Golden past - Victoria’s vast mineral resources continue to underpin economic growth

old was officially discovered in Victoria at Clunes, near Ballarat in 1851, transforming Victoria and Australia, from struggling penal colonies into a rap- idly developing industrial nation. Word that gold had been discovered in Victoria quickly attracted Gthousands of immigrants determined to discover a fortune and start a new life. Gold mining brought incredible wealth to Victoria between 1851 and 1915 by which time virtually all gold production in the state had stopped. In 65 years Australia had progressed into one of the wealthiest nations on earth. Victoria's economic development was significantly built on its world-class mineral endowment. That early mineral wealth, which set Victoria on the path to becoming the most glamorous and sophisticated of Australia’s regions has been repeated at intervals in the state’s history and is on the verge of revival, through the

re-development of the gold industry and a range of other Images reproduced courtesy of Sovereign Hill Museums Association energy and mineral commodities. was the discovery and utilisation of the state’s vast brown MINERALS UNDERPIN EXPANSION coal resources in the Latrobe Valley which underpinned rapid The discovery of gold and the subsequent gold rushes industrial growth. transformed the quiet colony of Victoria and the city of Vast energy reserves producing cheap electricity close to Melbourne into the financial centre of the country in the late Melbourne fuelled a large and diverse manufacturing 19th and early 20th centuries. industry and provided generations with jobs and prosperity And while gold gave the Victorian economy the foundation it that supported further waves of immigrants. needed to support a rapidly expanding agricultural base, it In the 1960’s the discovery and development of Australia’s

Minister’s foreword Minister commemorates Eureka anniversary 150 years on from the Eureka Stockade, Victoria is set to experience another gold rush. This is the result of the dynamic and growing gold industry responding, as our forefathers did, to global demand for gold in Victoria. The gold rush of the 1850's was a time of major economic growth and development in Victoria and helped to shape the character of our state and Australia as a nation. The discovery of gold influenced our social and political evolution with Melbourne becoming the world's wealthiest city and Statehood being granted in June 1851. Victoria's Mining Statute of 1865 is the foundation of all Australian mining laws. The discovery of gold also marked a time of social unrest and conflict. The working conditions and exploitation of the gold prospectors is something I am glad we have left behind in the 19th century. But the hard work and investment in the future of that era is something I am glad we have been able to

02 DISCOVERY Golden future

most important reserves of oil and gas in the rough waters of The political temperature was also rising with the realisation Left: Miners at the Bass Strait again placed Victoria at the head of Australia’s that hard work, not birthright or privilege, had become the famous Brittania economic development queue. And that resource is now most important factor in attaining wealth, threatening the Mine entrance, being boosted by the development of gas reserves off status quo. 1889. Victoria’s south west coast in the Otway Basin which are Nothing more threatening to the establishment has occurred helping cement the state as south east Australia’s energy hub. in Australia’s recent history than the Eureka uprising of 1854, Today, the emerging world-class heavy mineral sands an armed rebellion in protest at high mining fees and other province in northwest Victoria has the potential to continue grievances against the government of Victoria. The Eureka the pivotal role the minerals industry has played in the Stockade rebellion was crushed by British troops but some of economic development of the state. the leaders of the rebellion subsequently became influential But it is the reawakening of the gold industry in central members of Victoria’s Parliament. Victoria that is leading the way back to prosperity for a new The rebellion is still regarded as a pivotal moment in the generation. New gold mine developments at Bendigo, Ballarat development of Australia democracy. and Stawell and a rush of new exploration, much of it in Peter Lalor, a name well known in Australian history, was previously unmined areas, are establishing a new industry. one of the miners’ leaders at the Eureka Stockade uprising. He New exploration techniques are indicating resources that was born in the village of Raheen, in County Laois, Ireland, were unknown in early decades. and emigrated to Victoria with his brother Richard in 1852. In 1853 Peter Lalor left Melbourne for the Ovens gold SOCIAL AND POLITICAL CHANGE diggings, near Wangaratta and later moved to Ballarat where The 1848 rush in California had demonstrated the prosperity a 30 shilling a month mining licence fee incensed miners. gold could bring to ordinary working men through hard work, Later the practice of 'digger-hunting' by British troopers but some early Victorians were worried. Men were leaving searching out unlicensed miners sparked open rebellion on their homes and jobs en-masse to head for the goldfields. the diggings leading to the construction of a timber and Homelessness became common because of the rapid earthworks stockade where miners defied the troopers. increase in immigration and prices for commodities were But in the early hours of Saturday, December 3, 1854, police rising sharply in line with the increased demand. and troops stormed the stockade killing thirty diggers and

nurture and develop over the last 150 years. More Victoria gold was produced in the 65 years after the first discoveries at Clunes, Castlemaine and Warrandyte in 1851 than at anytime since. Carrying on from this legacy and in the same gold producing region of Central Victoria, we are again emerging as a major gold producer. New technology is allowing us to make productive the same gold fields the Eureka prospectors worked. Victorian gold production is set to reach its highest level for many decades. In the past year almost $500 million has been raised to support the construction of four significant new gold projects in Victoria. This includes the development of the Fosterville, Stawell and New Bendigo mines. Work on the feasibility of reopening mining at Ballarat is also well advanced. The Victorian gold industry has become truly modern and dynamic, but we must remember that it was built on the hard work of people like those at Eureka. Hon Theo Theophanous, Minister for Energy Industries and Resources

This special section in Discovery celebrates the 150 year history and looks forward to a bright future for the Victorian gold industry.

DECEMBER 2004 03 Images reproduced courtesy of Sovereign Hill Museums Association

Victorian Energy and Resources Minister, Theo Theophanous, said recently that a $A270 million commitment to mineral sands development in the Mallee region, “is the latest in a series of announcements that heralds the emergence of Victoria as a key player in the [Australian] taking over a hundred prisoners. Lalor was shot but escaped resources sector.” although a reward was offered for his capture. The resources sector in Victoria now employs, “around 4500 The reward was later revoked and 13 diggers who had been people directly and turns over $4.2 billion a year in economic charged with treason were acquitted in April. activity and produces more than 22 per cent of Australia's oil A Commission appointed to inquire into conditions on the and gas,” Mr Theophanous said. goldfields, resulted in the license fee being scrapped and In the past year almost $A500 million has been raised to Victoria’s Legislative Council was enlarged to include support the construction of four significant new gold projects goldfields' representatives. Peter Lalor was elected in Victoria including the development of the Fosterville and unopposed to represent the area in November 1855 beginning New Bendigo mines, an expansion of output at the Stawell a 32 year career in state politics capped by becoming mine and advanced feasibility work on the re-opening of Speaker of the Parliament in 1880. mining at Ballarat. It is often stated that the goldfields not only gave Victoria the In Victoria multiple gas discoveries in the Otway Basin economic start it desperately needed but that the diggings also region in the state's south west have been made and 3D inspired the first real breath of democracy in the state seismic is also driving a two year Bass Strait petroleum government system. The rise of the state economy and the exploration program by Esso/BHP Billiton, expected to cost creation of a true representative system of government were around $A200 million. the catalysts for a century of remarkable growth. One of the biggest investments to be made in Victoria in the latest resources boom is a $A270 million commitment by RESOURCES ARE DRIVING NEW GROWTH minerals sands miner Iluka Resources Ltd which is developing The re-emergence and investment growth of Victoria’s a mineral sands project in the Murray Basin in western resources sector is driven partly by the vast markets of China, Victoria. The Douglas project comprises a mineral separation now playing its second major role in helping Victoria realise plant near Hamilton and a mine to the north west of the town. its true economic potential. One hundred and fifty years ago The Murray Basin is predicted to hold heavy minerals worth Chinese workers flooded into the Victorian goldfields to help $A20 billion with a predicted resource life of more than Clockwise from establish the state’s economic prosperity. 25 years. above: Today China’s burgeoning need for minerals and energy is With around 4500 people directly employed in the Victorian The Ballarat again helping Victoria to boost its wealth from the mining and resources sector, almost all in rural and regional areas, the Town Hall petroleum industries by providing overseas markets. industry has become one of the state's most significant In the past two years more money has been invested or economic drivers. committed to mining and petroleum projects in Victoria than at Victoria’s Minister for State and Regional Development, Mr Miners’ leader, any time in the past 50 years. It’s more than a century since Brumby said that hundreds of new jobs will flow from Iluka’s Peter Lalor Victoria was last gripped by gold fever but current spending decision to proceed with the Douglas project. He said Iluka on new gold mines outstrips even those halcyon days. Resources would build the mine and also construct a mineral Official certificate Resource sector spending and new commitments in Victoria separation plant near Hamilton. of Ballarats’ in the past two years exceeded $A4 billion and the sector “Iluka's decision is yet another vote of confidence in Redan mine turns over more than $A4.2 billion a year in Victoria alone. And Victoria, showing that we have the right mix of policies for the the boom in Victorian resources sector spending is having a development of large, internationally competitive, export- The Band & substantial regional impact. oriented projects,” Mr Brumby said. Albion mine More than $A2 billion is currently being spent developing “It brings to $3.4 billion the amount of investment outside new Victorian gold mines, minerals sands mines and their Melbourne,” since 1999, Mr Brumby said. processing facilities and offshore gas fields, while millions These massive investments prove that gold, minerals and more is being spent on the biggest mineral and petroleum energy will clearly remain a major part of the state’s economic exploration effort in the state's history. lifeblood for decades to come.

04 DISCOVERY DECEMBER 2004

Victoria’s earth resources journal discovery Green light for Casino gas – p06 Restoring Lysterfield quarry site – p08

Protecting Box-Ironbark – p11

Jack Bates in deep water – p14

Anglo American back Latrobe Valley coal – p16

New Leviathan at Stawell – p 20

EurekaSpecial Edition 150 minister’s foreword VICTORIA’S RESOURCEBOOM discovery

Discovery is published quarterly by inerals and petroleum investment in This issue carries a special section celebrating the Floate Design Partners on behalf of Victoria is set to hit record levels. This achievements of the gold industry in Victoria the Minerals and Petroleum Division, issue of Discovery looks forward to how since the uprising at the Eureka stockade 150 Department of Primary Industries. M this will help build a sustainable future for the years ago.We are not just celebrating 150 years of Editorial and advertising enquiries industry and celebrates 150 years of history since heritage, but also looking forward to a bright to Gary Max, Floate Design Partners, the Eureka stockade. future for the gold industry in Victoria. PO Box 12150, A’Beckett Street Post Office, Melbourne Vic 8006. Minerals and petroleum investment in provincial Gold has been a key growth area in the earth (03) 9557 1894 T: Victoria has reached nearly $470 million in resources sector over the past decade and all the Mob: 0411 833 823 F: (03) 9557 4752 2003/04. This is almost half of all investment in signs show that the sector can expect to develop Email: [email protected] regional areas. significantly - we may be about to experience another Victorian gold rush. Distribution and Department of Primary We are working hard to build on this success.The Industries enquiries to Kate Tunney, Department for Primary Industries has recently The anniversary of Eureka is a good time to look Manager, Communications Projects, awarded three new petroleum acreage permits - back at the achievements of Victoria’s other earth Department of Primary Industries, together these will bring investment of $114 mil- resources sectors. Level 16, One Spring Street, 3000 lion over the next six years. As a result of explo- Melbourne Vic . The Gippsland Basin is one of the world’s premier T: (03) 9658 4076 F: (03) 9658 4006 ration under these and other permits, I expect a coal and petroleum basins. The brown coal Email: [email protected] 20 year high of 30 oil and gas wells to be drilled resource in Victoria is vast by world standards over 2004/05. Australia Post Print Publication and the quality is also exceptional. Since the 349472/00128 PP We are seeing a similar story in the minerals 1920s, with the establishment of the State ISSN Number 13282409 industry. Exploration in 2003/04 is up 16 per Electricity Commission, it has been the mainstay cent to $53.5 million. Nationally that’s 6.8% of of the Victorian economy providing low cost elec- exploration across Australia (up from 6.2%). tricity underpinning industrial growth.A key chal- Disclaimer: This publication may be lenge for the future of the coal industry is of assistance to you, but the State of Much of this new exploration is due to the addressing the challenge of reducing green Victoria and its officers do not Victorian Initiative for Minerals and Petroleum house gas emissions. guarantee that the publication is (VIMP). This Department of Primary Industries without flaw of any kind or is wholly appropriate for your particular purposes program provides world class data on the In the oil and gas sector the 1960’s saw the dis- and therefore disclaims all liability for geology of Victoria and shows that there is poten- covery of 4 billion barrels of oil and 10 trillion any error, loss or other consequence tial for a lot more oil, gas and mineral exploration. cubic feet of gas in the Gippsland Basin. This which may arise from you relying on includes Australia’s largest oil field, Kingfish-1, any information in this publication. It is clear from this aggressive exploration that with 1.2 billion barrels of recoverable oil. The oil companies exploring in Victoria are confident and gas industry has since become one of Minerals and Petroleum Division that their programs will lead to new and acknowledges contributions made by Victoria’s key industries. I look forward to seeing exciting discoveries. private enterprise. Acceptance of these this development continue in a sustainable way contributions, however, does not endorse or imply endorsement by the For the Victorian minerals and petroleum sector with the recent commitment to develop the Department of Primary Industries of to have a sustainable future, it is not enough to Casino gas field (pg 8). any product or service offered by the promote exploration and extraction investment. While we look back and celebrate the achieve- contributors. I want to recognise and encourage environmen- ments of the past 150 years it is encouraging to tal and social excellence in Victoria’s earth All photographs, maps, charts, tables look forward to a minerals and petroleum sector and written information are copyright resources sector. To help achieve this I will be with such a bright future:An industry that can look under the Copyright Act and may not be launching The Minister for Resources reproduced by any process whatsoever forward to at least another 150 years of success. without the written permission of the Sustainability Awards which will highlight best Department of Primary Industries. practice and innovation in achieving sustainable development.You will find more detail about the 2004 © Department of Primary Industries awards on the back cover. THEO THEOPHANOUS MP Minister for Energy Industries and Resources contents departments

