#Official Mining Thread

[mattblack]

University of Adelaide has a drill site?

[Wayno]

University of Adelaide has a drill site?

it's a research project - collaborative effort to better understand the geodynamics of the Fowler Domain. In summary - better understanding = more potential mines. Mainly nickel mines in this case...

http://www.adelaide.edu.au/cerg/opps/fowler_domain.html

The Gawler Craton in southern Australian remains a poorly understood component of the Australian Precambrian lithosphere. However while tectonic models for the evolution of the Craton are still in their infancy, there is a growing awareness that plate tectonic-style processes are likely to have played a central role in the assembly and growth of this proto-continental domain. Together with the Department of Primary Industries and Resources South Australia, a time-space model is being currently built for the evolution of the Gawler Craton, and have identified a number of key systems that define the processes that shaped its evolution. One of these systems is the Fowler Domain, which dominates the geophysical expression of the Western Gawler Craton.

The Fowler Domain is significant for two reasons:

Firstly it is highly prospective for nickel, which is currently the focus of intense interest from Minerals Industry. It includes voluminous dense, magnetic and intermediate to ultramafic rocks overlain by thin Tertiary sands and recent sand dunes. Limited drilling has identified primitive gabbro and altered chromite-bearing ultramafic rocks. Although the region is of intense interest to Ni explorers, work is hampered by the thin cover and our lack of understanding of Ni cycling through the regolith .

Secondly recently published tectonic models suggest that the Fowler Domain represents the collision zone between Archaean components of the Western Australian Shield and the Gawler Craton. At present there is no information regarding the geochemical or isotopic evolution of the Fowler Domain lithosphere, age or style constraints on the tectonism.

In 2007, a drilling program in the Fowler Domain, in partnership with the State Government is being conducted by The University of Adelaide, so the student who chooses to do this project will be undertaking true exploration drilling.

This project will use isotopic and geochemical tools to evaluate the origin of the voluminous mafic rocks in the Fowler Domain and the provenance (source) of the interlayered metasediments. The data will be used to develop a palaeo-tectonic model that describes the pre collision configuration of the Gawler Craton, and the implications for mineralisation. The project follows on from earlier work we have done in the Fowler Belt which is soon to appear in the Journal, Precambrian Research. The project forms part of a larger program underway to constrain the tectonic evolution of the Gawler Craton.

The project outcomes will provide the first constraints on the tectonic evolution of the Western Gawler Craton, and be of significant interest to both the Minerals Industry and Research Communities. Students will gain a strong grounding in large-scale integrated tectonic analysis in an economically high profile region. This will provide an ideal basis for moving into industry, or pursing further research.

http://www.adelaide.edu.au/cmxuc/resear ... _belt.html

This project is a collaboration between the Centre for Mineral Exploration Under Cover and the Continental Evolution Research Group, within the University of Adelaide. It is jointly funded by the ARC Linkage collaborative project 'Developing a Tectonic Framework for the Gawler Craton: Paving the Way for Successful Mineral Exploration' and the PACE Drilling proposal (PIRSA).

The project aims are to better understand the broad architecture of the Fowler Belt, its cover rocks and its mineral potential (specifically magmatic-Ni). The project was awarded funding in PACE Round 4 to conduct drilling in the Fowler Belt of western Gawler Craton in 2007. Unfortunately the project has been the subject of numerous delays including a) difficulties in accessing a drilling rig, b) reassessment of the program due to access issues and, c) delays in applying for aboriginal heritage clearance. As a result the drilling program did not take place in 2007. These issues are now in hand, with a drill rig becoming available and steps in place to conduct an aboriginal heritage clearance survey in early-2008

Associate Professor Martin Hand and Professor David Giles have submitted a modified version of the proposal to PACE Round 5. The proposal includes aircore and diamond drilling along a pre-existing exploration track which provides a cross section through the central part of the Barton Domain of the Fowler Belt.

[Wayno]

Another Hot Rocks project gets serious funding...

