Uncovering the Greatest Challenge for Mineral Discovery

South Australia Exploration and Mining Conference 2015

Uncovering the Greatest Challenge for Mineral Discovery

Steve Hill, Miles Davies & Ted TyneGeological Survey of South Australia and Mineral Resources Division

www.statedevelopment.sa.gov.au

This Presentation…1. Introduction / Context2. New Results from GSSA / PACE

– Gawler Craton– Far West– Statewide

3. Into the Future – Copper Strategy– PACE COPPER– State Drill Core Reference Library…

1. Introduction / Context

Objectives and place of precompetitive geoscience on the pathway to discovery

MSDP August 2015 (Photo: S.Hill)

DiscoveryThe strength of the mining industry is sustained through new discoveries.If you don’t have discoveries then you don’t have mines.

Geoffrey Blainey ACAugust 2013

Great, but how do we sustain new discoveries….?

Moon Plain, Stuart Shelf, SA (Photo S.Hill)

The DISCOVERY challenge…The covered minerals search space across 80% of South Australia!

The role of Government….1. Just let it happen?

– “They are big boys and girls … let competitive nature take care of it … we don’t pick winners … good luck, let us know when you are successful ….”

2. Attract, stimulate and partner?– “Attracting exploration investment is competitive so

what can we do to give us the edge? How can we make a difference? United we stand….”

The Case for Pre-competitive Geoscience…• Royalties on minerals are charged by state and territory governments, as the owners

of the minerals in the ground• Further incentives for state/territory governments to have a strong mining industry also

includes employment, community economic benefit, infrastructure development, critical mass, offer best-practice resource recovery etc.….

• Pre-competitive geoscience reduces exploration investment risk and provides more informed decision making

• Highlights the state/territory prospectus for mineral exploration opportunities

• Objective to host the best quality and quantity of mineral exploration for the best potential for mineral discovery and thereby sustain a strong mineral industry

• Can we afford not to support this?

Government / Private Drivers of Discovery (a.k.a. “The Magna Carter”)

Land Access

Human & Intellectual CapitalEducation and trainingR&D – new exploration and processing technologies

Precompetitive Geoscientific Data and Information

Capture and DeliveryValue-add ResearchUnderexplored / Covered RegionsTargeted Programs Discovery

Quality of Exploration

Quantity of Exploration

Geos

cienc

e Aus

tralia

; CSI

RO, U

of A

; SAC

OME;

GSS

A

Availability of Finance

GREENFIELDS

Adapted from Derek Carter

From: Richard Schodde,

MinexConsulting 2015

Nationwide Geological Mapping and Geophysical Surveys

From Richard Blewett Geoscience Australia, 2015

From:Richard Schodde

Minex Consulting 2015

The Mineral Exploration Expenditure ‘Wave’

12

PACE – 10 years of economic impact from ~$55M investment

Fifteen significant exploration successes

from collaborative drilling

Extra $700 million in private mineral

exploration expenditure

Extra mineral production value of

$2.4bn

14Department of State Development

1 2 3 4 5 6 7 8PACE 2.0 2.0 2.0 2.0 2.0 1.4 1.7 13.05 2.0

Actual 1.03 2.76 1.58 1.37 1.37 1.26 0.76 10.14 2.0

Industry 0.67 4.61 3.96 4.62 7.11 3.11 3.21 27.29 4.9

($ in Million) 44.0

Collaborative Drilling

7 Rounds completed

438 drilling proposals217 receiving PACE support154 Complete


State Initiative Funding – 13/14 to 16/17

2013/14 2014/15 2015/16 2016/17WA 18.8 20.6 10.0 10.0Vic 6.0 11.0 9.9 9.9Qld 16.0 10.0 10.0 no dataNSW 6.5 6.5 5.8 5.6NT 3.8 5.95 5.95 5.95SA 3.8 4.8 15.98 9.8Tas 0.4 0.1 - -

National Mineral Exploration Strategy & UNCOVER

AMIRA’s industry focused UNCOVER Roadmap now available via uncoverminerals.com

2. New Results from GSSA / PACE in 2015

Eucla seismic line acquisition (Photo: Courtesy Geoscience Australia)

1. Gawler Craton2. Far West3. Statewide

A 1590 Ma crustal section for South Australia?

