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Department for Manufacturing,

Innovation, Trade, Resources and Energy

Mineral Resources for Future

Generations

www.dmitre.sa.gov.au

Simexmin Ouro Preto

2014

Metal demand continues to grow rapidly

This puts severe pressure on industry to find and develop new mines

2

0

10

20

30

40

1900 1920 1940 1960 1980 2000 2020 2040

Forecast Demand Based on 3% pa growth

Historic Demand Average growth rate of

2.8% pa over last 24 years

Copper Mine Production (Mt pa Cu)

Cumulative copper

production for all history

(1000 BC to 2013 AD)

= 629 Mt Cu

In the next 24 years 635 Mt of

copper will need to be mined

… that’s equal to the total

amount produced in all

history to-date !

… and half of this was mined in the

last 24 years

Source: MinEx Consulting © May 2014 , based on historic data from USGS

Strong demand for some of the high tech metals

– but their overall market is still quite modest

3

Growth rates for minerals and metals: 2003-2013

-10%

0%

10%

20%

0,01 0,1 1 10 100 1000

Compound Annual Growth rate (tonnes basis) Bulk Minerals

Industrial Minerals

Base Metals

Light Metals

Precious Metals

High Tech

Other

Total Sales Revenue in 2013

(US$ Billion)

Cement

Iron Ore

Thermal Coal Coking Coal

Tantalum

Gallium

Germanium

Lithium

REE Copper

Aluminium

Gold

Nickel

Cobalt

Source: USGS Mineral Commodity Summaries

Uranium

PGM

Silver

Silicon

Lime

Zinc

Note: Compound Annual Growth Rate was calculated by comparing World mine production for a given commodity in 2013 against 2003.

Phosphate

Potash

Exploration is becoming more difficult & expensive

Exploration expenditures and discoveries in the Western World

4 Source: MinEx Consulting © February 2014

Note: Discoveries are Based on deposits > 100koz Au, >100 kt Cu, > 250kt Zn+Pb, >10kt Ni, >5 kt U3O8 or equivalent size Excludes Bulk Mineral discoveries and satellite deposits found within existing camps

Number of Discoveries 2013 US$ Billion

$2.4b

$18.8b

$12.3b

Even after adjusting for

unreported discoveries, in

the last 5 years a large gap

has opened up between

expenditures and the

number of deposits found

… and we having to explore under deeper cover

Depth of cover for Base Metal discoveries in the World: 1900-2013

5

Note: Based on an analysis of 818 Primary Cu, Zn, Pb and Ni deposits > 0.1 Mt Cu-equivalent

Bubble size refers to Mt Cu-eq of pre-mined Resource, as calculated using the average metal price for 2011-2013

Excludes satellite deposits within existing Camps. Excludes nickel laterite deposits

Source: MinEx Consulting © March 2014

The step increase in the

depth of cover (post 1945)

was due to innovations

in geophysics

Olympic Dam

Depth of Cover (Metres)

Talnakh Lubin

Pampa Escondida

Escondida

Innovations in GPx will play a key role in the future

Primary search method used at the prospect-scale for Base Metal discoveries (>0.1 Mt Cu-eq) in the World: 1900-2012

6 Source: MinEx Consulting © July 2013

0%

20%

40%

60%

80%

100% Serendipity

Prospector

Other

Drilling (Sole Method)

Visual

Conceptual/Geological

Geological Mapping

Extrapolated from KnownMineralisationGeochem

Geophysics + Geochem

Geophysics

Country & Social Risks are impacting on projects

It is taking longer to get a discovery into production, especially in

emerging countries

7

7.1 Years

18.1 Years

9.8 Years

Years Delay

Discovery Year

Gold

Note: Bubble size refers to the pre-mined Resource Analysis based on 686 primary gold deposits >0.1 Moz found in the World

Source: MinEx Consulting © March 2014

•We need new tools to explore undercover 100m to

1000m

•We need innovative approaches between exploration ,

mining and land owners and other stakeholders

•We need supportive governments to provide certainty

for long term decisions

•Sustained commitment to partner with industry in

recording , preserving and presenting precompetitive

data

8

As professionals in the industry we have a grand

challenge

Mines Of South Australia

Olympic Dam Development – Ore Body SectionCa

10

Olympic Dam: a world class deposit

Slide 11

0

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60

80

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120

140

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An

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uic

am

ata

El T

en

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asi

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sb

erg

Oyu

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lgo

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na

ne

a

Pe

bb

le

0

500

1,000

1,500

2,000

2,500

OL

YM

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DA

M

Alu

m S

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le (

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)

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ura

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Cig

ar

La

ke

0

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250

300

Witw

ate

rsra

nd

Ca

mp

Gra

sbe

rg (

Co

pp

er)

