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DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL FEBRUARY 2000

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• NEW FIND AT STAWELL

• DOUBLE GAS DISCOVERY

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EXPLORATION SUCCESS AT STAWELL 2 Internet/Intranet Victoria’s biggest gold mine gets a welcome lift to its reserves ONSHORE GAS FIND 5 Intranet Two new discoveries boost gas supplies TOP MOVES 6 Solutions Major executive changes at NRE GIS Solutions NEW GROWTH ON THE GOLDFIELDS 8 Marilyn Sprague leads the mine rehabilitation battle NEW LEASES ON OFFER 10 New areas for mineral sands and petroleum exploration GAS NETWORK EXPANDS ACROSS VIC 17 cover picture Gas is piped into the Mildura region Restoring Victoria’s decimated and still shrinking GREEN GO FOR MARYVALE 18 Box-Ironbark forest areas, which once covered the Our newest coal mine gets environmental approval central goldfields region, is a passion of Marilyn Sprague, creator of the thriving Goldfields NATIVE TITLE AGREEMENT SIGNED 20 Revegetation business. Operating from a nine acre Deal clears way for project to proceed site outside Bendigo, the company has established dedicated plots where native species from specific NEW PROPOSALS TO IMPROVE MINE SAFETY 22 areas can be grown and seed collected to ensure the A review of Victoria’s safety and health legislation survival of indigenous plants. As environmental concerns have grown so too has the business of RUBBISH BLANKET MAY HIDE ORE BODIES 24 restoring Victoria’s delicate natural vegetation, devastated by a century and a half of poor farming New studies are helping local explorers and mining practices and the pressure of urban development. STORAGE GUIDELINES FOR MINE TAILINGS 27 Photograph courtesy of Perseverance Corporation New rules will help eliminate hazards and supplied by AAD Strategic Design.

Move GIS from the back office and Enterprise Information Discovery integrate it with vital information DISCLAIMER: This publication may be of assistance to you, but the regular features State of Victoria and its officers do not guarantee that the publication Dryden Technologies MapXtreme is without flaw of any kind or is wholly appropriate for your particu- systems. Dryden Technologies lar purposes and therefore disclaims all liability for any error, loss or solutions gives your organization other consequence which may arise from you relying on any infor- MapXtreme solutions lets you A GREAT OPPORTUNITY 7 Minister Candy Broad is enthusiastic about Victoria’s Mineral Sands mation in this publication. data mining and analysis through a decide whether to create a complex Minerals and Petroleum Victoria acknowledges contributions made by private enterprise. Acceptance of these contributions, however, simple web browser. INDUSTRY NEWS 12 GIS for analysts or a simple Business does not endorse or imply endorsement by the Department of Natural Solutions News roundup Resources and Environment of any product or service offered by the contributors. Intelligence system for management. Easy Mapping VICTORIAN RESOURCES 14

Internet All photographs, maps, charts, tables and written information in this Maps of mineral, oil and gas resources Make simple mapping more publication are copyright under the Copyright Act and may not be reproduced by any process whatsoever without the written permis- accessible to all by using a Dryden LICENCE REVIEW 16 sion of the Department of Natural Resources and Environment. The latest news on mineral exploration licences © Minerals and Petroleum Victoria 1999. solution with MapInfo MapXtreme. HEAD OFFICE: Suite 5, 412 Toorak Road Toorak Victoria 3142 Telephone: 03 9804 7500 Published quarterly on behalf of the Minerals and Petroleum Division of the Department of Natural Resources & Environment by RBA Communications, 86 Cooloongatta Rd, Camberwell Vic 3124 Tel: (03) 9889 1094 Fax: (03) 9889 9997 EMail: [email protected] Editorial: Rex Banks. Advertising: Watts Media, 1396 Malvern Rd, Tooronga, Vic 3146 Facsimile: 03 9827 0473 Tel: (03) 9822 4461 Fax: (03) 9822 9192. Distribution enquires to Chandri Nambiar, Manager Marketing Development, Minerals and Petroleum Division, Department of Natural Resources E-mail [email protected] & Environment, Level 7, 240 Victoria Parade, East Melbourne, Vic, 3002, Tel: (03) 9412 5061 Fax: (03) 9412 5155. Website: Australia Post Print Publication PP349472/00128. ISSN Number 13282409. Internet www.drydentech.com ¨ MapInfo Strategic Partner 1 & Technology Partner DISCOVERYVICTORIA’S EARTH RESOURCES JOURNAL FEBRUARY 2000 contents

1992 has added 1.2 million ounces of gold FIGURE 1: Magdala Mine Cross Section resources at a discovery cost of $8.60 oz. Stawell Gold Mines is now producing more than 90,000 oz of gold per year and has proved and probable reserves to sustain a further five years of underground mining. Long-term studies incorporating current inferred resources from underground and recently delineated surface resources suggest the possibility of a mine life in excess of 10 years. Ore from Magdala is produced from a series of sub-parallel lodes hosted by faults/ shear zones on the western flank of a large basalt GOLD GEOLOGISTS, JON DUGDALE AND DEAN FREDERICKSEN, REVIEW SOME antiform — the Magdala Anticline. EXCITING DEVELOPMENTS AT STAWELL, VICTORIA’S BIGGEST GOLD MINE. These lodes, the most important of which are the Central Lode and the basalt contact lodes, are intimately associated with an intensely major exploration success at the which was commenced in 1982 and has now Above: An aerial view looking west over the deformed package of volcanogenic sedimen- Stawell Gold Mine in north-western reached a depth of 750 m below surface. township of Stawell with the mine, treatment tary rocks. plant and other site facilities in the foreground. Victoria could double its previously Mineralisation at Stawell is hosted by Historical production was predominantly from A known ore resources and allow Cambro-Ordovician rocks at the western mar- high-grade ‘Hanging-wall reefs’ which are underground mining to continue well gin of the Lachlan Fold Belt. Goldfield is 4.7 million ounces (M/oz). hosted by the Stawell Fault. beyond the present expected life of the Exploration tenements extend 100 km north- This includes pre-1926 alluvial and hard rock Ore shoots developed within the Magdala mine. west from the mine and cover a continuous production of 2.7 M/oz, post-1984 production Lodes generally plunge steeply north, but are Exploration in the past year has produced out- corridor of similar lithologies under a deepen- of 0.9 M/oz and current reserves and resources constrained within a moderate northerly standing results below the South Fault, previ- ing Murray Basin cover. estimated at 1.17 M/oz. plunging corridor bounded by the Scotchmans Fault, above and the South Fault, below ously considered the base of the known gold The overall endowment of the Stawell Discovery since acquisition of the project in ore resource at the mine. (Figure 1). The discovery of mineralisation under the This corridor has been the main focus of South Fault is the culmination of a detailed exploration since acquisition of the mine in exercise involving the examination of old 1992 and currently contains nearly all of the data, detailed structural mapping, magnetic resources outlined to date. modelling and diamond drilling. A large-scale exploration program has recent- Drilling results indicate the potential to double ly commenced to test the deeper extensions of the endowment of the deposit in future years, this corridor below 800 m vertical depth. subject to the economic constraint of depth The first intersection of this program was 16.7 below surface. m @ 6.5 grams of gold per tonne (Au/t). The Stawell Gold Mine is located 250 km It has long been recognised that the Magdala west of Melbourne in Victoria’s Wimmera system, as we know it, is terminated by the region. South Fault at depth. are based. Previous drilling tested the area The extensive underground workings within the Stawell Gold Mines Pty Ltd (SGM), which Since the beginning of the modern era of under the South Fault at the south end of the Magdala lode extract ore from a series of sub- operates the Stawell Gold Mine and conducts mining at Stawell several structural studies mine, without success. parallel lodes hosted by faults and shear zones on exploration on surrounding tenements, is a have investigated the possibility that the the western flank of a large basalt antiform known wholly owned subsidiary of Mining Project South Fault truncated a much larger Magdala At that stage it was concluded that the lower as the Magdala anticline. Investors Pty Ltd (MPI) and the manager of a mineralised system and that the remainder of block was either offset on the fault more sub- joint venture between MPI Gold Pty Ltd and this system (lower block) lay unseen either to stantially than modelled, lay at great depth, or end of a doubly plunging dome which may Pittston Mineral Ventures of Australia Pty Ltd the east, west or at depth below the upper didn’t exist. plunge south under the South Fault. The mine is based on the Magdala Decline, block. Several factors have recently combined to Drilling at the southern end of the mine would Previous work by Bob Watchorn, Marty revitalise interest in the concept that an ore therefore have over-shot the southerly plunge Right: Stawell Gold Mine’s ore milling and block existed below the South Fault. of the lower block. leach plant could be utilised well into the future Lenard, Tapio Koistinen and others is if the new ore discovery translates into acknowledged as providing a strong structur- Conceptual work presented the possibility that Until recently, critical underground exposures substantial new reserves. al framework upon which recent conclusions the lower block may in fact be the southern of the Magdala System truncated by the South

2 3 SPECIAL FEATURE Exploration success at Stawell

2 3 SPECIAL FEATURE GAS DEVELOPMENTS

Fault have not been available. Left: Stawell Gold Mine’s primary ore crusher. Examination of these exposures has allowed a detailed structural analysis of the South Fault to be carried out. Diamond drilling to test the concept was start- Onshore gas find Direct observations of the fault confirmed the ed on June 19 last year on cross section 320N. dislocation of the Magdala ore shoots by the The drillhole intersected volcanogenic sedi- fault (or series of faults). ments and basalt immediately below the South The mine has now reached 750 m below sur- Fault at 910 m RL, producing an intercept of face and recent engineering studies indicate 3.2 m @ 4 g Au/t. ictoria’s onshore gas inventory has that it is feasible to extend the decline mine to A second hole, drilled further east, intersected been substantially increased with two below 800 metres depth. basalt below the South Fault. new gas discoveries in the Port Management decided that the important con- A third hole angled between these holes inter- V Campbell region of western Victoria. cept of a ‘repetition’ of the Magdala ore sys- sected three repeated zones of mineralised tem should be revisited as a priority task. volcanogenics with visible gold, located Boral Energy and Santos Ltd have both been successful with wildcat drilling in recent Detailed structural studies on the underground below the South Fault on basalt contacts. months. New reserves from discoveries in the South Fault exposures by University of Analytical results include intersections of 16.2 two exploration wells will increase Victoria’s Melbourne postdoctoral, Dr John Miller, indi- m @ 5.l5 g Au/t, 19.0 m @ 7.21 g Au/t and gas reserves and will improve the security of cated that the South Fault and related struc- 2.85 m @ 7.12 g Au/t. Victoria’s gas supply by providing an alterna- tures evolved from a north over south (along The hanging-wall of these zones has not yet tive source to Gippsland Basin gas supplied strike) movement sense to a northeast over been intersected. from Bass Strait. southwest (across strike) movement sense. This is a very significant technical success The first of the new discoveries came from Depending on the relative degrees of move- and further drilling is planned to define the Boral Energy Ltd’s Wild Dog Road-1 explo- ment, it was concluded that the lower block allowed a best case scenario for the position of extent of economic mineralisation below the ration well drilled near Port Campbell late last should lie underneath and to the north of the lower block to be constructed. South Fault. year. Boral Energy produced a substantial gas Magdala as we knew it. Various presentation methods were used to flow from the Wild Dog Road well located in The only questions were how far; how deep? illustrate the point, including a sliced water- permit PPL 1 in the Otway Basin. ry of gas production wells operated by Santos The Wild Dog Road-1 wildcat gas discov- melon, a wooden model and a series of inter- FOR MORE INFORMATION CONTACT: in the Port Campbell area. ery well is in the vicinity of the North Magnetic modelling, combined with re-con- The exploration well, which was spudded on preted cross sections at 1:5,000 scale. Paarratte gas field which produced this struction of the movement history of the fault, Jon Dugdale, Senior Gold Geologist, December 8, lies amidst other producing gas Penryn 1 is located within a cluster of gas dis- spectacular flare during earlier testing. The best case target for the location of the Mining Project Investors coveries. Below: A fleet of modern Tamrock Toro 500 haul fields and is 8 km north north-west of Port continuation of the Magdala mineralisation trucks carry ore to the surface treatment or Dean Fredericksen, Chief Geologist, Campbell and just one kilometre from the It lies 2.4 kilometres south east of the Fenton Wagga Wagga and Albury. The Victorian below the South Fault was selected as Ð900 m facilities from the underground workings at the Stawell Gold Mines North Paarratte gas field, which is currently in Creek field and three kilometres north of the Government is keen to seen new local gas RL and at least 300 m east of the upper basalt Magdala orebody at Stawell allowing the mine Telephone (03) 5358 1022 production. recently completed Heytesbury gas facility. fields developed to provide increased securi- to produce around 90,000 ounces of gold a year. contact on section 320N (Figure 3). Boral Energy told the Australian Stock The Heytesbury gas processing facility cur- ty of supply for the state. Exchange in December that mud log, wireline rently treats gas from the Mylor 1 and Fenton A network of new gas storage and transmis- log and pressure data recovered from the well Creek 1 wells. sion pipelines is steadily being developed demonstrated the presence of a gas accumula- Santos, which owns 100 per cent of PEP 108, across Victoria through Australia-wide initia- tion in the Waarre Formation unit C reservoir. is now planning to drill more wells in the per- tives to de-regulate the gas industry and create The major gas intersection was between a mit in a bid to locate extra commercial gas a truly national gas market. depth of 1587 metres to 1607 metres indicat- fields. Santos began gas sales in Victoria in By September this year Victoria's second ing a gross hydrocarbon column of 20 metres. July last year when the Heytesbury gas pro- major interstate gas pipeline link will be com- Subsequent production tests produced sub- cessing facility came on line. pleted when Duke Energy finishes the East stantial gas flows at a rate of between 15 and That followed Santos’ first sale of gas into Coast pipeline, designed to deliver gas from 20 terajoules a day and the well was expect- Victoria from South Australia utilising the Victoria’s Bass Strait into the NSW and ed to be brought into production during pipeline linking Victoria and NSW via Queensland markets. January.

