CET Quarterly News issue 20 June 2012 Chemical Characteristics, Geodynamic Settings, and Petrogenesis of Gold-Ore-Forming Arc Magmas Robert Loucks1 Introduction This article examines the linkage between variations of geodynamic setting at convergent plate margins and variations of magma chemistry in gold-ore-productive arc segments and epochs, as compared to gold-unproductive ordinary arc magmatism in intra-oceanic arcs and continental- margin magmatic belts. Low- to high-potassium tholeiitic and calc-alkalic arc magmas that exsolve a gold-ore-forming magmatic-hydrothermal fluid at some stage of crystallisation are distinguished from ordinary tholeiitic and calc-alkalic arc magmas by higher contents of lithophile elements that partition strongly into melt relative to residues during partial melting of mantle peridotite. The pattern of element enrichments that distinguishes gold-productive from gold-infertile arc magmas mirrors the chemical distinction between sub-arc lithospheric mantle and asthenospheric upper mantle. Gold-ore-productive arc segments occur where the geodynamic setting is conducive to exceptional participation of lithospheric mantle in the melting column. continued on page 4. 1 Adjunct Senior Research Fellow, Centre for Exploration Targeting, University of Western Australia, [email protected] In this issue... 14 Student Success in CET Magmatic Mineral Systems theme

16 CET hosts acclaimed academic Figure 1. Locations of Plio-Pleistocene (P) and latest Miocene (M) intrusive-related gold deposits containing >10 tonnes of gold (yellow dots) and porphyry copper-gold deposits (orange dots) in the northwestern Pacific, shown with respect to the distribution of 26 Valuing Vendor Consideration: trenches, aseismic ridges and oceanic plateaus, fossil and active back-arc spreading Performance shares & options centres, and plate convergence vectors. Deposit ages (Ma) are shown.

Photo (top): An exploration drill rig on Lake Lefroy, south of Kambalda. This photograph is reproduced with the kind permission of BHP Billiton Mineral Exploration, from the Western Mining Corporation Holdings Limited 1990 Annual Report to Shareholders. CET newsletter issue 20 June 2012

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2 From the Director

growth come challenges. We summarise with an outlook on some of these challenges and the exciting directions CET is heading. The annual review also refers readers to our recently revamped CET website, where the global reach of our research initiatives can be viewed, and details on key research projects, training initiatives and CET team members can be found (www.cet.edu.au). In summary, on behalf of the staff and students of CET I would like to thank all stakeholders for their continued engagement with and support of CET, which has been critical to our success. I invite all of you to continue to engage with us, helping to shape our centre’s research directions into the future and becoming part of the excitement. I look forward to meeting with you at the various CET, industry and As the CET’s 7th anniversary approaches, I am happy academic forums during the coming year. to report that your Centre for Exploration Targeting is performing very well on all fronts, including record industry engagement (75 members), record turnover (projected as $7M in 2012), record staff and student numbers (45 staff and 30 PhD’s), and academic output not only to industry training courses and T. Campbell McCuaig industry journals, but to the highest academic CET Director levels (e.g. Nature and Nature Geoscience). One of the key ways we communicate CET’s activities and research outcomes to you is in the form of this newsletter. I believe the CET Newsletter is one of the best of its kind, and we continually get favourable reviews of the breadth and depth of information reported in it from both industry and academic stakeholders. Yet with the tremendous growth of CET’s research activity and outputs, it is difficult to give anything more than a snapshot of the exciting work CET is undertaking in these newsletters. To facilitate communication of how CET is tracking, we have instigated an annual review that will be issued with the CET’s June Newsletters, the first of which accompanies this issue. An impressive sixty-eight West Australian academics and industry members attended The purpose of this annual review is to provide the Australian Academy of Science’s Exposure all CET stakeholders in academia, industry and Draft workshop at the University of Western government with a snapshot of the centre at the Australia to contribute to the future direction of end of the previous calendar year, and a glimpse geoscience. of what CET is set to achieve in the near future. Our chairman, Dr. Jon Hronsky, also provides a CET representatives provided feedback on statement to stakeholders to give an independent the “Searching the Deep Earth: A vision for view on CET’s performance. In the CET Annual Australian exploration geosciences”, a call for Review we commence by reiterating CET’s Vision, Australian earth scientists to cooperate in an Mission and Objectives, and then report on innovative, structured and nationally coordinated CET’s performance. The success of CET can be strategic venture that will bring competitive measured in three areas: financial performance advantage to Australian mineral exploration. and sustainability, the quality of the team, and the More information on the Exposure Draft of quality and impact of the research and training CET Searching the Deep Earth can be found is undertaking. By all of these measures, CET is on the Academy of Science website: performing very well. With success and continued www.science.org.au/policy/uncover.html/

www.cet.edu.au 3 CET newsletter issue 20 June 2012

continued from page 1. to-face collision with the Halmahera arc (Rohrlach & Linkages between geodynamic stress regime and Loucks, 2005). magma chemistry and gold ore productivity can be recognised most confidently in arc segments (2) Arc-arc junctions: Arc junctions are strongly containing young gold deposits in relatively well favourable sites for development of magmatic- characterised tectonic settings. Figure 1 shows the hydrothermal gold deposits. Examples in Figure distribution along the northwestern Pacific margin of 1 include the Plio-Pleistocene Kumroch high- magmatic-hydrothermal gold deposits younger than sulphidation and porphyry deposits in the Kumroch 6 Ma, containing between 10 and 600 tonnes Au in Thrust Belt at the Kurile-Aleutian arc junction; production and/or reserves, and having relatively Teine and Chitose and other high- and medium- well characterised geodynamic settings. These sulphidation deposits in SW Hokkaido at the junction settings represent the principal types of habitats of the Kurile and Tohoku (NE Honshu) arcs; Toi of magmatic-hydrothermal gold ore deposits in and Seigoshi on the Izu Peninsula at the junction continental-margin and island-arc magmatic belts of the NE Honshu and SW Honshu arcs above the worldwide throughout Phanerozoic time. In Figure 1 subducting Izu-Bonin arc; and the Chinkuashih there are essentially five distinctive kinds of tectonic high-sulphidation deposit in northern Taiwan at the settings hosting magmatic-hydrothermal gold junction of the north Luzon and Ryukyu arcs. Arc-arc deposits: junctions in Figure 1 are “pinned” by topographically high, buoyant features in the subducting plate— (1) Extinguishing Arcs: In the western volcanic belt oceanic plateaux or aseismic ridges and seamount of Kamchatka (Sredinny Range and South Koryak chains. At each of the arc-arc junctions in Figure volcanic field), Pliocene epithermal Au-Ag and 1, the oceanic slab subducting under the “corner” porphyry Cu-Au deposits developed after accretion reentrant cusp in the upper plate has developed of the magmatically extinct Kronotsky exotic arc an anticlinal flexure that shoals markedly under the terrane 6-10 Myr ago (Levashova et al., 2000). arc junction, thinning the asthenospheric mantle Accretion of the terrane required imbrication of the wedge, inhibiting asthenospheric mantle flow into subducting slab, and initiation of a new trench of the the wedge corner, juxtaposing the dehydrating slab same polarity 200 km east of the former trench, and near the base of the lithosphere, and presumably a corresponding eastward jump of the volcanic front. leading to lower temperatures in the wedge, shorter The abandoned Vetlovka (western) slab remnant melting columns, and lower degrees of partial was left to sink under the western arc, which has melting. The fact that oceanic arc-arc junctions undergone a transition from tholeiitic and calc- are extremely transient or migratory on a 10-Myr alkalic magmatism to gold(±copper)-ore-productive time scale, but so frequently gold-ore-bearing, high-K calc-alkalic and shoshonitic magmatism and implies that they tap a magma source that is present progressive southward extinction of the western virtually everywhere but not substantially involved in arc. The situation in NW Kamchatka is reminiscent genesis of ordinary, gold-unproductive arc magmas. of gold mineralisation associated with Pliocene The horizontal stress regime at arc junctions is potassic-alkalic and high-K calc-alkalic magmatism generally moderately to strongly compressive due in the New Guinea Highlands; the development of to opposing senses of oblique subduction and the Ladolam and other deposits in the Feni-Tabar- converging tangential drag on opposite sides of Lihir volcanic chain; and the development of the the arc-arc cusp, causing development of thrust Emperor and other deposits in Fiji—all developed belts, lithospheric thickening and orogenic uplift, above slabs left in the mantle after trench extinction and oroclinal bending of the arc around the junction and relocation events. The extinguishing-arc theme (e.g., Kimura, 1996). Collectively, these effects applies to the 2 Ma-old McLaughlin deposit and late should be conducive to substantial incorporation Neogene major epithermal gold deposits associated of the lower part of the orogenically thickened with high-K calc-alkalic rocks that developed on lithospheric mantle into the melting column. the trailing end of the extinguishing Cascade arc in California and western Nevada as the south (3) Orogens above buoyant features in the end of the Cascade arc migrated northward with subducting plate: An exemplar of this setting is the Mendocino Fracture Zone (south edge of the the Central Cordillera of northwestern Luzon, which subducting Gorda Plate). The giant Tampakan has been compressively uplifted as the NE-trending high-sulphidation Cu-Au deposit (~500 tonnes Au, Scarborough Ridge seamount chain in the South ~12 million tonnes Cu; Pliocene) in south-central China Sea has subducted obliquely along the N-S- Mindanao developed near the north end of the trending Manila Trench. A seismically resolved, Sangihe arc as the trench was extinguished by face- pronounced shoaling anticlinal flexure occurs in the

4

Figure 2. Lithophile-element abundances are compared among magnesian basalts (6 to 12 wt% MgO, Mg# > 60) from unmineralised arc segments and from arc segments containing significant magmatic-hydrothermal gold deposits of late Neogene-Quaternary age. Early Pliocene Yabakei basalt in the Hohi graben in NE Kyushu (sample Y85-1 of Kakubuchi & Matsumoto, 1990) is ~30 km SW of the 4.6 Ma Bajo low-sulphidation Au-Ag deposit (13t Au; Watanabe, 2005). Kuanyinshan and Tatun volcanoes are 30 and 44 km W of Chinkuashih, Taiwan (samples K-64 and A-129, Wang et al, 1999). Mt. Arayat is 43 km E of Dizon and 110 km S of Baguio in Luzon’s Central Cordillera (sample AY55, Bau & Knittel, 1993). The Mt. Pinatubo sample is a basaltic clot in dacite of the 1991 eruption, thought to be triggered by chamber replenishment and mixing with this basaltic magma (CN6791i, Pallister et al, 1996); the Pinatubo edifice contains the 2.7 Ma Dizon Cu-Au porphyry deposit, produced by dacitic magma chemically like the 1991 eruption. Mule Canyon basalt sample (99-DJ-5, John, 2001) is from the base of an eruptive sequence from a magmatic centre that produced the 15.6 Ma Mule Canyon cluster of low-sulphidation deposits (~40t contained Au). The orthopyroxene-normative shoshonitic hornblende lamprophyres were directly parental to late Eocene major gold mineralisation in the Himalayan orogen near the Yunnan-Tibet border (sample YK-1 of Huang et al, 2002), and directly parental to Permian major gold deposits in the Hillgrove district of New South Wales (R64067 of Ashley et al, 1994). Shown for comparison are parental magma of average normal mid-ocean-ridge basalt and basaltic boninites and representative primitive Quaternary basalts from oceanic-arc segments lacking known gold mineralisation of Quaternary age in central New Britain, central Solomons, and central New Hebrides (analyses reproduced from Table 2 of Hronsky et al., 2012).

