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DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL NOVEMBER 1999

INSIDE THIS ISSUE

• MINERS HELP CLEANUP

• OTWAY BASIN INTEREST

• NEW DATA RELEASE DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL NOVEMBER 1999 contents

MINERS AID DOCKLANDS CLEANUP 2 Mining industry skills help a major redevelopment VIC WEATHERS SPENDING SLUMP 4 Trend figures show Victoria is doing better than other states OTWAY BASIN ATTRACTS NEW PLAYERS 6 More companies join the search for gas UNDERGROUND STORAGE BOOSTS GAS RESERVES 8 WUGS means more security for Victoria’s gas supplies SANTOS STARTS VICTORIAN GAS PRODUCTION 10 More gas flows for Victorian consumers MINERAL SANDS TENDERS ATTRACT MANY BIDDERS 10 Explorers snap up new mineral sands acreage VICTORIAN MINERS READY FOR ANYTHING 11 cover picture Stawell’s safety team make it two in a row

ALL THAT GLITTERS ISN’T GOLD 18 Victoria’s commitment to providing high-quality Victoria’s Mining Week focuses on new minerals airborne geophysical data over the vast majority of the NEW DATA WILL BOOST EXPLORATION 19 state is providing explorers with unequalled advantages Explorers get plenty of encouragement from this new data release in locating exploration targets. The latest package of airborne magnetic and geophysical data plus accom- BOOST FOR BASE METALS TOO! 21 panying maps was released during Victorian Mining GSV reveals a new look at the prospects for base metals Week in November. It covers large areas of eastern Victoria and the highlands near Omeo. Our cover MINERAL REPORTING STANDARDS AND THE JORC CODE 22 image is one of the many new images from the latest There’s a new force in developing Australia leads the world in setting the standards data release and covers the Mansfield-Howitt region. Victoria’s mining and oil and gas A SHOW FOR LAKES OIL 24 industries. The pioneering spirit is still alive in the Gippsland Basin NEW LIGHT ON HIGHLANDS 25 It’s called VIMP 2001 (the Victorian New geological data is released for the Omeo region Initiative for Minerals and Petroleum 2001 for the 21st Century) and has already COMPETITION FOR KIPPER DEVELOPMENT SPREADS 28 More companies join the Kipper group led to major new discoveries, particularly of gold, base metals and NEW RFA HAS LITTLE IMPACT ON EXPLORERS 28 Victoria signs another regional forest agreement world-class deposits of mineral sands. Funded by the Victorian State regular features DISCLAIMER: This publication may be of assistance to you, but the State of Victoria and its officers do not guarantee that the publication Government, the VIMP 2001 program is without flaw of any kind or is wholly appropriate for your particu- uses the latest technology to provide RESPONSIBLE INDUSTRY WILL BE GOVT FOCUS 5 lar purposes and therefore disclaims all liability for any error, loss or New Minister Candy Broad has positive plans for the industry other consequence which may arise from you relying on any infor- industry with extensive geophysical mation in this publication. and geological data. INDUSTRY NEWS 12 Minerals and Petroleum Victoria acknowledges contributions made What’s new in the Victorian industry by private enterprise. Acceptance of these contributions, however, New information is being added does not endorse or imply endorsement by the Department of Natural continuously, particularly from RESOURCES MAP 14 Resources and Environment of any product or service offered by the airborne geophysical surveys both on A visual review of Victoria’s mineral resources contributors. and offshore, broadening the LICENCE REVIEW 16 All photographs, maps, charts, tables and written information in this The latest on mineral exploration licences publication are copyright under the Copyright Act and may not be knowledge of Victoria’s sedimentary reproduced by any process whatsoever without the written permis- basins and identifying exciting new OIL AND GAS RESOURCES 17 sion of the Department of Natural Resources and Environment. target areas of mineralisation. Victoria’s major petroleum resources © Minerals and Petroleum Victoria 1999. Contact Minerals and Petroleum Published quarterly on behalf of the Minerals and Petroleum Division of the Department of Natural Resources & Environment by RBA Communications, 86 Cooloongatta Rd, Camberwell Minerals and Petroleum Victoria Vic 3124 Tel: (03) 9889 1094 Fax: (03) 9889 9997 EMail: [email protected] Editor: Rex Banks. Advertising: Watts Media, 1396 Malvern Rd, Tooronga, Vic 3146 Level 15, 8 Nicholson Street Tel: (03) 9822 4461 Fax: (03) 9822 9192. Distribution enquires to Chandri Corray, Manager Marketing Development, Minerals and Petroleum Division, Department of Natural Resources & Environment, Level 15, 8 Nicholson St, East Melbourne, Vic, 3002, Tel: (03) 9637 8532 Fax: (03) 9637 8118. Website: East Melbourne Victoria 3002 Australia Australia Post Print Publication PP349472/00128. ISSN Number 13282409. Tel: +613 9637 8535 Fax: +613 9637 8155 1 DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL NOVEMBER 1999 contents

WEST MELBOURNE GAS WORKS, A LIVING HISTORY

The West Melbourne Gas Works was built and completed in 1856 on the northern side of the Yarra River by the City of Melbourne Gas and Coke Company. Originally the gasworks operated on a two hectare but between 1900 to 1910 extra land was acquired to allow for a major extension of the retort houses and associated gas storage tanks. In 1962 a catalytic oil to gas conversion plant was established at the site following the demo- lition of a number of retort houses. Earlier, in 1950 the Gas and Fuel Corporation of Victoria had been established to become the umbrella organisation for the unification of the previously diverse gas industry in Victoria and to start production of gas from the State’s vast brown coal reserves. Gas production at the West Melbourne site continued until 1970, when natural gas was introduced across the state. The massive task of converting household and industrial gas appliances from town gas to natural gas took over a year but in 1970 the West Melbourne gas works closed with the buildings and gasometer storage tanks demolished in 1974. However demoli- tion was confined to the removal of above ground structures. Buried structures such as tar pits, gas holder sumps and miscellaneous pits and pipelines were left in place, creating today’s environmental problem.

New residential precincts will be developed in the area formerly occupied Miners aid Docklands cleanup by the old West Melbourne gasworks.

he ambitious redevelopment of the mining industry to be employed in the site western end for a century, with the tall chim- Substantial testing has been conducted over Melbourne’s Yarra River heartland is remediation. ney stacks creating an impressive reminder of several years to determine the location and rejuvenating a vast area of waterfront Industrial site remediation specialist Enterra the industrial progress of Melbourne, one of nature of the contaminants. Significant levels of contamination at the West Melbourne Gas T property lost for a century to wharves Pty Ltd, with back-up from engineering and the first cities in the world to widely reticulate risk to the health of human beings or the The remediation works will renew the gas- Works have been identified to depths of 3 to 5 and heavy industry, re-acquainting the environmental specialists such as GHD and gas for domestic and industrial use. environment; works site, creating eight hectares of prime metres and are more concentrated within the state with its maritime origins. Woodward-Clyde, has been awarded a $46 mil- In more recent times the West Melbourne waterfront land safe for residential and com- boundaries of the gas works site. Further con- ¥ Protects the use of the land and surrounding lion contract to rehabilitate the eight hectare works also processed crude oil and industrial mercial development. Most Victorians have never seen the inner city tamination has been located off site in areas area for the purpose of and for the future use parts of the Yarra River area which has been site. One innovative solution to the problem of waste oils to manufacture gas, generating a of the development; During the rehabilitation work local residents contamination at the old gasworks will also different range of waste products. Once heat- where gas works waste may have been used effectively barricaded from the city by the for landfill in surrounding areas. ¥ Protects the existing beneficial uses of the and commuters, particularly at Spencer Street high wire fences surrounding the Spencer help generate electricity for Victoria while ed the coal or oil turns into gas but also pro- railway station may notice some odours as the The contaminants identified include metals, Yarra River and the groundwater; and Street rail yards, unsightly cargo sheds and the removing potentially harmful waste products. duces a large range of other products such as underground storage pits are excavated and cyanide, monocyclic aromatic hydrocarbons ¥ Qualifies the premises to be issued with a former West Melbourne Gas Works. Up to 40,000 tonnes of heavily contaminated coal tar, bitumen and waste products, some of the contaminated soil removed. (MAH’s), polycyclic aromatic hydrocarbons statement by an environmental auditor Now the area is being reclaimed by the city as soil from the gasworks site will be removed which were discarded on site. (PAHs), phenols, sulphate, tar and ammomia- attesting to the suitability of the land for the Up to 40,000 tonnes of soil will be transport- new life is being pumped into the area through and sent to the Hazelwood power station near The gas serviced homes and industries through- col liquors. development. ed by covered trucks to Hazelwood power sta- the development of the Docklands stadium Morwell where it will be mixed with brown out Melbourne, while coal tars were used to tion. After the work is complete the contained Metal contamination is likely to have come Past practice for remediating these sites usual- and creation of a whole new residential and coal and burnt as fuel. The high content of tars make bitumen and valuable household and portion of the site will be turned into an attrac- from both fill material and gasworks waste. ly involved removing much of the contaminat- light commercial precinct. and similar products make it a useful addition industrial products, including soaps, medicines tive boulevard and public parkland. to the brown coal normally burnt in the power and dyes. For a century coal gas played a crucial Soils on site contain a mixture of assorted ed soil and transporting it to an EPA-licensed But some parts of the site, now known as The remainder of the land will be released for station. Ash from the power station will be role in the economic development of Melbourne building rubble and gas works by-products contained landfill before refilling the hole Docklands, still require substantial effort and sale to commercial and residential developers sent to landfill as normal. but the introduction of clean-burning, natural including black staining, tar and oily liquids. with clean soil from elsewhere. considerable technical expertise before the who will create a new business and residential The West Melbourne Gas Works produced gas superseded the need for coal gas. The Environment Protection Authority But modern EPA guidelines are aimed at min- ground can be reused. In particular, the former precinct right on the waterfront, something coal gas for over a century, from 1856 until its issued a clean-up notice on August 15, imising the volume of material going to land- West Melbourne Gasworks site must undergo Over its 100 year working life waste and liq- Melbourne has never before experienced. a major environmental rehabilitation program closure in 1970, after the development of nat- uid by-products from the gas making process 1994. The notice required the State to fill so the latest soil rehabilitation processes to remove soil contaminants, a legacy of a ural gas from Bass Strait. To manufacture coal were deposited into storage ponds on-site, a undertake a series of cleanup measures to involve containing contaminants in a sealed century of industrial practices, thankfully no gas, black coal, acquired from the coal fields common practice in gas works around the remove contaminants and rehabilitate the enclosure on site and treating and re-using FOR MORE INFORMATION CONTACT: land occupied by the former gas works site other contaminated material on site. longer acceptable. of New South Wales, was heated in a vacuum world. But when the gas works was finally Matthew Russell to prevent the coal from burning. to a standard that: The large scale of the contamination and the decommissioned, it was only demolished to These are processes developed and most often Public Affairs Officer, Docklands Authority complex nature of the hydrocarbons and other The vast retort houses, where the coal was ground level, leaving the underground waste ¥ Ensures that the development can proceed used at mine sites where large areas can be Telephone (03) 9628 4499 chemicals in the soil has required the skills of heated, were a familiar landmark at the city’s pits still remaining on the site. in a safe manner and that there is no undue contaminated by tailings or waste rock dumps.

