South Australia Mineral Resources Investment Dr Andrew Rowett
General Manager Resource Information Mineral Resources, DMITRE
Tokyo 12th November 2012
FIMI Convention, Bangalore, 2012
Outline of Presentation
1. South Australia’s mineral commodities, discoveries and resources
2. South Australia’s Mining Pipeline Uranium Copper Iron Ore
3. International Partnerships
4. South Australia’s PACE 2020 initiative – supporting growth and investment in our resources
South Australia’s Mineral and Energy Commodities
• Copper • Opal and Jade • Iron Ore and Steel • Salt • Uranium • Gypsum • Zircon & Mineral Sands • Dolomite and Limestone • Gold and Silver • Silica • Lead and Zinc • Dimension stone • Processed petroleum • Natural Gas products • Oil • Kaolin • Coal • Graphite • Shale Gas • Processed petroleum products
Mineral Project Pipeline Major Mines 1. Olympic Dam 10. Beltana 2. *Challenger 11. White Dam 3. Beverley 12. Cairn Hill 4. Middleback 13. Iron Chieftain Range 14. Ankata 5. Leigh Creek 15. Kanmantoo 6. *Malu 16. Beverley North 7. *Angas 17. Peculiar Knob 8. *Honeymoon 18. *Wilgerup 9. Jacinth- 19. Wilcherry Hill Ambrosia 20. Mindarie
Developing Projects *Arckaringa (CTL) Gullivers (HM) Paris (Ag) Atacama/Typhoon/ Gum Flat (Fe2O3) Poochera (Kaolin) Sonoran (HM) Hawks Nest (Fe2O3) *Portia (Au) Beverley South (U3O8) Hematite Extension Project Razorback (Fe3O4) *Bird-in-Hand (Au) HEP (Fe2O3) *Samphire (U3O8) Bramfield (Fe2O3) Hillside (Cu, Au) Snaefell (Fe3O4) Bungalow (Fe3O4) Junction Dam (U3O8) Tripitaka (HM) *Carrapateena (Cu-Au) *Kalkaroo (Cu-Au-Mo) Typhoon(HM) Crocker Well (U3O8) Maldorky (Fe3O4) *Tunkillia (Au, Ag) Flinders-Reliance (Zn) *Menninnie Dam (Pb-Zn-Ag) Uley (Graphite) *Four Mile(U3O8) Mutooroo (Cu-Co) Warramboo (Fe3O4) White Dam North (Au)
Fusion (Fe3O4) MutoorooMajor (Fe2O3) Prospects
Acropolis (Cu-U-Au-Ag) Deloraine (Au) Mainwood (Au) North Portia (Cu, Au) Torrens South JV (Cu, Au) *Alvey (Pt, Pd) *Dromedary (HM) Malache (Zn, Pb) Notrab (HM) Ultima Dam (Au, U3O8) *Aphrodite (U3O8) *Emmie Bluff (Cu) Melton (Cu, Au) *Oakdale (Zn, Cu) Victory (U3O8, REE) Aristotle (Zn) Emmie North (Cu) Minbrie (Fe) Parara (IOCGU) *Vulcan (Cu, Au, U3O8) Armchair (U3O8) Eurelia (Diamonds) Miranda (Cu) *Parkinson Dam (Ag, Zn, Cu, Au) Weednanna (Pb, Zn, Ag, Cu, Au) Aroona 2 (Zn, Pb) Eurinilla Dome (Cu, Au) Mojave (HM) Pindari (Ni, Cr) Wheal Ellen (Zn, Pb, Ag) *Baggy Green (Au) Flinders Island (Diamond) *Mongolata (Au) Pollinga (Mn) Willamulka (Cu, Au) Bagot Well (Cu) Giffen Well (Fe2O3) Monsoon (Au) Princess Royal (Cu) Willy Willy (HM) Bald Hill Iron (Fe) Glenrae (IOCG) *Moonta (Cu) *Prospect Hill (Sn) Winjabbie East (Cu, REE) *Barns (Au) Golf Bore (Au) Moorilyanna (Cu) *Pundinya (U3O8) Wirrda (Cu, Au) *Barton West (HM) Goulds Dam (U3O8) Mount Brady (Fe, Cu, REE) Punt Hill (Cu, Au) * Yadglin (U3O8) Becaroo (U3O8, REE) Greenpatch (Fe3O4) *Mount Caroline (Ni, Cu, Pt, Pd) Radium Hill (U3O8, Th, Ra) Yanyarrie (Ba) Big Lake 20 (U3O8) *Hercules (Fe3O4) Mount Christie Siding (Cr2O3) Sequoia (Fe, U3O8) Yarramba (U3O8) Big Lake 28 (U3O8) Hicks Hill (Fe) Mount Cora (Fe) Sheoak (Au, Ag) Zeus (Cu, Ni) *Black Hills (Au) Jamieson Tank (Mn) Mount Davies (Ni) Shylock (Cu, Au) Blanchewater (U3O8) *Jungle Dam (Ag, Au, Fe) Mount Distance (U3O8) Skye (Au, Ag) Blinman (Cu) *Kangaroo Dam (Pt, Pd, Au) *Mount Gunson (Cu, Co) Springfield (Diamond) *Blue Rose (Cu, Au) Kenmore II (Ni, Cu) Mount Torrens (Cu-U-Au-Ag) *Stuart (IOCGU) Burra (Cu) Kingston (CTL) *Mount Woods (IOCGU) Taurus (Pt, Pd, Cu) Carrow (Fe) Kopi (Fe) Mulyungarie (U3O8) Telephone Dam (Pb, Zn) *Claude Hills (Ni) Lady Jane (Au) Netherleigh Park (Cu) *Titan (Cu, Au) Clinton(CTL) Lilydale (Fe) *Netley Hill (Cu, Mo) Tomahawk/Tunkillia area 191 (Au) 5 *Coolybring (Fe3O4) Lock (Coal) North Kalkaroo (Cu, Au) Toondulya (Cu, Au) 5 * PACE Co-funded * PACE Co-funded 5 South Australia’s Major Mines and Advanced Projects in 2012
• Twenty major mines • Exploration, A$323m pa • Employment, 14 000 people • Export Revenues, 37% A$4.2 bn+ • Over 30 minerals and energy projects
Australia’s Copper Resources Copper
South Australia has the largest Economic Demonstrated Resource in Australia at 56.5Mt which is 70% of the national total MINES
*Olympic Dam: BHP-B *Malu (Prominent Hill Open Cut): Oz Minerals Ankata (Prominent Hill Underground): Oz Minerals Kanmantoo: Hillgrove Resources
PROJECTS
*Carrapateena: Oz Minerals Hillside: Rex Minerals *Kalkaroo: Havilah Resources Mutooroo: Havilah Resources
PROSPECTS
North Portia: Havilah Resources Punt Hill: Monax
* PACE Co-funded
Australian Copper Conference 2012 Selected (Top 30) Copper Historical+Current Resources
• OLYMPIC DAM (BHPB) • CAIRN HILL • PROMINENT HILL (OzMin) • BLINMAN • CARRAPATEENA (OzMin) • MOUNT GUNSON • HILLSIDE (Rex) • ANABAMA • KAPUNDA • MG 14 • KANMANTOO (Hillgrove) • ELSIE • EMMIE BLUFF • ADAIR • KALKAROO • CATTLE GRID SOUTH • CATTLE GRID • BREMER • MUTOOROO (Havilah) • ANGAS • WALLAROO • MOUNTAIN OF LIGHT (Phoenix) • WINDABOUT • POONA • MOONTA NORTH • WHEAL HUGHES • PORTIA • BURRA • WEST DOORA • PARABARANA Globally Competitive in New Copper Discoveries
Olympic Dam (1976) Prominent Hill (2001) Carrapateena (2006) Hillside (2009)
Source: MinEx Consulting Feb 2010 The Premier IOCG Terrane
• ca. 1000 km x 1000 km (including Curnamona) Prominent Hill • Open, underexplored belt to northwest Olympic Dam • Pervasive alteration Carrapateena • Numerous targets
Moonta – Wallaroo
Hillside ADELAIDE
Iron Oxide Copper Gold Deposits
Olympic Dam
• Total Resource 9 129 Mt at 0.86% Cu, 0.027% U3O8, 0.32 g/t Au and 1.48g/t Ag Total Ore Reserve 500 Mt at 1.84% Cu, 0.057% U3O8, 0.76 g/t Au and 3.41 g/t Ag
• Production 2011–12 193 000 t Cu, 3890 t U3O8, 118 000 oz Au
Prominent Hill • Total Resource (including Ankata and Malu) – 214.9 Mt at 1.23% Cu, 0.5 g/t Au, 2.8 g/t Ag Production 2010–11 (contained metal in concentrate) – 105 751 t Cu, 191 708 oz Au, 530 568 oz Ag • Production 2011–12 107 000 t Cu, 147 000 oz Au