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subducted slab along the trend of the seamount dextral slip on the Southern Japan Sea Fracture chain, which has migrated southward under the Zone and the Median Tectonic Line (MTL)—both arc during the past 8 Ma (Bautista et al, 2001), of which are lithosphere-scale dextral transcurrent accompanied by a wave of compressive deformation faults >900 km long (Itoh et al., 1998)—that and compositionally distinctive magmatism. The accommodate increasingly dextral-oblique mid-Pleistocene Baguio intermediate-sulphidation subduction of the Philippine Sea Plate along the deposit is one of the products, as well as the Plio- Nankai subduction zone. Westward of the junction Pleistocene Lepanto high-sulphidation Au-Cu of the Nankai and Ryukyu subduction zones, the deposit, and numerous Plio-Pleistocene Au-bearing MTL turns southwestward and splits into several porphyry copper deposits. The geodynamic, strands that cross the magmatic arc in Kyushu. Two petrologic, and metallogenic consequences of major rhomboid pull-apart basins within the arc-axis subducting the Scarborough Seamount chain under magmatic belt in Kyushu were produced between Luzon are a close replica of the Miocene effects of strands of the MTL during the Pliocene (Kamata southward-propagating intersection of Paleogene & Kodama, 1999). These basins have been very parts of the Juan Fernandez seamount chain with active sites of intermediate-composition volcanism the Chile Trench and southward propagating and low-sulphidation gold metallogeny: the Hohi mineralisation wave that formed the Maricunga-El volcanic zone containing the Taio, Bajo, Hoshino Indio gold ore belt and Sierras Pampeanas thrust and other deposits in NE Kyushu, and the Hisatsu- belt over the 25-9 Ma interval, and analogous to Hokusatsu volcanic zone which hosts the Hishikari, the metallogenic and tectonic consequences of Okuchi, Kushikino, Yamagano, and others in SW southward-propagating low-angle subduction of the Kyushu. Such extensional zones are likely sites for Nazca Ridge under central Peru (e.g., Rosenbaum development of lithospheric-mantle core complexes et al, 2005). The shoaling slab along subducted (diapirs) that must be prone to decompression parts of buoyant seamount chains or oceanic melting during ascent. The lithospheric mantle plateaux must thin and refrigerate the mantle wedge, under Kyushu had been orogenically thickened orogenically thicken the over-riding lithosphere, and and hydrated by low-angle subduction of the have other consequences for magma genesis like Philippine Sea Plate under the Nankai-Ryukyu arc- those associated with arc-arc junctions. arc junction just prior to Plio-Pleistocene rotation of the Philippine Sea Plate. In the Northern Nevada (4) Subduction zone initiation: The Pacific Rift (USA), mid-Miocene low-sulphidation epithermal Cordillera of eastern Mindanao was uplifted rapidly gold deposits (Sleeper, National, Jarbidge, Mule during the Pliocene-Quaternary as the Philippine Canyon, Buckhorn, Jumbo, Midas, and others) were Trench propagated southward to compensate for produced during extension of lithosphere that had southward zipper-closure of the Molucca Sea and been previously under-plated, orogenically thickened comcomitant extinction of its subduction zones and hydrated by flat subduction of the Farallon Plate during face-to-face collision of the northern parts of during the Paleogene (Saunders et al., 2008). Many the Sangihe and Halmahera arcs. The compressive ~E-W-trending extensional basins that developed in stress that was required to initiate the Philippine western Anatolia during Neogene N-S extension in Trench subduction thrust under eastern Mindanao the Aegean region host significant Neogene low- fostered orogenic thickening of the over-riding sulphidation epithermal gold deposits in regions lithosphere. The many young intermediate- to high- previously affected by convergent-margin orogeny sulphidation gold deposits (Placer, Siana, Co-O, (Yigit, 2006). Hijo, Masara, et al.) and the Amacan, Boyongan, Mapula and King-King porphyry deposits are In the following paragraphs, geochemical evidence products of chemically distinctive magmatism in is presented that gold-ore-forming arc magmas are the compressive setting. The Panguna deposit on derived by partial melting of lithospheric mantle Bougainville formed during Pliocene compressive to a greater degree than ordinary, gold-infertile thickening of the arc lithosphere as the New Britain arc magmas. Figure 2 compares abundances Trench was becoming established and as the Kilinau of “incompatible” elements (those that partition Trench was de-activated by collision of the nearly strongly into melt relative to residues during unsubductable Ontong-Java Plateau (Solomon, mantle melting) in basalts from unmineralised arc 1990). segments with abundances in unaltered basalts that are nearest in distance and age to major gold (5) Intra-arc extension: Pliocene anti-clockwise deposits. Element abundances in the samples are rotation of the Philippine Sea Plate by ~20° had the normalised to their abundances in primordial mantle consequence in southwestern Japan of initiating

6 (McDonough & Sun, 1995). Elements are ordered metabasaltic and metapelitic eclogites show that from left to right in the sequence of decreasing Nb and Ta, in particular, have negligible solubilities enrichment factor in melt relative to residues during in slab-derived metamorphic fluids (Ayers, 1998; partial melting of mantle spinel lherzolite (Sun & Johnson and Plank, 1999), so such fluids cannot be McDonough, 1989). Average normal mid-ocean- the agents of that refertilisation. A garnet signature is ridge basalt (NMORB) is effectively a “second-stage” missing from the flat heavy-REE patterns of basaltic melt of upper asthenosphere residual from extraction melts parental to gold-productive derivatives, so slab of continental crust, mainly during the Archaean. melts cannot be the agents of mantle refertilisation. If refractory mantle that has been depleted of its Over the aeons, the shallower part of the uppermost incompatible elements by extraction of NMORB asthenospheric mantle has become very depleted later becomes situated above a subduction zone in highly incompatible elements such as Cs, Rb, and produces a “third-stage” partial melt when Ba, Th and Nb during formation of continental crust its melting temperature is lowered upon addition and again during extraction of normal mid-ocean- of slab-derived aqueous fluids, then the wedge- ridge basalts (Workman & Hart, 2005; Niu, 2004). derived, water-insoluble high-field-strength However, in the lithospheric mantle, that depletion incompatible elements (HFSE’s of high ionic has been partially to completely reversed over the charge—Nb, Ta, Zr, Hf, Ti) and sparingly soluble aeons by addition of veins and dykes that formed HFSE’s (Th, La, Ce, P, etc.) are depleted yet again. when relatively low-temperature, low-percentage Low-field-strength, large-ion-lithophile elements partial melts of the deeper asthenospheric mantle (LILE’s of low ionic charge) are water-soluble and froze in transit through the cooler lithospheric are added to the mantle-wedge melting region by mantle. Massif peridotites and volcanic-hosted slab-derived metamorphic fluids, so abundances mantle xenoliths are typically riddled with dykes, of those elements in arc magmas appear as spikes dykelets and veins of frozen low-percentage melts— above the baseline of water-insoluble elements. lamproitic, kimberlitic, lamprophyric, trachybasaltic, Several conclusions about the origin of gold-ore- nephelenitic, etc.—in various stages of disruption forming magmas emerge from Figure 2: and annealing (Pilet et al, 2011). Evidence from a 1. Spikes of water-soluble LILE’s have greater compilation of >100 analyses of unserpentinised, amplitude (but not height) in gold-unproductive unweathered, petrographically fresh, texturally magmas that represent higher degrees of partial homogeneous mantle peridotite samples indicates melting and more refractory (depleted) mantle these generally are enriched in Au by factors of sources. Therefore, gold-ore-productive magmas are 2-10 (and similarly enriched in the trace elements not products of unusually high degrees of mantle along the abscissa in Figure 2) relative to the fluxing by slab-derived fluids; accordingly, gold is average asthenospheric mantle (MORB source) not supplied mainly by slab-derived fluids. composition as given by Workman & Hart (2005) and Salters & Stracke (2004). Similarly, Wilson et al. 2. Element patterns in the interval Y to Lu are as flat (1996) report that Au and S are markedly enriched in gold-fertile basaltic magmas as in the parental in amphibole-bearing veins in a suite of volcanic- basalts of barren magma series; the flatness implies hosted peridotite xenoliths representing lithospheric that residual garnet (which selectively retains those mantle under the Sierran arc, California. Zheng et al. elements) has no perceptible role in the melting (2005) similarly report remarkable enrichments of Au regime, thus ruling out perceptible contributions by and other incompatible elements in suites of fresh partial melts of subducted materials in the eclogite peridotite xenoliths representing sub-arc lithospheric facies. mantle sampled by Mesozoic volcanoes in eastern 3. Most importantly, abundances of highly incompatible China. As oceanic lithosphere migrates away from HFSE’s (Th, Nb, Ta, La, Ce) are substantially higher spreading ocean ridges, lower-percentage partial above the NMORB reference line in parental basalts melts (nephelinites, basanites, etc.) produced of gold-ore-productive magma series than in basaltic along distal flanks of spreading ridges refertilise parents of barren arc magma series. The unmodified the oceanic lithospheric mantle as it slowly forms average mantle residue left from extraction of from asthenospheric mantle that was depleted by average NMORB cannot be the source of a further MORB extraction at the ridge (Pilet et al, 2011), so melt increment that is more enriched in incompatible variably refertilised lithospheric mantle is typically elements than NMORB. Therefore, relatively high the substrate of oceanic arcs built on Mesozoic or concentrations of strongly incompatible HFSE’s in Cenozoic oceanic lithosphere. parental magmas of gold-ore-productive suites imply that their source includes mantle that is relatively Because the refractory peridotite matrix of dykes undepleted or refertilised, whereas the gold-infertile and veins has a higher solidus temperature than arc magmas have HFSE abundances implying high- the veins and dykes, the lithospheric mantle can percentage melting and/or derivation from depleted undergo selective remelting of its dykes and veins in mantle left after NMORB extraction. Experiments on response to heating and/or in response to hydration

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and/or in response to decompression. Tectonic The degree to which lithospheric mantle has settings conducive to lithospheric partial melting by been refertilised can be represented by element heating include (a) highly compressive geodynamic ratios having highly incompatible elements in the situations that thicken the lithospheric mantle and numerator, and mildly incompatible elements in depress its base (and possibly cause it to drip off) the denominator. The same element ratios can be into hotter asthenospheric mantle; and (b) settings applied to mantle melts to identify melts derived wherein the lithospheric mantle is underplated by largely from lithospheric mantle that has been more upwelling hot asthenospheric mantle, as above or less strongly refertilised at the regional scale. slab windows or slab-peel-away regions or perhaps This is the basis of the element-ratio discriminants of above mantle plumes. Partial melting of lithospheric gold-fertile arc magmas—Nb/Y, Th/Yb, Ba/Zr, et al., mantle in response to exceptional hydration (which such as those in Figures 3 and 4. That is, elements lowers the solidus temperature) is favoured in from the left-hand side of the abscissa on Figure regions of “flat-slab” subduction, which thins the 2 are divided by elements nearer the right side, to asthenospheric mantle wedge and juxtaposes the formulate ratios that represent the general slope dehydrating slab near to the over-riding lithosphere. of trace-element patterns such as those on Figure Partial melting by decompression of veined and 2. HFSE’s (ionic charge +3 to +5) tend to have otherwise enriched lithospheric mantle occurs in low mobility during weathering and hydrothermal regions of crustal extension such as pull-apart alteration, and so are preferred over LILE’s in basins, metamorphic core complexes, etc., where formulating discriminants of gold-ore-forming or diapirism of the lithospheric mantle is favoured. gold-fertile igneous suites.

Figure. 3(A). Whole-rock Nb/Y is plotted versus SiO2 for fresh or least-altered samples of intrusives or flow domes representing magmas directly parental to major deposits of gold or gold+copper (epithermal and porphyry and skarn deposits) from the ARCGOLDCOPPER compilation from published literature. The ore-forming magmas are further divided by age of the sub-arc lithospheric mantle (apparent duration of mantle refertilisation), as estimated from the oldest reported “basement” rocks. In the Andes from northern Colombia to Patagonia, the basement is mid-Proterozoic; in Japan and Taiwan, it is Paleozoic. In the southern New Hebrides arc (Vanuatu), and the Marianas and Izu-Bonin and Kurile arcs and Kamchatka, the sub-arc basement is Cretaceous or Cenozoic. Magmas parental to gold deposits overlying pre-Mesozoic lithospheric mantle have Nb/Y distinctly higher, in general, than gold-barren arc segments of comparable age, as represented by Neogene and Quaternary volcanic and hypabyssal rocks in the Southern Volcanic Zone of Chile (36-47°S), and by volcanics and hypabyssal rocks <10 myr old in the North Honshu arc at latitudes north of Tokyo. Magmas parental to gold deposits on Cretaceous or younger basement mostly have lower Nb/Y than those on old basement, but on average, they plot above the mean Nb/Y of gold-barren (as far as is known) arc segments on Cretaceous or Cenozoic basement, as represented by the southern New Hebrides and central Marianas. (B). Unlike panel A, it is not the particular batches of magma parental to ore that are plotted, but rather all available samples within a mineralised arc segment and having ages that apparently correspond to the gold-mineralisation epoch in that segment. Samples < 25 Myr old in the latitude interval 14.5°S to 47.5°S in the Andes are plotted. Two heavily mineralised Neogene arc segments are represented: the latitude interval of the Chilean Andes containing the Maricunga-El Indio gold belt of high-sulphidation deposits, and the region on the west side of the Altiplano in the vicinity of the Peru-Chile arc-arc junction (or orocline), which is labelled the Orcopampa (Peru)-Choquelimpie (Chile) belt of mostly medium-to high-sulphidation deposits. In both gold-ore belts, Nb/Y is distinctly higher than the Nb/Y of the generally tholeiitic differentiation series in the relatively non-compressive Southern Volcanic Zone. (C) The entire sample suite from all calc-alkalic Pliocene-Quaternary volcanoes in northern Taiwan (at the highly compressive junction of the North Luzon and Ryukyu arcs) is compared with the entire Plio-Quaternary sample suite from the extensional, unmineralized central Ryukyu arc. The north Taiwan district, which contains the Chinkuashih deposit (>90 tonnes contained Au), plots well above the Nb/Y range of the central Ryukyu arc, also on Paleozoic basement. The Taio and Bajo low-sulphidation epithermal gold deposits (36 and 13 tonnes Au) and many smaller ones occur in northern Kyushu. All available Plio-Quaternary samples from the gold-mineralised region of north-central and northeastern Kyushu are plotted. The suite from the Nasu volcanic zone of northern Honshu (<10 Myr old) spans an arc interval 500 km long that has been explored for a millenium or more, with no discoveries of significant gold deposits < 10 myr old, so it looks like a valid choice for a barren reference suite. (D) Suites of Plio-Quaternary samples from gold districts and “barren” arc segments overlying basement of Cretaceous or younger age are plotted. Kamchatka is represented by suites from four gold mining regions and two seemingly barren belts. The northern Sredinny Range gold field of western Kamchatka includes the large (~90 tonnes Au) Ametistovoe deposit and major high-sulphidation and porphyry Au-Cu deposits at Maletoyvoyam and Tymlat. The southern Sredinny Range contains several late Neogene, large (20-40 tonnes Au) low-sulphidation deposits. The active eastern volcanic front is significantly gold-productive near the southern tip of Kamchatka, where all available data from the Quaternary volcanic centres are plotted for the latitude interval containing a cluster of Plio-Pleistocene deposits— Asacha, Mutnovskoe, and Rodnikovoe, each with ~20-40 tonnes Au. Also plotted are two suites representing seemingly gold-barren intervals bracketing the southeastern Kamchatka goldfield. The Kurile Island chain in the interval 45-49°N contains no known significant gold mineralisation <10 Myr old. At the junction of the Izu-Bonin arc with the North Honshu arc, Japan’s Izu Peninsula contains two significant low-sulphidation epithermal gold deposits of Pleistocene age, Toi and Seigoshi, with 12 and 14 tonnes Au. Farther south, the suite from the central Mariana arc contains no known significant gold deposits, and is plotted as a barren reference suite. The fourth oceanic arc interval deployed here as a barren reference suite is the southern New Hebrides (Vanuatu) arc. Southern Kyushu contains the very large low- sulphidation Plio-Pleistocene deposits Hishikari (~260 tonnes Au), Kushikino (56 tonnes Au), Okuchi (28 tonnes Au), Yamagano (28 tonnes Au), and other smaller deposits, on basement of late Cretaceous to Paleogene age.