ISCG

Mineral System Map for enlarged target / vectoring

19

• Increase the size of the target• Predict where you are within the mineral system

• IOCG deposits - large alteration systems

Coiled Tubing Drill Rig

Autonomous Sonde

Lab-at-RigTM

WUDINNA KIMBA WHYALLA

PORT AUGUSTAParis Menninnie

Dam

IronDuke

Uno

PORT LINCOLN

MinotaurExploration

KingstonResources

Mineral Systems Drilling Program –Southern GRV margins

Gawler Range Volcanics cover

Drilling July 2015 to April 2016From $2 M PACE fund into > $7 M program!

August 2015 photos of MSDP

MSDP Summary UpdateProgram summary• Currently drilled ~4200m/7500m• Drilling began 31st July 2015. Planned

completion date is end April (~9 month program)

• Christmas Shut down Dec 15th – 4th Jan• Completed 2787.8m (4 holes) with Kingston

Resources, incl. a key stratigraphic hole of 1116.8m which intersected previously unknown Lower GRV units (mafic and felsic)

• Currently drilling a 3rd hole in the Peltabinnaregion with Minotaur Exploration

MSDP Technology Deployment• Deployment of DET CRC technology: LAR®, LAR Fluids, Wireless Sub (Gen 1, Gen 2),

AutoSonde™ (gamma and recently mag susc)

• Recently conducted VSP and short surface seismic surveys around 2 drillholes - fast and inexpensive seismic surveys x 2 (bobcat mounted weight drop) + draggable geophone string.

MSDP02

MSDP Technology – Lab-at-Rig®

Includes “Real Time Drill Site” project funded by MIPO- Develop a dashboard to view real-time DET CRC data

The Mineral Systems Drilling Program 2015

Keep up-to-date online!Minerals.statedevelopment.sa.gov.au/msdp

26

Integrating geological mapping with the Mineral Systems Drilling Program

New 100K geology for Cariewerloo

Finding a new mineral province in Western Gawler Craton / ‘Coompana’ (TMI backdrop)

‘Coompana’ FowlerDomain

GawlerRanges

Deep crustal seismic line

(GA, AusScopeGSWA, GSSA)

SA’s largest airborne magnetics /

radiometrics survey• 249,000 line km survey

data• Tender awarded to GPX

Surveys

Regional Magnetotellurics50 km AusLAMP grid

Regional Plant BiogeochemistryColin Dunn & Helen Waldron

Coompana TMI

Now available on SARIG

• 400 m flight lines gridded to 80 m

• 200 m flight lines gridded to 40 m


Western Gawler Craton seismic releaseEucla-Gawler deep crustal reflection seismic profile (13GA-EG1) – 834km profile from Haig in WA to Tarcoola in SA

Collaborative project between multiple agencies

Line processed in 2 parts:– 360 km Western Gawler Craton section

(13GA-EG1E) first: Interpretations and results now available

– Madura/Coompana Province sections: Interpretations released at dedicated session at AESC 2016

SA section cost $3.15M with $1.75M from SA Government and $1.4M from GA and AuScope


13GA-EG1E - Interpretations


Integrated InterpretationsThrough the seismic interpretation process and integration of existing geological knowledge we have recognised 10 individual events (E) affecting the western Gawler Craton

• E1 – Pre Mulgathing Complex structure• E2 – Deposition of Mulgathing Complex• E3 – Sleafordian Orogeny• E4 – Nawa and Fowler Deposition• E5 – Kimban Orogeny

• E6 – St Peter/Coompana magmatism• E7 – Kararan Orogeny/Hiltaba Event• E8 – Coorabie Orogeny• E9 – Officer Basin• E10 – Eucla Basin


Data ReleasesSEG-Y Data Avaliable

Report of Extended Abstracts Available (RB 2015/29)

Poster Plate of interpretations Available

All now available to download from the minerals website

December 10 workshop

http://minerals.statedevelopment.sa.gov.au/geoscience/geoscientific_data/geophysical_data/recent_government_surveys