2 3 ENVIRONMENT

WEST MELBOURNE GAS WORKS, A LIVING HISTORY

New residential precincts will be developed in the area formerly occupied Miners aid Docklands cleanup by the old West Melbourne gasworks. he ambitious redevelopment of the mining industry to be employed in the site western end for a century, with the tall chim- Substantial testing has been conducted over Melbourne’s Yarra River heartland is remediation. ney stacks creating an impressive reminder of several years to determine the location and rejuvenating a vast area of waterfront Industrial site remediation specialist Enterra the industrial progress of Melbourne, one of nature of the contaminants. Significant levels of contamination at the West Melbourne Gas T property lost for a century to wharves Pty Ltd, with back-up from engineering and the first cities in the world to widely reticulate risk to the health of human beings or the The remediation works will renew the gas- Works have been identified to depths of 3 to 5 and heavy industry, re-acquainting the environmental specialists such as GHD and gas for domestic and industrial use. environment; works site, creating eight hectares of prime metres and are more concentrated within the state with its maritime origins. Woodward-Clyde, has been awarded a $46 mil- In more recent times the West Melbourne waterfront land safe for residential and com- boundaries of the gas works site. Further con- ¥ Protects the use of the land and surrounding lion contract to rehabilitate the eight hectare works also processed crude oil and industrial mercial development. Most Victorians have never seen the inner city tamination has been located off site in areas area for the purpose of and for the future use parts of the Yarra River area which has been site. One innovative solution to the problem of waste oils to manufacture gas, generating a of the development; During the rehabilitation work local residents contamination at the old gasworks will also different range of waste products. Once heat- where gas works waste may have been used effectively barricaded from the city by the for landfill in surrounding areas. ¥ Protects the existing beneficial uses of the and commuters, particularly at Spencer Street high wire fences surrounding the Spencer help generate electricity for Victoria while ed the coal or oil turns into gas but also pro- railway station may notice some odours as the The contaminants identified include metals, Yarra River and the groundwater; and Street rail yards, unsightly cargo sheds and the removing potentially harmful waste products. duces a large range of other products such as underground storage pits are excavated and cyanide, monocyclic aromatic hydrocarbons ¥ Qualifies the premises to be issued with a former West Melbourne Gas Works. Up to 40,000 tonnes of heavily contaminated coal tar, bitumen and waste products, some of the contaminated soil removed. (MAH’s), polycyclic aromatic hydrocarbons statement by an environmental auditor Now the area is being reclaimed by the city as soil from the gasworks site will be removed which were discarded on site. (PAHs), phenols, sulphate, tar and ammomia- attesting to the suitability of the land for the Up to 40,000 tonnes of soil will be transport- new life is being pumped into the area through and sent to the Hazelwood power station near The gas serviced homes and industries through- col liquors. development. ed by covered trucks to Hazelwood power sta- the development of the Docklands stadium Morwell where it will be mixed with brown out Melbourne, while coal tars were used to tion. After the work is complete the contained Metal contamination is likely to have come Past practice for remediating these sites usual- and creation of a whole new residential and coal and burnt as fuel. The high content of tars make bitumen and valuable household and portion of the site will be turned into an attrac- from both fill material and gasworks waste. ly involved removing much of the contaminat- light commercial precinct. and similar products make it a useful addition industrial products, including soaps, medicines tive boulevard and public parkland. to the brown coal normally burnt in the power and dyes. For a century coal gas played a crucial Soils on site contain a mixture of assorted ed soil and transporting it to an EPA-licensed But some parts of the site, now known as The remainder of the land will be released for station. Ash from the power station will be role in the economic development of Melbourne building rubble and gas works by-products contained landfill before refilling the hole Docklands, still require substantial effort and sale to commercial and residential developers sent to landfill as normal. but the introduction of clean-burning, natural including black staining, tar and oily liquids. with clean soil from elsewhere. considerable technical expertise before the who will create a new business and residential The West Melbourne Gas Works produced gas superseded the need for coal gas. The Environment Protection Authority But modern EPA guidelines are aimed at min- ground can be reused. In particular, the former precinct right on the waterfront, something coal gas for over a century, from 1856 until its issued a clean-up notice on August 15, imising the volume of material going to land- West Melbourne Gasworks site must undergo Over its 100 year working life waste and liq- Melbourne has never before experienced. a major environmental rehabilitation program closure in 1970, after the development of nat- uid by-products from the gas making process 1994. The notice required the State to fill so the latest soil rehabilitation processes to remove soil contaminants, a legacy of a ural gas from Bass Strait. To manufacture coal were deposited into storage ponds on-site, a undertake a series of cleanup measures to involve containing contaminants in a sealed century of industrial practices, thankfully no gas, black coal, acquired from the coal fields common practice in gas works around the remove contaminants and rehabilitate the enclosure on site and treating and re-using FOR MORE INFORMATION CONTACT: land occupied by the former gas works site other contaminated material on site. longer acceptable. of New South Wales, was heated in a vacuum world. But when the gas works was finally Matthew Russell to prevent the coal from burning. to a standard that: The large scale of the contamination and the decommissioned, it was only demolished to These are processes developed and most often Public Affairs Officer, Docklands Authority complex nature of the hydrocarbons and other The vast retort houses, where the coal was ground level, leaving the underground waste ¥ Ensures that the development can proceed used at mine sites where large areas can be Telephone (03) 9628 4499 chemicals in the soil has required the skills of heated, were a familiar landmark at the city’s pits still remaining on the site. in a safe manner and that there is no undue contaminated by tailings or waste rock dumps.

2 3 REGULAR FEATURE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST:

MINERALS BUSINESS CENTRE: HEAD OFFICE: Level 8, 240 Victoria Parade, Level 15, 8 Nicholson Street, Vic weathers Responsible industry will be govt focus East Melbourne Vic 3002 Australia East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Tel: +613 9637 8535 Fax: +613 9412 5150 Fax: +613 9637 8155 spending slump

MINERALS AND PETROLEUM DIVISION: Kouroush Mehin FALL IN EXPLORATION SPENDING 1998/99 COMPARED TO 1997/98 t is often said that a week is a long time and petroleum developments goes directly to Fax: (03) 9412 7834 Acting Manager Petroleum Resources NSW VIC QLD SA WA TAS NT AUST in politics, but in the last month even a local and regional communities, in jobs and Telephone: (03) 9412 5082 0 I day seems to be a long time! wealth creation. David Lea -5 As you are aware I have been the Minister for Executive Director Minerals and Petroleum Mike Woollands -6.9 A key focus of this Government’s agenda is -10 Telephone: (03) 9637 8535 Manager Basin Studies Energy and Resources for eight weeks now the rebuilding of regional Victoria. Telephone: (03) 9412 5135 -15 -14.2 and I was in the interesting position of becom- -15 I believe that responsible mining industries, David Wallish -20 ing a minister even before I was sworn in as a -20.8 including minerals and petroleum, can make a Business Manager Maher Megallaa % fall -21.5 -25 member of Parliament. Telephone: (03) 9637 8534 Manager Acreage Release -25.6 -25.5 significant contribution to that process. -30 In this, my first Discovery column, it is appro- Telephone: (03) 9412 5081 There are good prospects for new develop- MINERALS BUSINESS CENTRE: priate for me as a new minister in a new gov- -35 ments in our rich goldfields and for mineral Fax: (03) 9412 5150 Bob Harms ernment to comment on the Government’s -40 sands in the Mallee and Wimmera. Manager Petroleum Information general thinking as regards your industry. Kim Ricketts -42.5 Telephone: (03) 9412 5053 -45 I am sure that the extractive sector of the min- Client Services Officer Firstly, the great contribution that the minerals erals industry will continue to provide Telephone: (03) 9412 5103 Geoff Collins and petroleum industries have already made to Victorians with low cost materials to meet the Manager Petroleum Projects he level of mineral exploration spending in Victoria has Victoria must be acknowledged. MINERALS DEVELOPMENT: Telephone: (03) 9637 8531 remained relatively strong despite the national down trend state’s infrastructure and construction needs. Fax: (03) 9637 8118 ¥ The discovery of gold was the main driver over the past two years. Figures released recently by the Major gas developments onshore and offshore MINERALS AND PETROLEUM Australian Bureau of Statistics (ABS), show that for the period of Victoria’s early development and the Phil Roberts T will help ensure future supply and provide REGULATION: to June 30 last, Australia’s level of mineral exploration spending building of Melbourne and our great region- Manager Minerals Development Victoria and New South Wales with energy Fax: (03) 9412 5152 has fallen in each of the past eight consecutive quarters. al cities, such as Bendigo and Ballarat, Telephone: (03) 9637 8529 alternatives and assist in mitigating green- Rob King Expenditure of $838 million for the year ended June 30 was 21 per cent ¥ Latrobe Valley coal has provided the vast house gas emissions in the near to medium Graham Gooding lower than the previous year ‘s rate of $1,067 million and the lowest Manager Minerals and Petroleum majority of Victoria’s power since the term. Regional Manager Ballarat reported annual expenditure since the 1993-94 financial year figure of Telephone: (03) 9412 5069 1920’s, and Telephone: (03) 53 336 521 $793 m. Gold was the hardest hit with exploration falling 25 per cent to Innovation and technical advances will enable concern that mining, petroleum and pipelining George Buckland $486 million in 1998-99. This represented over 70 per cent of the total ¥ Bass Strait has been Australia’s major oil the brown coal based electricity generators to is well regulated and conducted in a manner Guy Hamilton Manager Minerals and Petroleum decrease in all exploration for the year. and gas province and has provided natural play their part in meeting the greenhouse chal- that minimises the impact on the environment Regional Manager Bendigo Tenements Trend figures show June quarter 1999 mineral exploration spending was gas for Victoria’s domestic use and industry. lenge. The government will work closely with and the amenity of local residents. Telephone: (03) 5444 6697 Telephone: (03) 9412 4778 10 per cent lower than the March quarter and 26 per cent lower than the Much of our secondary industry is based on these mineral and petroleum industries to It is critical to the future prospects of these GEOLOGICAL SURVEY VICTORIA: corresponding 1998 June quarter. Bass Strait gas as was so graphically illus- encourage exploration and facilitate develop- INFORMATION: industries that the community has a high level Fax: (03) 9412 5155 Janne Bonnett On these figures, national Australia’s quarterly mineral exploration trated during the Longford incident last year. ment opportunities. of confidence in: Manager Library expenditure has fallen by 40 per cent since the peak of $302 million Tom Dickson Telephone: (03) 9412 5022 reached in the June quarter of 1997. ¥ The processes by which it can contribute to Manager Geological Survey Victoria Fax: (03) 9412 5157 Drilling activity was also at its lowest annual reported figure since 1992- project approvals and monitoring, Telephone: (03) 9412 5035 93, with 8.1 million metres drilled for exploration to the year ended June ¥ Government as a regulator, and Chandri Corray 1999. This was 28 per cent down on the previous year. Similarly, petro- Alan Willocks The great contribution that the mining Manager Marketing Development leum exploration was also down 12 per cent on the previous year, with ¥ Industry as a responsible corporate citizen. Manager - Geophysics Telephone: (03) 9637 8532 reported expenditure of $868 million for 1998-99. I believe we all have some more work to do in Telephone: (03) 9412 5131 Fax: (03) 9637 8118 The Victorian figures show that exploration did fall sharply in the June and petroleum industries have already made this area. Peter O’Shea quarter, in line with the rest of the country. Spending in the June quarter Manager Geological Mapping was $6.7 million, compared with $10.3 million in the March quarter. I am looking forward with immense enthusi- Telephone: (03) 9412 5093 However on the trend estimates, the March quarter expenditure level of asm to working in this portfolio and to develop- $9.4 million fell to only $8.4 million in the June quarter, only the second to Victoria must be acknowledged. ing a close working relationship with represen- Roger Buckley consecutive quarter of falling expenditure. tatives of the minerals and petroleum industries. Manager Mineral Resources Nationally, the trend estimate for mineral exploration expenditure fell by Telephone: (03) 9412 5025 10 per cent in the June quarter, the eighth consecutive quarter to show a decline. Between the March and June 1999 quarters, the trend estimate fell What then for the future of minerals and The role that government plays is very impor- PETROLEUM DEVELOPMENT: $21 million to $181 million and the June quarter estimate was 40 per cent petroleum in Victoria? tant to the future of both industries - govern- Fax: (03) 9412 5156 ment sets the general investment climate, pro- lower than the peak of $302 million reached in the June quarter 1997, The Government recognises the contribution showing that Victorian exploration activity has remained relatively strong. Kathy Hill these industries currently make to the state vides regional geological data for explorers Manager Petroleum Developments The trend estimate for mineral exploration expenditure fell for four states. and the potential for them to make a greater and regulates the industries. Telephone: (03) 9637 8530 South Australia was unchanged and Queensland and the Northern contribution in the future. Territory reported small increases. The most significant fall was in One of the challenges which we in govern- Candy Broad Western Australia where the trend estimate fell by 17 per cent. Much of the benefit that flows from mineral ment and you in industry face is community Minister for Energy and Resources