8 www.cet.edu.au 9 CET newsletter issue 20 June 2012

In order to test the effectiveness of such element of lithospheric mantle in arc-magma production are ratios as discriminants of gold-fertile magmas, effective discriminants of magma batches parental this research entailed comparison of the chemical to major magmatic-hydrothermal gold deposits, compositions of large populations of gold-ore- and are effective discriminants of arc segments productive magmas with large populations of and time intervals within them that are favourable ordinary arc rocks from arcs or arc segments that for gold-ore discovery. By implication, gold fertility lack significant gold ore deposits in the time interval is a primary feature of arc magmas, acquired in considered. The ARCGOLDCOPPER database the magma source region(s). In contrast, the includes a compilation of the compositions of lead article of the CET’s March, 2012, newsletter gold-ore-forming intrusives of Phanerozoic age demonstrated that magma fertility for generating worldwide. That dataset includes more than 200 major magmatic-hydrothermal deposits of copper whole-rock major- and trace-element analyses of is not a mantle-derived, primary feature; rather it samples deemed by the respective investigators is acquired by special conditions of high-pressure to represent fresh or nearly fresh samples of magmatic differentiation in orogenic stress regimes. subduction-generated intrusives that were the In extensional or stress-neutral settings, feeder source of ore-forming hydrothermal fluids parental dykes propagate with relative ease from mantle to 50 Au deposits and 57 Au+Cu deposits. For to upper crust, so Au-fertile magmas at any mafic comparison, the research programme included to felsic stage of differentiation can make low- compilation, mainly from primary literature sources, sulphidation gold deposits with insignificant Cu. of a database of more than 25,000 whole-rock In compressive settings, basaltic magmas that are major- and trace-element analyses of volcanic and Au-fertile as they leave the mantle tend to be trapped hypabyssal rocks of basaltic to rhyolitic composition near the Moho by horizontal compressive stress and and Neogene or younger age in circum-Pacific have Cu-ore-forming fertility added in long-lasting, island arcs and continental-margin volcanic belts intermittently replenished, fractionally crystallising

in which the geodynamic stress regime is better magma chambers by the cyclic ramp-up in H2O, Cl,

understood than in older arcs. The comparisons SO3 and ƒO2 as described in the CET’s March, 2012, show that, relative to ordinary, ore-unproductive newsletter. basalts, andesites, dacites, and rhyolites, Au-ore- forming arc magmas characteristically have more References steeply sloping multi-element patterns (Fig. 2) and Ashley, P.M., Cook, N.D.J., Hill, R.L., and Kent, A.J.R. hence higher Ba/Zr, Nb/Y, and Th/Yb. Figures 3A (1994) Shoshonitic lamprophyre dykes and their relation to and 4A demonstrate their resolution in discriminating mesothermal Au-Sb veins at Hillgrove, New South Wales, magmas parental to major Au (±Cu) deposits from Australia. Lithos, 32:249-272. ordinary, unproductive arc magmas. Panels B-D Bau, M., and Knittel, U. (1993) Significance of slab-derived show that most igneous rocks throughout a gold partial melts and aqueous fluids for the genesis of tholeiitic metallogenic province tend to share these chemical and calc-alkaline island-arc basalts: evidence from Mt. characteristics over the duration of the metallogenic Arayat, Philippines. Chemical Geology, 105:233-251. epoch. However, due to the temporally transient Bautista, B.C., Bautista, M.L.P., Oike, K., Wu, F.T., and and migratory nature of the geodynamic stress Punongbayan, R.S. (2001) A new insight on the geometry regimes responsible for increased participation of subducting slabs in northern Luzon, Philippines. of lithospheric mantle in magma production, Tectonophysics, 339:279-310. these gold metallogenic provinces and epochs are correspondingly transient along oceanic or Hronsky, J.M.A., Groves, D.I., Loucks, R.R. & Begg, G.C. (2012) A unified model for gold mineralisation in continent-margin arcs. accretionary orogens and implications for regional-scale These element ratios may be used by exploration exploration targeting methods. Mineralium Deposita, geologists to screen compilations of chemical 47:339–358. analyses of “fresh” volcanic and hypabyssal non- Huang, Z., Liu, C., Yand, H., Xu, C., Han, R., Xiao, Y., Zhang, cumulate rocks to identify arc segments and B., and Li, W. (2002) The geochemistry of lamprophyres individual igneous complexes and stages in their in the Laowangzhai gold deposits, Yunnan Province, evolution that are especially favourable for gold China: implications for its characteristics of source region. exploration, and to eliminate other places and Geochemical Journal, 36:91-112. periods from wasteful expenditure. Itoh, Y., Takemura, K., & Kamata, H. (1998) History of basin formation and tectonic evolution at the termination of a In conclusion, this study has demonstrated that large transcurrent fault system: deformation mode of central element ratios that rise with increasing participation Kyushu, Japan. Tectonophysics, 284:135-150.

10

Figure 4. The Ba/Zr ratio of whole-rock samples is plotted for the same sample suites as described in the caption of Fig. 3. In both Figs. 3 and 4, the “cutoff” line that seems to best separate most of the samples from gold metallogenic provinces from most samples in the barren reference suites slides to lower values of Nb/Y and Ba/Zr with decreasing age of the basement. The variation among panels in Au-fertile/infertile “cutoff” values with basement age seems to reflect the variation in duration and intensity of metasomatic refertilisation of the sub-arc lithospheric mantle, mainly at times preceding onset of subduction under the arc segment. www.cet.edu.au 11 CET newsletter issue 20 June 2012

John, D.A. (2001) Miocene and Early Pliocene Epithermal Salters, V.J.M. and Stracke, A. (2004) Composition of the Gold-Silver Deposits in the Northern Great Basin, Western depleted mantle. Geochemistry, Geophysics, Geosystems, United States: Characteristics, Distribution, and Relationship v. 5 (doi:10.1029/2003GC000597) to Magmatism. Economic Geology, 96:1827-1853. Saunders, J.A., Unger, D.L., Kamenov, G.D., Fayek, M., Kakubuchi, S. & Matsumoto, Y. (1990) Primitive tholeiitic Hames, W.E. & Utterback, W.C. (2008) Genesis of Middle basalt from the Yabakei district, Oita Prefecture, Southwest Miocene Yellowstone hotspot-related bonanza epithermal Japan. Journal of Mineralogy, Petrology and Economic Au–Ag deposits, Northern Great Basin, USA. Mineralium Geology 85:559-568. Deposita, 43:715–734. Kamata, H. & Kodama, K. (1999) Volcanic history and Solomon, M. (1990) Subduction, arc reversal, and the origin tectonics of the Southwest Japan Arc. The Island Arc, of porphyry copper-gold deposits in island arcs. Geology, 8:393-403. 18:630-633. Kimura, G. (1996) Collision orogeny at arc-arc junctions in Sun, S.-s., and McDonough, W.F. (1989) Chemical and the Japanese Islands. The Island Arc, 5:262-275. isotopic systematics of oceanic basalts: implications for mantle composition and process. In A.D. Saunders, and Levashova, N.M., Shapiro, M.N., Beniamovsky, V.N., & M.J. Norry, Eds. Magmatism in the Ocean Basins, 42, p. Bazhenov, M.L. (2000) Paleomagnetism and geochronology 313-345. Geol. Soc. London Spec. Publication. of the Late Cretaceous-Paleogene island arc complex of the Kronotsky Peninsula, Kamchatka, Russia: kinematic Wang, K.-L., Chung, S.-L., Chen, C.-H., Shinjo, R., Yang, implications. Tectonics, 19:834-851. T.F., and Chen, C.-H. (1999) Post-collisional magmatism around northern Taiwan and its relation with opening of the McDonough, W.F., and Sun, S.-s. (1995) The composition of Okinawa Trough. Tectonophysics, 308:363-376. the Earth. Chemical Geology, 120:223-253. Watanabe, Y. (2005) Late Cenozoic evolution of epithermal Niu, Y. (2004) Bulk-rock major and trace element gold metallogenic provinces in Kyushu, Japan. Mineralium compositions of abyssal peridotites: implications for Deposita, 40:307-323. mantle melting, melt extraction and post-melting processes beneath mid-ocean ridges. Journal of Petrology, 45:2423- Wilson, M.R., Kyser, T.K., & Fagan, R. (1996) Sulfur isotope 2458. systematics and platinum-group element behaviour in REE-enriched metasomatic fluids: A study of mantle Ozawa, A., Tagami, T., Listanco, E.L., Arpa, C.B. & Sudo, M. xenoliths from Dish Hill, California, USA. Geochimica et (2004) Initiation and propagation of subduction along the Cosmochimica Acta, 60:1933-1942. Phlippine Trench: evidence from the temporal and spatial distribution of volcanoes. Journal of Asian Earth Sciences, Workman, R.K. & , Hart, S.R. (2005) Major and trace 23:105-111. element composition of the depleted MORB mantle (DMM). Earth and Planetary Science Letters, 231:53-72. Pallister, J.S., Hoblitt, R.P., Meeker, G.P., Knight, R.J. & David F. Siems, D.F. (1996) Magma mixing at Mount Pinatubo: Yigit, O. (2006) Gold in Turkey—a missing link in Tethyan Petrographic and chemical evidence from the 1991 metallogeny. Ore Geology Reviews, 28:147–179. deposits, in Newhall, C. G. and Punongbayan, R. S., eds., Zheng, J., Sun, M., Zhou, M.-F. & Robinson, P. (2005) Trace Fire and Mud: Eruptions and Lahars of Mount Pinatubo, elemental and PGE geochemical constraints of Mesozoic Philippines. Seattle: University of Washington Press | U.S. and Cenozoic peridotitic xenoliths on lithospheric evolution Geological Survey, pp. 687-731. of the North China Craton. Geochimica et Cosmochimica Pilet, S. Baker, M.B., Müntener, O., & Stolper, E.M. (2011) Acta, 69:3401-3418. Monte Carlo simulations of metasomatic enrichment in the lithosphere and implications for the source of alkaline basalts. Journal of Petrology, 52:1415-1442. Rohrlach, B.D. & Loucks, R.R. (2005) Multi-million-year cyclic ramp-up of volatiles in a lower-crustal magma reservoir trapped below the Tampakan copper-gold deposit by Mio-Pliocene crustal compression in the southern Philippines. In: Porter, T.M. (ed.), Super Porphyry Copper & Gold Deposits—A Global Perspective, v.2. PCG Publishing, Adelaide, pp. 369-407. Rosenbaum, G., Giles, D., Saxon, M., Betts, B.G., Weinberg, R.F., & Duboz, C. (2005) Subduction of the Nazca Ridge and the Inca Plateau: Insights into the formation of ore deposits in Peru. Earth and Planetary Science Letters, 239:18– 32.

12 CET Seminar Series The CET is proud to announce the launch of a new Research Seminar Series for 2012. These presentations will feature high profile Australian and internationally-based researchers presenting on a variety of topics and all interested Geologists and Industry Partners are welcome to attend. The series convenors are Dr Tony Kemp, Dr Steve Micklethwaite, Dr Stanislav Ulrich and Dr Alan Aitken who have combined to create an informative and interactive academic discussion. Director at Diamond Indicator Minerals, Deon de Bruin, will give the next presentation at 4:00pm on Friday 6 July, 2012. Please join us for light refreshments afterwards provided by the UWA SEG Student Chapter.