SUPPLEMENT Our special supplement commemorates the 150th anniversary of the Eureka Stockade as well as looking at Victorian gold’s bright future MINISTER’S FOREWORD A record $470 million was invested in the state’s minerals and petroleum industry in 2003 / 04, equal to nearly half of all investment in regional Victoria 2 MONITOR New manage- ment team at AGD, Marathon explores for gold near Stawell, Beach in Otway Basin, new reef at Walhalla, natural gas piped features to Western District, three new power plans to secure our future 6 Green light for Casino gas Development of the Casino gas field swings into action

8 Restoring quarry site Restoring the bush view at OUR COVER Lysterfield Quarry The miners swearing allegiance 11 Protecting Box-Ironbark A government - industry initiative is saving our forests to the Southern Cross flag, Eureka Stockade. On the 150th 12 Developing new Bass Strait oil Anzon Energy and Beach Petroleum develop a new Bass Strait oil field anniversary of this event, 13 Ballarat operations draw nearer Mining development at historic Ballarat Victoria’s resources industry is goldfields is advancing looking to a golden future. 14 Jack Bates in Otway Basin deep-water The Jack Bates deep-water drilling rig was shipped from Norway to Australia

16 Anglo American backs Latrobe Valley A new era begins for Latrobe Valley coal

17 Minerva gas field begins commissioning Full gas production from Minerva is expected by year’s end

18 Nexus expands in Bass Strait New Nexus permit and seismic data opens more Bass Strait exploration

19 VIMP boosts resources industry Victoria’s VIMP program helps minerals explorers uncover new wealth

20 New Leviathan at Stawell MPI’s Stawell interests transformed into the new Leviathan Resources Ltd

22 Gold trooper returns Victoria’s first ‘gold cop’ in more than a cen- tury reflects the industry’s resurgence DECEMBER 2004 01 monitor New management team at AGD Mining AGD Mining Ltd, which operates the Costerfield gold and antimony project, has installed a new management team led by Adrian Molinia, who has been appointed Managing Director. Mr Molinia, formerly the company’s Chief Executive Officer, who has had wide experience in the mining industry and in the development of new mines, has assembled a new team to develop AGD’s Augusta gold and antimony deposit at Costerfield in central Victoria. The company’s new general manager of the Augusta project is John Magnussen, a mining and mechanical engineer, with 40 years experience in the mining industry. Mr Magnussen has managed various mining operations in WA, NSW and Queensland including Aberfoyle’s gold operations in WA and the Hillgrove gold and antimony mine in NSW. He has been responsible for the construction and upgrading of a number of treatment plants. The role of Manager, Geology is to be filled by Ray Hazeldene who has had over 25 years experience exploring and developing gold and base metal projects in eastern Australia and New Zealand. The new Manager of Mining will be Shane Marshall, a graduate of the University of Ballarat, who has been involved in a number of mine operations including Avoca in Victoria, Gunpowder in Queensland, the Hellyer mine in Tasmania and the Broken Hill operations of Perilya Resources. AGD is in the process of applying for a Planning Permit to develop a shallow open cut mine on the Augusta deposit to complement an earlier permit issued for underground development of the mine. Processing options are being evaluated and plant construction is expected to start early in 2005. More information Jurgen de Brodt Above: Adrian Molinia AGD company secretary (left) and John Tel: 03) 9663 5355 Magnussen at the Fax: (03) 9650 0082 New gas reticulation www.agdmining.com.au Costerfield site to Western District Email: [email protected] The surge in natural gas supplies in the western district of lion expansion based around the provision of natural gas. Victoria has prompted the Victorian Government to expand its GlaxoSmithKline’s director of the Chemicals Division, Geoff network of gas distribution to the town of Camperdown. Zippel, said, “Clearly this is a win for the people of Port Fairy The decision means the towns like Paynesville, Bairnsdale, and a strong indicator that the Bracks Government has lis- Creswick, Barwon Heads, Maiden Gully and Port Fairy will all tened and acted, not only in the interests of regional Victoria be reticulated for natural gas in the biggest roll out of new gas but to the benefit of the Australian Economy.” pipes since the 1970’s. The Government’s $70 million natural Victorian Treasurer, John Brumby said the decision by GSK gas extension program will provide lower energy costs for to contribute to the gas reticulation and its factory expansion residents and businesses in rural areas. was, “great news for Port Fairy.” GlaxoSmithKline has joined the rush to hook up to natural The Camperdown cheese factory and the Corangamite shire gas announcing that it will contribute $1 million towards the council will also contribute to the roll out of natural gas retic- construction of a natural gas pipeline to Port Fairy. ulation in the district. The connection to Port Fairy will mean that GSK’s alkaloid Mr Brumby said households which now converted from bot- business at Port Fairy will be expanded producing more jobs for tled LPG gas supplies could save up to $1200 a year by using local people. GSK has invested more than $30 million at its Port natural gas while medium sized businesses could save up to Fairy operations in recent years and now plans another $20 mil- $30,000 a year.

02 DISCOVERY mining and petroleum news briefs

Major new power generation proposals for Victoria Three separate power generation proposals are being studied energy demand peaks. in Victoria as future electricity shortages and an abundant It is being built by Snowy Hydro, the owner and operator of supply of natural gas combine to improve the economics of the Snowy Mountains hydro scheme, which started construc- new, base-load gas fired power generation facilities. tion in October and aims to have the station ready to meet Origin Energy has begun seeking development approval for peak electricity demand by December 2005. the construction of a possible 1000 megawatt, gas-fired Mr Theophanous said Snowy Hydro had successfully power station to be built near Mortlake in the western district applied for a generating licence to build the station with a to take advantage of booming natural gas supplies in the region. capacity of 320 megawatts. The Minister said, “Gas-fired Origin Energy managing director, Grant King said, “Over the stations produce cleaner energy – emitting about half the next several years Origin expects the National Electricity amount of greenhouse gases produced by brown-coal energy Market (NEM) to move from a position of significant over-sup- generation.” ply to a position where investment in additional base load In the Latrobe Valley, home of Victoria’s major brown coal electricity generation plants is required.” based electricity generation industry Hong Kong based China Mr King said that Origin’s recent gas discoveries in the Light and Power plans to spend $1 million on a feasibility study Otway Basin gave the company the opportunity to develop into a new 500-megawatt, gas-fired power station. low cost natural gas-fired power stations that minimise The Premier, Steve Bracks, said CLP, which owns the environmental impacts, diversify the generation fuel mix in the Yallourn brown coal fired power station was looking at adding NEM and enhance system reliability and security. to its base load capacity with a gas fired expansion. The approval processes required for the power station are The Yallourn power station is one of the lowest cost elec- expected to take 12 to 18 months, after which time final tricity generators in Australia and currently produces 22 per decisions will be made on the project or projects proceeding. cent of Victoria's energy. It is peak demand requirements that are driving the “If the results of that feasibility study are favourable, CLP development of a new, $150 million gas-fired power station could begin construction of a new, gas-fired power station as planned for Laverton North which will help secure Victoria's soon as 2006,” Mr Bracks said. energy supply and keep Victorians cool over hot “This investment in a new, state-of-the-art power could be a summer months. tremendous boost to Victoria's power capacity. The Minister for Energy Industries and Resources, Theo “The construction of a new, 500 megawatt power station Theophanous, said that the power station could eventually would also generate considerable economic activity across the generate enough power to supply electricity to 70,000 homes State – and create jobs in the Latrobe Valley,” the Premier said. in summer when Victorians switch on air conditioners and BEACH GROWS OFFSHORE Beach Petroleum Ltd has expanded its exposure to Victoria’s gas production from fields in the Port Campbell region - and for More information offshore Otway Basin by farming into a permit off the Victorian other companies, commercial discoveries offshore at Casino, south west coast, south of Portland. Thylacine and Geographe. Reg Nelson Beach has acquired 17.5 per cent of a permit, VIC/P46, “Success off Portland could be readily commercialised Managing director, operated by Essential Petroleum Resources Ltd, which is through a short connector to the SEAGas pipeline or industrial Beach Petroleum prospective for both oil and gas. It covers about 1800 square users at Portland,” he said. Limited kilometres in water depths ranging from 50-200 metres. The He added that, “Previous 2D seismic in VIC/P46 has identified Tel. 08 8338 2833 acquisition is Beach Petroleum’s second move in as many a number of large gas prospects located relatively close to months into Victorian waters. shore in modest water depths. 3D seismic, which has played a The previous month, Beach Petroleum expanded its reserves key role in all recent discoveries in the Otway Basin, is likely base by 5.8 million barrels of oil equivalent through a farm-in to to be acquired over the most prospective features in the second Anzon Australia Pty Ltd’s 100% owned Basker, Manta and quarter of 2005. This will be followed by the drilling of at least Gummy oil and gas fields in the Gippsland Basin. Beach one exploration well early in 2006,” Mr Nelson said. acquired a 25 per cent stake in the fields that could be developed quickly to boost the state’s declining oil output Beach managing director, Reg Nelson, said, “Our exploration The new ownership structure of the VIC/P46 Joint Venture program in VIC/P46 will be primarily directed towards the will be: discovery of gas in the Late Cretaceous Waare Formation, a Essential Petroleum Resources Ltd 50.0% (Operator) play proven to be successful elsewhere in the Otway Basin.” Mitwell Energy Resources Pty Ltd 32.5% Mr Nelson said, “This success has included our own onshore Beach Petroleum Limited 17.5%