4 5 REGULAR FEATURE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST:

4 5 EXPLORATION EXPLORATION

THE COMPANIES Otway Basin attracts new players Woodside Energy Ltd Woodside is Australia’s largest independent oil and gas company and operator of Australia’s largest resource development, the North West Shelf Gas Venture, at Karratha in Western Australia. Woodside’s business is major new phase in the exploration based on liquefied natural gas (LNG), natural of Victoria’s offshore petroleum gas, condensate, liquid petroleum gases (LPG) basins could add substantial new and crude oil. A reserves to the state’s already The company has interests in Australia, Papua impressive list of oil and gas discoveries. New Guinea, West Africa and Cambodia. A multi-million dollar effort to locate new commercial gas reserves in the offshore Boral Energy Resources Limited Otway Basin region, south of Port Campbell Boral is the only integrated explorer, producer in the state’s west, will start before the end of and distributor of natural gas in Australia and the year. A joint venture of Woodside Energy, has interests in the Victorian natural gas retail- Boral Energy and CalEnergy expects to begin er Energy 21. Boral has also entered the exploring after being awarded a six-year national electricity market and is becoming a exploration lease over permit area Vic/P43, significant electricity generator, trader and previously designated V98-2, a 2960 square retailer. km area off Victoria’s rugged shipwreck coast. The company is an established gas explorer in Over the next three years, the companies are the Otway Basin and operates producing facil- committed to running a significant seismic ities in Queensland, South Australia, Victoria program, evaluating existing data and drilling and Western Australia and owns between 13% at least one wildcat well offshore. and 17% of oil and gas reserves in the Cooper- The Otway Exploration Manager for Woodside Eromanga Basins. Energy Ltd, Dr Mark Shuster, said plans were underway for a 71.5 metre seismic vessel, the CalEnergy Gas (UK) Limited Western Pride (pictured below), to begin a four- CalEnergy is a London-based oil and gas week program late this year. The seismic sur- exploration and production company and a vey will cover 800 sq km of the permit area. the next six to 12 months to create three- ject, the North West Shelf gas venture in subsidiary of Northern Electric and Mid- dimensional computer images of the earth’s Western Australia - has been contracted by the To record seismic data compressed air is American Energy Holdings Company. layers and assist in the search for potential oil joint venture to manage the exploration phase. released from underwater cylindrical ‘airguns’ Northern Electric is one of the United and gas reservoirs. trailed behind the seismic vessel. This gener- The joint venturer’s winning work program Kingdom’s largest utilities and Mid-American ates an acoustic wave which is reflected from Sophisticated computer manipulation of the tender includes: is a large mid-western utilities company. rock layers beneath the seabed and is received data can identify potential oil and gas reser- Year 1: 200 sq km of 3D seismic A recent entrant to Australian oil and gas by pressure sensitive hydrophones also towed voirs and direct explorers where best to drill 500 km of 2D seismic exploration, the company has a minority inter- within long (up to 5km) cables behind the ship. their wells. Dr Shuster said the offshore 5000 km of 2D seismic reprocessing est in the Yolla gas field off northern Tasmania. The time taken for the echo to return to the Otway Basin was prospective for gas. The surface of the sea provides scientists with an Vic/P43 permit area lies due south of the BHP Data evaluation The highly prospective Otway Basin will be accurate picture of the sub-sea rock forma- owned Minerva gas field and east of the Year 2: Data evaluation explored in a new program of offshore drilling. LaBella gas discovery, also made by BHP. tions. Data collected will be processed over Year 3: One well “Our companies have identified two areas Data evaluation where we might find gas and we are now planning to better define the geology of the area Years 4-6: One well JUNIOR AIMS TO STRIKE GAS TOO! before deciding where we might drill a well,” Total value of the primary work program Dr Shuster said. (years 1 to 3) is about $15 million, with the Perth-based petroleum exploration junior, tors generates new markets. Strike Oil now and the obvious market benefits that such a Dr Shuster said the joint venture was briefing secondary work program in years 4 to 6 cost- Strike Oil NL, will also join the explo- holds a suite of assets all strategically located location provides, investors have been federal, state and local governments, fishing ing another $15.5 million. A ration push in the offshore Otway Basin to access the rapidly developing east coast gas extremely interested in bidding for the two organisations, conservation groups, shipping The joint venture is proposing to begin seis- after winning the exploration permit V98-4, markets. new licences,” he said. authorities, community groups, and members mic acquisition from December 1999 or adjacent to the Boral operated V98-2, in the Federal Resources Minister, Senator Nick Strike Oil has proposed a guaranteed work of parliament to ensure people were aware of January 2000 with the program expected to July acreage release. Minchin, said the V98-2 and V98-4 permits program for the first three years of a 3D seis- the seismic program. take at least 30 days. The V98-4 permit is adjacent to the Minerva offered in the July round, offered new poten- mic program over 108 square kilometres, geo- The joint venturers share a common goal of and LaBella gas discoveries and holds sig- tial for discoveries. logical and geophysical and seismic reprocess- participating in the eastern Australia gas mar- FOR MORE INFORMATION CONTACT: nificant potential for new commercial gas “While there has been some previous explo- ing work valued at $1.8 million. discoveries. ket and of bringing increased competition and Rob Millhouse ration of the area, they remain under- The company has also proposed a secondary gas supply security to Victoria. Boral and Public Affairs Manager, Woodside Energy Ltd. The deregulation of the Australian gas indus- explored and of significant potential,” program comprising a further 100 sq km of 3D CalEnergy each has a 25% interest in the pro- try has created new demand for natural gas as Senator Minchin said. “Because of the explo- seismic, comprehensive data review and two Toll Free: 1800678151 ject and Woodside has a 50% stake. Woodside competition between suppliers and distribu- ration area’s relative proximity to Melbourne wells estimated to cost $18 million. W: (08)9348 4281 Mobile (0419) 588 166 - operator of Australia’s largest resource pro-

6 7 EXPLORATION EXPLORATION

6 7 SPECIAL FEATURE Underground storage boosts gas reserves

he security of Victoria’s long-term The new gas processing plant also built at the equivalent to about 14 per cent of peak gas supply has been dramatically site removes condensate, water and carbon Victorian winter demand. Victoria’s average improved with the completion of dioxide from the natural gas stream, although winter gas demand is equivalent to 890 Tj a T three major new pipeline and the condensate and carbon dioxide will day, but it peaks at up to 1,100 Tj a day. storage projects, worth more than $250 decline over time as the native gas is replaced Extra compression facilities could lift capaci- million, aimed at diversifying the State’s by injected gas. ty to 230 Tj a day and ultimately up to 400 Tj energy supplies. Mr Shapard said that a team of up to 400 a day if required. This upgrade may be The latest project to come on line is the worked virtually around the clock to complete required if BHP develops its Minerva gas Western Underground Gas Storage (WUGS) the processing plant in time for winter 1999. field, which lies 10 km offshore from Port facility near Port Campbell. Built at a cost of “WUGS project engineers and managers Campbell. BHP is expected to make its final more than $100 million, WUGS now provides worked closely with the DNRE and the decision early next year. vital new gas storage reserves for Victoria Environment Protection Agency to ensure a Another recently completed project - the which can be used at short notice in the event comprehensive environmental management upgrading of the ‘interconnect’ gas pipeline of any interruption to Bass Strait supplies. program was in place,” he added. from NSW to Victoria - has also added to the TXU Australia Pty Ltd (formerly Texas The WUGS project has been a dream for certainty of Victorian gas supplies. Costing a Utilities Australia), a subsidiary of the giant Victoria’s gas industry for many years. $74 million, the pipeline capacity was lifted US gas and electricity group, has used the par- However, it was the Longford gas plant explo- from 35 Tj a day to 92 Tj a day. tially depleted gas field near Port Campbell to sion and subsequent gas shortage in 1998 Together, the two pipelines (Southwest and create the underground gas storage project. which, combined with other factors, drew the Interconnect) now have the capacity to attention to the need for accelerated develop- Originally conceived by the former Gas and deliver around 25 per cent of Victoria’s daily ment of Victoria’s gas storage infrastructure. Fuel Corporation before its break-up and sale, winter gas demand in the event of a complete the project draws gas produced from Bass One key piece of infrastructure was the con- shutdown of supplies from the Esso plant at Strait fields, and potentially other sources, and struction of the $83m Southwest Gas Pipeline Longford. pumps it into the partially depleted reservoir which runs from Port Campbell to Lara near And there is still more to come! Duke Energy of the Iona field, about 8km north of Port Geelong and links the gas fields and pipeline has started construction on the Eastern Gas Campbell. Nearby fields at Wallaby Creek, infrastructure of western Victoria to the main Pipeline which will deliver Bass Strait gas North Paarratte and Grumby will be consid- gas pipeline network in the Melbourne area from Longford into the Sydney market. ered for future storage developments. and the fields of Bass Strait. Duke Energy hopes to have the pipeline com- The gas is pumped underground during the As reported in the last issue of Discovery, completed by September next year. The 975 km low-demand summer months so it is available missioning of the SouthWest gas pipeline start- gas pipeline, costing $450 million, is being during peak demand periods in the winter. ed during May. The pipeline can carry 130 ter- constructed in five major sections involving ajoules a day of natural gas in either direction, three crews totalling about 600 workers. Speaking at the official opening of the project in August, TXU Australia Chief Executive, Bob Shapard, said that the WUGS project was an additional solution to cater for peak natural gas supply for Victorians. “This unique project is Australia’s first commercial underground natural gas storage facility,” he said. “It will feed gas into the Victorian network during high demand periods and will inject gas back into the underground reservoir for storage during lower demand periods.” The WUGS project involved drilling three new injection and withdrawal wells, reperfo- rating two existing wells and drilling two observation wells on the site.

