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Re: The Mining Thread

Posted: Fri Oct 19, 2007 2:05 am
by Cruise
Contrary to all rumours the average age of a mother is not 15 in Elizabeth,

Contrary to all rumours you can walk to the shop without being shot, mugged, raped several times in Elizabeth,

Contrary to all rumours the average family does not consist of 15 children in Elizabeth,

Contrary to all rumours Jimmy Barnes songs are not played in every house, car, school etc etc in Elizabeth,

Contrary to all rumours not everyone drives an 80's model commodore in Elizabeth,

Contrary to all rumours the main source of income for people in Elizabeth is not Centrelink,

Contrary to all rumours not every man in Elizabeth is an alcoholic wife beater,

Contrary to all rumours the far southern suburbs are proberly just as bad (just because there near a beach doesnt make them better people)

And contrary to all rumours crime does actually exist in the eastern suburbs!!!

I could keep going but am going to stop now
Thank you for listening to my rant

Re: The Mining Thread

Posted: Fri Oct 19, 2007 2:30 am
by Norman
Cruise Control wrote:Contrary to all rumours the average age of a mother is not 15 in Elizabeth,

Contrary to all rumours you can walk to the shop without being shot, mugged, raped several times in Elizabeth,

Contrary to all rumours the average family does not consist of 15 children in Elizabeth,

Contrary to all rumours Jimmy Barnes songs are not played in every house, car, school etc etc in Elizabeth,

Contrary to all rumours not everyone drives an 80's model commodore in Elizabeth,

Contrary to all rumours the main source of income for people in Elizabeth is not Centrelink,

Contrary to all rumours not every man in Elizabeth is an alcoholic wife beater,

Contrary to all rumours the far southern suburbs are proberly just as bad (just because there near a beach doesnt make them better people)

And contrary to all rumours crime does actually exist in the eastern suburbs!!!

I could keep going but am going to stop now
Thank you for listening to my rant
:lol:

I'll pay that...

Re: The Mining Thread

Posted: Fri Oct 19, 2007 5:23 pm
by Pistol
Is this a mining thread???

Re: The Mining Thread

Posted: Sat Oct 27, 2007 6:06 pm
by skyliner
Ditto - this is a potentially arresting cutting edge info site - for me I always look here - the minng boom outflows to the city obviously will be massive - I follow this in the Financial Review as well. (A more reliable paper than most and gives interstate perspective as well).

I have taken people to this thread as a kind of showpiece of S.A.

ADELAIDE - A CITY ON THE MOVE

Re: The Mining Thread

Posted: Fri Nov 02, 2007 9:03 am
by rhino
Does anyone know what effect the zircon mine is having on Mindarie in the Mallee? How many people are employed at the mine and the plant? Has it made an impact on the town, apart from more trains coming through? I don't know much about the scale of mineral sand operations.

Re: The Mining Thread

Posted: Mon Nov 12, 2007 5:02 pm
by Will409
Found this link on Railpage (link courtesy of member 9034) which you may find good reading about the Peculiar Knob mine. There is also potential for another mine to come online also at Hawk's Nest. All this stuff from Peculair Knob will be railed to Whyalla from Wirrda Siding while the proposed mine at Hawk's Nest will be more then likely railed from Gina Siding. Both sidings already exist. A new baloon loop will be built at both Whyalla and Wirrida.

http://www.asx.com.au/asxpdf/20071112/p ... fjsrr9.pdf

Re: The Mining Thread

Posted: Tue Dec 04, 2007 11:01 am
by Howie
Cooper Energy Announces Discovery in South Australia
http://www.oilvoice.com/n/Cooper_Energy ... 91faa.aspx
Monday, December 03, 2007

After completing the well evaluation Cooper Energy can confirm that Parsons is an economic new oil field discovery. Parsons-1 is located approximately 9 km west-northwest of the Christies Oil Field and 8km west-southwest of the Callawonga Oil Field in PEL 92.