DECEMBER 2004 03 mining and petroleum news briefs

More information Marathon search for gold New reef emerges at Walhalla Dr John Santich Finding new gold and copper deposits in Victoria is a key ele- New exploration work at Walhalla has provided early signs Chief Executive ment of several new company floats in recent months, boost- that the resurgence of Victoria’s gold industry could spread as Officer ing the state’s resources sector and building regional wealth. far east as the Walhalla gold field where drilling has revealed Marathon Resources Tel: (08) 8236 7605 Marathon Resources Ltd, one of the new companies to join a new mineralised reef. Mob: 0412 065 294 the Australian Stock Exchange recently, is earning an interest Drilling and channel sampling conducted in the September in two gold and copper mineral tenements south of Stawell on quarter in the Long Tunnel Extended (LTE) tourist mine has the western perimeter of Victoria’s gold belt. identified a new gold bearing laminated quartz reef which has The two tenements, Kalymna, in EL 4526 and Glenlyle, in EL been named the Lomond Reef. 4621, both lie within the Moyston Fault Zone. The first round of underground drilling conducted by Adelaide-based Marathon plans to use part of the proceeds Goldstar Resources Ltd in the LTE mine aimed at an area of from its $5 million Initial Public Offering to explore the the “Cohen’s North Target” between 150m and 220m below Victorian acreage. The company has produced an updated surface. The drilling chamber, from where the holes were exploration concept and model for the area and says its initial drilled is approximately 150m below surface. work will comprise a new geophysical survey ahead of explo- The initial holes intersected mineralised widths of up to ration drilling. 17.05m (15m true width) comprising a mixture of laminated Marathon also owns or is earning interests in four tene- and massive quartz reef together with stockwork and a min- ments in the Gawler Craton region of South Australia, seeking eralised dyke. This sequence of materials is consistent with gold, copper, and iron-oxide copper-gold. the “Cohen’s” main reef style of mineralisation. Marathon’s chairman, Peter Williams, believes there Goldstar Resources reported in its September quarter report remains strong potential for the discovery of new ore bodies lodged with the Australian Stock Exchange that the new zone hidden beneath the ground that are now easier to locate using of mineralisation is further to both the north and east as well modern remote sensing techniques. as being above anything previously identified in the Cohen’s “The potential to identify further major ore bodies remains system. very high,” Mr Williams said. Channel sampling in the old workings of the Long Tunnel “While Australia’s easily accessible surface mineral Extended mine has also confirmed the presence of this min- deposits have been intensively explored, Marathon believes eralisation. there remains a wealth of mineral deposits untapped below “This is further reinforced by hole GW19, drilled north/north- the ground and now able to be identified through advanced east from the Walhalla Chamber, which intersected what is geophysical techniques.” most likely mineralisation in the hanging wall to this reef Mr Williams said, “Marathon plans to harness these structure,” the company reported. advances in technology to build on existing geophysical work In addition to the drilling, channel sampling was undertaken with our in-house exploration expertise, particularly in tecto- on both the north and south drives of the old LTE workings genetic analysis, to define our exploration and conceptual approximately 100m to the southeast of the LTE drill chamber. modelling. The work was undertaken as part of geological “correlation” “We believe these advances hold the key to unlocking the investigations and to test previously unsampled reef style hidden mineral wealth in both our western Victorian and material. South Australian holdings,” he said. He added that, “Tecto-genetic analysis is an emerging geo- SAMPLING RESULTS ARE VERY PROMISING logical science [used] in identifying new commercial deposits As in the drilling, the sampling identified both laminated quartz compared to the more conventional focus on specific identifi- reef and stockwork styles of mineralisation producing assay able structures of host rock within an exploration area,” Mr samples grading up to 7.32 grams of gold per tonne. Williams said. “Interpretation of the drill and channel sampling results has “Our application of tectogenesis has already evolved excit- led to the conclusion that the laminated reef identified at both ing new interpretations of geological and geophysical data locations is the same reef structure as that drilled from the and drill targets and the generation of further new prospects chamber,” the company said. and further exploration targets is in progress,” Mr Williams Based on the exploration results Goldstar believes the said. Lomond Reef, in the vicinity of the old mine workings, has a Marathon’s board includes Dr John Santich who has been strike length of 350 metres and a down dip projection of 80 appointed chief executive officer and geological expert. metres. Dr Santich was a co-founder of Burmine Ltd and Minotaur “The dimensions are only constrained by the restrictions of Ltd and is an engineer and resource lawyer with more than the current underground drilling location. As such the final three decades of experience in mining and geoscience, dimensions of the structure remain open, particularly at depth including many years as a public company director. and to the north,” the company said. Another board member, Dr Wieslaw Bogacz has developed “Given the success of these early holes and channel sam- a method of tecto-genetic analysis of ore systems which he pling, the balance of the LTE underground drilling program has believes can assist in locating extensions of existing ore bod- been modified to maximise the potential knowledge that can ies and help develop grass roots exploration concepts. be gained from this single drill location.”

04 DISCOVERY mining and petroleum news briefs

More information Now the company Andrew King plans to drill from the Managing Director Goldstar surface over the Resources NL summer period to test Tel: (08) 9321 1577 both strike and down www.goldstarnl.com dip extensions of the .au Lomond Reef. “The style of miner- alisation and the grades identified so far in this new Lomond Reef are exciting as they are in keeping with the vari- able nature of the his- torical main zones of mineralisation,” Goldstar reported. “These historical reefs previously de- Left: The Walhalla livered 1.5 million township ounces of gold pro- duction from 1.47 mil- lion tonnes of rock at The style of mineralisation and the grades identified so far a grade exceeding 32g/t gold.” in this new Lomond Reef are exciting We are moving to GDA94 The Department of Primary Industries is converting its spatial data from the Australian Geodetic Datum 1966 (AGD66) to the new Geocentric Datum of Australia 1994 (GDA94). Other State and Federal agencies either have or are also converting their data, bringing Australia into line with international standards. Why change to GDA94? It provides a single international standard for data collection, storage and analysis. It will create cohesion between states and countries, allowing the efficient exchange of data and integration products. It is compatible with satelllite-based navigation. It provides greater positional accuracy. The conversion to GDA94 will take place over the next 12 months. We are seeking your feedback If you have any questions or comments about GDA94 and how the conversion is likely to affect your business, please contact us by writing to: Alan Willocks Minerals and Petroleum Division Department of Primary Industries 1 Spring Street Melbourne Victoria 3001 www.icsm.gov.au/icsm/gda/index.html Email: [email protected] For more information For more general information about GDA94, visit the Intergovernmental Committee on Surveying and mapping’s GDA pages at www.icsm.gov.au/icsm/gda/index.html Green light for Casino gas Developing the Casino gas field swings into action

ore than $200 million will be spent off the coast The deal could be worth more than $1.7 billion to the joint ven- of South West Victoria to develop the Casino ture, subject to future exploration success. gas field after final investment decision for the The new gas sales agreement is an expansion on the initial project was secured in October. Santos Ltd, gas sales contract announced by the joint venture partici- Australia Worldwide Exploration Ltd and Mitsui pants in September 2003 for TXU to take 293 PJ of gas. That M& Co announced the formal go-ahead for the Casino project in agreement, which included the option for TXU to purchase or conjunction with the completion of a major gas sales agree- process further gas, was unique by commercialising the ment with Singapore Power's owned TXU Australia for the Casino resource before appraisal drilling had confirmed the entire reserves of the field. quantity of gas available. Gas production is expected to start in the first quarter The gas sales agreement also contains an option for the of 2006. joint venture participants to process an additional 105 PJ of Under the new gas sales agreement, Santos, AWE and gas above the 420 PJ contracted volume over a further three Mitsui can supply TXU with up to 420 petajoules (PJ) of gas years at TXU’s Iona plant in Victoria if exploration proves up over 12 years for the Victorian or South Australian markets. additional gas reserves.

06 DISCOVERY DEVELOPING VICTORIA’S GAS RESOURCE Left: An offshore The Casino gas field is the first commercial development with- rig in the Otway in VIC/P44 but is the fourth major new gas development proj- Basin ect to be developed in Victoria in the past year. Woodside Petroleum recently committed $1.1 billion to develop the Thylacine and Geographe gas fields off the Western Victorian coast. BHP Billiton has just developed the Minerva gas field, off the coast from Port Campbell at a cost of $500 million, and Origin Energy and AWE recently complet- ed the development of the Yolla gas field in southern Bass Strait. The Casino field is located about 30 kilometres offshore from Port Campbell in 70 metres of water. Raw gas from Casino will be piped to the coast through a sub-sea pipeline that will come ashore under the coastal dunes at Two Mile Bay and join an onshore pipeline to TXU’s Iona processing and underground gas storage facilities. Gas will then be supplied to industrial, commercial and domestic customers in Victoria and South Australia where it will be used for electricity generation. Planned annual production from the Casino gas project is anticipated to plateau at 35 PJ a year. Onshore construction activities are due to start in the first quarter of 2005 and conditional approval for six major con- struction contracts worth in excess of $150 million has already been granted. The Casino project will give south-eastern Australia gas customers more confidence

TXU's energy business chief executive officer, Len Gill, said the gas sales deal had shortened the timeframe between dis- covery and commercial gas sales. “This agreement not only allows for the use of existing facil- ities to process the gas, but also provides scope for addition- al gas to be processed at our Iona plant. Gas from the Casino field enhances TXU's diversified gas supply portfolio for both Victoria and South Australia,” Mr Gill said. “Supply from this field is a perfect complement to our invest- ment in the SEAGas pipeline that runs between Port Campbell and South Australia, and to the Torrens Island Power Station in Adelaide, our gas storage facility and our gas retail activi- ties. It will add flexibility to our supply,” he said.

BOOSTING OUR ECONOMY Victoria’s Energy Industries and Resources Minister, Theo Theophanous, said the approval of the Casino project would, A major exploration drilling program is planned in the off- “provide a massive investment and jobs boost to regional shore Otway basin permit, VIC/P44, to seek more gas Victoria.” reserves. The first of the wildcat exploration wells, Martha 1, Mr Theophanous said, “This project has the potential to add is planned for drilling before Christmas, 2004. hundreds of millions of dollars to the Victorian economy. Santos managing director, John Ellice-Flint said, “The “With gas demand expected to grow by around 30 per cent Casino discovery and the innovative long-term TXU sales up to 2015 in south-east Australia, the Casino project will pro- agreement are rewarding developments for the producers vide an important new source of supply necessary to meet ongoing commitment to build on our expanding energy assets growing demand. in south-eastern Australia.” “The Casino project will give south-eastern Australia gas AWE Ltd managing director, Bruce Phillips, said, “We are customers more confidence that alternate, competitively delighted to see further progress on the Casino gas project, priced gas supplies will be available,” he said. with the completion of AWE’s project financing, the extension Participants in VIC P/44 containing the Casino gas field are: of the gas sales agreement with TXU and the commitment by Santos Ltd - 50 per cent, AWE Ltd - 25 per cent and Mitsui 25 the joint venture to develop the field. per cent.

DECEMBER 2004 07 Above: Area 2 rehabilitation showing contouring in preparation for revegeta- tion Restoring quarry site

Restoring the bush view at Lysterfield quarry

$4 million rehabilitation program has all but eliminated on rehabilitating the quarry’s highly exposed upper quarry the telltale signs of more than 80 years of virtually faces, thereby significantly reducing the visual impact of past Acontinuous operations at Lysterfield quarry. For quarrying activities on the surrounding area. decades the remnant scars of hard rock quarrying were The Victorian Minister for Energy, Industry and Resources, imposed on views of the Dandenong Ranges above Lysterfield Theo Theophanous, visited the site on 24 June 2004 and in Melbourne’s Eastern suburbs. praised the quarry owner, Boral Resources Pty Limited, for the The project, the largest of its type in Victoria, concentrated rehabilitation works.

08 DISCOVERY Quarrying began at the Lysterfield site in 1923, extracting a provided another water cart to suppress dust. Above:View of hard and durable rock material used mostly for concrete and “On any given day there were an additional 10 full time Boral’s Lysterfield asphalt aggregates, as well as specified road base and some employees and contractors employed to perform the rehabili- quarry, Area 1 to unspecified bedding materials. tation works.” right, Area 2 on The Lysterfield quarry is unique in its operation as it is being left hand side governed by site-specific legislation, the Extractive Industries HOW THE $4 MILLION WAS SPENT (Lysterfield) Act 1986. This Act requires the quarry to be Rehabilitation was performed in two separate areas. developed and rehabilitated to a predetermined design and Rehabilitation of Area 1 included the lowering of a ridgeline, requires Boral to pay a rehabilitation levy to the Government effectively removing the upper bench from view. The area has annually to ensure that funds are available to rehabilitate the now been graded to a gentle slope and grassed. site. Boral is required to obtain ministerial consent to gain Area 2 is located in previous workings. Boral obtained access to the fund before any rehabilitation works begin. ministerial approval to modify the original design in this area The latest Lysterfield rehabilitation project was developed to enable improved long-term environmental outcomes to by Boral in conjunction with the Department of Natural be achieved. Resources and Environment and through consultation with Aerial photography was used to assist in the design of the Parks Victoria, Knox City Council, and the Environment new landforms. Protection Authority. The Department of Natural Resources “We also took numerous photographs from strategic ground and Environment (now DPI), approved the $4 million project in level locations around the site to ensure that the visual 2002 and provided access to the rehabilitation fund to finance aspects would be improved”, Mr Hillyer said. the works. Rehabilitation works began in early 2003. “Significant improvements were achieved in the design of Mr Hillyer, Boral Operations Manager, told Discovery that the final landform and drainage in Area 2. This design was “Current production at the Lysterfield site is over 500,000 supported by the Department of Primary Industries”, tonnes of rock products a year. The entire rehabilitation Mr Hillyer said. project was conducted without impinging on the daily “We were focused on providing good visual outcomes for the operations of the quarry”. surrounding community. We actually went out into the streets “We constructed a separate haul road for the project and and stood where people could look towards the quarry and

DECEMBER 2004 09 We were focused on providing good visual outcomes for the surrounding community

Above: Area 2 see what they saw. This was a positive,” Mr Hillyer said. A key objective of the entire rehabilitation project was to rehabilitation “Rather than look at it from a quarry perspective, we looked re-create more natural-looking slopes. This will emerge over showing initial at it from a neighbourhood perspective and put ourselves in the next few years as the planting of several dozen species of grass cover their shoes and asked, well if I lived here, how would I feel the local indigenous trees and shrubs takes hold and about that,” Mr Hillyer said gradually recreates a natural looking environment. Initially they planted Triticali grass to prevent erosion and AREA 1 SEED COLLECTION AND STRIPPING minimise dust. Some clearing of native vegetation was required to enable “Triticali will die-off over the next 12 months and be replaced Area 1 to be regraded to the approved landform. Seeds were by indigenous trees and shrubs” Mr Hillyer said. collected from this area prior to removal of the vegetation. In all, about 12,000 trees and shrubs will be planted in Areas Environmental consultant, Ian Taylor, used this seed to propa- 1 and 2. So far about 8000 have already been planted with the gate plants off-site in preparation for the revegetation- stage. remaining 4000 to be planted in the next planting season. Mr Hillyer said, “All the vegetation that was removed was mulched, stockpiled, and stored on-site. Topsoil was also FUTURE REHABILITATION removed and stockpiled on-site in preparation for the “The long term land use for the site is currently under review”, revegetation stage. The overburden removed from Area 1 was Mr Hillyer said. placed in Area 2 to fill the old quarry hole . “The Extractive Industries (Lysterfield Act) 1986 requires “The upper benches were so highly exposed in Area 2 that twin lakes to be formed. We’ve had some feedback from the any reclamation work would have a significant impact in community and from Parks Victoria, that they no longer want improving the visual amenity,” twin lakes. Boral’s production manager, Ross Outen and the project “So we’re now consulting with the government, the commu- engineer, Dion Hurn, managed the major earthworks. nity and Knox City Council about the final land use for the site. More than 800,000 cubic metres of overburden and soft rock “The rehabilitation project had been a great success so far. were relocated in the space of just 13 months. The stability of “The key thing was the amount of planning and preparatory the newly placed material was also a major consideration in work completed with government departments and Knox City reconstructing the profile of Area 2. “We commissioned Council,” Mr Hillyer said. geotechnical consultants to assess the stability of the slope to “The rehabilitation was achieved with no lost time injuries or endure it was safe and stable”, Mr Hillyer said. medical treatment”.