Left: The Southwest gas pipeline terminates at Lara near Geelong where a network of high pressure lines emerge to feed into the main metropolitan gas network. Right: The Western Underground Gas Storage project is a vital link in the strategy to improve the security of Victoria’s gas supply.

9 SPECIAL FEATURE Underground storage boosts gas reserves

9 COMPANY NEWS SAFETY Santos starts Victorian gas production Victorian miners ready for anything

to the Cooper Basin gas which Santos sells to Tracey lewis-Jones in stretcher being lowered by AGL Ltd which is supplied to Victoria through (L-R)- Troy Cox, Brad Evans, Liam McMahon and the Interconnect Pipeline which runs into John Kerr from the winning Stawell team. Victoria at Albury from Wagga Wagga in NSW. events the Stawell team won the overall prize The Interconnect Pipeline has recently been for the second year in succession. upgraded from 35 to 92 terajoules a day to provide additional flexibility of gas supply to The teams were treated to a civic reception at Victoria. The Mylor and Fenton Creek fields the Stawell Town Hall after the event hosted by are 100 per cent owned by Santos and located Stawell Mayor, Karen Douglas. A presentation near Heytesbury, 160 km south west of dinner, hosted by explosives manufacturer, Melbourne, in permit PEP 108. Orica, was also held in Stawell. At the dinner a special award was made to Noel Justice, one of A gas processing facility at the field was built the founders of the modern mine safety com- at a cost of $9 million to ensure all gas pro- petitions, honoring his efforts to improve the duction meets strict specifications. standards of mine safety and rescue teams. Left: New gas processing facilities at Santos’ Director of the VCM, Chris Fraser, said he Mylor/Fenton Creek field at Heytesbury. was pleased with the commitment of the mine safety team members and their sponsoring Below: The gas is cleaned and dewatered before passing into the main gas pipeline network. companies. The Victorian mine safety competition was now regarded as one of the country’s leading events, he added. antos Ltd has become a new tively undeveloped Queensland and South ictorian miners have proved they can Kambalda and Yilgarn Star mines in WA, the This is the seventh year of fire and mine safety entrant to Victoria’s gas industry Australian markets. meet any challenge with a team from Hellyer and Renison mines in Tasmania and a competitions in Victoria. The event began at with output from its Mylor and the Stawell Gold Mine winning the team from the Bendigo Gold Mines project in Santos recently signed a gas sales contract from Wonthaggi in 1993, sparked by an incident dur- Fenton Creek fields in south-west Victorian Mines rescue competition Victoria in addition to the Stawell team. the Mylor and Fenton Creek fields with the V ing a rescue exercise which had been held by the Victoria’s Otway Basin. for the second time running. S Victorian Government owned Gascor for the Winners in each individual category were: local DisPlan (Disaster Plan) organisation. That Gas from the fields is already flowing to supply of 10.7 petajoules of gas over four years The 1999 competition, hosted by the Victorian Search and Rescue - Stawell incident highlighted the need for a specialist Victorian markets as well as to consumers in with the contract expiring at the end of 2003. Chamber of Mines and held at the Stawell First Aid - Northparkes mine rescue team. Teams now compete from all the metropolitan areas of Melbourne through “While only involving a relatively small quanti- gold mine, gave the local team a home ground Rope Rescue - Kambalda over Australia and are called on for their exper- the recently commissioned South-West Gas ty of gas, this contract will provide additional advantage but tough competition from Fire Fighting - Kambalda tise in a wide range of disaster scenarios. Pipeline. flexibility for Victorian gas distributors in meet- Western Australia, Tasmania and New South Theory - Kambalda In 1997, all mines rescue teams and personnel Deregulation of the gas industry nationally ing peak winter demand.” Santos Executive Wales meant the win was no pushover. Breathing Apparatus (practical) - Yilgarn Star were placed on standby to assist with rescuing means that Victorian gas producers can now General Manager, John McArdle said. Eight teams competed with teams from the Skills - Yilgarn Star people trapped in the Thredbo landslide disas- offer gas to customers in NSW and the rela- He added that the Gascor contract was in addition Cadia and Northparkes mines in NSW, the Despite winning only one of the individual ter in NSW.

Rio Tinto Ltd has now relinquished its remain- Mineral sands tenders attract many bidders ing mineral sands acreage in Victoria covering the WIM 150 and WIM 100 mineral sands deposits. These areas will also be put out to tender, maintaining the steady and rapidly xploration companies have snapped MPI Gold Pty Ltd, operator of the Stawell Tinto and are near to the massive WIM 150 growing interest in mineral sands exploration up six of the seven highly prospective gold mine and its partner Pittston Mineral deposit. in Victoria. The vacant Block 4 surrounding mineral sands exploration acreage Ventures of Australia Pty Ltd. Blocks 6 and 7 Rio Tinto relinquished the ground when it was the WIM 150 discovery, which was not award- E areas in the Murray Basin region were awarded to GDM Resources Pty Ltd. unable to find an economically viable method ed in the first tender, will also be included in around Horsham in Victoria’s north west. Exploration licences over the areas have been of processing the fine grained ilmenite, rutile the new package of exploration acreage. Blocks 1 and 2 were awarded to Basin granted or are in the process of being granted and zircon content of the discovery. Some other prospective areas of the Basin, fur- WIM to the successful tenderers. 150 Minerals NL, which already holds a large area Now the exploration focus in the area has ther to the north in the Mallee, have been relin- of ground in the Murray Basin and has report- The areas, which were opened for tender ear- quished recently and exempted from further moved on to the discovery of smaller-sized, WIM ed a number of potentially large deposits. lier this year, attracted a large number of bid- but coarse-grained mineral sands deposits, licence application. 100 Block 3 went to a joint venture between ders, reflecting the demand for prime explo- with a number of discoveries already made in It also planned to put these areas out to tender Imperial Mining (Australia) NL and Probo ration areas in the region. ‘strand lines’ adjacent to ancient sand dunes for exploration with all the new tenders to be Mining Pty Ltd while block 5 was awarded to The blocks cover areas previously held by Rio along the beaches of the former inland sea. initiated in early 2000.

10 11 COMPANY NEWS SAFETY Santos starts Victorian gas production Victorian miners ready for anything

10 11 REGULAR FEATURE REGULAR FEATURE Industry News Industry News

tonnages of the high grade gold ore which Refilling the pit would eliminate the need for and BHP in which Sedimentary will acquire assays yet to be completed, the Ironbark system BENDIGO DECLINE originally made Bendigo famous. additional ground and allow rapid rehabilita- three exploration tenements near Lonarch in produced a large central reef system with a com- AHEAD OF SCHEDULE Bendigo Mining Managing Director, Doug tion of the site once the pit was refilled. Western Victoria. prehensive spur system adjacent. Buerger, said progress was ahead of schedule In exchange for a royalty on any future gold Both targets could easily be accessed from the Better than expected progress at the $A35 mil- and under budget at this stage but he expected production, Sedimentary will take over opera- existing decline into the Poverty Reef mine. In lion Swan decline project in Bendigo has THERE’S MOVEMENT IN THE VALLEY to enter broken ground and encounter greater tion of the permits which adjoin the compa- the September quarter, the Nick o’ Time and taken the fledgling mine to a vertical depth of Golden Triangle Resources, the Victorian water flows once the tunnel reached the new ny’s existing tenement area EL 3838. Bonanza shoots in the Poverty Reef mine pro- 300 metres as the tunnel heads towards its resources company working towards a com- Chum line of reef in November. Salty water duced 4,585 ounces from just 3,600 tonnes of estimated target of 10 million ounces of new mercial magnesium metal project, has joined Managing Director, Rob Devereux, said the from the project, extracted at the rate of 3.5 ore. That compares with the June quarter in gold resources. Hazelwood power and HRL Technology Pty permits were prospective for very large sedi- megalitres a day, is evaporated using mist ment- hosted gold deposits. which 3,837 ounces were generated. In the year The project, operated by Bendigo Mining NL, Ltd to further develop the light metal concept. sprays and storage ponds. to June 30 Reef Mining produced 19,187 ounces. is excavating a 4.5 kilometre long decline GTR will exchange information with Since resuming production three years ago, the ramp down to 700 metres vertical depth to Hazelwood Power and the HRL group to WEMEN MINERAL SAND mine has produced 42,000 ounces in total. gain access to ore reserves left behind by early RISING GOLD PRICE LIFTS HOPES explore potential synergies between The Tarnagulla mine will now be sold by the Perseverance Corporation Ltd has reactivated Hazelwood’s flyash to magnesium project and PROJECT DELAYED miners a century ago. Hudson group after taking control of the com- plans for its bacterial oxidation of its large sul- GTR’s magnesium pilot plant project. The multi-million dollar development of the Bendigo, one of the richest gold reef systems pany. Former director, Dick Sandner, has been phide gold ore reserves at its Fosterville gold found anywhere in the world, was mined Hazelwood power is exploring the possibility Wemen mineral sands project in the Murray retained by the Hudson group to find a buyer intensively last century and even up to the project in central Victoria. of producing magnesium metal from flyash Basin near Robinvale in the Wimmera region for the project which is to be sold as a going of north western Victoria has been deferred Kouroush Mehin, Acting Manager of MPV’s 1950’s but rising water and limited pumping The recent rise in the gold price to levels produced as a result of burning brown coal for concern. Hudson offered seven cents a share Petroleum Resources unit, has added another feather technology finally killed off most of the around $US300 an ounce has relieved pres- power generation at the LaTrobe Valley power until next year. cash for Reef mining in a takeover worth to his cap by completing his Doctorate in Philosophy mines. Now technology and modern geology sure on all gold producers allowing companies station. Mine owner, RZM Corporation, announced $5.25 million. in Petroleum Geology at RMIT University. have combined to create a rebirth of the to again seek finance for new projects. Golden Triangle has moved away from a recently that a plan by its joint venture partner, Bendigo field. The Fosterville sulphides project was deferred development of its Tasmanian magnesite Western Metals NL, to sell its 30 per cent RENEWABLE ENERGY SOLUTIONS age of 99.3 per cent of all commercial trade More than a decade ago WMC Ltd gave the while gold prices hit 20-year lows at levels deposit in favor of sourcing magnesium ore stake in the Wemen project had caused the being arranged on 30-day terms, the overall Victoria will host one of Australia’s biggest rejuvenation of the Bendigo field its best below $US250 an ounce. from its Woodsreef mine tailings dumps in delay. The sale of the stake, expected to be payment time during the 16 months to last acquired by RZM, is likely to be completed by ever renewable energy displays and confer- chance when the company acquired virtually Managing Director, John Kelly, said NSW. April was 65.3 days — 35.3 days beyond ences starting with a fair to be held at Hanging every mining and exploration lease over the the end of the year. terms. Mining and oil exploration companies Perseverance had continued to produce gold Serpentinite tailings left over from the mining Rock, near Mt Macedon in November. The entire Bendigo field, allowing a methodical, RZM, a subsidiary of the Japanese trading were paying their debts even more slowly and from its oxide gold ore reserves during the are high in magnesium content and are easily Renewable Energy and Sustainable Living field-wide approach to new exploration. But house, Nissho Iwai, said a development deci- average payments in this sector could soon hit gold price slump. The company is aiming for extracted and processed as a feedstock. Fair, organised by the Australian Going Solar WMC eventually walked away, ultimately sion for the Wemen project was now expected 70 days, D&B said. total gold output in the current year of 35,000 group and the New Zealand Solar Energy leaving the field in the hands of Bendigo in January. Wemen is expected to produce up In a warning to creditors, particularly start up ounces. The company is currently seeking per- SEDIMENTARY STILL PRODUCING Society, will be held on the weekend of Mining. mits to develop two new oxide pits outside the to 500,000 tonnes of rutile, zircon and companies looking to provide credit, D&B Sedimentary Holdings NL has produced 3,618 ilmenite a year, generating revenues of over November 27/28. Supported by the late Sir James Goldsmith, present mining lease. warned that the time taken by Australian com- ounces of gold from its alluvial operations at $20 million annually. It will be followed by the Solar 99 conference, Bendigo Mining has raised sufficient capital In another move Perseverance is planning to panies to pay their debts was ‘stretching out to the Wildebeest project near Avoca in the year the annual conference of the Australian and well over twice the terms agreed upon, and to reach its primary target of the Deborah and drop an application for permits to build a tailings to June 30. New Zealand Solar Energy Society, to be held looked set to go even higher.’ Sheepshead lines of reef by mid-2001. dam outside the existing mining lease in favor of REEF LOCATES NEW TARGETS In the June quarter, the company produced in the historic Geelong Woolstores campus of From there it hopes drilling will identify large refilling the original Fosterville open pit. Gold miner, Reef Mining NL, has found sev- Deakin University. 1,006 ounces from 70,653 bank cubic metres eral potential gold ore bodies on its Tarnagulla More than 6,000 people are expected to attend CORRECTION of mined material at an average grade of just mining lease near Bendigo through its latest the fair which will feature working displays of In the August issue of Discovery, we reported 0.44 grams of gold per bcm at an average cash exploration drilling program. cost per ounce of $375. solar, wind and micro-hydro technologies for that GPU GasNet Pty Ltd, formerly the The company, recently taken over by Sydney- power generation along with straw bale, earth Victorian Government owned Transmission Cash operating costs in the year came to $A370 based hardware seller and property developer, and timber building and sustainable agricul- Pipelines of Australia, announced during May an ounce. But operations could expand in Hudson Group, drilled a series of holes on tar- ture. The entire sitewill be powered by grid- that the south-west gas pipeline was fully pres- Victoria through a deal between Sedimentary gets adjacent to the existing mine. interactive solar generators. surised and guaranteed continuing gas supplies The first holes, on the Watts Reef system, 4.5 to communities throughout western Victoria. A group of 21 senior Chinese coal mining km north of the mine, hit a rich reef system representatives visited Australia recently for a SLOW PAYERS GPU GasNet did not announce that the com- three-week course focused on change in all key returning 0.3 metre intervals grading up to 14 missioning of the south-west gas pipeline facets of mine management and policy grams per tonne and containing visible gold. Another indicator of the downturn in the guaranteed continuing gas supplies. A compa- development, including special training in safety At the Specimen Reef, 3.5 km north of the mine, resources sector comes from research released ny spokesman has stated ...“Whilst the com- and risk management conducted by leading OHS similar width intersections were found grading recently by the credit rating group Dun and missioning of the south west gas pipeline advisers, Zeal Consulting. Pictured are two of the Bradstreet. Chinese representatives with Zeal’s Managing up to 31 g/t, also with visible gold. To the south, increases the diversity of gas sources to gas Director Carl Luttig (right) and Zeal’s Chairman at the Ironbark and Potato Patch targets, a large The latest D&B study of its corporate credit users, it does not guarantee supply of gas to Dick Carter, who is a past president of AIMM. gold mineralised system was located. With records showed that, despite a national aver- gas users”. The error was a reporting error.

