#Official Mining Thread

[Wayno]

Water Saving Initiative - Win-Win

The mine is located 2km south of Kanmantoo google map

Copper mine water deal spares Murray

kanmantoo.jpg (29.4 KiB) Viewed 2247 times

Waste water deal for Kanmantoo mine will spare the Murray

Mining company Hillgrove Resources has signed a contract with Mount Barker District Council in the Adelaide hills to use local waste water for its Kanmantoo copper mine, east of Adelaide.

A 16-kilometre underground pipeline will be built by Hillgrove but owned by the council, which currently pays for a licence to discharge its waste water.

Hillgrove managing director David Archer says the contract is good for the council and for the environment.

"[It] has some tremendous benefits to the local community in the sense that it brings a valuable revenue stream to the council, has some very good environmental benefits - not the least of which being that it means that we have no reliance or requirement for water from the Murray River," he said.

Mr Archer says the pipeline will be built over the next year.

"It means that from a growth perspective in the Mount Barker region that treatment of waste water and disposal of waste water won't be a factor that holds back much of the further development in the Adelaide hills," he said.

[Wayno]

Another SA mine starts production

Yay! some non-RSPT news! Ladies & Gentlemen, we have another operating mine and i'm still expecting a few more mines to start production before the end of 2010! The one below will be shipping ore out of Port Adelaide.

THE first of South Australia's new crop of iron ore miners has started production, with IMX Resources conducting its first blast this week.

IMX Resources has announced that it had blasted about 40,000 tonnes of ore, following four months of overburden removal.

IMX has beaten Centrex Metals and IronClad Mining to become the state's first new iron ore miner since BHP started prospecting around what was to become Whyalla 110 years ago.

IMX is still finalising the site infrastructure at the Cairn Hill mine, 55km southeast of Coober Pedy, and expects to ship its first ore to China in the third or fourth quarter of the year.

IMX managing director Duncan McBain said the process to put the logistics for the operation in place was on schedule.

"The first blast of ore marks another important milestone in the development of the Cairn Hill mining operation and we are very pleased with the progress that has been made to bring the mine into production," he said.

Most of the contracts for the mining services, lease of equipment and transport of the ore to Port Adelaide have been signed, the company said.

"IMX expects to shortly be able to sign the final agreement with Flinders Ports for the provision of port services at Outer Harbour at Port Adelaide, and the contracts for the provision of analytical and shipping services.

"A detailed heads of agreement was signed in May 2009."

IMX will transport its ore from Cairn Hill to a rail siding, where it will be placed in containers for shipping via Port Adelaide to China.

The company is currently waiting for delivery of the containers, which will allow it to start exports.

"Due to the demand for the manufacture of containers in China and the potential delay in the delivery of the containers to Adelaide, the first shipment may be delayed from the end of the third quarter to the fourth quarter," the company said.

"IMX is investigating with (container agent) Cronos how it may be able to speed up the manufacture and shipping of the containers to Adelaide in order to be able to ship in accordance with the original schedule."

The Cairn Hill project is half owned by IMX, with the other half owned by Chinese company Sichuan Taifeng, which is also a substantial shareholder in the company.

IMX has a life of mine agreement with Taifeng affiliate Jilin Tonghua Iron and Steel to buy the production from Phase one of Cairn Hill, and process it in China.

Phase one is expected to produce 7.3 million tonnes of ore at a rate of 1.7 million tonnes per year, and employ about 100 people.

"The immediate upside for Cairn Hill / Mt Woods remains the definition of further resources to support a long term 3-5 million tonne per annum iron ore operation," IMX said.

[UrbanSG]

Haven't posted on here for a while being interstate but the more iron ore finds in SA the better:

Minotaur Exploration has made an iron ore discovery near Broken Hill
CAMERON ENGLAND
From: AdelaideNow June 21, 2010 10:36AM

MINOTAUR Exploration shares jumped more than 36 per cent this morning after the company announced an iron ore discovery near Broken Hill.

The Adelaide company, which was behind the discovery of OZ Minerals' Prominent Hill copper and gold mine also in South Australia, said it had discovered a new magnetite iron ore deposit potentially more than 40km long and up to 124m thick.

The company has so far drilled just two holes into the prospect, with the rest of the discovery based on geophysical data such as magnetic surveys.

Minotaur managing director Andrew Woskett said the results were so far "highly encouraging".

"The individual mineralised units in the magnetised strata are greater than 100m thick and extend continuously along strike for many kilometres," Mr Woskett said.

"There is now a very compelling case to undertake additional high resolution magnetic exploration work and an aggressive drill out program across the tenement - and these schedules are currently under consideration and planning."

Early testwork has shown the ore at the prospect can deliver a concentrate with a grade of 69.3 per cent iron.

Minotaur owns 40.9 per cent of the project with Japan's Sumitomo Metal Mining Ocean owning the rest.

The project is 70km southwest of Broken Hill.

Minotaur shares were 5.5c higher at 22c this morning.

