attachment 4: stakeholder consultation register...the lccmg final (10 yr) report 14/09/2016 email to...

MATSA GOLD PTY LTD

Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A4 November 2016

ATTACHMENT 4: Stakeholder Consultation Register

(as recorded on 31st October 2016) Consultation is ongoing

MATSA GOLD PTY LTD

Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A5i November 2016

DATE DESCRIPTION

OF ENGAGEMENT

STAKEHOLDER MATSA REPRESENTATIVE(S) DISCUSSION TOPICS ITEMS RAISED

PROPONENT RESPONSE/

RESOLUTION

STAKEHOLDER RESPONSE

NAME TITLE COMPANY NAME TITLE*

20/07/2016 email to Patrick Hill Supervisor Mt Weld Pastoral Station

Goldfields Australia RB Regional Exploration Manager

Notification of POW Nil

27/07/2016 telephone Gemma Glass Tenement Manager Goldfields Australia RB Regional Exploration Manager

Discussed access onto the Bindah Haul Road

28/07/2016 telephone Gemma Glass Tenement Manager Goldfields Australia RB Regional Exploration Manager

Emailed Gemma a map of the haul road

1/08/2016 meeting / Kalgoorlie

Ian Suckling General Manager Goldfields Australia PP,RB refer below Organised meeting to discuss toll treatment

1/08/2016 meeting / Kalgoorlie

Michael Errickson Senior Vice President Australia

AngloGoldAshanti PP,RB refer below Organised meeting to discuss toll treatment

3/08/2016 telephone Richard Wills Senior Legal Harmony Australia RB Regional Exploration Manager

Discuss purchasing the Aurora Royalty

5/08/2016 meeting / Perth

Ian Suckling General Manager Goldfields Australia PP,FS,RB,JP refer below Introductory meeting to discuss toll treatment and haul road access

5/08/2016 meeting / Perth

Michael Errickson Senior Vice President Australia

AngloGoldAshanti FS,RB,JP refer below Introductory meeting to discuss toll treatment

8/08/2016 email from Gemma Glass Tenement Manager Goldfields Australia RB Regional Exploration Manager

Objection 487162 & 485904 L39/31

Access deed Matsa has sent the signed agreement

10/08/2016 email to Andrew Doe Vice President Sustainability and Technical Support

AngloGoldAshanti RB Regional Exploration Manager

Email haulage schedule email reply

10/08/2016 email to Ian Suckling General Manager Goldfields Australia RB Regional Exploration Manager

Email Haulage Schedule & Met reports

11/08/2016 email from Andrew Doe Vice President Sustainability and Technical Support

AngloGoldAshanti RC, JP refer below Access to Lake Carey Management Group Data

Should go through Fiona Taukilis

Agreed

11/08/2016 email from Patrick Hill Supervisor Mt Weld Pastoral Station

Goldfields Australia Leane Clark

Receptionist Notification of water bore drilling program

email reply

12/08/2016 email to Richard Wills Senior Legal Harmony South East Asia

RB Regional Exploration Manager

Offer to purchase the Aurora Gold Royalty

12/08/2016 email to Andrew Doe Vice President Sustainability and Technical Support


Request to meet AGA in-house heritage advisor

12/08/2016 Telephone /from

Andrew Doe Vice President Sustainability and Technical Support


Belinda will be given access to the LKMG files she has requested

12/08/2016 email to John Millikan Manager Community and Land Access


Request for a meeting next week

15/08/2016 email to John Millikan Manager Community and Land Access


Sent John 2 heritage reports for his review.

MATSA GOLD PTY LTD

Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A5ii November 2016

DATE DESCRIPTION

OF ENGAGEMENT


PROPONENT RESPONSE/

RESOLUTION



15/08/2016 email to [email protected]

Department of Environmental Regulation


Possible works approval for water discharge onto Lake Carey during the test phase

Respond within 10 days

16/08/2016 email from Bindi Datson Saline Vegetation Specialist

Actis Environmental Services


The Bindah haul road is heavily used and should be diverted around the Fortitude mine

Designed a bypass road around the immediate Fortitude mining area

16/08/2016 email to Charlie Whitlock Natural Resource Management Officer

Department of Water


Request to amend the Form1 from 1 bore to 5 bores

email acknowledgement

17/08/2016 telephone/ from

Gemma Glass Tenement Manager Goldfields Australia RB Regional Exploration Manager

L39/247; L39/31

Goldfields considering a partial surrender of L39/31, access agreement for L39/247

Letter extending the recently signed access agreements

Gemma to give RB a "heads up" if Goldfields choose to surrender part of L39/31

17/08/2016 telephone and email/to

Steve Deckert CEO Shire of Laverton RB Regional Exploration Manager

Bindah Haul Rd

Inquiry if the Shire of Laverton has any management responsibilities over the road.

Sent email request

17/08/2016 telephone and email/to

Carol Rates Officer Shire of Menzies RB Regional Exploration Manager

Bindah Haul Rd

Inquiry if the Shire of Laverton has any management responsibilities over the road.