Date Presenter Title 6 July 2012 Diamond Indicator Minerals Regional geochemical mapping techniques Mr Deon de Bruin 20 July 2012 School of Earth and Environment, UWA High Precision U-Pb geochronology and you Dr Steven Denyszyn 17 August 2012 UNICAMP, Brazil The Carajas IOCG province (Title TBA) Professor Roberto Xavier 31 August 2012 CET Ore selection and sequencing Professor Jim Everett 14 September 2012 To be Announced To be announced

5 October 2012 Geological Survey of Western Australia To be announced Dr Julie Hollis 19 October 2012 CET The intraplate tectonics of central Asia: Dr Alan Aitken asparagus theory and the Great Silk Road 2 November 2012 2012 SEG Distinguished Lecturer To be announced Professor Dan Wood 16 November 2012 To be announced To be announced

30 November 2012 To be announced To be announced

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Parkway Entrance 1 PRESCOTT COURT Old Pharmacology 33 Myers Street Centre for Labour Market Research Science Agri - NW Wing Library 11 Parkway Agri Central Botany COOK STREET Annexe PARKWAY CRC Hackett Entrance 3 Saw Promenade Saw Car Park 8 10-12 Parkway Soil Science Parkway Entrance 2 Botany 14-16 Parkway TAXONOMIC GARDENS

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May 2010 CET newsletter issue 20 June 2012

Student success in CET Magmatic Mineral Systems theme

The Magmatic Mineral Systems Theme at the Centre for Exploration Targeting proudly announces the recent recognition of excellence of four of its students. Steve Rennick, who graduated with a First Class Honours in 2011 after completing a mapping project in South East Greenland, has been awarded the Talbot Medal of the Geological Society of Australia. This medal is awarded to the geology student completing the best BSc Honours thesis at The University of Western Australia with a significant fieldwork component. Steve is now a project geologist at Independence Ltd working on a wide range of exploration campaigns. David Mole, whose PhD project aims to unravel the four-dimensional evolution of the lithospheric architecture of the Yilgarn Craton, was recently awarded the David Groves Prize. This award is given to the student who, among those enrolled in a research higher degree in geology for at least part of the year, is considered by the Head of the School of Earth and Environment at UWA, to have made the most outstanding professional contribution to geology, in the form of publication, research, organisation of scientific activities such as lectures or seminars, or related activities. Margaux Le Vaillant and Zoja Vukmanovic have recently been awarded highly competitive post-graduate ‘top-up’ scholarships from the Minerals and Energy Research Institute of Western Australia (MERIWA). Margaux is currently investigating the hydrothermal halo surrounding nickel-sulphide systems, with the scope to enlarge their footprint and enhance exploration methodologies. Zoja’s project looks at sulphide deformation and remobilisation processes utilising a wide range of analytical techniques. More details on all these student success stories can be found on the CET website, www.cet.edu.au.

Steve Rennick (top), David Mole (middle) Margaux Le Vaillant and Zoja Vukmanovic (bottom image, far right) with Minister Norman Moore at the MERIWA Scholarship Presentation on 16th May, 2012

14 FOURTH CIRCULAR and FIELD TRIP GUIDE

34th International Geological Congress (IGC): LIMA 2012 AUSTRALIA 2012 XVI PERUVIAN Unearthing Our Past And Future – Resourcing Tomorrow Brisbane Convention and Exhibition Centre (BCEC) Queensland, Australia GEOLOGICAL 5-105 - 10 August, 2012 August www.34igc.org 2012 34th IGC CIRCULARS BrisbaneGeneral distribution of this andConvention subsequent Circulars for the 34th IGC is byCentre email. The latest Circular is always available for download at www.34igc.org. CONGRESS The Fifth Circular and Final Program will be released in July 2012. The CET will present a strong showing at the 34th International Geological & SEG 2012 Congress in Brisbane in August with a booth, and nearly twenty staff and student CONFERENCE delegates. CET Director Campbell McCuaig will 23-26 September 2012 be coordinating “Theme 8: Mineral Exploration Geoscience” with Professor The SEG 2012 Conference is commencing David Giles from the University of in September and the CET will be attending Adelaide, as well as convening to promoting our excellent range of courses a Symposium on The Science of and current research. Exploration Targeting. The conference is being held in Two CET staff will also be convening collaboration with the XVI Peruvian Symposiums under the theme “The Early Geological Congress in Lima, Peru and is Earth: Hadean and Archean Development the first of the biennial SEG conferences to of a Habitable Planet”: Arc Future Fellow be held in Latin America. Tony Kemp is organizing Building planet Earth – the first 500 million years, and This year the focus is on economic Research Assistant Professor Nicolas geology and will include oral and poster Thebaud The origin and settings of presentations with a series of field trips Archean mineral systems. and workshops available, as well as SEG plenary speeches. The CET will also be presenting and displaying posters on a wide variety The CET will be well represented by of subjects and specialties. Come on staff and student delegates including down to our booth to discuss our current CET Deputy Director Steffen Hagemann, research with our academics and PhD Professor Geoffrey Batt and PhD members students, learn about the courses we offer of the UWA SEG Student Charter (Waiting to and talk to our course coordinator about hear if Christian and David are members). in-house tailored training options. The SEG 2012 Conference is located in the For more information about this event see Westin Hotel, Lima, Peru from the 23-26 the 34IGC website, www.34igc.org. September 2012.

www.cet.edu.au 15 CET newsletter issue 20 June 2012

CET hosts acclaimed academic The CET is pleased to welcome Gledden Visiting Senior Fellow Professor Jean-Pierre Burg from ETH and the University of Zurich to UWA. Gledden Fellowships are awarded to researchers whom UWA recognizes as experts in their field who can provide a significant contribution to the university through collaborative work. Professor Burg’s research is devoted to tectonics sensu lato or the study of deformation zones, and mainly that of the metamorphic and magmatic mountain belts where deformation is primarily ductile. For this purpose, his research combines two main themes: (1) the structural analysis of specific areas to understand, beyond the regional aspects, the relationships between tectonics, microtectonics and plate kinematics; (2) Experimental deformation using analogues and rock systems (artificial and natural). Much of his geological work has been dedicated to several of the modern, Tethys orogens from the Pyrenees to Eastern Tibet-Himalaya. Additionally Professor Burg has had many editorial responsibilities in several ISI journals. While visiting the CET Professor Burg will refresh a long standing collaboration with Weronika Gorczyk, Bruce Hobbs and Alison Ord, with research focusing on intracratonic deformation and related processes with their physical and mechanical consequences on lithospheric and surface behaviour. In this study focus is given to Central Australia, where it is becoming increasingly apparent that major hydrothermal ore bodies are related to intra-cratonic deformations far removed spatially from subducting margins. During his stay the researchers intend to develop a synthesis of intracontinental deformation on Earth. The work forms part of the ATC funded project on Multiscale Dynamics of Mineralising Systems. In May Professor Burg will also present a Seminar as part of the CET Seminar Series, a Public Lecture and a Masterclass. The Public Lecture is titled: “Where the stressed Earth fails: the Himalayan syntaxes,” and will examine the geological structure and geodynamic situation of Himalayan syntaxes and discuss the processes responsible for generation of earthquakes in this vulnerable region. A free Masterclass will also be available for interested participants on the topic the “Alpine-Himalayan System,” introducing general descriptions of the Alpine- Himalayan system, discussing reference tectonic settings using examples from the European Alps, the Rhodope in Greece and Bulgaria, Oman, Makran, Kohistan, the Himalayas, Tibet and Asia. The Seminar is titled: “The lithospheric mantle from collision to collapse” and will be presented on June 8. “From the seminar series should flow synergistic beneficial outcomes from the interaction with the expertise of staff and graduate students on the geological history of various regions that are of interest to CET staff, in particular in Asia,” Professor Burg said. “Time in Australia will involve field work in Central Australia to compare this example with other areas in the Alpine-Himalayan belt and in Africa. I also intend to take advantage of my stay in Perth to meet and discuss with researchers on experimental and numerical deformation at the CSIRO, hopefully strengthening the burgeoning collaboration with both institutions.” Professor Burg will be at UWA until August 2012, and can be contacted at [email protected].

16 Kalgoorlie • Western a ustralia

s tructural g eology and r esources

Wed 26th - f ri 28th s e P tember 2012

s ymP osium it is ten years since the inaugural applied structural geology in mineral exploration and mining meeting in t hemes Kalgoorlie.For cutting edge nonlinear dynamics this time geoscientists symposia (gs) is linking with • mineralisation processes theresearch australian institute ofdon’t geoscientists miss (aig) to run the the Centre for symposium and related activities in september 2012. • digital mapping theE meetingxploration format follows Targeting the successful formula workshop • structural andrunning exploration used ten years ago. there will be short courses and technologies fieldat trips, the and the2012 major theme Kalgoorlie is “up-skilling”. Structural• overviews of controls on commodity types Geology and Resources meeting• university and inindustry training methods in structural and September. economic geology • case studies around the globe CET Professors Alison Ord and sPonsors i nternationally- Weronika Gorcyzk and Adjunctrecognised 4-6 September 2012 Professors Klaus Gessner andKeyn oteBruce sPea K ers: Hobbs will present the short• g regcourse: corbett (Sydney) Burswood Convention Centre • stephen cox (ANU) Non-linear and non-equilibrium• steffan h agemann (UWA) • bruce hobbs (UWA) 2012 is the third consecutive year that thermodynamics without the• terry complex Pavlis (UTEP, USA) • howard Poulsen the CET will present a booth alongside mathematics, which will examine(Ottawa, Canada) the visit: www.aig.org.au contact: [email protected] • richard tosdal many of the movers and shakers of the new and exciting developments(Canada & USA)being Provisional information This document is up to date as of today. However, the organisers reserve the right to mining and exploration industry at the adaptmade and as necessary changein arrangements fractals, for the smooth and effectivenon-equilibrium running of the symposium and related activities. AMEC Convention in Perth. processes and the understanding of The AMEC Convention is an annual complexity in geology. event hosted by the Association of The workshop will examine all scales Mining and Exploration Companies and from the microscopic to the lithospheric attended by a range of government and in a non-technical manner to develop industry representatives. participants’ understanding of the It is a priority to come and visit the CET complexity in hydrothermal systems. booth at AMEC 2012 if you’re looking to With significant applications to mineral find out more about cutting-edge mining exploration and prospectivity this exploration research, industry-specific in short course is perfect for geologists, house training options or short courses engineers and academics who want a across a range of geological themes. new systems and process oriented way CET Emeritus Professor David of thinking about mineralising systems. Groves will be a guest speaker at the The Structural Geology and Resources conference with more information meeting will be held in the WMC available in the Conference Programme Conference Centre in Kalgoorlie from at amec.org.au the 26-28 September and the short The AMEC Convention 2012 is at the course on 29 September. Registrations Burswood Convention Centre in Perth, close 14 September, please see Western Australia, on 4-6 September www.aig.org.au to download a 2012. The CET can be located at booth registration form or contact Jocelyn number 107. Thompson at [email protected] for more information.

www.cet.edu.au 17 Applied Structural and Field Geology Minerals Geoscience Masters Course 23 July - 3 August 2012

18 There is a large step between learning structural geology and effectively applying it to problems facing the mineral industry. This course aims to bridge that gap. The course is very practical and highly interactive. The main focus is on marrying the understanding of structures, fluid flow and alteration in PRACTICAL geometrical analysis of mineral systems from drill core and outcrop to the regional scale with the intent of improved resource delineation and targeting. Participants will leave with an increased confidence in applying structural geology to their work environment. The course comprises alternating sessions of brief lectures and practical exercises / case studies from world class mineralisation systems around the world. Moreover, the course gives participants a snapshot of the future, how advanced process modelling and computer vision are shaping the way structural geology is effectively applied to exploration and mining problems. The course notes are extensive and will serve as an ongoing reference manual for participants.

MODULE ONE Applied Structural Geology in Mining and Mineral Exploration 3 days Prof Cam McCuaig (UWA, Director-CET), Research Prof John Miller (CET) What sort of structural features do you need to recognize and record in mineral exploration and how can you interpret this data to help target ore bodies? This 3-day module will help answer these questions. The module provides an introduction to the principles of structural geology with a focus on mineral exploration from mine to regional scale. Illustrated with examples from real deposits, topics include: analysis of folded rocks, faults and fault systems, regional structural and tectonic environments, tectonic styles and their geophysical expression. The module comprises alternating sessions of lectures and practical exercises.

MODULE TWO Advanced Structural Geology for Mineral Exploration and Mining* 2 days Research Prof John Miller (CET) This module covers advanced brittle processes. Topics include: controls that different faults have on ore shoot geometry within an ore body, controls on the slip direction of a reactivated fault in 3D, calculation of slip vectors on faults using striation, extension vein and other data. This will also highlight field data required to undertake such analyses. Participants will apply these techniques in a practical exercise, using a real data set used in the discovery of the Golden Gift lodes, to predict the offset location of an ore body.

MODULE THREE Applied Structural Geology and Field Mapping (Field Excursion) 7 days Research Prof’s John Miller (CET) and Steven Micklethwaite (CET) This 7-day field excursion to the world class Au and Ni district of the Kalgoorlie-Kambalda-Coolgardie region of Western Australia and centres on the practical application of structural mapping to the mineral exploration and mining industry. The module involves a series of field exercises designed to: 1) demonstrate what structural features to map and how to recognise them in the field (the main thrust of the course); 2) show how to integrate field structural observations with regional geological and geophysical data sets; 3) illustrate how to approach mine-scale mapping; and 4) demonstrate how to integrate structural field observations with an understanding of mineral systems in mine to regional scale exploration. Module participants should come away from the excursion with a greatly increased mapping ability, and confidence in applying this to problems faced in the mining and exploration industry.