Given its close proximity to existing gas The onshore pipelines and processing facilities, even a Otway Basin in small gas accumulation in the Wild Dog Road Victoria’s Port field is likely to be commercially viable. Campbell region is becoming an The Santos discovery came from the Penryn 1 important gas wildcat well located three kilometres north producer as more east of the Wild Dog Road-1 well drilled by fields are being Boral. discovered Penryn 1, which lies in permit PEP 108, inter- through a surge in drilling interest. sected a 20 metre gross gas column in the Cretaceous age Waarre sandstone formation, the same formation which produced gas in the Wild Dog Road-1 well. Penryn-1 reached a total depth of 1823 metres and has been cased and suspended as a future production well to add to the growing invento-

4 5 SPECIAL FEATURE GAS DEVELOPMENTS

4 5 REGULAR FEATURE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: Tom Dickson, manager of Geological MINERALS BUSINESS CENTRE: HEAD OFFICE: Level 8, 240 Victoria Parade, Level 15, 8 Nicholson Street, Survey of Victoria retires East Melbourne Vic 3002 Australia East Melbourne Vic 3002 Australia Wemen gets the go-ahead Tel: +613 9412 5020 Tel: +613 9637 8535 Fax: +613 9412 5150 Fax: +613 9637 8155 om Dickson, Manager of The Geological Survey of Victoria, within the Department of Natural Resources and MINERALS AND PETROLEUM DIVISION: Kourosh Mehin T Environment, will retire from the fter much speculation on the great Iluka’s extensive exploration program contin- Fax: (03) 9412 7834 Acting Manager Petroleum Resources department in February. He will be replaced promise of mineral sands in the ues to build on earlier discoveries in the Telephone: (03) 9412 5074 by Phil Roberts. Murray Basin, we now have a very Ouyen region; similarly RZM is exploring David Lea During his more than five years as GSV A significant mining project going over a broad area to add to its resource inven- Executive Director Minerals and Petroleum Mike Woollands Tom Dickson Manager, Tom Dickson guided the massive the ahead. The announcement by RZM Pty tory; Basin Minerals has identified a number Telephone: (03) 9637 8535 Manager Basin Studies Victorian Initiative for Minerals and Petroleum Ltd and Sons of Gwalia Ltd that the of deposits, with its Douglas Project to the Telephone: (03) 9412 5135 Wemen project will proceed is great news west of Horsham showing particular promise; David Wallish (VIMP), the biggest geological program in the state for decades. The program has been extended into the VIMP 2001 program with addition- for regional Victoria and, hopefully, the and Minotaur has recently announced encour- Business Manager Maher Megallaa al mapping and geological studies over large parts of the state being con- start of major new Victorian industry. aging intersections in the Casterton area. Telephone: (03) 9637 8535 Manager Acreage Release ducted. Wemen will be the first mineral sands As a further boost to exploration in the Telephone: (03) 9412 5081 development in the Murray Basin and is MINERALS BUSINESS CENTRE: Mr Dickson began his career with the NSW Department of Mines as a Victorian section of the Basin, a number of warmly welcomed by the Government. Fax: (03) 9412 5150 Bob Harms cadet from 1963 to 1967 after growing up in Broken Hill, the cradle of highly prospective areas will be put out to ten- Manager Petroleum Information the Australian mining industry. I hope the Wemen project will be a catalyst for der for exploration licences in April. The areas Kim Ricketts Telephone: (03) 9412 5053 In 1977, he joined CRA Ltd (now Rio Tinto Australia) as chief geologist further developments in the Murray Basin. include the WIM 150 & 100 deposits earlier Client Services Officer at Broken Hill, later appointed as chief geologist of the company’s opera- Importantly, the project go-ahead demon- identified by Rio Tinto and extensive areas in FROM LAST Telephone: (03) 9412 5103 Geoff Collins tions on the west coast of Tasmania, eventually moving to Melbourne strates that mineral sands developments in the the Mallee and Wimmera, recently required to Manager Petroleum Projects where he became chief geologist for Victoria and Tasmania. In Victoria, Basin can be commercially viable. The be relinquished by Iluka. Already there has GEOLOGICAL SURVEY VICTORIA: Telephone: (03) 9637 8531 CRA was principally involved in the search for viable mineral sands prospects for new mines and associated infra- been a good deal of interest in the release of ISSUE Fax: (03) 9412 5155 deposits, locating the rich WIM and WIM 150 deposits near Horsham. structure and processing facilities in Victoria these areas. Further details of the tender are to MINERALS AND PETROLEUM He joined the Geological Survey of Victoria in November 1994 where he are now very good. Such developments can be found in this edition (page 10). Phil Roberts REGULATIONS: supervised the VIMP program. During this period, a number of significant only benefit rural and regional economies and Meanwhile, a broad-ranging study of the Manager Geological Survey Victoria Fax: (03) 9412 5152 technical advances were made by the GSV including the recognition of employment, by providing sustainable indus- future infrastructure requirements of a sub- Telephone: (03) 9412 5035 Rob King extensions of the Lachlan fold belt in Victoria trial development. Even mining in the New stantial mineral sands industry in the Murray Alan Willocks Manager Minerals and Petroleum from Tasmania and a changed perception of the South Wales and South Australian sections of Basin is underway. The study will look at fac- formation of the Grampians in the state’s west. the Basin may ultimately benefit Victoria, tors affecting future development, including Manager - Geophysics Telephone: (03) 9412 5069 Telephone: (03) 9412 5131 Mr Roberts was formerly with the GSV for eight either as an infrastructure provider or as a site water resources, transport, energy supply, George Buckland for processing facilities. telecommunications, social infrastructure, years, mainly in geological mapping before Candy Broad Peter O’Shea Manager Minerals and Petroleum moving into the fields of minerals policy, man- Minister for Energy and Resources Manager Geological Mapping Tenements agement of drilling operations, environmental Telephone: (03) 9412 5093 Telephone: (03) 9412 4778 management of quarrying and mining and min- Phil Roberts erals development. My Department will continue to provide Roger Buckley INFORMATION: Manager Mineral Resources Janne Bonnett Telephone: (03) 9412 5025 Manager Library advice, assistance and geological data to Telephone: (03) 9412 5022 Graham Gooding Fax: (03) 9412 5157 Mike Taylor joins federal department Regional Manager Ballarat Telephone: (03) 53 336 521 facilitate mineral sands developments ike Taylor, Secretary of the Department of Natural Guy Hamilton Resources and Energy, has resigned to take up the Regional Manager Bendigo position as Secretary of the Commonwealth Department The Government is strongly committed to environmental priorities and land access. Telephone: (03) 5430 4531 M of Agriculture, Fisheries and Forestry. the revitalization of country Victoria. Victoria initiated the study, which is being Chandri Nambiar He has been replaced temporarily by Richard Rawson who will be Accordingly, it strongly supports new country- carried out jointly with New South Wales, Manager Marketing Development Acting Secretary. Terry Healy will continue as Deputy Secretary Policy based industries such as mineral sands, pro- South Australia, the Commonwealth and a Telephone: (03) 9412 5061 while Michonne van Rees is Acting Deputy Secretary Operations. Mr vided of course that acceptable environmental number of mining and exploration companies and community outcomes are achieved by Fax: (03) 9412 5155 Taylor left DNRE in December after 30 years with the department in its operating in the Basin. It is most encouraging various forms after starting in December 1967. “The last three years have those industries. My Department will continue to see such co-operation between a number of PETROLEUM DEVELOPMENT: been exciting times and all NRE staff members can be pleased to have to provide advice, assistance and geological governments and industry in such an impor- Fax: (03) 9412 5156 contributed to our significant achievements,” Mr Taylor said. data to facilitate mineral sands developments. tant area of mutual interest. I look forward to “As we enter the new century I believe NRE will be well placed to face While the Wemen announcement is very the completed study forming a basis for fur- Kathy Hill the many exciting and demanding challenges that lie ahead. I am confi- important, it is by no means the only focus of ther public and private sector infrastructure Manager Petroleum Developments dent that as a management agency responsible for natural resource man- activity in the Murray Basin. Exploration in projects which will facilitate the development Telephone: (03) 9637 8530 agement, NRE is taking a progressive and integrated approach in meet- the Victorian section of the Basin is proceed- of the valuable mineral resources of the ing government priorities.” ing apace and with some excellent results. Murray Basin.