Sent email request

18/08/2016 email to Chris Burton Corporate Development Analyst

Saracen Gold Mine Pty Ltd


Toll treating

RB to email the haulage profile and Chris to reply with ore purchase rates

18/08/2016 email from Danielle Eyre

Senior Manager, Industry Regulation - Resource Industries | Licensing and Approvals

DER RB Regional Exploration Manager

Works Approval for test pumping

If the installation is temporary no approval is needed, if it is permanent approval is required

22/08/2016 letter from Rhonda Evans CEO Shire of Menzies Amanda Smith

Tenement Manager L39/247; L39/31 Menzies Shire has no objection

mailto:[email protected]

mailto:[email protected]

MATSA GOLD PTY LTD

Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A5iii November 2016

DATE DESCRIPTION

OF ENGAGEMENT


PROPONENT RESPONSE/

RESOLUTION



24/08/2006 meeting with John Millikan/Andrew Doe

Manager Community and Land Access

AngloGoldAshanti RB, JP, FS refer below Advise on community relations and heritage surveys

Will lodge through the GLSC

24/08/2006 meeting with Michael Errikson/Andrew Doe

Senior Vice President Australia

AngloGoldAshanti FS,RB,JP refer below AGA informed Matsa of its revised maximum oxide ore requirements



Commencement of diamond drilling

Informing Patrick of the commencement of diamond drilling



POW Informing Patrick of the lodgement of a POW for water bores

29/08/2016 Mail to Patrick Hill Supervisor Mt Weld Pastoral Station

Goldfields Australia PP Executive Chairman, CEO

Formal notification of the commencement of a mining operation

1/09/2016 meeting with Brioni Sinclair Environmental Manager Saracen FS,JP refer below EPA requirements for Saracens recommencement of Red October operations

10 year report submitted by LCCMG, Lake Carey too hypersaline to support stygofauna

1/09/2016 meeting with Danielle Ellie Environmental Officer DER FS, JP refer below Matsa presented the Mining Scope for Fortitude Gold Mine

requested direction on reporting requirements of DER

advised to follow the guidelines from the LCCMG final (10 yr) report

14/09/2016 email to Mark Kneeshaw AngloGoldAshanti RB Regional Exploration Manager

Photos of RC holes for oxide determination

20/09/2016

meeting onsite at Granny Smith's

Francis Mills Superintendent Environment and Community

Gold Fields Australia RB, JP refer below hypersaline water discharge to lake

GF permitting requirements, Flora/Fauna survey requirements for permitting

lake environment too salty for stygofauna and troglofauna

18/10/2016 telephone call Jillian Dwyer Shire President Menzies Shire Jon Pluckhahn

Mine Manager Meeting with Menzies Shire Councilors

proposed meeting time

proposed meeting at October council meeting

25/10/2016 email from Daniela Ashley Accounts Officer GLSC Richard Breyley

Regional Geology Manager

Heritage Survey over Fortitude quote supplied PO raised.

27/10/2016 meeting with Jillian Dwyer, Rhonda Evans

Shire President, Shire CEO

Menzies Shire FS, JP, GB refer below presented the Fortitude Mining plan to the Menzies Shire councillors

*Matsa personnel: Paul Poli (PP) – Executive Chairman/CEO, Frank Sibbel (FS) – Director, Richard Breyley (RB) – Regional Geology Manager, Jon Pluckhahn (JP) – Mine Manager *Gerrard Consulting: Ray Gerrard (RG) – Managing Director, Gay Bradley (GB) – Senior Environmental Scientist

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ATTACHMENT 5: Fit and competent operator

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Brief resume of each of the Matsa Gold directors

Mr Paul Poli - Bachelor of Commerce, FCPA

Chairman

Paul completed a bachelor degree at the University of Western Australia in 1984, and after gaining experience with Duesbuys Chartered Accountants, he became a partner in a private practice in 1989. Paul is a fellow of the Australian Society of Certified Practising Accountants and he also holds a diploma in Financial Services and was a registered Securities Trader.

Paul has considerable experience in general management/business, contract negotiations, taxation, corporate and business advisory.

Franciscus Sibbel – Bachelor of Engineering (Hons) Mining, F.Aus.IMM

Non-executive Director

Mr Sibbel is a Mining Engineer who has over 45 years of extensive operational and management experience in overseeing large and small scale mining projects from development through to successful production. He was formerly the Operations Director of Tanami Gold NL until his resignation on 30 June 2008, and has worked as the Principal in his own established mining consultancy firm where he has undertaken numerous projects for both large and small mining companies. He holds a WA First Class Mine Managers certificate and has managed a number of prescribed premises including gold operations at Three Mile Hill, Lynas Find and Sandstone.

Mr Andrew Chapman – Bachelor of Business CA Ffin

Non-executive Director & Company Secretary

Andrew Chapman is a chartered accountant with over 16 years’ experience with publicly listed companies where he has held positions as Company Secretary and Chief Financial Officer and has experience in the areas of corporate acquisitions, divestments and capital raisings. He has worked for a number of public companies in the mineral resources, oil and gas and technology sectors. He is an associate member of the Institute of Chartered Accountants (ICAA) and a Fellow of the Financial Services Institute of Australasia (Finsia). He was previously a director of Wesgold who developed a gold project before being bought out.

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ATTACHMENT 6: Public health and environment risks

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Introduction

The majority of each of the three Fortitude Gold Mine pits will be below the groundwater table. Constant dewatering is therefore likely to be required for the life of mine by dewatering bores that are located in the pit and around the pit perimeter (see Attachment 3 above for technical specifications). The saline water sourced from pit dewatering will be pumped to the unlined Settlement Pond 1 to allow for settling of any sediment present. This sediment will be regularly removed from the pond. Clean water will overflow into the second settlement pond which will act as a Turkey’s Nest for a source of water for minesite dust suppression. The selected location of the settling ponds is in a natural depression (Plate 2). The volume of water extracted from the pits will exceed that required for dust suppression. This excess water will be discharged into Lake Carey at a location approximately 50m south of the in situ vehicle causeway (Plate 1).