12 13 REGULAR FEATURE REGULAR FEATURE Industry News Industry News

12 13 VICTORIAN RESOURCES VICTORIAN RESOURCES Victoria’s mineral resources Mildura

EXPLORATION STATUS MAJOR MINES/DEVELOPMENTS MAJOR EXPLORATION PROJECTS O Area available for exploration application GOLD 23 General area of major P Areas becoming available for exploration A Stawell Gold Mines exploration project B Sedimentary Holdings (Please see moratorium list for available dates) NO COMPANY C Reef Mining 1 Alcaston U Area currently under exploration D Goldminco 2 Alliance (licence tenure or application) E Ballarat Goldfields 3 Alliance 23 46 F Alliance Gold Area unavailable for exploration 4 Ballarat Cons Swan Hill G Bendigo Mining 47 5 Centaur (National Parks etc) H Tech-Sol Resources Pty Ltd 6 Rio Tinto Area under exemption J Perseverance Exploration 7 Crest - Goldminco K Australian Gold Devel. 8 Duketon Gold L Perseverance Mining 9 Golden Heritage M Duketon Goldfields 10 Golden Triangle N Mount Conqueror Minerals 11 Golden Triangle 12 Highlake Res NON-METALLIC MINERALS 13 Highlake Res O Victorian Gypsum 14 Highlake Res - Brady 19 P RZM & Aberfoyle Echuca 15 Intrepid Q Rio Tinto 16 Metex R Kaolin Aust Shepparton 17 Mt Wellington 11 Wangaratta T S Osterfield 18 North - Rio Tinto Expl TACI 19 Osprey Gold 31 U RGC Mineral Sands 6 20 Osprey Gold 10 Horsham 49 41 BROWN COAL 21 Perseverance M C J L Bendigo 33 S 22 Platsearch - Hume Q 50 40 G 7 23 RGC 22 K M Benambra 24 St Barbara - 48 F Minico & Melanti 34 44 A Mansfield 25 Sedimentary Stawell 35 32 25 12 8 26 Vic Gold - Mines & Res 38 39 21 27 Ararat B 26 27 Zephyr Min 3 5 2 36 45 28 Continent - Range 28 42 9 37 29 29 Gawler Gold 14 30 Goldminco 30 Ballarat 17 E 31 Goldminco H N Wood's Point 4 D 13 32 Goldminco R 24 20 1 18 MELBOURNE Orbost 33 Goldminco Hamilton 16 Maddingley 34 Alliance 15 35 Fortuna Werribee Bairnsdale Walhalla Lakes 36 Golden Heritage Entrance 37 Hardrock Exploration 38 Highlake Res Geelong Yallourn 39 Highlake Res 40 Highlake Res Alcoa Hazelwood Loy Yang Portland 41 Perseverance - New H Warrnambool 42 Range River 43 Range River 44 Reef Mining 43 45 Range River (Flowerdale) 46 Basin Minerals (B-Swan Hill) 47 Basin Minerals (Culgoa) 48 Basin Minerals (Douglas) 49 Reef Mining 50 Reef Mining

14 15 VICTORIAN RESOURCES VICTORIAN RESOURCES Victoria’s mineral resources Mildura

14 15 LICENCE REVIEW REGULAR FEATURE Mineral Licences Victorian pipelines and permits July to September 1999 At October 1999

EXPLORATION LICENCES GRANTED

TITLE NO. STATUS EVENT MAP PRIMARY OWNER EVENT DATE EXPIRY DATE MILDURA Production Licences EL 4382 CANAM GRANT DUNOLLY REEF MINING NL 23/07/99 12/08/99 Retention Leases EL 4299 CURRENT GRANT ARARAT ADAP PTY LTD 12/08/99 12/08/01 Current Permits EL 4413 CURRENT GRANT DUNOLLY REEF MINING NL 18/08/99 18/08/01 0 20 40 60 80 100 EL 4423 CURRENT GRANT RUPANYUP MPI GOLD PTY LTD 23/09/99 22/09/01 Acreage Release Km Recommended 1999 EL 4421 CURRENT GRANT BALMORAL BASIN MINERALS NL 23/09/99 22/09/01 Gas Pipeline EL 4422 CURRENT GRANT NATIMUK BASIN MINERALS NL 23/09/199 22/09/01 SWAN HILL Oil & Other Pipeline EL 4420 CURRENT GRANT KERANG NORTHERN PROPERTY DEVELOPERS PTY LTD 23/09/99 22/09/01 Proposed Pipeline EL 4419 CURRENT GRANT DUNOLLY TALAGER PTY LTD 30/09/99 29/09/01 Under Construction Gas Field Oil Field EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED MURRAY BASIN COBRAM RUTHERGLEN ECHUCA TITLE NO. STATUS MAP PRIMARY OWNER EVENT DATE EXPIRY DATE CHILTERN WODONGA

SHEPPARTON WANGARATTA EL 4117 EXPIRED HAMILTON ANTIMONY GOLD CORPORATION NL 15/08/99 15/08/99 BENALLA EL 4174 EXPIRED COLERAINE ANTIMONY GOLD CORPORATION NL 11/09/99 11/09/99 EL 4023 EXPIRED CRESWICK JASON MINING NL 22/09/99 22/09/99 HORSHAM BENDIGO EUROA EL 4034 SURR BACCHUS MARSH PERSEVERANCE EXPLORATION PTY LTD 21/07/99 21/07/99 CARISBROOK SEYMOUR EL 3171 SURR BACCHUS MARSH DAVNET LIMITED 12/08/99 12/08/99 KYNETON EL 3191 SURR CRESWICK PIONEER GOLD MINING CORPORATION PTY LTD 12/08/99 12/08/99 ARARAT EL 3918 SURR EDENHOPE DELTA GOLD EXPLORATION PTY LTD 12/08/99 12/08/99 WALLAN EL 3827 SURR CANN ASHTON MINING LIMITED 12/08/99 12/08/99 BALLARAT GIPPSLAND BASIN MELBOURNE EL 3826 SURR CANN ASHTON MINING LIMITED 12/08/99 12/08/99 HAMILTON ORBOST BAIRNSD ALE EL 3581 SURR BACCHUS MARSH DAVNET LIMITED 12/08/99 12/08/99 LAKES ENTRANCE VIC/O99(2) VIC/O99(1) LARA MAFFRA EL 3129 SURR YEA AUSMINDE HOLDINGS PTY LTD 26/08/99 26/08/99 OTWAY BASIN GEELONG LONGFORD SALE EL 4324 SURR GRAMPIANS YARDARINO MINING NL 26/08/99 26/08/99 MOE 200m COBDEN COLAC EL 4325 SURR BALMORAL YARDARINO MINING NL 26/08/99 26/08/99 PORTLAND WARRNAMBOOL EL 3604 SURR BENAMBRA TALLANGALOOK PTY LTD 07/09/99 07/09/99 EL 4196 SURR ARARAT P S & G F FORWOOD PTY LTD 17/09/99 17/09/99 200 m EL 4261 SURR ST ARNAUD FORRESTANIA GOLD NL 23/09/99 23/09/99 V99-1 V99-2 EL 3944 SURR RUPANYUP FORRESTANIA GOLD NL 23/09/99 23/09/99 EL 4230 SURR BENDIGO HARVEST EXPLORATION PTY LTD 30/09/99 30/09/99 BASS BASIN

