alternative areas (as an offset strategy) should not be used as a compensation measure for any disturbance to the E odorata woodland to the north of the pit; Accepted in principle, with the practical solution being to work with the stake holders to design an appropriate offset measure (SEB) for any small residual disturbance of E.odorata in the northern reaches of the pit. KCCCC RECOMMENDATIONS Fauna

4. Follow up flora surveys and habitat studies should be conducted over the coming winter and spring, followed by a commitment to longitudinal studies using a standardized methodology agreed with other interested parties such as DEH, PIRSA and local Landcare Groups; Accepted in principle with the practical solution, being to undertake a spring 2007 survey and once operations commenced an annual survey of vegetation transects will be undertaken together with surveys of revegetated areas. Hillgrove will have an environmental department who will implement and monitor a series programs, mitigations and offsets and as always we will endeavor to include all parties . 5. Offset programs in relation to the areas of Lomandra predominantly to the south of the pit, should be applied to achieve the greatest environmental benefit possible; Accepted 6. Offset measures for unavoidable clearance of the habitats mentioned in this report, including the habitats of special significance and the lesser sites, should involve large, contiguous blocks Accepted KCCCC RECOMMENDATIONS Fauna

7. Cooperation should be sought from surrounding landowners in regard to offsets generally, as many of these landowners have undertaken, or are intending to undertake, revegetation activities; Accepted 8. A site management plan should be developed that includes consideration of activities such as traffic movements and dust generating processes, with a view to minimizing the impacts on fauna species; Accepted 9. The sighting of some of the proposed sites for processing facilities, tailing settlement and waste rock dump for example, should be undertaken to minimise impacts on more scattered remnants such as the patches of E. odorata in the north- west corner of the project site and the species of fauna they host; Accepted KCCCC RECOMMENDATIONS Non-Indigenous Heritage

• 7 KCCCC Recommendations: 3 Accepted, 4 Accepted in principle with practical solutions.

1. All parties should acknowledge that it is important to protect significant items of mining heritage, both on-site and across the broader community. A statement to this effect should be drafted; Accepted 2. The conservation of the major heritage items on site (such as the Paringa Chimney) should be encouraged; Accepted in principal with the practical solution being the development of a region wide mining heritage conservation plan through the KCCCC. It is envisaged that the elements of any plan to include photographic records, library of artifacts, heritage trail and selvage of materials. Hillgrove would actively support this plan through the KCCCC. 3. The development of an inventory of non-indigenous heritage items, including key information such as condition, should be undertaken as a key first step to conservation. Heritage SA should be involved in the production of this baseline documentation; Accepted in principal with the practical solution being one of the first steps to developing a region wide mining heritage conservation plan would be to prepare a report, this would be championed by KCCCC. KCCCC RECOMMENDATIONS Non-Indigenous Heritage

4. The scope of work in preparing an inventory should extend to include objects, artifacts and structures on the site and across the wider community; Accepted in principal with the practical solution of this forming part of the conservation plan to be managed by the KCCCC. 5. Urgent assessment of the condition of some of the significant remnants (including the Paringa chimney) should be undertaken; Accepted 6. In the development of any future mining operations, Hillgrove Resources should avoid where possible, direct impact on areas containing significant items of mining heritage; Accepted 7. Where items must be disturbed, other more radical methods such as moving the item or rebuilding it from authentic materials, should be considered. Accepted in principal with the practical solution being that it would form part of the mining heritage conservation plan managed by the KCCCC. KCCCC RECOMMENDATIONS Aboriginal Heritage

• 6 KCCCC Recommendations: 6 Accepted 1. The importance of identifying the appropriate indigenous people to speak for the land is recognized; Accepted 2. The Peramangk people have been identified by the consultant as the traditional owners for the area in which the old Kanmantoo mine site is located; Accepted 3. Contact details of the traditional owners should be kept and regularly updated; Accepted 4. Particular attention should be paid to the Southern Creek Flat area as a possible previous Aboriginal burial site; Accepted 5. A dedicated section of any future site management plan should be included that clearly identifies the protocols that must be followed if human remains were ever uncovered anywhere on the site; Accepted 6. These protocols should also be included in site induction programs and general training manuals for field staff on site; Accepted KCCCC RECOMMENDATIONS Noise • 10 KCCCC Recommendations: 10 Accepted 1-2.Restricting noise at source to acceptable levels (as defined by strict standards) through measures such as: – Choosing plant and equipment that is less noisy; and Accepted – Using noise suppression technology; Accepted 3-5.Managing noise to restrict carriage (as defined by strict standards) through measures such as; – Building noise barriers between noise sources and residential locations; Accepted – Locating plant and equipment with consideration to reducing the potential for noise emissions; and Accepted – Restricting certain activities to daylight hours; Accepted 6. A clear distinction should be made between measures to be applied during construction and after commissioning; Accepted KCCCC RECOMMENDATIONS Noise 7. Special consideration should be given to using new ‘white noise’ technology for reversing warnings on mobile plant; Accepted 8. Particular attention should be paid to ensuring that noise and vibration levels associated with blasting meet Australian standards. Additional information for the community, more specifically identifying these standards, should be provided. Monitoring of noise and vibration levels, and regular reporting to the community, should be a feature of the mine and operations management plan; Accepted 9. A special recognition of ‘nuisance noise’ should be included in the mine and operations management plan, with potential sources identified and specific mention of how these will be managed; and Accepted 10. A community complaints process should be established with performance targets agreed with the community. A link should be made to the role of the Community Consultative Committee, through a standing item that includes the regular reporting of incidents. Accepted KCCCC RECOMMENDATIONS Processing • 4 KCCCC Recommendations: 3 Accepted, 1 Accepted in principle with practical solutions.

1. It is noted that ore processing (like geology and mining) is a fundamental consideration of the project. Each of the presentations related to issues such as noise, water or heritage for example, will influence the design, function and management of these core elements; Accepted 2. Environmental and safety recommendations identified in dedicated presentations (eg noise, water etc) should be reflected in the design and function of the ore processing facilities. Appropriate standards should be identified and met; Accepted 3. A special effort should be made to ensure that the community understands the measures that are used to decide between various alternatives in the project design, function and management of key facilities. For example, a clear explanation should be presented related to how costs and benefits are included in infrastructure decisions, including costs and benefits that accrue (or may accrue) to the community; and Accepted in principle, practical solution being a presentation to the KCCCC when required. 4. Public safety should be a priority for the project and measures taken in this regard such as controlling access to site and taking appropriate responsibility for off-site functions (eg transport); Accepted KCCCC RECOMMENDATIONS Visual • 8 KCCCC Recommendations: 7 Accepted, 1 Accepted in part with practical solutions. 1-5.The recommendations of the visual impact assessment should be accepted. These include: – landscaping of the proposed integrated waste facility to mimic the natural undulating landscape; Accepted – extensive planting of appropriate vegetation to screen aspects of the site; Accepted – the inclusion of valleys and gullies as refuges for vegetation and fauna habitat towards the lower levels of the integrated waste facility; Accepted in principle with practical solution of ensuring that any sculpting of the IWF does not affect its stability. – avoidance of light spillage through careful design and management of lighting where night operations were contemplated; and Accepted – the inclusion of a colour scheme in building specifications that blends with the natural background colouring. Accepted KCCCC RECOMMENDATIONS Visual

6. Whilst it was understood that the viewpoints for purposes of the study were located at publicly accessible sites, the amenity of private landowners should also be seen as important and taken into account in the design of various landscapes; Accepted 7. The opportunity to improve the visual impact of the existing waste rock dump as seen from the freeway, should be a priority in the landscape planning; Accepted 8. The appeal of rolling grasslands / pastures as well as native vegetation should be considered in possible landscape futures through consultation with the local community. Accepted KCCCC RECOMMENDATIONS Socio-Economic

5 KCCCC Recommendations: 5 Accepted

1-3. The recommendations of the social and economic impact assessment should be accepted. These included: » Holding supplier briefings with local suppliers; Accepted » Various training and employment initiatives; and Accepted » Engaging in discussions with various community service providers including emergency services, police, schools and hospitals to assist in the future allocation of resources. Accepted 4. Whilst the difficulties related to determining economic costs and benefits are acknowledged, some further assessment in this area should be conducted to assist forward planning in aspects such as local business participation, jobs growth, schools and other infrastructure provision; Accepted 5. Where possible, further information related to the potential impact of the proposed mine redevelopment on property prices in the area should be provided for the community. Particular attention should be paid to a differentiation between the township properties and rural holdings around the existing mine site. Accepted, note additional detail will be provided in the MLP KCCCC RECOMMENDATIONS Mining

• 6 KCCCC Recommendations: 6 Accepted 1. A conservative approach to blasting in the early stages should be taken, while the model is confirmed and data is produced to confidently demonstrate on- going compliance; Accepted 2. ‘Fine tuning’ of blasting processes should be carried out in the early stages of mining, to ensure that Australian Standards in respect of noise and vibration, are met. The CCC understandings that this is possible through adjustment of depth and diameter of the blast hole; Accepted 3-4. An appropriate monitoring regime for noise and vibration should be established that has two parts: – an on-going, longitudinal data collection regime to demonstrate that the mining operation is complying with the noise and vibration standards; and Accepted – a reactive and responsive monitoring program for noise and vibration, as part of a meaningful response to complaints; Accepted KCCCC RECOMMENDATIONS Mining

5. A complaints process including, but not restricted to, noise and vibration should be established as part of a set of community procedures agreed with the CCC before mining commences; Accepted 6. Routine blasting times should be scheduled when there is likely to be least impact on the wider community. Any non-routine blasting should be publicly notified using an agreed process and timeline. A notification process should be part of a set of community procedures agreed with the CCC before mining commences; Accepted KCCCC RECOMMENDATIONS Air, Odour and Greenhouse Gases

• 11 KCCCC Recommendations: 8 Accepted, 3 Accepted in part with practical solutions.

1-7. The recommendations made in the various air studies should be accepted. These include: – internal haul roads should be subject to dust control measures such as watering; Accepted – activities such as blasting should be scheduled for times during the day when dispersion conditions are at their best; Accepted – buffers should be maintained between the mining operation and the local residents as defined in the EPA draft guidelines for separation distances; Accepted – odorous sources should be enclosed where possible; Accept in principle, but must meet OHS requirements. – air emissions should be extracted through a stack at the processing facility; Accept in Principle, with a practical solution that collector systems will be put in place to ensure that all EPA guidelines are met. – the existing buffer between the mining operations and the local residents should be maintained; Accepted – the proposed mining operation should investigate the potential for trading in carbon credits if and when a market is established. Accepted KCCCC RECOMMENDATIONS Air, Odour and Greenhouse Gases 8. Environmental considerations should be a priority when dust suppression strategies are being developed for haul roads; Accepted 9. The approach of adopting the metropolitan area odour target of 2OU instead of 8OU is strongly supported by the CCC; Accepted in principal, but note that Hillgrove will be seeking further information from the EPA as to why they have assigned a compliance level 25% of what would normally be expected in this environment. 10. A complaints process should be established as part of a set of community procedures agreed with the CCC before mining commences. This would identify the various regulators responsible for particular standards and include an ongoing education / information program for new and existing residents; Accepted 11. The proactive initiative of Hillgrove Resources to include a GHG study as part of the DFS is acknowledged by the CCC; Accepted KCCCC RECOMMENDATIONS Ground Water • 14 KCCCC Recommendations: 13 Accepted, 1 Accepted in part with practical solutions.

1. groundwater from pit dewatering and surface runoff from mining-affected areas should be used as process water supply in preference to other water supplies. The level of mine drainage water may be indicated by the flows dealt with during the last period of mining activity on this site; Accepted 2. groundwater from supply wells should only be used to sustainable levels with acceptable impacts. More work would be need to be done to establish what these sustainable use limits are; Accepted 3. surface water runoff generated on-site in disturbed areas should be captured and re-used; Accepted 4. off-site discharge of surface water unaffected by mining activities should be facilitated by establishing diversion drains. The direction of any such water should be carefully planned to avoid exacerbating existing or creating new erosion or flood impacts, especially in relation to the residents of Callington; Accepted 5. tailings should be thickened to maximise recycling of water; Accepted 6. an engineered, compacted clay or other suitable liner should be constructed under the tailings storage facility to avoid seepage; Accepted 7. decant water and underdrainage from the tailings storage facility (TSF) should be harvested and reused; Accepted 8. groundwater and surface water monitoring should continue during mining to meet regulatory requirements and to refine the hydrogeological model; Accepted KCCCC RECOMMENDATIONS Ground Water

9. Regulations and good practice that cover minimizing the impacts from groundwater extraction on bores / wells on neighbouring properties must be adhered to and regular reporting on compliance should be provided for the community. The issue of potential draw down of the resource should be addressed by the establishment of baseline extraction rates for the wells/bores in the immediate vicinity. This should be done immediately to establish usage patterns over as long a time frame as possible; Accept in principle, with the practical solution of reviewing the hydrogeological model and targeting bores on adjoining properties . 10. Continual monitoring of strategic wells should be maintained for the life of the mine as part of the routine water monitoring and management plan; Accepted 11. Dedicated monitoring wells should be identified between nearby wells on neighbouring properties any point of extraction on the site; Accepted KCCCC RECOMMENDATIONS Ground Water

12. Clear benchmarks for supply and quality impacts should be established as a priority to enable the monitoring program to be meaningful, given that watertable conditions vary with seasons and other usage. The Bremer Barker Catchment Group has conducted a long term monitoring program of bores in this region. Reference to this information and other associated studies may be useful in relation to this issue; Accepted 13. Useful information in relation to the hydrogeology of the region that has been identified in the water studies, should be made available to the community including local landowners and the local Council. Accepted 14. An indication of the magnitude of the expected water use during the mine operation, and the expected source of the water to be used, should be made available as soon as practical. Accepted (around 500ML) KCCCC RECOMMENDATIONS Traffic • 21 KCCCC Recommendations: 16 Accepted, 5 Accepted in principal with practical solutions.

• A comparison of rail and road to meet the heavy transport needs of the proposed mine development, should be further investigated. A clear explanation as to why rail is not viable should be presented to the community before accepting the road option. Amongst the aspects of the rail option that should be discussed are: 1. the issues surrounding the development of a rail siding at the mine site; 2. the potential for a conveyor loader to be built to service railcars to remove the need for double handling at the mine site; 3. the opportunity for the State Government to support an extension to the rail head at Port Adelaide; 4. an understanding of the fixed costs (eg fuel) and other costs / benefits (eg greenhouse gases) of rail and road; • All these four issues are Accepted in principal with the practical solution of re- considering the option down the track should the rail be extended from the bulk head to berth 29 where the concentrate would be shipped from. KCCCC RECOMMENDATIONS Traffic 5. Priorities in the selection of potential road routes and the management of traffic along those routes, should emphasise public safety (with special emphasis on the safety of children and families) and general amenity (eg noise); Accepted 6. Serious consideration should be given to developing a new, dedicated route through private property to reach the Princess Highway and avoid the residential area of Kanmantoo particularly; Accepted in principal with the practical solution of Hillgrove actively reviewing alternative access for heavy vehicles to site. 7. Initiatives to ensure that amenity of the community is not compromised should be adopted. These include identifying appropriate restrictions on the use of exhaust brakes / engine brakes and clearly identifying standards that must be met in haulage contracts. However, strong policing of regulations under the law should be emphasized in any traffic strategy; Accepted 8. A Traffic Management Plan (TMP) should be developed as a means of identifying good practice. The TMP should be included in the Mine Operations Plan to elevate its significance. However, the TMP should not be the sole mechanism to manage performance but rather used to support strong policing and enforcement of legal obligations; Accepted 9. The various noise standards for vehicle transport in the various areas (eg residential and rural living) should be published for the community in a simple guide with common examples of similar noise levels used as illustrations; Accepted KCCCC RECOMMENDATIONS Traffic 10. A complaints process should be established that allows timely and meaningful responses to community complaints. The complaints response should include access to a simple, do it yourself, noise monitoring regime; Accepted in principal with the practical solution of developing an acceptable model/regime via the KCCCC. 11. Appropriate consideration should be given when interpreting road standards for heavy vehicles, to the idiosyncracies of the residential area of Kanmantoo such as the increased likelihood of parked cars on the roadside; Accepted 12. Given that circumstances like production rates may change over a 6 – 10 year period, a commitment should be made to a process to allow the community to be engaged and informed on issues like traffic, for the life of the mine; Accepted 13. Any traffic plan should be consistent with the District Council of Mt Barker Strategic Plan for the region; Accepted KCCCC RECOMMENDATIONS Traffic

Regardless of the nature of the final traffic solution, elements in a Traffic Management Plan should: 14. focus on safety strategies including additional controlled speed environments; Accepted 15. develop strategies to avoid traffic movements at key times, particularly road traffic at school bus pick up or other times of key family movements; Accepted 16. provide training for workers and contractors on traffic matters; Accepted 17. ensure vehicle maintenance is to high safety standards; Accepted 18. include adherence to the Traffic Management Plan as a condition of haulage contracts; Accepted 19. monitor performance against the Traffic Management Plan; Accepted 20. establish ongoing links to the community for the life of the mine; and Accepted 21. develop a clear and effective complaints process. Accepted KCCCC RECOMMENDATIONS Integrated Waste Storage Facility (IWF)

• KCCCC Recommendations: 8 Accepted, 8 Accepted

• adopting the IWL design, given that it is based on a well-established, proven design; Accepted • carrying out construction monitoring by independent third parties to verify the implementation of the design through all phases of construction to closure; Accepted • the implementation of daily, routine inspections and annual engineering audits to verify the operation of the tailings storage facility in accordance with the design; Accepted • the continual monitoring of groundwater downstream of the facility to verify the performance of the design. (The results from any such monitoring works should be published both on-line and as permanent hard copy to selected recipients such as the KCCCC, community environmental groups and government agencies). Accepted KCCCC RECOMMENDATIONS Integrated Waste Storage Facility (IWF)

• The process of selection of vegetation cover for the rehabilitated slopes of the IWL should include consultation with stakeholders such as landowners, relevant local community members and groups. This should be done with a view to maximizing the environmental outcomes and ensuring that the IWL rehabilitation is consistent with other regional initiatives. Revegetation should consist of local native species planted in a manner designed to maximise biodiversity benefits whilst also achieving the other requirements of site rehabilitation. This process should be coordinated with the progressive rehabilitation of the site promised during the life of the mine, taking into account any SEB offset requirements imposed as part of the Mining Approvals process. Accepted • Environmental and broader property management knowledge, technology and practices should be shared with local community members where appropriate. For example, where Hillgrove utilizes technology such as HDPE for environmental purposes, a sharing of this knowledge and possible group purchasing arrangements should be explored. To facilitate this, part of the routine, on-going consultation with the community could include a sharing of this knowledge; Accepted KCCCC RECOMMENDATIONS Integrated Waste Storage Facility (IWF)

During the life of the mine, regular items should be reported to the community (via the CCC) including: • results of groundwater monitoring related to the performance of the IWL; Accepted • early notification of any extension to the mine life, especially where this may significantly increase the size or visual impact of the IWL. This is especially important in relation to any proposal to increase the height of the IWL where the increase may raise the level above the skyline when viewed from the south and the freeway. Accepted KCCCC RECOMMENDATIONS Mine Closure

• KCCCC Recommendations: 10 Accepted

• basing the Mine Closure and Rehabilitation Plan on best practice environmental management and continuing to apply these principles as the detailed mine closure plan evolved over the life of the mine; Accepted • committing to further work through the life of the mine to enable detailed designs to be developed; Accepted • conducting landform design testing and evaluation to confirm the landform design and assist in materials selection; Accepted • refining cover design from the range of options in consultation with local community and government; Accepted • continuing to research final land use options including water storage and backfilling the main pit from satellite pits; Accepted • commencing collection of native seed from the mine site for use in revegetation programs and continuing research into propagation of Lomandra effusa in particular; Accepted KCCCC RECOMMENDATIONS Mine Closure

• placing special emphasis on consultation with the local community and recognising the benefit of local knowledge in final land use design; Accepted • Comprehensive photographic records of the current site should be collected as a benchmark against which the improvements delivered by the Mine Closure and Rehabilitation Plan can be measured; Accepted, permanent photo points can be established. • The principle of consulting with the community on potential future land uses after mine closure, particularly where they involve a change to existing land use that can be seen elsewhere in the district, should be strongly endorsed; Accepted • Responsive action should be taken to collect seed when and where it becomes available. This applies particularly to species such as Lomandra effusa which show wide variation in seed patterns as a result of environmental stress. Similarly plant propogation programs should be expedited to ensure appropriate stocks of specimens from the local gene pool; Accepted KCCCC RECOMMENDATIONS Summary

• Hillgrove has carefully considered all the issues which have been presented via the KCCCC. • We have tried to produce a response which provides solutions to the key issues raised by the community and other stakeholders. • We believe we have provided practical solutions for consideration to the recommendations put forward by the KCCCC. KCCCC RECOMMENDATIONS Summary

• We believe that the input of the community and other stakeholders have helped to make the mining lease proposal a far more robust and representative document. • Welookforwardtothecontinuedinputandconstructive comment from the KCCCC members and community over the next phases of the consultation period. • We would again like to thank all those who have contributed to the KCCCC process along the way, the gallery, the KCCCC members who have generously donated their time and Bob for doing a fantastic job of guiding the process to where we are. SUMMARY Opportunities to Provide Further Comment

• Apart form the KCCCC process there are many other opportunities to comment.

• At any time, directly through:-

• PIRSA;

• The Minister for Mineral Resources Development;

• Local Elected Member

– Local government;

– State government; or

– Federal government. SUMMARY Opportunities to Provide Further Comment

• Through the Kanmantoo Callington CCC:-

– Directly from the gallery at meetings;

– Via correspondence to the Chair;

– Via the Community Champions;

– Via the Independent Chair;

• At the call for submissions from the Minister to a Mining Proposal (Mining Lease Application);

• Via CCC;

• Directly to PIRSA.

• to the Minister for Mineral Resource Development. How to Contact Us

• you have any queries or would like further information on our work program please call Hillgrove’s Land Holder Liaison Officer Mr John Popow or alternatively General Manager Mr Dale Ferguson. - John Popow mb. 0427131018, [email protected] - Dale Ferguson (08)93226377, [email protected]

• We have added a community section to our website which provides an outline of our activities in the area at: www.hillgroveresources.com.au.

• If you wish to contact Primary Industry and Resources South Australia (PIRSA), who are the government body who regulate mining and exploration in South Australia, please call Sam Walker on (08) 8463 3182 or by email at [email protected].

• KCCCC through Bob Goering or Stephen Marlow Appendix 2 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:28 April 2007

Topic: Flora

Report prepared for Hon Paul Holloway MLC, Minister for Mineral Resources Development cc Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources Ltd

Background x The CCC considered the issue of Flora at its meeting on 22 March 2007; x A presentation was made to the CCC by Ben Taylor, an ecologist with Ecological Associates; x Ecological Associates is a consulting firm commissioned by Hillgrove Resources to conduct an independent Flora study of the site as part of their Definitive Feasibility Study (DFS); x Community comments were collected at the meeting; x Following the meeting, additional input was received via the networks of the CCC Member championing the Environmental Portfolio; x A draft report was tabled at the 19 April 2007 CCC meeting; x The draft report was incorporated into this Chair’s Report;

Issues and options

Habitats of special significance x It appears likely that the proposed development will impact on areas of native vegetation both in the area that surrounds the former Kanmantoo open cut mine and in the area formerly owned by Holco Holdings, to the south and west of the pit; x Two vegetation associations are of particular concern to the community; the Eucalyptus odorata (Peppermint Box) habitat and Lomandra effusa (Iron Grass) habitat located to the north and south of the existing pit respectively; x These two key vegetation associations have been nominated for protection under the Commonwealth Environment Protection and Biodiversity Conservation Act in 2005 but their nominations have not yet been finalized; x The woodland associations to the north of the pit are the largest intact and most highly diverse examples of this habitat in the local area; x The E odorata habitat is a substantial area that is recognised under the Mt Barker Development Plan and by the South Australian Department for Environment and Heritage; x The E odorata habitat provides a refuge and a breeding ground for many species of flora and fauna. This aspect is expected to be confirmed in a future study to be presented to the CCC dealing with fauna; 1 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:28 April 2007 x Any activity which degrades the woodland associations to the north of the pit area should be avoided; x The creation of open cut pits in this area, along with the access roads and other associated activity, will fragment this area and degrade its value as a habitat area; x Proposals to revegetate or regenerate alternative areas would not provide the equivalent habitat for many decades; x Nesting hollows are a major micro-habitat contribution provided by remnant overstorey. The number of these hollows does not increase by allowing regeneration of understorey or groundcover species. The destruction of any nesting habitat is therefore a net loss which cannot be compensated through offsets; x Revegetation areas that have been established by the Bremer Barker Catchment Group and the Kanmantoo Callington Landcare Group over the last 10 years, help to demonstrate that many decades will be required to allow the development of hollows suitable for nesting bird species;

Flora surveys x Hillgrove Resources has initiated a number of flora and fauna surveys of the site, however unfortunately they do not have the benefit of standardized longitudinal habitat studies over the years of their exploration program; x Methodologies used for habitat studies in the past have variously used the Department of Environment and Heritage methodology and that preferred by PIRSA. These differing standards make the correlation of separate surveys difficult; x The latest flora survey report, conducted during the summer of 2006 / 2007, identifies limitations to the survey work in respect of timing and duration. Special mention was made in this study, to the atypical weather leading up to, and during the survey period; x It appears that the drought conditions have made it difficult to confirm the existence or otherwise, of the more ephemeral species of understorey and groundcover vegetation, which normally appear briefly in late winter or spring. This limitation is acknowledged in the Consultant’s report;

2 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:28 April 2007

Use of offsets x Under the Mining Act, impacts by mining activity should be minimised or where unavoidable, clearance should be offset by revegetation and / or protection of other areas, in a manner reflecting the value of vegetation; x The mechanism for providing revegetation areas to offset unavoidable clearing of vegetation, is clearly set out under the Mining Act; x In relation to the areas of Lomandra predominantly to the south of the pit, these provisions should be applied to achieve the greatest environmental benefit possible; x There appears to be an opportunity to cooperate with surrounding landowners in regard to offsets generally, as many of them have undertaken, or are intending to undertake, revegetation activities; x The use of roadside plantings as offsets for vegetation clearance is suboptimal as such plantings are linear, subject to weed invasion and do not provide suitable habitat for many species. They are also subject to clearance by various authorities, including landowners for fencing, the provision of services and from illegal firewood collection; x The preferred offset measure is for large, contiguous blocks;

Lesser sites x A number of lesser sites with conservation values also exist, such as the Allocasuarina verticillata (Drooping Sheoak) remnant above Emily Star, and a previously fenced off area above the Paringa Mine ruins; x Other sites can be identified in the report “Significant Vegetation Areas”, produced by the Kanmantoo- Callington Landcare Group; x Further to these are those areas that will be affected by the establishment of the processing plant, tailings-settlement facility and the waste rock dumps; x Minor realignment of some of the proposed sites for processing facilities, tailing settlement and waste rock dump should be undertaken to minimise impacts on more scattered remnants such as the patches of E. odorata in the north- west corner of the project site;

Collection of genetic material x The establishment of a seed collection and cuttings process and bank should be undertaken as a matter of urgency as not all species produce seed every year and Hillgrove’s proposed schedule could impact severely before next autumn;

3 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:28 April 2007

Key recommendations

1. Special attention should be paid to the Eucalyptus odorata (Peppermint Box) habitat and Lomandra effusa (Iron Grass) habitat located to the north and south of the existing pit respectively; 2. No mining activity should be conducted on high biodiversity woodland areas, especially those of Eucalyptus odorata, to the north of the pit; 3. Proposals to revegetate or regenerate alternative areas (as an offset strategy) should not be used as a compensation measure for any disturbance to the E odorata woodland to the north of the pit; 4. Follow up flora surveys and habitat studies should be conducted over the coming winter and spring, followed by a commitment to longitudinal studies using a standardized methodology agreed with other interested parties such as DEH, PIRSA and local Landcare Groups; 5. The extent of any likely affected areas of grasslands and other sensitive areas should be confirmed as soon as practicable to allow for the development of appropriate offset and impact minimisation strategies; 6. Offset programs in relation to the areas of Lomandra predominantly to the south of the pit, should be applied to achieve the greatest environmental benefit possible; 7. Offset measures for unavoidable clearance of the habitats mentioned in this report, including the habitats of special significance and the lesser sites, should involve large, contiguous blocks; 8. Cooperation should be sought from surrounding landowners in regard to offsets generally, as many of these landowners have undertaken, or are intending to undertake, revegetation activities; 9. Minor realignment of some of the proposed sites for processing facilities, tailing settlement and waste rock dump for example, should be undertaken to minimise impacts on more scattered remnants such as the patches of E. odorata in the north- west corner of the project site; 10. The establishment of a seed collection and cuttings process and bank should be undertaken as a matter of urgency.

4 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:1 May 2007

Topic: Fauna

Report prepared for Hon Paul Holloway MLC, Minister for Mineral Resources Development cc Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources Ltd

Background x The CCC considered the issue of Fauna at its meeting on 19 April 2007; x A presentation was made to the CCC by Dr Greg Kerr from Ecological Associates Pty Ltd; x Ecological Associates is a consulting firm commissioned by Hillgrove Resources to conduct an independent Fauna study of the site as part of their Definitive Feasibility Study (DFS); x Community comments were collected at the meeting; x Following the meeting, additional input was received via the networks of the CCC Member championing the Environmental Portfolio; x A draft report was submitted to the Chair; x The draft report was incorporated into this final report that was prepared by the Chair;

Context x The fauna and flora reports are clearly linked. The comments made in this report are consistent with those in the flora report. The two reports should be considered together;

Issues and options

Fauna survey x Ecological Associates conducted the most recent fauna survey of the site during February 2007; x A standard methodology was used to trap, directly observe or otherwise record the presence of various fauna species, x The fauna survey focused on three vegetation associations; Eucalyptus odorata woodland, Lomandra effusa grassland and Austrostipa grassland as well as roaming surveys across the entire site; x Relatively low numbers of specimens and low species diversity for certain animal classes were noted when compared with existing records for the

1 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:1 May 2007 x region. The relatively low number of species identified represents less that one third of those previously observed within 7 kilometres of the site; x The consultant has acknowledged possible limitations to the survey in respect of timing and duration. Special mention was made in the study, to the atypical weather and its effect on the availability of feed for example; x Follow up longitudinal surveys should be conducted over the winter and spring to provide more complete information on species using this area;

Fauna species and habitat. x The results of the survey indicated more prolific numbers and a more diverse range of fauna species in the E odorata area. However, the Lomandra effusa tussock grassland contained a number of specialist species and provided feeding opportunities for a range of others; x The fauna study reinforced the links between the habitat opportunities provided by the vegetation associations and the extent and range of fauna supported; x As identified in the Flora report, two vegetation associations of particular concern to the community are the Eucalyptus odorata (Peppermint Box) habitat and Lomandra effusa (Iron Grass) habitat located to the north and south of the existing pit respectively; x The total remnant E odorata woodland in the region is estimated at about 292 hectares. The Kanmantoo mine site contains a significant percentage of the existing high value E odorata woodland habitat in the region with about 54 hectares located in the area to the north of the pit; x Any activity which degrades the woodland associations to the north of the pit area will impact on the population of diverse fauna species relying on this significant habitat. This should be avoided; x The creation of open cut pits in this area, along with the access roads and other associated activity, will fragment this area and degrade its value as a habitat for the range of species identified by the consultant;

Other impacts on fauna x Noise, vehicle movement and similar disturbance as a result of exploration activities and general movement around the site, may also have impacted on the survey results; x These impacts are likely to increase if mining operations commence unless measures are taken to recognize and limit these, particularly in sensitive areas. The site management plan should contain a section particularly dealing with these issues;

2 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:1 May 2007 x Furthermore, populations may be affected by the establishment of the processing plant, tailings-settlement facility and the waste rock dumps; x Minor realignment of some of the proposed sites for processing facilities, tailing settlement and waste rock dump should be undertaken to minimise impacts on more scattered remnants such as the patches of E. odorata in the north- west corner of the project site and the species of fauna they host;

Use of offsets x Under the Mining Act, impacts of mining activity on flora should be minimised or where unavoidable, clearance should be offset by revegetation and / or protection of other areas, in a manner reflecting the value of vegetation; x The mechanism for providing revegetation areas to offset unavoidable clearing of vegetation, is clearly set out under the Mining Act; x Nesting hollows are a major micro-habitat contribution provided by remnant overstorey in the mature E odorata vegetaion association. The number of these hollows does not increase by allowing regeneration of understorey or groundcover species. The destruction of any nesting habitat is therefore a net loss which cannot be compensated through offsets; x Revegetation areas that have been established by the Bremer Barker Catchment Group and the Kanmantoo Callington Landcare Group over the last 10 years, help to demonstrate that many decades will be required to allow the development of hollows suitable for nesting bird species; x In relation to the areas of Lomandra predominantly to the south of the pit, these provisions should be applied to achieve the greatest environmental benefit possible; x There appears to be an opportunity to cooperate with surrounding landowners in regard to offsets generally, as many of them have undertaken, or are intending to undertake, revegetation activities; x The use of roadside plantings as offsets for vegetation clearance is suboptimal as such plantings are linear, subject to weed invasion and do not provide suitable habitat for many species. They are also subject to clearance by various authorities, including landowners for fencing, the provision of services and from illegal firewood collection; x The preferred offset measure is for large, contiguous blocks;

3 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:1 May 2007

Key recommendations

1. Special attention should be paid to the Eucalyptus odorata (Peppermint Box) habitat and Lomandra effusa (Iron Grass) habitat located to the north and south of the existing pit respectively; 2. No mining activity should be conducted on high biodiversity woodland areas, especially those of Eucalyptus odorata, to the north of the pit; 3. Proposals to revegetate or regenerate alternative areas (as an offset strategy) should not be used as a compensation measure for any disturbance to the E odorata woodland to the north of the pit; 4. Follow up fauna surveys should be conducted over the coming winter and spring, followed by a commitment to longitudinal studies using a standardized methodology agreed with other interested parties such as DEH, PIRSA and local Landcare Groups; 5. Offset programs in relation to the areas of Lomandra predominantly to the south of the pit, should be applied to achieve the greatest environmental benefit possible; 6. Offset measures for unavoidable clearance of the habitats mentioned in this report, including the habitats of special significance and the lesser sites, should involve large, contiguous blocks; 7. Cooperation should be sought from surrounding landowners in regard to offsets generally, as many of these landowners have undertaken, or are intending to undertake, revegetation activities; 8. A site management plan should be developed that includes consideration of activities such as traffic movements and dust generating processes, with a view to minimizing the impacts on fauna species; 9. The sighting of some of the proposed sites for processing facilities, tailing settlement and waste rock dump for example, should be undertaken to minimise impacts on more scattered remnants such as the patches of E. odorata in the north- west corner of the project site and the species of fauna they host;

4 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:1 May 2007

Topic: Kanmantoo and Paringa Mines Non-Indigenous Heritage

Report prepared for Hon Paul Holloway MLC, Minister for Mineral Resources Development cc Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources Ltd

Background x The CCC considered the issue of Kanmantoo and Paringa Mines non- indigenous heritage at its meeting on 22 March 2007; x A presentation was made to the CCC by Sean Freeman of Australian Heritage Services; x Australian Heritage Services is a consulting firm commissioned by Hillgrove Resources to conduct an independent study of non-indigenous heritage on the site of the old Kanmantoo and Paringa Mine, as part of their Definitive Feasibility Study (DFS); x The CCC Portfolio Champion for Culture and Heritage, also tabled a paper for consideration, focusing on the conservation values of three historical, mining related, chimneys in the local area; x Community comments were collected at the meeting; x The Chair compiled this report.

Discussion x It was noted from the consultant’s presentation, that there are no items of non indigenous heritage related to the site, listed in the relevant conservation registers; x Various items of interest to the community were identified however, including the Paringa homestead, a remnant settling tank, Paringa smelter / chimney and a number of nearby ruins; x The poor condition of some of the remnants including the Paringa chimney was noted with urgent assessment recommended to ensure the assets are not lost; x Significant mining heritage items in the wider community were also identified as of interest to the community, including two other chimneys; one on the corner of Back Callington Rd and Mine St and the other at the Aclare Mine site;

1 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC. © 2007 KANMANTOO – CALLINGTON COMMUNITY CONSULTATIVE COMMITTEE CHAIR’S REPORT Date:1 May 2007

Issues and options x The recording of information related to the mining history and heritage of the site and surrounding local area is important. It provides both an inventory of objects, artifacts and structures and an opportunity to benchmark the condition and other factors necessary to manage possible future conservation programs; x Options for conserving significant items of mining heritage include their preservation (as is) in-situ, renovation in situ or more radical action such as moving the item; x Remnants including bricks, stones and other materials can be collected and used as materials to recreate some historical / heritage items;

Comments x Conservation of mining heritage such as the three chimneys identified, represents an excellent opportunity for community building; x Opportunities to present the mining history and heritage of the local area in the context of a modern operating mining operation, could provide flow on benefits to the community in the form of tourism, educational and other opportunities, as well as growing civic pride and community identity;

Key recommendations

1. All parties should acknowledge that it is important to protect significant items of mining heritage, both on-site and across the broader community. A statement to this effect should be drafted; 2. The conservation of the major heritage items on site (such as the Paringa Chimney) should be encouraged; 3. The development of an inventory of non-indigenous heritage items, including key information such as condition, should be undertaken as a key first step to conservation. Heritage SA should be involved in the production of this baseline documentation; 4. The scope of work in preparing an inventory should extend to include objects, artifacts and structures on the site and across the wider community; 5. Urgent assessment of the condition of some of the significant remnants (including the Paringa chimney) should be undertaken; 6. In the development of any future mining operations, Hillgrove Resources should avoid where possible, direct impact on areas containing significant items of mining heritage; 7. Where items must be disturbed, other more radical methods such as moving the item or rebuilding it from authentic materials, should be considered.