Magnetotellurics


• Measures time-varying electric (E) and magnetic (B) fields of the Earth

• Maps the electrical resistivity of the earth

• Sensitive to largely minor conducting phases

• Ability to map from a few metres to hundreds of kilometres

AusLAMP long-period MT time series recording over 3 weeks

AusLAMP–Australian Lithospheric Architecture Magnetotelluric Project


• Regular grid of long-period (10 – 10,000 s) MT data collected every half degree (~55 km), freely available

• Run by Geoscience Australia, University of Adelaide, State Geological Surveys and other research institutions

• ANSIR national MT instrument pool

• Map the lithospheric architecture of the continent

• Constraints on the tectonic evolution of the continent and the mineral exploration potential as part of the UNCOVER initiative

AusLAMP in South Australia


AusLAMP SA

Modelled by Kate Robertson, UofA

Joint project between GA, GSSA, UofA

Mantle-crust connection beneath Craton margin

38Department of State Development 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200

0-10000-20000-30000-40000-50000-60000-70000-80000-90000

-100000-110000-120000-130000-140000-150000-160000-170000-180000

0-10000-20000-30000-40000-50000-60000-70000-80000-90000

-100000-110000-120000-130000-140000-150000-160000-170000-180000

Distance (Km)De

pth

(m)

1000794631501398316251200158126100

79635040322520161310

8654332211

Ohm.m

Updated from Heinson et al., 2006Olympic Dam

Fertile IOCG belt east of the GawlerCraton provides pathways for fluids to penetrate into the crust

Gawler Craton

Moho

BDT

Gawler Craton

EW cross-sections


400

0

100 km

Olympic Dam

Archean core

Archean core

Archean coreGawler Cratonmantle conductor

Eyre Peninsula - graphite

40Department of State DevelopmentThiel et al., 2010

Reprocessed Gravity and TMI for the SGRV, EGP and WPA

• The most recent merging of best available government and open-file data

• > 280 company and government surveys and the gravity grid was produced from more than 300 gravity surveys. The datasets now available via Geophysical Data Downloads are:

• For magnetics– Total Magnetic Intensity (TMI); Reduced to pole (RTP) TMI; First

Vertical Derivative of the RTP TMI and Residual RTP TMI• For Gravity

– Bouguer Gravity; First Vertical Derivative and Residual Gravity

Horizontal Section Z = -10,000 mRL

0

Magnetic Susceptibility (SI) 0.01 0.03 0.05 0.07 0.080.015 0.055 0.0750.0250.005 0.02 0.040.035 0.045 0.06 0.065

1500 km x 1700 km(4 km cell size)

~ 8 Million cells total

Inversion result took 9 hours to run using 128 CPU

Only possible using the NCI

Entire SA Magnetic Inversion Model!!!

[email protected] Mining 2015

Simon van der Weilen, GSSA

Eastern Gawler Craton 3D ModelThe world’s largest 3D integration of diverse data sets produced by Simon van der Wielen, GSSA

Available on SARIG


Data Release! Eastern-Central Gawler Craton Solid Geology

Data package (GDP 00034) containing spatial data and map providing an updated basement geology interpretation following significant recent exploration and data acquisition.

Integrates outcrop, drillhole and geophysical data for an improved “interpretation of what’s down there!”

47

Prospectivitymodelling by Tom Wise

Inputs from New Woomera Prohibited Area Gravity data

IOCG Mineral system target prospectivity modelling


SARIG Precompetitive – Geophysical Data Delivery3D Seismic Surveys

Available Open File Data• 70 Surveys (1981 – 2013)• 16000km2 coverage• ½ Terabyte• Seismic Survey Company Reports• Basin Coverage: Cooper & Otway 2015 “Cloud Service Delivery”o 2016 Time Slice Image Delivery

Time Slice100msec Intervals


SARIG Precompetitive – Geophysical Data DeliveryAirborne Geophysical Survey

Available Open File Data• 308 Surveys• 150 Gigabytes• Survey Company Reports• Statewide Coverage• “Cookie Cut” data from selected area2015 Release Coompana Magnetic2015 WPA-SGRV-EGP Imageso2016 WMS - GeoReferenced Images

WPA-SGRV-EGPTMI

WPA-SGRV-EGPGravity

35 geophysical surveys thathave become publically available in the past year.Includes Sunset releases and surrendered data