This is great news. The hot rock industry is certainly becoming well respected!

http://www.news.com.au/adelaidenow/stor ... 55,00.html

PETRATHERM has received a large boost with TRUenergy committing to invest $57 million for a 30 per cent stake in its Paralana geothermal project.

Petratherm shares surged 17 per cent to 76c at 1200 AEST.

Adelaide-based Petratherm said Chinese-owned TRUenergy would initially contribute $6 million towards the drilling of two deep geothermal energy wells, for a 10 per cent stake in the project in the northern Flinders ranges.

It would then have the option to earn another 5 per cent by contributing $7 million towards the development of a 7.5 megawatt (MW) pilot plant, which would be able to supply power to the nearby Beverley uranium mine as early as mid-2010.

The final 15 per cent would be earned through the contribution of $44 million towards a 30MW demonstration plant.

TRUenergy supplies gas and electricity to 1.3 million homes and businesses in Victoria, South Australia and New South Wales and also generates electricity in SA and Victoria.

TRUenergy managing director Richard McIndoe said the company had committed close to $1 billion to expand its renewable and clean energy generation portfolio.

This included a $292 million development agreement with photovoltaic cell maker Solar Systems to develop a 154 MW solar electricity plant in Victoria.

"The strategy has been to look at what we consider to be the leading renewables companies in the marketplace to try and bring TRUenergy's marketing capability and other capabilities as a major energy generator and retailer to the table,'' Mr McIndoe said.

"We particularly like this project because not only is the technology really exciting in terms of future potential, but also the partners, Beach Petroleum, and what they bring to the table in terms of drilling capability and obviously Petratherm's own technical capability and the management team there make it a very strong and compelling investment case for us.''

Petratherm managing director Terry Kallis said the company had been looking for complementary business partners.

"That's what we have with Beach Petroleum sub-surface and basically getting us through to market with TRUenergy, through the generation, transmission and marketing into the national electricity market.

"All the key ingredients are right there for the project now.''

Last year Beach Petroleum committed up to $30 million to the Paralana project in return for a stake of up to 36 per cent.

The TRUenergy deal is dependent on Foreign Investment Review Board approval.

Here's how the royalties system operates for geothermal projects

In summary we get 2.5% of the value of the electricity generated:
http://www.pir.sa.gov.au/geothermal/inv ... s_and_fees

The following royalty provisions apply to the exploration and production of geothermal energy:

• * Royalty on geothermal energy is 2.5% of the wellhead value.
  * The value at the wellhead of geothermal energy is calculated by subtracting from the price (exclusive of any GST component) that could reasonably be realised on sale of the energy to a genuine purchaser at arms length from the producer, all reasonable expenses (exclusive of any GST component) reasonably incurred by the producer in getting the energy to the point of delivery to the purchaser.
  * The value at the wellhead of geothermal energy is to be assessed by the minister.
  * The minister may, on application by the producer, or on the minister’s own initiative, review and revise an earlier assessment of the value at the wellhead of the geothermal energy

[monotonehell]

You have to pay royalties for mining heat? Next they'll be charging royalties on solar collectors!

[Wayno]

New Interview with Nortec Ventures Corp.

That Finland is an excellent place for exploration companies, shows Scandinavian Minerals, which has been taken over by First Quantum earlier this year. Another Canadian exploration company which operates in Finland, very close to the Scandinavian Minerals property, is Nortec Ventures Corp .. Nortec also owns promising projects in Labrador/Canada and Ecuador. We spoke with Nortec Venture’s President Mohan R. Vulimiri about the prospects of his company and we met a very considerate and honest CEO.

Hi newzealaender, excuse my ignorance, but how does this relate to South Australia?

[Wayno]

With Money Comes Respect, My Friend...

Another fringe benefit of the mining boom...

http://www.impactpub.com.au/micebtn/ind ... &Itemid=49

South Australia strikes it rich with IAGOD conference
Tuesday, 05 August 2008
South Australia has staked a claim as a major player on the world's mining stage winning the right to host a significant mineral deposit geology conference in 2010.