6 7 REGULAR FEATURE DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT MINERALS AND PETROLEUM CONTACT LIST: Tom Dickson, manager of Geological MINERALS BUSINESS CENTRE: HEAD OFFICE: Level 8, 240 Victoria Parade, Level 15, 8 Nicholson Street, Survey of Victoria retires East Melbourne Vic 3002 Australia East Melbourne Vic 3002 Australia Wemen gets the go-ahead Tel: +613 9412 5020 Tel: +613 9637 8535 Fax: +613 9412 5150 Fax: +613 9637 8155 om Dickson, Manager of The Geological Survey of Victoria, within the Department of Natural Resources and MINERALS AND PETROLEUM DIVISION: Kourosh Mehin T Environment, will retire from the fter much speculation on the great Iluka’s extensive exploration program contin- Fax: (03) 9412 7834 Acting Manager Petroleum Resources department in February. He will be replaced promise of mineral sands in the ues to build on earlier discoveries in the Telephone: (03) 9412 5074 by Phil Roberts. Murray Basin, we now have a very Ouyen region; similarly RZM is exploring David Lea During his more than five years as GSV A significant mining project going over a broad area to add to its resource inven- Executive Director Minerals and Petroleum Mike Woollands Tom Dickson Manager, Tom Dickson guided the massive the ahead. The announcement by RZM Pty tory; Basin Minerals has identified a number Telephone: (03) 9637 8535 Manager Basin Studies Victorian Initiative for Minerals and Petroleum Ltd and Sons of Gwalia Ltd that the of deposits, with its Douglas Project to the Telephone: (03) 9412 5135 Wemen project will proceed is great news west of Horsham showing particular promise; David Wallish (VIMP), the biggest geological program in the state for decades. The program has been extended into the VIMP 2001 program with addition- for regional Victoria and, hopefully, the and Minotaur has recently announced encour- Business Manager Maher Megallaa al mapping and geological studies over large parts of the state being con- start of major new Victorian industry. aging intersections in the Casterton area. Telephone: (03) 9637 8535 Manager Acreage Release ducted. Wemen will be the first mineral sands As a further boost to exploration in the Telephone: (03) 9412 5081 development in the Murray Basin and is MINERALS BUSINESS CENTRE: Mr Dickson began his career with the NSW Department of Mines as a Victorian section of the Basin, a number of warmly welcomed by the Government. Fax: (03) 9412 5150 Bob Harms cadet from 1963 to 1967 after growing up in Broken Hill, the cradle of highly prospective areas will be put out to ten- Manager Petroleum Information the Australian mining industry. I hope the Wemen project will be a catalyst for der for exploration licences in April. The areas Kim Ricketts Telephone: (03) 9412 5053 In 1977, he joined CRA Ltd (now Rio Tinto Australia) as chief geologist further developments in the Murray Basin. include the WIM 150 & 100 deposits earlier Client Services Officer at Broken Hill, later appointed as chief geologist of the company’s opera- Importantly, the project go-ahead demon- identified by Rio Tinto and extensive areas in Telephone: (03) 9412 5103 Geoff Collins tions on the west coast of Tasmania, eventually moving to Melbourne strates that mineral sands developments in the the Mallee and Wimmera, recently required to Manager Petroleum Projects where he became chief geologist for Victoria and Tasmania. In Victoria, Basin can be commercially viable. The be relinquished by Iluka. Already there has GEOLOGICAL SURVEY VICTORIA: Telephone: (03) 9637 8531 CRA was principally involved in the search for viable mineral sands prospects for new mines and associated infra- been a good deal of interest in the release of Fax: (03) 9412 5155 deposits, locating the rich WIM and WIM 150 deposits near Horsham. structure and processing facilities in Victoria these areas. Further details of the tender are to MINERALS AND PETROLEUM He joined the Geological Survey of Victoria in November 1994 where he are now very good. Such developments can be found in this edition (page 10). Phil Roberts REGULATIONS: supervised the VIMP program. During this period, a number of significant only benefit rural and regional economies and Meanwhile, a broad-ranging study of the Manager Geological Survey Victoria Fax: (03) 9412 5152 technical advances were made by the GSV including the recognition of employment, by providing sustainable indus- future infrastructure requirements of a sub- Telephone: (03) 9412 5035 Rob King extensions of the Lachlan fold belt in Victoria trial development. Even mining in the New stantial mineral sands industry in the Murray Alan Willocks Manager Minerals and Petroleum from Tasmania and a changed perception of the South Wales and South Australian sections of Basin is underway. The study will look at fac- formation of the Grampians in the state’s west. the Basin may ultimately benefit Victoria, tors affecting future development, including Manager - Geophysics Telephone: (03) 9412 5069 Telephone: (03) 9412 5131 Mr Roberts was formerly with the GSV for eight either as an infrastructure provider or as a site water resources, transport, energy supply, George Buckland for processing facilities. telecommunications, social infrastructure, years, mainly in geological mapping before Candy Broad Peter O’Shea Manager Minerals and Petroleum moving into the fields of minerals policy, man- Minister for Energy and Resources Manager Geological Mapping Tenements agement of drilling operations, environmental Telephone: (03) 9412 5093 Telephone: (03) 9412 4778 management of quarrying and mining and min- Phil Roberts erals development. My Department will continue to provide Roger Buckley INFORMATION: Manager Mineral Resources Janne Bonnett Telephone: (03) 9412 5025 Manager Library advice, assistance and geological data to Telephone: (03) 9412 5022 Graham Gooding Fax: (03) 9412 5157 Mike Taylor joins federal department Regional Manager Ballarat Telephone: (03) 53 336 521 facilitate mineral sands developments ike Taylor, Secretary of the Department of Natural Guy Hamilton Resources and Energy, has resigned to take up the Regional Manager Bendigo position as Secretary of the Commonwealth Department The Government is strongly committed to environmental priorities and land access. Telephone: (03) 5430 4531 M of Agriculture, Fisheries and Forestry. the revitalization of country Victoria. Victoria initiated the study, which is being Chandri Nambiar He has been replaced temporarily by Richard Rawson who will be Accordingly, it strongly supports new country- carried out jointly with New South Wales, Manager Marketing Development Acting Secretary. Terry Healy will continue as Deputy Secretary Policy based industries such as mineral sands, pro- South Australia, the Commonwealth and a Telephone: (03) 9412 5061 while Michonne van Rees is Acting Deputy Secretary Operations. Mr vided of course that acceptable environmental number of mining and exploration companies and community outcomes are achieved by Fax: (03) 9412 5155 Taylor left DNRE in December after 30 years with the department in its operating in the Basin. It is most encouraging various forms after starting in December 1967. “The last three years have those industries. My Department will continue to see such co-operation between a number of PETROLEUM DEVELOPMENT: been exciting times and all NRE staff members can be pleased to have to provide advice, assistance and geological governments and industry in such an impor- Fax: (03) 9412 5156 contributed to our significant achievements,” Mr Taylor said. data to facilitate mineral sands developments. tant area of mutual interest. I look forward to “As we enter the new century I believe NRE will be well placed to face While the Wemen announcement is very the completed study forming a basis for fur- Kathy Hill the many exciting and demanding challenges that lie ahead. I am confi- important, it is by no means the only focus of ther public and private sector infrastructure Manager Petroleum Developments dent that as a management agency responsible for natural resource man- activity in the Murray Basin. Exploration in projects which will facilitate the development Telephone: (03) 9637 8530 agement, NRE is taking a progressive and integrated approach in meet- the Victorian section of the Basin is proceed- of the valuable mineral resources of the ing government priorities.” ing apace and with some excellent results. Murray Basin.

6 7 ENVIRONMENT New growth on the goldfields

Marilyn Sprague has taken the goal of environmen- plants, get advice on what to plant in certain Marilyn Sprague plans to re-introduce Bendigo’s tal rehabilitation to new heights with the successful areas and to enjoy the oasis created on the site. floral emblem, the Bendigo Wax flower (also known development of a major business aimed squarely at as the Fairy Wax flower) to the Bendigo mine site restoring land ravaged by a century and a half of One of Marilyn Sprague’s early ambitions was later this year. Picture: NRE/McCann. farming, mining and urban development. to restore viable populations of the floral emblem of the Bendigo region, the Bendigo Wax flower. Goldfields Revegetation works with VicRoads ing companies is still something of a sidelight; on restoring vegetation to new road areas and “Years ago groups used to come to Bendigo her burning ambition is to protect and expand the company also is contracted to the Army to on the train and go home with huge amounts Victoria’s box/ironbark forests and repair the restore areas of its Puckapunyal training camp. of Bendigo Wax in their arms,” she said. damaged land of the state. Telstra is another recent client, keen to repair “Now you only see it in low sprawling plants, Eroded gullies, creek washaways and degrad- the disturbance created by trenching and the nothing like the volumes we used to have. ed soils denuded of tree or vegetation cover is construction of transmission lines. “It’s declined so much through picking and an appalling commentary on 150 years of poor Marilyn Sprague believes passionately in the rabbits so I am trying to re-establish popula- agricultural practices. use of indigenous species, not only native to tions and improve the gene pool.” “It’s going to take an enormous effort if we are Victoria but to specific areas. Often plants of ever going to arrest the decline of the Box- In the early days Sprague and her three chil- the same species have adapted differently to ironbark forest in Victoria,” Ms Sprague said. dren started propagating and growing flowers conditions in certain areas. When replanting “Agriculture took away huge areas of the Box- for sale, but an excess of plants one year led an area, Sprague uses only plants grown from ironbark forests. Today the biggest threat is her to the offices of Western Mining Corp, seed collected in that same area to guarantee from subdivisions which continue to eat into which was exploring for gold in the Bendigo the integrity of the rehabilitation work. region. the remaining forest areas.” now forms a vital part of his company’s envi- To demonstrate the site specific nature of While protecting the environment is close to She called the mining company to see if there ronmental planning. goldfields flora, she has established display was any interest in her plants to assist with its her heart, Goldfields Revegetation needed to At a previous mine site at Bailieston, Mr Kelly areas at Mandurang utilising plants from par- revegetation work. pay the bills. said, work by Goldfields Revegetation has so ticular areas. That way a stock of plants from This practical need led the business into new It was the beginning of a long association with thoroughly restored the site that no evidence an area is retained, producing seed for future areas, such as minesite rehabilitation. the mining industry. now exists of the mining activity. work. Her work has been so successful that mining WMC hired her to assist with a major program A century ago, mining practices made no Her Mandurang centre also recycles its water companies now seek out Marilyn Sprague of restoring and replanting a large part of the allowance for rehabilitation, leaving large areas using biological filters and pumps to lift water before work starts on mine sites to help plan former Bendigo mining areas which the com- of central Victoria a barren and useless waste- back to a holding dam for re-use. the eventual site rehabilitation. pany had consolidated into a single large min- land. Those practices are no longer acceptable Nearby, at the Bendigo Mining site, water And far from considering mining the ‘enemy’ ing lease. and miners are keen to use the services of recycling is also a major part of the operation Marilyn Sprague firmly believes in the eco- That project is now in the hands of Bendigo experts like Marilyn Sprague to create compre- as old mine works are gradually pumped dry. nomic benefits mining can bring to weakened Mining which is currently digging the Swan hensive rehabilitation programs planned from In central Victoria the work required to fully Decline beneath Bendigo in a bid to rejuve- the very beginning of any mining project. century ago central Victoria’s box- eries and florists. Since then, the project has local economies such as those in Victoria’s restore the damaged creeks, farmland and nate the local gold mining industry. ironbark forests were devastated as blossomed into a major business, making her rural areas. The environmental message is also spreading other industrial regions is too much for one the trees were cut to fuel the steam company, Goldfields Revegetation, an integral In the early days of her operations in the mid The portal of the decline is now a flourishing into other areas. Road works also cause sig- person, but the interest being generated by A boilers of the gold mining industry part of most environmental rehabilitation pro- 1980’s, hard-line conservationists publicly swathe of native plants and shrubs which nificant disturbance of large areas of land Marilyn Sprague in restoring native flora and to provide building timber for the jects in central Victoria. criticised Sprague as a ‘traitor’ for daring to beautify the area, reduce erosion and provide where cuttings through hills are opened and could just be the initiative required to generate a habitat for many birds, insects and animals. mounds created to flatten dips. a new wave of enthusiasm. rapidly growing city of Melbourne. However, her environmental work with min- work with mining companies. Over the past few years Goldfields Clear felling, as farmers extended their hold- But environmental damage is caused not only Revegetation has worked on numerous ings, also reduced the forest cover. by miners. Victorian mine sites including those at BENDIGO MINING WINS STATE RURAL PRIDE ENVIRONMENTAL AWARD The invasion of weeds, or non-indigenous Today, only 15 per cent of Victoria’s original Nagambie, Fosterville, Daylesford, species, into the Australian bushland is also a box-ironbark forests remain with much of that Bailieston, Armhurst and Buninyong. Bendigo Mining has been judged the winner in the 1999-2000 Rural Pride Keep regrowth recovered from earlier timber cutting. major issue with seeds carried or blown from Australia Beautiful Competition in the commercial/industrial site category. home gardens creating many problems. Open pits and the creation of large heaps of Strong pressure now exists to save the remain- waste rock and mine tailings are one of the The awards were made at a gala dinner in Horsham and Bendigo Mining’s Managing ing trees and replant new areas to regenerate Now local Landcare and school groups and a major impacts of mining. Director, Doug Buerger accepted the award for ‘Outstanding Concern and Action wide range of other people come to the nine- Towards Preserving the Environment’. the forests which once covered the bulk of the With careful planning, these areas can be central goldfields region. hectare base of Goldfields Revegetation at Mr Buerger paid tribute to Marilyn Sprague of Goldfields Revegetation who manages Mandurang, outside Bendigo, to buy local landscaped, covered with topsoil and later One woman has taken the challenge to heart, resown with native species to minimise the Bendigo Mining’s rehabilitation work. He also congratulated the staff and contractors extending her desire to help rehabilitate dev- visual impact and return the land to a useful working for the company for their ongoing environmental concern. astated areas into a highly successful business. Revegetation work at Bendigo Mining’s Swan and useable state. “The award also recognises the monitoring of the company’s impact on the environment decline site in Bendigo, managed by Marilyn and the efforts made to minimise this impact,” Mr Buerger said. “The company is com- Marilyn Sprague began her efforts in growing Sprague, helped the company win a Victorian Perseverance Exploration Managing Director, mitted to sound environmental management as part of the pursuit of its business goals.” native flowers for sale to local Bendigo nurs- Rural Pride Environmental Award. John Kelly, says Marilyn Sprague’s expertise