Wireline logging has confirmed a 12 metre gross continuous oil column in Parsons-1. The logging demonstrates that there is approximately 10 metres of good quality net reservoir. The oil-water contact for the Parsons Oil Field is evaluated from logs and pressure measurements to be at 1,276.5 metres TVDSS.

After casing the well and running a completion, the clean-up production rate was 3,362 barrels of oil per day, which demonstrates the high productivity of the Namur Sandstone Formation in PEL92.

Assuming that a similar production capacity from the permanent facilities is possible, this could add over 800 barrels of oil per day to Cooper Energy’s production levels, which is expected to commence around the end of the March 2008.

The recoverable oil estimates are classified as per Cooper Energy’s Recoverable Hydrocarbon Guidelines and have been prepared by competent and experienced personnel. These are 100% Joint Venture recoverable oil volumes and Cooper Energy is entitled to 25% of these volumes.

The undeveloped recoverable oil category pertains to a second crest on the Parsons structure, which will probably be a target for development drilling in 2008.

The Parsons discovery has extended the Cooper Basin oil play fairway further to the west and there are a number of structures that are adjacent to and outboard from Parsons. The PEL92 Joint Venture will now evaluate these targets for potential exploration drilling in 2008.

Forward Plans
The Hunt-2 Rig will be released from the Parsons-1 location in the next few days. The Parsons-1 well has been suspended as a future oil producer and is now awaiting the installation of on-site oil production facilitates so that it can commence production.

The forward plan for the Parsons Oil Field and PEL92 is:
1. Secure Government approvals from an extended production test.
2. Install on-site production facilities to produce and hold oil production volumes (Jan-Mar 2008).
3. Install a flowline from the Parson-1 wellhead to the on-site production facilities to enable production (Feb-Mar 2008).
4. Commence Parsons Oil Field production (around end March 2008).
5. Review the economic attractiveness of constructing a 9 km flowline to connect Parsons to the Callawonga flowline. If the flowline is demonstrated to be economic and approved by the Joint Venture then initiate design, procurement and construction of a Parsons to Callawonga flowline (expected to be operational around mid 2008).
6. Identify targets for 2008 exploration and development well drilling.

Re: The Mining Thread

Posted: Tue Dec 04, 2007 11:27 am
by rhino
Was Parsons one of Beach Petroleum's old tennements? It sounds like it - their tennements had names like Christies, Sellicks, etc, and this one is quite close to Christies.

Re: The Mining Thread

Posted: Mon Dec 10, 2007 1:06 pm
by Howie
Stockmarket Watch Site Egoli had an article a couple days ago on the mining boom here.
http://www.egoli.com.au/egoli/egoliStor ... StockIdeas




South Australia- Riding the Boom

7/12/2007 By: Geoff Muers

South Australia: Riding the BoomOne state outside of Western Australia which is optimistic about the future of the mining industry, is South Australia, where minerals projects currently being developed or planned, are anticipated to amount to a 100% increase in export earnings over the next seven years, and that is just the start according to Executive Director of Primary Industries and Resources (PIRSA) Paul Heithersay.

Annual exploration spending in the state has increased 800% in the last five years to around $260m, and judging by the record number of attendees at the packed SA Exploration conference last Friday, the enthusiasm is showing no signs of abating.

Last week we had the pleasure of accompanying the Sydney Mining Club on a tour of a number of projects, jointly arranged with volunteers of the local Historical Aircraft Restoration Society (HARS). Sponsored and hosted by a number of mining companies, we visited a number of projects throughout the state.

First day was a visit to projects comfortably located within driving distance of Adelaide, all which enjoy good proximity to infrastructure, without the need to build camps and fly-in workers. There is a clear cost advantage here compared to more remote operations.
First stop on the tour was Australian Zircon’s (AZC) newly commissioned Mindarie project located a couple of hours drive north-east of Adelaide. Delivered on time and budget, the $80m operation plans to extract up to 40ktpa of zircon and other products.

The official opening, originally scheduled to coincide with our visit, had to be postponed at the last minute, however the site is already operational, employing dozens of local workers.

