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By K Firmin

The Mt Tom Price orebody of Hamersley Iron Pty Limited consists of a folded hematite - shale sequence capped by a layer of goethite. Consequently, variations in iron content occur within the ore body, and as the overall grade is below that required to make specification products, selective mining must be carried out. A necessary preliminary to quality control of products based on selective mining is the production of advance data on the tonnages and grades of material to be expected in future mining areas. Bench plans showing zones of different grades and types of material anticipated are prepared from structural geological information. The grades of materials on a bench are essentially governed by the positions and attitudes of the shale bands. Quality control is exercised by blending different grades and types of material in primary crusher feed. Iron grade is the prime grade consideration although sometimes the level of phosphorus content must be considered. Pre-production grades are determined from assay of samples taken from blast hole cuttings. As shales are more friable than hematite, product fines are always lower in iron grade than the lump product. The realisation of contract specification grade is more difficult with fines than with lump, so maintaining the correct fines grade becomes a prime factor in quality control. Control of fines grade is presently effected by aiming for an appropriate feed grade to the primary stockpile. Studies to estimate fines grade directly by qualitatively taking into account material types are in progress. Quality control measures are checked by monitoring the crushing and screening plant output, and taking appropriate compensatory actions in the mine when required. Minor fluctuations in quality of fines can be blended out on stockpiles. The quality control measures described ensure constant quality products, and a good recovery of high grade material from the deposit.

Jan 1, 1971

The area (330 sq. miles) shown on the map of the Brocks Creek District (Fig. 1), was mapped by the Northern Territory geological party of the Aerial, Geological and Geophysical Survey of Northern Australia. This work was done in two stages:-(i) In 1935, an area of 30 sq. miles around the Golden Dyke mine was mapped by P. S. Hossfeld, Senior Geologist, and A. H. Voisey, Assistant Geologist. The results were described in a detailed report (10).(ii) In 1939, an area of 300 sq. miles in the Brocks Creek district was mapped by C. J. Sullivan (Senior Assistant Geologist), and V. M. Cottle and S. N. Kiek (Assistant Geologists) under the general supervision of P. S. Hossfeld (Senior Geologist).An outline structural map, together with some geological notes was published (1), but that map does not show the amphibolites, and the relationship between ore occurrence and general geology is not emphasised. The publication of the detailed maps and reportwas postponed indefinitely as a result of war. The original mapping was based on air photographs with a scale of approximately 1 in. to 1,200 ft., and all detail which could be shown at that scale was mapped. Features recorded included rock types, details of structure, mineralisation, and surface workings, creeks and soil boundaries. Underground mapping was also carried out. The present map is much simplified from the original, but it is hoped that it shows sufficient information to reveal close relationship between structure, granite, sills of amphibolite and gold occurrence. About 50 per cent. of the area is covered by deep soil or alluvium, and in these portions the geology of the underlying rocks was not determined with accuracy, though in many places strike trends could be deduced from air photographs.Because the A.G. & G.S.N.A. had published the geological notes and map referred to above, and because the publication of the detailed report and maps is still postponed indefinitely, approval has been given by the Bureau of Mineral Resources, Geology and Geophysics (which took over the affairs of the A.G. & G.S.N.A. at the termination of its operations) to the preparation of the present paper so that information would be available to the public.The views expressed in this report are those of author. The results of the investigation suggest that in areas where granites are predominantly concordant with bedding, ore deposits may be found at approximately the same stratigraphic horizon. It is thus important to correlate beds even though their relationship may have been obscured by faulting and folding.

Jan 1, 1950

All previous attempts to cut rock in boring by means of revolving steel cutters have failed, chiefly in consequence of the mis-shapen teeth grinding the rock and themselves simultaneously, until, after a very few revolutions, the points of the cutters were so worn that it was impossible to force them into the strata. The diamond drilling plant being cumbrous, complicated, and costly, and seeing that fully 70 per cent of the boring generally needed is in what is known as the" milder strata," it will be readily understood that much of the work done will not pay a dividend on the outlay, so great is the cost of removal, the wear and tear of the machinery, and the loss of diamonds. The Calyx Drill, however, invented by Mr. F. Harley Davis, has been constructed so as to overcome these difficulties, and will penetrate quickly and .at a low cost this 70 per cent. of the milder strata. The Drill has taken ten years' hard work and thought to bring it to its present state of perfection, and it will now drill with steel cutters the 70 per cent of the work performed by the diamond drills at a greater speed and at about one third the cost of the latter.The utility of the diamond drill for certain work is undeniable, but it cannot by any means be described as a machine of general popular usefulness that is to say, it is quite beyond the reach of the great masses of mankind.