This course will run over a series of 3-modules, with industry attendees able to enrol in these individually or as a 3-module course. Module-3 costs include accommodation, transport, breakfast, lunch and dinner. Corporate Members will receive a 30% discount on Mondule-2 and -3. For more information please contact Cindi Dunjey at [email protected], phone 08 6488 2640 or see www.cet.edu.au/education-and-training. www.cet.edu.au 19 CET newsletter issue 20 June 2012 CETj Pro ects Global projects and research

Prospectivity for Ni-Cu-(PGE) systems in SE Greenland Pechenga Complex Mmineralization Kevitsa in SE Siberian Traps Prospectivity mapping in Wabigoon subprovince

Ivrea Zone Mineralization in Eastern Tianshan

West Qinling

Au-Sb-Pb-Zn Tibetan See map of Lamping- plateau project Simao basin West Africa

Jaspilite-hosted iron ore 4D model of Tennant Creek

Au targeting in Pataz Andorinhas ARC Linkage 4D evolution BIF-hosted iron ore of crustal architecture and control on mineral systems Pampeanas initiative

See map of Mafic intrusions in the Musgraves Western Australia Farallón Negro project Structural controls in Iron Quadrangle

Casposo Ni-Cu-(PGE) ARC Linkage MultiscaleARCARC Structural controls Au-Ag-Mn dynamics of ore body formation Sn-W 4D modelling and Au Sn-W project Fe Terrane/country-scale projects prospectivity analysis

Au / Au-Cu

20 Prospectivity for Ni-Cu-(PGE) systems in SE Greenland Pechenga Complex Mmineralization Kevitsa in SE Siberian Traps Prospectivity mapping in Wabigoon subprovince

Ivrea Zone Mineralization in Eastern Tianshan

West Qinling

Au-Sb-Pb-Zn Tibetan See map of Lamping- plateau project Simao basin West Africa

Jaspilite-hosted iron ore 4D model of Tennant Creek

Au targeting in Pataz Andorinhas ARC Linkage 4D evolution BIF-hosted iron ore of crustal architecture and control on mineral systems Pampeanas initiative

See map of Mafic intrusions in the Musgraves Western Australia Farallón Negro project Structural controls in Iron Quadrangle

Casposo Ni-Cu-(PGE) ARC Linkage MultiscaleARCARC Structural controls Au-Ag-Mn dynamics of ore body formation Sn-W 4D modelling and Au Sn-W project Fe Terrane/country-scale projects prospectivity analysis

Au / Au-Cu

www.cet.edu.au 21 CET newsletter issue 20 June 2012 CETj Pro ects Focus on CET Western Australian and West African projects and research

West Africa Projects and Research Fété Kolé AMIRA P934A WAXI-2 and ARC Linkage Senegal 4D evolution of crustal architecture and Inata / Souma trend 4D regional architecture and Au mineralization Geometric and genetic control on mineral systems Belahouro region controls of Sadiola Au Mali Geometric and genetic controls of Morila Au Burkina Faso Bamako Ouagadougou

Geometric and genetic 4D evolution of Siguiri Au controls of Syama Au

Guinea

Geometric and genetic controls of mineralization in the Yanfolila belt

Ghana Sierra Leone Structural controls at Subika and surrounding Au mineral system Ivory Coast

Liberia Yamoussoukro ATLANTIC OCEAN 4D controls on geometry and genesis of Obuasi Au Accra Au 040 80 160 240 320 km WAXI research key localities Updated May 2012

22 Western Australian Projects and Research TIMOR SEA

Ni-Cu-(PGE) Au/Au-Cu EIS GSWA - 'Kimberley' Kununurra Fe MT survey location 2 Terrane-scale projects

050 100 200 300 400 500 Fitzroy Crossing km

Updated May 2012 4D model of the Tanami: Au mineral systems/prospectivity analysis

1 Arunta EIS GSWA Iron ore genesis/alteration in the eastern Hamersley region

12 Newman Lithospheric architecture Lithogeochemical of W Musgraves EIS GSWA - prospectivity in the 'East Capricorn' 4D evolution of Plutonic Musgraves greenstone belt and Au

3

8 9 EIS GSWA - Lithospheric architecture BIF-hosted iron ore 'Musgraves' in the Weld Range of NE Yilgarn ARC Linkage - Multiscale INDIAN 7 dynamics of ore body OCEAN 15 Ni-Norseman- formation Wiluna GB Laverton 6 ARC Linkage - 4D evolution 13 of crustal architecture and its control on mineral systems MERIWA M358 - Hydrothermal Kalgoorlie footprints of Ni deposits 14 ARC Linkage - 5 Tectonic evolution 10 of Southern Cross - Au 4 EIS GSWA - 'Balladonia' Perth 11 EIS GSWA - 'Fraser' EIS GSWA 'S-Yilgarn'

ARC Linkage - SOUTHERN OCEAN controls on NiS camps ARC Linkage - Multiscale dynamics of ore body formation

1 - Telfer; 2 - Speewah Ti-V genesis; 3 - W-Musgrave prospectivity analysis of NiS systems; 4 - 4D evolution of St Ives field; 5 - Coolgardie; 6 - 4D model of Leonora; 7 - 4D evolution of Agnew gold field; 8 - Structural controls at Jundee; 9 - BIF-hosted Wiluna iron ore; 10 - 4D model and structural controls at Edna May; 11 - Structural controls of NiS at Flying Fox; 12 - Structural control/altera tion of BIF-hosted iron ore at Paraburdoo and Mt Tom Price; 13 - Mineral systems analysis at Sunrise Dam; 14 - BIF-hosted iron ore in the Koolyanobbing GB; 15 - Rosie Nickel

www.cet.edu.au 23 CET newsletter issue 20 June 2012

Training in leaps and bounds LEAPFROG is one of the most exciting 3D visualisation packages out there. It is particularly useful for geologists trying to visualise the Earth in 3D using disparate datasets (maps, topography, structural measurements, geophysics etc) and large drill core datasets. One of its advantages is that it uses implicit modelling, allowing us to construct our geological models in a matter of hours when traditional wireframing approaches can take weeks to months. On May 10-11th, fifteen CET staff and students were able to take advantage of Dr Jun Cowan (Orefind), during a 2-day training workshop co-ordinated by the CET Hammond-Nisbet fellow Dr www.leapfrog3d.com Steven Micklethwaite and our effervescent training officer Cindi Dunjey. Jun was one of the original drivers of the development of LEAPFROG, and is widely recognised as its most experienced user, so the training provided was of the highest quality. We all crammed in to the CET Resource Room and were not disappointed. Jun was able to take us from the basic import of data to the construction of complicated lithological and grade models in a couple of hours - providing top quality training to help top quality research into the future, and ultimately top quality graduates emerging from CET for industry. Erwann Lebrun, one of the PhD participants put it well when he said how he finds LEAPFROG intuitive and that the workshop was especially valuable in training him in the rapid interpolation of bedding, ore shoots and structural trends.

Participants from left: Lijuan Ying, Carissa Isaac, Steven Micklethwaite, Nicolas Thebaud, Matt Hill, Jun Cowan, Geoff Batt, Erwann Lebrun, Quentin Masurel, Qingtao Zeng, David Stevenson, Margaux Le Vaillant, Denis Fougerouse, Luis Avila, Stanislav Ulrich, Jianwei Zi.

24 T

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n

P o l i u t m s e e u o q r e n h o s t t to t i Plume... tha Join the CET and invited guest experts as they debate on some of the fundamental questions about the dynamics of the processes that lead to plumes, LIP’s, hot spots and intra-plate volcanoes. The discussion will concentrate on processes that effect continental lithosphere, as they are relevant to the Australian continent and mineral deposits that still have questionable origin. The current state of theories on mantle plumes and their relation to classical plate tectonics shows that the “plume” problem in geodynamic research is in a period of serious crisis. The number of publications presenting alternative concepts is steadily increasing. The initial suggestions of plume advocates are disputed, and not without grounds. Questions have been raised for instance as to whether all plumes are derived from the mantle– core interface; whether they all have a wide head and a narrow tail; whether they are always accompanied by uplifting of the Earth’s surface; and whether they can be reliably identified by geochemical and thermal signatures. More generally, the very existence of plumes has become the subject of debate although plumes of a very large size (such as those under the Pacific and under Africa) seem to be indisputable. Alternative ideas contend that all plumes, or hot spots, are directly related to plate-tectonic mechanisms and appear as a result of shallow tectonic stresses, delamination, and /or Rayleigh-Taylor instabilities at the base of lithosphere with subsequent decompression, and melting of the mantle. 12:45 – 13:00 – OPENING STATEMENT MECHANICS and TECTONICS (led by Weronika Introduction to the debate (Weronika Gorczyk) Gorczyk) What are the mechanic of the thermal/ compositional upwellings and downwellings? What GEOCHEMISTRY (led by Tony Kemp) What tectonic signatures are left in the crust and on the geochemical signatures are characteristic for mantle surface? What is the response of the upper mantle plumes? How signatures from deep mantle differ of these processes? from signatures from shallow mantle? 15:45 – 16.00 – Franco Pirajno Komatiites and LIPs – what the isotopes are telling us? 16.05 – 16:20 – Jean-Pierre Burg 16:20 – 16:50 – Questions and Discussion 13.00 – 13.15 – Steve Barnes 16:50 – 17:30 OPEN DISCUSSION 13.20 – 13.35 – Svetlana Tessalina 17:30 – 18:30 – nibbles and drinks 13.35 – 14.05 – Questions and Discussion Every participant will have 15 min presentation and PROCESSES and MINERAL SYSTEMS (led by then after the session will answer pre-prepared Yongjun Lu) Are the mineral systems far from questions by the session convener and questions subduction zones products of mantle plumes from the public. interacting with mantle lithosphere and crust? Is there difference in terms of metal endowment The day will end with open debate and summary between thermal anomalies from deep mantle and of the most important arguments presented by the shallow mantle? speakers. 14.15 – 14.30 – Jon Hronsky 19 July 2012 14.35 – 14.50 – Bruce Hobbs Robert Street Lecture Theatre (G.16), 14.50 – 15.20 – Questions and Discussion Ground Floor - Robert Street Building, UWA 15:20 – 15:45 – Afternoon tea Please RSVP to [email protected] for catering purposes. www.cet.edu.au 25 CET newsletter issue 20 June 2012 Valuing Vendor Consideration: Performance Shares and Options Professor Pietro Guj1 and Atul Chandra2 1 Centre for Exploration Targeting, University of Western Australia 2 Centre for Exploration Targeting, Curtin University

Vending of exploration and mining Now and projects may include consideration in Cash the form of equities such as performance Certain shares and options contingent on the achievement of uncertain specific milestones. Milestones may be of a financial nature, e.g. future profit levels, share price or of a physical nature such as uncertain future delineation of Now and consideration specific levels of mineral resources. Recent changes to accounting standards Certain shares require that every identifiable asset including tangible and intangible ones, such as acquired mining rights, need to be recognised and measured at their “fair value”, when reporting vendor consideration. This study presents Year 0 to 3 Consideration a methodology to estimate the “fair contingent on options value” of these equities on a probability- share price adjusted basis in the context of the sale of a West African iron ore exploration project. Use of this methodology should not be limited to its retrospective application but can also provide significant benefits during negotiations. Performance Shares Introduction Year 0 to 4 Asides from cash, consideration to contingent on the vendor of mineral exploration resource and development projects frequently includes “equities or scrip”, i.e. vendor’s consideration shares and/or options issued Performance at the time of acquisition. contingent on options Vendor consideration in many cases performance may also include performance shares share price and options to be issued in the future, contingent on certain milestones being achieved. Milestones may be of a financial nature e.g. future profit levels, share prices, Total value of vendor consideration aligned to or in some cases, be of a physical nature, as for instance future delineation of specific accounting standards levels of mineral resources, complying with specific JORC categories, during successive phases of future exploration. Components of vendor consideration.

26 Contractual arrangements also generally specify This study outlines a methodology to value the what the scope of the delineation drilling program whole of the consideration, both in terms of tangible should be in terms of total metres or number of and contingent financial assets, received by the holes to be drilled and place time restrictions on vendor as cash and equities on the acquisition date its execution, thus preventing future open-ended of an iron ore exploration project in a West Africa. liabilities. The study also considers how the above valuation Irrespective of the uncertainty, it is important from methodology is consistent with recent trends and both the vendor company’s and the acquiring changes in the financial accounting standards company’s points of view, that there is a clear and currently applicable to reporting of this type of mutual understanding of the “fair value” of the transactions. consideration and of the financial consequences that stem from it. Valuation Methodology In addition, current accounting standards require Case study description that every identifiable asset, including tangible and The Pre-Cambrian terranes of West Africa have intangible ones, such as acquired mineral resources significant prospectivity for and supported past / mining rights, to be recognised and measured production of iron ore. Recent dramatic increases at “fair value” when determining and reporting in demand for iron ore and related price escalation vendor’s consideration. These may include vendor’s have created a strong incentive to actively explore performance shares and options irrespective of in this region and promoted a number of significant whether their probability of realisation is very low. acquisitions of iron ore projects at both the If the acquiring company is listed and its shares development and the exploration stages. are traded on the stock exchange, valuation of Due to their obvious surface expression and consideration shares and options is relatively geophysical footprint the location of most of the straight forward. In contrast, the valuation of large deposits in the region and their exploration performance shares and options contingent on the potential is reasonably well known. However, achievement of specific resource milestones is much the resources of only a few deposits have been more complex, because their value is subject to a adequately delineated and most projects are still at number of uncertainties. various exploration stages irrespective of their, in It stands to reason that as new mineral resources are some cases, significant size potential. The latter is delineated, the net value backing of the acquiring often quantified as a “realistic” exploration target in company will increase. Whether the share price will terms of possible, but generally uncertain, tonnages also increase after a resource milestone has been and grades. In some cases, the description of a reached and a new tranche of performance shares deposit includes some indicated and inferred have been issued will depend upon whether the resources as well as a “realistic” or sometimes incremental value of the newly delineated resources “aspirational” exploration target. is large enough to compensate for the dilution effect The example in this paper is based on the valuation brought about by the increase in the total number of of the consideration paid for an actual project in shares on issue. West Africa but its parameters have been recast to A possible increase in share price may result in maintain confidentiality. some of the vendor’s consideration options and The exploration project in this case study consists performance options getting “in the money”. of extensive granted exploration tenements in a Whether and when these options will be exercised hilly and densely wooded terrain a few hundred will obviously depend on their exercise price and kilometres from the coast and about 100 kilometres time to expiry. Shares issued following exercise of from a government rail system which is currently vendor’s consideration and performance options being upgraded by a competitor located further dilute the share price, to a lesser degree than inland. Geological reconnaissance and a low-level vendor’s shares, as the exercise price represents a aeromagnetic survey have confirmed the presence potentially significant increment in cash contribution of extensive bands of itabirites over a strike length of to the net assets of the acquiring company. several kilometres. Systematic rock-chip sampling Further uncertainty is also created by the fact that of outcrops and screes and limited shallow drilling while mineral resources are being delineated, the indicate that the itabirites have been enriched in share price may be affected by changes in the price iron and contain relatively low levels of undesirable of the commodity being explored for. However, if elements. There is general geological consensus resource delineation takes place over a relatively that the prospect may host significant tonnages of short period of time, this can be neglected. iron ore amenable to open-cut exploitation at grades between 50% and 55% Fe.