MINING LICENCES GRANTED

TITLE NO. STATUS EVENT MAP PRIMARY OWNER EVENT DATE EXPIRY DATE You’ll find a world of information on Victorian mining, geology and MIN 5268 CURRENT GRANT KERANG MR NEIL S HAMPTON 21/07/99 21/07/09 MIN 5273 CURRENT GRANT TRARALGON MR KENNETH J UNTHANK 20/09/99 19/09/09 petroleum in the Department of Natural Resources’ Minerals and Petroleum Reference Centre. Although focussed to serve members the of the mining industry, the MPRC is open to the public from 8.30am MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED WORLD to 5pm, Monday to Friday. It is conveniently located next to the TITLE NO. STATUS MAP PRIMARY OWNER EVENT DATE EXPIRY DATE is yours Minerals Business Centre. MIN 4841 EXPIRED STRATFORD MILTON ROBERTSON 06/07/99 06/07/99 MIN 4805 EXPIRED CASTLEMAINE SADDLEBACK ENTERPRISES 01/08/99 01/08/99 MIN 4814 SURR BEAUFORT SEDIMENTARY HOLDINGS NL 28/07/99 28/07/99 special collections include: MIN 4917 SURR DUNOLLY GARY BUCKLAND 28/07/99 28/07/99 • Expired tenement reports on microfiche (and hard copy) MIN 4974 SURR DUNOLLY DENNIS C O’SULLIVAN 12/08/99 12/08/99 • 5000+ Geological Survey of Victoria Unpublished Reports MIN 4676 SURR WEDDERBURN NICOLE D COOPER 26/08/99 26/08/99 • Departmental publications (old Mines Department records and reports dating from 1851) • MIN 4675 SURR WEDDERBURN SUSAN G WRIGHT 26/08/99 26/08/99 Victorian published geological maps, both current and historical • Underground mine plans on microfiche MIN 4674 SURR WEDDERBURN JOSEPHINE COOPER 26/08/99 26/08/99 • 1600+ B&W historical Victorian mining photographs MIN 4673 SURR WEDDERBURN ANN A SHAW 26/08/99 26/08/99 MIN 4884 SURR DUNOLLY MAURICE T NEALE 23/09/99 23/09/99 The MPRC is now located with the Minerals Business Centre on the 8th floor, MIN 5179 SURR DUNOLLY GOLDEN SANDS DEVELOPMENT PTY LTD 30/09/99 30/09/99 Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne. ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED Phone: (03) 9412 5145. Fax: (03) 9412 5157. E-mail:[email protected]

16 17 LICENCE REVIEW REGULAR FEATURE Mineral Licences Victorian pipelines and permits July to September 1999 At October 1999

EXPLORATION LICENCES GRANTED

MINING LICENCES GRANTED

16 17 REGULAR FEATURE MINING WEEK REPORT MINING WEEK REPORT

The opportunities for the mining industry to work in the smallest mainland state with the most sophisticated and intensely developed New data will boost exploration infrastructure were showcased in the annual Victorian mining week activities in the first week of November. A series of seminars, conferences, tours, displays and the annual ictorian Mining Week, held early in Airbourne Geophysics mining week dinner in Melbourne filled an November, was marked by the Geological Mapping active week aimed at promoting Victoria and eleventh release of new geological EL Histories its attractions to the mining industry. data for the state’s southern and V Geochemistry eastern areas. Gravity The release contains a host of new data with hile gold has been the backbone of plenty to encourage petroleum and mineral the Victorian mining industry and explorers to remain active in Victoria. provided the financial base upon Among the wealth of new data for the explo- W which the state prospered for the ration industry are two new airborne geophys- past century, new minerals have taken ical surveys, new geological maps, explo- over from gold with interest now centred ration histories, geochemistry, gravity data on the heavy mineral sands industry. and a review of the geophysical signature of base metal deposits in Victoria. Exploration for and discoveries of rich deposits of rutile, zircon and ilmenite in the The largest of the airborne surveys covers all Murray Basin in Victoria’s north west corner, of the onshore sections of the Otway Basin have underpinned Victorian exploration while and will provide a valuable data set for region- gold prices weakened dramatically over the al structural interpretation by both petroleum past two years. and mineral explorers. The latest Australian Bureau of Statistics fig- It also extends onto basement areas around the ures amply demonstrate the importance of the Grampians and the Brisbane Ranges north of mineral sands industry to the state, which has Geelong. The quality of the data is superb and in the magnetics, extensions of the greenstone belts are clearly visible under the basalt plains. The basalt areas are clearly visible as are all the All that glitters isn’t gold major eruption points. It is even possible to pick out four major vol- canoes and associated lava flows under the water of the present-day Port Phillip Bay. struggled to maintain a vibrant mining industry safety regulation in Victoria and introduced capital to fund new projects, or revisit old in the past fifty years. many of the new safety inspectors recently operations which may have new life under a The Palaeozoic windows are clearly seen in the radiometric image and, of particular inter- Changing social and financial circumstances employed and trained by Minerals and regime of different technology and commodi- Petroleum Victoria to oversee the industry. ty prices. est to the heavy minerals explorers, is the pres- recent decades also combined to downgrade ence of what appears to be a whole series of the importance of mining to the Victorian A feature of Victorian Mining Week for a The VCM also hosted a seminar of the Joint old dunes west of Portland, near Warrnambool economy. number of years has been the JB Were Ore Reserves Committee (see story on page and inland from Port Campbell. But new survey data which has resulted in a Victorian Resources Conference, showcasing 22) The JORC code, recently adopted world- The second airborne survey covers the number of major new mineral discoveries has the activities of companies exploring for or wide, sets news standards for reporting the Mansfield, Matlock and Howitt areas of the given mining a new impetus which was producing minerals in Victoria. The invita- size and extent of mineral deposits to avoid Warburton 1:250,000 map sheet. explored in detail during the Mining Week tion-only conference focused on industry accidental confusion or deliberate obfuscation events. After an industry breakfast in Ballarat issues, company presentations, and the out- of the real nature of mineral discoveries. The terrain is rugged as evidenced by the to start the week a Mining Industry Safety look for commodity markets. Mining Week concluded with an industry DTM model image and the survey was fully Seminar was held in Ballarat. The Victorian Chamber of Mines, a key spon- environmental seminar held by Green Inc, a helicopter supported. A string of Australian and international mining sor of Victorian Mining Week, also sponsored significant environmental management group, The area covers the Walhalla-Woods Point These two airborne surveys now bring the apply to the Matlock-Mansfield-Howitt area. industry accidents and disasters has focussed two half-day seminars. The first looked at inno- at Churchill in Victoria’s Latrobe Valley. dyke swarm, the Cambrian Mt Wellington vol- total area of Victoria covered by industry stan- It will be lifted on Monday, February 14, attention on the mining industry’s poor safety vative financing of mineral projects in Victoria. In addition a number of mine tours were con- canics, the Governor Fault Zone and parts of dard aeromagnetics and radiometrics coverage 2000, so explorers have about 14 weeks to record. Industrial accidents such as the Longford Because mining has been at a low level in the ducted to a variety of operating mines and the Mansfield, Macalister and Avon Basins. to 85% of the state, a much higher preparation review the data and decide what area they gas plant disaster in September 1998, have past decade, finance to develop projects in exploration sites across the state to illustrate The structure is clearly seen in the images and than any other state in Australia. are interested in. There are no tender blocks helped hasten changes to the way safety is now Victoria has been particularly difficult to locate, the real nature of the mining industry, with a the radiometric images in particular are some No moratorium applies to the Otway or Colac nominated and each application from measured, regulated and enforced in Victoria. despite the state’s rich mining history. view to dispelling many of the myths which of the best ever produced by the Geological survey and licences can be taken in this survey February 14 will be treated on the merits of The seminar helped explain the changes in The seminar explored new ways of attracting surround and inconvenience the industry. Survey. area at any time. A moratorium however does the individual application.

18 19 REGULAR FEATURE MINING WEEK REPORT MINING WEEK REPORT

There is a mineral exploration history of the Warburton 1:250,000 map area published as Data Report No 64 to further assist in exploration of this area. It records the results of 106 Boost for base metals EL’s that have been held within the area. The Warburton area has a significant mining history, with gold mineralisation associated with the Woods Point dyke swarm accounting he first volume of a three-part series VICTORIA LOCALITY DIAGRAM SHOWING BASE METAL PROSPECTS AS DISCUSSED IN WILLOCKS ET AL. (1999) for 98,000 kg or 10% of Victoria’s primary on the “Geophysical signatures of gold production. Copper, platinum, palladium base metal deposits in Victoria” has and silver mineralisation is also associated just been released by the Geological with the Woods Point dyke swarm. T Survey of Victoria (GSV) in conjunction Other mineralisation in Warburton includes with the Australian Society of Exploration fault-related gold-antimony mineralisation; Geophysicists (ASEG). granted intrusion-related molybdenum, tungsten, and tin mineralisation; epithermal and The volume presents case studies on the use of volcanogenic massive sulphide gold minerali- geophysics in exploring for base metal sation in Cambrian volcanics; stratabound deposits in Victoria. The GSV is now working copper and uranium mineralisation in sedi- on a second volume, “Geophysical Signatures ments of the Howitt province; and brown coal of Industrial Mineral and Environmental measures in the Maffra area of the Gippsland Investigations in Victoria” and is in the early Basin. stages of planning a similar volume on gold. There are four new 1:50,000 geological map Data for the base metal case studies comes sheets that go to make up the Omeo 1:100,000 from expired exploration licence reports and map sheet area. industry and government sources. The Omeo area lies in the eastern part of the In many cases, the recent regional airborne Lachlan Fold Belt and includes the southern geophysical surveys and regional geological end of the Omeo structural zone as well as mapping post-date the main exploration effort. parts of the Tabberabera or Buchan structural These new regional data put the known miner- zones. alisation into a better-understood regional Omeo is host to a wide range of economic context, creating the possibility of defining mineral deposits. All deposits occur within the new and more accurate areas for exploration. a) Radiometric ternary Benambra gold province, except for the Yahoo The study has shown that modern geophysical image (red = potassium, Creek goldfield, which lies in the Harrietville- and interpretation methods may be able to bet- green = thorium, blue = Dargo gold province. ter delineate the mineralisation at many of the uranium) of part of the The mapsheet is divided diagonally by the prospects. The case studies of mineralisation Mansfield survey over the Hill 800 Prospect. regional, northwest trending Ensay Shear in areas of outcrop or shallow cover will help zone. explorers to determine appropriate geophysi- b) Contour map of 50 m cal techniques for exploration in Victoria. loop MPPO-1 transient North of the shear zone are minor primary The topics covered are as follows, with loca- electromagnetic survey gold and molybdenite deposits together with with 1.5 ms delay, over the tions of the prospects shown in Figure 1: base metal deposits that occur within the A B Wilga orebody (contour ¥ An overview of the geology, mineralisation interval = 5 V/A, red = Limestone Creek Graben, Mount Elizabeth 13,230 kg of silver. The largest precious metal Closed up gravity coverage at 1.5 km station styles and geophysical techniques applied high, blue = low, selected Caldera Complex and the Nunniong Pluton. vein deposit in Omeo is Cassilis, which pro- spacing is provided for the Gippsland Basin to base-metal exploration in Victoria. drillholes are shown). South of the shear zone are major primary duced in excess of 2000 kg of gold. and the Benalla-Albury area. ¥ Volcanic-hosted massive sulphides at c) Dipole-dipole resistivity gold and minor tungsten deposits. Primary Total gold production from Omeo is 7,480 kg This now brings detailed gravity coverage of (Wm; top) and induced Benambra, Hill 800 and Wickliffe gold and silver deposits occur within the shear with 3,310 kg alluvial, 3,690 kg primary and Victoria to 80%. polarization (%; bottom) zone itself. ¥ Porphyry copper mineralisation at Dogwood, at the Mount Ararat 480 kg from unspecified sources. Exploration companies are increasingly using Sunday Creek and Thursdays Gossan Prospect. Styles of mineralisation include precious The largest and most productive area is Swifts gravity data in routine area selection and this metal vein, placer gold, volcanic associated Creek (Cassilis), followed by Omeo and new data will be of major assistance in these ¥ Greenstone hosted Cu-Au at Mount Ararat d) Pseudocolour image of total magnetic intensity massive sulphide, porphyry copper and wol- Haunted Stream. The map sheets are accom- areas. and Heathcote framite vein deposits. with relief shading over the panied by a 340-page geological report ¥ Carbonate hosted Pb-Zn deposits in the Bete Belong Suite, showing The main exploration/mining focus has histor- (Geological Survey Report No 118) and a Buchan Rift C D copper anomalies (small ically been on gold, but more recently base 1:100,000 geophysical interpretation map. ¥ Possible Tennant Creek style mineralisation red squares). metals have been a highlight. Also included in the eleventh data package are FOR MORE INFORMATION CONTACT: at Nowa Nowa Victoria’s largest base metal mine, Wilga, is geochemical compilations for Warragul, Ballarat Tom Dickson The volume aims to be a reference source for located within the Omeo area. and Hamilton quarter million sheet areas. References: Willocks A.J. and Moore, D.H., 1999. Geology and geophysical exploration of base metals in Manager Geological Survey of Victoria use by geologists and geophysicists involved Victoria. In A.J. Willocks, S.J. Haydon, M.W. Asten & D.H. Moore, 1999a. Geophysical signatures of base Before its closure in 1996, it produced 45,800 This now provides complete exploration geo- Tel: (03) 9412 5035 in exploring for base metals in Victoria and in metal deposits in Victoria. Geological Survey of Victoria Report 119 and Australian Society of Exploration tonnes of copper, 16,890 tonnes of zinc and chemistry coverage of the state. similar terrains worldwide. Geophysicists Special Publication 11, pp.1-21.