2 Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC. © 2007 Kanmantoo Callington Community Consultative Committee

CHAIRMAN’S UPDATE

17 May 2007

1 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 17 May 2007

Issues for 17 May 2007

1. Committee membership

2. Schedule of presentations

3. Progress on issues

4. Opportunities for comment

2 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 17 May 2007

MEMBERSHIP OF THE KANMANTOO CALLINGTON CCC

Portfolio Name Comments

1 Independent Chair; Bob Goreing Confirmed 2 Hillgrove Resources (the Dale Ferguson, GM- Confirmed company); Exploration and Operations 3 Local landowner that may be Alexander Wells Confirmed directly affected 4 Local landowner that may be Bill Filmer Confirmed directly affected 5 Environment; Harry Seager Confirmed 6 Kanmantoo township; Marilyn Deutrom On agenda of (Chair - Kanmantoo Grounds Grounds Committee) Committee 7 Callington township; Neil Turner On agenda of (President – Oval Committee Callington Oval Committee) 8 Heritage and culture; Kathryn Roberts Confirmed 9 Health and community Genevieve Hebart Confirmed services; (Manager – Hills Areas Health Services) 10 Schools and other education Brian Jaensch On agenda of services; (President – School Council Callington School for 15 May 2007 Council) 11 District Council of Mt Barker, Cr Lyn Stokes Confirmed an elected Member; 12 State MP for the area, or their Mark Goldsworthy Confirmed nominated representative; MP Alternate- Airlie Keen 13 Federal MP for the area, or Hon Alexander Confirmed their nominated Downer MP, Minister Alternate- Geoff representative for Foreign Affairs Hopwood Alternate 14 PIRSA - Mineral Resources Dr Paul Heithersay, Confirmed (Director of Mines or his Director PIRSA, Alternate – Ted nominee). Minerals and Tyne or Sam Petroleum Walker

3 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 17 May 2007

SCHEDULE FOR PRESENTATION OF SPECIALIST STUDIES AT THE KCCCC

Date Study Sub-Consultant Presenter 17 May 2007 Noise Sonus Chris Turnbull, Matt Dewhurst

Processing Hillgrove Resources Marty Adams

31 May 2007 Visual Wax Designs Warwick Keates, Brett Grimm

Socio-economic Enesar Susannah Kenny

7 June 2007 Mining Hillgrove Resources Marty Adams

Air, odour, GHG Tonkin Engineering Chris Purton

14 June 2007 Groundwater REM Paul Howe

Traffic Maunsell Steve Mitchell

21 June 2007 Integrated Waste Coffey Mining Chris Lane Landform

Mine Closure Enesar David Browne

Note: schedule is subject to availability of specialists and completion of reports.

4 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 17 May 2007

PROGRESS ON ISSUES

Issue Name Community Presentation Chair’s Portfolio Brief Report Leadership 1 Flora Complete 22 March Complete Harry 2007 2 Fauna Complete 19 April 2007 Complete Harry 3 Non- Complete 19 April 2007 Complete Kathyrn Indigenous Heritage 4 Aboriginal Complete 3 May 2007 Complete Kathryn heritage 5 Noise Alex and Bill

6 Processing TBA

7 Visual TBA

8 Socio- Local economic Community Reps 9 Mining TBA

10 Air, odour, Alex and GHG Bill 11 Groundwater Harry

12 Traffic Local Community Reps 13 Integrated Harry Waste Landform 14 Mine Lyn Closure

Other Committee roles: x Secretariat - Stephen x Communications – Lyn;

5 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 17 May 2007

CHAIR’S REPORT

Topic: Kanmantoo Copper Project – Aboriginal Heritage

Report prepared for Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources

Key recommendations

1. The importance of identifying the appropriate indigenous people to speak for the land is recognized; 2. The Peramangk people have been identified by the consultant as the traditional owners for the area in which the old Kanmantoo mine site is located; 3. Contact details of the traditional owners should be kept and regularly updated; 4. Particular attention should be paid to the Southern Creek Flat area as a possible previous Aboriginal burial site; 5. A dedicated section of any future site management plan should be included that clearly identifies the protocols that must be followed if human remains were ever uncovered anywhere on the site; 6. These protocols should also be included in site induction programs and general training manuals for field staff on site;

Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non- exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC. © 2007

6 Kanmantoo Callington Community Consultative Committee

CHAIRMAN’S UPDATE

31 May 2007

1 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

Issues for 31 May 2007

1. Committee membership

2. Schedule of presentations

3. Progress on issues

4. Chair’s reports - recommendations

x noise and ore processing

5. Sequence of events

6. Opportunities for comment

2 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

MEMBERSHIP OF THE KANMANTOO CALLINGTON CCC

Portfolio Name Comments

1 Independent Chair; Bob Goreing Confirmed 2 Hillgrove Resources (the Dale Ferguson, GM- Confirmed company); Exploration and Operations 3 Local landowner that may be Alexander Wells Confirmed directly affected 4 Local landowner that may be Bill Filmer Confirmed directly affected 5 Environment; Harry Seager Confirmed 6 Kanmantoo township; Marilyn Deutrom Confimed (Chair - Kanmantoo Grounds Committee) 7 Callington township; Neil Turner Confirmed (President – Callington Oval Committee) 8 Heritage and culture; Kathryn Roberts Confirmed 9 Health and community Genevieve Hebart Confirmed services; (Manager – Hills Areas Health Services) 10 Schools and other education Fiona Challen Confirmed services; (Callington School Council) 11 District Council of Mt Barker, Cr Lyn Stokes Confirmed an elected Member; 12 State MP for the area, or Mark Goldsworthy Confirmed their nominated MP Alternate- Airlie representative; Keen 13 Federal MP for the area, or Hon Alexander Confirmed their nominated Downer MP, Alternate- Geoff representative Minister for Foreign Hopwood Affairs Alternate 14 PIRSA - Mineral Resources Dr Paul Heithersay, Confirmed (Director of Mines or his Director PIRSA, Alternate – Ted nominee). Minerals and Tyne or Sam Petroleum Walker

To contact the Chair – call mob 0418 816 788

3 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

SCHEDULE FOR PRESENTATION OF SPECIALIST STUDIES

Date Study Sub- Presenter Consultant 17 May Noise Sonus Chris Turnbull, 2007 Matt Dewhurst

Processing Hillgrove Marty Adams Resources 31 May Visual Wax Designs Warwick 2007 Keates, Brett Grimm

Socio-economic Enesar Susannah Kenny

7 June Mining Hillgrove Marty Adams 2007 Resources Air, odour, GHG Tonkin Chris Purton Engineering 14 June Groundwater REM Paul Howe 2007 Traffic Maunsell Steve Mitchell

21 June Integrated Coffey Mining Chris Lane 2007 Waste Landform Mine Closure Enesar David Browne

Note: schedule is subject to availability of specialists and completion of reports.

4 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

PROGRESS ON ISSUES

Issue Name Community Presentation Chair’s Portfolio Brief Report Leadership 1 Flora Complete 22 March Complete Harry 2007 2 Fauna Complete 19 April Complete Harry 2007 3 Non- Complete 19 April Complete Kathyrn Indigenous 2007 Heritage 4 Aboriginal Complete 3 May 2007 Complete Kathryn heritage 5 Noise Complete 17 May Complete Alex and 2007 Bill

6 Processing Complete 17 May Complete Neil 2007 7 Visual Complete 31 May Alex and 2007 Bill 8 Socio- Complete 31 May Marilyn economic 2007 and Neil 9 Mining 7 June Bob 2007 10 Air, odour, 7 June Alex and GHG 2007 Bill 11 Groundwater 14 June Harry 2007 12 Traffic 14 June Marilyn 2007 and Neil 13 Integrated 21 June Harry Waste 2007 Landform 14 Mine Closure 21 June Lyn 2007

Other Committee roles:

x Secretariat - Stephen x Communications – Lyn

5 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

CHAIR’S REPORT No 5 Date: 22 May 2007 Topic: Kanmantoo Copper Mine Environmental Noise Assessment

Report prepared for Hon Paul Holloway MLC, Minister for Mineral Resources Development cc Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources.

Key recommendations x A hierarchy of responses to potential noise issues should be recognized that includes: a. Restricting noise at source to acceptable levels (as defined by strict standards) through measures such as: o Choosing plant and equipment that is less noisy; and o Using noise suppression technology; b. Managing noise to restrict carriage (as defined by strict standards) through measures such as; o Building noise barriers between noise sources and residential locations; o Locating plant and equipment with consideration to reducing the potential for noise emissions; and o Restricting certain activities to daylight hours; x A clear distinction should be made between measures to be applied during construction and after commissioning; x Special consideration should be given to using new ‘white noise’ technology for reversing warnings on mobile plant; x Particular attention should be paid to ensuring that noise and vibration levels associated with blasting meet Australian standards. Additional information for the community, more specifically identifying these standards, should be provided. Monitoring of noise and vibration levels, and regular reporting to the community, should be a feature of the mine and operations management plan; x A special recognition of ‘nuisance noise’ should be included in the mine and operations management plan, with potential sources identified and specific mention of how these will be managed; and x A community complaints process should be established with performance targets agreed with the community. A link should be made to the role of the Community Consultative Committee, through a standing item that includes the regular reporting of incidents.

Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007

6 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

CHAIR’S REPORT No 6 Date: 22 May 2007 Topic: Kanmantoo Copper Project - Ore Processing

Report prepared for Hon Paul Holloway MLC, Minister for Mineral Resources Development cc Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources.

Key recommendations x It is noted that ore processing (like geology and mining) is a fundamental consideration of the project. Each of the presentations related to issues such as noise, water or heritage for example, will influence the design, function and management of these core elements; x Recommendations in this section will therefore largely be confirming or reiterating outcomes from other targeted studies.

For example: Environmental and safety recommendations identified in dedicated presentations (eg noise, water etc) should be reflected in the design and function of the ore processing facilities. Appropriate standards should be identified and met; x A special effort should be made to ensure that the community understands the measures that are used to decide between various alternatives in the project design, function and management of key facilities. For example, a clear explanation should be presented related to how costs and benefits are included in infrastructure decisions, including costs and benefits that accrue (or may accrue) to the community; and x Public safety should be a priority for the project and measures taken in this regard such as controlling access to site and taking appropriate responsibility for off-site functions (eg transport);

Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007

7 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

Sequence of events

Community Forum Exploration mid 2005

Pre-feasibility Study March 2006

Community Definitive Feasibility December 2006 Consultative Study Committee x Scope issues and Engineering studies options Environmental studies x Identify priorities and Economic studies comment Infrastructure studies x Shape directions through recommendations Mining Proposal (Mining June – July 2007 Lease Application) to PIRSA

Detailed analysis and Mandated public x Mandated call for consolidated response consultation public submissions x S 35A Mining Act Mining and Rehabilitation Plan agreed by PIRSA

Final Project Appraisal

Decision to proceed / about September 2007 not to proceed

YES NO

Construction STOP

Commissioning

Operations

Decommissioning / mine closure

© 2007

8 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 31 May 2007

Opportunities for individuals to provide comments, identify options and submit recommendations

At any time, directly through:- x PIRSA; x The Minister for Mineral Resources Development; x Local Elected Member o Local government; o State government; or o Federal government.

Through the Kanmantoo Callington CCC:-

x Directly from the gallery at meetings; x Via correspondence to the Chair; x Via the Community Champions; x Via the Independent Chair;

At the call for submissions from the Minister to a Mining Proposal (Mining Lease Application); x Via CCC; x Directly to PIRSA.

9 Kanmantoo Callington Community Consultative Committee

CHAIRMAN’S UPDATE

7 June 2007

1 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 7 June 2007

Issues for 7 June 2007

1. Committee membership

2. Progress on issues

3. Chair’s reports - recommendations

x Visual x Social and economic

4. Opportunities for comment

2 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 7 June 2007

MEMBERSHIP OF THE KANMANTOO CALLINGTON CCC

Portfolio Name

1 Independent Chair; Bob Goreing 2 Hillgrove Resources Dale Ferguson, GM- Exploration (the company); and Operations 3 Local landowner that Alexander Wells may be directly affected 4 Local landowner that Bill Filmer may be directly affected 5 Environment; Harry Seager 6 Kanmantoo township; Marilyn Deutrom (Chair - Kanmantoo Grounds Committee) 7 Callington township; Neil Turner (President – Callington Oval Committee) 8 Heritage and culture; Kathryn Roberts 9 Health and community Genevieve Hebart services; (Manager – Hills Areas Health Services) 10 Schools and other Fiona Challen education services; (Callington School Council) 11 District Council of Mt Cr Lyn Stokes Barker, an elected Member; 12 State MP for the area, Mark Goldsworthy MP or their nominated Alternate- Airlie Keen representative; 13 Federal MP for the Hon Alexander Downer MP, area, or their nominated Minister for Foreign Affairs representative Alternate Geoff Hopwood 14 PIRSA - Mineral Dr Paul Heithersay, Director Resources (Director of PIRSA, Minerals and Petroleum Mines or his nominee). Alternate – Ted Tyne or Sam Walker

To contact the Chair – call mob 0418 816 788

3 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 7 June 2007

PROGRESS ON ISSUES

Issue Name Community Presentation Chair’s Portfolio Brief Schedule Report Leadership 1 Flora Complete 22 March Complete Harry 2007 2 Fauna Complete 19 April Complete Harry 2007 3 Non- Complete 19 April Complete Kathyrn Indigenous 2007 Heritage 4 Aboriginal Complete 3 May 2007 Complete Kathryn heritage 5 Noise Complete 17 May Complete Alex and 2007 Bill

6 Processing Complete 17 May Complete Neil 2007 7 Visual Complete 31 May Complete Alex and 2007 Bill 8 Socio- Complete 31 May Complete Marilyn economic 2007 and Neil 9 Mining Complete 7 June Bob 2007 10 Air, odour, Complete 7 June Alex and Green house 2007 Bill gasses 11 Groundwater 14 June Harry 2007 12 Traffic 14 June Marilyn 2007 and Neil 13 Integrated 21 June Harry Waste 2007 Landform 14 Mine Closure 21 June Lyn 2007

Other Committee roles:

x Secretariat – Stephen Marlow x Communications – Lyn

4 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 7 June 2007

CHAIR’S REPORT No 7 Date: 7 June 2007 Topic: Kanmantoo Copper Project – Visual Impact Assessment

Report prepared for Hon Paul Holloway MLC, Minister for Mineral Resources Development cc Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources.

Key recommendations

1. The recommendations of the visual impact assessment should be accepted.

These include: o landscaping of the proposed integrated waste facility to mimic the natural undulating landscape; o extensive planting of appropriate vegetation to screen aspects of the site; o the inclusion of valleys and gullies as refuges for vegetation and fauna habitat towards the lower levels of the integrated waste facility; o avoidance of light spillage through careful design and management of lighting where night operations were contemplated; and o the inclusion of a colour scheme in building specifications that blends with the natural background colouring.

2. Whilst it was understood that the viewpoints for purposes of the study were located at publicly accessible sites, the amenity of private landowners should also be seen as important and taken into account in the design of various landscapes;

3. The opportunity to improve the visual impact of the existing waste rock dump as seen from the freeway, should be a priority in the landscape planning;

4. The appeal of rolling grasslands / pastures as well as native vegetation should be considered in possible landscape futures through consultation with the local community.

Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007

5 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 7 June 2007

CHAIR’S REPORT No 8 Date: 7 June 2007 Topic: Kanmantoo Copper Project – Social and Economic Impact Assessment

Report prepared for Hon Paul Holloway MLC, Minister for Mineral Resources Development cc Dr Paul Heithersay, PIRSA and Dale Ferguson, Hillgrove Resources.

Key recommendations

1. The recommendations of the social and economic impact assessment should be accepted.

These include: o Holding supplier briefings with local suppliers; o Various training and employment initiatives; and o Engaging in discussions with various community service providers including emergency services, police, schools and hospitals to assist in the future allocation of resources.

2. Whilst the difficulties related to determining economic costs and benefits are acknowledged, some further assessment in this area should be conducted to assist forward planning in aspects such as local business participation, jobs growth, schools and other infrastructure provision;

3. Where possible, further information related to the potential impact of the proposed mine redevelopment on property prices in the area should be provided for the community. Particular attention should be paid to a differentiation between the township properties and rural holdings around the existing mine site.

Important note: The Chair’s report includes a range of views facilitated through the Kanmantoo Callington Community Consultative Committee. It is a non-exclusive community view, provided without prejudice and in accordance with the Terms of Reference for the Kanmantoo-Callington CCC.

© 2007

6 Kanmantoo Callington Community Consultative Committee CHAIRMAN’S UPDATE 7 June 2007

Opportunities for individuals to provide comments, identify options and submit recommendations

At any time, directly through:- x PIRSA; x The Minister for Mineral Resources Development; x Local Elected Member o Local government; o State government; or o Federal government.

Through the Kanmantoo Callington CCC:-

x Directly from the gallery at meetings; x Via correspondence to the Chair; x Via the Community Champions; x Via the Independent Chair;

At the call for submissions from the Minister to a Mining Proposal (Mining Lease Application); x Via CCC; x Directly to PIRSA.

7 Appendix 3 An Economic Evaluation of the Kanmantoo Copper Mining and Rehabilitation Project

Commercial in Confidence

Prepared by Economic Research Consultants* 30th July

Executive Summary Hillgrove Resources Limited (HRL) is undertaking a definitive feasibility study of a proposal to redevelop the old Kanmantoo Copper Mine at Kanmantoo. Part of this study involves further defining the economic benefits of the project for the region and the state. For purposes of this analysis, the region will include the area of scope of the Adelaide Hills Regional Development Board (exactly covering the Adelaide Hills Council and District Council of Mt Barker local government areas) and that part of the Murraylands Regional Development Board area from Kanmantoo to Murray Bridge. This area will be the main area impacted by the development.

The key sources of benefits arising from the project will be derived from economic activity generated through: x The discovery, mining and processing of the raw material – material which if not for the project is unlikely to be extracted in the foreseeable future; x Other inputs into the processing and mining activity; and x Other community activity promoted by the advocacy of the mining project such as enhanced tourism activity;

This paper provides an evaluation of the potential magnitude of these benefits, focusing on the outcomes from a regional and South Australian perspective. The assessment is based on information provided by the project proponents, and a number of modelling assumptions applied to accepted methodologies.

The project being investigated in this report is a copper mining activity. The project being investigated in this report is a copper mining activity. The project involves a construction and investment expenditure of over $140m, of which over $130m is expected to be spent in 2007 - 2008. Construction activity is estimated to directly provide of the order of 300-400 person yrs of employment on site. The operations of the mine will involve operating costs of some $35-70 million per year over a planned operations phase of around 8 years. The operations of the project are expected to directly employ a workforce of 65 people (plus of the order of 90 employees of mining contractors on site).

The project will have a further range of benefits as a result of the flow through or economy wide effects of these expenditures. These impacts, direct and indirect, have been modelled based on data inputs which describe the characteristics of the project as provided by HRL.

* Barry Burgan has undertaken this review in his capacity as a Director of Economic Research Consultants. This study, while embodying the best efforts of the investigator, is but an expression of the issues considered most relevant, and neither the individual nor the associated organisations can be held responsible for any consequences that ensue from the use of the information herein. Economic Evaluation - Kanmantoo Copper Mining and Rehabilitation Project Page 2

In summary, the following outcomes are estimated from the effects above: o South Australia – based on an input / output (IO) model framework, the project will increase the (net) present value of the South Australian Gross State Product (GSP) by the order of $0.26 billion (in present value terms) over a 10 year period (1 year of construction investment and 8 years of operation in 2007 prices). The project will create in the State, in excess of 1,500 jobs in 2007/08, the main year of mine construction, and 400-500 annual jobs during operations. o Regional – the project will have a significant impact on the regional area of Outer Adelaide – though direct and indirect employment creation. It is estimated that the project would create an increase of jobs numbers in the region in the order of 300- 400 in the construction year and in the order of 200 jobs per annum over the subsequent 8 years. Estimated wages and incomes generated in the region as a result of this activity will be $20-$30 million per annum, with a present value over 10 years of $180 million. It is further suggested that the actual outcomes could be greater if more regionally based industry is encouraged to take advantage of the opportunities presented – generating an additional impact in the region in the order of $18 million dollars and supporting and additional 20 jobs per year on average.

The outcomes of the modelling are summarised in Table A:

Table A: Estimated Economic Activity – Outer Adelaide region and South Australia – Project Investment and Operations – 10 year impact Regional Impact Alter Ͳ State Base native Impact LocalExpenditure($'m) Investment 46.5 52.3 96.2 Operating 181.1 199.2 299.6 ValueAddedImpact($m) Direct Investment 24.9 27.9 50.5 Operating 28.5 28.5 36.5 Indirect Investment 16.3 18.3 70.1 Operating 112.3 124.1 108.2 Total Investment 41.1 46.2 120.6 Operating 140.8 152.6 144.7 Total 181.9 198.8 265.3 EmploymentImpact(Personyears) Direct Investment 347 390 875 Operating 434 434 501 Indirect Investment 168 189 452 Operating 1,221 1,368 3,360 Total Investment 516 579 1,327 Operating 1,655 1,802 3,861 Total 2,171 2,381 5,188

Commercial in Confidence Economic Evaluation - Kanmantoo Copper Mining and Rehabilitation Project Page 3

The base case represents the modelling outcomes based on standard inputs from local suppliers. The alternative case indicates the potential outcomes resulting from the provision of additional products and services (including employment) derived directly from the region. This option involves building deeper regionally based supply chains and would require leadership by a regionally based group such as the Adelaide Hills Regional Development Board. Note that this proposal compliments, but does not duplicate, the work of the Industry Capability Network (ICN) SA, a South Australian Government agency that seeks to ensure that major projects provide opportunities for the State’s product and service providers.

Background

Description of Project

The Kanmantoo Copper Mining and Rehabilitation Project is located within South Australia , about 45 km east-southeast of Adelaide within the Mount Barker District Council Area (Figure F002). The area currently is semi-rural with pasture and cropping land interspersed with small hobby farms, residential lots and industrial sites.

Mining has occurred spasmodically on the site since the late 1800’s. More recently in the early 1970’s, Kanmantoo Mines Limited commenced open cut mining over the northernmost workings of the earlier Kanmantoo mines. The mine had operated for six years until low copper prices forced the mine to close. The basic mining infrastructure remained on the site from these operations (including an open pit, old concentrating plant and a partially revegetated waste rock stockpile and tailing storage facility).

This paper represents an evaluation of the economic activity associated with the HRL proposal to redevelop the Kanmantoo Copper Mine, using open pit mining techniques. The study supposes an initial mine life of eight years, with the concentrate to be transported by road to the Port of Adelaide for shipment to an overseas smelter.

Construction of the project is scheduled to begin late 2007 with mining anticipated to commence in late 2008. On the basis of current resource estimates and mining rates, mining is expected to continue for eight years, however the project life may be extended if further reserves are discovered.

Table 1 provides the estimated expenditure patterns required to undertake the project as estimated by the proponents:

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Table 1: Estimated Expenditure – Project Investment and Operations 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TOTAL InvestmentExpenditure($'000) ManagementExpenditure 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 500 8,500 Spendonbuildingconstruction 90,000 90,000 SpendonEquipment 15,000 15,000 Spendonmineconstruction 20,000 20,000 Spendonelectricityconnection 500 3,000 3,500 SpendonRoadworks 2,000 2,000 Other 1,000 1,000 TotalInvestmentSpend 1,500 131,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 500 140,000 OperatingExpenditure($'000) Wages Administration 400 600 930 930 930 930 930 930 930 700 8,210 OreProcessing 1,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,300 20,800 Mining 1,000 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,200 12,700 Maintenance 600 1,100 1,100 1,100 1,100 1,100 1,100 1,100 900 9,200 Electricity 1,200 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,000 27,300 Transport Ͳ 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 48,000 MiningContract 13,000 36,000 37,000 47,000 49,000 41,000 31,000 25,000 10,000 289,000 OreProcessing(lesswages/power) 2,000 9,000 9,000 10,000 10,000 10,000 10,000 10,000 5,000 75,000 BusinessServices 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 9,000 Other 500 500 500 500 500 500 500 500 500 4,500 Total 400 20,900 61,830 62,830 73,830 75,830 67,830 57,830 51,830 30,600 503,710 OperatingEmployment(FTE's) Administration 4 8 8 8 8 8 8 8 8 6 OreProcessing 25 29 29 29 29 29 29 29 25 Mining 10 13 13 13 13 13 13 13 10 Maintenance 8 14 14 14 14 14 14 14 8 Total 4 51 64 64 64 64 64 64 64 49 Source: Project Proponents

Benefits Perspective The construction of the mining and processing activity at Kanmantoo will deliver a number of benefits directly to the host community, the region and to the state.

In the main these benefits are through the creation of economic activity – the use of a resource that would otherwise be unutilised to support incomes and jobs. This paper provides an indicative assessment of the degree of activity that can be expected to be generated through the development.

The activity will be generated from the following impacts: x The discovery, mining and processing of the raw material – material which if not for the project is unlikely to be extracted in the foreseeable future; x Other inputs into the processing and mining activity; and x Other community activity promoted by the advocacy of the mining project such as enhanced tourism activity;

The key driver of benefits from the project will be the level of expenditure that occurs in the region (including the local community) and the state.

HRL has provided the following expenditure perspective, illustrated for a base scenario of likely outcomes in Table 2:

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Table 2: Expenditure by region – Base Scenario ProportionofSpendbyRegion Outer Adelaide Restof InterͲ Region State OtherAus national Total InvestmentExpenditure ManagementExpenditure 80% 15% 5% 100% Spendonbuildingconstruction 40% 40% 20% 100% SpendonEquipment 20% 60% 20% 100% SpendonMineConstruction 30% 50% 20% 100% Spendonelectricityconnection 30% 70% 100% SpendonRoadworks 70% 30% 100% Other 0% TotalInvestmentSpend OperatingExpenditure Wages 0% Administration 70% 30% 100% OreProcessing 80% 20% 100% Mining 75% 25% 100% Maintenance 85% 15% 100% Electricity 100% 100% Transport 30% 10% 60% 100% MiningContract 50% 35% 15% 100% OreProcessing(lesswages/power) 30% 50% 15% 5% 100% BusinessServices 10% 70% 20% 100% Other 30% 60% 10% 100% Total OperatingEmployment Administration 70% 30% 100% OreProcessing 80% 20% 100% Mining 75% 25% 100% Maintenance 85% 15% 100% Source: Project Proponents

There is the potential to increase the benefits to the region by a targeted program to focus local suppliers on the opportunities presented. Such a program would require local leadership, for example through the auspices of the Adelaide Hills Regional Development Board, and coordination with other agencies such as the Industry Capability Network (ICN) SA. . The proponent believed that the expenditure patterns could vary in this instance to those illustrated in Table 3:

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Table 3: Expenditure by region – Alternative Scenario ProportionofSpendbyRegion Outer Adelaide Restof InterͲ Region State OtherAus national Total InvestmentExpenditure ManagementExpenditure 85% 10% 5% 100% Spendonbuildingconstruction 45% 35% 20% 100% SpendonEquipment 20% 60% 20% 100% SpendonMineConstruction 35% 45% 20% 100% Spendonelectricityconnection 35% 65% 100% SpendonRoadworks 75% 25% 100% Other 0% TotalInvestmentSpend OperatingExpenditure Wages Administration 70% 30% 100% OreProcessing 80% 20% 100% Mining 75% 25% 100% Maintenance 85% 15% 100% Electricity 100% 100% Transport 40% 60% 100% MiningContract 55% 30% 15% 100% OreProcessing(lesswages/power) 35% 45% 15% 5% 100% BusinessServices 30% 50% 20% 100% Other 35% 55% 10% 100% Total OperatingEmployment Administration 70% 30% 100% OreProcessing 80% 20% 100% Mining 75% 25% 100% Maintenance 85% 15% 100% Source: Project Proponents

Direct Benefits

South Australia

Direct Employment Direct benefits include the creation of jobs through the investment in, and operations of, the project. The employment of labour is a cost to the operators, however, from a local community perspective, job creation either reduces unemployment or provides a dynamic for growth and therefore is considered a benefit.

In addition to this direct employment (and the wages generated), employment will be created through purchases of goods and services as a result of the operation.

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Table 4: Estimated Expenditure within South Australia from Project 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TOTAL Expenditure($'m) Investment 1.5 131.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 Operating 0.4 20.9 61.8 62.8 73.8 75.8 67.8 57.8 51.8 30.6 Op Employment (FTE's) 4 51 64 64 64 64 64 64 64 49 LocalExpenditure($'m) Investment 0.5 97.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 96.2 Operating 0.4 18.3 50.8 51.6 60.9 62.6 55.8 47.3 42.2 24.3 299.6 Op Employment (FTE's) 4 51 64 64 64 64 64 64 64 49 ValueAddedImpact($m) Direct Investment 0.3 51.2 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.2 50.5 Operating 0.4 3.2 6.0 6.0 6.0 6.0 6.0 6.0 6.0 5.1 36.5 Indirect Investment 0.4 70.5 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.4 70.1 Operating 0.3 7.7 18.1 18.3 20.8 21.2 19.5 17.4 16.1 10.5 108.2 Total Investment 0.6 121.7 1.2 1.2 1.2 1.2 1.2 1.2 1.2 0.6 120.6 Operating 0.7 10.9 24.2 24.4 26.8 27.3 25.6 23.4 22.2 15.6 144.7 Total 1.3 132.6 25.3 25.5 28.0 28.4 26.7 24.6 23.3 16.2 265.3 EmploymentImpact Direct Investment 3 830 6 6 6 6 6 6 6 3 875 Operating 4 - 64 64 64 64 64 64 64 49 501 Indirect Investment 4 395 7 7 7 7 7 7 7 4 452 Operating 3 243 398 404 472 484 436 377 342 201 3,360 Total Investment 7 1,225 13 13 13 13 13 13 13 6 1,327 Operating 7 243 462 468 536 548 500 441 406 250 3,861 Total 14 1,468 475 481 549 560 513 454 418 257 5,188 Source: Modelled result based on Table 1-3

In summary, it is estimated that the project will directly result in a construction and investment spend of around $130 million in year 2. The operating spend is estimated at around $30-75 million per year for 8 years. It is estimated that around $100 million of the investment spend in year 2 (74%) will occur within the state, while around 80% of the total operating spend will be within the state – or around $50-$60 million from years 3-7.

Economy Wide Impacts The direct benefits indicated above create a demand stimulus within the economy as a whole, thereby creating impacts on other sectors of the economy. Three aspects of this impact are: o The increase in Gross Domestic Product and in final consumption generated by the project. Note that the impact of a project on expenditure is not a measure of benefit – it is the incomes and extra consumption generated through that expenditure that is the benefit. o The positive impact in terms of the flow-on effect of expenditure (both production and consumption based); and o The negative impact in terms of supply side effects, in that there is a limited supply of labour and capital to draw on, along with macroeconomic constraints (exchange

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rate) that will squeeze out some of the direct and flow on effects as estimated above. The outcome at the national level has not been measured in this study – which has focussed on the State and regional impacts. However it would be possible to undertake such an analysis using a Computable General Equilibrium model of the national economy1.

To measure the impacts at the state and regional level, measures of economy outcome per $ of final demand (called multipliers) are used. The multipliers used in this study are taken from input tables prepared for the State Government (commonly known as the RISE model Quantifying the Economic Contribution of Regional South Australia, A report prepared for Regional Communities Consultative Council, Local Government Association of SA and Regional Development SA, EconSearch Pty Ltd, 11 November 2005). These tables provide multipliers of the state of South Australia. Multipliers for the Outer Adelaide Region2 are used to estimate the regional impact, recognising that the bulk of the impact will be in the region of interest as defined earlier in this paper.

State

South Australia On this basis, the project is estimated to create in the State in excess of 1,400 jobs in the construction phases, and around 400-500 annual jobs during operations. Around 70 jobs are direct, and the balance indirect - including subcontractors in the mining operations. The project provides an estimated increase to Gross State Product of some $265 million in present value terms over 10 years, or an average of $26.5 million per year.

1 Economy wide models look at how an economic shock within an individual sector impacts upon as an economy as whole. These models acknowledge the linkages between the various sectors and the macroeconomic constraints that exists. The most commonly used models include input-output models (which track the linkages between one sector and another and show the flow through effects) and computable general equilibrium models which build on to this more basic framework with more sophisticated economic relationships. At the national level the enhancements are critical to undertaking representative modeling, but given that the macroeconomic constraints are less restrictive at he state or regional level input output modeling can be considered to give a reasonable order of magnitude estimate of economic outcomes for state and local impacts when shocks are appropriately applied.

2 The Outer Adelaide region is a broader region than that of interest in this study, covering the area from Kangaroo Island, through the Adelaide Hills and up to the lower mid-north. There are no available tables for the more specific region of interest, but it is believed that the multipliers for this broader region represent a reasonable representation of the multipliers for the more specific region that will be impacted by the project. Economic leakages from any given locality in the region are more likely to be to metropolitan Adelaide than to other localities, and this would already be captured in the multipliers. As such the use of the broader region multipliers are believed to be adequate for looking a the regional impact more narrowly defined.

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Table 5: Estimated Economic Outcomes for South Australia 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TOTAL Expenditure($'m) Investment 1.5 131.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 Operating 0.4 20.9 61.8 62.8 73.8 75.8 67.8 57.8 51.8 30.6 Op Employment (FTE's) 4 51 64 64 64 64 64 64 64 49 LocalExpenditure($'m) Investment 0.5 97.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 96.2 Operating 0.4 18.3 50.8 51.6 60.9 62.6 55.8 47.3 42.2 24.3 299.6 Op Employment (FTE's) 4 51 64 64 64 64 64 64 64 49 ValueAddedImpact($m) Direct Investment 0.3 51.2 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.2 50.5 Operating 0.4 3.2 6.0 6.0 6.0 6.0 6.0 6.0 6.0 5.1 36.5 Indirect Investment 0.4 70.5 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.4 70.1 Operating 0.3 7.7 18.1 18.3 20.8 21.2 19.5 17.4 16.1 10.5 108.2 Total Investment 0.6 121.7 1.2 1.2 1.2 1.2 1.2 1.2 1.2 0.6 120.6 Operating 0.7 10.9 24.2 24.4 26.8 27.3 25.6 23.4 22.2 15.6 144.7 Total 1.3 132.6 25.3 25.5 28.0 28.4 26.7 24.6 23.3 16.2 265.3 EmploymentImpact Direct Investment 3 830 6 6 6 6 6 6 6 3 875 Operating 4 - 64 64 64 64 64 64 64 49 501 Indirect Investment 4 395 7 7 7 7 7 7 7 4 452 Operating 3 243 398 404 472 484 436 377 342 201 3,360 Total Investment 7 1,225 13 13 13 13 13 13 13 6 1,327 Operating 7 243 462 468 536 548 500 441 406 250 3,861 Total 14 1,468 475 481 549 560 513 454 418 257 5,188 Source: Modelled result based on assumptions, and input output framework

Regional While the project will have a significant impact at a national and state level, in relative terms the project will particularly impact on the Outer Adelaide Region of South Australia – though direct and indirect employment creation. Note this area is comprised of major growing urban areas such as Mount Barker and is also close to Murray Bridge (an area with higher unemployment and lower income characteristics). Specifically the area of interest is the area of scope of the Adelaide Hills Regional Development Board (exactly covering the Adelaide Hills Council and District Council of Mt Barker local government areas) and that part of the Murraylands Regional Development Board area from Kanmantoo to Murray Bridge.

It is indicatively estimated that the region would house the majority of the direct jobs associated with the mining operations. Using the regional multipliers the project would create an annual level of some 200-250 jobs in the region.

Furthermore, these jobs will increase estimated wages and salaries and incomes generated in the region by the order of $20 million per annum. The implication would be an increase in property values and general levels of economic activity in the area.

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Table 6: Estimated Economic Outcomes for the Region – Base Scenario 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TOTAL Expenditure($'m) Investment 1.5 131.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 Operating 0.4 20.9 61.8 62.8 73.8 75.8 67.8 57.8 51.8 30.6 Op Employment (FTE's) 4 51 64 64 64 64 64 64 64 49 LocalExpenditure($'m) Investment 0.2 45.1 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.4 46.5 Operating 0.3 11.0 30.8 31.3 36.6 37.6 33.6 28.6 25.6 15.5 181.1 Op Employment (FTE's) 3 40 50 50 50 50 50 50 50 39 ValueAddedImpact($m) Direct Investment 0.1 24.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.2 24.9 Operating 0.3 2.5 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.0 28.5 Indirect Investment 0.1 15.8 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.1 16.3 Operating 0.1 6.6 19.1 19.4 22.7 23.3 20.9 17.8 15.9 9.7 112.3 Total Investment 0.1 40.1 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.3 41.1 Operating 0.4 9.1 23.8 24.1 27.4 28.0 25.6 22.5 20.6 13.7 140.8 Total 0.5 49.2 24.5 24.8 28.1 28.7 26.2 23.1 21.3 14.0 181.9 EmploymentImpact Direct Investment 1 315 4 4 4 4 4 4 4 2 347 Operating 3 40 50 50 50 50 50 50 50 39 434 Indirect Investment 0 148 3 3 3 3 3 3 3 1 168 Operating 1 50 150 152 177 181 163 141 127 79 1,221 Total Investment 2 463 7 7 7 7 7 7 7 3 516 Operating 4 90 200 202 227 232 214 191 178 117 1,655 Total 5 553 207 209 234 238 221 198 185 121 2,171

Table 7 illustrates revised modelling for a successful targeting of local suppliers to provide services to the mine. It suggests that employment and income outcomes could be increased by a further 10%.