Plate 1: Discharge of water will be 50m to the south of this causeway

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Plate 2: Intended location for the settling ponds

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Plate 3: Intended pathway for pipework from pits to settling ponds (already cleared for access to drilling sites)

Content of discharge / Bedrock aquifer water quality

Groundwater in the Fortitude area is hypersaline, with salinity ranging from 230,000 to 260,000mg/L TDS (Table 3). Values of field pH range from 6.08 to 6.38 (i.e. are slightly acidic). The sampled waters have very low variation in chemical composition based on the calculated percentage equivalents of the major ions (AQ2 2016a). Groundwater is of a sodium chloride type with high concentrations of magnesium and sulphate and moderate concentration of potassium. The higher concentrations of sodium and magnesium in the groundwater possibly reflect a marginally higher content of rock silicate components from the saprolite (Morgan 2002 in AQ2 2016a). Groundwater at the Fortitude site also has low calcium and bicarbonate concentrations. Calcium bicarbonate is characteristic of juvenile recharge waters suggesting that no groundwater direct recharge occurs in the proximity to the Fortitude Project (AQ2 2016a). Additionally, Fortitude groundwater samples were analysed for presence of 15 soluble heavy metals in the groundwater. The results from this testing (Table 3) show that some parameters were detected above the limit of reporting (LOR). Elevated concentrations of iron (2-7 mg/L), manganese (4-7 mg/L) and boron (1-4 mg/L) in the water were detected in all bore samples. Boron can be associated with gold mineralisation where tourmaline is present and has high adsorption by clayey sediments (Morgan 2002 in AQ2 2016a).

In general, water quality results from the Fortitude site indicate that the water sourced by dewatering of the pits during operation will be chemically similar to the Lake Carey water (AQ2 2016a). It should be noted that groundwater in the Goldfields region is naturally enriched with Cu, Pb and Zn with salt lakes throughout inland Australia effectively functioning as hydrochemical sinks for elemental concentration (Outback Ecology & actis Environmental 2013). Receiving environment

Lake Carey is a large inland salt lake covering an area of approximately 1000km2, with a catchment area of approximately 50,000km2 (AQ2 2016b). The mainstream length of the lake is 570km. The groundwater within the lake sediments is saline to hypersaline, with salinities exceeding 220,000mg/L TDS (AQ2 2016a). The nearest weather monitoring station at Laverton has a recorded average rainfall of 233.5mm/yr, with rainfall in the region being highly variable (BOM 2016). Rainfall usually occurs in late summer from ex-tropical lows. The annual pan evaporation is 2776mm, with monthly evaporation rates exceeding average rainfall rates throughout the year. Further details of the climate of Fortitude Gold Mine and surrounds is detailed in Attachment 9B (AQ2 2016b). Thus the salt lake is usually dry. However, heavy rainfall can lead to the flooding of the lake. A fall of 150mm in a month will result in a flooding of the lake system. During such periods, water may last on the lake for several months. Flood events can occur once or twice in a ten year period, with flooding having occurred recently in 2000,

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Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A6iv November 2016

2001, 2004 and 2011. During such times, water depths can reach 60cm (Outback Ecology & actis Environmental 2013). Surface water salinities at the onset of flooding are reduced to 3,000 to 20,000mg/L. During lesser rainfall events, localised pooling of surface water will be 10cm or less in depth and will usually evaporate within a month. Such minor flooding occurs about once a year (Outback Ecology & actis Environmental 2013) (Plate 5 & 6). Surface sheet flow occurs in a southerly direction across the lake. The comprehensive studies of Lake Carey have shown that at control sites on the lake there is also natural salt loading in some areas, and along the western side of Lake Carey, sediments are enriched with Cr, Co, Cu and Ni (Outback Ecology & Actis Environmental 2013). Detailed results of the properties of the long term control site sampling of sediment and surface waters at Lake Carey are provided in the Lake Carey Catchment Management Group commissioned review (Outback Ecology & Actis Environmental 2013). A review of the numerous biological surveys is also provided in the report. The key determinants influencing species composition and abundance in salt lakes are salinity and nutrients (Outback Ecology & actis Environmental 2013).

Plate 4: Samphire dominated vegetation at the edge of Lake Carey at Fortitude site

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Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A6v November 2016

Table 3: Fortitude Gold Mine groundwater quality analyses *

Indicator Units LOR Sample number ( each from a different bore) 1 2 3 4

pH pH units 0 6.7 6.6 6.6 6.7

Total Dissolved Solids mg/L 10 260000 240000 230000 240000

Total Alkalinity as CaCO3

mg/L 5 67 55 64 60

Carbonate Alkalinity as CO3

mg/L 1 1 1 1 1

Bicarbonate Alkalinity as HCO3

mg/L 5 82 67 78 73

Chloride, Cl mg/L 1 160000 150000 150000 140000 Sulphate, SO4 mg/L 1 18000 17000 17000 17000 Nitrite Nitrogen, NO₂ as N

mg/L 0.05 0.05 0.05 0.05 0.05

Nitrate Nitrogen, NO₃ as N

mg/L 0.05 1.7 1.4 2.0 1.4

Total Kjeldahl Nitrogen

mg/L 0.05 18 10 13 34

Ammonia Nitrogen, NH₃ as N

mg/L 0.05 2.6 0.69 3.2 16

Total Phosphorus (Kjeldahl Digestion)