[Wayno]

Haven't posted on here for a while being interstate but the more iron ore finds in SA the better:

Minotaur Exploration has made an iron ore discovery near Broken Hill

MINOTAUR Exploration shares jumped more than 36 per cent this morning after the company announced an iron ore discovery near Broken Hill.

Unfortunately, i believe this ore deposit (named "Mutooroo") is on the NSW side of the border by about 5km

Nevertheless, excitement is growing about this general region (SW of Broken hill) which also pushes into SA territory by 50km or so.

[UrbanSG]

No Wayno I believe it is within the SA border, I checked that earlier.

Here is one of Minotaur Exploration's press releases from today, 2nd page shows the location:

http://www.minotaurexploration.com.au/r ... covery.pdf

[Wayno]

No Wayno I believe it is within the SA border, I checked that earlier.

Here is one of Minotaur Exploration's press releases from today, 2nd page shows the location:

http://www.minotaurexploration.com.au/r ... covery.pdf

yep my mistake, you are correct - good snooping and a quick search of the PIRSA site confirms it ==> http://outernode.pir.sa.gov.au/minerals ... s/mutooroo. Interestingly, it appears this project started as a prospective copper & cobalt mine, and more recently they've discovered substantial amounts of iron ore!

[rhino]

Centrex Metals paid $8 million payment for an Eyre Peninsula iron ore project
CAMERON ENGLAND From: AdelaideNow June 21, 2010 12:00PM

CENTREX Metals will start drilling its Bungalow iron ore deposit on the Eyre Peninsula after receiving the first payment from its Chinese joint venture partner.
Baotou Iron & Steel Group has paid the Adelaide company $8 million to be spent on exploration and scoping studies at the project on the northeastern side of the Peninsula.
Baotou can pay up to $40 million for a 50 per cent stake in the project.
Boutou can earn another 10 per cent by contributing a further $8 million to be spent on exploration and a feasibility study, and a stage three payment of $24 million, to be spent on a bankable feasibility study, would bring it to 50 per cent ownership.
Centrex said yesterday that the finalisation of the Bungalow deal was a "significant milestone".
"The joint venture now aims to commence the Stage 1, 8000m resource definition drilling program in the coming weeks with associated scoping studies to follow soon thereafter," the company said in a statement.
"Following the successful completion of Stage 1, the Stage 2 pre-feasibility study is scheduled to commence in mid-2011 followed by the Stage 3 bankable feasibility study in late 2012."
Centrex is also in the final stages of negotiating a deal with Wuhan Iron and Steel Corporation (WISCO), worth up to $271 million.
The deadline for that deal, which also relates to projects on the Eyre Peninsula, has been extended to the end of this month.
Centrex said last month that WISCO had moved five staff to Adelaide to work on finalising the deal, and had transferred funds to Australia to be paid subject to it going through.
All deals have been approved by the Foreign Investment Review Board.

[fabricator]

http://www.adelaidenow.com.au/news/sout ... 5883774674

VHERITAGE in SA and around the world is inextricably tied up with Burra. It was there that a conference of heritage experts (ICOMOS) put together the rules that guide heritage protection in Australia. The rules have been widely adopted overseas.

How ironic it is that the heart of the Burra heritage story is the historic Monster Mine, and that the State Government is now deciding whether to overturn the mine's heritage listing.

It seems nothing is sacred in this state when it comes to mining. Phoenix Copper company wants to dig down below the mine in search of more copper, and possibly gold.

Like Marathon at the priceless Arkaroola wilderness, Phoenix is simply looking at this stage.

These are small exploration companies each with a few employees hoping for a lucky strike at the cost of a bit of public opprobrium.

The rugged beauty of Arkaroola in the Gammon Ranges and the historic infrastructure and mine at Burra just happen to be in their way.

Phoenix applied for a "variation of proclaimed area" which basically means getting rid of the heritage protection that so many people spent so long putting in place.

Mining Minister Paul Holloway and the State Government should simply say "go jump" but instead Phoenix and Marathon put the entire over-strained and volunteer heritage protection community through the mill of having to re-start campaigns they believed were well and truly won. This is a fatal flaw in our heritage legislation.

The Burra copper discovery changed copper mining in the 1840s and 1850s just as Roxby is changing copper mining today.

The Burra ICOMOS charter was all about preserving heritage, but it also provided principles for the adaptation of heritage assets to new tasks.

South Australia's only industrial diving school moved to the permanent 40-metre-deep waters of the flooded Monster Mine in search of the right operating conditions, and has provided a modern use for the old mine that does not detract from its heritage.

The Underwater Training Centre would go, but so would the mine, and possibly the historic ruins as well. The whole rationale of the Burra tourism industry would be undermined, along with the town.

Public submissions close on June 25.

* ICOMOS stands for the International Council of Monuments and Sites.

* The Burra Charter was adopted by ICOMOS in 1979.

* Aside from its open-cut and tunnel workings, the mine site has 11 listed heritage structures.

Plus the usual ANTI posts in the comments section of news limited's site.

Gold and copper are worth an absolute fortune, with that money and old buildings can be save or moved. Hell the town could have a real population again.