8 9 ENVIRONMENT New growth on the goldfields

8 9 EXPLORATION NEWS EXPLORATION NEWS

IMAGES OF SEABED IN AUSTRALIA’S New opportunities for mineral sands, petroleum exploration SOUTH EAST SEAS A FIRST Australia’s $50 million Oceans Policy research program has provided clear images of parts of south-east Australia’s seabed never before surveyed. Stage one of the AUSTREA 1 seabed map- trong interest is expected in the next major new offshore petroleum the offshore part of the sub-basin, Nerita-1, ping survey, which began off Lord Howe tender of highly prospective mineral lease area in the Otway Basin has Snail-1 and Wild Dog-1. They tested the Island in December last year, has provided sands areas to be offered to the been offered for tender under the Tertiary Age Formation but were all dry. spectacular images of Australia’s continen- mining industry in April. S A supplementary release agreement (Note: Wild Dog-l is not related to the Wild tal slope and deep sea bed, including pre- The latest tender, following on from the previ- between the Commonwealth, State and Dog Road-1 gas well dicovered recently in viously unknown volcanoes, marine canyons and cliffs seen in detail for the ous release of acreage in the Murray Basin, Territory governments. the on-shore region of the Otway Basin. first time. includes the Block 4 area of the previous The permit area, designated V99-1, is part See story, page 5 of this issue). However release as well as ground covering the WIM The month-long survey was the first part of of a major package of exploration tene- the Nerita-1 well produced numerous gas 100 and WIM 150 mineral sands discoveries a co-operative seabed mapping program shows, suggesting the possibility of an made by CRA Ltd (now Rio Tinto Ltd) sever- ments to be re-released nationally by the commissioned by the National Oceans al years ago. Commonwealth and State/Territory active petroleum system. Office and undertaken in collaboration with The WIM discoveries were part of a major, Resource Ministers. Within the Torquay sub-basin there are two the Australian Geological Survey fine-grained mineral sands discovery by CRA Late last year it was announced that potential petroleum systems within the Organisation (AGSO). which contained vast reserves of material but acreage that did not attract a successful bid Crayfish sub-group and the Eumeralla The French research vessel L’Atalante is which could not be commercialised due to in the normal application round would be Formations. conducting the detailed surveys which will processing difficulties. assist the petroleum industry locate poten- offered immediately at a supplementary Within the Otway Basin generally the However, new work has fine tuned much of tial new oil and gas reserves. release. Early Cretaceous age Eumerella, Pretty the exploration effort with greater understand- Areas already mapped include the upper Hill and Casterton Formations demonstrate ing of the geological history of the area lead- The petroleum industry through the slope of the Bass Canyon off south-east ing to the discovery of smaller, but much Australian Petroleum Production and they contain source rocks capable of gener- Victoria, the Otway Basin off north-west coarser-grained material. Exploration Association (APPEA) sup- ating both oil and gas. Victoria and Tasmania, the uppermost slope The coarser-grained sands are easier to ports the initiative which is designed to Thicknesses of the early Cretaceous are off south-east and south-west Tasmania, the process and are more likely to be economical- stimulate important exploration work in more than adequate for thermal maturity volcanic seamounts south of Hobart, the ly viable than the finer-grained material. Australia’s offshore waters. with gas considered the most likely hydro- slopes of Lord Howe Island and the slope of The latest mineral sand tender also includes a the Great Australian Bight marine protected The introduction of acreage re-release will carbon type. substantial area recently relinquished by Iluka area. enhance the flexibility of the acreage Resources. The principal remaining play types within Tasmanian Senator, Paul Calvert said get- release process as it will allow industry a The total area offered in the latest package the Torquay sub-basin are tilted fault block ting a glimpse of the unexplored part of second opportunity to bid for an area or to covers 11,766 square kilometres. traps, with these play types successful else- Australia’s environment was a welcome increase a previously unsuccessful bid. The Murray Basin has become the hottest min- where in the basin. start to 2000. eral sands exploration region in Australia with It will also enhance the marketability of One of the main targets in the western por- “There are vast areas about which we know explorers moving away from the depleting and non-exclusive seismic data through longer tion of the Otway Basin is the Pretty Hill little or nothing, but modern seabed survey more environmentally restrictive areas in favor exposure to potential purchasers and pro- Formation which is interpreted to be pre- techniques now provide us with some very of the rich rewards on offer in rural Victoria, vide an opportunity for companies that sent at depths of around 2,000 metres on powerful tools which we can apply to NSW and South Australia. improve our understanding and provide a have not complied with permit conditions the Snail Terrace area. Conservative estimates suggest that there to enter into an agreement with govern- better basis on which to manage all of our Minerals and Petroleum Victoria has car- could be up to 50 million tonnes of economi- ment to maintain their good standing with- ocean uses,” Senator Calvert said. cally viable mineral sands in the Murray Basin ried out regional mapping over the area and out compromising the integrity of the work “The seabed surveys, using the multi-beam worth about $A13 billion. Late last year, six of a number of leads have been mapped, program bidding system. swathe mapping technique, will provide the first seven exploration blocks were quick- including a very large structure beneath the important baseline data to support the ly snapped up in one of the most keenly bid The V99-1 block is located in offshore Wild Dog-1 well. development of a regional marine plan for exploration tenders in Victoria. Otway Basin and encompasses the Torquay the south-east marine region,” he said. Shallow water depths of 50 to 90 metres A study of the region’s infrastructure is cur- Sub-basin. Bids for the block close on and the proximity to Geelong (80 km) sug- rently being conducted to determine what “The sustainable use of water resources is use in paints, plastics, paper, ink, rubber and April 6, 2000. The area was gazetted by the another important aspect of the study. I am textiles. Zircon is used in ceramics, comput- gest any gas discoveries could be commer- resources need to be developed if the region is Joint Authority in April 1999 but did not pleased that the opportunities for the use of ers, electronics and jewellery. cialised while oil discoveries could be to support a mineral sands industry. attract a successful bid. The study, jointly sponsored by the Victorian, recycled waste and saline water will also be The Murray Basin infrastructure study is developed cheaply. NSW, South Australian and the Federal examined,” he added. expected to be completed by mid 2000. Minerals and Petroleum Victoria (MPV) Governments, is being headed by John Mineral sands found in the Murray Basin has produced a comprehensive VIMP Reynolds, who recently retired as Execu tive include ilmenite, rutile, zircon and leucoxene. report (No. 60) on the hydrocarbon FOR MORE INFORMATION CONTACT: FOR MORE INFORMATION CONTACT: Director of the Victorian Chamber of Mines. Rutile is the raw material for lightweight prospectivity of this Sub-Basin (the report Federal Resources Minister, Senator Nick durable titanium metal used in aircraft, surgi- Kim Ricketts, Minerals Business Centre can purchased from MPV). Maher Megallaa cal procedures like hip replacements and in Minchin, said the study would examine, Phone (03) 9412 5020 It notes that there is significant untested Manager Acreage Release golf clubs. “The opportunities for creating employ- Fax (03) 9412 5150 potential remaining in the basin. Minerals and Petroleum Victoria ment in this region, in both mining and However, the bulk of rutile and ilmenite is Email: [email protected] Phone (03) 9412 5081 downstream processing. processed into non-toxic white pigment for Three wells have already been drilled in

10 11 EXPLORATION NEWS EXPLORATION NEWS

10 11 REGULAR FEATURE REGULAR FEATURE Industry News Industry News

Estimates by Bendigo Mining suggest that up Interest in the project rose initially in VICTORIAN GAS SUMMIT to 10 million ounces of gold could be con- December when Bendigo Mining’s share price BASS STRAIT GAS The third annual Victorian Gas Summit tained in new ore resources left behind by for- spiked to a recent high of 22 cents but waning FLOWS INTO NSW will be be held in Melbourne on February mer miners. interest in gold stocks saw the shares ease 16 and 17. The conference will look specifi- The Bendigo mines originally stopped due to back to around 16 cents by year end. History was made when natural gas from Bass cally at gas pricing, regulation, investment and flooding and a lack of adequate pumping tech- For more information see the website: Strait flowed northwards into the New South operations in the newly competitive environ- nology to cope with the inflow. www.bendigo.net.au/~gold Wales gas market last November. ment of the gas industry. Modern pumps can easily match the water Gas distributor, Duke Energy International, Australia’s gas industry has undergone the flows, theoretically allowing deeper ore ALLIANCE SECURES NEW DEAL supplied the gas to NSW retailers, Energy most sweeping changes in its history in the resources to be accessible to the latest mining Australia, CitiPower and Integral Energy. past two years as de-regulation and privatisa- techniques. Alliance Gold Ltd, former operator of the The gas was delivered through the ‘intercon- tion have changed the face of gas production Historically, the mined grade of gold ore from Maldon gold project, has taken a new direc- nect’ gas pipeline which links the Victorian distribution and sales forever. across the Bendigo field was 14 grams of gold tion, securing the rights to acquire up to 75 per and NSW gas grids through a link constructed cent of the equity in Encore Metals NL, owner Senior executives from gas industry players per tonne of ore, a very rich target in modern between Wagga Wagga and Albury. of the Tasmelt zinc and tin smelter project. such as Victoria’s market operator, Vencorp terms when gold mines commonly operate on Duke’s General Manager, Commercial and gas supplier, GPU GasNet will address ore grading 2 g/t or less. The project, to be built near Zeehan, Developments, Kevin Howell, said the provi- supply systems and regulatory issues as well Mr Buerger said current progress was rapid Tasmania, will be a boutique smelter to recov- sion of gas through the Interconnect was the as outline new additions to Victoria’s gas with ground conditions allowing the miners to er zinc, tin and other metals from stockpiled first step in creating true competition in the transmission system. simply install rock bolts and wire mesh to and in-situ material deposited from over a cen- NSW gas market. “Competition will be further tury of mining on Tasmania’s rugged west The Australian Pipeline Industry Association support the upper parts of the decline tunnel. developed when DEI’s eastern gas pipeline is coast. completed by September 1, 2000,” he added. Executive Director, Alan Beasley, will disuss Bendigo Mining expects to begin underground “The environmental benefits are also signifi- An offshore petroleum exploration group led by the impact of the Federal Government-driven exploration drilling in the first quarter of 2000 Encore Metals already owns the slag dumps at The 975-kilometre pipeline, costing $A450 cant with a reduction of some 122,000 tonnes Woodside Petroleum Ltd has started its offshore Otway Basin exploration program in the first reform process and case studies of specific to test their theory of fresh new orebodies the mines which are estimated to contain over million, is already under construction with of greenhouse gases per year.”. step of a major push to locate new oil and gas projects and issues will be presented. $100 million of zinc, lead and silver. teams starting work on several areas in NSW. under the old Deborah and Sheepshead work- Energy savings are achieved through modify- reserves in Victoria. The zeismic survey ship, The conference will be held at the Hilton on ings, but Mr Buerger said that was only the The project will recover the zinc as a zinc Work on the Victorian part of the pipeline ing lighting systems, switching off coal con- Western Pride, has completed its four week seis- the Park Hotel. first test. oxide fume and on-sell to refiners. began early this year. veyors when not in use, improving ash dispos- mic survey of the region aimed at providing More information and registration details can Once the decline has reached its target depth The Tasmelt regional concept demonstrates al systems, better control of water cooling sys- detailed information on possible petroleum targets deep beneath the ocean floor. The 71.5 be found on the website: www.nationalpower- of 700 metres, bulk sampling will also take how old, environmentally degraded mine tems and other process control improvements. place to determine the prospects for a viable dumps can be progressively and profitably ENERGY SAVINGS TO metre survey vessel began its survey late in forum.com. December. Woodside, with partners Boral mining operation. restored using modern environmental practices. LIGHT UP 9000 HOMES BALLARAT GOLDFIELDS JOINS Energy and CalEnergy could develop drilling SWAN DIVES BELOW BENDIGO targets by late this year. As well as generating the electricity to light up THE TECHNOLOGY RUSH the state of Victoria and many interstate mar- The $35 million Swan decline project to Ballarat Goldfields NL has revealed a major kets, the Latrobe Valley generators are also access new gold resources below Bendigo’s change in direction from its former work to leading the way by introducing major energy Since its formation in 1995, Oztrak has old gold mines is running smoothly, with the develop the goldfields of the Ballarat region tunnel passing 2,000 metres just before savings across their operations. established itself as a successful R&D inno- and joined the high technology rush, acquiring vator, recognised for the technical superiori- Christmas. Edison Mission, Energy Brix Australia, the Oztrak Group Pty Ltd in a $5m deal. ty of its product range. Hazelwood Power, Loy Yang Power and Bendigo Mining Managing Director, Doug At the company’s annual meeting in Buerger, said the decline had passed 2030 Yallourn Energy, have committed themselves Its main technology product integrates com- December, company Chairman, JB Roberts munications and GPS location devices to metres and crossed the Sheepshead line of to new practices which will reduce their power said, “The gold sector remained under consid- reef. He said the project was running on bud- consumption and sharply reduce greenhouse enable the transmission of two-way voice erable pressure during the past year. Capital and data communications via satellite, GSM get and on time. gas emissions to the atmosphere. raisings continue to be very difficult for small (Global System for Mobiles) and telecom- The decline, which so far has travelled in a Energy Efficiency Victoria’s Energy Smart explorers and developers like BGF.” munications networks. straight line angling downward, will begin to Cascade campaign has had a major impact in This had lead the company to consider diver- BGF managing director, Andrew Woskett spiral downwards in tight circles before reach- the Latrobe Valley. sifying outside the minerals area. ing the Deborah line of reef early in 2000. said, “Acquisition of Oztrak provides “We have been working with the energy man- “We were attracted to... a non-mining busi- Ballarat Goldfields with a cash flow generat- The main aim is to reach a point below the ager of each company over the past six months ness, with tangible business products, identi- ing subsidiary and a sound diversification base of former workings on both the with some outstanding results,” said Keith fied markets and sales revenue, “Mr Roberts platform from which the cyclical downside Sheepshead and Deborah reefs to allow new Fitzmaurice, Energy Efficiency Victoria said. “Oztrak was identified as such a busi- movement of mineral commodity prices can ore resources to be mined. General Manager. ness.” be weathered.” “Total identified energy savings for these five The new $35 million Swan decline project is on The Oztrak group is based at the Greenhill “It reduces the group’s exposure to time and under budget says Bendigo Mining companies would be enough to power 9000 commercial technology park, adjacent to the geological risk and commodity price Managing Director, Doug Buerger. homes each year. University of Ballarat. fluctuations.”