Carrapateena
• Inferred Resource 203 Mt at 1.31% Cu, 0.56 g/t Au, 6.0 Ag, 270 ppm U3O8
Hillside Prospect • Inferred Resource 217 Mt at 0.7% Cu, 0.2 g/t Au and 12.4% Fe
Total Remaining Copper (JORC + Historical)
90 Statistical under-representation 80 of large1-3Mt Cu occurrences 70 Olympic Dam and no giant 3-80 Mt Cu…. 60 so far 50 40
Cu(Mt) 30 20 10 Deposits
0
1 3 5 7 9
11 13 15 17 19 21 23 25 27 29 3
2
Cu (Mt)Cu
1
MG14
BURRA
ANGAS
NORTH…
CATTLE…
WHEAL…
POONA
MOUNT…
BREMER
HILLSIDE
MOONTA
BLINMAN
KAPUNDA
ANABAMA
KALKAROO
CAIRNHILL
WALLAROO
MOUNTAIN…
CARRAPATE…
ELSIE ADAIR
PROMINENT…
MUTOOROO
CATTLEGRID
WINDABOUT
WESTDOORA
KANMANTOO PARABARANA EMMIEBLUFF Deposits
Data courtesy Marc Davies GLOBAL CONTEXT Uranium discoveries: All Years
Primary By-Product Uranium Uranium
1000 Olympic Dam 500 kt U3O8 125 (2545 kt U3O8) 25 The world’s 5 biggest uranium deposit is in South Australia
Source: MinEx Consulting © July 2012 Australia’s Uranium Resources Uranium
Total uranium resources in South Australia
2.65 Mt U3O8 (2.25 Mt U) MINES
Olympic Dam: BHP-B Beverley: Heathgate Resources Beverley North: Heathgate Resources Honeymoon: Uranium One/Mitsui
PROJECTS Four-Mile: Alliance Resources/Quasar Resources Beverley South: Heathgate Resources Crocker Well: Sinosteel PepinNini Curnamona Management Samphire: Uranium SA Junction Dam: Marmota Energy
PROSPECTS Acropolis Cane Grass Oak Dam Radium Hill Wirrda Well Yarranna
SOUTH AUSTRALIAN URANIUM
200000.00 2500000.00 TOTAL U ENDOWMENT (t) 180000.00
2000000.00 160000.00 Total Uranium 140000.00 1500000.00 Endowment: 120000.00 2.25 Mt U 1000000.00 100000.00 (2.65 Mt U3O8) t
80000.00 500000.00
60000.00 0.00 40000.00
20000.00
0.00 Australia’s Iron Ore Resources Iron Ore
MINES Middleback Ranges: Arium Cairn Hill: IMX Resources Ltd Iron Chieftain: Arium *Wilgerup: Centrex Metals Ltd Peculiar Knob : OneSteel Ltd Wilcherry Hill: Ironclad Ltd
PROJECTS Bramfield: Lymex Ltd
Gum Flat: Lincoln Minerals Ltd
Hawks Nest: : OneSteel Ltd Mutooroo: Sumitomo Metal Mining Oceania Pty Ltd/ Minotaur Exploration NL Razorback: Royal Resources Ltd Warramboo: Iron Road Ltd Snaefell: IMX Resources Ltd Bungalow: Centrex Metals Ltd Baotou Iron & Steel Group Hematite Extension Project HEP: Arium
PROSPECTS
Lilydale: Havilah Resources NL Maldorky: Havilah Resources NL
* PACE Co-funded
An exciting list of future developments
Iron Ore • Rejuvenation and expansion of iron ore magnetite mines in Middleback Ranges by Arrium including Iron Baron, Iron Knob • Wilcherry Hill magnetite mine north of Kimba - IronClad Mining • Centrex Metals’ Wilgerup magnetite project and the associated WISCO/Centrex Port Spencer bulk iron ore facility north of Tumby Bay. • The Mutooroo, Razorback, Hawsons and Maldorky magnetite projects in the Curnamona Province are pursuing export options through Port Pirie.