[iTouch]

I read somewhere that Burra used to be the "newcastle" of Australia in terms of population, in the 1800's

[Wayno]

I read somewhere that Burra used to be the "newcastle" of Australia in terms of population, in the 1800's

indeed! and SA was near bankruptcy (circa 1840) when copper was discovered at Burra (and Kapunda slightly beforehand). It's population at the time grew to be greater than Brisbane & Perth combined!

Read more here ==> http://www.visitburra.com/History_of_Burra/

[Wayno]

i hope this sale goes quickly - a few hundred jobs will be created once the Carrapateena copper mine proceeds. Being adjacent to ODX is a plus as well.

AdelaideNow

A DECISION on the sale of a multi-billion-dollar mining project in the state's Far North could be made as early as next month.

A rumoured six bidders have been selected from strong international interest for the Carrapateena copper and gold deposit in the state's Far North.

The project is likely to cost at least $2 billion to develop, and has attracted "huge interest" from around the world.

While the Federal Government's proposed resource super profits tax (RSPT) caused some uncertainty amongst bidders, the project was of such a quality that its advancement was not at risk.

"The problem with the (tax) uncertainty was an issue," one source said.

"But Carrapateena's such a good deposit that it's going to get developed - it's not really a marginal project. Things are progressing quite well, we're into the final stage."

The short-listed bidders were taken on site visits at the project, which was discovered by Adelaide prospector and metallurgist Rudy Gomez.

Mr Gomez put his own money on the line to drill two holes at the site, about 100km southeast of the Olympic Dam copper/gold/uranium mine.

Mr Gomez said the RSPT was a "big downer", but hoped that new Prime Minister Julia Gillard's move to negotiate with the mining industry on the proposed tax would resolve the issue.

"Not all mines are equal. There are some mines like the Western Australian iron ore mines and the coal mines in Queensland where they just dig it out of the ground and ship it, as compared to something like Carrapateena which you have to mine at 1500m below the surface."

The State Government, through its PACE program, co-funded the initial exploration drilling, which in 2005 returned a phenomenal intersection of 70m at 3.03 per cent copper and 0.4 grams per tonne of gold.

Canadian company Teck came on board in late 2005, but has decided to put the project on the market

It is understood Teck owns a one-third stake in Carrapateena, with Mr Gomez's company, RMG, retaining the rest.

The capital cost for the mine would be up to the final bidder. However the mine would be deep underground - starting at depths of about 500m - meaning it would be an expensive project to develop.

Final bids are expected to be received next month.

[rhino]

Things are sounding good for Carapateena! Any idea what the life of the mine would be? Are we talking permanent, like Roxby Downs (over 100 years)?

[rhino]

Good news from Lower Eyre Peninsula:

Lincoln Minerals could start mining at Gum Flat iron ore project in two years
Cameron England From: The Advertiser June 23, 2010 1:31PM

LINCOLN Minerals could start mining its Gum Flat iron ore deposit near Port Lincoln within two years.
In an update to the Australian Securities Exchange, the Adelaide company said it was targeting a 500,000 tonne per year direct shipping ore operation within two years, with scope to expand.
The mine would cost $40-$50 million to build, and would produce an estimated margin of $45-$55 per tonne before tax, based on preliminary figures from a scoping study being done by the company.
The company has estimated its costs at about $16 per tonne if it ships its ore out through Port Lincoln, or $26 per tonne if it goes out through a proposed bulk commodities port to be built by Centrex Metals at Sheep Hill.
Late last year Centrex won State Government approval to export 1.6 million tonnes of iron ore per year through Port Lincoln for a period of 10 years.
That approval was limited to ore from Centrex's Wilgerup deposit however and limited to a mine life of 10 years.
Lincoln has indicated in the past that it too would see approval from the State Government to export through Port Lincoln.
The company believes the operation will be cashflow positive after one year.
Lincoln signed an offtake agreement with Jiangyin Huaxi Steel Company in April this year, committing the Chinese company to buy at least half of the Gum Flat production for up to five years.
Earlier this month Lincoln almost doubled the resource at Gum Flat to 103 million tonnes.
The deposit is just 20km from Port Lincoln.


If the resource is 103 million tonnes, and they are shipping 500,000 tonnes a year, that's a 206-year mine life, isn't it?

[Wayno]

Things are sounding good for Carapateena! Any idea what the life of the mine would be? Are we talking permanent, like Roxby Downs (over 100 years)?

We're talking multi-decade lifespan here. Carrapateena is estimated to hold 4.4 million tonnes of copper, 6 million ounces of gold and 225 million pounds of uranium, as well as haematite iron ore and rare earths. I suspect the chinese will want to buy it (which in turn will require Wayne Swan to approve via the FIRB).

Here's how Carrapateena stacks up globally - a fraction of the size of ODX (which is freakin' massive) but still enormous:

carrapateena.JPG (139.92 KiB) Viewed 2126 times

[skyliner]

Thaks Wayno, overviews like this are extremely helpful for perspective . V exciting. The mines are still coming despite the threatened 405 tax, which, I understand stops state royalties in the process. (I may be wrong as my source is not that reliable. Does provide a way out for the Feds though.)

SA - STATE ON THE MOVE