12 13 REGULAR FEATURE REGULAR FEATURE Industry News Industry News

12 13 VICTORIAN RESOURCES

Mildura

EXPLORATION STATUS Minerals Area available for exploration application O P Areas becoming available for exploration (Please see moratorium list for available dates) Victorian resources U Area currently under exploration (licence tenure or application) 2 4 Area unavailable for exploration (National Parks etc) Swan Hill 4 Area under exemption

MAJOR EXPLORATION PROJECTS MAJOR MINES/DEVELOPMENTS

1 GOLD Echuca 2 General area of major 17 Mt Wellington 35 Fortuna A Stawell Gold Mines Shepparton exploration project 18 North - Rio Tinto Expl 36 Golden Heritage 1 Wangaratta T B Sedimentary Holdings 19 Osprey Gold 37 Hardrock Exploration 3 C Reef Mining 6 NO COMPANY Horsham 1 4 4 20 Osprey Gold 38 Highlake Res D Goldminco C J L 1 Alcaston Bendigo 3 S Q 5 4 G 7 21 Perseverance M 39 Highlake Res E Ballarat Goldfields 2 K Benambra 2 Alliance M F Alliance Gold 4 F 22 Platsearch - Hume 40 Highlake Res A 3 4 Mansfield 3 Alliance Stawell 3 3 G Bendigo Mining 2 1 8 3 23 RGC 41 Perseverance - 3 2 2 Ararat B 2 4 Ballarat Cons H Tech-Sol Resources Pty Ltd 3 5 2 3 4 2 24 St Barbara - Minico New H 4 9 3 2 5 Centaur J Perseverance Exploration 1 3 Ballarat 1 & Melanti 42 Range River E 6 Rio Tinto K Australian Gold Devel. H N Wood's Point 4 D 1 25 Sedimentary 43 Range River L Perseverance Mining R 2 2 1 7 Crest - Goldminco 1 MELBOURNE Orbost Hamilton 1 Maddingl 26 Vic Gold - Mines & Res 44 Reef Mining M Duketon Goldfields 1 8 Duketon Gold Bairnsdale N Mount Conqueror Minerals Werribee Walhalla 9 Golden Heritage 27 Zephyr Min 45 Range River Lakes NON-METALLIC MINERALS Entrance 28 Continent - Range (Flowerdale) Geelong Yallour 10 Golden Triangle O Victorian Gypsum 11 Golden Triangle 29 Gawler Gold 46 Basin Minerals Alc Hazelw Loy P RZM & Aberfoyle Portland Warrnambool 12 Highlake Res 30 Goldminco (B-Swan Hill) Q Rio Tinto

13 Highlake Res 31 Goldminco 47 Basin Minerals (Culgoa) R Kaolin Aust 4 14 Highlake Res - Brady 32 Goldminco 48 Basin Minerals (Douglas) S Osterfield TACI 15 Intrepid 33 Goldminco 49 Reef Mining U Iluka Midwest Limited 16 Metex 34 Alliance 50 Reef Mining BROWN COAL

Production Licences Gas Pipeline You’ll find a world of information on Victorian Oil & Gas Retention Leases Oil & Other Pipeline mining, geology and petroleum in the Department of Current Permits Proposed Pipeline the Natural Resources’ Minerals and Petroleum Reference 1999 Acreage Release Under Construction WORLD Centre. Although focussed to serve members of the Proposed Joint Authority Gas Field 2000 Acreage Release Oil Field is yours mining industry, the MPRC is open to the public from 8.30am to 5pm, Monday to Friday. It is conveniently located next to the Minerals Business Centre.

special collections include:

• Expired tenement reports on microfiche (and hard copy) • 5000+ Geological Survey of Victoria Unpublished Reports • Departmental publications (old Mines Department records and reports dating from 1851)

• Victorian published geological maps, both current and historical

• Underground mine plans on microfiche

• 1600+ B&W historical Victorian mining photographs

The MPRC is now located with the Minerals Business Centre on the 8th floor, Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne. Phone: (03) 9412 5145. Fax: (03) 9412 5157. E-mail:[email protected]

14 15 VICTORIAN RESOURCES

Mildura

MAJOR EXPLORATION PROJECTS MAJOR MINES/DEVELOPMENTS

• Victorian published geological maps, both current and historical

• Underground mine plans on microfiche

• 1600+ B&W historical Victorian mining photographs

14 15 LICENCE REVIEW Mineral Licences October to December 1999

EXPLORATION LICENCES GRANTED

TITLE NO. STATUS EVENT MAP PRIMARY OWNER EVENT DATE EXPIRY DATE

EL 4431 CURRENT GRANT ROSEWOOD JOHN M BRADY 08/10/1999 07/10/2001

EL 4428 CURRENT GRANT HORSHAM IMPERIAL MINING (AUSTRALIA) NL 08/10/1999 07/10/2001

EL 4424 CURRENT GRANT MELBOURNE AUSTRALIAN ORGANIC RESOURCES P/L 15/10/1999 14/10/2001

EL 4418 CURRENT GRANT CRESWICK WILLIAM J KYTE 15/10/1999 14/10/2001

EL 4433 CURRENT GRANT DONALD GDM RESOURCES PTY LTD 15/12/1999 15/12/2001

EL 4432 CURRENT GRANT RUPANYUP GDM RESOURCES PTY LTD 15/12/1999 15/12/2001

EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED

TITLE NO. STATUS MAP PRIMARY OWNER EVENT DATE EXPIRY DATE

EL 3580 SURR DARGO GAWLER GOLD & MINERAL EXPLORATION NL 11/10/1999 11/10/1999

EL 3926 SURR MELBOURNE VARUNO PTY LTD 18/10/1999 18/10/1999

EL 4271 SURR ALBURY HIGHLAKE RESOURCES NL 15/12/1999 15/12/1999

EL 3797 SURR WEDDERBURN GOLDEN TRIANGLE RESOURCES NL 15/12/1999 15/12/1999

EL 4208 SURR ECHUCA GOLDEN TRIANGLE RESOURCES NL 15/12/1999 15/12/1999

EL 3627 SURR MAFFRA ASSOCIATED GOLD MINES OF VICTORIA LTD 15/12/1999 15/12/1999 EL 3989 SURR MITIAMO HOMESTAKE GOLD OF AUSTRALIA LTD 15/12/1999 15/12/1999 GAS NETWORK EXPANDS ACROSS VICTORIA MINING LICENCES GRANTED he network of new pipes delivering “The commitment of many large industries Stratus Networks, owned by Envestra Ltd, TITLE NO. STATUS EVENT MAP PRIMARY OWNER EVENT DATE EXPIRY DATE natural gas to regional Victoria is and commercial operations in the region to spent $2 million on the gas mains project

MIN5216 CURRENT GRANT MOE YALLOURN ENERGY PTY LTD 08/10/1999 07/10/2019 growing rapidly as a result of the use natural gas as soon as it was available which is designed initially to supply 1,000 res- deregulation of the national gas made the project viable,” Mr Clark said. idential and commercial customers in Bunyip, MIN5266 CURRENT GRANT HEATHCOTE FLITEGOLD PTY LTD 15/10/1999 17/12/2002 T industry which now allows gas to be (These include the Mildura base hospital, Garfield, Tynong and Nar Nar Goon. Envestra MIN4777 CURRENT GRANT BALLARAT KINGLAKE RESOURCES PTY LTD 06/12/1999 05/12/2009 traded across state borders. abattoirs, and the Buttercup dairy factory,) says it is adding about 12,000 customers a MIN5246 CURRENT GRANT HEATHCOTE MR FRANCIS W TYLOR 15/12/1999 15/12/2004 year in Victoria through its Stratus Networks A $30 million project to construct a 190-kilo- “Without the base load they provide, construc- MIN5280 CURRENT GRANT HOPETOUN MS MOIRA A CONWAY 24/12/1999 24/12/2009 business. metre gas transmission pipeline from South tion of the pipeline and distribution network Australia to Mildura has just been completed would not have been economic.” Mr Clark Envestra is also involved at present in a major along with a substantial amount of gas added that up to 750 consumers would be sup- project to bring gas to 14 towns in northern MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED pipeline reticulation in the city itself. plied with natural gas through the first section Victoria from Shepparton to Albury. The $60 of the distribution network which is scheduled million project involves the construction of 95 Adelaide-based utility company, Envestra Ltd, to be completed in February. kilometres of transmission gas lines and an addi- TITLE NO. STATUS MAP PRIMARY OWNER EVENT DATE EXPIRY DATE commissioned the new transmission line late “Construction of the network will be progres- tional 390 km low-pressure distribution network. MIN5257 SURR NYAH VICTORIAN GYPSUM PTY LTD 18/10/1999 18/10/1999 last year. Managing Director, Ollie Clark, said, “This is a significant milestone as it is sively undertaken over the next five years, by When complete the new network will join MIN5034 SURR CRESWICK DIAMETRIC RESOURCES (AUST) P/L 29/11/1999 29/11/1999 the first major regional project undertaken by which time about 5,000 consumers will be about 15,000 customers to Victoria’s gas MIN5084 SURR DUNOLLY THOMAS N WRIGHT 29/11/1999 29/11/1999 Envestra since it was formed in August 1997.” using natural gas.” he added. network. Victoria already has the highest level of households connected to gas of any MIN4950 SURR DUNOLLY DIAMETRIC RESOURCES (AUST) P/L 29/11/1999 29/11/1999 Envestra has taken advantage of a new subdi- “Natural gas for the Mildura region will be Australian state. MIN4717 SURR TYRRELL ANTHONY W LINKLATER 29/11/1999 29/11/1999 supplied from Moomba, with Boral Energy vision in the Mildura area by installing four ML 581 SURR DUNOLLY RUSSELL J PEACOCK 29/11/1999 29/11/1999 being the initial retailer.” kilometres of gas piping to provide a service to FOR MORE INFORMATION CONTACT: MIN4801 SURR DUNOLLY SEDIMENTARY HOLDINGS NL 15/12/1999 15/12/1999 The transmission starts with the South new homes as they are built. When complete the Mildura region gas network will spread to MIN4914 SURR DUNOLLY RONALD J CLARK 15/12/1999 15/12/1999 Australian gas grid from Berri in the Des Petherick the nearby towns of Irymple and Red Cliffs. MIN5006 SURR DUNOLLY RONALD J CLARK 15/12/1999 15/12/1999 Riverland district and travels to Mildura. Manager Corporate and Public Affairs Initially, 350 new gas consumers signed up to Last year Envestra also completed a gas trans- Envestra Ltd ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED buy gas with many more in the region expect- mission and local reticulation project in the (08) 8227 1500 Mobile 0419 516 279 ed to embrace the fuel. Cardinia shire east of Melbourne.