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Table 7: Estimated Economic Outcomes for Mount Barker Region – Alternative Scenario 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TOTAL Expenditure($'m) Investment 1.5 131.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 Operating 0.4 20.9 61.8 62.8 73.8 75.8 67.8 57.8 51.8 30.6 Op Employment (FTE's) 4 51 64 64 64 64 64 64 64 49 LocalExpenditure($'m) Investment 0.2 50.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.4 52.3 Operating 0.3 12.0 33.8 34.4 40.2 41.3 36.9 31.4 28.1 17.1 199.2 Op Employment (FTE's) 3 40 50 50 50 50 50 50 50 39 ValueAddedImpact($m) Direct Investment 0.09 27.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.2 27.9 Operating 0.3 2.5 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.0 28.5 Indirect Investment 0.1 17.8 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.1 18.3 Operating 0.1 7.2 21.1 21.5 25.1 25.8 23.1 19.7 17.6 10.8 124.1 Total Investment 0.2 45.3 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.4 46.2 Operating 0.4 9.7 25.8 26.2 29.8 30.5 27.8 24.4 22.3 14.8 152.6 Total 0.5 55.0 26.5 26.9 30.5 31.2 28.5 25.1 23.0 15.1 EmploymentImpact Direct Investment 1 355 4 4 4 4 4 4 4 2 390 Operating 3 40 50 50 50 50 50 50 50 39 434 Indirect Investment 1 167 3 3 3 3 3 3 3 1 189 Operating 1 56 168 170 197 202 183 158 143 89 1,368 Total Investment 2 522 7 7 7 7 7 7 7 4 579 Operating 4 96 218 221 248 253 233 208 194 128 1,802 Total 6 618 225 228 255 260 240 216 201 132 2,381

Commercial in Confidence Appendix 4 Population projections for the Murraylands and Mount Barker LGA's Net Area Year growth 2006 2011 2016 Murraylands LGA Berri and Barmera (DC) 11,346 11,318 11,235 -111 Karoonda East Murray (DC) 1,360 1,363 1,365 5 Loxton Waikerie (DC) 12,353 12,355 12,283 -70 Mid Murray (DC) 8,046 8,039 7,917 -129 Murray Bridge (RC) 16,363 16,146 15,787 -576 Renmark Paringa (DC) 9,948 10,005 10,006 58 Southern Mallee (DC) 2,253 2,224 2,218 -35 The Coorong (DC) 6,003 5,898 5,785 -218 Total 67,672 67,348 66,596 -1,076 Mount Barker LGA Mount Barker (DC) - Central 16,389 17,768 19,148 2,759 Mount Barker (DC) Bal 8,524 8,926 9,319 795 Total 24,913 26,694 28,467 3,554 Source: Department for Transport and Urban Planning 2007 (http://dataserver.planning.sa.gov.au/ popprojection/). Note: These figures do not take into account 2007 land releases.

1 Enesar Consulting Pty Ltd 5000_02_Appendix_3.doc/August 10, 2007 Appendix 8

Kanmantoo Copper Project Indigenous Archaeology and Cultural Heritage Assessment Indigenous Archaeology and Cultural Heritage Assessment

Kanmantoo Copper Ore Project

Final Report to Enesar Consulting Pty Ltd

Philip Fitzpatrick

June 2007 Contents

Ownership and Disclaimer 3

Executive Summary 4

Introduction 5

Objectives 7

Regional Context 8

Methodology 12

Conclusions and Recommendations 21

Bibliography 24

Appendix 1: Recorded Sites in the General Project Region 27

Appendix 2: Summary of the Tjirbruki Myth 28

Appendix 3: The Legislative Framework 30

2 Ownership and Disclaimer

Ownership of the intellectual property rights of any ethnographic information provided by Indigenous people for this report remains the property of those persons.

Ownership of the primary materials created in the course of the research for this report remains the property of the author.

Ownership of this report remains the property of Enesar Consulting Pty Ltd and Hillgrove Resources Limited.

This report may not be used, sold, published, reproduced or distributed wholly or in part without the prior written consent of Enesar Consulting Pty Ltd or Hillgrove Resources Limited.

The advice and opinions contained in this report are those of the author and do not represent the opinions of Enesar Consulting Pty Ltd or Hillgrove Resources Limited. The advice and opinions contained in this report do not constitute legal advice.

The author is not accountable for omissions and inconsistencies that may result from information that was not forthcoming prior to the preparation of this report.

3 Executive Summary

Hillgrove Resources Limited is proposing to redevelop the Kanmantoo Copper Mine, 1.5 kilometres south west of Kanmantoo and 44 kilometres east of Adelaide in South Australia.

The current scope of the project is for mining and processing of the iron oxide copper-gold deposit to produce concentrate over an initial mine life of eight years. The proposed mine will consist of an open pit, integrated waste landform comprising waste rock and tailings storage and associated infrastructure. Processing of the ore will be by conventional crushing, grinding and flotation. Power for the mine will be sourced from the existing Kanmantoo 132 kV substation.

Hillgrove Resources have been advised by Primary Industries and Resources SA (PIRSA) that the project will be approved under the Mining Act 1971. The key assessment documentation under the Mining Act is the Mining Lease Proposal (MLP). The MLP will be placed on public exhibition and referred to relevant State Government agencies for comment. PIRSA will consider available information including the Mining Lease application, MLP and submissions on the MLP in making the decision to approve the project.

This report provides an assessment of information in relation to the Indigenous archaeology and cultural heritage of the project area for inclusion in the MLP. It combines the findings of a desktop assessment (2006) and a field survey (2007).

The report concludes that while there were no sites of Indigenous archaeological or cultural heritage significance discovered in the project area there is one creek flat outside the mine and infrastructure areas where there is a remote potential for buried archaeological deposits, including burials, to be discovered. If this area is developed later in a manner that involves the excavation of the sub-soil a suitable archaeological monitoring program should be instituted.

4 Introduction

Hillgrove Resources Limited (HRL) is the holder of Exploration Licence 3277, which stretches from Tungkillo in the north to Woodchester in the south. Hillgrove Copper Pty Ltd is the holder of Exploration Licence 3298, which lies in the immediate area surrounding the Kanmantoo Mine. Hillgrove Resources Limited also holds Exploration Licence 3232, which is located just west of Woodchester.

Hillgrove Resources Limited is proposing to redevelop the Kanmantoo Copper Mine, 1.5 kilometres south west of Kanmantoo and 44 kilometres east of Adelaide in South Australia. The redevelopment area includes all of EL 3298 together with some surrounding portions of EL 3277. The company also has a Mineral Claim (MC 5776) over the proposed mine area within EL 3298. The area of the claim corresponds to Mineral Lease (ML 5776) over the same area.

The proposed mine will consist of an open pit, integrated waste landform comprising waste rock and tailings storage and associated infrastructure. Processing of the ore will be by conventional crushing, grinding and flotation. Power for the mine will be sourced from the existing Kanmantoo 132 kV substation.

Hillgrove Resources have been advised by Primary Industries and Resources SA (PIRSA) that the project will be approved under the Mining Act 1971. The key assessment documentation under the Mining Act is the Mining Lease Proposal (MLP). The MLP will be placed on public exhibition and referred to relevant State Government agencies for comment. PIRSA will consider available information including the Mining Lease application, MLP and submissions on the MLP in making the decision to approve the project.

5 Figure 1: The development proposal

6 The current scope of the project is for mining and processing of the copper- gold deposit to produce concentrate over an initial mine life of eight years.

The purpose of this report is to provide an assessment of information in relation to the Indigenous archaeology and cultural heritage (history and anthropology) of the project area for inclusion in the MLP by combining the findings of a desktop assessment completed in 20061 and a recently conducted field survey.

The relevant legislation is the South Australian Aboriginal Heritage Act 1988. The Commonwealth Aboriginal and Torres Strait Islander Heritage Protection Act 1984 may be invoked if the State Act is perceived to be inadequate in some way. The Native Title Act 1993 is not relevant because the proposed mine development area occurs on freehold land over which Native Title has been extinguished.

Objectives

The objectives of this assessment are to:

Undertake a field assessment of the Indigenous archaeology and cultural heritage within the study area through a field survey.

Assess the potential effects of the mine and associated infrastructure on known or identified Indigenous sites and places of archaeological and cultural heritage significance and make recommendations regarding ongoing monitoring if required.

Describe the impact of the proposal on Indigenous archaeological and cultural heritage findings of local, regional, state or national significance.

1 Wood, V., (2006), The Proposed Kanmantoo Mine: Desk-top Indigenous and Non- Indigenous cultural heritage study, A report to Parsons Brinckerhoff, Adelaide.

7 Discuss ways in which impacts on Indigenous archaeological and cultural heritage sites can be minimised or mitigated, including possible ongoing methods for protecting such areas.

Describe potential residual impacts of the project infrastructure following implementation of mitigation measures and rehabilitation.

Identify uncertainties with respect to the Indigenous archaeology and cultural heritage impact assessment.

Regional Context

Wood (2006) concluded that the project area lies within the traditional territory of the Peramangk people. (The Peramangk are often referred to as the ‘Mount Barker tribe’ in the early literature). Their neighbours to the west were the Kaurna of the Adelaide plains. To the east and south on the Lower Murray River were the Nganguruku, Ngaralta, Warki, Portaulun, Jarildekald and Ramindjeri, who now collectively identify as the Ngarrindjeri. To the north in the northern Mount Lofty Ranges were the Ngadjuri.

These groups are unlikely to have recognised rigid tribal boundaries or have identified themselves as specific tribal groups. The basic social unit among most Aboriginal groups in Australia, including the project area, is that of the extended family, horde or clan.

Historical sources and archaeological evidence suggest that the abundant resources of the River Murray and its associated wetlands supported dense Aboriginal populations. According to the same sources the Mount Lofty Ranges and Adelaide plains supported much smaller populations. Both these populations were, nevertheless, rapidly and considerably reduced following the arrival of Europeans.

8 Figure 2: Cross section from Gulf St. Vincent to the Murray River showing group relationships and territories (Tindale 1974:61)

Even before the first European settlers arrived in South Australia in 1836 Aboriginal groups in the project area had been devastated by the rapid spread of diseases, particularly smallpox and venereal disease, from eastern Australia. Charles Sturt observed the effects of smallpox on the faces of Aborigines in the Lower Murray during his exploration of the river in 1830 (Sturt 1833).

The overland stock route between Adelaide and the River Murray traversed the Mount Lofty Ranges via Mount Barker and formed a base for the early exploration of grazing land by squatters in the Bremer Valley and surrounding areas. The first formal survey in South Australia was the Mount Barker Special Survey carried out by Captain Finnis and Duncan MacFarlane in January 1839 (Hignet and Co 1983). MacFarlane was instrumental in setting up the Paringa Mining Syndicate and competed with William Giles of the South Australia Company to mine copper in the Kanmantoo area around 1845 (Mills 1981). These activities also contributed to the rapid displacement of the Peramangk.

9 Draper (1985) notes that by 1844 the traditional Peramangk territory around Mount Barker was occupied by people from the Murray River who had moved in after the Peramangk had gone. He thought the Peramangk may have sought refuge in the but Chilman (1990) indicates that there would have been little refuge for them there. It is possible that a few individual Peramangk remained in the general area. William Barlow photographed members of the Mount Barker tribe in 1867 but it is most likely that most of them moved to the Adelaide area where rations and blankets and other attractions were available.

Most writers report that the Kaurna and Peramangk avoided contact where possible but this may be based on observations made in and around Adelaide where frequent conflicts occurred between the different groups visiting the town. It is also possible that the Peramangk may have been confused with visiting River Murray people whose enmity towards the Kaurna was more obvious.

This enmity was based on cultural differences, particularly in relation to ritual and initiation. The social organization of the Kaurna was based upon two exogamous matrilineal moieties called Kararu and Matheri. This system extends well to the north of Adelaide. The groups in this cultural bloc share a two-stage male initiation sequence that begins with circumcision and ends with cicatrisation of the chest or back in a ritual called Wilyeru (Teichelmann & Schurmann 1840). The river groups (except perhaps for the Nganguruku) did not practice circumcision and had a different social organization.

It is likely that the Peramangk occupied a transitory place between the circumcising and non-circumcising cultural blocs. Cawthorn (1926) refers to the practises of circumcision and cicatrisation amongst the Peramangk and further evidence is seen in the painting of a ‘warrior of Mount Barker’ by Angas (1847). Similar scars are also visible in the photographs taken by Barlow in 1867 and published by Tindale in 1974. On the other hand, Wood (2006) notes that the Peramangk had ongoing trading relationships with the

10 people from the Lower Murray River. Their association with the river people is also highlighted in their present day relationships.

A mission was established at Manunka in Nganguruku territory in 1902 but closed in 1911. The Swan Reach Mission was set up in 1925 and operated until 1945 when most of the residents were moved to Gerard near Berri. The few people who remained at Swan Reach finally abandoned it during the 1956 floods and dispersed to the various towns along the river.

Tindale (1974) noted that some Peramangk took advantage of their kinship ties with the river people and settled at Manunka when it was established. One of these was Jinny Christmas, a Peramangk woman from the Mount Torrens area.

Jinny married ‘King’ Jerry Mason at Manunka. Jerry was the son of King John and Queen Monarta, both well known Ngaralta people along the mid-Murray in the 1860s. According to Tindale, Jinny was the ‘mother’ of Mengoan (Henry Mason), who ‘was a kind of adopted son of Ngarkat origin. Mengoan’s father was out of Ngarkat country but had married a Peramangk woman. Mengoan as an infant had been reared as Nganguruku’. Tindale collected some details of the Tjirbruki myth (see below) from Jinny and Jerry’s son Robert Mason at . Those people now representing the Peramangk are mainly descendants of Jinny Christmas and Jerry Mason. Jinny’s antecedents illustrate the complex kinship and other relationships in the general project area.

According to Tindale (1953) Kanmantoo is derived from the words ‘kungma and tuk:o and literally means ‘different speech’. Tindale is uncertain about the particular language from which these words are derived but suspects they come from someone living ‘beyond the tribal boundary of the informant’. He notes that the place name Coomandook is derived from an inaccurate rendering of the same phrase. He thought that William Giles first used the name ‘Kanmantoo’. Tindale said that the name Paringa is derived from the

11 Plate 1: Jinny Christmas, widow of King Jerry, and her grandchildren (Bellchambers 1931:152). word pari (river) and the locative suffix ngka and literally means ‘near a river - presumably a reference to the Bremer River.

Methodology

Wood (2006) identified a number of prospective areas for investigation if a field survey was to be conducted. She also identified a range of site types based upon those known in the general area from the Register of Sites and Objects maintained by the Aboriginal Heritage Branch in the Division of Aboriginal Affairs and Reconciliation that could potentially occur in the project area. Wood said:

In terms of Indigenous heritage, as stated above, it is unlikely that intact sites will be located within the proposed development area given the level of landscape modification and low archaeological sensitivity of the landforms. However, in the area to the south of

12 the mineral lease, towards the railway line, there is a watercourse and this area may potentially contain Indigenous archaeological material, i.e. stone artefact scatters, hearths etc. The area may also retain some level of broader significance to the Aboriginal community and further consultation with the relevant communities would provide some guidance in this regard.

The site types potentially occurring in the area were identified as hearths, knapping floors, campsites, isolated artefact finds, scarred trees, middens, burial sites, art sites and stone arrangements. A major mythological track (Tjirbruki) was also noted as passing about 8 kilometres away from the project area. This myth records, in part, the creation of springs along the Mount Lofty ranges and Tjirbruki’s transformation into a rocky outcrop at Brukunga (see appendix).

Wood’s recommendations were adopted as a strategy for the field survey. The survey was conducted on 19 March 2007. The survey group consisted of the author, Ms Cynthia Hutchinson, Mr Sam Stewart and Mr John Popow. Ms Hutchinson is the widow of Richard Hunter a direct descendant of the Peramangk woman Jinny Christmas. Mr Stewart is the husband of one of Richard’s daughters. Ms Hutchinson and Mr Stewart represented the Mannum Aboriginal Community Association Incorporated (MACAI). This organization is recognised as the most appropriate group to represent the descendants of the Peramangk people. Mr Popow is the Hillgrove Resources Landholder Liaison Officer.

The survey group was somewhat constrained by the hazards created by the current drilling program and the existence of the open cut mine. Old hidden mine shafts were also a potential danger. For these reasons the major disturbed areas in the project area were not visited. Instead, the survey was concentrated in the area suggested by Wood between the mine and the Adelaide – Melbourne railway line.

13 Figure 3: Registered Aboriginal Sites in the general area

14 The survey group firstly drove around the study area noting areas of potential interest where archaeological and cultural sites might occur. Of particular interest were three small creeks in this area and the ridge along the edge of MacFarlane Hill. The former were thought to have the best potential for the discovery of archaeological sites and the latter for the discovery of art sites. No large Red Gums were noted in the study area where scars from bark removal might occur. Following the driven reconnaissance the survey group inspected the areas of interest on foot. Intermediate areas between and around these areas were also inspected on foot with the survey group separating to gain the most coverage possible.

The three creeks lie just west of the present mine waste dump and about 500 metres from the Paringa homestead buildings. They all converge a short distance away from the homestead and eventually drain into the Bremer River to the south. Patches of sedge or tussock grass occur at the head of each creek, possibly indicating underground water sources. Dams have been built in two of the creeks near the sedge and an active spring occurs just above the most northern of these dams. The sedge occurs at WGS84 0316793 6114986, 0316981 6114869 and 0316893 6115245 (figure 3). Because they are near water sources these areas have the most potential for the discovery of archaeological sites, including those types mentioned above. No sites were discovered in these areas however.

All of the campsites and artefact scatters in the Mount Lofty Ranges, as is the case elsewhere in South Australia, usually exhibit a range of lithic material. Some of this material, such as the better quality cherts and quartzites for cutting and chiselling tools and stone suitable for use in grinding, are often sourced elsewhere and carried to such sites. Sometimes good quality material is traded over large distances. None of this sort of material was seen in the vicinity of these water sources.

15 Figure 4. The main focal points during the field survey.

16 The only stone suitable for use by Aborigines for tool making seen in the area consisted of quartz eroded from the numerous strike ridges in the general area. Quartz fractures naturally and it is very difficult to identify man-made quartz artefacts unless they have been specifically shaped or reworked. Because of its extensive indiscriminate occurrence over the project area it was assumed that this material was almost certainly a natural occurrence.

Plate 2: The general area to the west of the present mine subject to more detailed survey seen from above the cave. Mount Barker in the background.

The ridge along the edge of MacFarlane Hill was also inspected on foot with particular attention being paid to a small cave located at WGS84 0317931 6114347 (figure 3) as a potential site of rock art (paintings) and occupational deposits. The ridge is comprised of andalusite, which is a silicate that has pebbly crystal surfaces. The interior walls of the cave were comprised of this material as well as a large quartz intrusion. This type of surface is unsuitable as a painting surface. A small (40 X 70 cms) area of relatively smooth surface on the cave wall had a few indiscernible marks on it that were caused by natural erosion. The floor of the cave was comprised of solid rock with no

17 Plate 3: The spring feeding into the creek system just south of the Paringa homestead. potential for the accumulation of occupational deposit. The location of the cave high on the steep ridge would have made it a difficult place to occupy and the fractured walls would have been dangerous (a recent rock fall was

Plate 4: The cave on the ridge on the side of MacFarlane Hill.

18 evident in the cave). Given the long occupation of the area by Europeans it is also unlikely that undiscovered rock art would exist in the cave.

A wide gully exists between the ridge and a stony hill to the west. A creek runs along this gully and fans out about 300 metres further downstream near the ruins of some old mine buildings. A creek flat in this area below the old buildings has the remote potential to reveal archaeological deposits, including burials, if any mining excavations take place there. Such flats, with their softer loamy soils, tend to be places where burials and associated archaeological material occur. A good example of this is to be seen at the registered site 6627-3595 (figure 3), originally recorded by the author, where excavations for garden loam revealed a burial site. These sites were often places of occupation until they were deserted following a death. As such places and the events that occurred there faded from memory they tended to be reoccupied until similar circumstances forced their desertion again. By this process multiple burials and occupation debris accumulated over possibly thousands of years. The flat is close to the Adelaide to Melbourne railway and adjacent to a main access track into the mine area. Leaving the flat undisturbed, or planting it with trees etc., may be a useful method to avoid the possible disturbance of any buried sites there. Should the area be required

Plate 5: The creek flat where burials might remotely occur.

19 later as part of the development it is recommended that such development proceed with suitable monitors from the Aboriginal community present. The monitors are aware of the processes required to deal with discoveries of buried archaeological material, including the need to call in archaeologists from the Aboriginal Affairs and Reconciliation Division of the Department of the Premier and Cabinet. The monitors would then assist with the recording and salvage of such material, including the relocation of burials.

The flats further along the creek to the east and closer to the present tailings area are narrower and would not be likely places for burials to occur.

The stony hill on the other side of the gully was also inspected but nothing was noted there either.

A paddock near the old tailing dam north of the Paringa homestead buildings was also inspected. This area is about 600 metres north of the creeks mentioned above and although heavily grazed and cultivated had a small stand of substantial mallee and could have been a potential source of isolated artefact occurrence. An inspection on foot and by vehicle revealed no archaeological evidence however.

The remaining accessible areas in the project area were inspected by vehicle and occasionally on foot. These areas have been subject to continuous grazing and cultivation; at the time of the survey they were quite bare with signs of erosion occurring, thus providing very good visibility for the survey group. As expected, no archaeological sites were noted in these areas.

Wood noted the passage of the Tjirbruki myth in the general area. As noted above this myth accounts for the creation of springs in the Mount Lofty Ranges. The spring at the head of the small creek at WGS84 0316893 6115245 was found to be still flowing despite the extremely dry conditions created by the current drought. There is no traditional information available about this spring and it would be speculation to link it with the Tjirbruki myth.

20 A direct view of Mount Barker is available from the cave mentioned above. Coles (pers. comm.) has noted that many Aboriginal sites in the Mount Lofty Ranges occur within line of sight of each other. Draper made an exhaustive investigation of Mount Barker in 1985 prior to the construction of a Police communications tower there but was unable to find any conclusive evidence of any traditional significance for it. Had Mount Barker been deemed to be of significance it could have been reasonably extrapolated that the cave in the project area could also be traditionally significant. A quartz strike ridge to one side gives the cave setting a particularly striking visual appearance.

Cave

Plate 6: The quartz strike ridge just south of the cave.

Conclusions and Recommendations

Based upon the exhaustive desktop study conducted by Wood and the results of the field survey conducted by the author and the representatives of the Peramangk descendants it was concluded that no identifiable Aboriginal sites exist in the project area.

21 For this reason there are no potential effects of the mine and associated infrastructure on Indigenous sites and places of archaeological and cultural heritage significance in the project area.

Because there are no identifiable sites in the project area the development will not cause any impact on Indigenous archaeological and cultural findings of local, regional, state or national significance.

For the same reason there is no requirement to institute or monitor mitigation measures to protect any sites from the impact of the proposed mine development.

There is, however, one identifiable uncertainty with respect to the Indigenous archaeology in the project area. A creek flat has the potential to reveal hidden archaeological sites, including burials, if it is disturbed. The flat is bounded by the points WGS84/GDA94 (1) 0317776 6114011, (2) 0317678 6114102, (3) 0317622 6114160, (4) 0317647 6114096, (5) 0317791 6113939 and (6) 0317813 6113952 (see plate 5 & figure4). The area is not part of any of the current designated proposed mining or infrastructure works.

Should the flat be developed in the future, and particularly if such development involves excavation of the soil surface, it would be wise to institute an archaeological monitoring program during the excavation phase involving representatives of the Peramangk community. The Peramangk community has carried out monitoring at other development sites and is aware of the procedures required should something of archaeological significance be discovered.

It would be expedient for Hillgrove Resources and the Peramangk to undertake an agreement prior to the institution of any monitoring program. Such an agreement could involve the training of Hillgrove Resources personnel so that they can recognise archaeological material, including burials. The Peramangk community can be contacted through the Mannum

22 Aboriginal Community Association Incorporated (MACAI) at Post Office Box 58, Nildottie, 5238 or telephone (08) 85701248.

If a burial site is intersected during excavations on the creek flat (or elsewhere in the mine development area) Hillgrove Resources must call a halt to work at the site and ensure the area is cordoned off so that the remains are not disturbed any further. The discovery must then be expeditiously reported to the South Australia Police at Murray Bridge (telephone 08 85356020). The police will take charge of the site and report the matter to the State Coroner’s Office. The Coroner’s Office will arrange for an inspection and assessment of the remains. If the remains are identified as Aboriginal the Coroner’s Office will notify the Aboriginal Heritage Branch in the Aboriginal Affairs and Reconciliation Division of the Department of the Premier and Cabinet. The Branch will liaise with Hillgrove Resources Limited and the Peramangk community to arrange for the salvage and possible relocation of the remains. In most cases remains are reburied nearby at a suitably site to protect their spiritual integrity. The Branch is skilled in these matters and will deal with any discovery of human remains efficiently and respectfully.

23 Bibliography

Angas, G.F. 1847 Savage life and scenes in Australia and New Zealand. Smith Elder and Co.,London.

Bellchambers, T. P. 1931 A Nature Lover’s Notebook, Nature Lovers’ League, Adelaide.

Butlin, N.G. 1983 Our original aggression. George Allen and Unwin, Sydney.

Chilman, J.K. and Jeffrey, W.F. 1975 Historic mines near Monarto. Monarto Development Commission, Aboriginal and Historic Relics Administration.

Chilman, J. K. 1990, Barossa Valley Aboriginal Heritage Survey: A Report to the Aboriginal Heritage Branch South Australian Department of Environment & Planning.

Clarke, P. 1991 Adelaide as an Aboriginal landscape. Aboriginal History 15(1):54-72.

Coles, R. and Draper, N. 1988 Aboriginal history and recently discovered art in the Mount Lofty Ranges. Torrens Valley Historical Journal 33:2-42.

Draper, N. 1985 Mt. Barker Summit: Assessment of Aboriginal Heritage Significance, August 1995. Aboriginal Heritage Branch, Adelaide.

Fitzpatrick, P. 1991 Kaurna’ Warra A selected wordlist from the language of the Kaurna People of the Adelaide Plains. Aboriginal Heritage Branch, Department of Environment & Planning.

Fitzpatrick, P. & Gara, T. 1994 Non-Claimant Native Title determination Application in the Truro Area (SN94/1 – Section 301, Hundred of Anna: A Report to the Native Title Unit, Aboriginal Legal Rights Movement.

Fitzpatrick, P. 1997 Aboriginal Cultural Heritage Sources Belair National Park: A Report for the Department of Environment & Natural Resources, October 1997.

Gara, T. 1988 Archaeological survey of the Tungkillo – Cherry Gardens 275kV transmission line. A report to the Electricity Trust of South Australia, Adelaide.

Gara, T. and Turner, J. 1986 Two Aboriginal engraving sites in the Mount Lofty Ranges.Journal of the Anthropological Society of South Australia 24:3-9.

24 Gill, T. 1909 Some anthropological notes on the South Australian Aborigines. Proceedings of the Royal Geographical Society of Australasia, South Australian Branch 10:220-48.

Gunn, R.G. 1981 The Aboriginal rock art of the Mount Lofty Ranges, South Australia. Preliminary analysis and other observations.

Hignett and Co. 1983 Mount Barker District Heritage Survey. Department of Environment and Heritage.

Hossfeld, P.S. 1926 The Aborigines of South Australia – Native occupation of the Eden Valley and Angaston districts. Transactions of the Royal Society of South Australia 50:287-297.

Johnston, H. 1991 An archaeological survey of the Telecom Optical Fibre Cable route from Summertown to Bordertown, South Australia.

Mills, A.R. 1981 Kungna Tuko: a history of Kanmantoo. Kanmantoo Progress Association.

Morphet, G.C. n.d. Early Mount Barker. Pioneers Association of South Australia.

Mountford, C.P. 1957 Aboriginal cave paintings in South Australia. Records of the South Australian Museum 13(1):101-115.

Mountford, C.P. 1960 Cave paintings in the Mount Lofty Ranges, South Australia. Records ofthe South Australian Museum 13(4):467-470.

Preiss, K.A. 1964 Aboriginal rock paintings in the Lower Mount Lofty Ranges, South Australia: Four new sites described. South Australian Naturalist 39(1):5- 12.

Ross, B. (ed) 1984 Aboriginal and historic places around metropolitan Adelaide and the South Coast. Anthropological Society of South Australia: Adelaide.

Ross, B. and Ellis, B. 1974 Aboriginal relics in the lower Mt. Lofty Ranges, Murray River and Monarto Area - assessment of type and location in an understanding of the region's cultural heritage. South Australian Museum, Adelaide.

Stirling, E.C. 1902 Aboriginal rock paintings on the South Para, Barossa Ranges. Transactions of the Royal Society of South Australia 26:208-211.

Sturt, C. 1833 Two Expeditions into the Interior of South Australia. Smith, Elder and Co., London.

Teichelmann, C.G. 1841, Aborigines of South Australia. Illustrative and Explanatory Notes of the Manners, Customs, Habits and Superstitions of the

25 Natives of South Australia, Committee of the South Australian Wesleyan Methodist Auxillary Missionary Society, Adelaide.

Teichelmann, C.G. & Schurmann, C.W. 1840, Outlines of a Grammar, Vocabulary and Phraseology of the Aboriginal Language of South Australia Spoken by the Natives in, and for some distance around Adelaide, Robert Thomas and Co., Adelaide.

Teusner, R.E. 1963 Aboriginal cave paintings on the River Marne near Eden Valley, South Australia. Mankind 6(10):15-19.

Tindale, N.B. 1974 Aboriginal tribes of Australia: Their terrain, environmental controls, distribution, limits, and proper names. University of California Press: Berkeley.

Tindale, N.B. 1987 The wanderings of Tjirbruki: A tale of the Kaurna people of Adelaide. Records of the South Australian Museum 20:5-13.

Tindale, N.B. and Sheard, H.L. 1927 Aboriginal rock paintings, South Para River, South Australia. Transactions of the Royal Society of South Australia 51:14-17.

Williams, D. and Barber, M. 1995 An Archaeological Survey of Two Proposed Optus Communications Tower Compounds at Mt Barker (A64) and Naracoorte (A61).

Wood, V. 1993 An archaeological assessment of the Optus OFC route between the Victorian/South Australian border and Adelaide. A report to Sinclair Knight and Optus Communications, Adelaide.

Wood, V. 2006 The Proposed Kanmantoo Mine: Desk-top Indigenous and Non-Indigenous cultural heritage study. A report to Parson Brinckerhoff, June 2006.

26 Appendix 1: Recorded Sites in the General Project Region.

6727-208 Kanmantoo Painting Site 6727-947 Kanmantoo Scarred Tree 6727-948 Kanmantoo Campsite 6727-949 Kanmantoo Campsite 6627-1215 Dawesley Creek Stone Arrangement 6627-3595 Bremer River Burial Ground 6627-5489 Saw Pit Gully Road Scarred Tree

Site No. 6727-208 is also on the Register of the National Estate (Place ID No. 7586). It is located in Native Valley and was first recorded by Mountford in 1957. According to the National Estate listing, it is an excellent example of the Mt. Lofty style of painting and the art is well preserved. The motifs include a number of human figures, some of which form compositions with other objects such as spears and boomerangs. The paintings are located in a rock shelter situated on the side of a rocky gully, about 20m above a waterfall in the Bremer River.

27 Appendix 2: Summary of the Tjirbruki myth after Woods (2006)

The legend of Tjirbruki is about an ancestral being who was responsible for the formation of a number of landscape features along the coast of the from Kingston to as far south as Cape Jervis, as well as inland as far as Brukunga (approximately 8km to the northwest of the present study area) and Strathalbyn (Tindale 1987). It was recorded by Norman Tindale with his main information being a Lake Alexandrina man named Milerum, who had heard the story in the early 1880s when he was quite young.

The story relates how Tjirbruki, an old and respected Kaurna man, travelled along the coastline from Rapid Bay to Outer Harbour, in search of emus. His nephews, Kulultuwi, Jurawi and Tetjawi, were on their own emu hunt when Kulultuwi caught an emu that was, by rights, Tjirbruki's to catch: Tjirbruki had been the first to follow the emu's tracks. After a peaceful confrontation between Tjirbruki and Kulultuwi, the latter was treacherously killed by his part- brothers so they could keep the emu meat for themselves. The part-brothers then returned to their clan, saying that they had punished their brother for hunting another man's emu.

The body of Kulultuwi was first smoked over a fire, according to custom, before it was taken to Warriparri (Sturt Creek, Marion) where it was placed on a rack to dry. Tjirbruki was not told of Kulultuwi's death and so went searching for him. He again traveled along the coast, this time from Rapid Bay to Lands End before travelling north on the eastern side of the Mt. Lofty Ranges. Eventually he came to Warripari where the body of Kulultuwi was still being smoke-dried and Jurawi and Tetjawi were camping with their families. Tjirbruki was intent on avenging Kulultuwi whom he now realised had been wrongly killed. He killed his treacherous nephews and their families and then carried the dried body of his nephew to a spring at Kingston Park, Marino where he completed the smoking process. Tjirbruki then departed for Rapid Bay, stopping at a number of places on the way. At each of these locations his

28 tears formed springs, which were later used as water sources by the Aborigines who lived in the district.

After reaching Cape Jervis, Tjirbruki turned northward and left the body in a cave along the coast. The legend then states that Tjirbruki travelled far underground before emerging from the rocks whereupon he transformed himself into an ibis. His body became a rocky outcrop at Brukunga (Section 1887, Hundred of Kanmantoo), which became a source of iron pyrites used by Aboriginal people for fire-making.

Springs connected with the Tjirbruki dreamtime legend are known from Kingston Park, Hallett Cove (Kareildung), Port Noarlunga (Tainbarang), Red Ochre Cove (Potartang), Port Willunga (here the spring [Ruwarang] is covered by the sea at high tide but at low tide fresh water can be obtained there by digging in the sand), Sellicks Beach and Carrickalinga.

Another dreamtime story relevant to the region records the creation of the Mt. Lofty Ranges during an ancient battle in which a great giant, Jureidla or Urebilla, who attacked the Kaurna from the east, was slain. His body formed the Mt. Lofty Ranges to as far north as Nuriootpa, his two ears formed Mt. Lofty and Mt. Bonython and his outstretched arms reached the sea at Marino (Tindale 1974:64, Ross 1984:7, Clarke 1991:63).

29 Appendix 3: The Legislative Framework

The Aboriginal Heritage Act 1988 provides blanket protection for all Aboriginal sites and objects in South Australia. An Aboriginal site is defined by the Act as being an area of land: a) that is of significance according to Aboriginal tradition;

OR b) that is of significance to Aboriginal archaeology, anthropology or history.

An Aboriginal object is defined by the Act as an object: a) that is of significance according to Aboriginal tradition

OR b) that is of significance to Aboriginal archaeology, anthropology or history.

The Division of Aboriginal Affairs and Reconciliation is required to keep a Register of Sites but it should be noted that all sites are protected, irrespective of whether they are on the Register or not.

Section 7 of the Act establishes an Aboriginal Heritage Committee, now referred to as the State Heritage Committee. This committee is comprised of representatives from local heritage committees and its functions are to advise the Minister on the significance of sites and objects, their preservation and protection and other matters relating to the Act. The State Heritage Committee also provides information on the relevant Indigenous organisations/committees to be consulted in relation to matters of Indigenous heritage.

30 Section 12 allows for a person proposing to undertake any action near a site to apply for a determination from the Minister as to the site’s significance. Under Section 12(6), the Minister may then accept advice from an ‘expert’ on this matter and then make a determination as to whether the site is to be retained on the Register of Aboriginal Sites or whether it should be removed from the Register. Sites or objects that are determined not to be significant may be excluded from the operations of the Act (Section 13). Partial disturbance or clearance of a site as, for example, would be required in the case of a proposal to excavate a trench across part of a site may be possible through the determination process.

Section 20 states that all people who ‘discover’ Indigenous sites or objects must report them to the Minister, through DAARE. Details providing particulars of the nature and location of the site, object or remains must be included. The penalty for such an offence is $50,000 for a body corporate, or $10,000 or imprisonment for 6 months in the case of an individual.

Section 21 states that a person must not, without the authority of the Minister, excavate land for the purpose of uncovering any Aboriginal site, object or remains. Similar penalties as described above apply to this Section of the Act.

It is an offence, under Section 23 of the Act, to collect, damage or destroy Aboriginal sites, objects or remains without the written authorisation of the Minister for Aboriginal Affairs. The penalty for such an offence is $10,000 or imprisonment for six months in the case of an individual and $50,000 in the case of a corporate body. Where a corporate body commits an offence under the AH Act, each member of the governing body is guilty of the same offence and is liable to the same penalty as an individual.

Under Section 24, the Minister may prohibit or restrict access to a site and also prohibit or restrict activities at or near a site. Prohibitions and restrictions made under this section require the approval of the Governor.

