New mines & projects
The Lachlan Orogen continues to attract large exploration budgets. Zinc and other base metals have been added to copper and gold as the major exploration targets. Increases in prices for a range of metals such as tungsten and tin have boosted exploration in the New England region. Some areas in NSW are now being actively explored for the first time in more than 20 years.
Metals
Higher mineral commodity prices during 2005-06 provided the impetus for a number of new projects or extensions. The main focus for metallic mineral projects continues to be in the central west region of NSW.
In 2005 the NSW Government granted development consent for a $114 million extension at depth to the Ridgeway underground gold mine (Ridgeway Deeps). Development work on extending the decline from the existing sub level caving operation is continuing. Feasibility study work continues with detailed engineering components, independent reviews and risk assessment progressing to completion. The feasibility study is expected to be completed in the first half of 2007.
In late 2006, Newcrest lodged a major project application with the Department of Planning for its proposed $1500 million Cadia East open cut/underground gold (copper) project.
The underground component of the project is at a feasibility stage. The pre‑feasibility study for the open cut component of the project is expected to be completed during the first half of 2007. The Cadia East project has the potential to increase ore production at Cadia Valley Operations to around 32 Mtpa (from the current 23 Mtpa) and significantly extend the life of mining operations for up to a further 30 years.
Barrick Gold’s $440 million Cowal gold mine, north of West Wyalong, commenced production in the first half of 2006 and was officially opened by the Premier, the Hon. Morris Iemma MP, in September 2006. The mine produced 121 930 ounces of gold in 2006.
In March 2004 Straits Resources acquired the Hillgrove gold/antimony mine near Armidale in the north of NSW. In mid 2006 the Company made a decision to proceed with the mine project. Construction of the underground operation is due to start in early 2007 and first production is forecast by mid year.
Tri Origin completed a prefeasibility study for its Woodlawn underground gold and base metal project in April 2007 and will commence work on a definitive feasibility study. Subject to government approvals, development of the project may commence during early 2008.
CBH Resources Ltd has identified a potential copper resource at Mineral Hill and is currently investigating the options to bring the mine back into production. Subject to receiving government approvals, mining may re‑commence in the second quarter 2007.
CBH Resources also owns the Hera gold and base metal deposit which is located 100 km south of Cobar. The Company is progressing the approvals for a decline access to the orebody and remodelling of the orebody has commenced.
Polymetals Mining Services Pty Ltd was granted approval by Cobar Shire Council in July 2006 to recommence open cut mining activities at the Mount Boppy gold mine. Open cut activities are expected to commence in early 2007, with full production expected in early 2008.
Preliminary mine planning and exploration drilling programs are underway at Alkane Resources Ltd’s Tomingley gold project. A pre-feasibility study was completed early in 2006 and Alkane has commenced work on a definitive feasibility study.
In February 2007, the NSW Government approved the $190 million E48 development at the Northparkes mine, being the next production phase of this copper (gold, silver) mine 27 km northwest of Parkes. The E48 ore body mining reserve is currently estimated at 33.9 Mt. Mining of E48 is expected to commence following the completion of mining at E26 in 2009. Ore from E48 would sustain the current production levels of Northparkes mines (between 5.5 and 6.5 Mtpa of ore) for a further seven years until 2016 and use the existing processing facilities.
Straits Resources is pursuing a number of promising regional exploration targets, with a focus on potential satellite underground and open cut operations at Larsons, Murrawombie and Budgerygar and north east of Girilambone.
Through its exploration activities, Straits Resources is aiming to lift the current resource base at the Tritton copper mine from 353 000 t of copper metal, to the Company’s target of 1 Mt of copper in resources and 0.5 Mt in reserves.
The Tritton expansion will focus on development of the Murrawombie open cut mine and the Larsen’s underground mine along with an expansion of the processing plant to 2 Mtpa. Development work on the Larsen’s underground mine may commence in August 2007 with first ore production in the first half of 2008. Production from the Murrawombie open cut mine could commence in August 2008.
In October 2006, Perilya Limited decided to proceed with the staged development of its $30 million Potosi underground mine, 2 km north of the North mine at Broken Hill. The development of an exploration decline commenced at Potosi North in March 2007. The decline will provide access to approximately 194 000 t of high grade ore. First ore delivery is expected in the first quarter 2007.
An underground drilling program will be undertaken concurrently with the mining of the Potosi North deposit to infill the Potosi Extended area. The Potosi mine is expected to increase zinc production from Broken Hill by approximately 10 000 t in the first year and by 35 000 t in subsequent years.
Perilya has also commenced a pre-feasibility study on its North Mine Deeps project. The pre-feasibility study is expected to be completed by April 2007, with a full feasibility study completed by late 2007.
CBH Resources has commenced construction on an exploration decline at its Rasp mine project. The Company has also commenced the development assessment and approvals process for a 750 000 tpa underground mine. Subject to government approvals, construction of the proposed $110 million Rasp mine may commence in 2008, with first production in early 2009.
Pinnacle Mines Pty Ltd is developing a new silver-lead-zinc mine, near Broken Hill, based on new high grade resources at the Edwards Pit project. The first stage of mining in the Edwards Pit commenced in January 2007.
Industrial minerals
Total resources of coarse-grained beach placer deposits of mineral sand (rutile, zircon, ilmenite, and altered ilmenite) identified within the Murray Basin currently exceed 150 Mt, with over 100 Mt occuring in NSW deposits. The deposits consist of zircon (30–40%), ilmenite and weathered ilmentile (50‑70%). In NSW the most significant beach placer deposits identified so far include the Ginkgo and Snapper deposits west of Pooncarie; the Castaway; Dispersion; Earl; Kerribee; and Koolaman deposits northwest of Euston; the Birthday Gift; Western Strands and Triangle deposits east of Pooncarie; and, the Karra and Cylinder deposits northwest of Balranald.
In June 2006, Bemax Resources lodged a major project application with the Department of Planning for the Snapper project. The Snapper deposit lies only ten kilometres from the company’s operating Ginkgo mine and will be developed as a production expansion of the Ginkgo mine. Project approval for Snapper was granted in August 2007.
The Snapper deposit reserve contains 563 000 t of zircon, 948 000 t of rutile, 538 000 t of leucoxene and 2 677 000 t of ilmenite.
Alkane Resources Ltd is advancing its Dubbo zirconia project. The Dubbo project is based on one of the world’s largest resources of zirconia, niobium, tantalum, yttrium and rare earth elements.
Process optimisation and development work has commenced at the laboratory facilities of ANSTO Minerals. Construction on the shed to house a Demonstration Pilot Plant (DPP) at ANSTO is nearing completion. Procurement of components for the DPP is underway and it is anticipated that construction of the plant should commence shortly. The plant is scheduled to be operated for at least six months and this could be extended to twelve months depending upon any process issues and the amount of sample products required to be distributed to potential consumers. The feasibility database will be progressively updated to enable a development decision by the company in mid 2008.
A comprehensive review of the occurrence of, and potential for, industrial minerals in NSW has recently been completed by the Geological Survey of New South Wales and was published in 2007. Also, data on over 9 000 operating and abandoned occurrences of industrial minerals in NSW can be obtained from the new MetIndeX database produced by NSW DPI. MetIndeX incorporates the 2003 NSW Industrial Minerals Database.