Hillgrove Resources- Kanmantoo Copper Project

Hillgrove Resources (HGO) are planning to re-develop the Kanmantoo copper mine where a resource of [email protected]%Cu and 0.2g/t Au has been established around the pit previously operated by CRA in the 1970’s.

Located close to the town, the mine appears somewhat environmentally constrained, with full feasibility due for completion in coming months. The operation plans to mine around 2mtpa initially, producing up to 20ktpa of copper and 6koz of gold plus silver.

Hillgrove’s current market capitalisation almost entirely consists of their 39% stake in Eastern Star Gas (EAS), which may prove a ready source of funds provided a buyer can be found. Exploration potential in the region appears good, and mostly not followed up due to concentration on the open pit resource.

Terramin Australia (TZN) – Angas Zinc Mine

With all the industry talk of budget blow-outs and delays, another South Australian mine currently on track is Terramin’s Angas mine, near the town of Strathalbyn in the Adelaide Hills. Strict environmental controls, including double lining of the tailings dam, ensure minimal impact on the close neighbours.
The decline is underway, with construction at full belt towards first concentrate production in 2008. The mine aims to produce around 30ktpa of zinc, 10ktpa of lead and 400kozpa of silver. Unusually, the mine will produce a copper-lead concentrate, and enjoy high payability for the 5g/t gold in concentrate expected.

The relatively low-cost operation should provide welcome cashflows as Terramin looks to develop the huge Tala Hamza resource in Algeria.

The next day we strapped in, army-style, aboard two WWII Dakotas for the 2.5hr flight to our next mine. Meticulously restored and maintained by retired pilots and associates at Albion Park in NSW, the planes are available for groups at low cost for special events.

Dominion Mining (DOM) – Challenger Gold Mine

We flew to the remote Challenger mine near the WA border, where Perth-based Dominion mining (DOM) has taken many in the industry by surprise over the last year or so with the performance of the high-grade underground operation.

We soon found out why, with the underground conditions very favourable and with no water, stable ground, very little roof support is required, except in the immediate ore blasting zone and even then mainly for psychological reasons we are told.

The thick, high grade ore is quartz-rich, blasts easily with no dilution and positive grade reconciliation. In the hinge zone we visited, grade is up to one ounce per tonne (annual average almost 10g/t ore feed) with 60% of the gold reporting to gravity circuits.
The relatively small, 75tph processing facility delivers over 100kozpa, with potential to produce up to 150kozpa with minor alteration to facilities.

New ore zones are being discovered, with the resources of 1moz likely to grow significantly, potentially towards 2moz.

What impressed many on the trip was the enthusiasm of the staff, and their excitement about their work. No doubt they have shares in the business, and with a cash cost below $350/oz, last years profit of $52 million could well be exceeded in coming years.

Oxiana (OXR) – Prominent Hill copper/gold mine

Construction is in full swing at Oxiana’s Prominent Hill mine, with accommodation for 1,000 people to grow to 1,300 or more for the peak construction phase commencing early in the new year.

First ore has apparently been uncovered in the pit ahead of schedule, with the foundations for the huge gyratory crusher and SAG/Ball mills currently being prepared.
First production is scheduled for later in 2008, which should be in time to take advantage of high prices for gold and copper.

We inspected some of the drill core, which is being recovered from deep drilling (up to 2km) below the current open pit limit. Recent intersections of well over 100m at >1.5%Cu and 0.5g/tAu are likely to be repeated as a substantial underground resource evolves.

Current reserves are [email protected]% Cu and 0.58g/t Au, and in our view another 100mt won’t be a significant challenge, with the large amount of bornite and chalcocite ensuring low-cost processing and high-grade concentrates.

Either side of the pit, thick economic zones are reported, which may extend the life of the open cut whilst a concurrent UG operation is examined.


BHP Billiton – Olympic Dam

Last-minute schedule changes meant we were unable to make it on the ground at Olympic Dam, however a lot is gleaned from flying over the massive site.


A small (compared to what they are planning) open cut is being constructed, and we could see the scale of the pattern drilling undertaken to justify a $5 billion expansion of operations.