31 Site Access Road Inspection

Appendix 9

Kanmantoo Copper Project Non-Indigenous Heritage Survey and Archaeological Assessment Non-Indigenous Heritage Survey and archaeological assessment of the Kanmantoo Copper Project area near Kanmantoo, South Australia A Report to Hillgrove Resources Ltd and Enesar Consulting Pty Ltd 2 Hillgrove Resources Ltd Suite 4103, Level 41, Australia Square Tower 264-278 George Street Sydney NSW 2000 Telephone: (02) 8221 0404 Enesar Consulting Pty Ltd Level 1, 2-3 Greenhill Road, Wayville, South Australia 5034 Telephone: (08) 7221 3588

2 Report prepared by: Sean Freeman B.A.(Flinders) Grad.Dip.Arch.(Flinders) 2 Australian Heritage Services Pty Ltd Telephones: ABN 34 105 485 845 ACN 105 485 845 (08) 8223 3480 (office) Cultural Heritage Consultants (08) 8223 3485 (facsimile) GPO Box 2990 (0428) 848 043 (mobile) Adelaide SA 5001 Email: [email protected]

Final Report August 2007 Summary Hillgrove Resources are currently completing a Definitive feasibility Study (“DFS”) and Mining Lease Proposal (“MLP”) into the viability of potentially re-opening the old Kanmantoo Mine near the township of Kanmantoo, South Australia. As part of this work Hillgrove Resources have contracted Enesar Consulting Pty Ltd to assist in this process, with Australian Heritage Services Pty Ltd being engaged to conduct a study of the non- Indigenous heritage values of the proposed Kanmantoo Copper Project area. A detailed examination of all aspects of the heritage values of the project area was conducted and results of this work are detailed in this report. The cultural heritage survey and archaeological assessment were undertaken during March and April 2007 as a result of the recommendations of a 2006 report by Vivienne Wood “The Proposed Kanmantoo Mine: Desk-top Indigenous and Non-Indigenous cultural heritage study”. The surveys by Vivienne Wood and Australian Heritage Services examined all of the areas to be affected by the possible mine footprint and the associated integrated tailings and waste storage landform (IWL) and mine infrastructure. Areas containing known heritage features such as those associated with the Paringa Mine and the Paringa Homestead were the primary focus of the studies.

The Kanmantoo Copper Project study area was visited during March and April 2007 with a focus on those areas that were to fall within the proposed mine layout. These areas were examined in detail and a number of historic ruins peripheral (will not be affected) to the proposed mine layout were located and documented. There is a slight possibility of other archaeological material being present in the development areas. Some small areas could not be examined completely at the time of the site inspection because of poor ground visibility in some of the survey area, due to the presence of native vegetation, grasses, weeds and other plants.

A search of the relevant federal, state and local non-Indigenous heritage Registers has been conducted and none of the remaining heritage items located within the project area are included in any of these Registers. Contents

Summary i

Contents ii

List of Figures iii

List of Plates iii

Acknowledgments iv

1.0 Introduction 1 1.1 The Study Area 1 1.2 Proposed Development 1 1.3 Development timetable 1

2.0 The Non-Indigenous Heritage Survey and 2 Archaeological Assessment

3.0 Legislation 3.1 Federal legislation 3 3.2 State legislation 5

4.0 Historical Background 9 (taken from “The Proposed Kanmantoo Mine: Desk-top Indigenous and Non-Indigenous cultural heritage study” Vivienne Wood 2006: pages 25-39)

5.0 Survey 18 5.1 Survey design and methodology 18 5.2 Constraints on the survey 18

6.0 Survey Results 20

7.0 Assessment of significance 24

8.0 Potential impacts on non-Indigenous Cultural Heritage 26

9.0 Recommendations 27

References 29

Appendix 1: Hillgrove Resources March 2007: Kanmantoo Copper Project Non-Indigenous Heritage Assessment Results

Appendix 2: Hillgrove Resources Limited: Kanmantoo Copper Project Figures and Plates

Appendix 3: Section of Mount Barker Heritage Survey (2004)

ii List of Figures

Figure 1: Relief map of Australia, showing location of the study areas

Figure 2: The location of the historic structures located in the Kanmantoo Copper Project area Copper Project area, within the proposed mining footprint. Figure 3: Disturbed areas from previous mining activities.

Figure 4: Field scale drawing of the mine manager’s residence ruin

Figure 5: Field scale drawing of small ruin adjacent to the mine manager’s residence

Figure 6: Field scale drawing of the ruin adjacent to the Paringa Smelter complex List of Plates

Cover Top Left: Paringa smelter creeping chimney, looking NW from 317931/6114196

Plate 1: Kanmantoo Copper Project area, looking south towards Paringa smelter from 317760/6114412 (GDA94 Map Zone 54H) Plate 2: Kanmantoo Copper Project area, looking north from 317752/6113622 Plate 3: Paringa smelter creeping chimney and stack, looking north west from 317927/6114188 Plate 4: Paringa smelter creeping chimney and stack, looking south west from 317930/6114199 Plate 5: Paringa Homestead, looking north west from 317203/6115179 Plate 6: Paringa Homestead, looking north west from 317203/6115179 Plate 7: Paringa Homestead, looking north east from 317187/6115187 Plate 8: Paringa Homestead stone cistern, looking south from 317176/6115228 Plate 9: Paringa Homestead eastern veranda, looking east south west from 317201/6115211 Plate 10: Paringa Homestead eastern veranda, looking north north east from 317195/6115198 Plate 11: Paringa Homestead southern veranda, looking south east from 317183/6115197 Plate 12: Paringa Homestead western veranda, looking north north west from 317183/6115197 Plate 13: Mine manager’s residence ruin, looking south south east from 317582/6114034 Plate 14: Mine manager’s residence ruin, looking north east from 317583/6114016 Plate 15: Internal wall of mine manager’s residence ruin, looking south west from 317590/6114030 Plate 16: Mine manager’s residence ruin, looking south east from 317583/6114028 Plate 17: Small structure north of manager’s residence, looking west north west from 317607/6114170 Plate 18: Small structure north of manager’s residence, looking north from 317605/6114162 Plate 19: Small structure north of manager’s residence, looking east from 317596/6114173 Plate 20: Small structure north of manager’s residence, looking south west from 317609/6114180 Plate 21: Small structure near Paringa smelter, looking south from 317779/6114187 Plate 22: Small structure near Paringa smelter, looking north east from 317775/6114179 Plate 23: Small structure near Paringa smelter, looking north from 317784/6114174 Plate 24: Small structure near Paringa smelter, looking west from 317788/6114179 Plate 25: Paringa settling tank, looking south from 317863/6114267 Plate 26: Paringa settling tank, looking south east from 317874/6114269 Plate 27: Paringa settling tank, looking south from 317874/6114269

iii Plate 28: Paringa settling tank, looking north north west from 317889/6114240 Plate 29: Paringa smelter complex, looking north from 317831/6113780 Plate 30: Paringa smelter creeping chimney and stack, looking north east from 317879/6114180 Plate 31: Paringa smelter creeping chimney and stack, looking south west from 317930/6114199 Plate 32: Detail of Paringa smelter creeping chimney and stack, looking SW from 317930/6114199 Plate 33: Paringa smelter creeping chimney and stack, looking south west from 317930/6114200 Plate 34: Paringa smelter creeping chimney and stack, looking north east from 317880/6114164 Plate 35: Paringa smelter engine house, creeping chimney and stack, looking east from 317852/6114204 Plate 36: Paringa smelter engine house, creeping chimney and stack, looking east from 317854/6114197 Plate 37: Paringa smelter engine house, creeping chimney and stack, (western wall) looking east from 317854/6114211 Plate 38: Paringa smelter engine house, creeping chimney and stack, (western wall) looking east from 317854/6114211 Plate 39: Paringa smelter engine house (northern wall) and stack, looking SE from 317866/6114215 Plate 40: Paringa smelter engine house (eastern wall), looking west from 317876/6114208 Plate 41: Paringa smelter engine house (eastern wall), looking south west from 317876/6114208 Plate 42: Paringa smelter engine house, (southern wall) looking north from 317869/6114193 Plate 43: Paringa smelter engine house, looking north west from 317866/6114194 Plate 44: Paringa smelter engine house, detail of southern wall, looking north from 317870/6114194

Acknowledgments:

I would like to thank the following people for their help on the project: David Browne, Kathryn Levingstone of Enesar Consulting, Marty Adams, Dale Ferguson and John Popow of Hillgrove Resources, all of whom assisted the consultant during the March/April 2007 assessment with input on technical consultation for the surface survey and reporting phases of the project. Bruno Rescignano of PIRSA Minerals for his help with searching historic mining records and plans. Hamish Angas, Senior Heritage Officer of Heritage SA, of the Department for Environment and Heritage for assistance with research and consultation at various stages during the project.

iv 1.0 Introduction

1.1 The Study Area Hillgrove Resources Limited (Hillgrove) are conducting a Definitive Feasibility Study of the Kanmantoo Copper Project (including a non-Indigenous heritage assessment) to assess the feasibility of renewing mining and processing to produce copper and gold with an indicative mine life of 8 years. The study area (Figure 1) encompasses the previous mining footprint and surrounding areas (Plates 1-4).

1.2 Proposed Development

The proposed mine will consist of an open pit, integrated waste landform (consisting of waste rock storage and tailing storage facility), process plant and associated infrastructure. Processing of the ore is proposed by conventional crushing, grinding and flotation. The mining operation will require modification of the current ground surface in many parts of the project area as indicated above.

1.3 Development timetable Hillgrove Resources is not committed to re-opening the Kanmantoo Copper Mine until results of the Definitive Feasibility Study are known and have been interpreted and assessed for financial viability. This is not the only set of criteria that Hillgrove Resources is using, the decision to re-open the Kanmantoo Mine is also dependent on a positive assessment of all environmental and social impacts the mining operations will have on the Kanmantoo Copper Project area and the local area. If all of the above results are positive then development works for the mine site may start in early 2008.

1 2.0 The Non-Indigenous Heritage Survey and Archaeological Assessment The purpose of the non-Indigenous heritage survey and archaeological assessment was to characterise the existing non-Indigenous heritage features within the study area. The objectives of this survey included:

x Undertaking a field assessment of non-Indigenous heritage sites within the study area to assess the condition and conservation value of these heritage areas. x Assess the potential effects of the mine’s associated infrastructure on sites of cultural heritage. x Describe the impact of the proposal to cultural heritage sites of local, regional, state or national significance. x Discuss ways in which impacts on cultural heritage sites can b minimised or mitigated, including possible methods for protection areas that will not be disturbed.

Study tasks included:

x Recording the location and extent of cultural heritage finds and outlining these areas on maps. x Assess the condition and conservation value of each site, based on a ground survey and database search. x Liaise with local authorities/government agencies to determine requirements to preserve, record, treat, remove or relocate heritage listed sites if disturbed by the project. x Consider the location of heritage sites in relation to the proposed Infrastructure plans and in consultation with Hillgrove determine any sites requiring removal/relocation.

2 3.0 Legislation 3.1 Federal legislation The legislation/acts which together provide protection for Australia's natural, indigenous and non-Indigenous heritage include:

x The Environmental Protection and Biodiversity Protection Act 1999 and associated Environment and Heritage Legislation Amendment Act (No. 1) 2003 x Australian Heritage Council Act 2003 x Australian Heritage Council (Consequential and Transitional Provisions) Act 2003

The Environmental Protection and Biodiversity Protection Act 1999 and associated Environment and Heritage Legislation Amendment Act (No. 1) 2003 The Environment and Heritage Legislation Amendment Act (No. 1) 2003 amended the Environmental Protection and Biodiversity Conservation Act 1999 so as to include 'national heritage' as a new matter of National Environmental Significance and seeks to protect listed places to the fullest extent under the Constitution.

The Australian Government’s Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) enabled the Australian Government to link in with the states and territories and the various items of local legislation in order to provide a national scheme of biodiversity conservation, environment and heritage protection. Under the mantle of the Environment Protection and Biodiversity Conservation Act 1999, any proposed actions by developers that are likely to have a significant impact on a matter of national significance are assessed. The Australian Government’s Department of Environment and Water Resources is responsible for administering the Act. The matters that are considered to be of national environmental significance covered under the Act are: • World Heritage properties. • National Heritage places. • Ramsar wetlands of international significance. • Threatened species and ecological communities. • Migratory species. • Nuclear actions. • Commonwealth marine areas. • Additional matters of national environmental significance (prescribed actions).

A referral and assessment process has been established to determine the application of the EPBC Act. The first step in this process is referral of the project to DEWR, and the project is

3 then assessed as to whether or not it is a controlled action. Approval under the act is required if the project is a controlled action.

A referral for the Kanmantoo Copper Project was submitted to the Federal Department of the Environment and Water Resources (DEWR) on the 28th February and Hillgrove was informed on the 30th March 2007 that the DEWR deemed that the project was not a controlled action and as such, assessment and approval under the EPBC Act was not required.

The Environmental Protection and Biodiversity Protection Act 1999 also established the National Heritage List and the Commonwealth Heritage List of protected places.

National Heritage List The National Heritage List is a list of places with outstanding heritage value to our nation, including places overseas. The heritage values of these places are protected under the Australian Government's Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Commonwealth Heritage List The Commonwealth Heritage List is a list of places managed or owned by the Australian Government. The list includes places, or groups of places, that are in Commonwealth lands and waters or under Commonwealth control, and are identified by the Federal Minister for the Environment and Heritage as having Commonwealth heritage values. These places are protected under the EPBC Act, which requires that actions:

• Taken on Commonwealth land which are likely to have a significant impact on the environment will require the approval of the Federal Minister for the Environment and Heritage. • Taken outside Commonwealth land which are likely to have a significant impact on the environment on Commonwealth land, will require the approval of the Federal Minister for the Environment and Heritage. • Taken by the Australian Government or its agencies which are likely to have a significant impact on the environment anywhere, will require approval by the Federal Minister for the Environment and Heritage.

Because the definition of 'environment' in the EPBC Act includes the heritage values of places, the provisions of the Act in the context of their operation, serve to provide protection for the heritage values of places considered to be of Commonwealth Heritage significance.

4 Australian Heritage Council Act 2003 The Australian Heritage Council Act 2003 established a new heritage advisory body to the Minister for the Environment and Heritage, the Australian Heritage Council, and also retained the Register of the National Estate that was established by the Australian Heritage Commission Act 1975.

Register of the National Estate Under the new system, the Register of the National Estate was retained as an ever evolving record of Australia's natural, cultural and Indigenous heritage places that are worthy of protection and therefore have value and as such keeping intact for future generations in Australia. The Australian Heritage Council is responsible for the compilation and maintenance of the Register of the National Estate. Those places on the Register of the National Estate that are in Commonwealth areas, or subject to actions by the Australian Government, are protected under the EPBC Act by the same provisions that protect Commonwealth Heritage places (see above).

Australian Heritage Council (Consequential and Transitional Provisions) Act 2003 The Australian Heritage Council (Consequential and Transitional Provisions) Act 2003 repealed the Australian Heritage Commission Act 1975, amended a variety of previous federal Acts as a consequence of this repeal and allowed the transition to the new heritage system.

3.2 State legislation The first legislation in South Australia to protect built heritage was the Aboriginal and Historic Relics Preservation Act 1965. The Act allowed for the declaration of Prohibited Areas and Historic Reserves.

Heritage protection measures for places of State heritage value were first introduced in the South Australian Heritage Act, 1978. The Act provided for entering items of significant aesthetic, architectural, historical or cultural interest on a Register of State Heritage Items and designating State Heritage Areas.

A review of South Australian legislation occurred between 1990 and 1992 resulting in the Heritage Act 1993 and the Development Act 1993 coming into operation on 15 January 1994.

Development Act 1993 The Development Act and Development Regulations allow for an integrated system of planning and development assessment in South Australia.

5 The Development Act established the Planning Strategy. This sets out State Government policy and initiatives for development. It is intended to guide and coordinate development for the State and specifies directions for future development to the community, local government and the private sector.

Local Councils are required to include the goals of the Planning Strategy when formulating development policies. Local Councils when formulating heritage policies should take into account the full range of goals within the Planning Strategy for social, economic and environmental goals.

Heritage policies may be introduced in development plans for both local and State heritage places and areas through an amendment to a development plan.

State Heritage Areas Since the introduction of the Development Act, a Plan Amendment Report must be undertaken to establish a new State Heritage Area. Thirteen State Heritage Areas had been entered on the State Heritage Register prior to the Development Act 1993. Some of these, such as Burra and Mintaro, have policies included in development plans. Councils are encouraged by Planning SA to incorporate existing State Heritage Areas into development plans.

Local heritage places The identification and protection of individual places of local heritage value is the main vehicle for providing for local heritage protection.

The Development Act allows local councils to identify and list places of local heritage value in development plans. A local heritage place is described within the Development Act as “a place that is designated as a place of local heritage value by a development plan”. Amendments to the development plan must be supported by appropriate investigations, generally containing the findings of a heritage survey and must meet the criteria in section 23(4) of the Development Act. Guidelines for considering places of local heritage value have been prepared by Planning SA in consultation with Heritage South Australia.

Historic (Conservation) Zones and Policy Areas The Development Act allows for the establishment of Historic (Conservation) Zones or Historic (Conservation) Policy Areas within the development plans.

The legislation for designating a Historic (Conservation) Zone or Policy Area allows for greater control over demolition of a building. The approval of council is required to demolish a building

6 located within a Historic (Conservation) Zone whether or not it is listed as a local heritage place.

Proposals for the establishment of a Historic (Conservation) Zone or Policy Area are accompanied by appropriate supporting investigations, including the findings of a heritage survey.

Planning SA, in conjunction with Heritage SA, has developed guidelines which assist in establishing the merits of a proposal for a Historic (Conservation) Zone.

Heritage Act 1993 The Heritage Act provides for the establishment of the State Heritage Register and attached inventory. The inventory includes local heritage places, places of historical value under the law of the Commonwealth, State Heritage Areas and heritage agreements.

The Heritage Act also provides for listing of sites of geological, palaeontologic or archaeological significance, emergency protection and continuation of the State Heritage Fund.

State Heritage Areas are now established through the Development Act. Existing State Heritage Areas remain listed in the State Heritage Register.

State heritage places The Heritage Act allows for the identification and protection of places of value to the State. A State heritage place is a place entered in the State Heritage Register or contained within an area established as a State Heritage Area. Once registered, State heritage places are protected under both the Heritage Act and Development Act. For a State heritage place to be included in the Register it must meet the assessment criteria in section 16 of the Heritage Act.

Local Councils are encouraged to prepare Heritage Plan Amendment Reports to incorporate State heritage places into development plans.

Heritage Places Act 1993 The South Australian Heritage Act 1993 established the South Australian State Heritage Register and inventory of heritage places. Those sites that are listed on the State Heritage Register are afforded protection by the provisions of the Development Act 1993. This legislation makes it an offence to damage or destroy historic relics without the prior written permission of the South Australian Minister for Environment and Heritage.

7 Nominations for a place or an object to be included as an entry as a place or object of State significance in the South Australian (formerly 'State') Heritage Register can be made by any individual or organisation. This Register includes places and objects of State significance that satisfy one or more of the criteria specified in Section 16 of the Heritage Places Act 1993.

The following criteria are those that are listed in Section 16 of the Heritage Places Act 1993:

• It demonstrates important aspects of the evolution or pattern of the State's history. • It has rare, uncommon or endangered qualities that are of cultural significance. • It may yield information that will contribute to an understanding of the State's history, including its natural history. • It is an outstanding representative of a particular class of places of cultural significance. • It demonstrates a high degree of creative, aesthetic or technical accomplishment or is an outstanding representative of particular construction techniques or design characteristics. • It has strong cultural or spiritual associations for the community or a group within it. • It has a special association with the life or work of a person or organisation or an event of historical importance.

The South Australian Heritage Council enters State Heritage Places in the South Australian Heritage Register in response to nominations from the public or organisations as well as those places or areas that are nominated as a result of Heritage Surveys. The South Australian Minister for Environment and Heritage can require a place to be removed from provisional entry on the Heritage Register but once a place has been confirmed on the Register only a recommendation from the Heritage Council can allow the listing to be removed.

Section 14 of the Heritage Places Act 1993 requires that the Register also includes South Australian heritage places and areas protected under other State and Federal legislation, and include those places or areas that are designated as:

• Local heritage places designated in any Development Plan; • Local heritage zones and policy areas designated in any Development Plan; • Places within the State entered in any register of places of historical interest kept under the law of the Commonwealth [i.e. the Register of the National Estate, the Commonwealth Heritage List and the National Heritage List]; • State Heritage Areas, and • Heritage Agreements made under the Heritage Places Act.

8 4.0 Historical Background The Kanmantoo area was first settled after the Mt Barker Special Survey in 1839. The townships of Callington and Kanmantoo were first settled shortly after this time to cater for the influx of miners and support services when silver and copper were discovered in the area. The following section of the report is taken from “The Proposed Kanmantoo Mine: Desk-top Indigenous and Non-Indigenous cultural heritage study”, Vivienne Wood 2006:

“Initial exploration of the area is likely to have begun soon after the establishment of the overland stock route between Adelaide and the River Murray (Morphett n.d., Schmidt 1983). The route traversed the ranges via Mt. Barker and represented a base from which squatters were soon exploring grazing country in the relatively well watered and fertile Bremer Valley and surrounds (Hignett and Co. 1983, Mills 1981). Formal survey soon followed with the Mt. Barker Special Survey submitted by Captain Finnis and Duncan MacFarlane in January 1839, the first in the State (Hignett and Co. 1983).

Traces of copper were noted in the Kanmantoo area with MacFarlane recognising finds across a long, red coloured, north striking ridge eight miles cast of Mt. Barker. William Giles, Colonial Manager of the South Australia Company, had set up a sheep station on sections purchased in the Bremer valley and had also noted the copper (Mills 1981). The finds prompted Giles to hire Joseph Lean, a Cornish miner, and Dixon, a geologist, to evaluate their potential. Dixon reported a high quality of surface ore, comparing it to the Burra Creek finds and Giles immediately filed for a Special Mineral Survey on behalf of the SA Company, in October 1845. Upon application, however, Giles found that Duncan MacFarlane had applied for the same land after also having found copper ore (the main ridge through the Kanmantoo works bears the name of MacFarlane).

MacFarlane required backers to raise capital and formed a consortium, the Paringa Mining Syndicate. The two rival parties, the SA Company and the Paringa Syndicate, then agreed on an arrangement to partition the land between themselves, the SA Company acquiring 12 of the 1,000 acre sections, and the Joint Applicants acquiring the remaining eight 1,000 acre sections of the Mt. Barker Mineral Survey (see Figure 5). Giles made sure he picked up the parcels he thought had the greatest potential having been assured by his 'trusty miners'. Giles' faith in the deposit lead him to comment that "the [SA] Company need not go away from the first 1,000 acre block for excavating during my lifetime should I live for twenty years" (quoted in Chilman 1982:5).

While the copper discoveries saw a rapid influx of settlers and town development, Giles' enthusiasm proved to be ill-founded, as the lodes were typically small, pipelike structures, extending to only relatively shallow depth (GSSA 1972). The nature of the lodes would continue to affect the viability of mining at Kanmantoo, with MacFarlane's syndicate struggling to make any profit from their Paringa mine. While the discovery of a silver lode in 1847 raised expectations, this deposit again proved to be limited in extent and in 1856 the Paringa mine was sold.

The SA Company had had slightly more success at the Kanmantoo mines. As mining had begun prior to any official approval from the company headquarters in London, operations on the first load (Emily) remained low cost and small scale. As the shaft deepened, a Cornish whim (see Figure 6) was employed to raise the ore more efficiently. Later, an adit would be dug from the adjoining hillside to the ore body and ore carted out on rail tracks (see Figure 7) (Mills 1981).

9 Figure 5: The 1845 Mt. Barker Mineral Survey showing the distribution of original sections (Source: Chilman 1982).

Once official permission was received, operations ramped-up at the Kanmantoo mine. Ore was lifted by miners paid through 'tributing', a tender system in which the miners indicated what percentage of the ore value they would charge based on their estimate of its grade. The company could then hire the lowest bidding team. By 1846, the Kanmantoo Mine was employing 25 men, with six boys hand-sorting the ore. The first eight ton shipment had been sent overseas with a further 255 tons of saleable ore heaped at the company's wharf (Mills 1981).

The poor state of the local roads meant transport was both slow and costly, so whilst production had increased to 500-600 tons per annum, only the highest grade ore could be transported profitably. The company considered partially smelting the ore on-site to reduce the tonnage of material having to be carted to Adelaide and allowing the lower grade ore to be converted to 50% regulus before further refining at Port Adelaide. Giles

10 Figure 6: Design of a hors powered Cornish Whim (Source: Chilman 1982). invited the Thomas brothers to set up a smelter at Kanmantoo and a temporary, mud walled structure was built on the eastern side of the main ridge in 1848 (Chilman 1982, Chilman and Jeffrey 1975). The Thomas brothers would later part company with one moving smelting Operations to the Bremer Mine and the other heading to the Burra fields (Mills 1981).

Ore was carted from Kanmantoo to the Bremer smelter by bullock teams. Fortuitously, one of the teams driven by John Kiernan, ran over and exposed a lump of copper ore near Callington on land owned by the SA Company (Hallack 1892 cited in RNE listing). While Kiernan was awarded fifty pounds from the Mining Claims Office, the find was quickly set upon by the Britannia Mining Company, formerly MacFarlane's Syndicate. The company took up 7,000 acres of the special mineral survey along the Bremer Creek and by 1872 had nine mines operating in the district: Wheal Friendship, Wheal Maria, Wheal Prosper, Bremer, Tresavean, Menkoo, and three others (see Figure 8).

The town of Callington, called after its namesake in Cornwall, was surveyed and laid out between 1850 and 1852. Mineral traces were "found in nearly every direction" (South Australian Gazetteer for 1867) and by the late 1860s the town was supporting significant mining and smelting operations with a population swelling to 600 persons and local agricultural output expanding to accommodate the influx. A number of other settlements were already in existence (see Figure 9).

Of the Bremer District mines, the Adelaide Almanac of 1864 reports (cited in Hignett and Co. 1983):

Kanmantoo Mines. One of the oldest in the colony. This and many surrounding mines suffered from neglect due to earlier rush to Victorian Goldfields. Still working, but needs capital injection. West Kanmantoo. Yielding good returns. Paringa. Adjoining, shows promise of being richest in state. Bremer Mine, Established 1859, uses more machinery than anywhere else in the state. 150 miners. Smelts own ore on site to produce 'rough copper'. By 1864 the quality had dropped to 14% but there is greater promise at lower depths. 4,500 tons produced over 5 years.

11 Figure 7: The Kanmantoo and Paringa workings (Source: S.A. Department of Mines map presented in Mills 1981). Portions of the Roper Big, Spitfire and West Kanmantoo Workings are likely to have been subsumed by the later open cut mining operations.

12 The discovery of gold in Victoria in 1851 saw the workforce essentially abandon operations throughout the district with production at the Kanmantoo mine falling to less than 200 tons in that year (Mills 1981). Small scale mining continued at this site throughout the 1850s with the Emily, Spitfire, Giles, Emu, Rundle, Rodda and Roper lodes operating at various times and capacities (see Figure 7).

Ore had also been found on the Venner family property, the Aclare mine, near the Mt. Barker Creek and south of the original Mineral Survey (Section 1296, Hd. Kanmantoo) (see Figure 8). Little interest was shown in the Aclare venture, however, with small scale mining undertaken by F.C. Singleton gradually extending a vertical shaft through the ore body (Mills 1981).

The mining operations at Kanmantoo were taken over by a succession of companies until 1874 when a collapse in the world price for copper forced its closure. At this time, Peter Lewis, a blacksmith who had previously worked in Echunga, stepped into the fray, employing local miners to supply him with ore and thereby sustaining the Kanmantoo community through these lean times (Mills 1981). To reduce costs, Lewis smelted ore on-site, probably in the old Paringa works or a new brick structure opposite the Paringa mine (Mills 1981). In 1880, eight years into Lewis' management, low copper prices again forced the cessation of mining.

The development of the railway from Adelaide to Murray Bridge promised to make mining viable once again (the railway reached Mt. Barker in 1883), and coupled with a boom in the silver market in 1886, saw renewed interest in the area, with the Aclare deposit, in particular, opened up to large scale development (Chilman 1982, Gibbs 1982, Stow 1883). The mine would represent one of South Australia's most productive silver mines during the nineteenth century (RNE listing). Various structures were erected on the site with the small settlement of St. Ives, now dissected by the southern freeway, situated less than a kilometre north of the mine. The silver boom lasted for only several years and the following years saw mining largely abandoned until a copper price recovery in the early 1900s. By the end of the first world war, however, the Kanmantoo, Paringa and Aclare operations had all ceased production.

In 1938, the Austral Development Company, the exploration arm of the Zinc Corporation of Broken Hill, began drilling at the lower limits of the old Kanmantoo shafts. Early results showed a wide zone of low grade ore extending throughout the area, though too low a grade to make mining viable (Chilman 1982). However, whilst the ore was unprofitable in 1938, advancements in mining and refining technologies saw the viability of the deposit gradually improve, and in 1960, the Broken Hill South Company began further evaluation drilling. Nine years later, two additional companies had joined the venture, forming Kanmantoo Mines Limited (GSSA 1972). Open cut mining commenced with the pit subsuming the northernmost workings of the earlier Kanmantoo mines. A processing mill was built and ore treatment began in 1971.

As had been the case throughout the history of mining at Kanmantoo, the marginal qualities of the ore body meant that the mine was highly susceptible to fluctuations in copper prices, and price falls in 1976 finally put an end to over 130 years of mining history at Kanmantoo, albeit a temporary end.

The existing site inventory A number of heritage-listed sites have been recorded in the general area. The list presented in Table 2 and shown in Figure 10, has been compiled from a review of the following: x the Register of the National Estate (RNE) x the South Australian (formerly State) Heritage Register (SAHR) x the Australian Heritage Places Inventory (AHPI) x National Trust listings (NT) x the Mt. Barker District Heritage Survey (Hignett & Co. 1983) (MBHS) x the Mt. Barker Development Plan 2006.

13 Table 2: Details of the previously recorded non-Indigenous sites in the general area

Map ID SAHR NT MBHS RNE ID Status Name Detail Nominated ID Significance

NIS-001 12371 3224 3/09/083/0075 Aclare Mine The mine complex covers State Historic 79ha and incorporates a circular area500m radius Indicative Site centred on the former Mine Managers residence. Dissected by the SE Freeway. NIS-002 7530 223 3/09/083/0014 Bremer Mine Mine operated between State 1850-1875 and then after 1907 for a Registered Buildings further 14 years. Stone buildings, chimney, pump house and engine house remain, about 1 km NW of Callington. NIS-003 10501 434 220 3/09/083/0014 Bremer Mine Stone settling tank (circle State partitioned into quarters) now in ruins about 1km Registered Settling NW of Callington Tanks NIS-004 7545 3/09/083/0027 Callington Former mining town ca. State and 1850 with Cornish influence in architecture. Various Registered Bremer Mine buildings and structures occur throughout the historic precinct. NIS-004 10628 432 Former Bridge Street Callington. Callington Flour Mill. NIS-004 10486 437 231 Former 32 Montefiore Street State Callington Callington. Police Station NIS-004 7924 3/10/143/0001 Former Flour Prominent building within Mill. Callington (Bridge Street). Registered NIS-004 7564 435 224 3/09/083/0045 Public School North Tce, Callington. State Registered

14 Table 2: Details of the previously recorded non-Indigenous sites in the general area (Continued)

Map ID SAHR NT MBHS RNE ID Status Name Detail Nominated ID Significance

NIS-004 7518 436 225 3/09/083/0002 St Peters Church was erected in State Lutheran 1856 with additions in c1880 (porch), 1884 Registered Church (iron roof) and 1934 (interior renovations). The church is located on Baker Street, Callington. NIS-004 216 Former Main Street, Callington. Local shop, NIS-004 3163 217 Uniting Off Main Street, Local Church. Callington, built 1858. NIS-004 226 Callington Built 1908 used as a Local Hall roller skating rink. NIS-004 3162 227 Former Built 1912 originally a Local Store general store. Montefiore Street. NIS-004 229 Callington Original license issued to Local Hotel Thomas Lean in 1850. NIS-004 230 House Former Lutheran Manse Local built in 1864 NIS-005 10499 433 218 3/09/083/0014 Bremer Part of the Bremer Mine State Mines complex. Domed hut owned by Worthing Registered Explosive Mining Co. Hut NIS-006 11491 431 211 3/09/083/0013 Erskine Stone and cast iron State Bridge construction across the Bremer River, Registered Callington, opened in 1890. The bridge served an important role in linking the mines of Callington district with Adelaide. NIS-007 202 Miner's Earliest original miners Local Cottage cottage in Kanmantoo ca 1850s NIS-007 204 Wesleyan Church built c. 1865 at State Methodist height of mining activity at Kanmantoo Church to cater to Cornish miners. Constructed of random stone. NIS-007 206 St Thomas Random coursed stone Local Church built 1858. Kanmantoo. Roman Catholic Church

15 Table 2: Details of the previously recorded non-Indigenous sites in the general area. (Continued)

Map ID SAHR ID NT MBHS RNE ID Name Detail Nominated Status Significance

NIS-007 207 Old School Schooling in Kanmantoo Local began 1857 probably in the Methodist Chapel. The Dept. Ed. secured stone building which served as both classroom and teachers residence. Closed in1921 . NIS-007 208 Black Dog Inn First hotel in Kanmantoo State built 1853. Main Street Kanmantoo. NIS-007 213 Brittania Hotel Early hotel in Kanmantoo State with first license granted to William Cornelius in1857. Main Street Kanmantoo. NIS-007 215 Kanmantoo Hotel Coach Staging Post and Local Hotel with first license issued 1863. The hotel lasted for the peak mining period at Kanmantoo only.

NIS-008 203 "Crofton" Land was originally owned Local by SA Company ca. 1853. Residents lived in shepherds hut and later cob house of mud and straw . NIS-009 214 Kanmantoo Built around 1846 for the SA State Company mine manager Captain Tonkin Homestead . NIS-010 221 "Allanbie" House and outbuildings built Local 1847. NIS-011 Being Paringa Mine and Site has been recorded and Possibly State included in recent heritage review, which recommended that it should be included on the State Heritage Register. reviewed Smelting Works The site includes various for structures including flue, chimney (2), engine house inclusion and other buildings Its statement of significance is not available at this stage.

16 Summary

The long history of mining in the Kanmantoo district has manifested in the landscape in a variety of ways. Perhaps the most notable imprint is the expanse of denuded hills seen when driving along the South Eastern Freeway. Enormous amounts of timber were felled for both the smelters and more importantly the Bremer engine house and water pumps. While cadastral boundaries have been altered since the initial Special Mineral Survey, much of the original 1,000 acre section outlines can still be seen in land tenure today, with modem fence lines and road layouts a legacy of this early survey (see Figure 9).

Numerous mines of various size and success scatter the landscape as can be seen in Figure 8. Chilman (1982) provides a detailed account of the history and extant structures of the Aclare Mine site, which, along with the Bremer Mine, represents one of the best preserved mining complexes in the district as evidenced in its heritage listing. The complex includes, a chimney, furnace, Manager's office, engine house and extensive underground remains. As stated in its RNE listing, the Aclare Mine Historic Site "illustrates a later phase of mining activities and techniques from the earlier Cornish style copper mining period ... a significant remnant of silver-lead mining utilising processes not readily found elsewhere in South Australia".

Chilman also notes that in the Kanmantoo mine area, remnants of slag heaps, foundations of early structures, scars and holes of the old shafts, some relics of the larger operations and a few structures can be found, though most of the structures have been neglected and are in a poor state of preservation. Of the extant structures at the Paringa mine, the most significant include the white washed Cornish Chimney perched on the ridge of MacFarlane Hill above the engine house and flue, and probably the first such structure built in the district (see Figure 10). A newer brick stack (see Figure 11) and several stone tanks are also present including a settling tank, one of only two of its kind in South Australia (the second being located at the Bremer Mine) and perhaps the most significant relic at the site. The characteristic partitioned structure of the tank can clearly be seen in aerial photography (see Figure 12). This complex of structures is being considered for inclusion on the SA Heritage Register, as discussed above.

17 5.0 Survey

5.1 Survey design and methodology Prior to the site inspections a review of maps, previous reports and literature related to the mining and social history of Callington and Kanmantoo and surrounding areas was undertaken. A review of historic mining records and plans held by the Minerals Resources Group of Primary Industries and Resources South Australia (PIRSA) was also completed. High resolution aerial photographs (supplied by Hillgrove Resources) and other digital data showing the areas of the Kanmantoo Copper Project and environs were also reviewed.

The survey methodology was to examine all of the exposed ground surface at areas containing historic relics on foot whilst other parts of the Kanmantoo Copper Project area were examined using a mixture of vehicle based survey and foot survey.

A distance of 10 metres was usually maintained between each of the observations and this is the accepted optimum distance for the most efficient and effective coverage for site surveys. Some of the areas that had greater ground cover were examined using a closer spacing of the observations (between 5-10 metres). The location of each area, the present ground surface and previous disturbances were noted where these were obvious.

Photographs were taken at all locations where historic structures or artefacts were observed in order to document the present ground surface and the vegetation present at the time of the field inspections (see Plates 1-20).

In summary the survey and recording strategy used for the Kanmantoo Copper Project was: • To examine the entire project area for the presence of any building remains or historic artefacts related to the prior use of the area • The careful documentation of all areas containing building remains that were located • The taking of photographs of all building remains and their position on the landscape was recorded using GPS • The production of measured scale drawings for all the building remains showing the remaining standing structures as well as the spread of building material that had fallen from the original structures as well as any associated historic artefacts

5.2 Constraints on the survey The majority of the study area has been subjected to varying degrees of previous surface modification, due to the construction of previous mining infrastructure and earlier mining activities on or near the study areas as well as farming activities in other areas.

18 The ground surface in small sections of the northern parts of the study area was partially to completely obscured (varying from 0%-100% visibility) by ground cover and other native vegetation. It is possible that archaeological material may have been present in these parts of study area but if present would have been obscured from view because of the amount of vegetation in the area at the time of the survey. However, the main historical features were all very visible at the time of the site inspections.