16 17 LICENCE REVIEW Mineral Licences October to December 1999

EXPLORATION LICENCES GRANTED

TITLE NO. STATUS EVENT MAP PRIMARY OWNER EVENT DATE EXPIRY DATE

EL 4431 CURRENT GRANT ROSEWOOD JOHN M BRADY 08/10/1999 07/10/2001

EL 4428 CURRENT GRANT HORSHAM IMPERIAL MINING (AUSTRALIA) NL 08/10/1999 07/10/2001

EL 4424 CURRENT GRANT MELBOURNE AUSTRALIAN ORGANIC RESOURCES P/L 15/10/1999 14/10/2001

EL 4418 CURRENT GRANT CRESWICK WILLIAM J KYTE 15/10/1999 14/10/2001

EL 4433 CURRENT GRANT DONALD GDM RESOURCES PTY LTD 15/12/1999 15/12/2001

EL 4432 CURRENT GRANT RUPANYUP GDM RESOURCES PTY LTD 15/12/1999 15/12/2001

EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED

TITLE NO. STATUS MAP PRIMARY OWNER EVENT DATE EXPIRY DATE

EL 3580 SURR DARGO GAWLER GOLD & MINERAL EXPLORATION NL 11/10/1999 11/10/1999

EL 3926 SURR MELBOURNE VARUNO PTY LTD 18/10/1999 18/10/1999

EL 4271 SURR ALBURY HIGHLAKE RESOURCES NL 15/12/1999 15/12/1999

EL 3797 SURR WEDDERBURN GOLDEN TRIANGLE RESOURCES NL 15/12/1999 15/12/1999

EL 4208 SURR ECHUCA GOLDEN TRIANGLE RESOURCES NL 15/12/1999 15/12/1999

16 17 COAL INDUSTRY COAL INDUSTRY

The five coal dredges currently operat- for protection in the Maryvale project area ing in the East field mine will be pro- including the native tree Eucalyptus gressively moved into the new Maryvale Strzeleckii. mine once the development is complete. This species is listed as nationally significant and the existing population will be carefully it will be imperative that the company imple- monitored during development of the mine ments sound environmental management of and throughout its operation. the site and, in particular, careful monitoring The habitat area where the species currently and management of dust and noise emissions grows is in a swampy region at the north end he $A200 million development of the during the river diversion and operation of the of the Morwell West drain. Maryvale brown coal mine in the mine. Latrobe Valley has moved a step closer In his assessment Mr Thwaites recommended “Whilst the Minister’s assessment represents T following completion of the environ- that Yallourn Energy provide measures to the major step in the environmental process, it mental assessment process late last year. ensure ‘no net conservation loss’ of swampy is now necessary to work with the relevant riparian forest and damp sands, herb-rich Victoria’s new Planning Minister, John government authorities to finalise the works foothills forest communities and Eucalyptus Thwaites, gave the go-ahead in December fol- approval conditions before we can start work.” Strzeleckii and to re-establish areas disturbed lowing assessment of the environmental Coal from the Maryvale mine, as with during construction. effects of the project. Yallourn Energy’s other mines, will be used in He also recommended a conservation man- The new mine will replace the existing the Yallourn W power station which produces agement plan be prepared as part of the envi- Township and East Field mines which are 25 per cent of Victoria’s electricity require- ronmental management plan for the Maryvale nearing the end of their lives. ments. development. Maryvale will produce coal for power genera- The new mine will operate in similar fashion tion for at least another 27 years, ensuring to the existing East Field mine where five Victoria retains its low-cost electricity supply. dredges are currently employed, one removing Its operator, Yallourn Energy, now only requires overburden to expose the coal and the other FOR MORE INFORMATION CONTACT: formal work plan and environmental approval four extracting the brown coal. Tony Villella before construction of the new mine can start. To move into operation at Maryvale, the Manager Public Affairs These approvals are expected by mid-year. dredges will be progressively moved from the Phone (03) 5128 2363 The Maryvale project involves an 8-kilometre East Field into the Maryvale Field by 2004 Fax (03)5128 2648 diversion of the Morwell River to provide and excavate in a southerly direction until access to the underlying coal reserves. 2027. Coal will be transported by conveyor from the dredges to the raw coal bunker near the power station. Yallourn W power station generates 9500 Green ‘go’ for Maryvale gigawatt hours of electricity a year while the existing East Field mine, which produces around 18 million tonnes a year, is one of the Construction of the river diversion and the largest coal mines in Australia. associated mine development will take up to The existing mining and power generation four years with first coal to be extracted in work provide employment for around 600 2004. people. It will be the second time the Morwell River The development of the Maryvale mine will has been diverted for mine works. generate a major economic boost to the The new diversion will allow mining to con- Latrobe Valley with the bulk of the $200 mil- tinue from the existing East Field mine kilometres upstream from the junction of the Final approval for the development of Yallourn lion to be spent locally on goods and services directly into the Maryvale Field while min- Latrobe River (see aerial map). Energy’s $200 million Maryvale brown coal required to construct the mine and river diver- ing the best coal which is located in the mine in the LaTrobe Valley is imminent after the sion. The project will also demand high envi- Overburden from the excavation of the new project won the approval of Victorian Planning vicinity of the current course of the Morwell river channel, which will follow the course of Minister, John Thwaites, in December. ronmental monitoring and protection stan- River. an existing gully, will be placed into screening dards but Yallourn Energy has already demon- The new diversion will also allow a replace- mounds east and south of the diversion and minimal impact on water quality, water flow, strated its commitment to sound environmen- ment of an existing diversion in which a 3.7 within the existing mine. flora and fauna. tal practices. kilometre stretch of the river is directed into The screening mounds will be up to 25 metres The Minister largely endorsed recommenda- In 1996 it became the first Victorian firm to be an underground pipeline. high with slopes of one (vertical) in three (hor- tions of an independent panel for sound envi- granted accredited licensee status by the This will recreate a more natural and mean- izontal) or less. ronmental management of the site, particular- Environment Protection Authority. dering river course and associated habitat, The excavation will be conducted by large ly the monitoring and management of dust and Several key species of fauna have been listed providing the opportunity for future recreation excavator and dump trucks with construction noise emissions during construction of the facilities along the course of the river. occurring over summer and autumn through a river diversion and the later operation of the four-year period. mine. An aerial view of the Yallourn Energy min- The new diversion will begin 750 metres ing and power generation operations shows downstream from the existing eastern railway In his assessment, Mr Thwaites said he was Yallourn Energy’s Maryvale Project Director, the major new Maryvale field development bridge and rejoin the East Field diversion two satisfied that the river could be diverted with Graeme Offer, said, “In developing Maryvale area and associated river diversion.

18 19 COAL INDUSTRY COAL INDUSTRY

18 19 NATIVE TITLE Native title agreement signed

allourn Energy has signed Victoria’s gered the right to negotiate process under the September 1 last, Yallourn and the Gunai first native title agreement for Native Title Act 1993 (Commonwealth). /Kurnai people announced that they had Y a major mining project. Yallourn Energy began discussions with the reached agreement and sought a consent determination from the NNTT. The agreement, between Yallourn Energy and Gunai/Kurnai people in October 1997, to the Gunai/Kurnai people of Gippsland, allows involve the community in the project as early The 30-year confidential agreement gives the the development of the $200 million Maryvale as possible. In June 1998 the Victorian go-ahead to the Maryvale Field Project estab- Field Project to proceed (see accompanying Government issued a section 29 notice which lishes a trust fund to help educate and train story). The agreement follows two years of initiates the right to negotiate process under the local young Aboriginal people. negotiations between Yallourn, the Gunai/ Native Title Act. However, discussions A joint management plan has also been devel- Kurnai people and the State of Victoria. between the parties were not resolved and on oped for cultural heritage and sites of Aboriginal May 28, 1999, Yallourn Energy referred the significance. Yallourn will also make a contribu- Yallourn Energy plans to use the Maryvale matter to the National Native Title Tribunal tion towards establishing a keeping place to pre- Field by 2005 as the company’s major coal (NNTT) for arbitration. serve and exhibit items of significance. supply, producing 18 million tonnes a year, until 2027. Yallourn’s application for a new Negotiations between the parties continued in Yallourn Energy’s Chief Executive, Mike mining licence including Crown land trig- parallel with the arbitration process and on Johnston, said, “This is an important step forward for us in terms of the project. We also see it as very much the start of a long-term relationship between the company and the Kurnai people.” Gunai/Kurnai Council of Elders Chairman, Terry Hood said, “This agreement shows that Aboriginal people are not anti-development. We just want to share in the benefits of that development and have a say in how it affects our country.” While the end result in the process has been positive, it serves to show that negotiated outcomes are better for all parties. In this case, the arbitration process imposed considerable costs and workloads on all parties to achieve an outcome that could have been achieved through negotiation alone.

Left: Yallourn Energy Chief Executive, Mike Johnson (right) and Chairman of the Gurnai/Kurnai council of Mediation offers best outcome elders, Terry Hood, signed a native title agreement allowing the $200 million Maryvale project to proceed. Right: The Yallourn Energy Ð Gurnai/Kurnai native title agreement was celebrated by the ediation of a native title claim has of concern and matters of common interest. priate to put the applicants and respondent Watbalimba Dance Group at the signing ceremony. also begun in Victoria’s west where Wotjobaluk claimant, Peter Kennedy, said, parties in the ring, so to speak, before they M the Wotjobaluk people are seeking to “We are in the process of getting together with even knew what they were fighting about.” resolve issues surrounding a land and interest groups and we are not and do not The new process means that the native title water claim. intend to hold anything back. applicants and numerous other parties are The Wotjobaluk people, who are represented “We are committed to the process of media- informed about the issues and aware of the in their claim by the Miriambak Nations tion. It is the best way to go in the long run to mediation process before they meet, Mr Victoria registers its first ilua! Aboriginal Corporation started a series of reach an agreement. No-one has the time or Hebblewhite said. meetings in late November. money to spend five years in the court process. He added that the recent Gurnai/Kurnai agree- The Wotjobaluk claim covers crown land in It is much better to have an outcome through ment with Yallourn Energy represented the n Indigenous Land Use Agreement Trust, the Kirrae Whurrong Native Title tres off the coast near Port Campbell, through the areas loosely bordered by the towns of mediation.” successful results which can be achieved (ILUA) for BHP Petroleum’s proposed Group, and the State Government are all co- Port Campbell National Park, to a gas treat- Edenhope, Ararat, Wycheproof, Birchip, The mediation process has been made possible through a negotiated outcome. A Minerva gas field development has signatories to the agreement which represents ment plant near Two Mile Bay. Ouyen and Murrayville with about 500 through amendments to the Native Title Act been registered by the National Native approval under the Native Title Act 1993 to respondents having registered as having a pro- which previously required an initial ‘plenary’ FOR MORE INFORMATION CONTACT: Title Tribunal. enable the $200 million Minerva Project to prietary interest affected by the claim. conference between the interested groups. FOR MORE INFORMATION CONTACT: The agreement is the first ILUA to be regis- proceed. The mediation process will be presided over Miriambak Nations Chief Executive Officer, Ross Hebblewhite, Chief Executive Officer tered in Victoria under the amended Native The project will involve the construction of a Joanna Halls, DNRE by Professor Doug Williams, QC, a member Ross Hebblewhite, said, “The plenary confer- Miriambak Nations Aboriginal Corporation Title Act 1993. system of pipelines to transport gas from the Phone (03) 9637 8535 Fax (03) 9637 8155 of the National Native Title Tribunal. Initial ence was often a problematic stage in the Phone (Bus Hrs) 9326 3900 BHP Petroleum, the Framlingham Aboriginal Minerva gas field which lies about 11 kilome- meetings will be held separately to outline areas mediation process. It was not always appro-