10 DISCOVERY Protecting Box-Ironbark

with approved underground mining such as airshafts and A government initiative developed in vents. New mining principles that ensured high standards of oper- consultation with the mining industry ation in line with community expectations and the direction of is saving our forests industry were also put in place to safeguard precious forest areas. Value added industries, such as bee keeping, based on sus- ictoria’s precious remnant Box-Ironbark forests have tainable use of forest resources have also been actively been protected and the potential for further develop- encouraged under the forest protection principles. Vment of Victoria’s mineral resources preserved through At the same time, to ensure the long-term sustainability of new measures adopted by the Victorian Government. the forests timber resources in the Box-Ironbark region, Old style mining required extensive underground support sleeper cutting has been phased out. Prospecting is general- using heavy timber props cut from surrounding forests. But ly permitted across public land including in the Box-Ironbark even greater forest devastation was caused by the need for State parks. firewood to fuel the steam power stamp batteries which crushed and processed the quartz ore mined from the central NEW PARKS DEVELOPED Victorian goldfields. In establishing the forest area protection principles some new In 2002 Victoria’s Box Ironbark forests, of which only 17 per park types were developed. A National Heritage Park at cent have survived European settlement, were protected from Castlemaine, a new public land category, was the first of its major impacts caused by tourism, logging, mining and agri- kind in Australia. culture by series of management and protection measures put The Castlemaine Diggings National Heritage Park protects in place by the Victorian Government. outstanding cultural These involved creating new protected park areas, linking landscapes while a lin- various parks to create forest corridors and creating linear ear State Park along the parks along creeks and other pathways. Broken and Boosey The mining industry played a crucial role in developing the Creeks was created to new Box Ironbark protection measures. protect northern plains vegetation, of which AN INTEGRATED SYSTEM IS PRACTICAL FOR MINERS less than 2 per cent After a lengthy study of the remaining Box Ironbark forest remains. areas, the Government developed an integrated control sys- An ecological man- tem across public and private land, ensuring that significant agement strategy cov- values contained in both the parks and reserves, state forests ering all parks and and remnants of forest on private land are protected. reserves has been While new exploration and mining is not permitted in nation- developed to achieve a al parks, State parks and reference areas, existing mining and park system that more exploration in new parks are allowed to continue. closely resembles the Licence applications and licence renewals pre-dating the Box-Ironbark forests Government’s announcement of November 2001 to protect the which existed before European settlement. Above: A stand of parks, were treated on their merits, but licence applications There has also been attention to greater pest plant and ani- Box-Ironbark trees in that post-date the Government’s announcement will have mal control to address one of the key threats to the environ- the new National areas covering new parks excised. mental values of the Box-Ironbark forests and woodlands. Heritage Park An innovative 100 metre depth limit for parks situated on Under the protection measures, the area of Box-Ironbark for- highly prospective areas was also enshrined in legislation. est managed primarily for biodiversity purposes was more This provision was included to ensure that important gold- than doubled. fields around Bendigo, Castlemaine and Ballarat can continue to be accessed underground without compromising the pro- In establishing the forest area tection of environmental values of those areas. The Government assured the mining industry that it would protection principles some new park adopt a practical approach to underground mining when it required the development of minor infrastructure associated types were developed More information UNDER THE MEASURES VICTORIA GAINED: n Five new or expanded national parks Doug Sceney n Five new or expanded State parks (including a new linear park along the Broken-Boosey Creeks) Manager n One new National Heritage Park (a new category of park) Sustainable n Three new or expanded regional parks and the retention of four existing regional parks Development Minerals and n An expanded network of conservation reserves including: - 67 new nature conservation reserves Petroleum Victoria - 15 new historic and cultural features reserves Tel: (03) 9658 4433 - 129 new natural features reserves

DECEMBER 2004 11 A separate gas and condensate reservoir encountered in Manta-1 in the Golden Beach group, flowed gas on test at 18.6 million cubic feet per day and 1000 barrels a day of con- densate. Gummy 1 found 28 metres of gas bearing sands in the Golden Beach Sub-group. The acquisition of an interest in the Basker, Manta and Gummy fields will more than double Beach Petroleum’s reserves base to approximately 10.5 million barrels of oil equivalent. In conjunction with the farm-in, Beach Petroleum will also acquire an initial 9 per cent equity stake in Anzon, which is expected to list on the Australian Stock Exchange by Christmas.

GIPPSLAND BASIN IS A KEY RESERVE Beach Petroleum’s Managing Director, Mr Reg Nelson, said, “The Basker, Manta, Gummy assets, ….. now position Beach as a potential producer – and explorer - in the key offshore Gippsland Basin. Developing “The Gippsland Basin, although a proven petroleum pro- duction province producing around 64 per cent of Australia’s crude commercial reserves to date, is, however, very under- new Bass explored by world standards.” Under the farm-in agreement, Beach has acquired a 25 per cent interest in the BMG fields and also retained an option to acquire a further 12.5 per cent interest. Beach has also Strait oil agreed to fund one third of the cost of commercialising the proven and probable oil reserves for the fields – but has set expenditure limits on its contribution. Anzon Energy and Beach Petroleum are If development of the contingent gas/condensate resource developing a new Bass Strait oil field proceeds, Beach will fund 30 per cent of the capital develop- ment costs of the planned third stage commercialisation of the fields, after oil production commences. each Petroleum announced that up to $200 million will In addition to acquiring a direct stake in the oil and gas be spent developing three offshore Bass Strait oil and fields Beach has also agreed to subscribe to an IPO which Bgas fields which could be producing up to 20,000 barrels could see it holding up to 11% of the shares in Anzon for a a day of oil by the end of next year. cost totalling a maximum of $10 million. The two companies Anzon Australia Ltd and Beach Petroleum Ltd have joined are now planning to have the fields in commercial production forces to develop the Basker, Manta and Gummy fields, which within 18 months. lie close to each other in the eastern part of Bass Strait. Mr Nelson said the Beach/Anzon joint venture would now Beach estimates that the Basker and Manta fields contain appraise and develop the oil reserves at BMG with the aim of 23.3 million barrels of oil. In addition, the Manta and Gummy establishing production within 12 months. An appraisal well fields contain a gas and condensate resource of 94 billion will be drilled on the Basker field in May next year as a part cubic feet of gas and 3.5 million barrels of condensate giving of the evaluation of the fields. a combined resource estimate totalling 42.5 million barrels of “If full development of the fields is warranted, production is oil equivalent (BOE). expected to reach a peak in excess of 20,000 barrels of oil per The Basker, Manta and Gummy (BMG) fields, which lie day, based on historical performance of other fields in the between 50 and 75 kilometres offshore, under water of region,” Mr Nelson said. between 100 and 200 metres, were originally discovered by To speed up the development the Beach/Anzon joint Shell during its exploration activities in the Gippsland Basin venture is considering the use of a modern floating between 1983 and 1990. production system on the fields. The joint venture is hoping to Shell sold the fields before they were developed, with lease a dynamically positioned mini-Floating Production and Woodside Petroleum eventually owning 100 per cent. Anzon Storage Offtake (FPSO) vessel and shuttle tankers to carry Energy acquired 100 per cent of the fields from Woodside ear- the crude to local Australian refineries. lier this year and farmed out a 25 per cent stake to Beach Anzon is headed by executive chairman, Steven Koroknay, Petroleum ahead of a planned development of all three fields. an experienced oil and gas industry executive, with substan- At the time of its discovery the Basker 1 well produced tial experience in developing Bass Strait oil and gas reserves. record oil flows for the province. The oil reserves are con- “We are planning to drill Basker-2 in the second quarter of tained in the lower Latrobe Group while the deeper Golden 2005,” Mr Koroknay said. “Subject to successful testing, we Beach Sub-group hosts the gas resource. Two zones were expect to move to full production from Basker in the first half production tested in Basker 1, flowing between 3270 and 4967 of 2006. barrels of oil a day (bopd). “The Manta field is to be developed concurrently with the Manta 1, drilled northeast from Basker 1, encountered 21 Basker field,” he said, and Anzon will be the field operator. individual oil and gas sands with interbedded water sands in Mr Koroknay is also excited about the potential for the lower LaTrobe Group and returned between 5,157 and additional oil and gas reserves to be located in close 6369 bopd over two intervals tested. proximity to the three known fields.

12 DISCOVERY Ballarat Goldfields operation draws nearer Initial development to production is expected to be 18 Exploration and new development months. of the historic Ballarat goldfields is BALLARAT EAST advancing The Ballarat East project, described in the pre-feasibility study, will develop the underground mine from the existing decline, which has been developed to a vertical depth of 140 he smart money is flowing back to Ballarat to help metres. The mine will access an area roughly 3.5km long by restart mining at the historic goldfield, with a mine pro- 400m wide to a depth of 830m. Tducing up to 200,000 ounces a year expected to be The majority of the new workings will be below the histori- developed within 18 months. cal underground quartz mines. Ballarat Goldfields Ltd which holds all the Licences covering The decline, along with a second (twin) ventilation decline, the Ballarat goldfield and recently raised $27.5 million, is once will be developed along the strike of the field, with internal again going underground. declines accessing the production areas. Few fields in the world produced gold as richly and quickly The second decline will be used initially as a base for as Ballarat. But the new project is not based on romantic underground diamond drilling and will then be used to trans- notions of the past. Based on well-documented geological fer air for ventilation of the mine to a shaft near the southern modelling, Ballarat Goldfields is now demonstrating just how end of the mine. rich this field may still be. The mining method will be mechanised cut and fill, with A pre-feasibility study on the development of a potential stope widths typically ranging from 3 to 8 metres. This mining resource of 6 million ounces in Ballarat’s Eastern field has method is suitable for the geometry of the ore body and being been completed. The study, based on the newly completed selective, will minimise dilution of the ore grade. geological model, demonstrated that for capital of $55 million The company’s modelling estimates the minimum mine head the company could ramp the project to produce 200,000 grade to achieve this would have been 10.4 gram per tonne, ounces of gold a year. at 90 per cent recovery. In the past year Ballarat Goldfields completed several capi- Gold from the underground ore will principally be produced tal raisings, including the most recent $27.5 million with the using gravity separation methods. More than 95 per cent of bulk of these funds, in excess of $25 million, earmarked for the the gold will be captured using modern ‘In Line Pressure Jigs’ development of an extension to the existing decline mine and ‘In-Line Spinners’. The remaining five per cent of the gold access tunnel and the associated ventilation infrastructure. would be recovered using cyanide leaching technology. After modest beginnings the processing plant has been WHILST STILL DRILLING, TO DATE THE COMPANY HAS: designed to accommodate a staged expansion from the initial n Completed a pre-feasibility study. 500,000 tonnes a year capacity to 800,000 tonnes a year in the n Drilled from the surface to confirm gold targets on the fourth year of operations. Sulieman and First Chance lines, to define and test struc- ture. EXPLORATION n Drilled the Sulieman and First Chance structures from Ballarat Goldfields has also been busy in recent months underground. exploring the remainder of the Ballarat East goldfields. n Completed geotechnical drilling of the proposed decline Ballarat Goldfields managing director, Richard Laufmann and vent shaft route. told Discovery that, “the company is very happy with the suc- n Completed a detailed 3D geological model of the nearby cess achieved to date,” providing a higher level of confi- Berringa gold exploration Licences. dence in the region’s exploration potential and laying the The pre-feasibility study into a new mine development only foundation for the pre-feasibility study. considered an inferred resource of 700,000 ounces and the He said, “The BGF geological model is the foundation for the exploration potential above a depth of 830 metres on the future success and profitability of the company. Recent Ballarat East field. updates to the model have enabled the company to focus its The study worked on the concept of a pair of twin access drilling and identify the positions of a substantial number of declines providing mine access, ore haulage and ventilation. ore shoots at Ballarat East.” Based on the company’s geological model, the new Ballarat Mr Laufmann said, “Drilling by BGF continues to systemati- More information underground mine would have a life of 21 years, producing cally test the ore targets that have been identified. To date, approximately 13 million tonnes of ore at an average head the drilling has shown that within the ore shoot, grades can Richard Laufmann grade of 8.4 grams of gold per tonne. Production is expected range from 1.5g/t to above 80g/t over a thickness of 1.5m to in CEO Ballarat to ramp up to an average 200,000 ounces a year with cash excess of 10m.” Goldfields costs of production estimated at $274 an ounce. Total cost “Progress in the last year has been astounding. With the Or Joel Forwood Investors Relations per ounce of gold produced is expected to be $342. gold price gaining momentum and more than a few pundits Manager The mine would produce an internal rate of return of 34 per calling it significantly higher, it looks like the company’s tim- 0438 576 879 cent at a gold price of $525 per ounce over the life of the mine. ing may be spot on,” he said.