mg/L 0.02 1.5 0.48 2.0 0.75

Filterable Reactive Phosphorus

mg/L 0.005 0.086 0.075 0.24 0.13

Filterable Reactive Phosphorus as PO4

mg/L 0.01 0.26 0.23 0.72 0.38

Filterable Reactive Phosphorus as PO3

mg/L 0.01 0.22 0.19 0.60 0.32

Total Arsenic mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Barium mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Beryllium mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Boron mg/L 0.005 4 3 3 1 Total Cadmium mg/L 0.00001 0.02 0.02 0.02 <0.01 Total Calcium mg/L 0.2 590 560 570 600 Total Cobalt mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Chromium mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Copper mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Iron mg/L 0.005 <1 2 4 7 Total Lead mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Magnesium mg/L 0.1 7800 7100 6600 6400 Total Manganese mg/L 0.001 7 8 7 4 Total Mercury mg/L 0.00005 0.00005 0.00005 0.00005 0.00005 Total Nickel mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Potassium mg/L 0.1 2300 2100 1900 1900 Total Selenium mg/L 0.001 <0.2 <0.2 <0.2 <0.1 Total Sodium mg/L 0.5 98000 97000 94000 86000 Total Zinc mg/L 0.005 <1 <1 <1 <0.5

LOR = limit of recording Data collected August 2016 *AQ2 2016a

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Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A6vi November 2016

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Potential environmental impacts & risk assessment The potential environmental impacts to the ecology of Lake Carey due to the release of water derived from dewatering bores from the Fortitude Gold Mine include:

- Sediment release - Hydrocarbon contamination - Altered hydrological regime - Increased salt loading - Nutrient release.

Spills or leakage of hypersaline water en route to the settlings ponds, or from the settling pond to the point of discharge, are also a potential impact with resultant soil contamination and associated loss of vegetation by the hypersaline water. It is extremely advantageous to environmental impact assessment of the potential effects of mine dewatering discharge by Fortitude Gold Mine Project that the Lake Carey Catchment Management Group (LCCMG) has commissioned numerous studies into the lake over an extended period, which were summarised into a report in 2013. This report looked in detail into the ecology of the lake and the impact of saline water discharge from mine operators in the locality (Outback Ecology & actis Environmental 2013). The areas of research included:

- Water quality - Sediment quality - Algae and macrophytes - Aquatic invertebrates - Riparian vegetation - Aquatic invertebrates and - Physical processes.

The sampling of invertebrates at Lake Carey commenced in 1999, and the majority are considered widespread and known to occur throughout the inland waters of Australia. Similarly, the majority of diatom taxa recorded from the Lake Carey benthos to date is considered ubiquitous and have been documented from saline habitats throughout inland Australia and overseas. The playa of Lake Carey does not support a diverse or abundant macrophyte community, even when inundated. Short term impacts On examination of the evidence gathered by the research by the LCCMG over a ten year period, the following impacts may be discerned at the point of discharge from the Fortitude Gold Mine. It should be noted that the proposed maximum discharge by the Fortitude Gold Mine will only be approximately 10% (at 30L/s) of that currently released by Sunrise Dam (80L/s) and Wallaby Mine (200L/s) (Outback Ecology & actis Environmental 2013) combined. The Red October mine is also currently discharging into Lake Carey (Figure 5). The Fortitude Gold Mine is located in an area of limited groundwater potential, compared with the other active mines in the vicinity of Lake Carey. The discharge for the Fortitude Gold Mine will also only be for a 27 month period. Thus the impacts by the Fortitude discharge will be on a much smaller scale, both for quantity and time, than for other mines in the area previously monitored.

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The discharge of dewatering saline water to a dry lake will often create a permanent shallow body of water. This has the potential to change the hydraulic regime and therefore the ecology of the watercourse (AQ2 2016b). The influence of dewatering has generally been restricted to the vicinity of the discharge outfalls with salt crusting on the surface of the lake. The volume of water discharged by mining activities has been determined to be insignificant in all but a local scale on the surface (Outback Ecology & actis Environmental 2013) The pH of the lake waters ranged from 6.0-8.5, with a mean of 7.5 (Outback Ecology & actis Environmental 2013). Discharge sites recorded lower pH values over time. This is also likely to occur at Fortitude in the short term if lake conditions remain relatively dry, with the Fortitude groundwater with pH levels of 6.6-6.7. Discharge waters from other mining operations were typically hypersaline in excess of 200,000mg/L, and ranging up to 320,000mg/L. Fortitude bore water samples tested were in the lower range of these values, at 230,000-260,000mg/L TDS. The salt from the discharge forms a halite crust which will radiate out from the discharge point to the nearest low point of the playa. Whilst the natural crust of the lake rarely exceeds 3mm in thickness, the thickness of the salt crust near to discharge sites has reached more than 100mm. This white salt footprint can be quite evident on an otherwise brown playa (Outback Ecology & actis Environmental 2013) until a flooding event occurs. The discharge waters can contribute to salt, metal and nutrient loads within a localised area as the groundwater is often characterised by elevated concentrations of metals such as cadmium, cobalt, copper, lead, manganese, nickel and zinc. The background concentration of metals in surface waters may also be naturally high in some areas of the lake (Outback Ecology & actis Environmental 2013). Sediments at the regional control sites at Lake Carey also sometimes reflected natural mineralisation with elevated levels of cobalt, chromium, copper and nickel. The elevated metals are characteristic of many salt lakes due to their location within mineralised catchment zones and subsequent weathering of this material (Outback Ecology & actis Environmental 2013). There is also the potential for elevated nutrients, thought to be due to extra nitrogen from explosives utilised in pit blasting (Outback Ecology & actis Environmental 2013). After flooding, nitrogen levels of the lake waters may also increase naturally, due to both the organic matter introduced to the lake and the release from wetted sediments (Outback Ecology & actis Environmental 2013). Despite the high level of resilience of salt lake biota residing in salt lakes, the shallow pools of hypersaline discharge water are not colonised by algae or invertebrates (Outback Ecology & actis Environmental 2013).