The International Association on the Genesis of Ore Deposits (IAGOD) conference is expected to attract about 550 delegates with more than half coming from Europe, North America and the Asia Pacific region.

“This is a significant win both for the Adelaide Convention Centre and South Australia as a whole,” said Adelaide Convention Centre chief executive Alec Gilbert. “South Australia’s reputation as a mining powerhouse continues to grow and this conference reinforces our status opening up new opportunities and allowing us to once again showcase our expertise in hosting prestigious, international events.”

IAGOD secretary general Nigel Cook said South Australia’s world-class mineral deposits made Adelaide the obvious choice for the conference themed Giant Ore Deposits Down Under.

“We are looking to consolidate our membership in the Asia Pacific region and have no doubt that this conference will help us to achieve this,” said Professor Cook. “We were impressed with the Centre’s facilities and have no doubt this event will be an outstanding success.”

A number of field trips have been organised for delegates including visits to South Australian mines Olympic Dam and Prominent Hill, trips to opal fields of the Great Artesian Basin and the mines of western Tasmania as well as a pre-conference trip across New South Wales and into South Australia’s Olary Province, Flinders Ranges and the historic Burra Copper Mine to Adelaide. Delegates will also enjoy a behind-the-scenes visit to the South Australian Museum, a tour of Penfold’s Magill Estate Winery (the spiritual home of Australian wine icon Grange) as well as a visit to the Adelaide Conservatorium of Music and historic Hahndorf village in the Adelaide Hills.

Hopefully most delegates bring their families, and their wallets

[Wayno]

Yet Another Uranium Mine

I get the feeling we will have HEAPS of moderate-sized uranium mines popping up all around SA. The feasibility study time for a new mine is typically only 3-4months, with many years of production starting soon after...

Strongbow Resources, a uranium exploration and development company, through its CEO Darren Hayes, today announced that it has received government approval to immediately commence drilling a series of 20 exploratory test holes at Cameron's Corner. The Cameron's Corner area, located on the border of Queensland and New South Wales in Southern Australia, is an area where Uranium, Gold, Copper and Coal are all viable targets. The drilling of the 20 holes is estimated to take under a month.
Darren Hayes, CEO, stated, "The Strongbow Tenements are known to host extensive paleochannels. Airborne radiometric mapping has shown areas of enhanced uranium associated with these paleochannels. The holes will be radiometrically logged, and samples of any radiometrically anomalous zones taken for chemical testing. It is expected that these holes will delineate the most prospective areas and focus further drilling."

The above article is abridged for S-A readers. Full article online here => http://www.marketwatch.com/news/story/s ... &dist=hppr

[paul]

by Wayno on Fri Aug 01, 2008 10:00 am

paul wrote:
Why on earth is this company (Western Plains Resources) based in Sydney and not Adelaide? It's sole business is South Australian iron ore. I'd like to see the State Government pushing these mining companies to ensure the broader corporate jobs from mining activity don't bypass SA. It's our iron ore damn it!!!
I would not get too hung up here. This is simply the reality. The more mines in SA the merrier in my opinion, and we should not prejudice against their HQ location (although having their office located in SA is obviously better).

To be clear we still get all royalty payments, and the majority of jobs are here too (on site mining activities).

I can't say that I entirely agree that the majority of the jobs are on-site. Mining companies soak up enormous resources planning and developing mines and the associated infrastructure, not to mention the corporate functions covering treasury and finance, law, hr etc. And if a resources company is based in Adelaide these corporate functions are multiplied in their complexity. I've lost count of the friends and colleagues that have moved interstate to further careers in corporate roles. In my view, if these tasks are not done out of SA (ie. mine planning, and corporate administration) we'll only be getting half the benefits of the mining boom.