By E Apaza, R Neumayr

This paper aims to summarise the discovery of the QTS Central resource, a previously unidentified +1 Mt inferred resource that lies between two major CSA resource systems.The 1.7 Mt at 5.76 per cent Cu, QTS Central ore system represents 1/6th of the CSA mineral resource and was discovered in 2014 based on the accumulation of historic exploration records dating back to 1989.The CSA deposit consists of five ore systems hosted within turbidite-derived siltstones (CSA Siltstone) and lesser sandstones (five per cent) of the Devonian Amphitheatre Group. The host sediments strike approximately north–south with a steep westerly dip and exhibit a well-developed east dipping cleavage. Most CSA mineralisation is hosted within dilation zones at the intersection of cross-cutting structures and is interpreted as epigenetic in origin.Alteration and weak mineralisation, up plunge to the reported QTS Central mineral resource, was initially detected in 1990 during a downhole electromagnetic conductivity (EM) study, where one hole indicated an off-hole conductor, later tested with four diamond holes. One of these diamond holes intersected 3 m at 7.5 per cent Cu at 200 m. Development of the 9070 Subway drive in 2005/2006, linked the QTS North and QTS South workings and intersected structures interpreted to host QTS Central mineralisation. Subsequent drilling proximal to the 9070 Subway in 2007 identified an up plunge extension to the QTS Central zone (UDD07152: 1.8 m at 6.3 per cent Cu from 10.7 m). Work on QTS Central was largely forgotten until 2012 when the mining of a 450 m infrastructure drive provided a platform to test the anomalous grades. In December 2013, drill hole UDD13055A intersected 20.9 m at 7.2 per cent Cu from 378 m. By the end of 2014, the QTS Central inferred resource was 1.0 Mt at 6 per cent Cu and 18 g/t Ag (Hosken and Apaza, 2014). Late in 2016, further infill drilling occurred from two fronts to increase confidence in the QTS Central resource. The results of this drilling are expected late in 2017.The current interpretation indicates the QTS Central system consists of two main lenses hosted within closely bedded sandstones and siltstones. The sandstone in general is not mineralised, being heavily silicified, while the siltstone is mineralised and chloritised. The main mineralised lens is 75–200 m along strike and 450 m high. Massive sulfide feeder structures lie at the core of the two main lenses, although the characteristics of the QTS Central system tend toward the mineralisation being more chlorite-rich than in QTS North and QTS South.CITATION:Apaza, E and Neumayr, R, 2017. The discovery of the QTS Central ore system, CSA mine, Cobar, NSW, Australia, in Proceedings Tenth International Mining Geology Conference 2017, pp 151–156 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

Sapporo-Iwanai district is located at the intersection of the northeast Japan arc and Kuril arc, associated with the subduction zone. This area is characterized by Miocene submarine volcanism followed by Plio-Pleistocene subaerial volcanism.   Koryu, a small epithermal Au-Ag deposit, occurred in Pleistocene (1.4 - 0.85 Ma) within Miocene sedimentary rocks near a subaerial andesitic volcano, while Toyoha, a large epithermal Pb-Zn-Ag (-Au) deposit, also occurred near a subaerial andesitic volcano. Although most of the base metal deposits formed in middle-late Miocene, Toyoha formed in Plio-Pleistocene (2.93 - 1.60 Ma) within Miocene volcanic and sedimentary rocks. This epithermal mineralization was partly overprinted by xenothermal Cu-Sn-In(-Au) mineralization (2.68 - 0.49 Ma).   Hydrothermal alteration differs vastly between Koryu and Toyoha: host rocks at Koryu were not intensively altered, although wall rocks adjacent to veins were silicified, while those at Toyoha show intensive and extensive neutral-pH alterations. Geological and chronological studies show that middle~late Miocene (12.5 - 8.4 Ma) alteration was pervasive and overprinted by Plio-Pleistocene (2.93 - 0.49 Ma) alteration. The base metal veins in the middle-late Miocene were not well developed, but were large in number with great depth.   These studies show that the hydrothermal activity at Koryu is rather small and short-lived, while that at Toyoha is large, long-lived and characterized by overprinting of different hydrothermal systems. The subaerial magmatic activities yielded not only the andesite lavas, but also generated hydrothermal solutions for the formation of both Koryu and Toyoha. The metals were possibly derived from such magma. At Toyoha, the hydrothermal solutions could also remobilize metals from old ores.   The size, life span of magmatic-hydrothermal system, and overprinting on the old mineralizing systems could constrain the type of metal deposits (precious and polymetallic deposits) nearby subaerial andesitic volcanoes in Plio-Pleistocene.