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Long term study results There are no apparent cumulative impacts to the lake ecosystem from hypersaline mine dewatering discharge from numerous point sources over time. Natural flood events enable a dilution of the surface waters of the lake, and a natural mitigation of any impacts associated with dewatering discharge. Widespread flooding once or twice every ten years should be sufficient to maintain the ecological integrity of the lake into the future (Outback Ecology & actis Environmental 2013). There has been no observed accumulation of either salt or metals in either lake waters or sediments associated with the dewatering discharge into Lake Carey over the past decade or more (Outback Ecology & actis Environmental 2013). There are also no residual impacts related to the contribution of salts or metals from past dewatering. There have been no observed adverse impacts upon the aquatic biota or riparian vegetation attributable to discharge water observed to date (Outback Ecology & actis Environmental 2013). Potential risks with metal toxicity appear unlikely (AQ2 2016b) as the majority of metals will readily bind to the fine clay particles of the lake sediment, or will form ionic complexes in the high salinities, thus reducing the bioavailability and potential toxicity (Outback Ecology & actis Environmental 2013). During major flood events, dilution and dispersal mechanisms reduce salinity and metal concentrations in surface waters at the discharge sites. There is also dissolution of salts and metals from the sediments. Surface waters, and biological communities, are generally homogeneous in large floods due to high connectivity and mixing, regardless of the history of dewatering discharge. During such major flood events, the productivity of the lake increased and the biological assemblages were comparable over the entire lake. The discharge, historic discharge and control sites have comparable water quality, during the initial stages of flooding. With the onset of the drying phase, evaporation concentrates solutes in the water column, and salinity and metal concentrations increase. Regionally, evapoconcentration increases the salinity in surface waters throughout the lake, although more slowly than at the discharge sites (Outback Ecology 2004b; 2012a). The key findings of the long term LCCMG studies were that any impacts on aquatic biota and riparian vegetation due to dewatering discharge are largely mitigated during flood events. The flood events dilute and disperse the salts nutrients and metals and maintain the integrity of the lake ecosystem (Outback Ecology & actis environmental 2013). The amount of salt added to the lake is negligible compared to the salt store capacity of the lake system. The salt holding capacity of the sediments is 40,000 times more than the average annual input by dewatering discharge of all current mine operators (Outback Ecology & actis Environmental 2013). There is no evidence of cumulative impacts over time. Similarly, the disturbance caused by discharge waters in regard to hydroperiod and salt mass balance is considered negligible in comparison to geological and environmental time scales.

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Mitigation of potential environmental impacts Although the risk of environmental impact from the dewatering discharge into Lake Carey is low, there are a number of preventative measures that can be taken to further minimise the potential risks. Location of discharge pipe The groundwater and surface water flows to the south-east under a low hydraulic gradient following the site topography (AQ2 2016a). Therefore, the discharge pipe will be located at least 50m to the south of traffic causeway (Plate 5). This will act to minimise the banking of discharge water against the causeway (Plate 6). The site of discharge release will be placed at least 20m away from the bank of the lake shore to minimise the effect upon shoreline riparian vegetation (Plate 4 & 8). The causeway is an artificial barrier than reduces water flow during flood event (Outback Ecology & actis Environmental 2013). However, the area to the south still floods (Plate 6) as there is a substantial drainage line that enters the lake to the south of the causeway (Outback Ecology & actis Environmental 2013) (Figure 6). The short term discharge effects are likely to be dissipated after the first heavy rains in the region.

Hydrocarbons Where there is a risk of hydrocarbon spillage, such as equipment maintenance and fuel handling areas, sites will be bunded and have any runoff directed to grit and oil interceptors prior to the discharge of the treatment water to the environment. This water will not be placed in the settling pond/lake discharge system, but released to the onsite surface water management system (to be described in detail in the mining proposal). Sediment Settling ponds will be regularly checked, and emptied of sediment as required. This will require integration with the bore extraction requirements, as no water will be able to be pumped into that pond for the period of maintenance. Such procedures will be incorporated into a Fortitude Water Management Plan Overflow of Settling Ponds The settling ponds have been located outside of the 1% AEP flood plain (AQ2 2016b). The settling ponds will be regularly checked to ensure a freeboard of 0.5m is maintained at all times to prevent the potential for overtopping. The two ponds are designed to hold 24hrs of pumping at 30L/s. Monitoring of discharge waters The discharge will be visually monitored twice daily to ensure sediment is managed successfully within the settling ponds, and that no significant changes to water constituents, or constituent levels, are detected. Monitoring of water quality will be linked to other site legal requirements (such as those in the DoW 5C licence).

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Plate 5: Discharge of saline water will be to south of causeway (view of north of causeway, taken from Fortitude tenement in September 2016)

Plate 6: View of causeway after inundation of rains in June 2016 (not considered a ‘flood’)

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Plate 7: View south of causeway after rains (June 2016)

Plate 8: The shoreline of Lake Carey at the Fortitude site

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Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A6vii November 2016

Hypersaline water pipelines Pipelines will be inspected daily to ensure that any leakages are quickly detected and fixed. Pipelines will run in bunded corridors to limit the risk of hypersaline water being release to the surrounding environment. Corridors will be placed in already disturbed areas where possible (Plate 3).

Risk analysis There are no considered risks to human health by the release of hypersaline dewatering discharge into Lake Carey. The potential environmental impacts have been discussed above, and summarised into Table 5, with a residual risk assessment utilising Table 4 (DER 2015).