20 21 REGULAR FEATURE MINING WEEK REPORT MINING WEEK REPORT

Pat Stephenson and Norm Miskelly The benefits If the word ‘prospective’ is replaced with the ‘A Guide to the Understanding of Ore are two of the driving forces behind Mining is international, as is investment. word ‘possible’, the system was virtually Reserve Estimation’. the development of the Joint Ore Many companies domiciled in one country identical to that used by some organisations Two key points helped to advance evolution of until the mid-1980’s and, taking into account Reserves Committee. have foreign parents or associates. the JORC Code: the modern division into mineral resources ¥ the definition of a reserve as a resource This report is based on a paper Similarly, it has become increasingly common and (ore) reserves, is not very different to that for mining companies to diversify their explo- (which may be known or unknown) on they presented to Joint Ore Reserves in use today. ration, development and production into for- which ‘investigative work has established a Committee Seminar in November during eign countries. Unfortunately, Hoover’s simple three-fold basis for decisions as to technological and Victoria’s Mining Week activities. classification system was not universally economic feasibility’. Exploration joint ventures often have owner- adopted at the time. The JOR Committee is a world leader in ship spread amongst several countries. ¥ emphasis on the principle that ore reserve During World War II, concerns at a govern- creating a global standard for reporting In the absence of an international reporting estimation involves much more than just a ment level in the USA regarding the avail- geologist’s calculations. mineral exploration developments in a standard, it would not be unusual to be ability of national mineral resources led to the The JORC Code also became binding on way which is consistent and meaningful required to comply with, say, three or more dif- adoption, in 1943 by the US Bureau of Mines, companies reporting to the Australian Stock ferent reporting regimes and sets of definitions. of a three-fold classification system based on across international borders and within Exchange when it was incorporated in full The problems of differing standards are com- the terms ‘measured’, ‘indicated’ and widely differing political jurisdictions. into ASX Listing Rules in July 1989. pounded when debt and/or equity financing is ‘inferred’, each being defined comprehen- Now mining investors in Australia can sought for development. The source of such sively. International definitions read and understand reports of mineral financing may originate from many countries. This system was a landmark development and exploration in South Africa, the USA, Differing standards, therefore, involve unnec- has influenced almost all subsequent classifi- Concurrent with these later developments in essary effort and cost. Australia, since 1993 there have been major Canada and New Zealand, without fearing cation systems. Shortly after its release, it was advances on the international front to establish that local reporting standards may create Standardised reporting would assist in the free adopted for national resource reporting in flow of investment funds, both direct and port- Australia by government authorities and for a set of international definitions for mineral serious misunderstandings about what a folio, since there would be a clearer under- prospect or mine scale reporting by some min- resources and mineral (ore) reserves and their company has actually discovered. standing at all levels of the resources/reserves ing companies. sub-categories. reporting chain. In Australia, the lack of universally accepted In October 1997 in Denver, Colorado, the five Providers of equity would be better able to reporting standards finally came to a head in the participating nations (Australia, South Africa, refine their risk- management techniques late 1960’s when very questionable reporting UK, Canada and USA) reached provisional agreement (the ‘Denver Accord’) on the wording of definitions for the two major categories, mineral resources and mineral (ore) reserves, and for their respective sub-categories, measured, indicated and inferred mineral resources, and proved and probable mineral reserves. Mineral reporting standards and the JORC Code Also, since 1992, the United Nations Economic Commission for Europe has been developing an international framework classification for mineral resources and reserves ver since the first Victorian goldrush, mining nations, led by Australia, have begun mineral resources and reserves. Some of the while better quality information about explo- practices occurred during the ‘nickel boom’. (solid fuels and mineral commodities). when miners banded together to to establish criteria which will help eliminate greatest financial scandals and frauds have ration results, mineral resources and reserves tackle the rich quartz reefs of Ballarat confusion by standardising much of the min- been perpetrated on mining investors, with the During 1971, both the Melbourne Stock The purpose of the UN framework classifica- could reasonably be expected, on a world- and Bendigo, mining companies have ing industry’s unique jargon. greatest gold industry scam of all time com- Exchange and a Federal Government Senate tion has been to provide a basis for compari- E wide basis, to siphon off funds which might son of many different national mineral Select Committee approached mining industry had to raise venture capital to explore and Reporting of ‘ore reserves’ and exploration mitted just five years ago. otherwise be attracted into the non-mining organisations expressing concern about the resource and reserve classifications world develop mines. information by mining companies has grown Bre-X Minerals, a junior Canadian gold sector. Hence the overall cost of capital to apparent lack of reporting standards. wide, particularly for those countries in transi- In the heady days of the 1800’s the most ready haphazardly over the last 100 years, mostly on explorer, reported it had found in the mining development may fall. tion to market economies. a country-by-country basis. There has been no Philippines one of the biggest gold deposits This led, during that year, to The AusIMM sources of capital were rich British investors The original JORC Code was released in Through a series of workshops and taskforce serious attempt to reach a consensus or con- ever located anywhere in the world. and the Australian Mining Industry Council who poured millions of pounds into mining 1989, although its origins go back well before meetings, a final version of the UNFC sistent and compatible reporting across inter- setting up the JORC. ventures across Australia. The company’s shares rocketed skywards, cre- this date and were strongly influenced by sev- was agreed and prepared (UN-ECE national boundaries. In 1980, the US Geological Survey released a Investment proposals, known today as a ating a market capitalisation of billions of dol- eral key national and international develop- Energy/WP.1/R.70, Geneva, 1997), translated document (Circular 831) entitled ‘Principles prospectus, were printed by the hundreds, In general, reporting by mining companies lars before the exploration results were proved ments. In 1909, Herbert Hoover, then working into six languages and distributed worldwide of a Resource/Reserve Classification for often with the glowing descriptions of prospec- worldwide at the exploration, development to be a carefully orchestrated fraud. in the Kalgoorlie area and later to become the for comment and trial application. Minerals’, in which, for the first time, a clear tive mines and rich returns barely resembling and production stages has lagged well behind Hopefully, such scandals are history, due in 31st President of the USA, wrote a classic text division between resources, representing in- Of the 43 countries and international organisa- the reality. Investors back in England had little the advances in financial reporting. large part to the success of the Joint Ore book, ‘Principles of Mining’, in which he rec- situ material, and reserves, representing eco- tions that replied, 27 have applied or are in the hope of determining the truth about where This applies particularly to relevant and useful Reserves Committee Code in Australasia. ommended a three-fold sub-division of ore nomically extractable material, was presented. process of applying the UNFC, some coun- much of their capital was spent. information about the most significant asset Dubious or unacceptable reporting of explo- reserves into ‘proved’, ‘probable’ and tries adopting it for national mineral resource This key development was to form an impor- For a century the practice of presenting min- of most mining companies - their orebodies ration results or ‘resource/reserve’ estimates ‘prospective’ categories. and reserve inventories. The most recent tant basis for the eventual JORC Code. ing investors with enthusiastic word pictures which are the source of future income. and increasing international competition for Each category was defined simply and suc- major development was at a joint meeting in of the exploration potential of a particular area However, in the 1990’s there has been a investment funds, has driven the creation of cinctly on the basis of risk associated with In 1982, Conzinc Rio Tinto Australia Ltd, Geneva, Switzerland on 4 October, 1998 has been the accepted way of raising capital world-wide upsurge of interest in improving the Code which aims to standardise mining assumptions made regarding continuity of now Rio Tinto Ltd, made a ground-breaking between the CMMI International Definitions for new projects. But now the world’s major reporting standards of exploration results, industry reporting to eliminate fraud. metal values beyond sampled exposures. contribution when it released a paper entitled Group and the United Nations Economic