www.cet.edu.au 27 CET newsletter issue 20 June 2012

The whole exploration project is being sold for a project, which were trading at $ 1.50. The net combination of cash and equities, such as: assets of the acquiring company, including cash balances sufficient to satisfy the transaction cash —— Consideration shares and options of the acquiring consideration needs, was $ 255 million. company; and Probability of achieving milestones —— Four tranches of performance shares and options contingent on the achievement of exploration As both the performance shares and options are milestones in the form of increasing levels of JORC- contingent on the achievement of specific milestones compliant resources as summarised in Table 1. they are subject to resource uncertainty. This is part of the “private risks” of the project. In addition, the As each resource milestone is achieved, a new value of the performance share issued and whether tranche of performance shares and options will be any of the performance options will “get in the issued, thereby creating five mutually exclusive and money” and be exercised are a function of future collectively exhaustive possible events in Table 2 share prices, which in turn are influenced by the given below. volatility of iron ore prices, that is to “market risks”. As discussed below, the probability of the first event The first step in estimating the probability of is high, while those of the following events decrease achieving individual resource milestones is to from relatively low to very low. estimate what is the probability that on the basis There were one hundred twenty million shares of our current geological knowledge of the project, of the acquiring company on issue at the time a forthcoming program of systematic drilling will of the announcement of the acquisition of the actually define a resource independently of its

Vendor Cash $M Consideration Consideration Tranche Performance Performance Excercise Excercise Time Consideration Shares Nos. M Options Nos. M No. Shares Nos. M Options Nos. M Price $ per Years Components option

Consideration 100 100 50 $1.75 3 Performance Range Mid-point Milestones mid-point contained iron ore iron metal Billion Tons BT @52% Fe Bt of Ore 0.3 0.1575 No performance shares or option issued below 0.6 Bt On 0.6 Bt 1 50 25 $2.00 4 0.9 0.4725 On 1.2 Bt 2 50 25 $3.00 4 1.5 0.7875 On 1.8 Bt 3 50 25 $4.00 4 2.1 1.1025 On 2.4 Bt 4 50 25 $5.00 4 2.7 1.4175 Upper limit assumed at 3 Bt

Table 1: Components of Vendor Consideration

Milestones Tranches Theoretical Zipf Geologists’ estimate estimate P(< 0.6 Bt) = No new issues 84.0% versus 76.0% P( 0.6 to 1.199 Bt) = Tranche 1 8.7% versus 12.0% P(1.2 to 1.799 Bt) = Tranches 1 & 2 2.8% versus 6.0% P(1.8 to 2.399 Bt) = Tranches 1, 2 & 3 1.4% versus 4.0% P(>2.4 Bt) = Tranches 1, 2, 3 & 4 0.7% versus 2.0%

Table 2: Milestones dependent tranches and probability estimates

28 ultimate size. The separate opinions of three different and 2 deposits (formerly belonging to RIO)), with geologists familiar with the project was sought and combined resources in excess of 7 billion tonnes their subjective probability estimates of delineating a of iron ore at a grade of between 55% and 70% Fe JORC-compliant resource ranged between 60% and (i.e. 4.38 Bt of iron metal) currently represent the 90%, with a mean of 75%. rank 1 deposit in the distribution (Guinea Mines Department, 2011). When applied to the Zipf’s The next step was to estimate the conditional or curve this generates a series of decreasing possible Bayesian probability that given that a resource is discrete deposit sizes, i.e. rank 2 = 2.19 Bt, rank 3 = delineated, it will fall within each of the five tonnage 1.46 Bt etc. The Tonkolili deposit in Sierra Leone with intervals defined as resource milestones. As the 6.3 Bt of JORC-compliant measured and indicated four resources milestones are 0.6 Bt, 1.2 Bt, 1.8 Bt resources containing 1979.3 Mt of iron metal and and 2.4 Bt of iron ore, they define five ranges within inferred resources and an exploration potential to which the size of a possible resource may fall, i.e. roughly double this figure (African Minerals Limited, 0 to 0.599 Bt, 0.6 to 0.999 Bt etc. Two approaches 2010) fits at rank 2, with the Nimba deposit in can be taken in estimating the probability that a Guinea/Liberia with resources of 2.7 Bt of ore with resource, if delineated, will fall in each of the above a grade of around 60% (i.e. 1.59 Bt of iron metal) intervals, i.e. the: probably a contender with other deposits not yet Geologists’ subjective estimates fully delineated for rank 3. The fact that the ultimate The probability estimates of each of the three sizes of the rank 2 and 3 deposits is already in geologists were different, but not drastically so and excess of their theoretical Zipf-defined size would were, therefore, combined for the purpose of this tend to indicate that the resources of the Simandou study in Table 2. Range deposits are still probably not yet fully delineated and may increase as current feasibility Theoretical rank statistic (Zipf) approach studies progress. Should this happen, the entire Recent research by Guj et al.(2011) and Mamuse Zipf curve will lift accordingly. As a consequence, and Guj (2011) which indicates that the distribution the theoretical probabilities of the size of the project of the size, in terms of metal content of some mineral ultimately falling in the various milestone-defined deposits (e.g. gold and nickel sulphides in the ranges generated by the Zipf curve may prove to Archaen Craton of Western Australia) abides by the be conservative. The degree of confidence in the Zipf’s power law. Although never attempted before, delineation of the resources of the top ranking there is no apparent reason why this technique deposits is therefore a major consideration in should not be applicable to iron ore in West Africa. the use of the Zipf’s law. The relevant probability The main difference is that, due to their large and estimates using both the approaches are shown in generally obvious surface expression, the majority Table 2. Out of the two approaches, the subjective of the larger iron ore deposits have already been geologists’ probability estimates were used to identified, but in the majority of cases, their actual estimate the expected or probability-weighted value size has not yet been adequately delineated. of the performance vendor shares and options as discussed below, while the theoretical probability The iron ore deposits in the Simandou Range in distribution was used to establish their “bottom” Guinea, (i.e. including the RIO-Chinalco’s Simandou value. deposit and Vale’s Zogota and Simandou Blocks 1 Figure 1 : Decision tree showing the expected value of the performance shares. EXPECTED VALUE OF PERFORMANCE SHARES 76.0% Resource < 0.6 Bt Five mutually exclusive and collectively exhaustive possible events Probability Cummulative Value weighted Payoff Event Geologists Share tranches of tranche $ $ $ ‐ Resources delineated 75.0%

12.0% Resource milestones Resource 0.6 to 1.199 Bt <0.6 Bt 76.0% 0 0 $ ‐ 0.6 to 1.2 Bt 12.0% 1 $ 158,522,222 $ 14,267,000 $ 158,522,222 1.2 to 1.8 Bt 6.0% 1 + 2 $ 409,662,066 $ 18,434,793 1.8 to 2.4 Bt 4.0% 1+2+3 $ 768,997,201 $ 23,069,916 75% 6.0% 2.4 Bt to 3.0 Bt 2.0% 1+2+3+4$ 1,246,541,844 $ 18,698,128 JORC resource Resource 1.2 to 1.799 Bt 100.0% EV of Performance Shares => $ 74,469,837

0$ 99,293,116 $ 409,662,066

4.0% EV of Resource 1.8 to 2.399 Bt performance shares $ 768,997,201

$ 74,469,837 2.0% Resource > 2.4 Bt

$ 1,246,541,844

25% No JORC resource 00

ExpectedFigure 1: Decision treevalue showing of the vendorexpected value performance of the performance shares. options The process of estimating the expected value of the performance options is not dissimilar from that www.cet.edu.auused for the performance shares, except that instead of using the share prices, the29 model uses as input values the intrinsic values of the various tranches of performance options, i.e. the values that these options would have if they were not contingent on the achievement of various milestones. The intrinsic value for the performance options can be easily calculated using the Black and Scholes formula as in Figure 2. For example, given a share volatility () of 65% and a risk‐free rate of interest (Rf) of 5.4%, the value of an options exercisable in 4 years at a price (X) of $ 2.00 against a corresponding spot price (S) of $ 3.17 (i.e. first tranche from Figure 3), if not contingent to the achievement of resources between 0.6 and 1.2 Bt of ore being delineated, would be $ 2.06. The intrinsic values of the performance options corresponding to the other resource milestones can be similarly determined as shown in Figure 2.

Figure 2: Expected value of vendor performance options

EXPECTED VALUE OF PERFORMANCE OPTIONS 76.0% Resource < 60. Bt Intrinsic vale of options (as if not conditional on milestones) Using Black and Scholes formula with  = 65%, T = 4, Rf = 5.4% $ ‐ S X Call value Tranche <0.6 Bt N.A. $ ‐ 12.0% 0.6 to 1.2 Bt $ 3.17 $2.00 $ 2.06 1 Resource 0.6 to 1.199 Bt 1.2 to 1.8 Bt $ 5.02 $3.00 $ 3.33 2 1.8 to 2.4 Bt $ 7.19 $4.00 $ 4.88 3 $ 51,500,000 2.4 Bt to 3.0 Bt $ 9.55 $5.00 $ 6.61 4

75% 6.0% JORC resource Resource 1.2 to 1.799 Bt

0$ 32,976,115 $ 134,750,000 Five mutually exclusive and collectively exhaustive possible events Cummulative Probability Value of weighted 4% Event Geologist Options tranches tranche $ payoff $ EV of Resource 1.8 to 2.399 Bt Resources delineated 75.0% performance Options $ 256,750,000 Resource milestone <0.6 Bt 76.0% 0 $ ‐ $ ‐ $ 24,732,086 2% 0.6 to 1.2 Bt 12.0% 1 $ 51,500,000 $ 4,635,000 Resource > 2.4 Bt 1.2 to 1.8 Bt 6.0% 1 + 2$ 134,750,000 $ 6,063,750 1.8 to 2.4 Bt 4.0% 1+2+3$ 256,750,000 $ 7,702,500 $ 422,055,737 2.4 Bt to 3.0 Bt 2.0% 1+2+3+4$ 422,055,737 $ 6,330,836 100.0% EV of Performance Options =>$ 24,732,086 25% No JORC resource

00

Determining the “fair value” of the vendor’s consideration

Now that the values of all the individual components of the vendor’s consideration, both observable and contingent, have been established, it is a simple matter of summing them up to determine the “fair value” of the project, based on geologists’ subjective probability estimates, as follows:

7

CET newsletter issue 20 June 2012

Expected value of vendor performance shares transactions for similar exploration deposits in the and options region extracted from the Alexander Research’s The “fair value” of the project at the time of the database. The value used was $0.95/t of iron roughly Figureacquisition 1 : Decision will include: tree showing the expected value of theequivalent performance to $0.50/t shares. of iron ore. A much lower EXPECTED VALUE OF PERFORMANCE SHARES 76.0% Resource < 0.6 Bt Five mutually exclusive and collectively“bottom” exhaustive value possible eventsof $ 33.6 million was obtained using 1. The $ 100 million cash component of the Probability the theoreticalCummulative Zipf Valueprobability weighted Payoff distribution. consideration, Event Geologists Share tranches of tranche $ $ $ ‐ Resources delineatedIt 75.0% must be noted that these are the expected values 2. The market value of 100 million vendor’s12.0% Resource milestones Resource 0.6 to 1.199 Bt <0.6 Bt that76.0% would 0 apply to the0 $issuing ‐ of performance 0.6 to 1.2 Bt 12.0% 1 $ 158,522,222 $ 14,267,000 consideration shares, which accepting$ 158,522,222 that the1.2 to 1.8 Bt 6.0% 1 + 2 $ 409,662,066 $ 18,434,793 1.8 to 2.4 Bt shares4.0% 1+2+3only. These$ 768,997,201 values$ 23,069,916 are robust in so far as the current price of75% $ 1.50 per share incorporates6.0% 2.4 the Bt to 3.0 Bt four2.0% tranches 1+2+3+4$ of 1,246,541,844 performance$ 18,698,128 shares will actually be effect of the JORCacquisition resource transaction,Resource 1.2 towould 1.799 Bt be $ 150 100.0% EV of Performance Shares => $ 74,469,837 0$ 99,293,116 $ 409,662,066 issued, if the performance thresholds are achieved, million, 4.0% and the dilution from the possible exercise of the EV of Resource 1.8 to 2.399 Bt 3. Theperformance value of the 50 million vendor’s consideration shares $ 768,997,201 related performance options would have a relatively call options exercisable at a price of $ 1.75 per share $ 74,469,837 2.0% minor effect on them, as discussed later. over the next 3 years, which assumingResource > 2.4 Bt an annualised volatility of 65% for the company$ 1,246,541,844 share price and a Expected value of vendor performance options 25% risk-free rateNo of JORC interest resource of 5.4%, can be valued using The process of estimating the expected value of the Black and Scholes00 formula at $ 0. 64 per option the performance options is not dissimilar from that or total of $ 32 million, used for the performance shares, except that instead 4. ExpectedThe expected value (probability of vendor-adjusted) performance value of 4 optionsof using the share prices, the model uses as input Thepossible process future of tranchesestimating of theperformance expected sharesvalue of the performancevalues the options intrinsic is valuesnot dissimilar of the various from that tranches usedbeing for issued the performancesubject to the shares,achievement except of thatspecified instead of ofusing performance the share options, prices, thei.e. themodel values uses that as these inputresource values milestones the intrinsic and values of the various tranches ofoptions performance would haveoptions, if they i.e. were the valuesnot contingent that on the achievement of various milestones. The intrinsic 5. The expected value of 4 possible future tranches these options would have if they were not contingent onvalue the forachievement the performance of various options milestones. can be easily of performance options exercisable at various The intrinsic value for the performance options can be easilycalculated calculated using using the Blackthe Black and andScholes Scholes formula as in prices over 4 years being issued, subject to the formula as in Figure 2. For example, given a share volatilityFigure (2. )For of example,65% and given a risk a‐ freeshare rate volatility of (σ) of achievement of specified resource milestones. interest (Rf) of 5.4%, the value of an options exercisable in65% 4 yearsand a at risk-free a price rate (X) of interest$ 2.00 against (Rf) of 5.4%,a the correspondingExpected value spot of vendorprice (S) performance of $ 3.17 (i.e. shares first tranchevalue from of Figure an options 3), if exercisablenot contingent in 4 years to the at a price achievementFigure 1 shows of that resources the expected between value 0.6 of and 1.2 Bt of ore(X) being of $ 2.00delineated, against awould corresponding be $ 2.06. spot The price performance shares (i.e. $74.5 million) obtained (S) of $ 3.17 (i.e. first tranche from Figure 3), if not intrinsicusing the values subjective of the expert performance geologists’ options probability corresponding contingent to the other to the resource achievement milestones of resources can be between similarlyestimates determined and the average as shown market in Figurevalue of 2. one 0.6 and 1.2 Bt of ore being delineated, would be $ tonne of iron metal in the ground derived from actual 2.06. The intrinsic values of the performance options Figure 2: Expected value of vendor performance options

EXPECTED VALUE OF PERFORMANCE OPTIONS 76.0% Resource < 0.6 Bt Intrinsic vale of options (as if not conditional on milestones) Using Black and Scholes formula with  = 65%, T = 4, Rf = 5.4% $ ‐ S X Call value Tranche <0.6 Bt N.A. $ ‐ 12.0% 0.6 to 1.2 Bt $ 3.17 $2.00 $ 2.06 1 Resource 0.6 to 1.199 Bt 1.2 to 1.8 Bt $ 5.02 $3.00 $ 3.33 2 1.8 to 2.4 Bt $ 7.19 $4.00 $ 4.88 3 $ 51,500,000 2.4 Bt to 3.0 Bt $ 9.55 $5.00 $ 6.61 4

75% 6.0% JORC resource Resource 1.2 to 1.799 Bt

0$ 32,976,115 $ 134,750,000 Five mutually exclusive and collectively exhaustive possible events Cummulative Probability Value of weighted 4% Event Geologist Options tranches tranche $ payoff $ EV of Resource 1.8 to 2.399 Bt Resources delineated 75.0% performance Options $ 256,750,000 Resource milestone <0.6 Bt 76.0% 0 $ ‐ $ ‐ $ 24,732,086 2% 0.6 to 1.2 Bt 12.0% 1 $ 51,500,000 $ 4,635,000 Resource > 2.4 Bt 1.2 to 1.8 Bt 6.0% 1 + 2$ 134,750,000 $ 6,063,750 1.8 to 2.4 Bt 4.0% 1+2+3$ 256,750,000 $ 7,702,500 $ 422,055,737 2.4 Bt to 3.0 Bt 2.0% 1+2+3+4$ 422,055,737 $ 6,330,836 100.0% EV of Performance Options =>$ 24,732,086 25% No JORC resource

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Figure 2: Decision tree showing the expected value of the vendor performance options. Determining the “fair value” of the vendor’s consideration 30 Now that the values of all the individual components of the vendor’s consideration, both observable and contingent, have been established, it is a simple matter of summing them up to determine the “fair value” of the project, based on geologists’ subjective probability estimates, as follows:

7 corresponding to the other resource milestones can the purchase agreement by treating each transaction be similarly determined as shown in Figure 2. separately (IFRS, 2011, p.1). Determining the “fair value” of the vendor’s From 2009, the acquiring company has to measure consideration the identifiable assets and liabilities at fair values Now that the values of all the individual components on the acquisition date (Locke, 2011, AASB 3.18, of the vendor’s consideration, both observable and pp.133) to arrive at the vendor consideration. This contingent, have been established, it is a simple method is known as the “acquisition method”. The matter of summing them up to determine the “fair emphasis is now on increasing the “recognition”, value” of the project, based on geologists’ subjective particularly of intangible assets at their fair values, probability estimates, as follows: instead of adjusting the value of existing assets and liabilities. The earlier discretionary allocation method of purchase consideration is no longer allowed Cash component $ 100.0 million (Cheng, 2008, p.37). Market value of 100 million $ 150.0 million shares @ $1.50 per share Unlike the “purchase method”, acquired intangible Value of call options @ $0.64 $ 32.0 million assets (e.g. mineral resources/ mining rights), per share over next 3 years need to be recognised regardless of the degree Expected value of 4 tranches of $ 74.5 million of probability (earlier more than 50%) that the performance shares over next 4 years economic benefits would flow in from them. This Expected value of 4 tranches of $ 24.7 million would be reflected in the vendor consideration performance options over next 4 years based on probabilistic estimates basis. Total fair value of vendor’s $381.2 million To determine vendor consideration, accounting consideration standards on business acquisitions require the acquiring company to recognise and measure all The project value of $ 381.2 million will appear as an recognisable assets and liabilities at fair value, for asset in the balance sheet of the acquiring company both its determinable and contingent components. together with $ 131.2 in liabilities relating to the Thus, the vendor consideration payable by equity, tranches of consideration and performance options, options, performance shares and performance resulting in a net asset value of $ 150.0 million. options to acquire the mineral resources / mining If the same calculation is carried out based on rights for an exploration company, needs to be fairly the conservative theoretical Zipf curve probability valued by recognising and measuring the “intangible estimates then the value is: assets” being mineral resources / mining rights using the methodology explained in the earlier part Cash component $ 100.0 million of this paper. Market value of 100 million $ 150.0 million shares @ $1.50 per share Conclusion and Recommendations Value of call options @ $0.64 $ 32.0 million per share over next 3 years —— Recent changes in international, Australian and US accounting standards require that vendor’s Expected value of 4 tranches of $ 33.6million performance shares over next 4 years consideration be determined at “fair value” including the expected (probability-weighted) Expected value of 4 tranches of $ 11.1 million performance options over next 4 years value of all its contingent components irrespective of the magnitude of their individual probability of Total fair value of vendor’s $ 326.7 million consideration realisation. —— The consideration for the acquisitions of mineral This is a “bottom fair value” estimate of the total exploration/mining projects often includes vendor’s consideration. The $54.5 million difference performance shares and options contingent on the is a measure of the geologists’ optimism. achievement of specific resource milestones. These are generally represented by increased levels of Financial Accounting Reporting of JORC-compliant mineral resources. The value of Business Acquisitions these resources in the ground is best derived on a per-tonne-of-contained-metal basis using the market In the past, vendor consideration was allocated method, i.e. from actual comparable transactions by the acquiring company to assets and liabilities which have occurred in the region. purchased, based on their estimated values. This was known as the “purchase method”. Goodwill —— The level of realism of the subjective estimation of was the excess of the vendor consideration over the the probability of achievement of various deposit- value of the vendor’s net identifiable tangible and size milestones, provided by the project geologists, intangible assets being acquired, as estimated on is critical to arrive at an acceptable estimation of the purchase date and/or at every successive step of the corresponding payoffs, which are the main

www.cet.edu.au 31 CET newsletter issue 20 June 2012

inputs for the calculation of the “expected fair value” IFRS, 2011. The revised IFRS 3 and amended IAS 27, of vendor’s performance shares and options. As International Financial Reporting Standards Foundation subjective geologists’ probability estimates are [online]. Available from:

32 Allan Trench Daniel Demystifying risk Packey A new book from CET Professor Allan Trench

Professors Allan Trench and Daniel Packey have authored a NEXT TOP new book “Australia’s Next Top Mining Shares – Understanding Risk and Value in Minerals Equities” published by Major Street MINING Publishing in May. The book, which runs to 350 pages, details the mineral economics and market outlooks for 23 commodities and also includes profiles of 52 companies as case study examples AUSTRALIA’S SHARES of companies active in each commodity sector. Additionally, the Understanding Risk and Value in Minerals Equities book introduces a simple high-level framework of the controls upon risk and value across the mining cycle as they vary by Au Gold Co Ag Pt commodity type. Country risk is also explained, as are the Cobalt Silver Platinum principles of demand and supply as they come together in mineral Zn Pb commodity analysis. Mineral markets covered are Aluminium, Zinc Lead Cu Copper Coking Coal, Copper, Diamonds, Gold, Iron Ore, Lead, Lithium, U Sn Manganese, Mineral Sands, Molybdenum, Nickel, Niobium, Uranium Tin Phosphate Rock, Platinum Group Metals, Potash, Rare Earth Fe Ni Rh Al Iron Nickel Rhodium Aluminium Metals, Silver, Thermal Coal, Tin, Tungsten, Uranium and Zinc. Mn Mo Si Ti Manganese Molybdenum Further details are available at www.majorstreet.com.au Silicon Titanium Mg Pu Ir Magnesium Plutonium Iridium Department of Mineral and Energy Economics

Curtin’s Department of Mineral and Energy Economics (DMEE) has an international reputation for excellence in mineral and energy economics education and research. Originally established within the University’s Western Australian School of Mines (WASM), DMEE is now housed within the Curtin Graduate School of Business (CGSB) in Perth’s central business district, complementing the CGSB’s reputation as a leading provider of graduate management education with particular expertise in resources and energy markets. The courses offered by DMEE enable resources sector professionals to combine sound technical knowledge in mineral exploration, extraction and processing with an appreciation of the economic frameworks within which the sector operates. This interdisciplinary skill-set is becoming increasingly vital to resource sector companies. Most students within DMEE are mid-career resources and energy sector professionals preparing to move into more senior management or decision-making roles. All students must have at least three years of industry experience and a first degree to qualify for entry. The teaching programs are offered in a highly flexible way to cater for busy professionals endeavouring to balance work and study commitments, and for students working on a fly-in-fly-out basis. While the courses have a strong theoretical base, they are characterised by their practical relevance. All teaching faculty have considerable experience in industry. Participants also benefit from the global popularity of the courses providing great opportunities for international perspectives to be shared and for long-term international contacts and networks to be established. To date, the courses have attracted students from more than 30 countries in North and South America, Europe, Asia, Oceania and Africa. For more information, contact The Curtin Graduate School of Business at [email protected] www.cet.edu.au 33 CET newsletter issue 20 June 2012

New Student Profiles Aileen Mirasol-Robert I’m Aileen Mirasol-Robert, I was born and raised in the Philippines. At an early age, I was already fascinated with the diverse geologic events that we experience in my country and with the eagerness to understand these processes I took Geology for my studies. I graduated with a Bachelor’s degree in Geology at the University of the Philippines-Diliman in 2003. With a strong passion for scientific research, I stayed in academia, teaching undergraduate geology courses in the same university while doing an MSc degree and research focused on geo- hazards and geomorphology. I moved to Europe in early 2007 and explored France. In 2008, I was selected to do an MSc (hons) in System Earth Modelling and awarded with the Utrecht Excellence Scholarship at Utrecht University in the Netherlands. My MSc focused on the applications of computer models to the different disciplines in the geosciences: geo-hazards, hydrological and geological systems, mineral and petroleum exploration. I became very interested on the combination of field and remote sensing data to create 2D and 3D mineral maps and models used for mineral exploration studies, also on the dynamics of fluids and their different behaviours seen through computer models. My MSc thesis is entitled, “Analysis of Submarine Groundwater Discharge to Manila Bay: 3D Density Dependent Hydrogeological Modelling of the South-eastern coastal zone of Bataan, Philippines.” After completing my degree in 2010, I was hired by Deltares as a trainee and worked on hydrological models in West Flanders (Belgium and Netherlands) and Dodo Project in Mauritius. December last year, I was awarded an International Postgraduate Research Scholarship which brings me to UWA to do a research project supervised by Professor’s Campbell McCuaig, Paul Greenwood, Kliti Grice (CU) and Caroline Jaraula (CU). My PhD project is part of the CSIRO National Research Flagship “Minerals Down Under” – Organic Geochemistry of Mineral Systems Cluster. I will focus on field characterisation of Australian gold deposits. This research aims to investigate the role of organic matter in the actual source, transport and deposition of gold.