19 6.0 Survey Results Extensive recording of all of the historic structures located in the study area has been conducted and as result there is a large database of information which includes in excess of 900 photographs and field scale drawings that were produced as a result of the 2007 field work.

During the non-Indigenous archaeological survey 6 (six) areas containing historic building remains related to the operation of the Paringa Mine and Smelter as well as the Paringa Homestead were identified within the proposed project area (see Appendix 1 for a full list of the coordinates of the locations of the building remains that were documented during this study). It should be noted that no plans or records pertaining to the layout of the Paringa Mine complex were located during the research on the Paringa Smelter which would assist in definitively assigning the original functions of many of the historic structures located in this study. All of the structures in this area appear to have been constructed of locally quarried stone with evidence that the bricks used in parts of the structures were sourced locally from the Watt brickworks that was located in nearby Harrogate from the time of the construction of these structures until the 1970’s.

These structures identified as part of the survey include:

x The Paringa Homestead located to north of the Paringa Mine and Smelter and is still in use as a residence (see Plates 5 to 12). The main homestead building is located approximately 1.25 kilometres to the north, north west of the Paringa Smelter complex. The homestead building, originally constructed in approximately the 1880’s or the 1890’s, has been substantially extended on the northern end of the building in recent years (see Plates 9 and 10). The buildings construction may have utilised some of the stone material from other historic structures within the local area. The homestead appears to be in a good state of repair.

On the western side of the homestead an old stone cistern/tank was identified, originally used to harvest rainwater from the roof of the homestead (see Plate 8). The homestead structure was not included in the 2004 Mount Barker Heritage Survey as being of local heritage significance, the authors of that report assessed the homestead as not fulfilling the criteria for heritage nomination according to the criteria mentioned in Section 3.2 of this report. If mining commences at the site it will be removed during mining activities.

x The second of the remains is reported by local knowledge as being the mine manager’s residence, this structure is located some 1.28 kilometres to the south of the Paringa Homestead, 25 metres to the east of the Adelaide to Melbourne railway line at the south of the study area (see Plates 13 to 16). The ruin appears to have consisted of two or possible three main rooms and would probably have been constructed at the same time as the Paringa Mine and Smelter, during the period from 1845 to the 1870’s.

20 The area surrounding the structure has been used for agriculture and had been ploughed prior to the site inspections. The immediate vicinity of the structure has been avoided by the ploughing activity. The ploughed area immediately to the north east, east and south east of the mine manager’s residence contained traces of historic domestic household debris consisting of broken shards of bottle glass and broken pottery including parts of blue willow pattern tableware. These were the only traces of domestic historic artefacts found during the heritage assessment.

The remaining parts of the structure consist of a fireplace and chimney breast with parts of the adjoining walls to the east of the main fireplace structure (see Plates 13 to 16). The kitchen measured 4.5 metres by 3 metres and the large adjoining room measured 4.5 metres by 9.5 metres (see Figure 4 for a field scale drawing of the mine manager’s residence). The entire building had been built in a slightly excavated area and surrounded by a low stone retaining wall on the northern, western and southern sides of the house (see Figure 4 and Plates 13 and 16). A part of the adjoining wall on the eastern side of the chimney breast still had the original plaster attached to the stone wall (see Plate 15). As can be seen in Plates 13 to 16 the entire structure was found to be in a very poor state of preservation. x The remains of the closest historic structure to the mine manager’s residence are the remains of a small one roomed historic building approximately 145 metres to the north of the residence (see Figure 5 for a field scale drawing of small ruin adjacent to the mine managers residence and see Plates 17 to 20). All that is still standing of this structure are two small sections of stone walls and chimney remains nestled in an area of peppercorn trees, which are often found associated with areas containing historic buildings and dwellings. The stone walls of the building measured 5.3 metres by 3.4 metres and the adjoining chimney remains measured 1.4 metres by 1.4 metres at the base and measured 1.3 metres high (see Figure 5 and Plate 19). The interior of the fireplace is lined with firebricks which indicates that the structure more than likely was used for industrial activities connected with the operation of the Paringa mine site, possibly a blacksmiths shop or similar. There were no historical artefacts discovered in the area of this structure that would assist in assigning a specific function.

The area surrounding this structure has been significantly impacted upon by a variety of activities which may have disturbed any artefacts originally associated with this structure. The ruins are located within 10 metres of the Paringa homestead access track, with a pile of building materials located between this track and the ruin (see Plate 20). The area to the west and south of the structure has been ploughed and cultivated in recent times. x The remains of another small historic structure are located adjacent to the Paringa Smelter complex, some 85 metres west south west of the Paringa engine house structure itself (see Plates 21 to 24, particularly Plate 22 which shows the Paringa Smelter complex in the background). The remaining stone walls indicated that the original building would have measured approximately 3.5 metres by 4 metres (see Figure 5 for a field scale drawing of the ruin adjacent to the Paringa Smelter complex). Only sections of the original stone walls are still standing and a number of metal artefacts were located at the western and south western extremities of the building. These consisted of two hand riveted steel tanklike objects and a large, flat riveted plate; indicating that the building was associated with the mining or smelting operations at the Paringa mine. No other historic artefacts were located in the vicinity of this structure; all of the area immediately to the west of the Paringa Smelter complex has been subject to contour ploughing and significant revegetation activities which would have disturbed any remaining historic material..

21 x The remains of the stone foundations for the settling tank for the Paringa Mine are located adjacent to the Paringa Smelter; and is situated some 70 metres to the north of the engine house structure (see Plates 25 to 28). The foundations are circular with a diameter of approximately 12 metres. It is constructed in a cartwheel design with four walls constructed out into the centre of the structure to support the weight of the liquid in the tank that would have been placed on the base (see Plates 26 to 28). This structure was found to be in a reasonable state of preservation, but as can be seen in the previously mentioned photographs, several sections of the walls are starting to deteriorate. x The remains of the Paringa creeping chimney and stone stack are located immediately to the east, south east of the engine house structure (see Plates 29 to 36). The chimney stack is located approximately fifty five metres from the south east corner of the main engine house structure and the first remaining section of the creeping flue is located approximately thirty five metres from the same point. There is approximately twenty metres of the creeping flue that remained at the time of this assessment, starting a part of the way up the slope and terminating at the base of the chimney stack (see Plate 30).

Both of these structures were found to be in a very poor state of preservation due to lack of use and having being used for target practice for military exercises during both World War I and World War II. It has been reported that a temporary military camp was set up during World War II in fairly close proximity to the Paringa Smelter complex. The creeping flue is reported to have visibly deteriorated, through natural erosion, in the short time that Hillgrove Resources has been located in the area (personal communication John Popow 27/3/2007). The chimney stack was found to be in very poor condition with the entire eastern side of the chimney having eroded and collapsed from the top to the base, possibly as a result of the previously mentioned military activities in the area (see Plates 31 and 33). x The remains of the Paringa Smelter engine house dating from the period from 1845 to the 1870’s; consist of a main stone structure measuring approximately seven metres from east to west (see Plates 37 and 38) and ten metres from north to south (see Plates 39 and 42). In the southern wall of the main engine house structure there is an aperture which protrudes several metres into the structure with a large wooden log built into the structure on its eastern side (see Plates 42 and 44).

Immediately to the west of the main stone building, an additional brick and stone structure, showed evidence of having housed a pair of flywheels or similar (see Plate 43). There are also a number of threaded steel bars that are fixed into the top courses of brickwork in this section of the structure which indicates that other machinery would have been fixed to the stone and brick foundations. It is known that in the past when marginal mines such as the Paringa mine ceased being used the mechanical superstructure and other machines were removed immediately and relocated at other mines or sold off to be used elsewhere.

Further to the west of the brick and stone foundations mentioned above there is a low stone paraphet which has seven threaded steel bars, very similar to those mentioned above, protruding from the top courses of stonework. A hand riveted metal artefact was located in this area which may have been part of a firebox or tank, it appears to be of a similar age to the rest of the structures in this area. Immediately to the west of the stone paraphet is an excavated area in the hillside leading from the west and terminating at the paraphet structure (see Plate 37). This may have been used as a loading facility for the smelted copper ore or may have

22 housed more smelting infrastructure. Another larger metal artefact is located in this area and is similar in design and construction to the metal artefact located immediately to the east (see metal object in the foreground of Plate 37).

The main stone structure of the engine house and the brick and stone foundation for the engine house machinery, were found to be in fairly sound structural condition. The stone paraphet structure is starting to crumble in the centre and will continue to deteriorate further with the effects of time and erosion (see Plate 37).

All of the above structures, with the exception of the remains of the Paringa engine house and the stone settling tank, were found to be mostly in a very poor state of preservation (see Figures 4-6 and Plates 5-44). The area containing the Paringa engine house, settling tank, chimney and flue are fenced and as such are protected from any immediate accidental damage by machinery used in exploration or mining activities in this area, There are also areas within the fenced off section that contain old shafts and signs on the fence that warn people of the dangers of possible injury.

23 7.0 Assessment of significance The Paringa Smelter, creeping chimney and stack were examined during the 2004 Mount Barker heritage survey and the authors of that report recommended that the complex be included on the State Heritage Register. It was stated in that report the Paringa Smelter demonstrated characteristics that fulfilled three of the significance criteria that are listed in full in Section 3.2 of this report: a) it demonstrates important aspects of the evolution or pattern of the state’s history or evolution, being a surviving relic of the 19th century copper mining and smelting in the Kanmantoo/Callington area. b) it has rare, uncommon or endangered qualities that are of cultural significance, being an uncommon surviving example of an external flue and being endangered by disuse and previous vandalism. e) It demonstrates a high degree of creative, aesthetic or technical accomplishment or is an outstanding representative of particular construction techniques or design characteristics, being a copper smelting complex which displays an outstanding design and a considerable technical accomplishment in terms of the construction of the creeping chimney. (Heritage Online 2004:393)

See Appendix 3: Section of Mount Barker Heritage Survey (2004) for the full details of the assessment of the Paringa Smelter complex. comments

The Paringa Smelter complex has not been included on the State Heritage Register at the time of this current report and there is no intention by Heritage SA to include it on the State Heritage Register (personal communication Hamish Angas March 2007). As has been mentioned earlier in this report none of the historic structures within the study area are included in any of the State or Federal non-Indigenous heritage registers or lists and as a result there are no legal constraints to activities that may have an impact on these structures.

The remains of the Paringa creeping chimney and stone stack were found to be in a very poor state of preservation due to having being used for target practice for military exercises during both World War I and World War II and the subsequent destabilising affect of this damage to both structures. These structures are considered to have a high heritage significance value because they are a rare example of this form of technology with few other similar remains in the state, most notably at the Wheal Ellen Mine near Strathalbyn.

24 The Paringa Smelter engine house was found to be in a good state of preservation and is considered of heritage value because it is a surviving part of the Paringa Smelter complex and in reasonable structural condition.

The remains of the stone foundations for the settling tank for the Paringa Mine was found to be in a reasonable state of preservation, but as can be seen in the previously mentioned photographs several sections of the walls are starting to deteriorate. This structure is considered to have a high heritage significance value, because it is a rare example of this form of technology with few other similar remains in the state. The most notably exception is the Wheal Ellen Mine near Strathalbyn.

The other structures that are in the vicinity of the Paringa Smelter complex are mostly in very poor condition and consist mainly of remaining small sections of walls. As these structures are not structurally sound examples of buildings associated with the historic mining activity, they are considered to have a low heritage significance value

All that remains of the mine manager’s residence is over 14 linear metres of deteriorating walls, and a chimney breast. This building is considered to have a low heritage preservation value because of the poor condition of the remaining parts of the building.

The small one roomed historic building to the north mine manager’s residence is again a small deteriorating section of the original building. This building is considered to have a low heritage preservation value because of the poor condition the remaining parts of the building.

The small historic structure located adjacent to the Paringa Smelter complex, is considered to have a low heritage preservation value because of the poor condition the remaining parts of the building.

The Paringa Homestead was not included in the 2004 Mount Barker Heritage Survey as being of local heritage significance, the authors of that report assessed the homestead as not fulfilling the criteria for heritage nomination according to the criteria mentioned in Section 3.2 of this report.

25 8.0 Potential impacts on non-Indigenous Cultural Heritage The results of the non-Indigenous cultural heritage study for the Kanmantoo Copper Project area has indicated that all of the historic structures that were identified, with the exception of the Paringa Homestead, are likely to be located outside the current proposed mining footprint. It is possible that nearby mining operations could have an indirect impact on some of the historic structures that were located during this study. Structures such as the Paringa smelter chimney and flue were found to be in a very unstable condition and it is therefore likely that blasting or excavation activities in close proximity to the flue and chimney could cause the complete collapse of the chimney and further deterioration of the flue. The recommendations section in this report, suggests a range of strategies that could be used to minimise the indirect impacts of the proposed project on the historic building remains

The following points summarise the impacts on the historic buildings located within the Kanmantoo Copper Project area:

x There will no direct impacts to any of the structures (with exception of the Paringa Homestead) that were located and recorded during the non-Indigenous heritage survey, as they are not located within project footprint.

x A search of all of the relevant federal, state and local non-Indigenous heritage Registers has been conducted and none of the historic buildings within the project area are included in any of these Registers

26 9.0 Recommendations It is recommended that any potential future works in the vicinity of the Paringa Smelter complex be conducted in a way that will avoid or minimise any adverse impacts on these structures. Impacts on the historic structures within the project area may be avoided, mitigated or minimised by utilising the following strategies:

x Designing mining infrastructure in order to prevent any erosion or other processes that may impact further on the remaining historic structures.

x Minimising vibration from excavation or blasting in close proximity to the remaining historic structures.

x Maintain existing fencing around Paringa Smelter Complex, so that inadvertent damage by machine operators or others of the remaining historic structures will not be possible.

x Erection of signage at the other historic structures to warn machine operators or others that the historic structure in that vicinity should be avoided.

x Undertaking a further assessment of mitigation options if the proposed mining footprint is extended in the future, which may impinge on the Paringa smelter complex or the Paringa settling tank.

x Include a section on non-indigenous cultural heritage in the site induction to ensure that site personnel are aware of remaining historic structures.

x Investigating the option of temporary stabilisation of remaining structures if it is discovered that future mining activities could cause further damage to those structures. x Conducting a full photogrammetric recording of these structures, prior to any mining activity. In this way a full photographic and detailed spatial recording of the structures will enable exact images of the structures to be viewed in fine detail and in high spatial precision.

It is recommended that the removal of the Paringa Homestead as a part of mining activities in the area can be partially mitigated by the:

x Investigation of the option of interested parties being able to salvage historic building material from the Paringa homestead and outbuildings so that these materials could be used by local community heritage groups in activities such as local building and/or restoration projects

If future operations require the removal of some of the remaining historic structures in poor condition, it is recommended that impacts could be mitigated by utilising a range of strategies that include the:

27 x Exploration of the option of the stockpiling of the stone and brick building material from historic structures so that it can be used by local community heritage groups in building restoration projects if mining footprint expands.

28 References

Chilman, JR. 1982 Silver and a trace of gold: a history of the Aclare mine. South Australian Department of Mines and Energy.

Chilman, J.K. and Jeffrey, WT. 1975 Historic mines near Monarto. Monarto Development Commission, Aboriginal and Historic Relics Administration.

District Council of Mount Barker 1982 Outer Metropolitan Planning Area Development Plan. Supplementary Development Plan: Mount Barker Rural Areas and Environs.

Geological Society of Australia: South Australian Division (GSA) 1972 The Kanmantoo copper deposit: geology and mining. Kanmantoo Mines Ltd. and Mines Exploration Pty. Ltd.

Gibbs, R.M. 1982 A history of South Australia: from Colonial days to the present. Southern Heritage Publications.

Hallack, E.H. 1892 Our Townships, Farms and Homesteads. The Southern District of South Australia. Adelaide. W.K. Thomas & Co. P. 61-6

Heritage Online 2004 Mount Barker Heritage Survey. A report to the District Council of Mount Barker.

Hignett and Co. 1983 Mount Barker District Heritage Survey. Department of Environment and Heritage.

Laut, P., Heyligers, P.C., Keig, G., Loffler, E., Margules, C., Scott, R.M. and Sullivan, M.E. 1977 Environments of South Australia. CSIRO, Canberra.

Mills, A.R. 1981 Kungna Tuko: a history of Kanmantoo. Kanmantoo Progress Association.

Mills, A.R. 1983 Where Copper lay now children play: Callington Primary School 1858-1983.

Morphett, G.C. n.d. Early Mount Barker. Pioneers Association of South Australia.

National Trust n.d. Register of Historic buildings 1972 - 1982.

Pearson, M. and Sullivan, S. 1995 Looking after heritage places: The basics of heritage planning for managers, landowners and administrators. Melbourne University Press.

Schmidt, B. 1983 Mountain upon the Plains: A history of Mount Barker and ifs surroundings. District Council of Mount Barker.

Stow, T.P. 18 83 South Australia: Its History, Productions and Natural Resources. Government Printer Adelaide

Wood, V. 2006 The Proposed Kanmantoo Mine: Desk-top Indigenous and Non-Indigenous cultural heritage study A report to Parson Brinkerhoff and Hillgrove Resources Limited

29 Appendix 1:

Hillgrove Resources March 2007: Kanmantoo Copper Project Area Non-Indigenous Heritage Assessment Results Hillgrove Resources March 2007 Kanmantoo Copper Project Non-Indigenous Heritage Assessment Results Datum: Australian Geocentric Datum GDA94

Easting Northing Feature Name Comments GDA94 GDA94

Mine managers residence ruin 317581 6114030 Waypoint #75, north west corner Mine managers residence ruin 317586 6114019 Waypoint #76, south west corner Mine managers residence ruin 317595 6114022 Waypoint #77, south east corner Mine managers residence ruin 317591 6114035 Waypoint #78, north east corner

Ruin near mine managers residence 317607 6114170 Waypoint #79, south east corner Ruin near mine managers residence 317598 6114167 South west corner Ruin near mine managers residence Waypoint #80, western side, near 317596 6114173 chimney Ruin near mine managers residence 317605 6114178 Waypoint #83, north east corner

Ruin near Paringa smelter 317788 6114181 Waypoint #114, south east corner Ruin near Paringa smelter 317780 6114186 Waypoint #115, north east corner Ruin near Paringa smelter 317777 6114182 North west corner Ruin near Paringa smelter 317784 6114177 North east corner

Paringa smelter settling tank Waypoint #137, northern edge of 317874 6114269 settling tank Paringa smelter settling tank 317878 6114261 Eastern edge of settling tank Paringa smelter settling tank 317871 6114257 Southern edge of settling tank Paringa smelter settling tank 317867 6114264 Western edge of settling tank

Paringa smelter engine house 317852 6114196 Waypoint #129, south west corner Paringa smelter engine house 317853 6114203 Waypoint #124, north west corner Paringa smelter engine house 317869 6114206 North east corner Paringa smelter engine house 317871 6114198. South east corner

Stone wall adjacent to Paringa smelter 317880 6114164 Approximate location

Paringa smelter chimney stack and Also eastern end of the remains of 317925 6114187 creeping flue creeping flue Paringa smelter chimney stack Western end of the remains of 317913 6114186 creeping flue creeping flue

Paringa homestead Waypoint #54, north east corner of 317201 6115211 homestead Paringa homestead Waypoint #55, south east corner of 317195 6115198 homestead Paringa homestead 317185 6115219 North west corner of homestead Paringa homestead 317180 6115200 South west corner of homestead Appendix 2:

Hillgrove Resources Limited Kanmantoo Copper Project Figures and Plates . Kanmantoo Copper Project

Figure 1: Relief map of Australia, showing location of the study area Figure 2. The location of the historic structures located in the Kanmantoo Copper Project area, within the proposed mining footprint.

Figure 3. Disturbed areas from previous mining activities within the Kanmantoo Copper Project area. Figure 4: Field scale drawing of the mine managers residence ruin Figure 5: Field scale drawing of small ruin adjacent to the mine managers residence

Figure 6: Field scale drawing of the ruin adjacent to the Paringa Smelter complex Plate 1: Kanmantoo Copper Project area, looking south towards Paringa smelter from 317760/6114412 (GDA94 Map Zone 54H)

Plate 2: Kanmantoo Copper Project area, looking north from 317752/6113622 Plate 3: Paringa smelter creeping chimney and stack, looking north west from 317927/6114188

Plate 4: Paringa smelter creeping chimney and stack, looking south west from 317930/6114199

Plate 5: Paringa Homestead, looking N/WF 317203/6115179 Plate 6: Paringa Homestead, looking N/WF 317203/6115179

Plate 7: Paringa Homestead, L N/E from 317187/6115187 Plate 8: Paringa Homestead stone cistern, LSF 317176/6115228

Plate 9: Paringa Homestead veranda, LSSWF 317201/6115211 Plate 10: Paringa Homestead veranda, LNNEF 317195/6115198

Plate 11: Paringa Homestead veranda, LSEF 317183/6115197 Plate 12: Paringa Homestead veranda, LNNWF 317183/6115197

Plate 13: Manager’s residence, LSSE from 317582/6114034 Plate 14: Manager’s residence, LN/E from 317583/6114016

Plate 15: Internal wall mgr’s residence LS/WF 317590/6114030 Plate 16: Manager’s residence looking S/EF 317583/6114028

Plate 17: Small structure, looking WNWF 317607/6114170 Plate 18: Small structure looking N from 317605/6114162

Plate 19: Small structure, looking east F 317596/6114173 Plate 20: Small structure, looking S/WF 317609/6114180

Plate 21: Small structure nr smelter, LSF 317779/6114187 Plate 22: Small structure nr smelter, LN/E from 317775/6114179

Plate 23: Small structure nr smelter, LNF 317784/6114174 Plate 24: Small structure nr smelter, LWF 317788/6114179

Plate 25: Settling tank, looking south from 317863/6114267 Plate 26: Settling tank, looking south east from 317874/6114269

Plate 27: Settling tank, looking south from 317874/6114269 Plate 28: Settling tank, looking NNW from 317889/6114240

Plate 29: Paringa smelter complex, LNF 317831/6113780 Plate 30: Creeping chimney and stack, LN/E from 317879/6114180

Plate 31: Creeping chimney and stack LSW 317930/6114199 Plate 32: Detail of creeping chimney and stack, LSW 317930/6114199

Plate 33: Creeping chimney and stack, LSW 317930/6114200 Plate 34: Creeping chimney and stack, LNEF 317880/6114164

Plate 35: Creeping chimney and stack, LEF 317852/6114204 Plate 36: Creeping chimney and stack, LEF 317854/6114197

Plate 37: Paringa smelter, looking E from 317854/6114211 Plate 38: Paringa smelter, looking E from 317854/6114211

Plate 39: Paringa smelter, looking S/EF 317866/6114215 Plate 40: Paringa smelter, looking west from 317876/6114208

Plate 41: Paringa smelter, looking S/WF 317876/6114208 Plate 42: Paringa smelter, looking N from 317869/6114193

Plate 43: Paringa smelter, looking N/W F 317866/6114194 Plate 44: Paringa smelter, detail of sthn wall LNF 317870/6114194 Appendix 3:

Section of Mount Barker Heritage Survey (2004)

Appendix 10

Kanmantoo Copper Project Traffic Impact Assessment Kanmantoo Copper Mine Traffic Impact Assessment

Hillgrove Resources Limited

28th August 2007

Traffic Impact Assessment

Prepared for Hillgrove Resources Limited

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Prepared by Maunsell Australia Pty Ltd Level 6, 100 Pirie Street, Adelaide SA 5000, Australia T +61 8 8236 2222 F +61 8 8232 0396 www.maunsell.com ABN 20 093 846 925

28th August 2007

60023747

© Maunsell Australia Pty Ltd 2007

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Document Traffic Impact Assessment

Ref 60023747

Date 28th August 2007

Prepared by Steve Mitchell

Reviewed by Dean Mathews

For Information

Revision History

Authorised Revision Revision Details Date Name/Position Signature Steve Mitchell A 23/04/07 Draft report for comment Associate Director Steve Mitchell B 1/05/07 Revised draft report Associate Director Steve Mitchell C 17/08/07 Draft Final report Associate Director Steve Mitchell D 23/08/07 Final report Associate Director Steve Mitchell Final report incorporating E 28/8/07 all comments Associate Director

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Table of Contents Executive Summary i 1.0 Introduction 1 1.1 Background 1 1.2 Route Options 1 1.3 Restricted Access Vehicles 2 1.4 Heavy Vehicle Alternatives 3 2.0 Traffic Generation 4 2.1 Construction Traffic 4 2.2 Operations traffic 5 2.3 Timing 5 2.4 Existing traffic volumes 5 2.5 Summary 5 3.0 Road design criteria 7 3.1 Road classification guidelines 7 3.2 Amenity and environmental considerations 7 3.2.1 Land use 7 3.2.2 Noise 8 3.2.3 Vibration 8 3.2.4 Dangerous Goods and potential load spillage 8 3.2.5 Dust, splash and spray 8 3.2.6 Air quality (odours and fumes) 8 3.2.7 Vegetation and wildlife 8 4.0 Route assessment 9 4.1 Option 1 9 4.1.1 Upgrading requirements 10 4.1.2 Traffic management considerations 15 4.2 Option 2 15 4.2.1 Upgrading requirements 15 4.2.2 Traffic management considerations 18 4.3 Option 3 19 4.4 Monitoring and management 19 5.0 Traffic management 20 6.0 Conclusions 21 Appendix A Locality Plan, Layout Plan and Enlargement Plan a Appendix B Traffic Generation Model b Appendix C Private Access Road c Appendix D KCCCC Recommendations – Hillgrove Response d

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Executive Summary Prior to the commissioning of this report by Maunsell, Hillgrove Resources completed a preliminary investigation into access options to transport copper concentrate from site of the proposed re- development of the Kanmantoo copper mine to the smelters for final refining. Hillgrove has a life of mine offtake agreement with Sempra Metals to supply concentrate to their overseas customers, who are likely to be smelters in northern China. The results of this preliminary investigation selected Port Adelaide for the shipping of final mine product to customers (concentrate) with road transport being the preferred option for transfer of concentrate from the Kanmantoo Mine to Port Adelaide.

This report investigates and compares options for road transport access from the proposed Kanmantoo Copper mine to the South Eastern Freeway using the existing local road network and utilising properties which Hillgrove has purchased or has other arrangements in place. The access routes must be capable of carrying traffic generated in the construction and operational phases of the mine. Currently, an approved Restricted Access Vehicle (RAV) route exists along East Terrace, Callington and along the South Eastern Freeway, through the Adelaide metropolitan area to Port Adelaide.

The route options considered were: Option1–BackCallingtonRoad,CallingtonRoad,PrincesHighway,EastTerrace. Option2–MinesRoad,PrincesHighway,EastTerrace. Option 3 - Incorporating a private access route connecting the mine directly to the Princes Highway, bypassing Kanmantoo Township.

A traffic generation model for the construction and operational phases of the mine was provided by Hillgrove Resources Limited. Estimated traffic volumes (AADT) are approximately 110 vehicles per day including 20 commercial vehicles with 16-25 heavy vehicle movements per day, depending on the truck type utilised.

A visual assessment of route options 1 and 2 was undertaken. Road design criteria for a B Double (L2) route based on the National Transport Commission draft Guidelines were applied to both route options to determine the extent of compliance and works required to achieve compliance.

Although Route Option 1 is the shortest distance from the mine site to the South Eastern Freeway, the extent of upgrading required to Back Callington Road and Callington Road would result in significant cost, loss of roadside vegetation and acquisition of private property. Two level railway crossings on this route would also require significant upgrading.

Route Option 2 is 4.7 km longer but most of the route is sealed and complies with the road design criteria set by the “Route Access Assessment for Restricted Access Vehicles” published by the Department of Transport Energy and Infrastructure. However the route passes through a residential area in the township of Kanmantoo and environmental and community impacts must therefore be considered.

Route Option 3 – recommended option. The construction of a private access road bypassing the Kanmantoo township would eliminate the need for heavy vehicles from the mine to pass through the town. The alignment of the private access road would need to take into consideration the environmental and social impacts on the land and existing dwellings. The private access road would be available for all vehicles associated with the mine operation and access will not be permitted by the general public. This will be achieved through the provision of appropriate signage to prevent unauthorised access.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 For any route Hillgrove would establish a comprehensive Traffic management Plan which would include:

! Establishment of an ongoing community liaison program. ! Inclusion of noise amelioration measures in residential areas. These are:

o Road signs at the approaches to the residential area requiring drivers not to use compression braking o Restriction on heavy vehicles movements to daylight hours (e.g. 6:00am – 6:00pm) o Restriction on speed of heavy vehicles through residential areas o Requirement for noise reduction equipment to be fitted to heavy vehicles and maintained in effective condition

Ongoing monitoring of the impacts of the route through residential areas should be undertaken. The monitoring should address public complaints, noise issues and road safety issues.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page ii 1.0 Introduction

1.1 Background Subject to obtaining the required approvals, Hillgrove Resources Limited propose to recommence mining operations at the Kanmantoo Copper Mine. The mine, which has been dormant for over 25 years, is estimated to contain reserves of 33.4 million tonnes at 0.9% copper and 0.2% gold. Proposed operations on site will include mining, crushing, processing and production of copper concentrate.

Prior to the commissioning of this report by Maunsell, Hillgrove Resources completed a preliminary investigation into access options to transport the copper concentrate from site to the smelters for final refining. Hillgrove has a life of mine offtake agreement with Sempra Metals to supply concentrate to their overseas customers, who are likely to be smelters in northern China. The results of this preliminary investigation selected Port Adelaide for the shipping of final mine product to customers (concentrate) and road transport was selected as the preferred option for transfer of concentrate from the Kanmantoo Mine to Port Adelaide.

Port Adelaide was selected for the shipping of concentrate by Hillgrove as it is the closest Port to the Kanmantoo Mine site with the necessary combination of transport infrastructure and required port facilities (handling, storage and ship loading).

Road transport was selected over rail transport due to the following factors: ! Although rail passes within 1 kilometre of the Kanmantoo Mine site, in order to load product it would be necessary for Hillgrove to construct a rail siding at the mine site. ! The rail system currently terminates approximately. 3 kilometres from Port Adelaide Berth 29 which would therefore require transfer to trucks from rail for the final 3 kilometres of transport, effectively leading to triple handling of the concentrate ! Rail transport costs are significantly higher than road transport costs for the transport of concentrate from the mine to Port Adelaide.

This report only investigates road transport route options between the mine and Port Adelaide. A portion of the route, common to all options investigated, is a designated B-double route. This extends from East Terrace Callington, along the South Eastern Freeway, Portrush Road, Grand Junction Road to Port Adelaide. This portion of the route is excluded from Maunsell's investigations.

It should be noted that Hillgrove Resources has not made a final selection on which type of heavy vehicles will be used for the transport of concentrate. Further evaluations of the options is currently underway.

1.2 Route Options The route options investigated were: Option 1: From the mine site, to Back Callington Road, east along Back Callington Road to Callington Road, north along Callington Road to Princes Highway, east along Princes Highway to East Terrace, then south to the South eastern Freeway interchange. Option 2: From the mine site, north along Mines Road, through the Kanmantoo township then east along Princes Highway to East Terrace, then south to the South Eastern Freeway interchange.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Option 3: The construction of a private access road (see Appendix C) that will pass across private land commencing opposite the mine access gate on Mine Road and traversing in a north easterly direction to link up with the Princes Highway north of Callington. From the Princes Highway to East Terrace, then south to the South Eastern Freeway interchange. This will avoid passing through Kanmantoo township.

There was extensive consultation with stake holders which included the local community, local councils and the Department of Transport Energy and Infrastructure. Appendix D details the issues raised by the Kanmantoo and Callington Community Consultative Committee (KCCCC) and Hillgrove’s responses. A more detailed analysis of each of the options 1-3 detailing the upgrading requirements for each is given in section 4 of this report.

1.3 Restricted Access Vehicles In assessing route options that will be capable of accommodating heavy vehicles up to B-double size and configuration, it should be noted that these vehicles are classified as Restricted Access Vehicles (RAV) and are therefore only permitted to travel on gazetted routes. None of the roads forming either of the route options, with the exception of East Terrace, are currently designated as gazetted RAV routes. Consequently, it will be necessary to formally apply to the Department of Transport Energy and Infrastructure (DTEI) for the selected route to be gazetted. The DTEI will consult with the relevant road authority for roads forming the route. For the options being considered, the relevant road authorities are:

Aclare Mine Road, Back Callington road, District Council of Mount Barker Callington road, Mines Road Princes Highway, East Terrace Department of Transport Energy and Infrastructure, Rural City of Murray Bridge

In determining an application for a gazetted B-double route, the DTEI will have regard to the frequency of traffic movements, the geometric design standard of the route and also the structural strength of the road pavement and its ability to withstand the loads applied by RAVs. Impacts on local communities affected by the movement of RAVs through their locality will also be taken into consideration. These impacts may include road safety and also environmental impacts such as noise, vibration and dust.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 2 1.4 Heavy Vehicle Alternatives Definitions: The heavy vehicles being considered for the haulage of copper concentrate from Kanmantoo Mine to Port Adelaide include rigid truck and trailer, semi-trailer and B-doubles. The statutory dimension limits for vehicles allowable on roads in South Australia are : ! Width 2.5 m ! Height 4.3 m ! Length 12.5 m (truck or bus) ! Length 19 m (articulated vehicle)

Exemptions may be allowed to the statutory dimension limits either by permit (generally for a limited time period) or by Government Gazette notice. Figure 1 below shows typical vehicle types and combinations that have been considered for the transportation of concentrate from the mine to Port Adelaide.

Figure 1: Heavy vehicle types

Vehicle Comparisons A brief summary of the heavy vehicles being considered is provided below Vehicle type Gross Combination Mass (GCM) Rigid truck and trailer 49.5 tonnes Semi trailer 45.5 tonnes B double 68.0 tonnes

From the above table it can be seen that 1 B-double vehicle carries the equivalent of approximately 1.5 semi trailers. Therefore the volume of traffic per day will be dependent on the type of vehicle utilised.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 3 2.0 Traffic Generation Traffic generated by the establishment and operation of the mine can be divided into construction traffic and operations traffic. Construction traffic will be traffic generated in the pre-mining phase when the mine infrastructure is being established. Operations traffic will be traffic generated as a result of the normal operating processes of the mine. Construction traffic will occur over a relatively short period of time during the establishment of the mine and may fluctuate in volume, whereas operations traffic will extend over the life of the mine and generally be constant in terms of volume and vehicle type.

2.1 Construction Traffic Traffic modelling has been undertaken by Hillgrove Resources to estimate the number and type of vehicles used in the construction and operations periods. The following assumptions were made in determining construction traffic movements: ! There is expected to be 85 construction personnel working on site over the construction period. ! As a result of car pooling and the use of mini buses for personnel transport, the associated light vehicle movements are based on 60 per cent of the number of personnel. ! The construction period is expected to extend over one year with associated heavy traffic activity distributed on a quarterly basis being First Quarter 20 per cent, Second Quarter 40 per cent, Third Quarter 30 per cent, Fourth Quarter 10 per cent. ! There is expected to be an overlap period of six months when mining operations will occur as well as construction. ! Construction traffic is likely to include tandem axle trucks, semi-trailers, low loaders (oversize loads) and B-Doubles.

The number of traffic movements during the construction period will be:

Vehicle type Vehicle movements per day Q1 Q2 Q3 Q4 Light vehicles (commuter) 80 142 212 232 B Doubles 1 1 1 13 (semi trailers) (1.5) (1.5) (1.5) (19) Trucks 2 2 2 4 Oversize loads 1 1 1 1 Total 84 146 216 250

Composition of vehicle types during the construction phase is:

Vehicle type Proportion by volume Q1 Q2 Q3 Q4 Light vehicles (commuter) 96.4% 96.6% 98.1% 95.1% B Doubles 1.2% 0.7% 0.5% 2.9% Trucks 1.2% 2.0% 1.0% 1.6% Oversize loads 1.2% 0.7% 0.5% 0.4%

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 4 2.2 Operations traffic Operations traffic includes mine product (concentrate) transport vehicles, delivery vehicles (fuel, explosives, and personnel commuter vehicles). The average annual daily traffic during the operating period for a typical year is expected to be:

Vehicle type Vehicle movements per day Proportion by volume (typical year) Light vehicles (commuter) 182 90.1% B Doubles 17 8.4% (semi-trailers) (25) Trucks 3 1.5% Total 202 100%

2.3 Timing During the mine operation most heavy vehicle movements will be associated with transport of concentrate product. Operating hours will be determined so as to minimise impacts of traffic on the local community but will be six days per week. Light vehicle movements will occur in peaks coinciding with changes in shifts. It is estimated that peak traffic will be 90 vehicles over a 30 minute period around shift changes. It is expected that light vehicle movements will be spread over all of the available route options including the Hillgrove bypass road (Option 3) where practicable.

2.4 Existing traffic volumes A traffic survey was carried out to determine traffic volumes and vehicle types using Back Callington Road and Mine Road during the week 21/05/07 – 28/05/07. The results are summarised in the table below. Vehicle data for Princes Highway and East Terrace were obtained from Department of Transport Energy and Infrastructure published information.

Road Cars Trucks Semi-trailers AADT* Mine Road 457 28 13 498 Back Callington Road 196 21 10 227 Princes Highway 1000 100 1100 East Terrace 640 110 750 ! AADT is Annual Average Daily Traffic.