Table 4: Risk Assessment classifications

(from DER 2015)

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Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A6viii November 2016

Table 5: Risk assessment of potential environmental impacts of dewatering discharge into Lake Carey

POTENTIAL ENVIRONMENTAL IMPACT to LAKE

CAREY ENVIRONMENTAL MANAGEMENT / CONTROLS MITIGATING FACTORS

RESIDUAL RISK

RATING

Hypersaline water spills to land by:

- pipe leakage

- overtopping of settling ponds

Pipes will lie within bunded corridors, so that if any leak was to occur, it would be contained within this corridor.

Any detected leaks would instigate a cessation of pumping, a correction of the technical issue causing and leading to the leak, and a rehabilitation of the affected site with a removal of the salt contaminated soil to be buried within the waste dump. The dewatering system (pipelines & settling ponds) will be installed by competent contractors.

Settling ponds will be constructed to ensure both are secure facilities.

Dewatering system will be regularly inspected for leaks and for maintenance of freeboard capacity in ponds.

The installed dewatering system will be new, and with the short mine life, few wear and tear issues are expected. The LOM of 27 months is unlikely to experience 1:100 rainfall events. However, if a 1:100 event occurs, the excess water accumulated in the open pits will be pumped into the Central satellite pit which will be available as a temporary water storage area after 7 months of operations. This water will then be pumped into the main bore line and directed to the first settling pond where it will be treated in the same manner as the groundwater dewatering water.

Low

Low

Erosion to lake playa at point of discharge

Discharge point will be established 50m south of causeway, and 20m away from the lake shoreline. The outfall structure will consist of a larger pipe, or multiple outlet points to reduce discharge velocity and minimise erosion potential. If deemed necessary, competent rock will be placed at the dispersion point to further reduce the energy of the discharge water.

Erosion has not been considered an issue in the ten year review of dewatering discharge at Lake Carey commissioned by the Lake Carey Catchment Management Group. Low

Water ponding on lake may alter hydrological regime

The end of the discharge pipe will be 20m away from the shoreline to prevent ponding against riparian vegetation.

Water ponds at the lowest adjacent points to the discharge, but in the long term, no environmental consequences have been determined (Outback Ecology & actis Environmental 2013).

Low

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Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A6ix November 2016

Added salt levels to lake

Groundwater and settling pond discharge water will be regularly sampled to ensure no significant changes in water quality.

There are no apparent cumulative impacts over time, with no residual impacts related to the contribution of salts from past dewatering. Natural flood events enable a dilution of the surface waters of the lake. The salt holding capacity of the sediments is 40,000 times more than the average annual input by dewatering discharge of all current mine operators in 2013 (Outback Ecology & actis Environmental 2013).

Low

Added metals to lake

Groundwater and settling pond discharge water will be regularly sampled to ensure no significant changes in water quality.

Natural flood events enable a dilution of the surface waters of the lake. Levels of metals within the lake surface water and sediment are variable and may be naturally high due to local mineralisation. Potential risks with metal toxicity appear unlikely (AQ2 2016b) as the majority of metals will readily bind to the fine clay particles of the lake sediment, or will form ionic complexes in the high salinities, thus reducing the bioavailability and potential toxicity (Outback Ecology & actis Environmental 2013).

Low

Added nutrients to lake

Groundwater and settling pond discharge water will be regularly sampled to ensure no significant changes in water quality. Blasting may modify nitrogen levels, but this will only occur at some stages of the 27 month mine life.

Natural flood events enable a dilution of the surface waters of the lake, and a natural mitigation of any increased nitrogen levels. Indeed, after flooding, nitrogen levels may rise naturally due to the input of organic matter, and the wetting of sediments and stimulation of microbial action.

Low

Added sediment to lake

The settling ponds will be regularly emptied to ensure continued efficiency of lowering sediment of content of discharged water. Discharge water will be regular monitored for water quality, and will not be released until the settling of sediment has occurred.

Sedimentation has not been considered an issue in the ten year review of the monitoring of potential environmental impacts from dewatering discharge at Lake Carey commissioned by the Lake Carey Catchment Management Group.

Low

Added hydrocarbons to lake

Water with the potential of containing hydrocarbons, such as stormwater from workshop yards, will not be placed into the settling pond/discharge system.

Hydrocarbon release has not been considered an issue in the ten years of monitoring potential environmental impacts of dewatering discharge at Lake Carey.

Low

MATSA GOLD PTY LTD

Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION A6x November 2016

Discharge will affect shoreline riparian vegetation

The discharge point will be 20m to prevent pooling against the shoreline.

There have been no observed effects upon riparian vegetation directly attributable to discharge water (Outback Ecology & actis Environmental 2013).

MATSA GOLD PTY LTD


ATTACHMENT 7: Siting and location

MATSA GOLD PTY LTD


Figure 5: Fortitude Gold Mine – Location in comparison to other saline water discharges at Lake Carey.

MATSA GOLD PTY LTD


Figure 6: Aerial map and tenements for Fortitude Gold Mine

MATSA GOLD PTY LTD


ATTACHMENT 9: Other relevant information

AQ2 (2016a) Fortitude Gold Mine Groundwater report AQ2 (2016b) Fortitude Gold Mine Surface Water report

MATSA GOLD PTY LTD


ATTACHMENT 10: Proposed fee calculation

MATSA GOLD PTY LTD


10A: Detail of costs of works Preliminary Capital Cost - Dewatering Infrastructure A pre-feasibility level cost estimate for the pit dewatering infrastructure required at Fortitude Gold Mine is summarised in Table 6, with more detail provided in Table 7. Table 6: Capital Cost Summary to equip five dewatering bores

Item Capital Cost

Bore Fit-Out $572,000

Pipework $127,000

Settling Ponds $55,250

Preliminaries $75,475

Construction Management (EPCM) $113,213

Contingency $226,425

Total $1,169,863 Note that the costing is for five water bores, when it is likely that only three or four bores will be equipped at any one time.