Copper • Ankata underground copper gold mine expanding Prominent Hill operations - OZ Minerals • Carrapateena Copper Gold project OZ Minerals
Infrastructure • Arrium’s Whyalla iron ore port expansion to double throughput for export of Peculiar Knob and Hawks Nest • Port Bonython proposed $600m—$700m bulk commodity deep sea port facility
PACE 2020
International Partnerships
Saskatchewan Ontario
China India
Chile Adelaide Importance of Our National and International Partnerships
INTERNATIONAL • Government of South Australia partnership with People’s Republic of China • South Australia partnership with Shandong Province, China • DMITRE Mineral Resources partnership with Beijing Research Institute of Uranium Geology, China National Nuclear Corporation (CNNC) • DMITRE Mineral Resources partnership with Jilin University, China (Adjunct Professor Dr. Baohong Hou) • DMITRE Mineral Resources & Saskatchewan Province, Canada • GSSA and Chilean Ministry of Mines
NATIONAL • SACOME-DMITRE partnership on Community Engagement and Code of Practice • Leadership of Land Access Working Group under Standing Council Energy & Resources • Partnership with Geoscience Australia • South Australia’s Partnership with Northern Territory • Geoscience Partnerships with Australian States and Territories • Partnership with Deep Exploration Technology Cooperative Research Centre (DET CRC) and Adelaide University • Partnerships with CSIRO and Universities
Saskatchewan Ministry of Energy and Resources
• Early March 2009 Memorandum of Understanding signed between DMITRE (PIRSA) and the Saskatchewan Ministry of Energy and Resources, CANADA – Saskatchewan is the leading jurisdiction in North America for uranium exploration and mining production. • Athabasca Basin – World’s largest high grade U mines – Produces ~23% world U
• MoU aims to: – Promote geoscientific exchange – Facilitate geoscience knowledge sharing – Generate new U models for SA – Develop regulation and best practice policy
Athabasca Basin 3D modelling work
Cariewerloo Basin Project
Multi-parameter AEM survey lithostratigraphic logging
Hyperspectral logging
Magnetic depth to basement Geophysical Interpretation Adobe 3D pdf South Australia’s Objective for Mining Approvals
• Target of 6 months for Mineral Lease grant (timing from formal lodgement of lease application) achievable for major mines in SA
• Major mine – Prominent Hill (Oxiana now Oz Minerals) approved in 5 months (2006)
• Major Mine – Jacinth Ambrosia (Iluka) approved in 7 months (2009)
• Small mine – White Dam (Exco) approved in 3 months (2007)
• Longer for uranium mines and mines that trigger Environmental Impact Statement and/or Hawes Environment Protection and Biodiversity Conservation (Act 1999) processes compares to national benchmark* of
– 1- 2 years for “major” mine
– 6-12 months for “small” mine
* “National Audit of regulations influencing mining exploration and project approvals processes”, report prepared by URS for MCA, February, 2006
South Australia: a player on the world resources stage
1. PACE 2020 is the benchmark for Government
exploration/mining initiatives around the world
2. SA is World No.1 in Geoscience Data and Delivery
3. SA has attracted the world’s leading explorers and producers
4. Record growth in exploration and resource development
5. Globally significant exporter of Copper and high potential for
further discovery in the > 200 Mt (>1-3 Mt Cu) range