Why go anywhere else? You may ask, when you have one of the largest resources of uranium, copper and gold in the world and billions of dollars in existing infrastructure at your disposal.

Marathon Resources (MTN) – Mt Gee

Staying at the Arkaroola resort near Leigh Creek you get a feel for the challenges that lie ahead for Marathon (MTN) in developing the large Mt Gee uranium deposit (43mt@630ppm U308).

The terrain is steep and spectacular, where many pioneering geologists including Sir Douglas Mawson cut their teeth in the surrounding hills.

The area was extensively drilled in the 1970’s by Exoil in the vicinity historical uranium mining. The deposit is situated in a Class A environmental zone, and therefore subject to the Federal Government’s EPBC Act, however is well outside the National Park to the south.

MTN is making a determined effort to address concerns, with an environmental manager on-site and a large number of staff overseeing drilling operations with two rigs active when we visited.

The company is considering establishing a processing plant out on the plain near the Beverley mine and is examining options for locating a decline, as it progresses feasibility work.

The deposit is situated in close proximity to the Four mile deposit of Heathgate resources and Alliance Resources (AGS), and the area is becoming a uranium district with further exploration success and expansion of mining areas likely in the region.

Alliance Resources (AGS) – Four Mile

The first thing you notice about Beverley uranium mine is the small, inconspicuous size of the site. From the air, the most obvious surface expression is the airstrip.

For a facility producing up to $200 million worth of uranium every year, the operation seems quite simple: pump a slightly acidic solution into the ground, run it through a series of small ponds and tanks, and recover the metal in powdered form ready for export.

Four Mile is the name of the deposit located near the foothills, and 25% owned by ASX listed Alliance Resources (AGS). With resources depleting at nearby Beverley, privately owned Heathgate Resources (Quasar) appears keen to bring Four Mile into production ASAP.

A field leach trial is planned to commence soon on the eastern prospect, to determine the best way to process the ore. An existing resource of 15,000t of contained uranium has been established at Four Mile West, with a resource estimate due in coming months on the eastern part of the deposit.

The overall area is quite prospective, and more high-grade deposits may be found in time.

Re: The Mining Thread

Posted: Fri Dec 14, 2007 3:30 pm
by rhino
Another Uranium deposit has been discovered, this time on Eyre Peninsula.
From Thursday's Australian:

UraniumSA makes 'discovery of a lifetime'
Kevin Andrusiak | December 13, 2007


MINING minnow UraniumSA believes it has made the discovery of a lifetime after stumbling on an in situ leachable uranium deposit on the remote Eyre Peninsula in South Australia.
Shares in the $10 million company jumped 67 per cent after it said it had found the "unusual" deposit near Whyalla with grades averaging about 0.015 per cent.
While the grades were not high compared with more favoured domestic deposits of yellowcake, UraniumSA said the shallow, flat bed-style deposit made it suitable for leaching without any extraction.
In a bonus, the company believed there was a good chance the prospective area could extend 12km to the north and 5km to the south of an area already drilled by the company, just down the coast from Whyalla. Intercepts in the two main discovery holes returned mineralisation as wide as 1.92m.
While the geology of the system is largely unknown, the lateral continuity of the host rocks and uranium anomalism is unusual and highly encouraging for future exploration," the company said in a statement to the Australian Securities Exchange.
In situ uranium leaching in itself is not uncommon in Australia, with the practice occurring at the Beverley Uranium Mine in northern South Australia, one of only three operating Australian uranium mines.
Normal uranium leaching involves changing the acidity of the groundwater to expose the uranium. Groundwater at the deposit was so saline that it could burn skin, UraniumSA managing director Russel Bluck said.
What UraniumSA believes is unique is the style of uranium, which occurs as an old beachfront type of deposit.
"In situ leaching is a very efficient way of getting the uranium out of the ground with minimal environmental impact," Mr Bluck said.
"At the moment we are getting very uniform, very predictable mineralisation. It appears, and this is very early days yet, that we may well be dealing with constant mineralisation."
Australian Uranium Association information director Ian Hore-Lacy said that UraniumSA should be "encouraged in its endeavours".
"This is low-grade mineralisation and I am not clear how it differs geologically from other such," Mr Hore-Lacey said.
"For any prospect like this, a lot of holes must be drilled and a lot of careful analysis needs to be done before anyone can say that there is a deposit which is meaningfully known, let alone economic."
UraniumSA will pursue in-fill drilling to look for "high-grade developments" within the current exploration area and continue exploration drilling with holes about 1km apart.
UraniumSA shares gained 10.5c to 26c yesterday.