20 21 NATIVE TITLE Native title agreement signed

20 21 SAFETY REVIEW New proposals to improve mine safety

Graeme McLaughlan, Chief Mining Inspector at Minerals and Report the Australian Minerals Council identified that an average of almost twenty five Petroleum Victoria, reviewed the development of health and safety fatalities had occurred in the industry each legislation for the Victorian mining industry at a safety seminar year during the preceding decade. In the same survey the industry’s lost-time held during Mining Week. Here is an edited version of his paper. injury frequency rate, while showing consistent improvement during the period, was estimated to have plateaued at approximately fif- teen (lost-time injuries per million man hours worked). ining legislation in Victoria, in The Act contains general duty of care obliga- common with other areas around the tions and provides for approved codes of prac- Whilst on a smaller scale, the lost-time injury the operator having to demonstrate compli- M world, has historically been enacted tice for use in support of the regulations. frequency rate patterns in Victoria show similar trends to those of the national industry, ance; as a result of significant accidents, The Dangerous Goods legislation (under a significant difference can be cited in the ¥ Provides a framework for all operators, par- incidents or disasters. review through 1999) is generally prescriptive fatality rate of zero in Victoria for the last ticularly medium to small operators, to and detailed in nature. The original purpose of the State’s mining leg- six years. comply with the safety management system Mine safety competitions help develop on-the- The EID Act has relatively few safety-related islation was to ensure a degree of certainty of While an improvement trend has been identi- currently required under the relevant legis- ground skills safety but the move to standardise provisions and largely focuses on titles and safety legislation and regulations between the tenure. fied, and may be attributed to the efforts of the lation; other on-site issues. states is aimed at improving the safety culture in This was followed by the need to make mines industry, industry bodies and government ini- ¥ Provides sufficient prescriptive guidance for the mining industry. safe for people to work in and be free from Metalliferous mines and coal mines fall under tiatives, the estimated fatal and lost-time smaller operators in areas of high risk in associated disease. the jurisdiction of the MRD act. injury rates within the industry remain unac- quarrying (eg: explosives); and identify and manage risks to such an extent The inclusion of health and safety regulation Separate health and safety subordinate legisla- ceptably high. ¥ Provides a balance between prescription that mining activity can be undertaken in such was secondary and the development of the tion exists for metalliferous mines. The unacceptable impact of poor health and and performance-based regulations. a manner that the risk of harm to a person’s legislation has essentially been reactive, rather health and/or safety is reduced to as low as is These regulations contain some duty of care safety performance on the industry, employees Given the relatively low-risk profile of extrac- than pro-active. reasonably practicable, and within acceptable and process and exposure standard legislation. and the public is recognised by industry tive industry, compared say to an offshore limits. Victorian mining operations are currently sub- However, the majority of the regulations are through it’s industry bodies. petroleum facility, full performance-based ject of wide consultation through the state. very prescriptive and relate to the control of These include the various State Chambers of To control risk to this level, the development ject to several Acts and subordinate legislation style regulation is probably inappropriate for The new legislation may introduce many new specific hazards. Mines and the Minerals Council of Australia, of management and operating systems that (regulations). extractive industries. elements to Victorian health and safety regula- and by government through the Australian and incorporate the following elements will be The legislative divide is based on the defini- Coal mine safety is controlled through the However, mining, particularly underground tion including:- New Zealand Minerals and Energy Council necessary: tion of ‘mineral’ and broadly separates the Mineral Resources (Health and Safety in mining, faces a different set of hazards to ¥ General duty of care applicable to all those (ANZMEC). ¥ Identification, analysis and assessment of mining of stone (extractive industry) and min- Large open cut Mines) Regulations 1995. those of the extractive industry. involved in the industry to manage risks; erals (metalliferous and coal). These regulations are essentially performance One of the outcomes of the 1998 meeting of hazards; ANZMEC Ministers was the formation of a It is anticipated that the review of the ¥ Inclusion of senior company executives in The principal legislation under which com- based and incorporate the general duty of care ¥ Establishment of control measures; national mine safety taskforce whose primary Victorian mining health and safety regula- accountable positions; mercial extractive industries (quarries) are principles. ¥ Avoidance of unacceptable risk; objective is the establishment of a national tions will introduce new legislative initiatives ¥ Involvement of employees at the mine sites permitted to operate are the: strategic regulatory framework to guide gov- to ensure the acceptable management and in safety and health issues; ¥ Monitoring of the level of risk; ¥ Extractive Industries Development Act Why regulate ? ernments’ contribution to realise a safe and control of risks to health and safety in the ¥ Both prescriptive and performance-based ¥ Review of the effectiveness of the control 1995 and associated regulations, Regulation benefits members of the industry healthy mining industry in the most efficient, industry. regulations and guidelines; and measures; and ¥ Occupational Health and Safety Act 1985; engaged in mining activities (including the effective and timely manner. The key elements of the proposals, the man- ¥ More realistic penalties for non-compli- ¥ Appropriate corrective action. and the workforce) and the public. The current review of the Victorian extractive agement of risks and the establishment of for- ance. The achievement of the industry’s aim of ¥ Dangerous Goods Act 1985 The benefits lie in protection against risks, industry’s health and safety regulation is well mal safety management plans, will provide a The industry and government will have to injury and disease free mining operations which may be broadly categorised as risks to The principal legislation under which mines into the consultation phase. platform for progressive improvement in mine work together to ensure that quality manage- should be seen as a journey rather than a des- health and safety; financial risks; risks arising (both metalliferous and coal) are permitted to The primary aim of the proposed extractive safety into the next century. ment systems are introduced and implemented tination. The journey will be rather steep in from a lack of adequate information, and risks operate are the: industry legislative changes is to establish a Major issues for the new legislation will at mine sites. places. of criminal activity. ¥ Mineral Resources Development Act 1990 regime that:- include an emphasis on the ‘duty of care’ of In Victoria, there is considerable variation in The introduction of a new legislative model and associated health and safety regula- Regulatory controls are justified only where it ¥ Provides a framework for the active man- all those participating in the industry, the the size of mining operations - from the large will provide a contribution to the management tions; and the can be shown that an unacceptable degree of agement of hazards and risks arising from implementation of safety management sys- open cut coal mines in the Latrobe Valley, of the risks inherent in mining activities. risk results from unregulated activity. ¥ Dangerous Goods Act 1985 quarrying, where those hazards and risks tems and control of hazards and employee through medium-sized underground opera- The co-operation of all parties involved in the The OH&S Act has primacy on extractive The stringency of the controls must, in all impact on people and/or the environment; consultation and the balance between perfor- tions like Stawell, all the way to the one-man industry in the development of the legislation (quarry) sites. cases, be commensurate with the level of risk. ¥ Ensures a consistent approach to regulation; mance-based and prescriptive regulation. surface prospecting operator. will be paramount. This Act falls under the jurisdiction of the The record of the mining industry in the area ¥ Removes duplication; The new legislation will allow for the devel- The new legislation and the inspectorate will The continuation of that co-operation as the Victorian WorkCover Authority, but is admin- of health and safety is of major concern to all ¥ Establishes a consistent approach to opment, and/or the adoption of guidelines and have to be flexible enough to deal with this legislation is implemented will be of foremost istered at site level by officers of the Minerals stakeholders. enforcement that changes the focus from codes of practice. range of situations. benefit in identifying and managing the risks and Petroleum Regulation Branch. In its 1997/98 Safety and Health Performance the regulator having to prove compliance to The contents of the proposals will be the sub- The core of the legislation will be the need to to an acceptable level.

22 23 SAFETY REVIEW New proposals to improve mine safety

22 23 SPECIAL FEATURE SPECIAL FEATURE ‘Rubbish blanket’ may hide new ore bodies

Regolith studies are a relatively new tool larger, though weaker, than that of the parent to the first generation of Australian geologists Mesozoic landscape was severely dissected ore-body. These dispersed geochemical that had been trained there, it was a curse that during the Australia-Antarctica break-up. that will help mineral exploration as well haloes may be 200-300 times the size of the obscured the real rocks. Several cycles of erosion followed the break- as being valuable for landcare, parent ore body and thus permit a wide-space Australia by necessity has now become one of up and left fluvial placer gold deposits sampling program that is rapid and cheap. the world leaders in regolith studies —with the (derived from nearby quartz-reefs in the agricultural and salinity-control programs. Understanding the regolith and taming it to deeply weathered and flat landscape of Western bedrock) scattered across the present land- David Taylor, a Geologist with the become a friend rather than an enemy presents Australia being a fertile training ground. scape. In historical times these placers were an exciting new trend in Australian exploration. The Cooperative Research Centre for extensively mined, but today they would Geological Survey of Victoria, explains. Regolith studies gained prominence in Western Landscape Evolution and Mineral Exploration mainly complicate exploration as transported Australia in the 1980s by helping find large (CRCLEME), which was founded by the anomalies. ost Victorian explorers would love to hidden deposits like Bronzewing and by recog- Australian Geological Survey Organisation The landscape evolution which produced the find a new ‘million-ounce gold nising that some ore-bodies such as (AGSO), the Commonwealth Science and placers also generated a variety of bedrock M deposit’ like Bendigo, Stawell or Boddington are actually hosted by the regolith. Industry Research Organisation (CSIRO) and regolith profile — from pallid clay to ferrug- Ballarat. To date however, most companies Calcrete sampling, one of the offshoots of the University of Canberra and the Australian inised saprock —whose distribution affects have had to be content with picking over regolith studies, helped fuel the Gawler National University, has encouraged regolith the sample media available and the assay tech- the near-surface remnants of such Craton ‘gold rush’ in South Australia several studies and regolith-landform maps are cur- nique required. historical goldfields, or gaining expensive years ago. People such as Simon Bolster of rently being produced for many parts of There are high-standing areas of bedrock access to their untouched deeper levels. Regolex Pty Ltd in Perth say that “as we Australia, in addition to numerous special which have remained relatively unweathered approach the 21st century, the regolith is now investigative projects. and are uncontaminated by transported gold The mineralised quartz-reefs systems in the an asset to the exploration industry as it has While regolith studies in Victoria are in their liberated from the Cainozoic deposits. Palaeozoic bedrock of western Victoria are successfully hidden ore deposits from the gen- infancy, they should be boosted significantly attractive high grade targets, but how do you find Low-standing areas of bedrock exhumed from erations of explorers who have preceded us!”. by recognising that it is the subdued topogra- a new example of these relatively narrow ore- below the Cainozoic deposits range from high- phy of western Victoria, where regolith devel- bodies given that the area has been explored for Nigel Radford of Normandy Exploration Ltd ly weathered to almost fresh and would be opment and cover is greatest, where the bulk over 30 years by modern geochemical explo- noted at the Regolith 96 conference in more likely to be contaminated by transported of the state’s proven mineral wealth also lies. ration with only limited success? Brisbane that the regolith holds important gold. In addition, large areas of the goldfield Most previous regional exploration has con- clues to the location of the next headframe but A large proportion of Victoria’s historical gold — an area characterised by million ounce gold centrated on stream sediment or soil sampling that many geologists still don’t take enough production was won from the mining of buried deposits — have been masked from any previ- of the areas of exposed bedrock and has repli- interest in it, concentrating instead on the few ‘deep lead’ river channels or the fabulously ous exploration by relatively young basalt cated, although in a more sophisticated man- available outcrops of hardrock geology. rich, shallow gold rush diggings —all material flows that are generally only tens of metres ner, the canny exploration of the old timers. The newsletters of Australian Laboratory that could be classified as transported regolith. thick but locally aggregate to over 100 m. It is a tribute to the ingenuity and perseverance Services Pty Ltd, particularly volume 4 num- The present landscape of the western Victorian Although the regions where the bedrock is of the old timers that essentially no new ber 1 entitled ‘Exploration in the Australian goldfields dates back to the start of the exposed are the obvious exploration target, it quartz-reef hosted goldfields have been dis- Regolith’, provide a good summary of the Cainozoic period when a deeply weathered is perhaps the covered areas that provide the covered in Victoria since their time. importance of the regolith to exploration and recommendations for sampling strategies. The relatively narrow width of the quartz-reef systems and the large amounts of young sedi- As well as helping the minerals industry, the mentary and volcanic cover make finding a study of the regolith will also aid landcare, completely new ore body like trying to find the agricultural and salinity control programs proverbial needle in the haystack. So what is since soils and groundwater are some of the the quickest, best and cheapest way of finding complex, interacting facets that make-up, con- the needle? trol, and are controlled by, the development of To most geologists it is the junk on top that Above: Mapface of the Ballarat 1:100 000 the regolith. Rather than the painful exercise of slowly, obscures a clear view of the rocks’. A more regolith-exploration map showing the variably methodically and expensively looking for the scientific definition of the regolith is the blan- weathered bedrock in blue (the deeper the blue the As an ancient continent, much of Australia is needle itself, perhaps whole handfuls of the ket of weathered material mantling the fresh greater the weathering), granites in pale red, the replete with a thick rind of regolith —far dif- hay could be quickly sifted for telltale signs of rock. The regolith includes in-situ weathered extensive young volcanic cover in orange and the ferent from the young, hilly landscape of young transported cover in grey and green. rust staining to show where the needle lies. bedrock as well as transported surficial mater- North America and Europe that was scoured Enter the regolith. ial such as colluvium and alluvium. by extensive glaciation in the last ice ages. Regolith is a Greek word meaning stone blan- Most of our precious groundwater resources regions where a surficially-concealing barrier Classical geology studies, born in the northern ket and has been described in tongue-in-cheek flow through the regolith and it is the top most may be hiding completely new ones. hemisphere, virtually ignored the regolith and, fashion by Cliff Ollier and Colin Pain in their layer of the regolith which forms the soil upon If properly understood, the regolith can aid which our agriculture depends. Now that most rather than impede exploration since dispersed excellent textbook ‘Regolith, Soils and Right: A complex regolith scenario with pallid Landforms’, as ‘the loose, weathered, ill- of the exposed bedrock in Australia has been geochemical haloes in the regolith, the rust- bedrock saprolite exposed in old shallow diggings defined rubbish near the earth’s surface that explored for the obvious ore bodies, the stained hay in the needle-in-the-hay-stack from beneath a protective duricrust of auriferous nobody wants to deal with. areas of regolith have come to represent analogy, can produce a signature many times transported gravel.