OL

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PIC

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Mu

run

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Su

kho

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Na

talk

a

Lih

ir

Ne

wm

on

t - N

eva

da

Million tonnes Copper Thousand tonnes U3O8

Largest uranium

deposit in the world

3th largest gold


Sources: Company Annual Reports, press releases and International Atomic Energy Agency (as at September 2012. Witwatersrand figure is BHP Billiton estimate and is approximate only. # Based on reported mineral “inventory” at 0.2% Cu cut-off grade. Chart depicts Mineral Resources for Olympic Dam and Escondida on a 100% basis. The Mineral Resource information on this slide pertaining to Olympic Dam and Escondida was sourced from and should be read together with and subject to the notes set out in the BHP Billiton 2012 Annual Report. The Mineral Resource information pertaining to Escondida referenced on this slide is based on information known to Richard Preece who is a Fellow of the AusIMM and a full-time employee of BHP Billiton. Mr Preece has sufficient experience which is relevant to this style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves‟ (The JORC Code). Mr Preece verifies that this report is based on and fairly reflects the Mineral Resource information in the supporting documentation and agrees with the form and context of the information presented.

~760

Million oz Gold

5th largest copper


Olympic Dam Geology - Summary

Slide 12

Key Points

• ~350m of unmineralised ‘cover sequence’ – undeformed/unaltered Late Proterozoic to Cambrian shales,

quartzites/ sandstones and dolomites

• Deposit exposures are limited to: – diamond core:

• ~736 km from underground

• ~1,420 km in ‘basement’ (from surface)

• ~400 km of underground development

– ~400 km of underground development

• Hydrothermal Fe-oxide Cu-U-Au deposit

• Olympic Dam Breccia Complex (ODBC) – ~50 km2 at the ‘basement’

• Hosted within the ~1590 Ma Roxby Downs Granite

• Deposit wide zonation patterns – alteration (Fe+2 → Fe+3)

• magnetite+chlorite → hematite+sericite

• siderite → fluorite → barite

– sulphide mineralisation (py→cp→bn→cc→Cuo)

• hypogene, no evidence of supergene

– uraninite-coffinite-brannerite (complex zonation)

– two occurrences of gold:

• sulphides

• margins of the ‘barren’ hem-qtz breccias

• Orebody ~6km x 3km x 800m

• Still open laterally and at depth

1% Copper shell

Existing underground

Basement ~350m depth

Cover Sequence

Geology and Mineralogical Zonation of the Olympic Dam Fe-oxide Cu-U-Au-Ag Deposit, South Australia

N

Diamond Drill Hole Collars

Slide 13

Diamond Holes:

• 9767

• ~2150 km

(basement only)

UG Drilling:

• 8072 holes

•~1415 km

Surface Drilling:

• 1695 holes

• ~735 km

• 52% since 2005

Residual Gravity


Roxby Downs Granite (RDG)

Slide 14

Roxby Downs Granite

‘biotite-out’

‘unaltered’ RDG

‘biotite-out’ • magmatic biotite chlorite

• amphibole chlorite

• magmatic magnetite hematite

• Na-plag ser (partial alteration)

0

10

20

30

40

50

60

70

2,5 3,0 3,5 4,0 4,5 5,0

Fe

(w

t%)

Bulk Dry Density (g/cm3)


2 km

Altered Roxby Downs Granite

Slide 15

Altered, weakly brecciated

‘biotite-out’

‘5 % Fe’

GRNB

‘GRNB’ (altered, weakly brecciated RDG) • Na-plag ser (almost complete)

• porosity increases

• Fe < 5 wt%


ODBC: Granite- to Hematite-Rich Breccias

Slide 16 Geology and Mineralogical Zonation of the Olympic Dam Fe-oxide Cu-U-Au-Ag Deposit, South Australia

‘Rock Type’ -350mRL

Slide 17

A

680000E 682000E

6630000N

6632000N

B

C

D

P

P

P P P

RD1988

RD2773

P P

qtz

veins

5% Fe


‘Rock Type’

Slide 18

B C

D

SW NE SW NE

SW NE

58000E mpg 58000E mpg

58000E mpg

Meters below sea level

No vertical exaggeration

mpg = OD mine plan grid


Sericite-Orthoclase (-350mRL)

Slide 19

A

680000E 682000E

6630000N

6632000N

B

C

D

HEMQ


Sericite-Orthoclase

Slide 20

B C

D

SW NE SW NE

SW NE

58000E mpg 58000E mpg

58000E mpg

HEMQ





Pyrite-Chalcopyrite-Bornite-Chalcocite

Slide 21

680000E 682000E

6630000N

6632000N

A

B

C

Cu-Fe Sulfides

Non-sulfide

py-cp (Cu:S 0.0-1.0)

cp-bn (Cu:S 1.0-2.5)

bn-cc (Cu:S 2.5-4.0)

5% Fe

2011 Resource Outline


Pyrite-Chalcopyrite-Bornite-Chalcocite

Slide 22

Cu-Fe Sulfides

Non-sulfide

py-cp

cp-bn

bn-cc

NE




SW NE

-500

-1000

58000E mpg

SW

-500

-1000

58000E mpg

-500

-1000

SW

58000E mpg

A B

C


Sulphide Abundances (-400mRL)