Re: The Mining Thread

Posted: Thu Jan 03, 2008 10:13 am
by AG
Rann wants to use mining boom to employ disadvantaged
NICK HENDERSON, STATE POLITICAL REPORTER
January 02, 2008 09:30pm
PREMIER Mike Rann wants his social justice adviser David Cappo to find thousands of jobs for the long-term unemployed in the state's mining boom.

Social Inclusion Board Commissioner Monsignor Cappo has been asked to develop innovative strategies to provide job opportunities for "disengaged" South Australians.
He will negotiate with mining companies to create schemes to employ thousands of people including the homeless, indigenous and disabled, who then will be able to provide better support for themselves and their families.

Business and mining communities are vowing to work with Monsignor Cappo to develop the new strategies.

In an interview with The Advertiser, Mr Rann said the Social Inclusion Board had been given the task, described as its most challenging so far, to help the government reap a "social dividend" from the boom.

"How do we make sure that the people who are most marginalised – people with disabilities, Aboriginal people, children growing up in jobless households – get a slice of the action," Mr Rann said yesterday.

"That is going to require a huge amount of work.

"I will be working with mining companies and saying: `OK, we are going to help you with this, this and this, but what I want to see is you giving jobs to unemployed people in Port Augusta and Aboriginal people'."

Monsignor Cappo, who has had considerable success addressing such issues as homelessness, school retention and repeat youth offending, regularly will present recommendations directly to the Cabinet throughout the year.

'He believes innovative ideas will be embraced by the mining sector.

"(For example) instead of jobs where you have had skilled people doing both skilled and perhaps some unskilled work in the one job, you could actually split those jobs," Monsignor Cappo, who is also the Vicar-General of the Adelaide Catholic diocese, said.

"It is that sort of innovation that I would like to sit down and talk to the mining industry about.

"It is creating fair opportunities for a range of individuals and families who are disadvantaged or under real stress, and who normally don't benefit greatly from economic growth."

Monsignor Cappo also will examine health, education and housing issues to assist disadvantaged people entering the workforce.

Mr Rann and Monsignor Cappo would not speculate on the initiatives that would be recommended by the Social Inclusion Board.

The plan has received enthusiastic support from the business and mining communities, which believe the move will help to ease the skills shortage.

Mining company Oxiana's managing director, Owen Hegarty, believed training residents who lived near the mine benefited companies and the community.

The multi-billion dollar company, which has a large mine at Prominent Hill in the state's north, will be used as a model by the Government.

Mr Hegarty said the company's region-focused employment strategy was expensive and time consuming, but ensured it had enough workers to fill the vacant positions.

"Our pre-employment training program takes indigenous and non-indigenous people from nearby communities like Coober Pedy, Oodnadatta and Port Augusta, who have no previous mining experience, and gives them the skills and certification to get a job on an Australian mine site," he said. "The successful graduates of the first programs are already working at Prominent Hill even before we are in production.

"They are haul truck drivers, environmental assistants and geotechnical assistants and are already making a difference in their own communities."

Business SA chief executive Peter Vaughan said he would work closely with Monsignor Cappo.

"Our fear is the mining boom will increase the distance between the haves and have-nots," he said.

"I am sure businesses will embrace the plan because they can see the advantage.

"Firstly out of self-interest but also out of the benefit we get out of being a better community and a better society," he said.

Department of Further Education, Employment, Science and Technology acting-chief executive Craig Fowler said any initiatives would be considered.