Denis Fougerouse

Denis’s interest in Geology appeared during high school with the first courses of natural sciences. Following this track, he decided to go to the University of Saint-Etienne in the small French town where he comes from, which specializes in vulcanology. He decided to research metallogeny because of the possible collaboration with industry sponsors and his passion for travelling. He decided to complete his Masters degree in mineral raw materials with a major in metallogeny within the Nancy University (France). His MSc project, supervised by Anne-Sylvie André-Mayer (G2R, Nancy, France) and Laurie Reisberg (CRPG, Nancy, France), was investigating the gold deposit of Inata, Burkina Faso. With the aim to provide a well constrain age of the mineralization using the Re-Os isotopic datation on sulfides. His wish for an international experience and his interest in the gold systems led him to complete a PhD through the CET. The title of Denis’s PhD project is: “4D modelling of the geometry and genesis of the giant Obuasi gold deposit, Ghana”. This project is challenging because of the extreme dimension of this deposit and the complexity of the structural and hydrothermal events. The aim is to use a large range of tools such as structural interpretation, geophysics, 3D computer modelling, geochemistry, geochronology, petrology and fluids characterization combined with previous studies to well constrain the formation of this giant gold occurrence. At a larger scale this project is part of the WAXI project (West African Exploration Initiative) which is a consortium between industrial sponsors and world class researchers who are collaborating for a better understanding of the West African geology and gold mineralization process.

34 James Warren

An anomaly in the pack, I’m actually a local West Australian from Albany. I graduated high school in 2002 and began study at UWA in 2004. I was the first student to undertake the Mineral Geoscience degree and after a few teething problems it all worked out well in the end and I graduated with honours at the end of 2009. My honours project was supervised by Dr John Miller and was focussed on the Kambalda Dome area of the St Ives belt and was therefore sponsored by Gold Fields Ltd. The project looked at structure and alteration on the dome and their relationships with gold, a much under explored for commodity in a famous nickel area. Gold Fields subsequently offered me a job as a graduate at their St Ives operation so I packed up and moved to Kalgoorlie where I have been since. I spent my first year at St Ives in their exploration team and then moved to the Argo underground operation as a mine geologist. I have since moved from St Ives and started working for a Kalgoorlie based junior explorer by the name of Phoenix Gold as exploration geologist. In its fairly early stages and with some very exciting projects it has been a great 8 months. Phoenix is sponsoring me to do a PhD project with the CET on the Kunnanalling-Zulieka-Ora Banda areas under the primary supervision of Nico Thebaud, with input from Steve Micklethwaite, Iris Sonntag and John Miller. It will be a 4D study of the area to gain a better geological understanding of the region which will ultimately refine exploration and (hopefully) go some way to finding Phoenix that big one!

Ellen Davies

Hello! I’m Ellen, a new PhD student here at CET, working on the emplacement dynamics of mineralised ultramafic rocks in the Ivrea Zone in Italy. I will investigate the bigger picture of how and why the mineralisation appears where it does, in conjunction with others in the team who are studying the mineralogy in detail. Returning to being a student will be a big change, but I am looking forward to really getting my teeth into this project. But first I need to get my tongue around some more Italian if I’m going to survive the fieldwork! I am originally from near Manchester in England, and graduated from the University of Liverpool in 2007 with an MESci in Geology. During my degree I was lucky enough to score an Exploration Geology internship here in Western Australia, where I got a taste of how life could be. On my return to the UK I rejected the oil and gas route I had been headed down, packed up my bags and moved to Perth. Since then I’ve worked in Nickel and Gold mines around Kalgoorlie but spent most of my time on a greenfields exploration project, swagging out in the beautiful eastern Pilbara in the search for Manganese. When not geologising, I’m normally to be found out bush walking, sewing something pretty, drinking Matsos Mango Beer (or Emu, at a push), playing my Euphonium in a brass band or following the mixed fortunes of the West Coast Eagles.

John Owen

John was born in Perth where he has lived here most of his life. He graduated from UWA with a BSc (Geology and Geochemistry) in 2010. With a love hiking he has always been frustrated by Perth’s lack of mountains. So it was with great delighted then, he got an opportunity to carry out an Honours project in Greenland in 2011 under the supervision of Dr’s Marco Fiorentini, Nicolas Thebaud and Leon Bagas from CET, and Jochen Kolb and Bo MØller Stensgaard from the Geological Survey of Denmark and Greenland (GEUS). His Honours research was aimed at characterising nickel sulfide mineralisation discovered by GEUS between Graah Fjord and Bernstorff Isfjord in South-East Greenland. In 2012 he will return to Greenland to continue his PhD research which is building on his previous Honours research. John will be using the exposed lower crustal rocks in the Thrym complex of South-east Greenland to study the evolution and emplacement of Ni-Cu-PGE bearing magmatic systems in the lower crust and the nature and role of magmatic vapour phases in these systems. Read more information about CET Students at www.cet.edu.au www.cet.edu.au 35 CET newsletter issue 20 June 2012

New Staff Profiles

Steve Denyszyn

Like all good geologists, Steve is Canadian, completing his BSc, MSc, and PhD at the University of Toronto in 2008, the latter consisting of a paleomagnetic and geochronological study of intrusive mafic magmatism in the High Arctic of Canada and Greenland. From 2008- 2011, Steve was a postdoc at the University of California, Berkeley, and the Berkeley Geochronology Center, specializing in TIMS U-Pb geochronology of Precambrian mafic rocks, such as Neoarchean rocks in Botswana, the Bushveld Complex, and Neoproterozoic diabases in the southwest USA, using baddeleyite and zircon as geochronometers. He also dabbled in the Phanerozoic, carrying out high-precision studies of ash beds in Mid- to Late Permian sedimentary sequences in eastern Australia and southern China in order to resolve the timing of mass extinctions and assess their connection to major magmatic events such as the Emeishan large igneous province of southwest China, as well as of Cenozoic granitic intrusions on the west coast of North America to determine the timing and rate of plutonism. Steve moved to Perth in September 2011 with his wife and 2-year-old son, hired by Eric Tohver to carry out TIMS U-Pb geochronology on ash beds in the Permian sequences of the Karoo Basin, and on melt sheets associated with major impact structures. He will join the staff of the CET in late May. So far, he has spent most of his time in Australia developing capabilities for high-precision TIMS U-Pb geochronology at the John de Laeter Centre at Curtin University, and for watching NHL hockey online at home. Steve is interested in applying high-resolution U-Pb geochronology to a wide range of geological problems, from the nature of pluton emplacement, to establishing chronological frameworks for sedimentary sequences, to the timing of ore-forming magmatism. Steve looks forward to establishing collaborations with literally everyone at the CET.

Vaclav Metelka

Vaclav has come to the CET to work closely with the International Mining Development Centre (IM4DC) principally on two projects involving the application of GIS in geology in West and Central African countries. He is also involved in the WAXI (West African Exploration Initiative) project working on 3D modelling of greenstone belts of western Burkina Faso as well as the interpretation of geophysical and remote sensing data. Vaclav comes from the Czech Republic, specifically from a town called Ceske Budejovice. He has spend considerable time abroad passing two years in Germany and the USA before entering the Charles University in Prague, where he earned his MSc in Geochemistry. During his MSc studies, he became particularly involved with interpretation of remote sensing data in geology. He then went on to join the Czech Geological Survey, where he worked for two years on a mapping project in Mongolia: assessment of geological hazards in Costa Rica, and other geological projects in the Czech Republic. He then returned to study to gain his PhD jointly from the University of Paul Sabatier in Toulouse and the Charles University in Prague as a member of the WAXI project, studying the potential of geophysical and remote sensing data in the interpretation and mapping of geology and regolith of the West African Craton. After the completion of his PhD he decided it would be great to experience Australia, one of the continents that he has never worked in, so he took up the opportunity to join the CET team for a year. Read more information about CET Staff at www.cet.edu.au

36 Another Successful MTEC MGH Course for the CET

19-23 March 2012 Cindi Dunjey (Academic Co-ordinator) The CET and UWA have been involved in the MTEC Minerals Geoscience Honours Program since its conception in 2008 and its success has been steadily growing. The program involves the cooperation of 8 universities across Australia which offer courses to the geoscience honours cohort within these universities for that year. Courses offered cover a range of geoscience topics such as hydrology (University of Melbourne), mining geology and resource evaluation (Curtin University), Geophysics (Monash), exploration mapping (UTas), mineral exploration under cover (University of Adelaide), ore textures and breccias (JCU), regolith geoscience (ANU) and structural geology (UWA). This year is the fifth year of the program the CET has developed a highly sought after course with, “Applied Structural Geology in Mining and Exploration” which was offered 19 -23 March. With participant numbers increasing yearly, the CET has now reached a capacity of 56 students that arrived at our door from across 6 universities. Research Professor John Miller headed the workshop along with Research Assistant James Davis and Margaux Le Vaillant (PhD) who assisted with the mapping exercises and tuition. According to the feedback, the team worked to ensure that the week was beneficial to all students and each individual received the help they required. To break up an otherwise hectic week, the CET held a sundowner at the University Club for all the students to relax and mingle with our CET corporate members and staff. Over 25 corporate members attended, with many bringing along “goodie” bags to hand to students. The Corporate Members attending included people such as Mark Doyle (AngloGold Ashanti), Peta Libby (Digirock), Pip Sivright and Lynda Daley (Newmont Asia Pacific), Liane Anderson, Candice Tait and Michael Gill (Rio Tinto) and Rick Rogerson (Dept. Mining and Petroleum) along with many more from First Quantum Minerals, TECK Australia, BHP Billiton and SRK Consulting. In addition, we were fortunate to have James Seaford (MTEC Representative) and Caroline Walker-Grime (MGH Coordinator-Adelaide University) attend and witness the success of our sundowner. The selection of canapés and beverages were exceptional and the networking between students and industry highlighted the importance of these events for our undergraduates and industry partners. Feedback regarding the course was unanimously positive with agreement that the presenters, content and skills covered would all assist the students in the future. In addition, every student would recommend this course to their peers which ensure a long a prosperous future for the MTEC MGH program. The CET would sincerely like to thank our corporate members which attended the sundowner. It was a highlight for many of the students which took advantage and met with many of you. This event is one of our major networking events for our members and we hope to encourage more of our loyal members to attend in 2013.

www.cet.edu.au 37 CET newsletter issue 20 June 2012

CET would like to thank its Corporate Members for their continued support in 2012

MAJOR Producers

EMERGING Producers

St Barbara Ltd Teranga Gold Alacer Gold Corp Atlas Iron Birla Maroochydore Pty Ltd

38

ASX Release 24 December 2010

SECURITY TRADING POLICY

Integra Mining Limited (ASX: IGR) is pleased to provide a copy of its Security Trading Policy in accordance with Listing Rule 12.9 which comes into effect on 1 January 2011.

Yours sincerely

Peter Ironside Company Secretary

168 Stirling Highway Nedlands Western Australia 6009 ■ pO box 612 Nedlands WA 6909 T 61 (8) 9423 5920 ■ F 61 (8) 9423 5930 ■ E [email protected] ■ W www.integramining.com.au

AbN 54 093 278 436 JUNIOR Explorers

TALGA Anglo Australian

Midwinter Resources Enterprise Metals Ltd Gold Road Resources Ebagoola Resources Ltd Mr Mark G. Creasy Talisman Mining

IN-KIND Members ER Mapper Datamine Runge Ltd Equinox

www.cet.edu.au 39 CET newsletter issue 20 June 2012

CET Research Themes and Leaders

The Centre is aimed squarely at the Au Mineral MAGMATIC Fe Mineral Special Projects & mineral industry’s need to increase Systems Mineral Systems systems Other Commodities the discovery of new mineral deposits. Its six research themes John Miller Marco Fiorentini reflect the belief that more effective Steffen Hagemann Cam McCuaig targeting, coupled with independent action to reduce the risks of value Geophysics & destruction, will deliver outcomes that Image Analysis can significantly improve the risk : reward ratio. Mike Dentith / Eun-Jung Holden Each theme has a leader and is responsible for a portfolio of projects. Progressive Researchers within the CET are often Risk Value & Assessment engaged across several project portfolios. Allan Trench Theme leader contact details are available at www.cet.edu.au/about-us/a-z-staff-profiles

MSc Ore Deposit Geology Contact This course work Masters program is designed for Information geoscientists who want to gain up to date knowledge and skills in economic geology If you would like to find out more and mineral exploration. The about the Centre for Exploration course at UWA is part of the national Minerals Geoscience Masters Targeting, its Corporate program and is supported by the Minerals Council of Australia. Membership program, Applied The program is run jointly between the Centre for Exploration Research opportunities or Training Targeting (UWA), CODES (UTAS), EGRU (JCU) and Curtin possibilities, please contact: University of Technology (CUT). The Masters course can be completed in two ways: Centre for Exploration Targeting Option 1 - (8 course work units) Eight units of course work: at least two of which must be undertaken at UWA. The other units are The University of Western Australia done at UWA or at the other participating universities. M006 • 35 Stirling Highway Option 2 - (4 course work units + research project) Four units of course work and a research project (50% of overall assessment). CRAWLEY WA 6009 Two of the units must be completed at UWA. Courses offered by the CET: T +61 8 6488 2667 —— Applied Structural & Field Geology, July 2012 F +61 8 6488 1178 —— Ore Deposits Field Excursion, September 2012 E [email protected] —— Exploration Targeting, July 2013 W www.cet.edu.au —— Advanced Ore Deposits, November 2013 CRICOS Provider Code 00126G

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