22 23 REGULAR FEATURE MINING WEEK REPORT MINING WEEK REPORT

22 23 GEOLOGICALREGULAR FEATURE NEWS MINING WEEK REPORT

The JORC code will help provide investors and their advisers with better and more accurate information. New light on Highlands geology Commission for Europe Taskforce. Agree- bedevilled by the varying statutory and report- ment was reached to incorporate the CMMI ing regimes which may apply at a State or standard reporting definitions into the United Territory level. No other country (except New Nations framework for those categories that Zealand) in which a classification/reporting are common to both systems. standard has been developed has so far man- Subject to fine tuning of the wording of these def- aged to establish this degree of intimate linkage ew maps and associated geological The Bindi 1:50,000 initions, it is now a realistic possibility that during with the main national regulatory authority. information for the Omeo 1:100,000 geology map, one of the four geology map area have been released by the 1999 the UNFC participating countries and those The 1999 edition of the JORC Code marks its maps covering from CMMI will be using virtually identical second substantial revision. However, none of N Geological Survey of Victoria. the Omeo map wording for the common reporting definitions. the 1999 revisions materially alter the funda- area, is shown The geological report and accompanying mentals of the Code, being the mineral on the following The purpose of the JORC Code is to provide a maps are the result of geological mapping car- resource/ore reserve classification framework pages, while the minimum standard for reporting of explo- ried out in 1997 by a GSV project team of six 1:100 000 and terminology, and the chain of responsi- ration results, mineral resources and ore geoscientists, backed up by technical assis- geophysical bility for public reporting of resources and reserves in Australasia, and to ensure that pub- tance and cartographic support. interpretation map lic reports on these matters contain all the Regulatory backing reserves, involving companies’ boards of is shown on this information which investors and their advisers The decision by the ASX to append the JORC directors and competent persons. The Omeo map area is situated in the north- page. would reasonably require for the purpose of Code in its entirety to its Listing Rules was The JORC Code will continue to evolve to eastern highlands of Victoria about 400 km by making a balanced judgement regarding the probably the single most important develop- maintain its relevance to the exploration and road from Melbourne. The maps and accom- results and estimates being reported. ment in making the Code an effective tool for mining industry in Australasia and to panying reports document the geological history, structure, stratigraphy and economic The principles of the JORC Code requires that setting and maintaining public reporting stan- providers of finance to this industry. potential of the Palaeozoic, Mesozoic and a public report contains sufficient informa- dards in Australia. Its adoption by the ASX JORC will continue to play a leading role in Cainozoic rocks of the region. tion, the presentation of which is clear and (and through the ASX by the ASIC) has given international deliberations whilst ensuring that unambiguous, so that a reader is able to under- it regulatory backing on a national basis. Australasia’s national reporting standards The mapping was aided by airborne magnetic stand the report and is not misled. Application of the Code is not, therefore, remain relevant, effective and respected. and radiometric surveys flown at a height of 80 metres with a 200 metre line spacing. The report is accompanied by a digital data- base of mines and mineral occurrences. A GIS package for the area is also available. A ‘show’ for Lakes Oil The region lies in the eastern part of the Lachlan Fold Belt and includes the southern end of the Omeo structural zone as well as parts of the Tabberabbera and Buchan struc- ustralia’s oldest independent oil and Lakes Oil reported that the key Latrobe ing gas trunkline into Longford, and Victoria’s tural zones. The oldest rocks are Ordovician gas explorer, Lakes Oil NL, is Formation was encountered at the anticipated need for alternative supplies of natural gas, and are part of a sheet of turbidites and black keeping alive the pioneering spirit depth of 582m. But it said, “The Top Latrobe could help improve the economics of any shales that cover much of the eastern Lachlan by seeking new oil and gas clastics were water saturated, as predicted.” future development should gas be discovered. A Fold Belt. opportunities in the onshore portion of the “The Lower Latrobe target encountered sever- Lakes recently completed a comprehensive The older Adaminaby Group forms the Gippsland Basin. al gas shows associated with coal beds in the study of all previous exploration wells and other bedrock over most of the area, while the over- the Silurian, followed by igneous activity in now preserved only on the Nunniong Plateau. sequence, but none of these proved commer- data in a bid to develop new exploration plays Lakes Oil NL’s persistent search for commer- lying Bendoc Group, together with the Lower the broad meridional Cravensville Igneous cially significant.” for the onshore part of the basin, which apart Extensive colluvial fans are developed along cial Victorian oil and gas resources has given Province which appears to have been a zone of from some primitive attempts at oil production, Silurian Yalmy Group, is only preserved as the large Livingstone Creek fault scarp, and the company a holding over almost the entire “The Lower Latrobe Formation section con- extension. Numerous large and small I-type has never yielded a commercial discovery. small fault bounded slices. extensive alluvial flats and terraces occur onshore portion of the Gippsland Basin, open- tained excellent reservoir beds, but the hoped intrusions were emplaced and the Mount During the Benambran Deformation at about along the Tambo River, with more narrow flats ing up a number of opportunities for new for, intra-formational seals, which are effec- But the rapid deregulation of the Australian Elizabeth Caldera Complex was formed at wildcat wells. tive to the south in the offshore portion of the 430 million years ago, the Ordovician and along many of the smaller streams. gas industry has dramatically changed the Mount Elizabeth. In its latest drilling efforts, Lakes Oil drilled basin, were not present or poorly developed at economic prospects for new discoveries in the Lower Silurian rocks were strongly deformed, The geophysical character of the various rock two shallow onshore wells in quick succession. the Investigator location,” the company said in Gippsland Basin, which offshore hosts the with deformation accompanied by intrusion of At Bindi, deposition of ignimbrites of the types is given with the lithological descriptions The first, well, Baudin 1, in permit PEP-135, its report to the Australian Stock Exchange. massive oil and gas fields of Bass Strait owned S-type granites and production of the high-T, Snowy River Volcanics was followed by pro- and a geophysical interpretation of the aero- nounced subsidence during which the marine 3.5 km northeast of Metung, reached a total Lakes Oil, which had its origins at Lakes by BHP and Esso Australia. low-P schists, gneisses and migmatites of the magnetic and radiometric data is provided. Omeo Metamorphic Complex. Buchan Group was deposited. Both the Snowy depth of 426 metres, on October 1 this year. Entrance in 1946. is now planning to drill a The economic geology of the region has been Small onshore gas accumulations, now being River Volcanics and the Buchan groups were While the well encountered some of its tar- new well in the onshore Gippsland Basin sought by Lakes Oil are likely to be commer- The Late Silurian Enano Group which hosts compiled and is discussed in a number of sec- folded and cleaved during the Middle gets, no oil was present. A total of 32 metres between the towns of Seaspray and Longford cially viable development options in the near the Wilga and Currawong copper-lead-zinc tions covering mineral exploration, mining Devonian Tabberabberan Deformation. of good quality Latrobe Formation Sands in permit PEP137. Several wells were drilled future. deposits are preserved in the Limestone Creek history, mineralisation style and economic were found but with no hydrocarbon shows. in the area in the 1960’s, one of which flowed Graben, while the Mount Tambo Group is pre- Several granites, together with trachyte plugs The deregulation of the Victorian gas industry, potential and prospectivity. gas to surface from the Golden Beach served in the Scrubby Creek Syncline. and dykes, of the Triassic Mount Leinster The top of the Latrobe Formation was encoun- allowing new players to sell gas to Victorian Formation target, which underlies the Latrobe Probable Late Silurian rocks occur also in a Igneous Province are found in the map area. tered at 370 metres and basement was reached distributors and the development of new gas FOR MORE INFORMATION CONTACT: Formation. newly discovered fault slice along the at 402 metres with the well subsequently pipelines, particularly the Eastern Gas The late Mesozoic and Tertiary history is Peter O’Shea, Manager plugged and abandoned. The prospect has an estimated potential of up Barmouth Fault. pipeline from Longford to Sydney being built mainly one of block faulting, deep incision and Geological Mapping – GSV to 60 Billion cubic feet of recoverable gas. The company had better success with by Duke Energy, now provides ready markets The Silurian rocks were folded and faulted stream diversion, but in the Eocene there was Telephone (03) 9412 5093 Investigator 1 well, located in PEP 136. The close proximity of the target to the exist- for new gas discoveries. during the Bindian Deformation at the end of eruption of extensive older volcanics basalts,

24 25 GEOLOGICALREGULAR FEATURE NEWS MINING WEEK REPORT

24 25 GEOLOGICAL NEWS GEOLOGICAL NEWS

26 27 GEOLOGICAL NEWS GEOLOGICAL NEWS

26 27 REGULAR FEATURE Competition for Kipper development spreads

oodside Petroleum has finally turned due to the exercise of pre-emptive rights. are currently studying the feasibility of devel- secured an entitlement to the gas The Kipper field is now controlled by Esso oping the Kipper field and are preparing to W reserves lying in the inshore portion and BHP which still hold 50 per cent equity in drill at least one more appraisal well on the of Bass Strait, including the Kipper field. the field. But Shell Development Australia field to determine reserves. Woodside recently acquired the interests of holds an interest of 35 per cent with Santos About 40 per cent of the Kipper reserves also Petroz Offshore Pty Ltd from the listed com- Ltd holding 12.5 per cent and Woodside the spill across into Esso/BHP’s wholly owned pany Petroz NL. The acquisition gives remaining 2.5 per cent. adjacent permit containing the Tuna oil field. Woodside a 2.5 per cent equity share of the Competition for access to new gas reserves in A proposed development of both Kipper and retention lease, Vic/RL2 which contains the Eastern Australia has become fierce in the past the Basker fields involves gas being piped majority of the Kipper gas field. year as deregulation of the gas industry and a ashore to a processing plant to be built near Woodside also acquired 5.8 per cent of the growing network of natural gas pipelines dra- Orbost and ultimately connecting into the Basker/Manta gas field, over which a retention matically enhances the opportunities in the Duke pipeline. Kipper gas would also be a lease is pending and 50 per cent of the balance marketplace. prime candidate for NSW sales and, with potential resources of up to 600 billion cubic of permit Vic P 19, which surrounds the Of particular importance to Kipper is the feet, could enter long-term supply contracts. Kipper field. development of the Eastern Gas Pipeline, now The acquisition of Petroz Offshore Pty Ltd being built by Duke Energy Ltd between means that the acquisition cannot be over- Gippsland and Sydney to open up new mar- FOR MORE INFORMATION CONTACT: turned by other partners which may own pre- kets for Victorian gas. Rob Millhouse emptive rights to the lease. The new $440 million pipeline will connect Woodside Petroleum Ltd Woodside had previously attempted to purchase Esso’s Longford plant in Gippsland to the (08) 9224 4281 COMMERCIAL HYDRAULICS AD HERE interests in the field but the deals were over- main NSW grid near Sydney. Esso and BHP (SAME AS LAST ISSUE) New RFA has little impact on explorers

ictoria’s third Regional Forest North-East RFA is expected to have little Aside from this new area of national park, Agreement (RFA) has been concluded impact on the mining and exploration industry. which represents only 0.12 per cent of the V between the Commonwealth and A small addition to region’s national parks, total land area of the region, there are no fur- Victorian Governments. covering an extra 2,700 ha, has been included ther restrictions on access to land for exploration and mining. It covers an area roughly bounded by the in the Wongungarra catchment area. The new Hume Freeway in the west, Jamieson in the area of park is not regarded as highly prospec- The North East RFA is one of five which will south and the NSW border in the north. The tive and has no recorded mineral occurrences. be struck by 2000. East Gippsland and Central Highlands have already been concluded, while Gippsland and Western Victoria are to follow. The RFA’s, covering the forest areas of Victoria, last for twenty years and provide for the establishment of a “comprehensive, ade- FILM quate and representative” (CAR) forest reserve system, to ensure conservation and protection of environmental and heritage values, sustainable forest management and development of forest based industries. The CAR reserve system for North-East Victoria will comprise: ¥ National and State parks, which are not available for exploration and mining, ¥ Other conservation reserves, some of which are restricted crown land under the Mineral Resources Development Act, and ¥ State Forest, zoned for protection of significant conservation values, which is designated as unrestricted crown land.

28 DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL NOVEMBER 1999

INSIDE THIS ISSUE

• MINERS HELP CLEANUP

• OTWAY BASIN INTEREST

• NEW DATA RELEASE