"We would look at any kind of innovative or alternative way of tackling what has been a very long-term problem of people dislocated from the workforce or not able to contribute," he said.

"In the brackets of 15 to 24-year-olds there are at least 10,000 to 15,000 young people who are disengaged in one way or the other and that is a pool of potential labour."

Re: The Mining Thread

Posted: Thu Jan 03, 2008 10:36 am
by Howie
Sounds like a good idea to bridge the gap between the poor and the middle class in those areas. Heck they should even extend the program to Adelaide, i'm sure alot of these long term unemployed could do with a bit of reskilling and an opportunity to earn big bucks at one of our mines.

Re: The Mining Thread

Posted: Tue Jan 08, 2008 10:17 pm
by Howie
Rann wants more from BHP
http://www.theaustralian.news.com.au/st ... 45,00.html

John Wiseman, SA political reporter | January 08, 2008

SOUTH Australian Premier Mike Rann has thrown down the gauntlet to BHP Billiton, warning that it must double on-site processing to secure state backing to expand the already vast Olympic Dam mine.

Mr Rann's decision yesterday to specify his expectations marks a toughening of his negotiating position in the lead-up to a decision by the company's board whether to proceed with the $6billion expansion of the copper, uranium and gold mine.

"The resource belongs to the people of South Australia - the ore belongs to the people of South Australia - it doesn't belong to BHP Billiton," Mr Rann told The Australian.

"I want to see as much in all of these things to maximise the economic benefits and the job benefits for South Australia. I'd want to see a doubling of the capacity on site."

Given that BHP currently refines just under 200,000 tonnes of copper at the mine site annually with a value of about $1billion, doubling that output would represent a huge infrastructure commitment by the mining company. About 4000 tonnes of uranium is also produced from Olympic Dam but no processing of that ore takes place.

BHP late last year stepped up a campaign to be allowed to ship unprocessed copper-uranium ore to China.

Company executives insisted that the mining giant had the right to omit downstream processing from the final configuration of the expanded mine.

At the time Mr Rann said expansion of the mine was "not on" if the miner failed to commit to on-site refining.

Responding to Mr Rann yesterday, BHP Billiton issued a brief statement that it was continuing to discuss the configuration of the proposed expansion with the Government.

"We recognise the Government's desire to see increased processing as well as mining at Olympic Dam," it said.

For BHP the "China option" would provide huge savings by avoiding infrastructure and labour costs at the remote mine 570km northwest of Adelaide.

Last September BHP's departing chief executive Chip Goodyear said the corporation should concentrate on mining and "leave to others the skill set of processing that material".

But the South Australian Premier clearly believes his Government can bring BHP to heel declaring: "I think we are in a very strong bargaining position.

"We own the resource. So they want a lot from us and we want a lot from them and out of that we will negotiate a very successful outcome.

"They are not going to be announcing that this mine is not going ahead - there's been hundreds of meetings with BHP - everyone's going to be a winner out of it," he said.

He expected there would be tough negotiations and there would be "give and take" on both sides, but ultimately there had to be a major increase of processing on site.

The BHP Billiton board is expected to decide by mid-year whether to proceed with the Olympic Dam expansion.

Re: The Mining Thread

Posted: Tue Jan 08, 2008 10:40 pm
by UrbanSG
Rann wants to be very very careful here. Whilst it is good that he is trying to maximise the potential for SA, mining companies in the past have not gone ahead with projects when government intervention has become too high and made a project unviable.

The reason BHP want to off-shore processing is because the physical expansion project has become too darn big at possibly over $20billion! It is now looking likely that a staged expansion process will occur instead. With an almost definate US recession and a possible world recession looming I would be very careful as to what demands I was placing on a company at this point in time Rann.

Re: The Mining Thread

Posted: Wed Jan 09, 2008 8:10 am
by rhino
I can't see BHP Billiton losing money at Olympic Dam. More a case of not making as much money as they would if they sent the ore to China for processing, but in making less profit, they would be doing something of value for the people of Australia by providing a lot of employment.

As Urban says, it now looks likely that a staged expansion process will occur instead. I can live with that.