Collaborations• Sernageomin (Chile) MoU

– Pre-competitive geoscience and copper mineral systems

• China Geological Survey MoU– Exploration biogeochemistry and geochemistry with the Nanjing CGS Centre

• Saskatchewan Geological Survey MoU– Uranium mineral systems and regultion

• China National Nuclear Corporation (CNNC) MoU– Uranium mineral systems

• Australia Minerals / EIGWG– National Mineral Exploration Strategy

• Deep Exploration Technologies Cooperative Research Centre– Industry Participant and 2015 Mineral System Drilling Program (MSDP)

• Geoscience Australia– Eucla Seismic Line– Coompana Airborne Geophysics– South Australia Geochronology (e.g. SHRIMP analysis)– Statewide Geophysical Inversions– Passive seismic depth to basement pilot study– Western South Australia AusLAMP (50 km magnetotellurics grid)

• CSIRO– Musgraves Province regional AEM survey– South Australia hydrogeochemistry– 2015 Mineral System Drilling Program– HyLogger NVCL

• AMIRA– UNCOVER Industry Roadmap sponsor

• Geological Survey of Western Australia– Eucla Sesmic Traverse

• Geological Survey of New South Wales MoU– Broken Hill Resources Investment Symposium– Seamless geology and regional metamorphism and structure

• AusScope– Eucla Seismic Traverse

• South Australian Chamber of Mines & Energy Inc. (SACOME)– Geoscientist Assistance Program ($425 k 2015/16)

Collaborations• University of Adelaide

– Institute of Mineral and Energy Resources MoU– Chair of Mineral Exploration Under Cover (50% salary Prof David Giles)– AusLAMP magnetotellurics grid (statewide 50 km spacing)– Thermochronology research centre (Analytical infrastructure, PhD and Hons students)– Adelaide Microscopy infrastructure (e.g. TITAN Themis Aberration Corrected Transmission Electron Microscope)– New Zealand Honours Fieldcourse sponsor– MTEC Mineral Exploration Under Cover fieldcourse support– Pyrite and Iron oxide mineral geochemistry– Structural geology of Uranium mineral systems (2 x PhD stipends)– Geochemistry of Bulldog Shale PhD study– Co-supervision of 12 PhD students

• CODES / University of Tasmania– Pyrite mineral geochemistry (Ross Large, Sebastien Meffre, Dan Gregory)– Metamorphic Grade mapping in western Gawler Craton - Mulgathing Complex (Jacqueline Halpin)– Australian Geology Digital Visualisation Project (Michael Roach)

• University of Iowa– Kanmantoo Mineral Chemistry (Paul Spry and students)

• Minotaur Exploration– 2015 Mineral System Drilling Program Collaborative Agreement

• Kingston Resources– 2015 Mineral System Drilling Program Collaborative Agreement

• Investigator Resources MoU– Paris Ag-deposit biogeochemistry and soil geochemistry– Paris Ag-deposit drill core HyLogger study

• Monax Mining MoU– Punt Hill Mineral System mapping case study

• Red Metals MoU– Pernatty HyLogger study

• HiSeis MoU– Stuart Shelf 3D seismic pilot study


Musgrave AEMGSSA / PACE + Goyder (CSIRO & DEWNR) + PepinNiniMultifaceted, Collaborative AEMSurvey• Depth to Basement;

Water Resources; Targeting

• > $1.6M investment

Finalising tender process for planned Q1 2016start

Local University Geoscience…TRaX• Strong undergraduate and postgraduate student numbers in geoscience

• New Excellence Research Australia results place UoA geoscience at the top in the country– top marks (5 - well above work standard) in 'geology' and 'geochemistry' and a '4' (above world standard) in 'geophysics' - this is as high as any university in

the country

• 4 ARC Discovery grants (3 UoA, 1 UniSA) – more than any other geoscience group in the country.– Projects range from understanding what is imaged by MT, through mapping subsurface permeability and better constraining P-T data from metamorphic

rocks to understanding fluid sources in shear zones

• Launch of the ARC Industrial Transformation Research Hub for Australian Copper-Uranium at UoA

• Major new Iron Oxide research team (FOX) funded by BHP Billiton and the SA Mining and Petroleum Service Centre of Excellence

• Excellent GSSA/University/Company links funding honours projects to major ARC applications in understanding IOCG mineralisation, Mapping mineral pathways in the lithosphere (AusLAMP), dating mineralised fault reactivation etc.