24 25 SPECIAL FEATURE SPECIAL FEATURE ‘Rubbish blanket’ may hide new ore bodies

24 25 SPECIAL FEATURE ENVIRONMENT

Pallid bedrock saprolite overlain by a ferruginised marine sand, capped by a gray topsoil of possible windblown origin. What and where do you sample here to find clues for bedrock mineralisation? Storage guidelines for Mine Tailings

¥ an interpretation of the processes that oper- Minerals and Petroleum Victoria is developing ated to produce the landscape and the regolith units within it. new guidelines for the storage of tailings which A number of regolith and groundwater map- will help eliminate hazards in both dam safety and ping projects are already available across much of western Victoria from the University the regional environment around the tailings site. of Melbourne and the University of Ballarat, many sponsored by GSV. MPV’s Terry McKinley presented a paper on the This pioneering work is helping to unravel the issue to the Victorian Mining Week environment history and development of the Victorian regolith and should prove valuable for follow seminar sponsored by the Victorian Chamber up investigations such as the proposed GSV of Mines. Here is an edited version. maps or even directly to company exploration. Under the auspices the Victorian Institute of Earth and Planetary Sciences (VIEPS) Bernie he storage of mine tailings can present Joyce of Melbourne University coordinates a significant dam safety and environ- short post-graduate course on the mapping mental hazards if the tailings and geochemistry of the Victorian regolith. T repository is not designed, constructed Participation in this course is an ideal oppor- or operated properly. Often, tailings and tunity for industry to capitalise on the present waste rock contain significant contaminants knowledge. such as arsenic and cyanide, or are The Minerals Council of Australia also is spon- sulphidic and potentially acid-producing. soring a collaborative program termed the National Geoscience Teaching Network Currently, there are no integrated guidelines in between the three Melbourne-based VIEPS uni- Victoria for the design, construction, opera- versities, the two Canberra-based universities tion, decommissioning and eventual rehabilitation of tailings storage sites, but the issue is within Victoria are currently being developed. Careful design, construction and operation is associated with CRC LEME, and the Australia- essential to construct tailings repositories which wide economic key-centre universities. being examined in detail. The three main steps planned in the develop- are safe, perform as expected and which can This network will allow the Victorian univer- Guidelines covering all aspects of tailings stor- ment of these guidelines include: later be rehabilitated to reduce local environ- most excitement for future exploration finds. It is envisaged that an improved series of maps sities to tap more directly into the accumulat- age, including departmental administration, ¥ Carrying out a detailed literature review mental impacts. incorporating digital elevation models, mag- ed expertise of the CRC LEME and the eco- with emphasis on existing guidelines and Although more difficult to explore, the poten- sis of these comments. The guidelines may netic and radiometric data from recent airborne nomic key centres. policies, significant developments and tial rewards of a completely new ore-body include: with its enriched supergene cap in place, are surveys, the depth of the cover sequences from It is obvious from other Australian states that existing technical papers; ¥ A guide to justifying the type of a tailings greater. Underneath the extensive basalt plains drilling databases, and the locations of previ- mineral exploration and the need to husband ¥ Producing a discussion paper setting out around Creswick there may be totally hidden, ous exploration sampling from recent GIS and manage our soils and groundwater will regulatory approaches used elsewhere and storage facility (TSF) proposed over other pristine ore-bodies leaking their geochemical releases, will eventually be produced to cover foster the demand for regolith studies in options for regulation in Victoria; methods of disposal; the western goldfields region. Victoria. The collation of diverse data sets signature into the deep-lead aquifers that flow ¥ Developing guidelines for the approval of ¥ Environmental risk assessment; These maps will provide the broad brush region- such as airborne radiometric surveys, drilling beneath the basalt. storage of mine tailings (including justifica- ¥ Geotechnical investigation; al information necessary for companies to devise data and previous company sampling into Some work by the CSIRO Division of tion for the type of tailings storage proposed), their orientation surveys and their sampling and manageable GIS datasets will make the task of ¥ Design (possibly with independent audit Exploration and Mining shows that sampling investigation, design, construction, operation, assay strategies during exploration. regolith studies easier. requirements); of the groundwater to very sensitive detection monitoring, decommissioning and final reha- Regolith maps incorporating these data sets ¥ Construction methods; limits may be a useful technique in exploring Thus the maps should fulfil many of the basic bilitation. The guidelines will include objec- should make the job of planning future explo- for such hidden deposits. requirements for mineral explorers such as: tives and good practice principles. ¥ Quality assurance testing; ¥ description of the surface material likely to ration surveys easier and boost the likelihood Elsewhere the thin, extensive surface veneers The discussion paper will be circulated with- ¥ Operating and monitoring requirements, be encountered such as leached, pallid of discovering ore-bodies that probably lie of Cainozoic gravels or Murray Basin sedi- in government and interested external organi- including preferred methods of tailings dis- saprolite or ferruginous lag over slightly- concealed beneath the substantial amounts of ment may be covering similar ore-bodies. thin cover. sations for comment. tribution within the containment during Have these ore bodies developed a weak geo- weathered bedrock; operation; and ¥ delineation of areas of transported versus Development of Draft Tailings Storage chemical halo up into that cover? ¥ Detailed methods of storage closure and areas of in-situ regolith; FOR MORE INFORMATION CONTACT: Guidelines for Victoria will follow the analy- The planning and execution of future mineral ¥ the depth to bedrock where it is extensively final rehabilitation. Peter O’Shea, Manager Geological Mapping exploration will be enhanced by the results of covered by basalt or thick accumulations of The guidelines could also include reference to Phone 03 9412 5093 the regolith studies just beginning in Victoria. Cainozoic sediments and the location of the Top left: Properly managed tailings the geochemical characterisation of the mine The Geological Survey of Victoria recently major groundwater aquifers in this cover; Also look at these websites: dumps can be successfully rehabilitated. waste including acid-producing or potentially produced its first “prototype” 1:100 000 ¥ the extent of old workings, known mineral- leme.anu.edu.au or www.agso.au Left: Consolidated tailings can be landscaped to acid-producing rock and the acceptable range regolith map covering the Ballarat area. isation and previous sampling; blend with local landforms to minimise visual impact. of disposal methods in various parts of Victoria

26 27 SPECIAL FEATURE ENVIRONMENT

26 27 ENVIRONMENT

New methods of tailings disposal within dams, including newly developed paste technology, allows dramatic reductions in waste water han- dling and improvements in water recycling.

to look at climate and risk-based factors. A guide to rehabilitation bond calculations and resulting bond levels on the TSF will be provided. The key objectives of the TSF guideline will be environmental responsibility and safety through minimum requirements that are objective-based and self-regulating. Where possible regulation is not meant to be prescriptive. At a mining site, the mine tailings generally represent the most significant environmental impact and, if not managed correctly, represent a significant safety hazard. Keeping this in mind, the TSF proposal must New processes, such as paste technology, can teristics of the tailings. firstly address the environmental significance also lead to improvements in water recycling, and impacts on the site and, secondly, the safe- For instance, sulphidic tailings may result in minimising water use, minimising land distur- ty hazards. acid generation or there may be remnant bance and progressive rehabilitation. cyanide in the tailings. The principal influencing policies will be co- Similar to the hierarchy for waste manage- regulation and objective-based reporting, The guideline will provide information for ment, a hierarchical order of TSF options waste minimisation and the protection of the companies to develop tailings management could be assessed for justification. beneficial uses of water and groundwater. systems and could require reporting in any or The later three policies are some of the key When assessing these options, the whole of all of the following areas: environmental guiding principles of the life cycle and beyond would need to be con- Risk assessment: Identification of the most Victorian Environmental Protection Authority sidered. cost-effective means of satisfying design, There’s a new force in developing (EPA) in waste management. It is considered essential that operators operating and closure criteria in line with Victoria’s mining and oil and gas The Environment Protection Act (1970) pro- analyse their tailings storage requirements agreed levels of environmental and safety risk. industries. effectively and ensure the chosen option is the Construction Requirements: A report detailing vides environmental protection policies that It’s called VIMP 2001 (the Victorian give the direction needed for maintaining optimum long-term solution. the conditions exposed during construction Initiative for Minerals and Petroleum for environmental quality. Options, not necessarily in order of hierarchy, and how the design assumptions were met or 2001 could include: why they were varied. the 21st Century) and has already led to The main environmental policies that must be major new discoveries, particularly of complied with for the construction of a tail- ¥ Underground backfill disposal; Operational Requirements: This could include gold, base metals and world-class ings storage facility are: an operating procedures manual suited to the ¥ In-pit disposal; deposits of mineral sands. ¥ Industrial Waste Management Policies ¥ Paste particular TSF. Funded by the Victorian State (IWMP); - Underground, in pit or surface disposal Inspections and Reporting: The frequency of inspection reporting would depend on the type Government, the VIMP 2001 program ¥ Waste Minimisation (EPA 1990); and - Reduced slurry water and size of the TSF. These reports could be ¥ State Environment Protection Policies uses the latest technology to provide - Cement addition; provided to MPV and might in part replace (SEPPs). industry with extensive geophysical and ¥ Central thickened discharge; current inspection by the department. geological data. Industrial waste management policies control ¥ Co-disposal; Rehabilitation Reporting: Reclamation and the management of industrial waste that may New information is being added closure plans could be updated and audited by be harmful to humans and the environment. ¥ Surface embankments (Hydraulic discharge continuously, particularly from airborne third party specialists. Mine tailings are considered to be equivalent - Subaqueous or subaerial deposition) geophysical surveys both on and to industrial waste. across valley storage or paddock impound- The key objective of the guideline will be to offshore, broadening the knowledge of ment; provide a framework for environmental In assessing waste management options, the Victoria’s sedimentary basins and responsibility and safety. EPA seeks to achieve: ¥ Single stage construction to full height; identifying exciting new target areas of ¥ Waste avoidance and/or reduction; ¥ Staged construction mineralisation. - Downstream method ¥ Waste reuse, recycling and reclamation; FOR MORE INFORMATION CONTACT: Contact Minerals and Petroleum Victoria ¥ Waste treatment and, finally - Centreline method Terry McKinley, for details. You won’t be disappointed. ¥ Waste disposal. - Upstream method Minerals & Petroleum Victoria Minerals and Petroleum Victoria The principles of this policy will be adopted Justification of the disposal method Phone (03) 9412 5133 Level 15, 8 Nicholson Street would take into account the chemical charac- within the guideline. East Melbourne Victoria 3002 Australia Tel: +613 9637 8535 Fax: +613 9637 8155 28 Website: http://www.nre.vic.gov.au/minpet/index.htm ENVIRONMENT

New methods of tailings disposal within dams, including newly developed paste technology, allows dramatic reductions in waste water han- dling and improvements in water recycling.