Slide 23

bornite chalcopyrite pyrite

wt% sul


Hematite-Orthoclase-Sericite (-400mRL)

Slide 24

hematite orthoclase sericite


Siderite-Fluorite-Barite (-400mRL)

Slide 25

siderite fluorite barite


Mo-Pb-Zn (-400mRL)

Slide 26

Mo Pb Zn


Conclusions

Slide 27

***Comprehensive geological/geochemical/mineralogical/geometallurgical database***

• Edges of breccia complex are better defined (previously limited definition)

• Deposit wide zonation patterns for:

– sulphides(py→cp→bn→cc→Cuo, previously known)

– hematite, orthoclase-sericite

– siderite-barite-fluorite

• Remnants of advanced argillic alteration (sericite+quartz±Al-OH) (previously unknown)

• Recognition of Zn-Pb-Mo-Sn-W systematics (previously unknown)

• More evidence for distal or paragenetically early mineralisation (previously unknown)

• Exposure of extensive mafic/ultramafic dykes (previously known, but aerial extent has increased)

• Exposure of two spatially extensive sedimentary units (extent previously unknown)

• +90 minerals have been identified

• Comprehensive dataset alllow for drill dection over 10 km away from centre


© HiSeis 28

Line D 1000 m cover, migrated stack in depth

Legend of Geographical locations along NS seismic profile:

1. Drill hole Blanche 1

2. Drillhole RU39-5371 ~2.3km N from the seismic profile

The depth of the Blanche 1 drill hole

The base of Pandurra Formation based on drilling

Map Scale 1: 25 000

6 km

© HiSeis 29

De

pth

(m

)

30 km

10 km

Olympic Dam

Woomera Borefield Road North

r <50 Wm r >1000 Wm

r ~1000 Wm

r <50 Wm r <50 Wm

1 km spaced broadband survey

Olympic Dam

Graham Heinson, Stephan Thiel, and Paul

Soeffky

University of Adelaide Electrical Earth

Imaging group

rox00

0

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X00

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rox03

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20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200

0

-10000

-20000

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Distance (Km)

De

pth

(m

)

1000

794

631

501

398

316

251

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126

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79

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Ohm.m

Upper mantle

Brittle upper crust

Ductile lower crust

Wirrda Well - Acropolis

Olympic Dam Vulcan ? Woomera (South)

(North)

Fluid pathways

Upper mantle

Brittle upper crust

Ductile lower crust

Wirrda Well Acropolis

Olympic Dam

Vulcan ?

Fluid pathways

Previous drilling on the eastern Gawler craton,

‘Olympic Province’ provides example of

current practice under deep cover

Decision to drill based on 2

channels of data

Many false +ves

Expensive

Sparse, inconsistent data

Minimal iterative knowledge to inform follow-up drilling

Image courtesy of Simon van der Wielen

Coiled Tubing Drill Rig

Autonomous Sonde

Lab-at-RigTM

• CTD achieves 2x ~1,000m Alberta gas

wells per day in soft, predictable

sedimentary rocks

• 2-3 hours move in and rig up time

• penetration rates: up to100m/hr

• CTD offers improved cost, safety, and

environmental impact in mineral exploration

• key challenges for mineral exploration

include: coil durability and low weight-on-bit

drilling

• initial target: greenfields rig to 500m, weight

less than 10 tonnes and $50/m

Coiled Tubing Drilling for Minex

Coiled Tubing Drill Rig

Downhole sensing: Autonomous Sonde

Alternative

Configurations!

Logging while

pulling rods Sonde deployed

before rod pull

New

config

ura

tions

Image courtesy of Simon van der Wielen

Olympic Domain DET CRC Deep

Prospecting Strategy

Identify target based on geophysics and prior

drilling

Subtle feature in regional gravity survey



Systematically sample target area with cheap,

rapid drilling + real time analyses

Hole on gravity high ‘fails’

but pathfinder geochemistry in all holes

hints at a broader pattern and informs follow up

drilling

5km grid pattern

Pathfinder element X Anomaly Background




Prioritise follow up drilling on-the-fly

Expand drill pattern and

chase geochemical gradients toward the east

and north

Identify alteration footprint

5km grid pattern

‘failed’ initial target




Prioritise infill drilling on-the-fly

Identify hot-spots within

the footprint for deep targeting with high level of

confidence

5km grid pattern

‘failed’ initial target



Expanded regional survey identifies new

target zones for infill and follow-up drilling

Begin to map the

mineralising system


Targets based on broad bandwidth of data

reduces false +ves and allows recognition of

new deposit styles

Conclusion

•Metal demand is rapidly increasing

•Strong demand for some of the high tech metals

– but their overall market is still quite modest

•Exploration is becoming more difficult &

expensive

•… and we having to explore under deeper cover

•Country & Social Risks are impacting on projects

•Innovations in Geophysics and rapid deep Drilling

will be essential a key role in the future

45

simexmin - adimb paul heithersay.pdf · iron ore thermal coal coking coalpotash tantalum gallium...

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