DECEMBER 2004 13 Jack Bates in Otwa deep-wa

14 DISCOVERY ay Basin The Jack Bates deep-water drilling rig was shipped to Australian waters recently.

ne of the world’s biggest offshore drilling rigs has arrived in Victorian waters to drill several wells that could change the face of the Victorian petroleum sector permanently. The semi-submersible rig, Jack Bates, arrived in South Australian waters Oearly in October after a 13,000-nautical mile, 45-day voyage from Norway to Australia onboard the heavy-lift vessel Mighty Servant 1. ater The specialist deep-water rig has been contracted by Santos Ltd and other companies to drill in the Otway Basin and other areas off Western Australia in a bid to locate new oil and gas reserves. The rig was floated off the Mighty Servant 1 in the sheltered waters north of Thistle Island, about 50 kilometres off Port Lincoln in South Australia after which it was towed to its first drilling location off the Victorian coast. Its first well was the Callister-1 well located in exploration permit VIC/P51. The well was spudded on 3 October 2004 and was still drilling in late October. The VIC/P51 permit covers an area of over 2600 square kilo- metres and lies adjacent to the Casino gas development in VIC/P44 and the deepwater exploration permit VIC/P52. After Callister-1, the Jack Bates will move to drill Santos' Amrit-1 exploration well in the deep-water part of the offshore Otway Basin in VIC/P52 permit. Amrit-1 is a frontier, deepwater well in 1450 metres of water, the first ever deep-water well to be drilled in the Otway Basin. The well carries high risks of failure but success could pro- vide major opportunities for both Santos and deep water exploration in the area.

ABOUT THE RIG Jack Bates is one of the largest semi-submersible rigs in the world, designed specifically to cope easily with the rough weather conditions found in offshore, deep-water locations. It was built in Japan at the Ishikawajima-Harima Heavy Industries shipyard in 1986 and upgraded in 1997 and 2001. The rig is 370 ft long and 255 ft wide, stands 140 ft from the keel to the main deck and displaces 82,843 tonnes at drilling Left: Jack Bates draft. It can drill in water more than 1800 metres deep. is floated off the Jack Bates last visited Australia in September 1996 and was Mighty Servant 1 - most recently employed in the wild waters north west of the a semi-sub- Shetland Islands. The rig was then relocated to a Norwegian fjord and loaded mersible heavy onto the heavy lift vessel, the Mighty Servant 1 for the 13,000 transport vessel. nautical mile, 45 day voyage to Australia, at a speed of 10-12 More information knots. As well as having more than 50 people on board during the Kathryn Mitchell drilling operations, the Jack Bates will be carrying one million Santos Ltd litres of fuel, 250,000 tonnes of bulk drilling fluids, 20,000 Public Affairs tonnes of drilling fluid chemicals, and 250,000 tonnes of Manager cement. (08) 8218 5260 0407 979 982

DECEMBER 2004 15 Anglo American backs the Latrobe Valley A new era for Latrobe Valley coal

Above: Conceptual nglo American plc has signalled its support for a new majority shareholding and extending the share purchase diagram of era of coal development in the Latrobe Valley. The UK offer to the minority shareholders. offshore Abased mining giant has taken a controlling interest in Anglo, through its Anglo Coal Australia operations, has geosequestration. APEL, enabling the company to move ahead with the next appointed Jeff Cochrane as APEL Chief Executive Officer. stage of evaluation and planning for its huge Latrobe Valley Jeff, whose background is in mine and power-station devel- brown coal to liquids and geosequestration project. opment, is no stranger to Victoria having worked here with A world-leading producer of gold, platinum, diamonds, coal Shell Coal in the 1990s. and paper products, Anglo acquired a 20% shareholding in Jeff said, “APEL’s project activity over the next year will APEL the owner of an Exploration License covering substan- focus mainly on defining the requirements for the first stage tial coal in the Latrobe Valley in mid-2003. That deal gave APEL plant. Work is already underway on a regional geosequestra- the funds to carry out an intensive pre-feasibility study for the tion study that could revitalise coal development in the coal to liquids project - and at the same time gave Anglo an Latrobe Valley,” Jeff said. option to take a controlling interest once the study was com- With the assistance of a Federal Government grant, the pleted. CO2CRC and APEL are studying the potential for geoseques- The study scope included a brown coal mine, a coal drying tration storage sites and infrastructure to remove the green- and gasification plant, a synthesis gas based hydrogen pro- house emission concerns that could otherwise constrain duction plant, a Fischer Tropsch fuel synthesis plant for con- new coal developments in Victoria. verting gas to liquids, and an integrated waste heat and off The geosequestration study will also provide a framework gas power plant. At full-scale the project is planned to pro- for consultation with community and corporate stakeholders. duce 60,000 barrels a day of liquids – mainly ultra-clean diesel Jeff said, “While geosequestration is an emission reduction fuel. technology that holds great promise for the Latrobe Valley, it Greenhouse emissions from the project are planned to be will need rigorous technical evaluation and wide-ranging substantially eliminated by geosequestration - storing its car- community and stakeholder engagement to achieve the bon dioxide by-product deep underground in the offshore assurance and support needed for the development of a Gippsland Basin. commercial project.” Project development is contingent on a full approvals process, including an Environmental Effects Statement, and a successful Mining License application. In September Anglo exercised STUDY SHOWS WAY its option, acquiring a The pre-feasibility study was duly completed in early 2004, and then in September Anglo exercised its option, acquiring a majority shareholding in APEL 16 DISCOVERY Minerva gas field begins commissioning

Full production from the field is Minerva development, the gas plant, is now approaching completion.” expected to commence by the end of “Construction is well advanced and pre-commissioning has started. All other parts of the Minerva Development are now the year ready to produce, with the Minerva 3 and 4 wells completed, onshore and offshore flowlines installed, and all tie-ins made HP Billiton has started pre-commissioning at its from the wellhead through to the gas plant.” Minerva gas field with full production expected to begin Gas from Minerva is primarily destined for the South Bby the end of the year to add a new dimension to Australian power generation market. Victoria’s rapidly growing natural gas supply system. In March 2002 a 10-year gas sales agreement was signed The Minerva field, which was originally discovered by BHP between BHP Billiton and Pelican Point Power Ltd, wholly Billiton in 1993, found a 129 metre gross gas column in about owned subsidiary of International Power Plc for the provision 60 metres of water. The Minerva gas field is 10 km offshore of Minerva gas into the SEAgas pipeline to Adelaide. from the township of Port Campbell. Initially gas was expected to be delivered into the pipeline in In September/October 1993, BHP Billiton drilled a second the first quarter of 2004 but a change in contractual arrange- well and encountered a 111 metre gross gas column and fol- ments slowed the process. lowed up the wells with a 3D seismic survey to further delin- After the first phase of the Minerva project, the offshore eate the discovery. facilities were completed, a second phase involving the Commercial development of Minerva began in May 2002 and construction of the onshore gas processing plant had to after some delays, the venture is finally nearing completion. In be undertaken. its September quarterly production report, issued in mid The gas plant facility is located inland from Port Campbell October, BHP Billiton reported that, “The final part of the north of Brumby’s Road and a buffer of trees has been planted around the site to minimize the visual impact of the facility. Left: Laying the Offshore the Minerva field devel- offshore pipe opment involved the drilling and installation of two subsea well completions in 60 metres of water. A single flowline will transport gas to the coast, through a subter- ranean shore crossing and to the gas processing facility prior to exporting the gas into the SEA gas pipeline. The Minerva field is a natural gas field with a small amount of liquid condensate containing an estimat- ed proven and probable gas reserve of 301 billion cubic feet of gas (Bcf). The liquids reserves are 1.24 mil- lion barrels (MMbbl) gross. The gas plant will have a gross design production capacity of 150 terajoules of gas per day [TJ/d] while about 600 barrels of valuable More information condensate (light oil) will also be produced each day. Ms Tania Price BHP Billiton holds a 90 per cent Media Relations interest in the Minerva field and is Phone: the project operator. The remain- (03) 9609 3815 ing 10 per cent interest is held by Email: Santos (BOL) Pty Ltd. BHP Tania.Price@bhpbil- Billiton’s share of capital expendi- lliton.com ture in the Minerva development is US$150 million.

DECEMBER 2004 17 Nexus expands in Bass Strait New Nexus permit and seismic data opens more Bass Strait exploration

exus Energy Ltd expanded its interests in Bass Strait by ping water bottom and complex shallow geology. acquiring the VIC/P49 exploration permit in the “In the past, different operators have used a variety of seis- NGippsland Basin. The 2351 square kilometre permit lies mic processing techniques to address this problem, resulting close to several major producing oil and gas fields including in a series of inconsistent overlapping 2D and 3D seismic Tuna, Flounder, Halibut, Terakihi/Blackback and Marlin. But data sets that have actually hampered interpretation and Nexus believes the permit is under-explored with only two mapping in the area,” the company’s managing director Ian wells, Great White 1 and Whaleshark 1, ever drilled in the area. Tchacos said. Nexus acquired the permit from Canada’s EnCana But the company believes the problem has now been Corporation in exchange for an overriding royalty of between overcome. 4 and 5 per cent depending on the volume of hydrocarbons “Nexus has developed a processing technique that produced. removes the inconsistencies between the seismic data sets VIC/P49 is immediately adjacent to Nexus’ wholly owned and produces a single data set, which can be interpreted and permit VIC/P56, where it plans to drill an exploration well early mapped with much greater confidence than was possible next year. Success in this permit could improve the prospec- before,” the company statement reports. Nexus used the tivity in VIC/P49. technique in VIC/P56 to define a drilling target and the well is Two prospects, Culverin and Scimitar, have been delineated expected to be drilled in the first half of 2005. by Nexus, in the eastern part of VIC/P56. Recently Now the process will be used in VIC/P49. Mr Tchacos said reprocessed 2D and 3D seismic data suggest both these Nexus, by acquiring the VIC/P49 permit, “had created the prospects extend into VIC/P49. opportunity to integrate its exploration work program across Culverin is a prospect at the Top Latrobe reservoir level with the two permits to maximise value and knowledge". More information the potential for mean oil reserves of 70 million barrels (mmb- “We are delighted to have been able to acquire the VIC/P49 Philip Smith bls) and an upside of over 200 mmbbls. Scimitar is a prospect permit at very attractive terms having recognised its potential (Exploration at the Intra Latrobe/Golden Beach reservoir level with the from the work being done in VIC/P56,” Mr Tchacos said. Manager) potential for mean oil reserves of 108 mmbbls and an upside Mr Tchacos said the acquisition of VIC/P49 offered the Nexus Energy Ltd of over 170 mmbbls according to a statement by Nexus lodged opportunity to evaluate at very low cost the potential of new (03) 9660 2504 with the Australian Stock Exchange. play types and petroleum systems that might exist in the Email: Nexus now controls 100 per cent of both prospects across untested southern portion of the permit, which lies in deeper [email protected] both permits. Its statement said that seismic imaging and accu- water. rate depth conversion is difficult to achieve around VIC/P56 and Nexus plans to participate in up to six exploration wells in VIC/P49 as the area is affected by a deeply scoured steeply dip- the Gippsland and Bonaparte Basins in the next 18 months.