Generators of commercial vehicles on Back Callington Road and Mine Road are: ! Barakee Quarries ! Neutrog Industries ! SA Mining Resources ! Hillgrove Resources (exploration drilling) ! Farm vehicles ! Road and railway maintenance vehicles

2.5 Summary During the construction phase, traffic is expected to be mainly light vehicles with a maximum of 12 heavy vehicles per day. In the operational phase, the number of heavy vehicles per day is expected to

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 5 increase to 20, of which 17-25 will be heavy vehicles depending on the type of vehicle utilised. It should be noted that some operations traffic is included in the third and 4th quarters of the construction phase to recognise that there is some overlap between construction and operations.

Traffic volumes will increase but adverse effects on Kanmantoo township will be minimised by incorporating the Hillgrove Bypass Road.

Location Existing volumes Predicted future volumes (vpd) (vpd) Without Bypass Road With Bypass Road Back Callington Road Cars 196 287 224 Trucks 21 23 21 Semi-trailers 10 10 10 Mine Road Cars 457 548 548 Trucks 28 30 28 Semi-trailers 13 13 13 Mine Heavy Vehicles 0 17-25 (depending on 0 type) Princes Highway Cars 1000 1000 Commercial vehicles 100 120 East Terrace Cars 640 730 Commercial vehicles 110 130

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 6 3.0 Road design criteria

3.1 Road classification guidelines The National Transport Commission has published Interim Road Classification Guidelines for roads used by Performance Based Standards (PBS) vehicles. The guidelines provide four classifications for roads depending on the type of vehicles requiring access. Level 2 (L2) is the road class for access by B Doubles and is therefore the appropriate level for assessment of the alternative routes.

Performance criteria required for Level 2 roads are set out in the Guidelines and are summarised below:

Maximum grade 6% Minimum sealed road width 5.6m Minimum shoulder width 1.2m Minimum unsealed road width 7.7m

The above table applies to straight sections of road only. Where curves are introduced, additional widths are required depending on the radius. For curve radii less than 60m turning templates for the design vehicle must be used to determine the road width required.

Appendix A contains a layout plan and an enlargement plan showing the road widths required at various locations along the routes to accommodate B-double vehicles.

3.2 Amenity and environmental considerations As well as the physical and operational road conditions, the PBS Guidelines require amenity and environmental considerations to be evaluated. These apply essentially in townships and urban areas. The following factors should be considered in determining the appropriate level of PBS classification.

3.2.1 Land use Sensitive land uses include: ! Residential areas ! Commercial areas ! Industrial areas ! Schools ! Hospitals ! Aged care facilities ! Religious facilities ! Aboriginal land ! Areas with significant movements of pedestrians and cyclists and ! Recreational areas

L2 class roads may be expected to pass through areas where some sensitive land uses have developed in the past.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 7 3.2.2 Noise Noise assessment is a critical component when determining an appropriate road access class. Noise is particularly an issue at night when sleep disturbance can occur. The operating hours of vehicles associated with the mine will be finalised in conjunction with the local community but is likely to be only during daylight hours.(e.g. 6am to 6pm). No heavy vehicles will operate outside of these hours.

3.2.3 Vibration Vibrations caused by the passage of heavy vehicles can have an effect on buildings located close to the route. Vibration is closely related to noise and is generally adequately addressed if noise limit objectives are not exceeded.

3.2.4 Dangerous Goods and potential load spillage Carriage of dangerous goods is controlled under The Road Transport Reform (Dangerous Goods) Act 1995, and Regulations. All goods transported must comply with the provisions of the Act and Regulations. Materials transported to and from the mine will not be classified as Dangerous Goods as defined under the Act.

3.2.5 Dust, splash and spray The effect of dust, splash and spray from the pavement by PBS vehicles on other road users should be considered. The Guidelines recommend that for L2 class roads with a posted speed limit of less than 80 kph the road should be sealed, preferably with a sealed shoulder although grassed or unsealed shoulders are acceptable.

3.2.6 Air quality (odours and fumes) Some types of heavy vehicles (eg stock trucks) produce undesirable odours. The effect is greatest when the vehicles are stationary whilst on route, such as when held up in heavy traffic or waiting at intersections. Mine vehicles will not carry odorous materials and there is little likelihood of the trucks being held up in traffic or at intersections.

3.2.7 Vegetation and wildlife If the PBS route passes near areas of known habitat of vulnerable or endangered species of fauna, the effect of increased traffic on these should be considered. There are no known habitats for endangered fauna along the route options under consideration. Hillgrove Resources has also conducted a Flora and Fauna survey of the proposed Option 3 bypass route and confirmed this proposal has no vegetation or wildlife issues.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 8 4.0 Route assessment

4.1 Option 1 Route option 1 incorporates Mine Road, Back Callington Road, Callington Road, Princes Highway and East Terrace. The distance from the mine to the South Eastern Freeway using this route is 5.5 kilometres. Route characteristics are summarised in the table below:

Section Distance Width Surface Comments Mine Road (Mine 0.05 km 7 m Limestone Hard compact surface in good condition. gatetoBack rubble Four way cross road intersection at Back Callington Road) Callington Road and Aclare Mine Road Abutting land is cropping / grazing, no access points. Back Callington 0.45 km 5m Limestone Reasonable condition, narrow road reserve Road (Mine Road rubble with little scope for widening, steep gully on to railway northern side. crossing) Abutting land is cropping / grazing, no buildings or major access tracks. Back Callington 0.18 km 5m Limestone Poor visibility at rail crossing due to angle of Road approaches rubble rail to road. to railway crossing Rock cutting on eastern side of rail crossing also reduces sight distance. Abutting land is cropping / grazing, no buildings. One formed access track to temporary railway camp. Back Callington 2km 5m Limestone Reasonable condition, poor sight distance at Road (Railway rubble crest in road. Crossing to start Abutting land is cropping / grazing, no of bitumen) buildings or major access tracks. Back Callington 1.1 km 5m Bitumen Reasonable condition, some edge Road (start of surface breakaway evident. bitumen to Abutting land is light industrial and cropping / Callington Road grazing. intersection) T junction intersection with Callington Road has tight turning radius Callington Road 1.07 km 5.5m Bitumen Below average condition, evidence of edge (Back Callington surface failures. Road to Princes Flashing signal controls at level rail crossing. Highway Abutting land is cropping / grazing. Princes Highway 1.0 km 8m Bitumen Good condition. Good geometric design surface standard. Abutting land is cropping / grazing. East Terrace 2.1 km 8m Bitumen Good condition. Is a gazetted RAV route. surface Abutting development includes residential.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 9 4.1.1 Upgrading requirements In order to achieve a suitable design standard to accommodate B double vehicles, the following upgrading to the route would be necessary: x In order to avoid significant upgrading of the intersection of Mine Road / Back Callington Road / Aclare Mine Road, the existing access from the mine site should be diverted on to Back Callington Road, west of the intersection. Refer to Appendix B Enlargement Plan.

Photograph 1: Mine Road / Back Callington Road / Aclare Mine Road intersection

x Road widening to Back Callington Road should be undertaken between the Mine Road intersection and the railway crossing. The existing road formation width of 5 metres should be widened to 9 - 10 metres to comply with design criteria . With the addition of drainage swales and batters, additional land will be required. Upgrading of this section will result in removal of a considerable amount of native vegetation. (see photograph 2).

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 10 Photograph 2: Back Callington Road – east of Mine Road intersection

x Major reconstruction of railway crossing including realignment of road to improve approach angle, widening of road formation to 9.0 metres, lay back cutting batters to improve sight distance, and installation of flashing signals. The existing approaches to the crossing are sub standard and can only be improved by realignment of the approaches with acquisition of land from adjacent properties.

Photograph 3: Back Callington Road railway crossing

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 11 x Widening of Back Callington Road from the railway crossing to the crest west of Callington township. This section of road requires widening to a formed width of 8.4 metres. Vertical alignment is satisfactory. Land acquisition from the southern side may be required in order to avoid removal of native vegetation.

Photograph 4: Back Callington Road east of railway crossing x Lowering and widening of the crest in Back Callington Road to improve approach sight distances. The existing crest has steep approaches and sight distance is severely restricted for vehicles approaching from both directions. Upgrading will require a combination of cut and fill and excavation in rock.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 12 Photograph 5: Crest in Back Callington Road x Widening sealed section of Back Callington to 6.5 metres with 1 metre shoulders each side.

Photograph 6: Sealed section of Back Callington Road

x Widening of intersection of Back Callington Road with Callington Road to accommodate B Double swept path. This will require land acquisition from the adjoining property. Refer to View 2 of Enlargement Plan for scope of land acquisition and widening.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 13 Photograph 7: Intersection of Back Callington Road and Callington Road. x Widening of Callington Road to 6.5 metre sealed width with 1 metre shoulders. This will require upgrading of the railway crossing and possible relocation of electronic signals.

Photograph 8: Callington Road and railway crossing.

x Princes Highway and East Terrace are capable of accommodating B Double vehicles without upgrading.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 14 4.1.2 Traffic management considerations If Route option 1 were adopted the following traffic management and control measures would be required to comply with the environmental and amenity standards of the NTC Guidelines.

! The route should be bitumen sealed over its full length in order to minimise dust nuisance and hazard to other road users. ! The intersection of Back Callington Road / Aclare Mine Road should be delineated with the major leg being Back Callington Road and other legs required to Give Way. ! Upgrading of Back Callington Road rail crossing with electronic signal controls. ! Advisory signs requesting no use of compression braking at entry to Callington township ! Installation of Give Way control signs at junction of Back Callington Road and Callington Road

4.2 Option 2 Route option 2 involves travelling north along Mines Road, through part of the Kanmantoo township, east into Princes Highway and south into East Terrace. This route is a continuous bitumen road other than the first section from the proposed mine entry to Neutrog’s access. The distance from the mine to the Callington interchange using this route is 10.2 km. Route characteristics are summarised in the table below:

Section Distance Width Surface Comments Mine Road (Mine 1.4 km 7 m Limestone Hard compact surface in good condition. gate to Neutrog rubble Sight distance restricted at vertical curve just access) north of mine entry. Abutting land is cropping / grazing, one property access road. Mine Road 2.9 km 6 m bitumen Generally good condition. Some side (Neutrog entry to surface pruning required to improve sight distance. Princes Highway) Abutting development includes Neutrog processing plant, mine area, cropping and grazing and residential township. Princes Highway 1.0 km 8 m Bitumen Good condition. Good geometric design (Mine Road to surface standard. East Terrace) Abutting land is cropping / grazing. East Terrace 2.1 km 8 m Bitumen Good condition. Is a gazetted RAV route. Callington surface Abutting development includes residential.

4.2.1 Upgrading requirements In order to achieve a suitable design standard to accommodate B Double vehicles, the following upgrading to the route would be necessary:

! Entry from mine area to Mines Road requires widening to accommodate B Double swept paths. This will require extension to stormwater culverts under Mine Road. Mine Road carriageway width should be widened to 9.3 metres.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 15 Photograph 9: Entry to mine from Mines Road x Mines Road from the mine entry to commencement of bitumen road requires some widening and regrading to improve sight distance. Refer to View 3 of Enlargement Plan for scope of widening.

Photograph 10: Unsealed section of Mines Road

x Bitumen section of Mine Road from Neutrog entrance to town centre is in good condition, no upgrading required.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 16 Photograph 11: Mines Road approach to Kanmantoo township.

Photograph 12: Mines Road through residential area of Kanmantoo.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 17 x Intersection of Mines Road with Princes Highway requires widening to accommodate turning movements for B Double vehicles. Refer to View 5 of Enlargement Plan for scope of widening and land requirements.

Photograph 13: Intersection of Mines Road with Princes Highway

4.2.2 Traffic management considerations If Route option 2 were adopted, particular consideration should be given to managing the potential environmental and amenity impacts on the residential area of Kanmantoo. The following assessment and recommended actions would be proposed:

Noise Noise associated with heavy vehicles can result in disturbance to nearby residents. In order to minimise the effects of noise, it is proposed that the following actions be taken: x Road signs at the approaches to the residential area requiring drivers not to use compression braking x Restriction on heavy vehicle movements to daylight hours (6:00am – 6:00pm) x Restriction on speed of heavy vehicles through residential areas x Requirement for noise reduction equipment to be fitted to heavy vehicles and effectively maintained

Vibration Vibrations can occur when heavy vehicles pass close to residential properties. Generally, vibration issues will be largely addressed by ensuring that the noise limit objectives are satisfied.

Dust, splash and spray The effects of dust, splash and spray of rainwater from the pavement by heavy vehicles on other road users should be considered. Generally dust is only a problem if the road surface is unsealed. It is proposed that existing unsealed sections of the proposed route will be sealed. Splash and spray are more likely to be an issue where vehicle speeds are high e.g. 80 kph or more. By controlling the

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 18 speed environment to below 50 kph through the residential area, these issues should not be a problem.

Air quality Air quality can be affected by the type of goods being transported eg livestock, fertilizers etc. None of the goods that will be associated with the mine are likely to produce unpleasant odours and therefore will not affect air quality.

4.3 Option 3 This option has been considered with the objective of reducing the impact of mine traffic on the Kanmantoo township. This option involves constructing a private access road between Mine Road and Princes Highway. (see Appendix C for location). This access would be available for mine traffic only, and would create a traffic bypass around the Kanmantoo township.

This option would involve the following infrastructure requirements:

! Mine Road intersection. A cross road intersection would effectively be created where the access road meets Mine Road and then continues into the mine area. This would require advanced warning signs to be erected on Mine Road and minor earthworks undertaken to ensure that adequate sight distances are available for traffic using Mine Road and also the private access road.

! Private access road The proposed private access road would extend over a distance of approximately 2.7 kilometres and be constructed to all weather standard suitable for use by B Double vehicles if required. The alignment would be chosen to avoid impact on native vegetation and to provide a reasonable buffer distance from existing dwellings. Creek crossings would consist of low level floodways with concrete culverts provided to accommodate base flows. Highly visible signage will be positioned at each end of the private access road to discourage unauthorised entry.

! Princes Highway intersection The intersection with Princes Highway will be a T junction and will be located so that adequate sight distance is available for Princes Highway traffic and mine traffic wishing to enter Princes Highway.

The benefits of this option are that the impacts on residents of Kanmantoo are significantly reduced. Whilst there will be some additional traffic associated with the mine travelling through Kanmantoo, this will be mainly light vehicles only. All heavy vehicles will use the private access road bypass, unless conditions make this bypass road unsafe to access In such cases heavy vehicles would use Mine Road and Princes Highway subject to consultation with the community.

4.4 Monitoring and management A traffic management plan will serve as a tool for ensuring that the impacts of heavy vehicles on other road users and adjacent land owners are minimised. The traffic management plan will address how potential adverse impacts, as described in the preceding sections, can be managed and monitored.

Management of impacts on the residential community, in particular, will be achieved by requiring all heavy vehicle traffic to use the private access road unless weather conditions prevent.

Monitoring of traffic impacts will be a continual process and should involve regular communication with the local community and prompt attention to any issues raised.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 19 5.0 Traffic management For each of the options, a traffic management plan should be implemented to manage the impacts of mine traffic. The traffic management plan should form part of the Mine Operating Procedures and be developed in consultation with the local community and other stake holders. Key aspects should include: Road Safety Road safety is paramount to any traffic management policy. The following actions will be incorporated into the traffic management plan to achieve road safety objectives: ! Controlled speed environments will be company policy for heavy vehicles travelling through built up areas and mandatory for all traffic using the Hillgrove Bypass Road. ! Improving visibility where required at intersections, crests and bends that have been identified as substandard ! Education of mine staff and contractors in road safety and the necessity to comply with Mine Operating Procedures within the mine and also on access routes leading to the mine. ! Avoiding the use of school bus routes at times when buses are operating. ! Requiring vehicle maintenance standards to be kept at a high level. Checks will be carried out at random on company and contractor’s vehicles to ensure that they meet the required standards. ! The provisions of the Traffic Management Plan will be written into haulage contracts with appropriate enforcement penalties included for non-compliance.

Amenity and Environment The impacts of mine traffic on the local community amenity and the natural environment will be minimised by incorporating the following provisions into the traffic management plan: Noise and vibration ! Speed control through the application of controlled speed environment policy, particularly within and approaching built up areas ! No compression braking near residential areas will be permitted. This policy will be included in the Mine Operating Procedures ! Transportation of concentrate will be restricted to within daylight hours thereby avoiding disturbance to residents at night. ! All vehicles will be required to comply with current Australian Design Rules.

Dust, Splash, Spray ! Utilise the sealed road network where practical. ! A dust management programme incorporating local roads (subject to agreement with Council) as well as mine roads and the Hillgrove Bypass Road will be adopted ! Implementation of a controlled speed environment through residential areas will minimise dust splash and spray risk

Monitoring One of the most important aspects of the traffic management plan will be the ongoing monitoring of the mine related heavy vehicles in conjunction with the KCCCC (or its successor). Important aspects of the monitoring program will include: ! Ongoing consultation ! Prompt action on complaints ! Enforcement of restrictions on transport operators

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 20 6.0 Conclusions A detailed study of three heavy vehicle access options for the proposed re-opening of the Kanmantoo mine and consultation with the local community has identified Option 3 as the preferred heavy vehicle access route.

Option 1 The study identified Route Option 1 as the shortest distance route, but, the standard of the existing road is not suitable to be used as a Level 2 PBS vehicle route. Considerable upgrading would be required to bring this route to the required standard. This would require acquisition of adjoining land and removal of sections of native vegetation. The access from the mine will require diversion on to Back Callington Road and the intersection at Back Callington Road / Callington Road will require realignment and land acquisition to accommodate swept paths of heavy vehicles.

The route incorporates two railway level crossings, one with electronic signal controls and one without and a potentially dangerous crest. The Back Callington Road level crossing does not meet the required design standard for a level crossing and would require significant upgrading as well as installation of electronic signals. Most of the route is unsealed and should be sealed to provide a long wearing surface capable of accommodating heavy vehicles and to reduce dust generation and pavement material loss.

Option 2 Route Option 2 is 4.7 kilometres longer than Option 1, but most of the route is sealed and the design is to a sufficient standard for heavy vehicles. Upgrading of the Mines Road / Princes Highway intersection will be required to accommodate swept paths of heavy vehicles. Minor widening and sealing of Mines Road from Back Callington Road to the Neutrog access should be undertaken.

Amenity and environment issues have been identified for all routes. As Route Option 2 passes through a built up residential area in Kanmantoo township, appropriate traffic management of heavy vehicles through the township in particular will be essential. These measures should include:

! Limiting and enforcing vehicle speeds to 50 kph through the township. ! Avoiding the use of compression braking when vehicles pass through the township ! Ensuring that vehicles are equipped with appropriate noise suppression equipment and are kept in a well maintained condition ! Educating drivers to comply with traffic management obligations ! Monitoring the movement of heavy traffic along the route and responding to issues as they arise

Option 3 Option 3 incorporating a private access road extending from the mine entry in a north easterly direction to meet with Princes Highway, and thereby bypassing the Kanmantoo township, avoids the impact of heavy vehicles on the residential amenity of Kanmantoo and will therefore be more acceptable to residents. The private access road would be used by all heavy vehicles accessing the mine and is the recommended route option

The bypass road would be designed and constructed to minimise adverse environmental impacts including removal of native vegetation, erosion and watercourse obstruction, and the designs of the intersections with Mine Road and Princes Highway would incorporate appropriate road safety considerations.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 21 A Traffic Management Plan would include all measures outlined in the preceding Section and will also encompass the following measures: ! All heavy vehicles will be required to utilise the private access road when travelling to and from theminesite. ! A speed limit of 60kph to be placed on all vehicles using the private access road for reasons of road safety and minimising the generation of dust, mud and noise. ! The private access road will incorporate highly visible signage at each end to prevent use by unauthorised vehicles. ! Advanced warning signs to be placed on Mine Road and Princes Highway advising of vehicles entering.

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevE.doc Revision E 28th August 2007 Page 22 Appendix A Locality Plan, Layout Plan and Enlargement Plan

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Appendix B Traffic Generation Model

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevD.doc Revision D August 2007 Page b Kanmantoo Project - Expected Traffic Movements To and From Site Note : 1 movement = travel to and from site. Assumptions: 1)Light vehicles - There will be some car pooling (use of minibuses during construction) assumed vehicles = 0.6Xpersonnel numbers? 2)Construction period heavy traffic activity split as Q1 - 20%, Q2 - 40%, Q3 - 30% & Q4 - 10%. 3)Construction - 550 truck loads (from Lyco's) 20% by B Double, 50% by normal truck and 30% oversize loads (low loaders). (Split estimated by A Reeves) 4)Mining all fuel by B double tankers. Other loads 50% B Double, 50 % normal truck (split estimated by A Reeves). Oversize loads nominated by Snowdens. ANFO considered general freight and delivered by B Double. 5)Operations - truck movements (non concentrate transport) nominated by Lyco's - 25% B doubles and 75% normal truck (A Reeves). Token oversize loads allowed periodically.

Year 0 (Construction) Year 1 Year 2 Typical Year Ongoing Activity Comment Notes Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Construction Peak 85 persons (PFS)

Light Vehicles Assume 51 Movements per day 25 51 51 25

B Doubles 20% of loads (110) Total movements in period 22 44 33 11

Trucks 50%of loads (275) Total movements in period 55 110 82 28

Oversize Loads 30% of loads (165) Total movements in period 55 55 45 10

Mining 85 persons (PFS)

Light Vehicles Assume 51 Movements per day 25 51 51 51 51 51 51 51 51 51 51 51 51 51

Fuel Tankers (B Double) B Double (50K litres) Total movements in period 1 2 6 18 30 32 32 34 34 36 36 38 22 22 22 22

B Doubles 50% of truck loads Total movements in period 10 19 30 30 31 31 32 32 33 23 18 18 18 18

Trucks 50% of truck loads Total movements in period 10 19 30 30 31 31 32 32 33 23 18 18 18 18

Explosives Note info treated as norm Total movements in period 12 24 24 24 24 24 24 24 13 13 13 13 13 13

Oversize Loads Total movements in period 1513 4 22 151111

Operations (non mining) 64 persons includes HRL Mgt (PFS)

Light Vehicles Assume 40 Movements per day 15 20 30 40 40 40 40 40 40 40 40 40 40 40 40 40

B Doubles Conc Trans Total movements in period 473 631 631 631 631 631 631 631 631 631 631 631 631

B Doubles Other 25% of truck loads Total movements in period 26 26 26 26 26 26 26 26 26 26 26 26 26

Trucks 75% of truck loads Total movements in period 104 104 104 104 104 104 104 104 104 104 104 104 104

Oversize Loads Total movements in period 111111

Totals

Total Light Vehicles Movements per day 40 71 106 116 91 91 91 91 91 91 91 91 91 91 91 91

Total Fuel Tankers (B Double) Total movements in period 1 2 6 18 30 32 32 34 34 36 36 38 22 22 22 22

Total B Doubles Conc Trans Total movements in period 473 631 631 631 631 631 631 631 631 631 631 631 631

Total B Doubles Other Total movements in period 22 44 43 56 56 56 57 57 58 58 59 49 44 44 44 44

Total Trucks Total movements in period 55 110 92 151 134 134 135 135 136 136 137 127 122 122 122 122

Total Explosives Total movements in period 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24

Total Oversize Loads Total movements in period 555560231410321152121

Total Heavy Vehicle Movements Total movements in period 157 235 225 745 876 881 880 881 886 887 888 884 845 844 845 844

Total Heavy Vehicle Movements Per Day 84 days per Quarter Movements per day 2339101010101111111110101010 Appendix C Private Access Road

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevD.doc Revision D August 2007 Page c

Appendix D KCCCC Recommendations – Hillgrove Response

Kanmantoo Copper Mine Traffic Impact Assessment J:\2007\60023747\8. Issued Docs\8.1 Reports\Traffic Impact Assessment RevD.doc Revision D August 2007 Page d Appendix D KCCCC Recommendations – Hillgrove Response

Traffic ! 21 KCCCC Recommendations: 16 Accepted, 5 Accepted in principal with practical solutions. ! A comparison of rail and road to meet the heavy transport needs of the proposed mine development, should be further investigated. A clear explanation as to why rail is not viable should be presented to the community before accepting the road option. Amongst the aspects of the rail option that should be discussed are:

1) The issues surrounding the development of a rail siding at the mine site; 2) The potential for a conveyor loader to be built to service railcars to remove the need for double handling at the mine site; 3) The opportunity for the State Government to support an extension to the rail head at Port Adelaide; 4) An understanding of the fixed costs (e.g. fuel) and other costs / benefits (e.g. greenhouse gases) of rail and road; - All these four issues are Accepted in principal with the practical solution of re- considering the option down the track should the rail be extended from the bulk head to berth 29 where the concentrate would be shipped from. 5) Priorities in the selection of potential road routes and the management of traffic along those routes, should emphasize public safety (with special emphasis on the safety of children and families) and general amenity (e.g. noise); Accepted 6) Serious consideration should be given to developing a new, dedicated route through private property to reach the Princes Highway and avoid the residential area of Kanmantoo particularly; Accepted in principal with the practical solution of Hillgrove actively reviewing alternative access for heavy vehicles to site. 7) Initiatives to ensure that amenity of the community is not compromised should be adopted. These include identifying appropriate restrictions on the use of exhaust brakes / engine brakes and clearly identifying standards that must be met in haulage contracts. However, strong policing of regulations under the law should be emphasized in any traffic strategy; Accepted 8) A Traffic Management Plan (TMP) should be developed as a means of identifying good practice. The TMP should be included in the Mine Operations Plan to elevate its significance. However, the TMP should not be the sole mechanism to manage performance but rather used to support strong policing and enforcement of legal obligations; Accepted 9) The various noise standards for vehicle transport in the various areas (e.g. residential and rural living) should be published for the community in a simple guide with common examples of similar noise levels used as illustrations; Accepted 10) A complaints process should be established that allows timely and meaningful responses to community complaints. The complaints response should include access to a simple, do it yourself, noise monitoring regime; Accepted in principal with the practical solution of developing an acceptable model/regime via the KCCCC. 11) Appropriate consideration should be given when interpreting road standards for heavy vehicles, to the idiosyncrasies of the residential area of Kanmantoo such as the increased likelihood of parked cars on the roadside; Accepted 12) Given that circumstances like production rates may change over a 6 – 10 year period, a commitment should be made to a process to allow the community to be engaged and informed on issues like traffic, for the life of the mine; Accepted 13) Any traffic plan should be consistent with the District Council of Mt Barker Strategic Plan for the region; Accepted

Page 1 Regardless of the nature of the final traffic solution, elements in a Traffic Management Plan should: 14) Focus on safety strategies including additional controlled speed environments; Accepted 15) Develop strategies to avoid traffic movements at key times, particularly road traffic at school bus pick up or other times of key family movements; Accepted 16) Provide training for workers and contractors on traffic matters; Accepted 17) Ensure vehicle maintenance is to high safety standards; Accepted 18) Include adherence to the Traffic Management Plan as a condition of haulage contracts; Accepted 19) Monitor performance against the Traffic Management Plan; Accepted 20) Establish ongoing links to the community for the life of the mine; and Accepted 21) Develop a clear and effective complaints process. Accepted

Page 2 Appendix 11

Kanmantoo Copper Project Geochemistry (Acid Rock Drainage) Assessment Prepared by:

ENVIRONMENTAL GEOCHEMISTRY INTERNATIONAL PTY LTD

81A College Street, Balmain, NSW 2041 Australia Telephone: (61-2) 9810 8100 Facsimile: (61-2) 9810 5542 Email: [email protected] ACN 003 793 486 ABN 12 003 793 486

For:

ENESAR CONSULTING PTY LTD 2-3 Greenhill Road, Wayville SA 5034 Telephone: (08) 7221 3500 Facsimile: (08) 8172 1968

September 2007

Document No. 2042/771

Hillgrove Resources Limited

ARD Assessment of the Kanmantoo Copper Project ii Contents

List of Tables...... iii List of Figures...... iii List of Appendices...... iii Executive Summary ...... iv

1.0 INTRODUCTION...... 1 2.0 PROJECT BACKGROUND...... 1 3.0 SAMPLE SELECTION AND METHODOLOGY ...... 14 4.0 STANDARD GEOCHEMICAL CHARACTERISATION RESULTS...... 15 4.1 pH and EC...... 15 4.2 Acid Base (NAPP) Results ...... 15 4.3 Single Addition NAG Results ...... 16 5.0 SPECIALISED GEOCHEMICAL CHARACTERISATION RESULTS ...... 16 5.1 Acid Buffering Characteristic Curve (ABCC) Testing...... 16 5.2 Sequential NAG Testing...... 16 5.3 Kinetic NAG Testing ...... 17 5.4 Multi-Elements of Solids and Water Extracts...... 17 6.0 SAMPLE CLASSIFICATION...... 18 7.0 CONCLUSIONS ...... 20

Environmental Geochemistry International Pty Ltd iii

List of Tables (after text)

Table 1: Standard acid forming characteristics of waste rock samples from Kanmantoo. Table 2: Sequential NAG test results for selected waste rock samples. Table 3: Multi-element composition of selected sample solids (mg/kg except where shown). Table 4: Geochemical abundance indices (GAI) of selected sample solids. Table 5: Chemical composition of water extracts of selected samples.

List of Figures (after text)

Figure 1: Box plot showing the distribution of pH1:2and EC1:2. Box plots have 10th, 25th, 50th (median), 75th and 90th percentiles marked.

Figure 2: Plot showing pH1:2 and EC1:2 versus total S. Figure 3: Box plot showing the distribution of S and ANC for all samples from Kanmantoo. Box plots have 10th, 25th, 50th (median), 75th and 90th percentiles marked. Figure 4: Acid-base account (ABA) plot showing ANC versus total S. Figure 5: ARD classification plot showing NAGpH versus NAPP, with ARD classification domains indicated.

Figure 6: ABCC profile for sample 33405 with an ANC value close to 10 kg H2SO4/t. Carbonate standard curves are included for reference.

Figure 7: ABCC profile for samples with an ANC value close to 15 kg H2SO4/t. Carbonate standard curves are included for reference.

Figure 8: ABCC profile for samples with an ANC value close to 20 kg H2SO4/t. Carbonate standard curves are included for reference.

Figure 9: ABCC profile for samples with an ANC value close to 30 kg H2SO4/t. Carbonate standard curves are included for reference.

Figure 10: ABCC profile for sample 33453 with an ANC value close to 35 kg H2SO4/t. Carbonate standard curves are included for reference. Figure 11: Kinetic NAG graph for sample 33400. Figure 12: Kinetic NAG graph for sample 33402. Figure 13: Kinetic NAG graph for sample 33414. Figure 14: Kinetic NAG graph for sample 33425. Figure 15: Kinetic NAG graph for sample 33446. Figure 16: Kinetic NAG graph for sample 33452. Figure 17: Compares SESL Leco S with Hillgrove Resources ICP S.

List of Appendices (after text) Appendix A – Assessment of Acid Forming Characteristics

Environmental Geochemistry International Pty Ltd iv

Executive Summary Environmental Geochemistry International Pty Ltd (EGi) were commissioned by Enesar Consulting Pty Ltd to carry out acid rock drainage (ARD) assessment of the Hillgrove Resources Limited Kanmantoo Copper Project, located 44 km east of Adelaide, South Australia.

The objectives of the work were to identify the main potential ARD issues associated with development of the project, and outline mitigation strategies. Work carried out by EGi included: a site visit to review project data, examine core, and scope the ARD testing programme; and geochemical characterisation of representative drill hole samples and assessment of results. It is understood that ARD testing of the tailings and ore is being evaluated separately, and hence the EGi work component focused on waste rock.

A total of 99 samples of Kanmantoo waste rock were selected for initial ARD assessment. Samples were collected at intermittent intervals from Main and Eastern Zone holes KTRC070, KTRCD072 and KTRCD120; and Emily Star hole KTRC221. The aim of the sampling was to represent the range of geochemical waste rock types present at Kanmantoo so that test results would provide an indication of the main ARD issues likely to be associated with waste rock during development of the mine and at closure. Sampling was not sufficiently detailed for defining the overall proportion of acid and non-acid forming waste rock materials, or for determining their distributions.

Results to date indicate that potentially acid forming (PAF) and PAF low capacity (PAF- LC) materials are likely to represent at least half of the materials to be mined from the Main and Eastern Zone deposit. Limited testing of the Emily Star deposit may indicate a higher proportion of NAF waste rock materials from this deposit. Results also indicate that weathered materials from both deposits are likely to be NAF. Acid leachates will be associated with elevated metals, including Al, Co, Cu, Fe, Mn, Ni and Zn.

Results have the following implications for materials management: • ARD management of waste rock materials will be required to prevent ARD from waste rock dumps. Given the local climate, implementation of a store and release type cover system is likely to be the most effective approach to control ARD. This will involve operational segregation and selective handing and placement of NAF and PAF materials and construction of a NAF layer capable of preventing significant infiltration of water into PAF materials below. • The final pit voids may also be significant sources of ARD, depending on the distribution of sulphidic materials in the final walls and floors. • Tailings, ROM ore stock piles and any low grade ore stockpiles are likely to be acid forming, but it is understood that geochemical investigation of these materials is being carried out separately. The tailings storage is likely to require a store and release type cover system similar to the waste rock. ROM ore and low grade ore stockpiles should be designed to allow collection and monitoring of any leachate, with provision for

Environmental Geochemistry International Pty Ltd v

lime/limestone treatment of stockpile surfaces and/or leachate as required. Storage designs that minimise rainfall infiltration into the stockpile would assist management of leachate. • Routine surface and groundwater monitoring should include analysis of pH, EC, Ag, Al, As, Cd, Co, Cu, Fe, Mn, Mo, Ni, Pb, SO4 and Zn.

The following is recommended to define the geochemistry and distribution of ARD rock types and help finalise management requirements: • Prepare a sulphur distribution model based on the existing ICP S data from the geological database, and apply the 0.2% S cut off to produce a preliminary ARD distribution model. • Identify data gaps in the S model and carry out infill ICP S testing as required. • Validate the S cut off criteria with additional testing of selected samples across the various deposits. • Geochemically characterise additional Emily Star samples to ensure adequate representation of potential geochemical variation in this deposit. • Geochemically characterise materials close to the expected pit shells to assess the ARD potential of final voids. • Carry out leach column testing of waste rock materials to determine rates of reaction and likely leachate compositions of waste rock dumps and pit voids. • Carry out leach column testing of ore and low grade ore materials to determine rates of reaction and likely leachate compositions to assist finalising collection and treatment requirements. • Initiate preliminary investigations into waste rock dump and tailings storage facility cover design requirements and potential sources of cover materials.

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1.0 Introduction Environmental Geochemistry International Pty Ltd (EGi) were commissioned by Enesar Consulting Pty Ltd to carry out acid rock drainage (ARD) assessment of the Hillgrove Resources Limited Kanmantoo Copper Project, located 44 km east of Adelaide, South Australia.

The objectives of the work were to identify the main potential ARD issues associated with development of the project, and outline mitigation strategies. It is understood that ARD testing of the tailings and ore is being evaluated separately, and hence the EGi test work component focused on waste rock. Work carried out by EGi included the following: • A site visit on 17th January 2007 to review project data, examine core, and scope an ARD testing programme; • Selection of open hole samples of waste rock in conjunction with site geologists; • Geochemical characterisation of selected samples and assessment of results.

2.0 Project Background The project will involve a large open cut pit by expanding the existing Kanmantoo Pit, and new development of the Emily Star satellite pit (southwest of the existing pit). Development of the resource will require construction of out of pit dumps, a tailings storage facility, and possible waste rock backfilling of Emily Star and portions of the main open pit. An initial mine life of eight years is planned, with processing by conventional crushing, grinding and flotation to produce a copper gold concentrate.

In addition to the Kanmantoo Pit, previous mining activities produced a waste rock dump and tailings storage facility. The effects of ARD evident in these mine components provide an indication of the overall ARD potential of the Kanmantoo Project mine materials if specific materials management for control of ARD are not implemented.

The waste rock dump shows scattered occurrences of pyrite in individual rocks and boulders on dump top and slopes, together with jarosite and other sulphide oxidation products on rock surfaces (Plates 1 to 4). It is understood that there is no direct evidence of significant contamination of surface drainage from the waste rock dump, but the sporadic nature of major rainfall events may make this difficult to detect. Given the evidence at surface, it would be expected that a significant dump flushing event would result in poor quality drainage.

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Plate 1: Scattered pyritic rock on the surface of the existing Kanmantoo waste rock dump.

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Plate 3

Plate 2: Examples of jarosite and sulphate salt rock surfaces on the northern slope of the existing Kanmantoo waste rock dump, looking west.

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Plate 3: Close up of Plate 2.

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Plate 4: Example of jarosite and sulphate salt rock surfaces on the southern toe of the existing Kanmantoo waste rock dump, looking north.

The open pit has abundant occurrences of jarosite and sulphate salts on the pit walls and on the edges of the pit lake (Plate 5) as a result of pyrite oxidation. Copper salts are associated with the sulphate salts in the main mineralisation zones (Plate 6). Water quality of the pit lake recorded in 2004 was poor, with a pH of 2.8, an EC of 14 dS/m, and associated elevated metal concentrations including Fe, Cu, Mn, Co, Ni and Zn1.

1 Kanmantoo Mine – Background Groundwater Quality Investigation, 20 July 2006, Parsons Brinckerhoff Australia Pty Limited, Adelaide

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Plate 5: View of the existing Kanmantoo open pit, looking north, with abundant jarosite and sulphate salt evident around the pit lake edges.

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Plate 6: Example of jarosite, sulphate and Cu salts in a mineralised zone in the pit wall.