• Also TRaX and UniAdelaide developing major research projects with MIM in Mount Isa and in unconventional and conventional petroleum resources throughout the country.

3. Into the Future….

• What might the future hold?


PACE Copper Announcement 30/11/15

• $20 M over 18 months• Deliver the world’s largest high-resolution,

airborne geophysical and terrain imaging survey• Rejuvenate exploration in South Australia’s

Copper Belt• Encourage industry and government

collaboration on new drilling targets• Provide world-class data and analyses towards

discovery of a new minerals province in the State’s Far West


South Australian Copper ResourcesWell-placed to fill the copper gap

68% of Australia’s economic demonstrated copper resource

27% of Australia’s mined copper production

400+ copper exploration licences


Copper Strategy

VisionBy 2030, South Australia will be the leading contributor to Australia’s position as the world’s third largest copper producer.

ObjectiveGrow South Australian copper production to 1 million tonnes per annum (Mtpa) by 2030.


Copper StrategyFocus Areas

• Enhanced support to find and expand copper reserves• Improved cost competitiveness for copper production• Shared commercial research for copper production• Effective engagement to gain a social license to operate• Reducing bottlenecks in processes across the copper value

chain• Collaborative infrastructure development


Copper Strategy1 Mtpa by 2030

2015 production ~ 300,000 tpaNeed another ~ 700,000 tpa• unlocking copper resources

already identified • reserve replacement and

brownfields discoveries• exceptional new discoveries

producing by 2030

discovery

development + production


South Australia’s Copper Discovery Gap

SourceMinEx Consulting

March 2012

Mt C

u-eq

Unlike other locations, South Australia has a huge gap between the largest and second-largest known copper deposit ... this suggests that there is a good opportunity to find more giant deposits.


PACE Copper …• is a discovery and employment focused initiative• Will create and retain up to 1,000 direct and indirect jobs within

the minerals industry and services sector• is a critical upstream component of the State’s Copper Strategy


PACE Copper …• will drive the discovery of new high quality copper resources. • will provide essential foundations for the South Australian

Government Economic Priority #1• will position South Australia to take full advantage of the next

upturn in the resources cycle and build South Australia’s position as a leader and innovator in pre-competitive geoscience


Program IncludesMag/Rad over Gawler Craton• 200m line spacing• ~ 2M line km

Southern Coompana Gravity• 1-2km station spacing

Innovative value-add processing and modelling of new data• e.g. “Coompana challenge”Additional Mineral Systems Drilling • Gawler Craton extension• Coompana program

Aeromagnetic Survey Flight Line Spacing (m)

Karol Czarnota, Geoscience Australia


Program Includes…

PACE Discovery Drilling 2016• Increased funding –

from $100k to $200K• Include support for site clearances and assays / analyses

~$3.0 M programGuidelines and Application Form currently being finalised for January 2016 launch


South Australia – addressing our nuclear future

www.nuclearrc.sa.gov.au


Nuclear Fuel Cycle Royal Commission

Terms of Reference

1. Exploration, Extraction and Milling

2. Further Processing and Manufacture

3. Electricity Generation

4. Management, Storage and Disposal of Waste

Commission to report to the government on recommendations in early May 2016.

$32 M State Drill Core Library - Tonsley

Stay tuned….

State Drill Core Centre, Tonsley

January 2015 October 2015

New core racks and capacity…

The NexGen Core Facility?

Core to Nano-scale characterisation

3D visualisation

Data to Rocks Library

New technology testing facility

From: James Cleverley, CSIRO. SAREIC 2013

Getting ready for future data!

DisclaimerThe information contained in this presentation has been compiled by the Department of State Development and originates from a variety of sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for general information only and does not purport to be professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials.

The Department of State Development and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of these materials. The Department of State Development reserves the right to update, amend or supplement the information from time to time at its discretion.

www.statedevelopment.sa.gov.au

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Uncovering the Greatest Challenge for Mineral Discovery