18 DISCOVERY VIMP boosts resources industry

Victoria’s VIMP program helps minerals explorers uncover new wealth

he new boom in Victoria’s resources industry owes much of its success to the Victorian Initiative for TMinerals and Petroleum (VIMP) which has provided explorers with a huge head start in the search for minerals and energy. With almost $30 million committed to the VIMP program since 1994 Victoria has now created a comprehensive geo- logical and geophysical data base over almost the entire state. Victoria currently offers more baseline geological informa- tion to explorers over more of the state than any other State or Territory in the country. And the benefits are beginning to show. More than $4 billion has been committed to new resources projects in Victoria in the past four years, ranging from major new offshore gas fields to new gold mines, coal projects, min- eral sands mines and processing facilities, and a large range of new stone, sand and industrial minerals developments.

UNDERSTANDING OUR STATE’S GEOLOGY VIMP is responsible for a comprehensive revision of the geo- logical roots of Victoria, providing explorers with new ideas and theories about the genesis of mineral deposits and the likely location of previously undiscovered ore bodies. A classic example is provided by the pioneering work being conducted by the MPI Mines Ltd team which is exploring, with great success, for new gold ore bodies which lie hidden from For each dollar invested in VIMP, More information view at the surface by layers of recently deposited sediments. One hundred and fifty years ago gold was discovered by dig- at least $9 has been spent by Kathy Hill, Director gers who prospected the ground for exposed reefs and quartz GeoScience Victoria veins which could be observed at or close to the surface of exploration companies Tel: (03) 9658 4562 the ground. The easily-found ore bodies have been found and mined, requiring explorers to develop new theories and seek ore INVESTING IN RESOURCES GROWTH deposits in places that may be far from the surface. Back in 1999 the benefits flowing from the VIMP work were The vast databases provided through the VIMP program help already apparent. For every dollar invested by the State explorers to interpret hidden rock formations and understand Government on new data through VIMP, at least $9 was being the processes by which they were created. spent by exploration companies looking for new ore This new geological understanding over large areas of the resources in the state. state has had a direct benefit in places like Bendigo, Ballarat That ratio of spending, at a time of weak mineral and energy and Castlemaine where geologists have re-interpreted the prices, has now been maintained or exceeded as a flood of pioneering work of early prospectors to unlock the secrets of new companies has entered Victoria. the gold ore zones in the rich workings mined a century and a Spending by the Victorian Government on exploration data half ago. will near $30 million by mid 2005 and the scale of rewards has As a result new ore bodies are being located and hundreds risen dramatically. Major new gold, mineral sands and petro- of millions of dollars have been raised and are being invested leum projects, currently being developed across Victoria, to develop new mines on or near the sites of mines long since stand as testimony to the value being generated by the abandoned. Victorian Initiative for Minerals and Petroleum.

DECEMBER 2004 19 NEW LEVIATH MPI Mine’s Stawell gold interests will be transformed into the new Leviathan Resources Ltd AT STA W

ictoria’s biggest gold mine, the 100,000 ounce per “Discussions with LionOre regarding the takeover offer have year Stawell mine, is to be floated in a new compa- reinforced the merits of de-merging the MPI gold business to ny to be launched on the Australian Stock Exchange realise value for shareholders,” Mr Gerahty said. late this year. MPI Mines Ltd, 100 per cent owner of “As a result of the de-merger, MPI shareholders will receive the Stawell mine, plans to separate its gold assets a direct interest in Leviathan and will participate in the value Vinto a new company to be named Leviathan Resources Ltd, creation opportunities being pursued at the Stawell while the remaining nickel assets of the company will be Gold Mine.” acquired by Canadian based LionOre Mining International Ltd. At Stawell, the underground mine is going through a major Existing MPI shareholders will be offered $1.00 in cash for upgrade. The original ore body, Magdala, is close to being their shares plus shares in both LionOre and Leviathan mined out and production is being progressively transferred Resources. MPI shareholders can then retain their long term to the rich Golden Gift ore body. participation in the Stawell Gold Mine through their direct interest in Leviathan Resources. GOLDEN GIFT CONTINUES TO SHOW PROMISE Along with the creation of Leviathan the company will pro- Exploration of the Golden Gift South prospect has also provid- duce a prospectus for the issue of new shares to raise a fur- ed significant encouragement that a major new ore resource ther $15 million as working capital for the company. could be confirmed. In addition, strong results are being pro- MPI chairman, John Gerahty said, “We are excited by the duced from the intensive exploration program in the Stawell prospect of forming a new stand-alone gold company princi- corridor to the north and south of the Stawell mine. pally focussed on the western region of Victoria. The LionOre “Leviathan will be well-positioned to pursue business devel- takeover offer provides immediate value recognition to opment opportunities as they arise,” said Brian Phillips, MPI MPI shareholders, while enabling them to participate in the Managing Director and Leviathan non-executive chairman. future opportunities.” “The Stawell operations provide Leviathan with an estab- lished 100,000 ounces of gold production per annum, with POSITIONING FOR SUCCESS development underway to reach a sustainable level of 130,000 MPI won full control of the Stawell gold mine early this year ounces per annum,” he said. when former partner, Pittston Minerals of the US sold its “Based on current cash flow, the de-merged entity will form share in the mine and surrounding exploration leases. the basis of a viable stand-alone business and will enable MPI then set about expanding operations at the mine through ongoing exploration within the mine and the Stawell corridor,” significant capital expenditure on new equipment, improved Mr Phillips said. underground development and modifications to the mill. “There is a great team of competent, experienced people in Mr Gerahty said, “Since commencing the turn-around pro- Leviathan, well motivated to achieve our targets,” he said. gram at the Stawell gold mine in April 2004, the MPI board has Kevin Wilson, the executive general manager corporate been investigating means of ensuring that the value of its gold development of MPI, has been appointed managing director business is fully recognised. of Leviathan. “The board concluded that the value of the gold businesses To achieve the de-merger and subsequent creation of would be enhanced by de-merging it into a stand-alone com- Leviathan the capital of MPI has to be reduced to reflect the pany,” he said. value of the assets taken into Leviathan. The capital reduction

20 DISCOVERY HAN WELL

amount is $35.614 million, or approximately 28 cents per ordi- nary MPI share. Subject to the necessary approvals, Leviathan expects to list on the Australian Stock Ex- change in late December 2004 or early 2005. Patersons Securities Limited was selected as lead manager to the proposed initial public offering and subsequent ASX listing. MPI’s links to Victoria stretch back to 1992 when the company first acquired a 50 per cent stake in the Stawell mine from WMC Ltd. It bought the outstanding 50 per cent from Pittston in March this year. MPI has managed the mine since its acquisition in 1992. Apart from the Stawell mine, Leviathan will also own explo- ration tenements in the Stawell Corridor and a 50 per cent interest More information in the Coolgardie joint venture in Coolgardie, Western Australia. Kevin Wilson At June 30 this year Leviathan Managing Director Leviathan had reserves and resources Resources Limited totalling 1.45 million ounces of Tel: 03 9628 2222 gold at Stawell. Total historical production, together with the estimated The company will produce a prospectus for resource and reserve at June 2004, gives the field a total the issue of new shares to raise a further endowment of around 5.6 million ounces of gold. $A15 million as working capital DECEMBER 2004 21 and the current Victorian Mining Warden, Mr Noel Laidlaw. Gold The WA Gold Stealing Detection Unit, financed by the WA Chamber of Mines, was established in 1906 in response to the theft of gold bearing trooper ore from mines in the famous Kalgoorlie ‘Golden Mile’. This was later processed at illegal mills and smelters in the bush. returns The Gold Stealing Detection Unit was created follow- ing a Royal Commission into gold stealing in Kalgoorlie. This restricted gold stealing but did not eliminate the practice. Gold stealing from Victoria’s rich and ‘nuggetty’ mines was Victoria’s first ‘gold cop’ in more also rife in the past with gold dust panned from creeks and than a century reflects the industry’s nuggets often used on the goldfields as hard currency. Mining historian, James Lerk, based in Bendigo, told resurgence. Discovery that the most dangerous part of the goldfields troopers’ duties was escorting gold shipments from remote he risky days of transporting Victoria’s newly-poured mines into the banks in Bendigo and Melbourne. gold bars along rough bush tracks in horse drawn carts, The new Melbourne to Bendigo railway in the 1860’s Tescorted by quasi-military troopers, gave way to more reduced the risk but even as recently as the 1940’s a cache of modern security measures and transport many years ago. several kilograms of gold, representing a fortnight’s crush- But a police presence on the Victorian goldfields is ings from the State Government battery in Bendigo, went again important. missing from the security carriage of the Bendigo train. The 150 years ago bushrangers roamed the forests and ‘pocket- gold, from the North Deborah mine, was never recovered and ing’ a nugget or two from deep underground gave some min- despite strong suspicions there were no convictions. ers a highly liquid form of hard currency. Today, instead of Independent cyanide processing companies were also goldfields troopers, Victoria has its own gold industry police suspected of gold stealing and money laundering on a grand officer, backed by the Victoria police and able to draw on the scale. Individuals with contraband gold often sold their booty expertise of Western Australia’s well-known Gold Stealing to cyanide processors for a fraction of its value. The gold was Detection Unit. then added into the cyanide tanks and dissolved along with The resurgence of Victoria’s modern gold industry has the legitimate gold and later sold to the banks with its shady driven the appointment of a 21st century version of the past hidden forever. original goldfields trooper. Victoria’s first ‘gold cop’ for about In the late 1990s Victoria’s mining warden, and the former a century is posted at Bendigo police station to monitor the Bendigo Police Chief Superintendent, David Mansell, modern mining sector and investigate issues specific to the highlighted the need for a specialist mining industry police gold and minerals industry. presence in the resurgent Victorian goldfields. Bendigo Detective Senior Constable Patrick Bannan is attached to Mining, which is developing a major new gold mine in the Bendigo Crime Investigation Unit. He has been a police Bendigo, funded a training course for Det Sen Const Bannan officer for 29 years, mostly served in the criminal investigation with the Kalgoorlie Gold Stealing Detection Unit, a role which field in and around Bendigo where he has absorbed much of has since been taken up by other gold companies operating the region’s gold heritage. Now he has a much more direct in Victoria and the industry's peak body, the Minerals Council role to play. of Australia - Victoria Division. “My first priority is in relation to prevention and detection of criminal activity within the mining industry. A DANGEROUS JOB? “Our role is to provide an opportunity for the mining industry Two of Australia’s most famous gold bandits were William to talk to the police,” Det Sen Const Bannan said. “I’m hoping Coulter and Philip Treffene who operated an illicit smelter everyone in the industry gets to know me. about 27 km south of Kalgoorlie early last century. They were “I want mining industry people to know that they can speak arrested and jailed for 6 months for gold stealing in 1921 but to me about any police related problem and feel confident that returned to their illegal business on their release. I have a good knowledge and understanding of the industry.” One evening in April 1926, two well-known Kalgoorlie police To enhance his knowledge of the industry Det Sen Const officers followed Coulter and Treffene on their bicycles to the Bannan completed a metallurgy course at Bendigo TAFE illegal smelter but after surprising the thieves the police More information college. officers were blasted with shotguns, dying instantly. The Det Sen Const bodies were stuffed into a gold furnace but it was too small Patrick Bannan HOW THE ROLE EVOLVED so they were later cut up with a carving knife and their Bendigo Criminal The creation of Victoria’s newest goldfields officer had its remains dumped in a mineshaft. Investigation Unit, genesis in early 1999 when then State Mining Warden, Kevin Coulter and Treffene were eventually hanged at Fremantle Bull Street, Ryan, recognised the need for the Victoria Police to develop gaol on October 25, 1926 for the murders. Bendigo 5440 2582 expertise in the minerals industry. He saw that the Victoria Det Sen Const Bannan, is unlikely to encounter the illegal Tel: (03) 54402547 Police needed specialist knowledge of the Victorian mining gold smelting furnaces faced by his early colleagues but or industry to improve some investigations. security in the gold industry remains a high priority. Det Sen Victoria Police Now officially known as the Victoria Police Mining Industry Const Bannan told Discovery that Victoria’s former mining Anonymous Hotline Tel: (03) 54432544 Liaison Officer, Det Sen Const Bannan maintains close links warden, Mr Kevin Ryan, had encountered some disputes in

with the WA Gold Stealing Detection Unit based in Kalgoorlie the gold industry that turned out to be criminal activity. Images reproduced courtesy of Sovereign Hill Museums Association