The tailings from Kanmantoo are understood to have a high content of pyrrhotite and pyrite due to the intimate association of these sulphides with the ore. The existing tailings storage facility drains to the east, where seepage passes through a waste rock embankment and is collected in a pond and overflow. Some capping material for revegetation purposes was placed on the tailings but it is apparent that this capping did not control ARD, as acidic seepage reports to the tailings seepage collection pond and pond overflow where the

Environmental Geochemistry International Pty Ltd ARD Assessment of the Kanmantoo Copper Project Page…8 seepage is allowed to evaporate, depositing abundant ARD associated salts (Plates 7 and 8). Water quality testing carried out in 2004 showed the tailings pond water had a pH of 2.6, an EC of 9.9 dS/m, and associated elevated metal concentrations including Fe, Cu, Mn, Co, Ni and Zn1.

The ARD associated with the existing waste dump, pit void and tailings storage emphasise the high ARD potential for mine materials from Kanmantoo, and the requirement for ARD management to prevent contamination of receiving environments and ensure long term success of rehabilitation.

Plate 7: View of the tailings seepage pond looking west, with the waste rock tailings embankment in the background, typical red coloured acid seepage from the tailings below that, and ARD associated salts accumulated around the edges due to evaporation.

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Plate 8: View of the tailings seepage pond overflow looking east. Overflow seepage has generally dried out, leaving a thick blanket of ARD associated salts.

The main ore is hosted by a garnet andalusite biotite schist (referred to as GABS) within the Cambrian Kanmantoo Group. Biotite schist occurs peripheral to the GABS unit. Within the GABS, the immediate ore host is marked by chlorite and garnet alteration and replacement of andalusite. Mineralisation occurs as veins and stockworks, and comprises two main mineral associations. Mineralisation in the main ore zone centred around the existing Kanmantoo pit is characterised by chalcopyrite and pyrrhotite and magnetite with lesser pyrite (Plate 9), and the Emily Star mineralisation to the west is characterised by chalcopyrite and pyrite (Plate 10). Mineralisation dips steeply to the east, and strikes approximately North-South. The mineralisation consists of a number of discrete lenses, with relatively sharp boundaries between ore and waste.

Based on examination of core during the site visit and discussions with geologists, sulphide occurrence outside the immediate ore zones appears to be sporadic, becoming less common with distance from ore zones (Plate 11). This indicates there are likely to be broad zones of non-sulphidic waste rock outside of the main mineralised blocks. No significant carbonate is logged in the core, and fizz testing (10% HCl) of core during the

Environmental Geochemistry International Pty Ltd ARD Assessment of the Kanmantoo Copper Project Page…10 site visit showed only occasional slight fizzing within the matrix, indicative of minor reactive carbonate in these mine materials.

Chalcopyrite

Pyrrhotite

Plate 9: Example of main zone chalcopyrite-pyrrhotite-pyrite mineralisation. Hole KTDD053, 154.80m.

Chalcopyrite

Chalcopyrite

Pyrite

Plate 10: Examples of Emily Star chalcopyrite-pyrite mineralisation. Hole KTDD037, 69.00m and 81.90m.

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Minor Sulphides

WASTE ORE

Abundant Sulphides

Plate 11: Example of transition from waste to ore with only occasional minor sulphide evident in the waste, and the ore zone marked by a sharp increase in sulphides. Sulphides zones are highlighted in yellow. Hole KTDD029, 273.5m to 286.1m.

There is a distinct weathering zone of around 15m thickness across the project area (Plate 12) in which most sulphide appears to be completely oxidised. Examination of core from hole KTDD067 confirm that sulphides can be completely oxidised to depths of 15m or more, even in only slightly weathered materials (Plate 13). The oxidised zone may be an important source of non acid forming materials for segregation and selective placement to isolate sulphidic waste.

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Strong Weathering

Approx. 15m

Weak to Moderate Weathering

Weak Weathering to Fresh

Plate 12: Weathering Profile exposed in side of open pit showing significant weathering down to approximately 15m from the original surface.

Depth 2.3m

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Increasing Depth

Strong 2.3m Weathering Iron Oxide After Sulphide

Moderate 6.9m Iron Oxide After Sulphide Weathering

Slight 9.5m Iron Oxide Weathering After Sulphide

Iron Oxide Slight 12.3m After Sulphide Weathering Iron Oxide &Jarosite

Slight 15.1m Iron Oxide Weathering After Sulphide

Fresh 21.0m Iron Oxide &Jarosite

Partly Weathered Fresh 21.5m sulphide

Plate 13: Shows that sulphide appears to be completely oxidised throughout the weathered profile in Hole KTDD067, even in materials described as only slightly weathered. First sulphide was observed at 21.5m depth.

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3.0 Sample Selection and Methodology A total of 99 samples of Kanmantoo waste rock were selected for initial ARD assessment. Samples were collected at intermittent intervals from Main and Eastern Zone holes KTRC070, KTRCD072 and KTRCD120; and Emily Star hole KTRC221. Ore zones in each hole were identified by Hillgrove Resources geologists and were not sampled. The aim of the sampling was to represent the range of geochemical waste rock types present at Kanmantoo so that test results would provide an indication of the main ARD issues likely to be associated with waste rock during development of the mine and at closure. Sampling was not sufficiently detailed for defining the overall proportion of acid and non-acid forming waste rock materials, or for determining their distributions.

All samples tested had already been pulverised for resource definition, and splits of these were sent directly to EGi. Individual samples were composited at EGi according to geological intervals.

Standard geochemical characterisation has been completed on all samples, comprising the following:

• pH1:2 and electrical conductivity (EC)1:2 on deionised water extracts; • Leco total sulphur (S); • acid neutralising capacity (ANC); and • single addition net acid generation (NAG) test.

Additional testing was carried out on selected samples to further characterise ARD geochemistry, as follows: • Acid buffering characteristic curve (ABCC) testing of selected samples to define the relative availability of the ANC measured. • Sequential NAG testing of higher S samples to ensure that all pyrite has been oxidised and to improve predictions of total acid potential. • Kinetic NAG testing of higher S samples to check pyrite reactivity. • Multi-element testing of selected sample solids and water extracts to assess elemental enrichment and solubility.

A general description of the pH/EC, total S, ANC, NAG and ABCC test methods is included in Appendix A.

Total sulphur assays were carried out by Sydney Environmental and Soil Laboratory (SESL). Multi-element analyses were carried out by Genalysis Pty Ltd (Perth). All other analyses were carried out by EGi.

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4.0 Standard Geochemical Characterisation Results Results of standard geochemical characterisation are presented in Table 1, comprising pH and EC of water extracts, total S, MPA, ANC, NAPP, ANC/MPA ratio and NAG.

4.1 pH and EC

The pH1:2 and EC1:2 results were determined by equilibrating the sample in deionised water for approximately 16 hours, at a solid to water ratio of 1:2 (w/w). This gives an indication of the inherent acidity and salinity of the waste material when initially exposed in a waste emplacement area.

Figure 1 is a box plot showing the distribution of pH1:2 and EC1:2 values for all samples. The pH1:2 values ranged from 3.4 to 8.7, with most samples (>85%) showing no inherent acidity having a pH greater than 6. Only one sample (sample No. 33446) had an acidic pH of less than 4.5. EC1:2 values ranged from 0.08 to 2.76 dS/m with most samples (>85%) having a non saline EC of less than 0.4 dS/m. Approximately 3% of the samples tested had a saline EC of greater than 1.6 dS/m.

Figure 2 is a plot of pH and EC versus total S. The figure shows that most of the lower pH and higher EC samples also have high S (>1%S), indicating this is the result of pyrite oxidation occurring between sample collection and sample testing, which typically occurs in reactive pyritic/pyrrhotitic materials that are devoid of effective ANC.

4.2 Acid Base (NAPP) Results Figure 3 is a box plot showing the distribution of total S and acid neutralising capacity (ANC) values for all samples. Total S ranged from 0.01%S to 2.33%S, of which approximately 15% of samples had moderate to high S values greater than 1%S. The median S value was 0.4%S. ANC values were low to moderate, ranging up to 48 kg H2SO4/t and with a median ANC of 19 kg H2SO4/t.

The net acid producing potential (NAPP) value is an acid-base account calculation using measured total S and ANC values. It represents the balance between the maximum potential acidity (MPA) and ANC. A negative NAPP value indicates that the sample may have sufficient ANC to prevent acid generation. Conversely, a positive NAPP value indicates that the material may be acid generating.

Figure 4 is an acid-base account plot of ANC verses total S. The NAPP zero line is shown which defines the NAPP positive and NAPP negative domains, and lines for ANC/MPA ratio values of 1.5 and 2 are also plotted. Note that the NAPP = 0 line is equivalent to an ANC/MPA ratio of l. The ANC/MPA ratio is used as an indication of the relative factor of safety within the NAPP negative domain. Usually a ratio of 2 or more signifies a high probability that the material will remain circum-neutral in pH and thereby should not be problematic with respect to ARD. Results show that approximately 60% of samples are NAPP negative, and most of these (65%) have ANC/MPA ratios of 2 or more.

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4.3 Single Addition NAG Results NAG test results are used in conjunction with NAPP values to classify samples according to acid forming potential. A NAGpH <4.5 indicates the sample is acid producing. Figure 5 is an ARD classification plot showing NAGpH versus NAPP value. Potentially acid forming (PAF), non-acid forming (NAF) and uncertain (UC) classification domains are indicated. A sample is classified PAF when it has a positive NAPP and NAGpH < 4.5, and NAF when it has a negative NAPP and NAGpH  4.5. Samples are classified uncertain when there is an apparent conflict between the NAPP and NAG results, i.e. when the NAPP is positive and NAGpH  4.5, or when the NAPP is negative and NAGpH < 4.5. The plot shows that 40% of samples plot in the NAF domain, 40% plot in the PAF domain, and 20% (18 samples) plot in the bottom left hand uncertain domain.

The 18 uncertain samples have negative NAPP values but NAGpH values less than 4.5. Results suggest that the ANC measured is partially ineffective, resulting in an underestimation of acid potential in the NAPP value. This was confirmed with ABCC testing (see Section 5.1). The NAG test results are expected to be a more reliable guide to acid potential for these samples.

5.0 Specialised Geochemical Characterisation Results 5.1 Acid Buffering Characteristic Curve (ABCC) Testing An acid buffering characteristic curve (ABCC) is produced by slow titration of a sample with acid, and provides an indication of the relative reactivity of the ANC measured. The acid buffering of a sample to pH 4 can be used as an estimate of the proportion of readily available ANC. ABCC tests were carried out on 11 selected samples to evaluate the availability of the ANC measured.

Results are presented in Figures 6 to 10, with calcite, dolomite, ferroan dolomite and siderite standard curves as reference. Calcite and dolomite readily dissolve in acid and exhibit strongly buffered pH curves in the ABCC test, rapidly dropping once the ANC value is reached. The siderite standard provides very poor acid buffering, exhibiting a very steep pH curve in the ABCC test. Ferroan dolomite is between siderite and dolomite in acid buffering availability.

All sample profiles plot between the ferroan dolomite and siderite standard curve, indicating poor reactivity and only partial (15% to 60%) ANC effectiveness. Total ANC values may therefore overestimate the effective buffering available, resulting in underestimation of acid potential in the NAPP value. Substituting the effective ANC indicated by the ABCC testing in the NAPP calculation for uncertain samples (discussed in Section 4.3) results in positive NAPP values consistent with NAGpH values.

5.2 Sequential NAG Testing When testing samples with high sulphide contents it is common for oxidation to be incomplete in the single addition NAG test. Sequential NAG testing overcomes this

Environmental Geochemistry International Pty Ltd ARD Assessment of the Kanmantoo Copper Project Page…17 limitation to an extent through successive additions of peroxide to the same sample. Sequential NAG testing to 5 stages was carried out on sample 33446, which had the highest total S of 2.3%S. Results are presented in Table 2.

Results show that most acid is released in the first stage of the test, with only minor acidity measured after stage 2. The total sequential NAG acidity to pH 7 was approximately 80% of the NAPP value, suggesting that most of the S in this sample is present as reactive sulphide. Results also indicate that the single addition NAG is a reasonable guide to acid potential in these samples.

5.3 Kinetic NAG Testing Kinetic NAG tests provide an indication of the kinetics of sulphide oxidation and acid generation for a sample. Kinetic NAG testing was carried out on six samples with S values greater than 0.8% S and varying ANC. The kinetic NAG pH and temperature profiles are presented in Figures 11 to 16.

All samples have distinct temperature peaks, indicating that most of the total S in the samples is present as pyrite/pyrrhotite. However, the lag time before acid production (pH <4) in the test varies.

Sample 33400 has moderate S of 0.85%S and low to moderate ANC of 13 kg H2SO4/t, and shows slow rates of acid production, dropping below pH 4 after 100 minutes. The results indicate that materials represented by this sample are likely to have a lag 1-2 years before the onset of acid conditions.

Sample 33446 has high S of 2.3%S and low ANC of 8 kg H2SO4/t, and shows rapid rates of acid production, reaching below pH 4 in the first minute of the test. The results indicate that pyritic materials with low ANC are likely to produce acid within weeks after exposure.

The remaining samples have moderate to high S of 0.81%S to 1.75%S and moderate ANC values of 19 to 29 kg H2SO4/t, and show a delay of close to 30 minutes before reaching pH 4. The results suggest materials represented by these samples will have a lag of 2 to 4 months before acid conditions develop in the field.

Overall, results indicate that higher sulphur PAF materials with moderate ANC may have lags of 2-4 months after exposure to atmospheric oxidation conditions, whereas those with ANC values of less than 10 are likely to react within weeks.

5.4 Multi-Elements of Solids and Water Extracts A total of 16 waste rock samples were selected for multi-element analysis of solids. Samples were selected to cover a range of rock types and S contents from the Main and

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Eastern Zone and Emily Star deposits. Results of multi-element scans were compared to the median soil abundance (from Bowen, 19792) to highlight enriched elements.

The extent of enrichment is reported as the Geochemical Abundance Index (GAI), which relates the actual concentration with an average abundance on a log 2 scale. The GAI is expressed in integer increments where a GAI of 0 indicates the element is present at a concentration similar to, or less than, average abundance; and a GAI of 6 indicates approximately a 100-fold enrichment above average abundance. As a general rule, a GAI of 3 or greater signifies enrichment that warrants further examination.

Results of multi-element analysis are presented in Table 3 and the corresponding GAI values are presented in Table 4. Results show significant enrichment in Co and Cu, mainly associated with high S samples (>0.5%S). The Emily Star samples have generally low S, but still show enrichment of Cu in 3 samples. There is slight enrichment of Be in three of the Emily Star samples, and Ag in three of the Main and Eastern Zone samples, but values are within normal ranges for soils. Individual samples are also slightly enriched in As and Se.

The same waste rock sample solids were subjected to water extraction at a solids:liquor ratio of 1:2, and results are provided in Table 5. Elevated Al and Fe was measured in most samples, but concentrations of these elements are strongly associated with Si, and the elevated concentrations are most likely due to the presence of fine particulates in the solution after filtering. The water extract of high S sample 33446 has a low pH of 3.6, and shows elevated concentrations of Co, Cu, Mn, Ni and Zn.

Results indicate waste rock is likely to be enriched in Co and Cu, and that acid leachate will be associated with elevated metals, including Al, Co, Cu, Fe, Mn, Ni and Zn. The solubility of these elements will largely be determined by pH and therefore control of acid generation will effectively control metal leaching. Leach column testing would be required to evaluate the likely seepage quality and release rates of environmentally important elements associated with oxidation of waste rock materials.

6.0 Sample Classification ARD classification of samples shown in Table 1 was carried out on the following basis:

Non Acid Forming (NAF)

• NAPP  0 kg H2SO4/t and NAGpH  4.5; or • Total S  0.05% (due to the very low risk of acid formation from these samples).

2 Bowen, H.J.M. (1979) Environmental Chemistry of the Elements. Academic Press, New York, p 36-37.

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Potentially Acid Forming (PAF)

• NAPP > 0 kg H2SO4/t and NAGpH < 4.5.

Potentially Acid Forming - Lower Capacity (PAF-LC)

• PAF samples with NAG acidities to pH 4.5  5 kg H2SO4/t.

Uncertain expected to be PAF (UC(PAF))

• NAPP  0 kg H2SO4/t and NAGpH < 4.5 (ABCC results indicate NAPP tends to underestimate acid potential due to poorly effective ANC).

Uncertain expected to be PAF-LC (UC(PAF-LC))

• UC(PAF) samples with NAG acidities to pH 4.5  5 kg H2SO4/t.

Based on the above, 40% of samples in Table 1 were classified NAF, and 60% of samples were classified PAF/PAF-LC or UC(PAF/PAF-LC).

Of the holes tested from the Main and Eastern Zone, only hole KTRCD120 had a significant portion of NAF waste rock. This hole was collared on the natural ground surface and on the edge of the ore zone, whereas the other two holes (KTRC070 and KTRCD072) were collared on the floor of the main pit. The results indicate that waste rock between ore lenses in the Main and Eastern Zone deposit may be mainly PAF/PAF-LC, and that NAF rock may be restricted to the pit edges and within weathered materials. It was noted during examination of core that most sulphide appeared to be completely oxidised down to the base of weathering, although the overall weathering appeared to be relatively weak. Based on results to date it is likely that PAF/PAF-LC materials will represent at least half of the materials to be mined.

Only one hole was sampled at Emily Star, in which two samples were classified PAF/PAF-LC. These results are inconclusive since only a portion of the deposit was represented.

Spatial modelling of a more extensive database would be required to determine the distribution and proportion of NAF and PAF/PAF-LC materials in the Main and Eastern Zone and Emily Star deposits.

Results to date indicate that routine ARD screening could be carried out using either NAGpH or total S values, with cut offs set to ensure no PAF/PAF-LC or UC(PAF/PAF- LC) sample is misclassified NAF. The following criteria are recommended:

NAG Criteria NAF: NAGpH  4.5 PAF: NAGpH < 4.5

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Total S Criteria NAF: Total S  0.2% PAF: Total S > 0.2%

Application of the NAG criteria to samples in Table 1 ensures all are classified NAF or PAF consistent with existing classification (i.e. 40% NAF and 60% PAF). The total S criteria results in 35% of samples being classified NAF, slightly less than the 40% using NAGpH criteria.

Although the total S criteria is likely to slightly overestimate the proportion of PAF material, ICP S has been routinely determined on a wider sample set as part of Hillgrove Resources analytical testing for resource definition, and hence could be used to obtain an estimate of the distribution of NAF and PAF waste rock types within the proposed pit shell. Figure 17 shows a strong 1:1 relationship between the Leco S results carried out by SESL for EGi and the corresponding ICP S results (available for 60 of the 99 samples tested). Hence, the 0.2%S cut off based on Leco S results is also valid for the ICP S results in the geological database.

It is understood that although all core is sampled and analysed, ICP S is only routinely carried out on samples proximal to ore, which are collected at 1m intervals. Samples outside of the ore zones are generally collected at 4m intervals and only assayed for Ag, Au and Cu. These gaps in S coverage, which occur particularly in the upper part of holes, will affect the definition of NAF and PAF waste rock types. Infill testing of the 4m interval samples is likely to be required to define a reliable ARD distribution model.

7.0 Conclusions Results to date indicate that PAF/PAF-LC materials are likely to represent at least half of the materials to be mined from the Main and Eastern Zone deposit. Limited testing of the Emily Star deposit may indicate a higher proportion of NAF waste rock materials from this deposit. Results also indicate that weathered materials from both deposits are likely to be NAF. Acid leachates will be associated with elevated metals, including Al, Co, Cu, Fe, Mn, Ni and Zn.

Results have the following implications for materials management: • ARD management of waste rock materials will be required to prevent ARD from waste rock dumps. Given the local climate, implementation of a store and release type cover system is likely to be the most effective approach to control ARD. This will involve operational segregation and selective handing and placement of NAF and PAF materials and construction of a NAF layer capable of preventing significant infiltration of water into PAF materials below. • The final pit voids may also be significant sources of ARD, depending on the distribution of sulphidic materials in the final walls and floors.

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• Tailings, ROM ore stock piles and any low grade ore stockpiles are likely to be acid forming, but it is understood that geochemical investigation of these materials is being carried out separately. The tailings storage is likely to require a store and release type cover system similar to the waste rock. ROM ore and low grade ore stockpiles should be designed to allow collection and monitoring of any leachate, with provision for lime/limestone treatment of stockpile surfaces and/or leachate as required. Storage designs that minimise rainfall infiltration into the stockpile would assist management of leachate. • Routine surface and groundwater monitoring should include analysis of pH, EC, Ag, Al, As, Cd, Co, Cu, Fe, Mn, Mo, Ni, Pb, SO4 and Zn.

The following is recommended to define the geochemistry and distribution of ARD rock types and help finalise management requirements: • Prepare a sulphur distribution model based on the existing ICP S data from the geological database, and apply the 0.2% S cut off to produce a preliminary ARD distribution model. • Identify data gaps in the S model and carry out infill ICP S testing as required. • Validate the S cut off criteria with additional testing of selected samples across the various deposits. • Geochemically characterise additional Emily Star samples to ensure adequate representation of potential geochemical variation in this deposit. • Geochemically characterise materials close to the expected pit shells to assess the ARD potential of final voids. • Carry out leach column testing of waste rock materials to determine rates of reaction and likely leachate compositions of waste rock dumps and pit voids. • Carry out leach column testing of ore and low grade ore materials to determine rates of reaction and likely leachate compositions to assist finalising collection and treatment requirements. • Initiate preliminary investigations into waste rock dump and tailings storage facility cover design requirements and potential sources of cover materials.

Environmental Geochemistry International Pty Ltd Table 1: Standard acid forming characteristics of waste rock samples from Kanmantoo.

Depth (m) EGi ACID-BASE ANALYSIS NAG TEST Lithology Pyrite Pyrrhotite Chalcopyrite ARD Hole Name Location Lithology Primary Weathering Cu (%) Au (g/t)Sample pH1:2 EC1:2 Total From To Interval Secondary Abundance Abundance Abundance MPA ANC NAPP ANC/MPA NAGpH NAG NAG Classification No %S (pH4.5) (pH7.0)

KTRC070 Main and Eastern Zone 1.00 4.00 3.00 GABS Fresh 0.029 0.006 33384 7.6 0.08 0.62 19 7 12 0.37 3.4 3 10 PAF-LC KTRC070 Main and Eastern Zone 8.00 12.00 4.00 GABS QV Fresh 2 0.011 0.005 33385 8.1 0.12 0.50 15 9 6 0.59 3.3 4 11 PAF-LC KTRC070 Main and Eastern Zone 20.00 24.00 4.00 GABSS Fresh 1 0.010 0.001 33386 7.5 0.11 0.43 13 10 3 0.76 3.5 4 10 PAF-LC KTRC070 Main and Eastern Zone 28.00 30.00 2.00 GABSS Fresh 1 0.009 0.015 33387 7.7 0.15 0.24 7 20 -13 2.78 5.6 0 1 NAF KTRC070 Main and Eastern Zone 30.00 31.00 1.00 QV GABSS Fresh 1 0.011 0.010 33388 7.6 0.13 0.25 8 12 -4 1.57 4.7 0 3 NAF KTRC070 Main and Eastern Zone 34.00 38.00 4.00 BGCS GABSS Fresh 2 1 0.167 0.053 33389 8.2 0.13 0.89 27 11 16 0.40 3.5 6 19 PAF KTRC070 Main and Eastern Zone 38.00 39.00 1.00 BGCS GABSS Fresh 2 0.073 0.020 33390 7.9 0.12 0.70 21 11 10 0.51 3.8 3 13 PAF-LC KTRC070 Main and Eastern Zone 41.00 44.00 3.00 GABSS Fresh 0.163 0.073 33391 8.3 0.13 0.36 11 11 0 1.00 5.6 0 5 NAF KTRC070 Main and Eastern Zone 44.00 45.00 1.00 GABSS BGCS Fresh 2 1 0.341 0.170 33392 7.6 0.15 0.70 21 10 11 0.47 3.4 3 12 PAF-LC KTRC070 Main and Eastern Zone 45.00 49.00 4.00 GABSS BGCS Fresh 2 1 0.114 0.035 33393 6.8 0.14 0.86 26 12 14 0.46 3.3 9 17 PAF KTRC070 Main and Eastern Zone 51.00 52.00 1.00 GABSS Fresh 2 0.047 0.010 33394 6.7 0.13 0.53 16 15 1 0.92 3.8 3 10 PAF-LC KTRC070 Main and Eastern Zone 56.00 57.00 1.00 GABS Fresh 2 1 0.100 0.070 33395 5.2 1.07 1.49 46 10 36 0.22 2.7 20 31 PAF KTRC070 Main and Eastern Zone 57.00 60.00 3.00 GABS Fresh 2 0.067 0.063 33396 6.5 0.09 0.58 18 14 4 0.79 3.4 6 13 PAF KTRC070 Main and Eastern Zone 64.00 68.00 4.00 GABSS Fresh 0.006 0.002 33397 7.4 0.11 0.11 3 12 -9 3.57 5.6 0 3 NAF KTRC070 Main and Eastern Zone 72.00 76.00 4.00 GABSS QV Fresh 1 1 0.025 0.004 33398 8.1 0.12 0.80 24 22 2 0.90 3.1 12 20 PAF KTRC070 Main and Eastern Zone 76.00 80.00 4.00 GABSS Fresh 1 1 0.048 0.008 33399 7.6 0.09 0.89 27 17 10 0.62 3.0 13 22 PAF KTRC070 Main and Eastern Zone 83.00 87.00 4.00 BGCS GABSS Fresh 2 1 0.212 0.015 33400 8.2 0.12 0.85 26 13 13 0.50 3.2 8 17 PAF KTRC070 Main and Eastern Zone 87.00 88.00 1.00 BGCS GABSS Fresh 2 1 0.191 0.000 33401 7.8 0.12 0.61 19 12 7 0.64 3.5 5 13 PAF-LC KTRC070 Main and Eastern Zone 88.00 103.00 15.00 ORE(GABSS/BGCS) KTRC070 Main and Eastern Zone 103.00 104.00 1.00 GABSS BGCS Fresh 2 0.168 0.000 33402 7.7 0.12 0.81 25 29 -4 1.17 3.2 9 19 UC(PAF) KTRC070 Main and Eastern Zone 104.00 108.00 4.00 GABSS BGCS Fresh 1 1 0.065 0.010 33403 8.4 0.09 0.46 14 11 3 0.78 3.7 4 9 PAF-LC KTRC070 Main and Eastern Zone 116.00 120.00 4.00 GABSS QV Fresh 0.017 0.003 33404 7.6 0.13 0.42 13 11 2 0.86 3.8 4 9 PAF-LC KTRC070 Main and Eastern Zone 120.00 124.00 4.00 GABSS Fresh 0.010 0.004 33405 8.3 0.11 0.23 7 12 -5 1.71 4.1 1 5 UC(PAF-LC) KTRC070 Main and Eastern Zone 132.00 136.00 4.00 GABSS Fresh 1 0.002 0.005 33406 7.5 0.11 0.36 11 12 -1 1.09 3.8 3 9 UC(PAF-LC) KTRCD072 Main and Eastern Zone 0.00 4.00 4.00 GABSS Slight 0.021 0.004 33407 6.7 0.15 0.40 12 15 -3 1.23 3.9 2 8 UC(PAF-LC) KTRCD072 Main and Eastern Zone 8.00 12.00 4.00 GABS Fresh 1 0.014 0.008 33408 7.8 0.13 0.82 25 14 11 0.56 2.9 13 22 PAF KTRCD072 Main and Eastern Zone 16.00 20.00 4.00 GABSS Fresh 1 0.015 0.007 33409 6.7 0.09 0.59 18 13 5 0.72 3.2 8 15 PAF KTRCD072 Main and Eastern Zone 24.00 28.00 4.00 GABS Fresh 0.018 0.023 33410 5.2 1.46 1.15 35 12 23 0.34 2.8 19 28 PAF KTRCD072 Main and Eastern Zone 36.00 40.00 4.00 GABS Fresh 0.005 0.002 33411 7.7 0.12 0.30 9 10 -1 1.09 3.9 2 7 UC(PAF-LC) KTRCD072 Main and Eastern Zone 40.00 41.00 1.00 GABS Fresh 0.003 0.000 33412 8.3 0.14 0.39 12 14 -2 1.17 3.8 4 10 UC(PAF-LC) KTRCD072 Main and Eastern Zone 41.00 44.00 3.00 GABS Fresh 0.006 0.000 33413 7.8 0.15 0.72 22 14 8 0.64 3.2 10 18 PAF KTRCD072 Main and Eastern Zone 44.00 48.00 4.00 GABS Fresh 1 1 0.116 0.038 33414 5.2 1.07 1.75 54 29 25 0.54 2.8 27 48 PAF KTRCD072 Main and Eastern Zone 48.00 49.00 1.00 QV BGCS Fresh 0.165 0.020 33415 5.4 1.02 1.80 55 27 28 0.49 2.8 19 41 PAF KTRCD072 Main and Eastern Zone 49.00 83.00 34.00 ORE(BGCS/GABS/GABSS) KTRCD072 Main and Eastern Zone 83.00 84.00 1.00 GABSS Fresh 2 0.174 0.020 33416 5.5 1.08 0.71 22 25 -3 1.15 3.6 4 14 UC(PAF-LC) KTRCD072 Main and Eastern Zone 84.00 88.00 4.00 GABSS Fresh 0.088 0.010 33417 7.6 0.11 0.88 27 19 8 0.71 3.1 10 21 PAF KTRCD072 Main and Eastern Zone 88.00 92.00 4.00 GABSS Fresh 1 0.017 0.003 33418 8.1 0.12 0.42 13 18 -5 1.40 3.5 3 9 UC(PAF-LC) KTRCD072 Main and Eastern Zone 96.00 100.00 4.00 GABSS Fresh 1 0.006 0.001 33419 7.9 0.13 0.61 19 17 2 0.91 3.3 7 15 PAF KTRCD072 Main and Eastern Zone 104.00 108.00 4.00 BGCS Fresh 1 1 0.046 0.005 33420 7.7 0.13 0.88 27 17 10 0.63 3.1 10 21 PAF KTRCD072 Main and Eastern Zone 116.00 119.00 3.00 GABSS Fresh 1 0.047 0.000 33421 5.6 1.01 1.30 40 16 24 0.40 2.8 16 30 PAF KTRCD072 Main and Eastern Zone 119.00 120.00 1.00 GABS Fresh 0.067 0.000 33422 5.5 1.04 1.12 34 16 18 0.47 2.9 13 26 PAF KTRCD072 Main and Eastern Zone 120.00 129.00 9.00 ORE(GABSS/BGCS) KTRCD072 Main and Eastern Zone 129.00 130.00 1.00 GABSS QV Fresh 1 0.179 0.050 33423 6.6 0.18 0.82 25 14 11 0.56 3.1 6 15 PAF KTRCD072 Main and Eastern Zone 134.00 135.00 1.00 GABSS Fresh 0.050 0.020 33425 4.7 1.76 1.07 33 19 14 0.58 3.1 14 27 PAF KTRCD072 Main and Eastern Zone 135.00 136.00 1.00 GABSS Fresh 0.017 0.030 33426 7.3 0.13 0.38 12 21 -9 1.81 3.5 4 8 UC(PAF-LC) KTRCD120 Main and Eastern Zone 0.00 4.00 4.00 GABS High-Mod 0.046 0.008 33427 8.1 0.14 0.31 9 26 -17 2.74 8.2 0 0 NAF KTRCD120 Main and Eastern Zone 8.00 9.00 1.00 BS SHR Mod 0.245 0.000 33428 7.8 0.15 0.02 1 48 -47 78.43 8.3 0 0 NAF KTRCD120 Main and Eastern Zone 9.00 12.00 3.00 BS Mod 0.186 0.000 33429 7.9 0.11 0.04 1 17 -16 13.89 7.8 0 0 NAF KTRCD120 Main and Eastern Zone 12.00 16.00 4.00 BS/GABS QV Mod 0.036 0.004 33430 8.4 0.11 0.01 0 20 -20 65.36 7.1 0 0 NAF KTRCD120 Main and Eastern Zone 16.00 20.00 4.00 GABS SHR Limonite 0.014 0.002 33431 7.5 0.12 0.01 0 20 -20 65.36 6.9 0 0 NAF KTRCD120 Main and Eastern Zone 24.00 28.00 4.00 GABS Limonite 0.072 0.002 33432 8.3 0.13 0.15 5 18 -13 3.92 4.8 0 2 NAF KTRCD120 Main and Eastern Zone 32.00 36.00 4.00 GABS Fresh 0.042 0.002 33433 8.2 0.13 0.15 5 19 -14 4.14 5.1 0 1 NAF KTRCD120 Main and Eastern Zone 40.00 41.00 1.00 GABSS Fresh 0.091 0.010 33434 8.1 0.14 0.37 11 16 -5 1.41 4.5 0 3 NAF KTRCD120 Main and Eastern Zone 41.00 44.00 3.00 GABSS Fresh 0.097 0.010 33435 8.4 0.15 0.32 10 17 -7 1.74 4.5 0 3 NAF KTRCD120 Main and Eastern Zone 48.00 52.00 4.00 GABS Fresh 0.006 0.003 33436 7.7 0.11 0.16 5 20 -15 4.08 4.9 0 2 NAF KTRCD120 Main and Eastern Zone 52.00 53.00 1.00 GABS Fresh 0.006 0.000 33437 8.3 0.13 0.07 2 21 -19 9.80 6.4 0 3 NAF KTRCD120 Main and Eastern Zone 54.00 55.00 1.00 GABS Fresh 2 0.087 0.020 33438 7.9 0.15 0.92 28 23 5 0.82 3.3 11 20 PAF KTRCD120 Main and Eastern Zone 55.00 56.00 1.00 QV GABS Fresh 0.735 0.060 33439 5.5 1.09 1.02 31 15 16 0.48 3.6 7 22 PAF KTRCD120 Main and Eastern Zone 56.00 59.00 3.00 GABS QV Fresh 1 0.291 0.010 33440 7.8 0.13 0.71 22 15 7 0.69 3.6 5 16 PAF-LC KTRCD120 Main and Eastern Zone 60.00 64.00 4.00 GABSS Fresh 0.002 0.000 33441 7.5 0.18 0.08 2 21 -19 8.58 6.3 0 4 NAF

Page 1 of 2 Table 1: Standard acid forming characteristics of waste rock samples from Kanmantoo.