MATSA GOLD PTY LTD


Table 7: Capital cost estimate of Fortitude Gold Mine pit dewatering infrastructure

ITEM unit cost unit quantity Total

Bore fitout

Grundfos SP46-20 (30kW) (inc cables) $20,000 ea 2 $40,000 Grundfos SP17-14 (39.2kW) (inc cables) $15,000 ea 2 $30,000 Grundfos SP417-8 (35.5kW) (inc cables) $13,000 ea 1 $13,000

pump column $60 m 600 $36,000

pump shroud $1,000 ea 5 $5,000

Bore headworks (stainless steel) $4,000 ea 5 $20,000

instalation $20,000 ea 5 $100,000

Control panel (inc soft starter) $30,000 ea 5 $150,000

Diesel generator $30,000 ea 5 $150,000

fuel pod $3,000 ea 1 $3,000

electrical instalation $5,000 ea 5 $25,000

subtotal $572,000

Pipework

110DN HDPE pipe (supply & instal) $25 m 3500 $87,500

200DN HDPE pipe (supply & instal) $70 m $0

Outfall structure $25,000 allow 1 $25,000

misc (valves, road crossings etc) $15,000 allow 1 $15,000

subtotal $127,500

Settling Ponds

Excavation $20 m3 2500 $50,000

pipework $70 m 75 $5,250

standpipe (supplied by contractor) $0 ea 1 $0

subtotal $55,250

TOTAL $754,750

preliminaries 10% $75,475

EPCM 15% $113,213

Contingency 30% $226,425

GRAND TOTAL $1,169,863

MATSA GOLD PTY LTD


10B: Proposed Fee Calculation Licence and works approval amendments fee calculation (from 1 August 2016). The fee prescribed for an application for an amendment to a works approval or licence is based on a unit value for 2016-2017 of $3.40 per unit, calculated (in accordance with regulation 5BB of the Environmental Protection Regulations 1987):

for a single category of prescribed premises to which the works approval or licence relates, by using the fee unit number corresponding to the prescribed premises category and relevant production or design capacity threshold in Schedule 4 Part 1 of the Environmental Protection Regulations 1987.

Works Approval Fee Works approval fee calculator: www.der.wa.gov.au/WorksapprovalFeeCalculator Category 06 – Mine dewatering Capacity range – Not more than 100 000 tonnes/yr Premises construction cost – More than $1,000,000 but not more then $1,500,000 Total Works Approval Fee = $4959.00 Licence Fee Licence fee calculator: www.der.wa.gov.au/LicenceFeeCalculator Part 1: Category 06 – Mine dewatering Capacity range – Not more than 100 000 tonnes/yr Fee - $1043.61 Part 2: Waste type – 4203 – Water to allow mining of ore More than 10 000 but not more than 100000 tonnes per year Fee - $3403.65 Part 3: 0 Total licence fee = $4447.26

http://www.der.wa.gov.au/WorksapprovalFeeCalculator

http://www.der.wa.gov.au/LicenceFeeCalculator

MATSA GOLD PTY LTD


Attachment 10: Proposed fee calculation Summary of proposed fees Proposed works approval fee (see Schedule 3 of the Environmental Protection Regulations 1987) Fee component Proposed fee Cost of works: $ 1 363 000 $ 4 959.00 Proposed licence fee (see Schedule 4 of the Environmental Protection Regulations 1987) Part 1 Component $1043.61 Part 2 Component $3403.65 Part 3 Component 0 Total proposed licence fees: $4447.26 Proposed works approval and licence amendment fee (see Schedule 4 Part 1 of the Environmental Protection Regulations 1987 and Part 10 of this application form) Fee units Proposed fee $n/a Note: (1) DER has fee calculators available on its website: - Licence: www.der.wa.gov.au/LicenceFeeCalculator; and - Works approval: www.der.wa.gov.au/WorksApprovalFeeCalculator. (2) Different Fee Units apply for different fee components. Fee Units may also have different amounts depending on the period in which the calculation is made. (3) Refer to Part 10 of this application form for instructions on fee calculations for applications to amend works approvals and licences Detailed breakdown of proposed licence fees Premises component Proposed licence fee: Part 1 Premises (see Part 1 of Schedule 4 of the Environmental Protection Regulations 1987) Premises: M39/709, M39/710 & M39/1065

Sub total $ 1043.61 Discharges to air, onto land, into waters Proposed licence fee: Part 3 Discharges to air (see Part 3 of Schedule 4 of the Environmental Protection Regulations 1987)

Discharges to air Discharge quantity Discharges to air Discharge

quantity Carbon monoxide 0 Nickel 0 Oxides of nitrogen 0 Vanadium 0 Sulphur oxides 0 Zinc 0 Particulates (PM10 and PM2.5)

0 Vinyl chloride 0

Volatile organic compounds

0 Hydrogen sulphide 0

Inorganic fluoride 0 Benzene carbon oxysulphide

0

Aluminium 0 Carbon disulphide 0 Arsenic 0 Acrylates 0 Chromium 0 Beryllium 0

http://www.der.wa.gov.au/LicenceFeeCalculator

http://www.der.wa.gov.au/WorksApprovalFeeCalculator

MATSA GOLD PTY LTD


Cobalt 0 Cadmium 0 Copper 0 Mercury 0 Lead 0 TDI (toluene-2,

4-di-iso-cyanate) 0

Manganese 0 MDI (diphenyl-methane di-iso-cyanate)