22 DISCOVERY go to… Minerals & Petroleum Contacts

EXECUTIVE Mike Woollands BUSINESS DEVELOPMENT AND Richard Aldous Manager, Basin Studies TECHNOLOGY Executive Director, Minerals and Petroleum T: (03)9658 4536 Roger Buckley T: (03) 9658 4411 Acting Director, Business Development Maher Megallaa and Technology Peter Vavasseur Manager, Acreage Release T: (03) 9658 4401 Business Manager T: (03) 9658 4541 T: (03) 9658 4409 Graham Gooding Bob Harms Manager, Minerals Industry Development INFORMATION AT DPI Manager, Information T: (03) 5336 6804 Upper Ground Floor T: (03) 9658 4560 1 Spring Street Guy Hamilton Melbourne Victoria MINERALS AND PETROLEUM REGULATION Development Manager T: (613) 9658 4440 Phil Roberts T: (03) 5430 4697 Director, Minerals and Petroleum Regulation John Lambert GEOSCIENCE VICTORIA T: (03) 9658 4457 Manager, Science and Technology Kathy Hill Development Director, GeoScience Victoria George Buckland T: (03) 9658 4405 T: (03) 9658 4562 Manager, Minerals and Petroleum Tenements T: (03) 9658 4439 Geoff Collins Alan Willocks Manager, Petroleum Facilitation Manager, GeoScience Information Graeme McLaughlan T: (03) 9658 4406 and Geophysics Manager, Northern Region T: (03) 9658 4501 Chief Mining Inspector T: (03) 5430 4696 INFORMATION AND DEVELOPMENT Peter O’Shea Manny Hemman John Mitas Manager, Regional Geology Manager, Information Development Manager, Minerals and Extractive Operations T: (03) 9658 4525 T: (03) 9658 4571 Chief Inspector of Quarries Paul MacDonald T: (03) 9658 4422 MINERALS AND PETROLEUM Acting Manager, Mineral Resources BUSINESS CENTRE Doug Sceney T: (03) 9658 4503 Kim Ricketts Manager, Sustainability Minerals and Petroleum Business Kourosh Mehin T: (03) 9658 4433 Centre Coordinator Manager, Resources T: (03) 9658 4454 T: (03) 9658 4542 Horacio Haag Manager, Petroleum Operations Kate Tunney Safety and Environment Manager, Communications Projects T: (03) 9658 4415 T: (03) 9658 4076 Resources Sector Websites

ACADEMIC GOVERNMENT Northern Territory Department of RMIT Department of Civil and Australian Governments Business, Industry and Resource Chemical Engineering Geoscience Portal Development www.rmit.edu.au/eng/civil-chem www.geoscience.gov.au www.dme.nt.gov.au La Trobe University Department of Department of Industry, Tourism Mineral Resources Tasmania Earth Sciences and Resources www.mrt.tas.gov.au www.geology.latrobe.edu.au www.industry.gov.au Department of Primary Industries, Victoria Monash Earth Sciences Department of Natural Resources and www.dpi.vic.gov.au www.earth.monash.edu.au Mines, Queensland Department of Industry and Resources, Seismology Research Centre www.nrm.qld.gov.au/mines Western Australia www.seis.com.au Environment Australia www.doir.wa.gov.au University of Ballarat Geology Department www.environment.gov.au www.ballarat.edu.au/ard/sci-eng/geology Geoscience Australia PEAK BODIES University of Melbourne School of www.ga.gov.au Australian Petroleum Production and Earth Sciences NSW Department of Mineral Resources Exploration Association www.earthsci.unimelb.edu.au www.minerals.nsw.gov.au www.appea.com.au Primary Industries and Resources, SA Minerals Council of Australia (Vic) www.pir.sa.gov.au www.vicmins.com.au

DECEMBER 2004 23 review July to September 2004 EXPLORATION LICENCE APPLICATIONS Title No. Map Sheet Primary Owner Event Date Area Size EL4835 MANSFIELD GOLDSEARCH LIMITED 15/07/2004 173 GRATS EL4836 ALBURY NORTHERN MINE VENTURES PTY LTD 23/07/2004 299 GRATS EL4837 MELBOURNE BARRICK GOLD OF AUSTRALIA LIMITED 26/07/2004 488 GRATS EL4838 WOODEND BARRICK GOLD OF AUSTRALIA LIMITED 26/07/2004 439 GRATS EL4839WOODEND BARRICK GOLD OF AUSTRALIA LIMITED 26/07/2004 498 GRATS EL4840 HORSHAM LEVIATHAN RESOURCES LIMITED 12/08/2004 1 GRATS EL4841 BEAUFORT SEDIMENTARY HOLDINGS LIMITED 27/08/2004 7 GRATS EL4842 CASTLEMAINE GOLD SEARCH INTERNATIONAL PTY LTD 07/09/2004 96 GRATS EL4843 MANSFIELD GOLDSEARCH LIMITED 07/09/2004 10 GRATS EL4844 BACCHUS MARSH OROYA MINING LIMITED 10/09/2004 38 GRATS EL4845 COHUNA LEVIATHAN RESOURCES LIMITED 23/09/2004 432 GRATS EL4846 MITIAMO LEVIATHAN RESOURCES LIMITED 23/09/2004 442 GRATS

EXPLORATION LICENCES GRANTED Title No Map Sheet Primary Owner Event Date Expiry Date EL4743 WANGARATTA CONARCO MINERALS PTY LTD 06/07/2004 05/07/2009 EL4820 ALEXANDRA FLITEGOLD PTY LTD 06/07/2004 05/07/2009 EL4833 BALMORAL BASIN MINERALS HOLDINGS PTY LTD 16/07/2004 15/07/2009 EL4815 CRESWICK ROCK-EX ENTERPRISES PTY LTD 02/08/2004 01/08/2009 EL4829MITIAMO RANGE RIVER GOLD LTD 25/08/2004 24/08/2009 EL4830 MITIAMO RANGE RIVER GOLD LTD 25/08/2004 24/08/2009 EL4824 BENDOC BARACUS PTY LTD 14/09/2004 13/09/2009 EL4523 BENDIGO SORD TECHNOLOGIES LTD 14/09/2004 13/09/2009 EL4837 MELBOURNE BARRICK GOLD OF AUSTRALIA LIMITED 22/09/2004 21/09/2009 EL4838 WOODEND BARRICK GOLD OF AUSTRALIA LIMITED 22/09/2004 21/09/2009 EL4839 WOODEND BARRICK GOLD OF AUSTRALIA LIMITED 22/09/2004 21/09/2009

EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED Title No Map Sheet Primary Owner Event Date Expiry Date EL4704 HEATHCOTE AGD OPERATIONS PTY LTD 06/07/2004 06/07/2004 EL4355 BEAUFORT SEDIMENTARY HOLDINGS LTD 16/07/2004 16/07/2004 EL4674 CRESWICK SINCLAIR EXPLORATION PTY LTD 02/08/2004 02/08/2004 EL4737 HORSHAM NEWCREST OPERATIONS LTD 02/08/2004 02/08/2004 EL4628 DUNOLLY WEDDERBURN MINING PTY LTD 02/08/2004 02/08/2004 EL4641 MANSFIELD WEDDERBURN MINING PTY LTD 12/08/2004 12/08/2004 EL4646 MATLOCK WEDDERBURN MINING PTY LTD 12/08/2004 12/08/2004 EL4517 COHUNA AUSTRALIAN COALBED METHANE PTY LTD 25/08/2004 25/08/2004 EL4798 ST ARNAUD NEWCREST OPERATIONS LTD 22/09/2004 22/09/2004

MINING LICENCE APPLICATIONS Title No. Map Sheet Primary Owner Event Date Area Size MIN5426 DUNOLLY GARY R FORD 02/08/2004 2.4 HA MIN5427 DUNOLLY GARY R FORD 02/08/2004 4.0 HA MIN5429BOGONG MT WILLS GOLD MINES NL 12/08/2004 6.0 HA MIN5430 DUNOLLY DUNOLLY GOLD DEVELOPMENTS PTY LTD 12/08/2004 31.1 HA MIN5431 HEATHCOTE PERSEVERANCE EXPLORATION PTY LTD 17/08/2004 18.2 HA MIN5432 CRESWICK LEIGH CRANE 24/08/2004 4.3 HA MIN5433 DUNOLLY VICTORIA MINING EXPLORATION PTY LTD 25/08/2004 4.8 HA MIN5434 CRESWICK LILY D BAYLY 30/08/2004 5.0 HA

MINING LICENCES GRANTED Title No Map Sheet Primary Owner Event Date Expiry Date MIN5417 WEDDERBURN FRERK, ASHTON JONES & MCKAY 02/08/2004 01/08/2009 MIN5418 WEDDERBURN FRERK, ASHTON JONES & MCKAY 02/08/2004 01/08/2009 MIN5419NOWINGI WHITFIELD MINERALS PTY LTD 25/08/2004 24/08/2014 NIL

MINING TITLES SURRENDERED, CANCELLED OR EXPIRED Title No Map Sheet Primary Owner Event Date Expiry Date MIN5118 NYAH GLENIS A BURGER & STUART BURGER 02/08/2004 02/08/2004 MIN5346 DUNOLLY SHANE WILLIAM TRICKEY 12/08/2004 12/08/2004 MIN4170 YARRAM INTERSTATE ENERGY GROUP PTY LTD 14/09/2004 14/09/2004 MIN5342 BENDOC JOHN C SHIMMEN & BRUCE MCLENNAN 14/09/2004 14/09/2004 MIN4761 MURRINDAL MERVYN JOHNSON 14/09/2004 14/09/2004 View tenement details at www.dpi.vic.gov.au/minpet/geovic 24 DISCOVERY Petroleum Tenements PRODUCTION LICENCES FIELD(S) TENEMENT HOLDER EXPIRY DATE VIC/L1, L2, L3, L4 Barracouta and Marlin Esso* / BHP Billiton 24/08/2009 VIC/L5, L6, L7, L8 Halibut and Kingfish Esso* / BHP Billiton 19/09/2010 VIC/L9Tuna Esso* / BHP Billiton 12/07/2016 VIC/L10, L11 Snapper and Flounder Esso* / BHP Billiton 28/05/2018 VIC/L13, L14 Bream Esso* / BHP Billiton 15/12/2006 VIC/L15, L16, L17, L18 Dolphin, Perch and Seahorse Esso* / BHP Billiton 13/06/2010 VIC/L19West Fortescue Esso* / BHP Billiton 12/07/2016 VIC/L20 Blackback Esso* / BHP Billiton 01/01/2019 VIC/L21 Patricia Baleen OMV Timor Sea/Trinity Resources/ Basin Oil/ Santos 26/12/2022 VIC/L22 Minerva BHP Billiton/Santos 31/10/2023 VIC/L23 Geographe Woodside/ Origin/ Benaris Intern. / CalEnergy indefinite term EXPLORATION PERMITS BASIN TENEMENT HOLDER EXPIRY DATE VIC/P41 Gippsland Bass Strait/Eagle Bay 13/02/2005 VIC/P42 Gippsland Bass Strait*/ Inpex Indonesia Petroleum 13/02/2008 VIC/P43 Otway Woodside* / Origin / Benaris / Cal Energy 10/08/2005 VIC/P44 Otway Santos/ Mittwell Energy / Peedamullah Petroleum P/L 10/08/2005 VIC/P45 Gippsland BHP Billiton*/ Inpex Alpha / Moby Oil & Gas 15/05/2008 VIC/P46 Otway Essential Petroleum* 27/05/2007 VIC/P47 Gippsland Bass Strait/ Eagle Bay 27/02/2008 VIC/P49Gippsland Nexus Energy Aust. 15/10/2007 VIC/P50 Otway Essential Petroleum* 16/09/2008 VIC/P51 Otway Santos* / Inpex Alpha 26/02/2009 VIC/P52 Otway Santos* / Inpex Alpha / Unocal 26/02/2009 VIC/P53 Gippsland Cue Petroleum Pty Ltd.* 15/10/2009 VIC/P54 Gippsland Apache* Nexus Energy VIC/54 P/L 07/04/2009 VIC/P55 Gippsland Basin Oil Pty Ltd.*/ Diamond Gas Resources / Santos 14/09/2009 VIC/P56 Gippsland Nexus Energy P/L 27/08/2009 VIC/P57 Gippsland 3D Oil Pty Ltd 18/04/2010 VIC/P58 Gippsland Apache Northwest Pty Ltd 30/08/2010 VIC/P59Gippsland * Sita Oil Exploration House Inc 12/10/2010 VIC/P60 Gippsland Holloman Corporation, Australian-Canadian, Oil Royalties Ltd, Ely Sakhai 28/10/2010 VIC/P37(v) Otway Origin Energy/Woodside Energy 16/04/2009 VIC/P38(v) Otway Benaris P/L 11/05/2009 VIC/P39(v) Gippsland Nexus Energy Aust. NL 19/04/2010 VIC/P40(v) Gippsland Petro Tech P/L 19/04/2010 RETENTION LEASES FIELD TENEMENT HOLDER EXPIRY DATE VIC/RL1 Mulloway Esso* / BHP Billiton 13/04/2005 VIC/RL2 Kipper Esso* / Woodside / BHP Billiton / Crusader / Santos / VIC/RL3 Sole Basin Oil P/L / Santos 13/04/2005 VIC/RL4 Sunfish Esso* / BHP Billiton 27/02/2006 VIC/RL6 Basker/Manta Anzon Australia Ltd* 29/10/2005 VIC/RL7 La Bella BHP Billiton*/ Santos (BOL) 19/12/2008 VIC/RL9Manta Anzon Australia Ltd* 21/03/2006 VIC/RL10 Gummy Anzon Australia Ltd* 21/03/2006 OnshoreVIC/RL1(v) Golden Beach Titles Santos*/ Basin Oil 27/08/2007 PRODUCTION LICENCES BASIN TENEMENT HOLDER EXPIRY DATE PPL 1 Otway TXU Gas Storage P/L PPL 2 Otway TXU Gas Storage P/L PPL 3 Otway Boggy Creek P/L* PPL 4 Otway Origin Energy Resources* PPL 5 Otway Origin Energy Resources* PPL 6 Otway Origin Energy Resources* / Beach Petroleum PPL 7 Otway Origin Energy Resources* PPL 8 Otway Origin Energy Resources* PPL 9Otway Origin Energy Resources* / Beach Petroleum PPL 10 Otway Origin Energy Resources* / Beach Petroleum PPL 11 Otway Origin Energy Resources* / Beach Petroleum PPL 12 Otway Origin Energy Resources* RETENTION LEASE BASIN TENEMENT HOLDER EXPIRY DATE PRL 1 Otway Origin Energy Resources* / Beach Petroleum 27/09/2017 EXPLORATION PERMITS BASIN TENEMENT HOLDER EXPIRY DATE PEP 151 Otway Essential Petroleum* 15/05/2007 PEP 152 Otway Essential Petroleum*/ Lakes Oil 02/08/2005 PEP 153 Otway Origin Energy Resources* 27/02/2005 PEP 154 Otway Origin Energy Resources* / Beach Petroleum 30/03/2005 PEP 155 Gippsland Petro Tech* 16/02/2006 PEP 156, 157,158 Gippsland Petro Tech* 16/02/006 PEP 159Otway Essential Petroleum* 11/03/2006 PEP 160 Otway TMOC Exploration*/ Origin 13/11/2005 PEP 161 Murray Knight Industries 18/08/2006 PEP 162 Gippsland Karoon Gas P/L 13/08/2006 PEP 163 Otway Mirboo Ridge P/L 18/07/2007 PEP 164 Otway Mirboo Ridge P/L 09/07/2007 PEP 165 Murray Knight Industries 08/04/2008 PEP 166 Gippsland Petro Tech / AusAm Resources 02/01/2008 *PERMIT/LICENCES OPERATOR View tenement details at www.dpi.vic.gov.au/minpet/geovic DECEMBER 2004 25 01313 ER Awards AD 19/11/04 12:02 PM Page 1