Depth (m) EGi ACID-BASE ANALYSIS NAG TEST Lithology Pyrite Pyrrhotite Chalcopyrite ARD Hole Name Location Lithology Primary Weathering Cu (%) Au (g/t)Sample pH1:2 EC1:2 Total From To Interval Secondary Abundance Abundance Abundance MPA ANC NAPP ANC/MPA NAGpH NAG NAG Classification No %S (pH4.5) (pH7.0)

KTRCD120 Main and Eastern Zone 72.00 76.00 4.00 GABSS QV Fresh 1 0.005 0.006 33442 8.1 0.11 0.57 17 19 -2 1.09 3.4 7 14 UC(PAF) KTRCD120 Main and Eastern Zone 80.00 84.00 4.00 GABS Fresh 0.003 0.004 33443 7.7 0.13 0.44 13 22 -9 1.63 3.7 4 9 UC(PAF-LC) KTRCD120 Main and Eastern Zone 88.00 92.00 4.00 GABSS/BGCS Fresh 1 0.001 0.008 33444 8.3 0.09 0.77 24 13 11 0.55 2.9 13 20 PAF KTRCD120 Main and Eastern Zone 96.00 100.00 4.00 GABS Fresh 0.003 0.008 33445 8.2 0.15 0.62 19 15 4 0.79 3.2 8 15 PAF KTRCD120 Main and Eastern Zone 104.00 105.00 1.00 GABS Fresh 0.474 0.060 33446 3.4 2.76 2.33 71 8 63 0.11 2.8 20 31 PAF KTRCD120 Main and Eastern Zone 106.00 109.00 3.00 GABSS Fresh 2 0.018 0.000 33447 6.7 0.13 0.35 11 16 -5 1.49 4.1 2 8 UC(PAF-LC) KTRCD120 Main and Eastern Zone 114.00 115.00 1.00 GABSS Fresh 2 0.005 0.000 33448 6.6 0.14 0.69 21 15 6 0.71 3.3 9 17 PAF KTRCD120 Main and Eastern Zone 118.00 121.00 3.00 BGCS Fresh 2 0.375 0.023 33449 4.7 1.21 1.19 36 13 23 0.36 3.1 10 25 PAF KTRCD120 Main and Eastern Zone 124.00 125.00 1.00 BGCS GABSS Fresh 2 0.047 0.000 33450 7.4 0.13 0.48 15 17 -2 1.16 4.1 1 8 UC(PAF-LC) KTRCD120 Main and Eastern Zone 125.00 129.00 4.00 BGCS GABSS Fresh 2 0.046 0.000 33451 6.5 0.16 0.68 21 23 -2 1.11 3.9 3 12 UC(PAF-LC) KTRCD120 Main and Eastern Zone 132.00 136.00 4.00 BGCS GABSS Fresh 2 0.099 0.030 33452 4.9 1.36 1.26 39 20 19 0.52 2.9 15 27 PAF KTRCD120 Main and Eastern Zone 136.00 137.00 1.00 BGCS GABSS Fresh 2 0.056 0.000 33453 6.6 0.17 0.59 18 37 -19 2.05 3.9 3 11 UC(PAF-LC) KTRCD120 Main and Eastern Zone 137.00 164.00 27.00 ORE(BGCS/GABSS) KTRCD120 Main and Eastern Zone 164.00 165.00 1.00 BGCS Fresh 2 0.260 0.050 33454 4.8 1.51 1.45 44 22 22 0.50 3.5 7 23 PAF KTRCD120 Main and Eastern Zone 166.00 169.00 3.00 GABSS Fresh 1 0.089 0.023 33455 7.8 0.18 0.54 17 22 -5 1.33 3.9 2 9 UC(PAF-LC) KTRCD120 Main and Eastern Zone 170.00 171.00 1.00 GABSS Fresh 1 0.006 0.000 33456 8.3 0.18 0.06 2 23 -21 12.53 6.9 0 0 NAF KTRCD120 Main and Eastern Zone 176.00 180.00 4.00 GABSS Fresh 1 0.003 0.003 33457 7.7 0.09 0.05 2 31 -29 20.26 6.3 0 5 NAF KTRC221 Emily Star 0.00 4.00 4.00 GABS Slight 0.014 0.008 33458 8.1 0.11 0.01 0 22 -22 71.90 7.2 0 0 NAF KTRC221 Emily Star 8.00 12.00 4.00 GABS Mod-Slight 0.085 0.005 33459 7.8 0.11 0.02 1 22 -21 35.9 7.3 0 0 NAF KTRC221 Emily Star 16.00 20.00 4.00 GABS Slight 0.013 0.004 33460 7.9 0.08 0.01 0 24 -24 78.4 6.9 0 0 NAF KTRC221 Emily Star 24.00 28.00 4.00 GABS/BS GABS Slight 0.019 0.002 33461 7.7 0.09 0.03 1 24 -23 26.1 7.1 0 0 NAF KTRC221 Emily Star 32.00 36.00 4.00 BS Slight 0.013 0.009 33462 7.7 0.10 0.03 1 22 -21 24.0 6.9 0 0 NAF KTRC221 Emily Star 40.00 44.00 4.00 BS Slight 0.007 0.000 33463 7.8 0.12 0.48 15 22 -7 1.5 3.7 4 9 UC(PAF-LC) KTRC221 Emily Star 48.00 52.00 4.00 BS Slight-Fresh 0.008 0.002 33464 8.2 0.12 0.03 1 22 -21 24.0 6.6 0 4 NAF KTRC221 Emily Star 52.00 56.00 4.00 BS Fresh 0.002 0.001 33465 7.9 0.13 0.02 1 24 -23 39.2 6.9 0 0 NAF KTRC221 Emily Star 60.00 64.00 4.00 GABS BS Fresh 0.005 0.002 33466 7.8 0.08 0.01 0 23 -23 75.2 6.9 0 0 NAF KTRC221 Emily Star 64.00 68.00 4.00 GABS Fresh 0.004 0.003 33467 8.3 0.18 0.01 0 26 -26 85.0 6.9 0 0 NAF KTRC221 Emily Star 72.00 76.00 4.00 GABS/BS Fresh 0.008 0.002 33468 7.7 0.18 0.01 0 38 -38 124.2 6.9 0 0 NAF KTRC221 Emily Star 80.00 81.00 1.00 GABSS Fresh 0.017 0.000 33469 6.7 0.19 0.03 1 21 -20 22.9 7.1 0 0 NAF KTRC221 Emily Star 81.00 85.00 4.00 GABSS Fresh 1 0.076 0.020 33470 6.6 0.09 0.10 3 21 -18 6.9 7.2 0 0 NAF KTRC221 Emily Star 85.00 86.00 1.00 GABSS Fresh 1 0.067 0.010 33471 6.5 0.13 0.07 2 21 -19 9.8 7.3 0 0 NAF KTRC221 Emily Star 87.00 88.00 1.00 GABS Fresh 2 1.204 0.220 33472 5.2 1.91 1.50 46 17 29 0.4 3.5 10 34 PAF KTRC221 Emily Star 88.00 91.00 3.00 GABS Fresh 0.078 0.023 33473 6.8 0.16 0.09 3 19 -16 6.9 6.2 0 0 NAF KTRC221 Emily Star 91.00 92.00 1.00 BGCS Fresh 2 0.169 0.090 33474 7.7 0.15 0.19 6 20 -14 3.4 5.2 0 2 NAF KTRC221 Emily Star 92.00 132.00 40.00 ORE(GABSS/BGCS/GABS) KTRC221 Emily Star 132.00 133.00 1.00 GABSS BGCS Fresh 0.154 0.020 33475 8.1 0.08 0.18 6 18 -12 3.3 4.5 0 3 NAF KTRC221 Emily Star 133.00 137.00 4.00 GABSS BGCS Fresh 0.032 0.010 33476 7.9 0.12 0.04 1 26 -25 21.2 7.1 0 0 NAF KTRC221 Emily Star 137.00 138.00 1.00 GABSS BGCS Fresh 0.013 0.000 33477 8.2 0.14 0.02 1 21 -20 34.3 6.9 0 0 NAF KTRC221 Emily Star 138.00 142.00 4.00 GABSS BGCS Fresh 0.076 0.000 33478 7.8 0.15 0.07 2 21 -19 9.8 7.2 0 0 NAF KTRC221 Emily Star 142.00 145.00 3.00 GABSS BGCS Fresh 0.021 0.000 33479 8.1 0.09 0.03 1 34 -33 37.0 7.1 0 0 NAF KTRC221 Emily Star 145.00 146.00 1.00 GABSS BGCS Fresh 1 0.019 0.000 33480 7.7 0.18 0.03 1 21 -20 22.9 7.1 0 0 NAF KTRC221 Emily Star 146.00 151.00 5.00 ORE(GABSS/BGCS) KTRC221 Emily Star 151.00 152.00 1.00 GABSS BGCS Fresh 0.096 0.000 33481 8.4 0.19 0.11 3 20 -17 5.9 6.9 0 0 NAF KTRC221 Emily Star 152.00 154.00 2.00 GABSS BGCS Fresh 0.076 0.000 33482 8.7 0.19 0.09 3 21 -18 8.1 7.1 0 0 NAF

KEY pH1:2 = pH of 1:2 extract Lithology Codes Sulphide Abundance NAF = Non-Acid Forming

EC1:2 = Electrical Conductivity of 1:2 extract (dS/m) BS Biotite Schist 1 trace PAF = Potentially Acid Forming

MPA = Maximum Potential Acidity (kgH2SO4/t) GABS Garnet Andalusite Biotite Schist 2 minor PAF-LC = PAF - Lower Capacity

ANC = Acid Neutralising Capacity (kgH2SO4/t) GABSS Garnet Andalusite Biotite Staurolite Schist 3 moderate UC = Uncertain Classification

NAPP = Net Acid Producing Potential (kgH2SO4/t) BGCS Biotite Garnet Chlorite Schist 4 strong (expected classification in brackets) NAGpH = pH of NAG liquor QMS Quartz Muscovite Schist 5 intense

NAG(pH4.5) = Net Acid Generation capacity to pH 4.5 (kgH2SO4/t) BCS Biotite Chlorite Schist (not lode schist) 6 extreme

NAG(pH7.0) = Net Acid Generation capacity to pH 7.0 (kgH2SO4/t) SSQ Quartzite MS Massive Sulphide Zone QV Quartz Vein SHR Shear

Page 2 of 2 Table 2: Sequential NAG test results for selected waste rock samples.

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Cumulative NAG EGi Total ANC NAPP Hole Sample Rock Unit NAGpH NAG NAGpH NAG NAGpH NAG NAGpH NAG NAGpH NAG NAG S (%) (pH7.0) (pH7.0) (pH7.0) (pH7.0) (pH7.0) (pH7.0) No (kg H2SO4/t) (kg H2SO4/t) (kg H2SO4/t) (kg H2SO4/t) (kg H2SO4/t) (kg H2SO4/t) (kg H2SO4/t) KTRCD120 33446 GABS 2.33 8 63 2.8 35 3.2 9 3.6 4 3.7 3 4.4 1 52

KEY: NAGpH = pH of NAG liquor

NAG(pH7.0) = Net Acid Generation capacity to pH 7.0 (kgH2SO4/t) Table 3: Multi-element composition of selected sample solids (mg/kg except where shown).

Sample Location and Sample Number Detection Element Main and Eastern Zone Emily Star Limit 33402 33405 33410 33415 33416 33425 33427 33446 33449 33454 33459 33463 33465 33467 33471 33474 Ag 0.1 0.3 0.1 <0.1 0.4 0.3 0.2 <0.1 1.2 1.1 0.7 0.4 0.2 <0.1 <0.1 0.1 0.3 Al 0.002% 7.00% 7.05% 6.52% 4.77% 6.66% 6.57% 7.39% 5.82% 5.89% 6.05% 6.30% 7.25% 7.52% 7.71% 7.39% 5.88% As1<1<1222234561225<11<14 B 50 <50 <50 <50 <50 <50 <50 <50 <50 <50 <50 <50 <50 <50 <50 <50 <50 Ba 0.1 239 235 221 137 181 222 291 176 167 167 245 620 661 785 344 109 Be 0.1 2.1 2.1 1.3 1.0 1.3 1.6 2.1 2.0 1.8 1.5 2.0 3.9 4.1 3.0 2.1 1.1 Ca 0.001% 0.12% 0.14% 0.14% 0.14% 0.14% 0.14% 0.64% 0.14% 0.16% 0.13% 0.13% 2.15% 0.90% 0.49% 0.19% 0.69% Cd0.1<0.1<0.1<0.1<0.1<0.1<0.1<0.1<0.1<0.1<0.1<0.10.5<0.1<0.1<0.1<0.1 Co 0.1 91 24 113 168 72 72 29 138 148 130 20 23 21 22 26 18 Cr 2 91 83 89 92 91 100 74 78 71 102 131 111 116 84 91 83 Cu 1 1571 118 233 1492 1625 501 541 4242 3593 2568 916 126 48 57 614 1524 F 50 909 1018 966 683 754 934 729 875 803 733 861 935 899 860 984 524 Fe 0.01% 10.44% 8.93% 10.67% 12.19% 10.68% 8.65% 7.49% 9.18% 8.61% 11.40% 7.51% 4.90% 5.08% 5.94% 10.70% 13.97% Hg 0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 K 0.002% 2.30% 2.17% 2.01% 1.87% 1.49% 2.17% 2.09% 2.16% 2.11% 2.58% 2.39% 2.59% 2.95% 3.23% 2.63% 0.87% Mg 0.002% 1.89% 1.64% 1.60% 1.33% 1.86% 1.68% 1.53% 1.46% 1.34% 1.72% 1.70% 2.06% 1.99% 1.78% 1.71% 1.23% Mn 1 1867 1689 2018 1764 2256 1534 1912 1610 1511 2565 2218 2076 2229 2214 1913 3146 Mo 0.1 3.1 1.7 6.7 5.0 5.2 4.3 1.3 3.6 2.9 3.7 2.5 1.9 1.4 1.6 2.9 9.1 Na 0.002% 0.06% 0.05% 0.04% 0.05% 0.05% 0.05% 0.15% 0.05% 0.05% 0.04% 0.13% 1.24% 1.18% 0.81% 0.17% 0.07% Ni1 47455652485831513948595455535219 P 20 516 634 638 542 636 741 285 712 632 551 728 846 746 635 765 966 Pb2 148 9 221611153011151024421127 12 S 0.001% 0.81% 0.23% 1.15% 1.80% 0.71% 1.07% 0.31% 2.33% 1.19% 1.45% 0.02% 0.48% 0.02% 0.01% 0.07% 0.19% Sb 0.05 0.08 0.07 0.08 0.09 0.06 0.23 0.10 0.26 0.11 0.09 0.14 0.10 0.07 0.07 0.07 0.63 Se 0.01 0.68 0.08 0.31 1.58 0.31 0.53 0.11 4.29 1.04 2.34 0.11 0.38 0.04 0.03 0.15 0.67 Si 0.1% 26.8% 27.4% 27.7% 27.1% 25.9% 27.0% 27.6% 26.4% 27.9% 25.4% 28.7% 26.2% 27.7% 27.9% 26.5% 27.5% Sn 0.1 8.1 7.3 9.2 10.7 9.5 7.1 6.9 9.2 8.0 10.7 5.9 6.4 5.2 6.2 9.1 7.2 Sr 0.05 10.2 10.2 8.9 9.9 8.3 10.1 49.3 10.6 11.4 8.1 35.7 169.1 80.8 59.0 15.7 17.2 Th 0.01 14.6 15.3 14.2 11.8 15.1 15.2 15.7 14.3 14.0 11.7 16.4 16.9 17.3 16.8 18.6 17.6 U 0.01 3.07 3.25 3.09 2.59 3.10 3.22 2.71 3.01 3.07 3.06 3.70 3.57 3.72 3.43 3.91 3.83 Zn 1 76 68 86 83 78 65 127 131 81 133 115 246 173 149 131 47 < element at or below analytical detection limit. Table 4: Geochemical abundance indices (GAI) of selected sample solids.

Sample Location and Sample Number Median Soil Element Main and Eastern Zone Emily Star Abundance* 33402 33405 33410 33415 33416 33425 33427 33446 33449 33454 33459 33463 33465 33467 33471 33474 Ag0.052- -221-44321- - -2 Al7.1%------As6------3--1---- B201111111111111111 Ba500------Be0.32221222222233321 Ca1.5%------Cd0.35------Co83134331443111111 Cr70------Cu30512553476641- -45 F2002221121211222221 Fe4.0%111111-111----11 Hg0.06------K1.4%------1-- Mg0.5%1111111111111111 Mn1000----1----11-11-1 Mo1.21-2121-111----12 Na0.5%------11--- Ni50------P800------Pb35------2---- S0.07%3134332444-2- - -1 Sb1------Se0.4---1---312------Si33.0%------Sn4--111--1-1----1- Sr250------Th9------U2------Zn90------1---- *Bowen H.J.M.(1979) Environmental Chemistry of the Elements. Table 5: Chemical composition of water extracts of selected samples.

Sample Detection Parameter Main and Eastern Zone Emily Star Limit 33402 33405 33410 33415 33416 33425 33427 33446 33449 33454 33459 33463 33465 33467 33471 33474 pH 0.1 7.5 8.1 5.4 5.2 5.3 4.5 8.4 3.6 4.9 5.1 7.2 7.6 7.5 8.1 6.7 7.9 EC dS/m 0.001 0.12 0.12 1.52 1.12 1.11 1.88 0.15 2.88 1.29 1.55 0.12 0.12 0.13 0.18 0.13 0.16 Ag mg/l 0.00001 0.00002 < < 0.00001 0.00003 0.00002 0.00002 < < < 0.00002 < 0.00001 < 0.00001 0.00002 Al mg/l 0.01 3.00 6.82 0.74 9.80 1.68 4.21 3.22 0.98 0.30 9.47 9.65 2.59 18.58 14.75 20.27 0.88 As mg/l 0.0001 0.0006 0.0005 0.0002 0.0005 0.0002 0.0007 0.0007 0.0008 0.0024 0.0003 0.0002 0.0016 0.0006 0.0010 0.0024 0.0012 B mg/l 0.01 0.03 0.04 0.03 0.01 0.02 < 0.02 0.01 < < 0.02 0.02 0.02 0.02 < 0.01 Ba mg/l 0.00005 0.02435 0.03952 0.03476 0.04669 0.07353 0.02288 0.05610 0.00324 0.00772 0.04084 0.04681 0.04840 0.16071 0.12461 0.13028 0.00542 Be mg/l 0.0001 0.0001 0.0004 < 0.0002 0.0001 0.0002 0.0003 0.0013 < 0.0003 0.0003 0.0002 0.0018 0.0015 0.0015 < Ca mg/l 0.01 1.10 0.54 1.71 0.98 3.11 0.55 18.46 1.84 1.69 0.47 0.54 4.93 1.26 0.79 0.78 0.66 Cd mg/l 0.00002 < 0.00002 < < 0.00033 < < 0.00106 0.00009 0.00005 0.00003 0.00022 0.00004 0.00003 0.00002 < Clmg/l24<5845<<3333<2<3 Co mg/l 0.0001 0.007 0.004 0.093 0.026 0.031 0.006 0.004 1.578 0.119 0.033 0.005 0.002 0.010 0.008 0.012 0.001 Cr mg/l 0.01 0.01 0.02 0.01 0.03 0.01 0.01 0.01 0.01 < 0.02 0.03 0.02 0.05 0.04 0.04 < Cu mg/l 0.01 0.08 0.03 0.01 0.24 0.08 0.04 0.10 3.68 0.05 0.27 0.60 0.03 0.06 0.04 0.29 0.03 F mg/l 0.1 0.1 0.1 < < < 0.2 0.3 < < 0.1 0.2 0.3 < < < 0.5 Fe mg/l 0.01 5.01 10.42 1.44 21.05 3.81 7.76 3.79 7.49 0.68 17.12 13.66 2.51 21.71 19.26 31.61 1.48 Hgmg/l0.0001<<<<<<<<<<<<<<<< K mg/l 0.1 63.5 29.7 74.1 78.3 105.6 65.5 23.3 1.0 72.4 92.6 20.9 52.9 21.9 16.9 33.3 34.5 Mg mg/l 0.01 5.12 3.07 16.88 10.66 44.35 4.13 5.45 59.04 15.58 10.36 4.41 9.97 10.06 7.17 8.06 2.32 Mn mg/l 0.01 0.02 0.03 0.13 0.06 0.25 0.03 0.06 2.20 0.13 0.04 0.20 0.10 0.21 0.13 0.06 < Mo mg/l 0.00005 0.00119 < 0.00011 0.00029 0.00018 0.0007 0.00141 < 0.00021 0.00038 < 0.00102 < < < 0.00728 Na mg/l 0.1 7.2 4.7 6.1 5.9 9.6 5.8 7.0 1.0 5.1 4.0 6.3 14.1 7.5 7.7 5.6 4.4 Ni mg/l 0.01 < 0.01 0.04 0.01 0.04 0.01 < 0.72 0.03 < < < 0.03 0.02 0.02 < Pmg/l0.1<0.1<<<<<<<<0.2<0.40.30.2< Pb mg/l 0.0005 0.002 0.002 0.002 0.013 0.003 0.002 0.003 0.005 0.002 0.003 0.002 0.021 0.007 0.003 0.004 0.001

SO4 mg/l 0.3 89.4 22.5 170.6 120.3 310.5 72.2 25.9 230.8 152.5 127.4 8.9 120.4 3.9 2.4 15.7 41.9 Sb mg/l 0.00001 0.00008 0.00002 0.00002 0.00003 0.00003 0.00012 0.00004 0.00003 0.00006 0.00006 0.00003 0.00005 0.00002 0.00002 0.00003 0.00142 Se mg/l 0.0005 0.001 < < 0.001 0.001 < < 0.004 0.002 0.001 < 0.005 < < 0.001 0.002 Si mg/l 0.05 5.29 8.51 3.00 13.15 3.95 6.07 5.29 2.60 1.70 12.09 11.34 4.18 22.51 18.05 23.77 2.42 Sn mg/l 0.0001 0.0004 < < 0.0003 0.0001 0.0001 0.0006 < < 0.0003 <<<<0.00010.0001 Sr mg/l 0.00002 0.0073 0.0032 0.0085 0.0083 0.0170 0.0036 0.0803 0.0016 0.0066 0.0028 0.0073 0.0223 0.0048 0.0037 0.0038 0.0019 Zn mg/l 0.01 0.01 0.01 < 0.02 < < 0.01 0.65 0.02 0.03 0.02 0.01 0.09 0.06 0.10 <

< element at or below analytical detection limit. Box Plot 9 3.0 90th

75th 8 2.5 50th 25th 7 2.0 10th

6 1.5 dS/m pH 5

1.0 4

0.5 3

2 0.0 pH1:2 EC1:2

Figure 1: Box plot showing the distribution of pH1:2 and EC1:2. Box plots have 10th, 25th, 50th (median), 75th and 90th percentiles marked.

9 3.0

pH 8 EC 2.5

7

2.0 6

5 1.5 pH1:2 EC1:2 (dS/m)

4 1.0

3

0.5 2

1 0.0 00.511.522.5 Total S (%)

Figure 2: Plot showing pH1:2 and EC1:2 versus total S. Box Plot 2.5 50 90th 2.2 45 75th

2.0 40 50th 25th 1.8 35 10th 1.5 30

1.2 25 kg H2SO4/t %

1.0 20

0.8 15

0.5 10

0.2 5

0.0 0 Total S (%) ANC (kg H2SO4/t)

Figure 3: Box plot showing the distribution of S and ANC for all samples from Kanmantoo. Box plots have 10th, 25th, 50th (median), 75th and 90th percentiles marked.

50 ANC/MPA=2 NAPP -ve 45 ANC/MPA=1.5 NAPP=0 40

35

/t) 30 4 SO 2 25

20 ANC (kg H NAPP +ve 15

10

5

0 0.0 0.5 1.0 1.5 2.0 2.5 Total S (%)

Figure 4: Acid-base account (ABA) plot showing ANC versus total S. 9

8 NAF UC

7

6

5 NAGpH

4

3

2

UC PAF 1 -60 -40 -20 0 20 40 60 80 NAPP (kg H2SO4/t)

Figure 5: ARD classification plot showing NAGpH versus NAPP, with ARD classification domains indicated. 10

9

8

7

6 pH 33405: ANC = 12 kg H2SO4/t 5 Calcite Standard: ANC=10 kg H2SO4/t

Dolomite Standard: ANC=10 kg H2SO4/t 4 Ferroan Dolomite Standard: ANC=10 kg H2SO4/t

3 Siderite Standard: ANC=10 kg H2SO4/t

2 02468101214 Acid Added (kg H2SO4/t)

Figure 6: ABCC profile for sample 33405 with an ANC value close to 10 kg H2SO4/t. Carbonate standard curves are included for reference.

10

9

8

7

6 pH 33400: ANC = 13 kg H2SO4/t 5 33412: ANC = 14 kg H2SO4/t 33434: ANC = 16 kg H2SO4/t Calcite Standard: ANC=15 kg H2SO4/t 4 Dolomite Standard: ANC=15 kg H2SO4/t Ferroan Dolomite Standard: ANC=15 kg H2SO4/t 3 Siderite Standard: ANC=15 kg H2SO4/t

2 0 5 10 15 20 Acid Added (kg H2SO4/t)

Figure 7: ABCC profile for samples with an ANC value close to 15 kg H2SO4/t. Carbonate standard curves are included for reference.

10

9

8

7 33425: ANC = 19 kg H2SO4/t 33452: ANC = 20 kg H2SO4/t 6 pH 33443: ANC = 22 kg H2SO4/t 5 33463: ANC = 22 kg H2SO4/t Calcite Standard: ANC=20 kg H2SO4/t 4 Dolomite Standard: ANC=20 kg H2SO4/t Ferroan Dolomite Standard: ANC=20 kg H2SO4/t 3 Siderite Standard: ANC=20 kg H2SO4/t

2 0 5 10 15 20 25 30 Acid Added (kg H2SO4/t)

Figure 8: ABCC profile for samples with an ANC value close to 20 kg H2SO4/t. Carbonate standard curves are included for reference. 10

9

8

7 33402: ANC = 29 kg H2SO4/t 6 pH 33414: ANC = 29 kg H2SO4/t

5 Calcite Standard: ANC=30 kg H2SO4/t

Dolomite Standard: ANC=30 kg H2SO4/t 4 Ferroan Dolomite Standard: ANC=30 kg H2SO4/t 3 Siderite Standard: ANC=30 kg H2SO4/t

2 0 5 10 15 20 25 30 35 40 Acid Added (kg H2SO4/t)

Figure 9: ABCC profile for samples with an ANC value close to 30 kg H2SO4/t. Carbonate standard curves are included for reference.

10

9

8 33453: ANC = 37 kg H2SO4/t

Calcite Standard: ANC=35 kg H2SO4/t 7

Dolomite Standard: ANC=35 kg H2SO4/t 6 pH Ferroan Dolomite Standard: ANC=35 kg H2SO4/t 5 Siderite Standard: ANC=35 kg H2SO4/t 4

3

2 0 1020304050 Acid Added (kg H2SO4/t)

Figure 10: ABCC profile for sample 33453 with an ANC value close to 35 kg H2SO4/t. Carbonate standard curves are included for reference. 33400 11 110 Sample Characteristics 10 pH 100 %S = 0.85 ANC = 13 kg H2SO4/t 9 Temperature (°C) 90 NAPP = 13 kg H2SO4/t 8 80 NAGpH = 3.2

7 70

pH 6 60

5 50 Temperature °C Temperature 4 40

3 30

2 20

1 10 0 100 200 300 400 500 600 Time (minutes)

Figure 11: Kinetic NAG graph for sample 33400.

33402 11 110 Sample Characteristics 10 100 pH %S = 0.81 9 Temperature (°C) 90 ANC = 29 kg H2SO4/t NAPP = -4 kg H2SO4/t 8 80 NAGpH = 3.2

7 70

pH 6 60

5 50 Temperature °C Temperature 4 40

3 30

2 20

1 10 0 100 200 300 400 500 600 Time (minutes)

Figure 12: Kinetic NAG graph for sample 33402.

33414 11 110 Sample Characteristics 10 100 %S = 1.75 ANC = 29 kg H2SO4/t 9 90 pH NAPP = 25 kg H2SO4/t NAGpH = 2.8 8 Temperature (°C) 80 7 70

pH 6 60

5 50 Temperature °C Temperature 4 40

3 30

2 20

1 10 0 50 100 150 200 250 300 Time (minutes)

Figure 13: Kinetic NAG graph for sample 33414. 33425 11 110 Sample Characteristics 10 pH 100 %S = 1.07 ANC = 19 kg H2SO4/t 9 Temperature (°C) 90 NAPP = 14 kg H2SO4/t 8 80 NAGpH = 3.1

7 70

pH 6 60

5 50 Temperature °C Temperature 4 40

3 30

2 20

1 10 0 100 200 300 400 500 600 Time (minutes)

Figure 14: Kinetic NAG graph for sample 33425.

33446 11 110 Sample Characteristics 10 pH 100 %S = 2.33 ANC = 8 kg H2SO4/t 9 Temperature (°C) 90 NAPP = 63 kg H2SO4/t 8 80 NAGpH = 2.8

7 70

pH 6 60

5 50 Temperature °C Temperature 4 40

3 30

2 20

1 10 0 50 100 150 200 250 300 Time (minutes)

Figure 15: Kinetic NAG graph for sample 33446.

33452 11 110 Sample Characteristics 10 pH 100 %S = 1.26 ANC = 20 kg H2SO4/t 9 Temperature (°C) 90 NAPP = 19 kg H2SO4/t 8 80 NAGpH = 2.9

7 70

pH 6 60

5 50 Temperature °C Temperature 4 40

3 30

2 20

1 10 0 100 200 300 400 500 600 Time (minutes)

Figure 16: Kinetic NAG graph for sample 33452. 2.5

y = 1.0098x R2 = 0.9855 2.0

1.5

1.0 Hillgrove Resources ICP S (%) Hillgrove Resources ICP

0.5

0.0 0.00.51.01.52.02.5 SESL Leco S (%)

Figure 17: Compares SESL Leco S with Hillgrove Resources ICP S. APPENDIX A

Assessment of Acid Forming Characteristics Appendix A - Assessment of Acid Forming Characteristics Page…A1

Assessment of Acid Forming Characteristics

Introduction

Acid rock drainage (ARD) is produced by the exposure of sulphide minerals such as pyrite to atmospheric oxygen and water. The ability to identify in advance any mine materials that could potentially produce ARD is essential for timely implementation of mine waste management strategies.

A number of procedures have been developed to help assess the acid forming characteristics of mine waste materials. The most widely used assessment methods for ARD characterisation are the Acid-Base Account (ABA) and the Net Acid Generation (NAG) test. These methods are referred to as static procedures because each involves a single measurement in time.

Acid-Base Account

The acid-base account involves static laboratory procedures that evaluate the balance between acid generation processes (oxidation of sulphide minerals) and acid neutralising processes (dissolution of alkaline carbonates, displacement of exchangeable bases, and weathering of silicates).

The values arising from the acid-base account are referred to as the maximum potential acidity (MPA) and the acid neutralising capacity (ANC), respectively. The difference between the MPA and ANC value is referred to as the net acid producing potential (NAPP).

The chemical and theoretical basis of the ABA are discussed below.

Maximum Potential Acidity

The MPA that can be generated by a sample is determined from the sample sulphur content. The total sulphur content of a sample is commonly determined by the Leco high temperature combustion method. The calculation assumes that all the sulphur measured in the sample occurs as pyrite (FeS2) and that the pyrite reacts under oxidising conditions to generate acid according to the reaction:

FeS2 + 15/4 O2 +7/2H2O => Fe(OH)3 +2H2SO4

According to this reaction, the MPA of a sample containing 1 %S as pyrite would be 30.6 kilograms of H2SO4 per tonne of material (i.e. kg H2SO4/t). Hence the MPA of a sample is calculated from the total sulphur content using the following formula:

MPA (kg H2SO4/t) = (Total %S) x 30.6

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The use of the total sulphur assay to estimate the MPA is a conservative approach because some sulphur may occur in forms other than pyrite. Sulphate-sulphur and native sulphur, for example, are non-acid generating sulphur forms. Also, some sulphur may occur as other metal sulphides (e.g. covellite, chalcocite, sphalerite, galena) which yield less acidity than pyrite when oxidised or, in some cases, may be non-acid generating.

The total sulfur content is commonly used to assess MPA because of the difficulty and costs involved in routinely determining the speciation of sulfur forms within samples and determining reactive sulphide-sulfur contents. However, if the sulphide mineral forms are known then allowance can be made for non- and lesser acid generating sulfur forms to provide a better estimate of the MPA.

Acid Neutralising Capacity

The acid formed from pyrite oxidation will to some extent react with acid neutralising minerals contained within the sample. This inherent acid buffering is quantified in terms of the ANC.

The ANC is commonly determined by the Modified Sobek method. This method involves the addition of a known amount of standardised hydrochloric acid (HCl) to an accurately weighed sample, allowing the sample time to react (with heating), then back-titrating the mixture with standardised sodium hydroxide (NaOH) to determine the amount of unreacted HCl. The amount of acid consumed by reaction with the sample is then calculated and expressed in the same units as the MPA, that is kg H2SO4/t.

Net Acid Producing Potential

This is a theoretical calculation commonly used to indicate if a material has potential to produce acidic drainage. It represents the balance between the capacity of a sample to generate acid (MPA) and its capacity to neutralise acid (ANC). The NAPP is also expressed in units of kg H2SO4/t and is calculated as follows:

NAPP = MPA - ANC

If the MPA is less than the ANC then the NAPP is negative, which indicates that the sample may have sufficient ANC to prevent acid generation. Conversely, if the MPA exceeds the ANC then the NAPP is positive, which indicates that the material may be acid generating.

ANC/MPA Ratio

The ANC/MPA ratio is frequently used as a means of assessing the risk of acid generation from mine waste materials. The ANC/MPA ratio is another way of looking at the acid base account. A positive NAPP is equivalent to an ANC/MPA ratio less than 1, and a

Environmental Geochemistry International Pty Ltd Appendix A - Assessment of Acid Forming Characteristics Page…A3 negative NAPP is equivalent to an ANC/MPA ratio greater than 1. A NAPP of zero is equivalent to an ANC/MPA ratio of 1.

The purpose of the ANC/MPA ratio is to provide an indication of the relative margin of safety (or lack thereof) within a material. Various ANC/MPA values are reported in the literature for indicating safe values for prevention of acid generation. These values typically range from 1 to 3. As a general rule, a ANC/MPA ratio of 2 or more generally signifies that there is a high probability that the material will remain circum-neutral in pH and thereby should not be problematic with respect to acid rock drainage.

Acid-Base Account Plot

Sulphur and ANC data are often presented graphically in a format similar to that shown in Figure 1. This figure includes a line indicating the division between NAPP positive samples from NAPP negative samples. Also shown are lines corresponding to ANC/MPA ratios of 2 and 3.

150 ANC/MPA=3 ANC/MPA=2 NAPP=0

-ve NAPP

100 /t) 4 SO 2

+ve NAPP

ANC (kgH 50

0 012345 Total S (%)

Figure A-1. Acid-base account (ABA) plot

Net Acid Generation (NAG) Test

The NAG test is used in association with the NAPP to classify the acid generating potential of a sample. The NAG test involves reaction of a sample with hydrogen peroxide to rapidly oxidise any sulphide minerals contained within a sample. During the NAG test both acid generation and acid neutralisation reactions can occur simultaneously. Therefore, the end result represents a direct measurement of the net amount of acid generated by the sample. This value is commonly referred to as the NAG capacity and is expressed in the same units as NAPP, that is kg H2SO4/t.

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Several variations of the NAG test have been developed to accommodate the wide geochemical variability of mine waste materials. The three main NAG test procedures currently used by EGi are the single addition NAG test, the sequential NAG test, and the kinetic NAG test.

Single Addition NAG Test

The single addition NAG test involves the addition of 250 mL of 15% hydrogen peroxide to 2.5 gm of sample. The peroxide is allowed to react with the sample overnight and the following day the sample is gently heated to accelerate the oxidation of any remaining sulphides, then vigorously boiled for several minutes to decompose residual peroxide. When cool, the pH and acidity of the NAG liquor are measured. The acidity of the liquor is then used to estimate the net amount of acidity produced per unit weight of sample.

An indication of the form of the acidity is provided by initially titrating the NAG liquor to pH 4.5, then continuing the titration up to pH 7. The titration value at pH 4.5 includes acidity due to free acid (i.e. H2SO4) as well as soluble iron and aluminium. The titration value at pH 7 also includes metallic ions that precipitate as hydroxides at pHs between 4.5 and 7.

Sequential NAG Test

When testing samples with high sulphide contents it is not uncommon for oxidation to be incomplete in the single addition NAG test. This can sometimes occur when there is catalytic breakdown of the hydrogen peroxide before it has had a chance to oxidise all of the sulphides in a sample. To overcome this limitation, a multi-stage sequential NAG test is often carried out. This test may also be used to assess the relative geochemical lag of PAF samples with high ANC.

The sequential NAG test is a multi-stage procedure involving a series of single addition NAG tests on the one sample (i.e. 2.5 g of sample is reacted two or more times with 250 mL aliquots of 15% hydrogen peroxide). At the end of each stage, the sample is filtered and the solution is used for measurement of NAGpH and NAG capacity. The NAG test is then repeated on the solid residue. The cycle is repeated until such time that there is no further catalytic decomposition of the peroxide, or when the NAGpH is greater than pH 4.5. The overall NAG capacity of the sample is then determined by summing the individual acid capacities from each stage.

Kinetic NAG Test

The kinetic NAG test is the same as the single addition NAG test except that the temperature, pH and sometimes EC of the liquor are recorded. Variations in these parameters during the test provide an indication of the kinetics of sulphide oxidation and acid generation during the test. This, in turn, can provide an insight into the behaviour of the material field under field conditions. For example, the pH trend gives an estimate of

Environmental Geochemistry International Pty Ltd Appendix A - Assessment of Acid Forming Characteristics Page…A5 relative reactivity and may be related to prediction of lag times and oxidation rates similar to those measured in leach columns. Also, sulphidic samples commonly produce a temperature excursion during the NAG test due to the decomposition of the peroxide solution, catalysed by sulphide surfaces and/or oxidation products.

Sample Classification

The acid forming potential of a sample is classified on the basis of the acid-base and NAG test results into one of the following categories:

• Barren, • Non-acid forming (NAF), • Potentially acid forming (PAF), and • Uncertain (UC).

Barren

A sample classified as barren essentially has no acid generating capacity and no acid buffering capacity. This category is most likelytoapplytohighlyweatheredmaterials.In essence, it represents an ‘inert’ material with respect to acid generation. The criteria used to classify a sample as barren may vary between sites, but for hard rock mines it generally applies to materials with a total sulfur content 0.1 %S and an ANC 5 kg H2SO4/t.

Non-acid forming (NAF)

A sample classified as NAF may, or may not, have a significant sulfur content but the availability of ANC within the sample is more than adequate to neutralise all the acid that theoretically could be produced by any contained sulphide minerals. As such, material classified as NAF is considered unlikely to be a source of acidic drainage. A sample is usually defined as NAF when it has a negative NAPP and the final NAG pH 4.5.

Potentially acid forming (PAF)

A sample classified as PAF always has a significant sulfur content, the acid generating potential of which exceeds the inherent acid neutralising capacity of the material. This means there is a high risk that such a material, even if pH circum-neutral when freshly mined or processed, could oxidise and generate acidic drainage if exposed to atmospheric conditions. A sample is usually defined as PAF when it has a positive NAPP and a final NAGpH < 4.5.

Uncertain (UC)

An uncertain classification is used when there is an apparent conflict between the NAPP and NAG results (i.e. when the NAPP is positive and NAGpH > 4.5, or when the NAPP is

Environmental Geochemistry International Pty Ltd Appendix A - Assessment of Acid Forming Characteristics Page…A6 negative and NAGpH 4.5). Uncertain samples are generally given a tentative classification that is shown in brackets e.g. UC(NAF).

Figure A-2 shows the format of the classification plot that is typically used for presentation of geochemical data. Marked on this plot are the quadrats representing the NAF, PAF and UC classifications.

12

11

10

9 NAF UC 8

7

6 NAGpH 5

4

3 UC PAF 2

1 -200 -150 -100 -50 0 50 100 150 200 NAPP kg H2SO4/t Figure A-2 Geochemical classification plot

Other Methods

Other test procedures may be used to define the acid forming characteristics of a sample. pH and Electrical Conductivity

The pH and electrical conductivity (EC) of a sample is determined by equilibrating the sample in deionised water for a minimum of 1 hour, typically at a solid to water ratio of 1:2 (w/w). This gives an indication of the inherent acidity and salinity of the waste material when initially exposed in a waste emplacement area.

Acid Buffering Characteristic Curve (ABCC) Test

The ABCC test involves slow titration of a sample with acid while continuously monitoring pH. This data provides an indication of the portion of ANC within a sample that is readily available for acid neutralisation.

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