Newmont mining packed up and left Adelaide for Perth because the yanks who own it wanted to be based in the 'home of mining'. I think the challenge for Adelaide is to present ourselves as a genuine corporate centre. A CBD that 'looks the part' is crucial to this in my view (so hurry up and raise those height limits!)

[Wayno]

Good news for the Jacinth-Ambrosia mineral sands mine

This operation will deliver $4m-$7m of royalties per year from 2011 (plus 100s of jobs, and other spin off benefits)

http://www.news.com.au/adelaidenow/stor ... 55,00.html

ILUKA Resources has received early works approval, allowing it to start building its $420 million Jacinth-Ambrosia mineral sands mine in the state's west.

The company said it can now begin construction of roads, site accommodation and airstrip, as well as establishing power and water supply corridors. ``The early works approvals is the first approval that enables Iluka to undertake site works,'' the company said yesterday.

Iluka plans to start mining by mid-2010, with full production of about 300,000 tonnes of zircon per year from 2011.

Common Uses for Zircon (from wikipedia)

Zircons are commercially mined for the metal zirconium, and are used for abrasive and insulating purposes. It is the source of zirconium oxide, one of the most refractory materials known. Crucibles of ZrO are used to fuse platinum at temperatures in excess of 1755oC. Zirconium metal is used in nuclear reactors due to its neutron absorption properties. Large specimens are appreciated as gemstones, owing to their high refractive index (zircon has a refractive index of around 1.95, diamond around 2.4).

Wife: "oooh - a gift for me - what is it?"
Husband: "it's a new ring for you, to celebrate our anniversary"
Wife: (opens box) "oooh - it's so big, is that really a diamond"
Husband: "Err, yeah - of course it is my darling"

[Ben]

New name for thread:

Wayno's Mining Thread

[Wayno]

New name for thread:

Wayno's Mining Thread

yes - i must confess, i like big holes in the ground. As a child i dug a massive hole in my backyard (down behind the shed) over a period of several weeks . My dad freaked when he saw it. I'm still not sure why i did it

[Jim]

From the Advertiser

THERE is speculation that the Nyrstar zinc and lead smelter at Port Pirie will close after all staff were called to a meeting this morning.

The ABC is reporting that hundreds of workers and union representatives are attending a meeting at the smelter.

There has been concern that the operation will be moved interstate.

More than 100 people are employed by Nyrstar at Port Pirie.

Zinifex shareholders approved an agreement last year to merge smelting assets with Belgian company Umicore, creating Nyrstar as the new company.

[Professor]

Interesting call for expressions of interest in todays Crapvertiser business section, page 54.

BHP are looking for around 2,000 new houses of 2-4 bedroom and 2,000 single bedroom accommodation, to be built at Roxby Downs. That's 4,000 new "properties", which at an average of maybe $400,000 each (considering the expense associated with the distance etc) is over $1.5b.

Great to see some movement at last on Roxby and the ODX.

[skyliner]

Permission to scrawl on Wayno's thread.

Tends to suggest something may happen in Oct.Appears like a population increase of about 5000. (Given the two bedroom houses'). Average per house is, I think,about 2.7 in Aust. now. But this is a mining community and probably won't attract a lot of families to live there. Looks positive - am anticipating good news.

SA - STATE ON THE MOVE

[Wayno]

From the Advertiser

THERE is speculation that the Nyrstar zinc and lead smelter at Port Pirie will close after all staff were called to a meeting this morning.

The ABC is reporting that hundreds of workers and union representatives are attending a meeting at the smelter.

There has been concern that the operation will be moved interstate.

More than 100 people are employed by Nyrstar at Port Pirie.

Zinifex shareholders approved an agreement last year to merge smelting assets with Belgian company Umicore, creating Nyrstar as the new company.

Can't say that i understand the motivation here. The speculation is the move will be to Tasmania?!? what the...

Can you imagine the reaction from the Tassie Greens! A huge smelter in the wilderness might as well put it next to Gunns proposed pulp mill!!