DEPARTMENT OF PRIMARY INDUSTRIES

The Minister for Resources’ ! sustainability awards

For Sustainable Development in the Earth Resource Industries. The earth resources sector contributes greatly to the wealth of Victoria and has a far-reaching impact on the daily lives of all Victorians. As part of whole of Government policies to support the sustainable development of Victoria’s primary industries, the first Minister for Resources’ Sustainability Awards will formally recognise and encourage environmental and social excellence and innovation in Victoria’s earth resources sector. The Awards are funded by the Benefits of entering the awards Department of Primary Industries which is investing directly in Businesses or individuals are encouraged to submit entries and innovation and science to influence will have the opportunity to: and enhance minerals and petroleum ! Be recognised for excellence in the management of aspects of industry practices that encourage sustainable development related to their business; more sustainable uses of our ! Gain favourable publicity for their company or project; natural resources. ! Demonstrate to staff, clients and business contacts that they are publicly recognised for their level of achievement in sustainable development; ! Develop networks with environmental groups, government, industry; and within communities; ! Use the award as a tool to promote attributes contributing to sustainable development within their business. Entry forms will be available from 2 December 2004. Entries close on 7 March 2005. Entry forms and information are available from the Department web site at www.dpi.vic.gov.au/minpet or from Banksia Environmental Foundation at www.banksiafdn.com Phone 03 9684 4667. Victoria’s Golden Past The boom years between 1851 and 1915 provided the foundation for Victoria's wealth

ince the official discovery of gold in Victoria in June 1851, the state has produced over 2500 tonnes of gold. SThat is 32 per cent of all the gold ever mined in Australia and 2 per cent of all the gold ever mined in the world. Most of that gold was produced in just 65 years from the first official discovery at Clunes in 1851 until the last major mines closed around 1915. Only in the past 20 years has Western Australia’s gold production, now totalling 3276 tonnes, surpassed Victoria’s rich golden heritage. Such is Victoria’s gold wealth that its total production amounts to 11 kg of gold for every square kilometre of the state. Much of that was alluvial — from creeks and buried deep leads—but later 163 quartz mines produced more than 1 tonne of gold each. More than one-half of these were around Bendigo. Others of note were: The Long Tunnel Mine at Walhalla producing 32 tonnes of gold The Morning Star Mine at Woods Point which yielded 20 tonnes The Port Phillip Co mine at Clunes which gave up 16 tonnes of gold Deep leads were also prolific gold producers and records show that 66 separate companies each produced more than 1 tonne of gold, including: The Band of Hope and Albion Consols at Ballarat that produced 16 tonnes The Madam Berry at Creswick that produced 12 tonnes from a licence just half a kilometre long The Chiltern Valley mine at Chiltern that produced 9.5 tonnes The figures are staggering, but what is more remarkable is that gold remained undetected for so long. It is difficult to say who first discovered gold in Victoria. James Esmond, a young Irish prospector, was rewarded for discovering gold at Clunes, near Ballarat, in June 1851. At almost the same time gold was discovered at Andersons Creek, Warrandyte, on what is now a suburb of Melbourne

and shortly after at Buninyong near Ballarat, by the local Images reproduced courtesy of Sovereign Hill Museums Association blacksmith, Thomas Hiscock. Hiscock's discovery was reported in The Geelong The production figures are staggering Advertiser triggering the first Victorian gold rush. In the late 1840’s Melbourne was the administrative centre of the Port Philip District of the Colony of New South Wales. exodus of men to the goldfields of New South Wales. Above: The very At that time the Colony went through a severe economic James Esmond revealed his find on June 29, 1851, just as early miners depression. Mutton and wool had become nearly valueless new laws relating to gold mining were coming into force. panned the and sheep were being boiled down for tallow. News of other gold strikes quickly followed and the rush waterways for Gold mining at that time might have offered a solution to the was on. alluvial gold economic woes except that it was illegal to prospect. Victoria has never been the same since, quickly rising to In August 1850, the Imperial Parliament passed a bill international repute and Melbourne became the world’s creating the new Colony of Victoria, separating it from New wealthiest city. South Wales. The new arrangement came into effect on July 1, 1851 and the new Government acted quickly to halt the (Article prepared with the assistance of Peter McCarthy.)

DECEMBER 2004 05 Women in Mining The harsh life of the Victorian goldfields was not considered a proper place for women 150 years ago.

was sought for the male-dominated colony and many young, single women were encouraged to migrate to Australia to rectify the gender imbal- ance in the population. A few found fame and fortune entertaining miners in the booming gold towns while many, faced with poverty and destitution, were forced into prostitution to become ‘fallen angels’. Lola Montez was one of the few famous women of the 1850’s gold rushes. The Irish born actress and dancer toured Australia in 1855 and 1856 performing her famous ‘tarantula’ or ‘spi- der dance’, which drew great applause on the goldfields. Rejecting the strict Victorian morals of her time Lola Montez was originally christened Maria Dolores Eliza Rosanna Gilbert. At 16 she eloped with a Lieutenant Thomas James, but

Images reproduced courtesy of Sovereign Hill Museums Association quickly separated and in 1843 launched a danc- ing career. Above: Women on ost men on the gold rush diggings left their Montez left London for Europe and became mistress of King the goldfields of wives and families at home as they sought Louis I (Ludwig I) of Bavaria who later made her Countess of Bendigo their fortunes. The mining industry, like much Landsfeld. The King was subsequently forced to abdicate and of the industrial landscape of the 19th and 20th Lola fled to the US where she married and moved to California centuries was almost exclusively male domi- in 1853. Mnated. But, like today, many popular beliefs were quickly Martha Clendinning however was cast from an entirely dif- overturned as some women traveled to the goldfields right ferent mould, running a successful store on the Ballarat gold- from the beginning. As early as 1851 there were women dig- fields. George Clendinning was a doctor who brought his ging for gold alongside their husbands but many women soon family to Victoria from England in 1852 and immediately ven- turned from the actual digging to other tasks, like running tured to the goldfields with his brother to look for gold, leav- stores and creating infrastructure to support the diggers. ing his wife in Melbourne. An 1854 census of the Ballarat goldfields found there were But unwilling to stay in Melbourne, Martha and her sister 4023 women compared to 12,660 men living on the diggings made the 95 mile trip to Ballarat taking with them bedsteads, but only 5 percent of these women were single, proving that mattresses, blankets, chairs and cooking utensils to set up a family groups had moved to the diggings. store in the diggings. Despite their husband’s objections, the When thousands of men rushed to the goldfields, many fam- sisters opened their store in front of their tent, selling tea, cof- ilies were left in tent towns like Sandringham, in Melbourne, fee, sugar, candles, tobacco, jam, bottled fruit, cheese, dress while husbands and brothers sought their fortune. These materials and baby clothes. women became known as ‘California widows’, named for the After her sister returned to Melbourne, Martha continued to women who were left behind when their men rushed to the run the store on her own until 1855 by which time social atti- Californian goldfields from Australia in the late 1840’s. tudes towards roles for middle class women were quickly During the mid 1850’s, the 'civilising' influence of women changing as Ballarat became a more settled community.

06 DISCOVERY The new women in mining

The modern mining industry offers many contrasts to the well as an important process in creating role models for More information old days that were characterised by manual labour and women within the sector.” hardship. Now modern technology and machinery has That recognition has led to Mrs Lewis-Gray being invited Elizabeth Lewis- replaced much of the hard, physical work in mining and to join the Prime Minister's working party on growing Gray women are slowly increasing their presence across Australia's technology-based small to medium sized enter- Managing director the industry. prises as well as a host of other national government and Gekko Systems Tel: (03) 5339 5859 In Ballarat one of the pioneers of the modern gold indus- business groups. Fax: (03) 5339 5803 try is Elizabeth Lewis-Gray, Chief Executive Officer of gold Commenting on what women can offer the mining indus- Email: mining processing equipment manufacturer, Gekko try, Mrs Lewis-Gray said, “First and foremost women can [email protected] Systems Ltd. offer the mining industry a softer, relationship-focused www.gekkos.com Gekko was founded by Elizabeth Lewis-Gray and husband business style and image. We can "defuse the testosterone Sandy Gray in 1995 and originally traded as Ground levels" and help seek more WIN/WIN solutions for individu- Developments, producing innovative gold and mineral ore als and the sector. processing equipment. “A lot of it is about being heard and having a voice. In a sense Elizabeth Lewis-Gray is both miner and store- Women are good at listening and are less threatening,” she keeper. With a background in stock broking, finance and said. strategic planning, she was nominated to the Australian “Where there is the potential for aggression and conflict, Businesswoman's Hall of Fame in 2000, and on a daily basis I believe having a woman in the discussions [can] tend to provides Gekko's direction, is involved in raising capital and defuse the aggressiveness. research funding. “Having women around makes the work She recently completed an MBM and has further post- environment more fun and interesting. graduate qualifications with the Australian Securities Female managers improve and Institute. encourage personal expression and “Working in the mining industry is fun, fascinating, development skills,” she said. demanding and often confronting,” Elizabeth Lewis-Gray As the mining industry becomes told Discovery. more automated and less physical at a “Most of all I am drawn by those individuals and teams personal level, women can play bigger who travel and live in distant, often unheard of, locations. roles in machinery operation and in the Invariably these people have a fresh, practical approach to technology side of the mining business. the world and a ‘can-do’ attitude which I admire. “My own career started in the stock broking industry which contains a fairly mono-chromatic group of people. It is also a male dominated area.” Mrs Lewis-Gray said, “The finance sector, while exciting, well-paid and cool, was very "me" focused, with personal success equated with personal wealth. “By comparison, the mining and manufacturing sectors in which we operate are much more team based, with suc- cess reliant on all members. This is a more suitable envi- ronment for me.” Elizabeth told Discovery that during her years at an all girl school, students were taught that, “everything was possi- ble and everyone was expected to achieve their best. We weren't taught to expect discrimination or to look for it. Being treated as an equal was taken as a given.” But while the male-dominated mining industry has provid- ed a real-life awakening, “As a female CEO and entrepre- neur I have been given great opportunities. There is no doubt that these opportunities exist because there are so few women in the mining sector, let alone at CEO level. “The benefits include publicity, support and significant attention from all areas of government and industry. “I appreciate the support and profile that I receive and understand that it is both a recognition of my abilities as

DECEMBER 2004 07