0

Molybdenum 0 Other waste - 4203 0 Subtotal $3403.65 Proposed licence fee: Part 3 Discharges onto land or into waters (see Part 3 of Schedule 4 of the Environmental Protection Regulations 1987)

Discharges onto land or into waters Discharge quantity

1. Liquid waste that can potentially deprive receiving waters of oxygen (for each kilogram discharged per day) —

(a) biochemical oxygen demand (in the absence of chemical oxygen demand limit)

0

(b) chemical oxygen demand (in the absence of total organic carbon limit)

0

(c) total organic carbon 0 2. Biostimulants (for each kilogram discharged per day) —

(a) phosphorus 0 (b) total nitrogen 0

3. Liquid waste that physically alters the characteristics of naturally occurring waters —

(a) total suspended solids (for each kilogram discharged per day)

0

(b) surfactants (for each kilogram discharged per day)

0

(c) colour alteration (for each platinum cobalt unit of colour above the ambient colour of the waters in each megalitre discharged per day)

0

(d) temperature alteration (for each 1°C above the ambient temperature of the waters in each megalitre discharged per day) — (i) in the sea south of the Tropic of Capricorn (ii) in other waters

0

4. Waste that can potentially accumulate in the environment or living tissue (for each kilogram discharged per day) —

(a) aluminium, arsenic, cadmium, chromium, cobalt, copper, lead, mercury, molybdenum, nickel, vanadium and zinc

0

(b) pesticides 0 (c) fish tainting wastes 0

MATSA GOLD PTY LTD


(d) manganese 0 5. E coli bacteria as indicator species (in each megalitre discharged per day) —

(a) 1 000 to 5 000 organisms per 100 ml

0

(b) 5 000 to 20 000 organisms per 100 ml

0

(c) more than 20 000 organisms per 100 ml

0

6. Other waste (per kilogram discharged per day) —

(a) oil and grease 0 (b) total dissolved solids 0 (c) fluoride 0 (d) iron 0 (e) total residual chlorine 0 (f) other 0

Subtotal $ 0 Information and data used to calculate proposed fees The detailed calculations of fee components, including all Information and data used for the calculations are provided in the specified annexures to this application. Proposed fee for works approval Annexure No Details for cost of works n/a Proposed fee for licence Annexure No Part 1: Premises n/a Part 2: Waste types n/a Part 3: Discharges to air, onto land, into waters n/a Prescribed fee for clearing permit (only required if clearing deviates or extends from that proposed in works approval or licence application) Please indicate the clearing permit application fee Area Permit: n/a $50 for an area of less than one hectare n/a $100 for an area between one hectare and 10 hectares n/a $200 for an area of more than 10 hectares Purpose Permit: n/a A $200 fee is required for all purpose permit applications

MATSA GOLD PTY LTD

Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION November 2016

ABBREVIATIONS

DER Department of Environmental Regulation ESRI Environmental Systems Research Institute FRP Fiberglass replacement panels HDPE High density polyethylene LCCMG Lake Carey Catchment Management Group LOM Life of mine LOR Limit of recording NVCP Native Vegetation Clearing Permit WL Water level SG Specific gravity SWL Static water level WL Water level

MATSA GOLD PTY LTD

Lake Carey Project – Fortitude Gold Mine WORKS APPROVAL & LICENCE TO OPERATE APPLICATION November 2016

REFERENCES AQ2 (2016a) Groundwater Management. Lake Carey Project – Fortitude Gold Mine Unpublised report prepared for Matsa Gold. October 2016 AQ2 (2016b) Fortitude Project – Surface Water Management Report. Unpublised report prepared for Matsa Gold. October 2016 BOM 2016. Bureau of Meteorology - online climate data http://www.bom.gov.au/climate/ DER (2015) Environmental Risk Assessment Framework (Draft) Division 3, Part V, Environmental Protection Act 1986 https://www.der.wa.gov.au/images/documents/our-work/consultation/gs-assessment/draft_GS_Environmental_Risk_Assessment_Framework.pdf DER (2016) Guidance Statement: Licensing and Works Approval processes https://www.der.wa.gov.au/images/documents/our-work/licences-and-works-approvals/gs-licence-and-works-approval-process.pdf Environmental Protection Regulations 1987. Schedule 1 http://www.austlii.edu.au/au/legis/wa/consol_reg/epr1987404/sch1.html Johnson SL, DP Commander & CA O’Boy (1999) Groundwater Resources of the Northern Goldfields, Western Australia. Water and Rivers Commission Hydrogeological Report Series. Report HG2. Morgan KH. (1993) Development, sedimentation and economic potential of palaeoriver systems of the Yilgarn Craton of Western Australia. Sedimentation Geology 85: 637-656. Outback Ecology & actis Environmental (2013). Lake Carey: A 10 year overview. Unpublished report prepared for the Lake Carey Catchment Management Group. October 2013.

http://www.bom.gov.au/climate/

https://www.der.wa.gov.au/images/documents/our-work/consultation/gs-assessment/draft_GS_Environmental_Risk_Assessment_Framework.pdf

https://www.der.wa.gov.au/images/documents/our-work/consultation/gs-assessment/draft_GS_Environmental_Risk_Assessment_Framework.pdf

https://www.der.wa.gov.au/images/documents/our-work/licences-and-works-approvals/gs-licence-and-works-approval-process.pdf

https://www.der.wa.gov.au/images/documents/our-work/licences-and-works-approvals/gs-licence-and-works-approval-process.pdf

http://www.austlii.edu.au/au/legis/wa/consol_reg/epr1987404/sch1.html

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