Jan 1, 2005

OWING to the gradual depletion of the hitherto plentiful supply of firewood in the immediate vieinity of Queenstown and Gormanston, which caused a steady increase in the cost of fuel for domestic purposes, the Mount Lyell Company took steps several years ago to make available as a substitute electric current from its Lake Margaret hydro-electric supply. In order to make this practicable it was necessary that the cost of electric power for heating purposes should compare favourably with the cost, of fuel, and the installation of domestic appliances brought within reach of the average householder, and efforts have been continuously directed towards this end since the year 1928.WATER HEATERSThe installation of electrical apparatus in local dwellings began with hot-water services, the heating elements being the types then procurable on the market and adapted to meet requirements.These, however, did not prove satisfactory, but the study of their bilure resulted in a type being developed locally which has overcome all difficulties. The first type of water heater evolved was an outside circulation one the element of which consisted of an iron pipe through which the water passed, insulated with micanite and wound with nichrome wire, the latter being covered with alundun cement to keep it in position and prevent oxidation. This was insulated on its outside surface with a layer of asbestos flour, and connected to the hot-water container as shown in Fig. 1. It was found, however, that the iron pipe had a short life, due to a certain amount of acidity in the water, and a copper pipe was substituted which proved very durable. Some heaters with this improved type of element are still operating after six years of use. The resistance wire is run at a very low current density, which ensures durability.

Jan 1, 1927

The profitability of individual ore blocks can be classed as clearly profitable, clearly not profitable, and those in between which are by nature quite sensitive to their major cost and revenue drivers. It is often the case that the most effort goes into the least profitable ore blocks to ensure that these will in fact not generate a loss. In these cases a cut-off grade policy is often not sufficiently live to separate individual sources given the volatility of financial markets and individual circumstances of some sources particularly in remnant operations such as Mount Isa MinesÆ Lead Mine. Standard sensitivity analysis can determine which factors stope profitability is most sensitive to. However, this does not usually indicate the likelihood of any input change, nor the combined effect of multiple inputs changing. The author attempted to modify the Lead Stream financial model that determines cash margin by inserting probability distribution functions and then using Monte Carlo simulations to determine the probability of any particular ore block making a profit. This effectively demonstrates the combined effect of varying a number of inputs simultaneously to provide a probability of making a profit. The limitations of this analysis lie in the accuracy that individual probability distributions can be specified. Attempts to generate valid functions from first principles have proved difficult for a number of reasons and these are discussed along with some practical alternatives.

Jan 1, 2002

By S Thacker, M Noakes

The Newmont Tanami Operations (NTO), formerly the Granites Gold Mine, commenced operation in the mid-1980s with tailings deposition evolving over the past three decades as production has increased and the operation has expanded. Paddock-style tailings storage facilities (TSFs) and in-pit tailings deposition have fulfilled the tailings requirements for NTO over its lifetime with the technical specifications of these facilities improving over time in line with the positive development of standards, guidelines and best practice.This paper reviews the options for tailings storage facilities at NTO and the many considerations that have been analysed and deliberated upon before settling on specific TSF types and designs. It also explains the operating philosophies of the tailings deposition and how the facilities have always strongly maintained the optimum capture and retrieval of water. The current TSF design and criteria is presented, along with the introduction of dry tails harvesting for use in paste production as a backfill product for the underground mine. Tailings deposition and recovery remains a critical function of the Granites process to ensure long-term operation and gold production.CITATION:Thacker, S and Noakes, M, 2015. Newmont Tanami Operations – tailings storage facilities, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 305–314 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

Recovery of Vanadium from Stone Coal Through an Environmentally Friendly Acid Leaching Technology

Sep 13, 2010

Flow Sheet Development of Three Geographically Distinct Chromium-Bearing Ores

Sep 13, 2010

A way back in 1851-2 an army of diggers had commenced the conquest, of the now famous goldfields of Australasia. At that time, and in the Colony of Victoria, more that 10,000 were camped on and around the slopes of the silurian ridges over which Ballarat East h'as been built. A wonderfully rich golden harvest was soon gathered from the alluvial found high on these slopes, and from runs (or gutters) which got their rise on them, and were traced down gullies into a broad valley. In due course it was ascertained that the valley carried a main gutter which represented the unity of the higher ones, and further explorations proved this gutter to have a westerly and then a southerly trend toward and under a basaltic plateau, on the top ofwhich Ballarat West and Sebastopol now stand. In the records of alluvial gold mining all the world over the Ballarat field can be classed amongst the richest. Gold in pieces the size of beans, in, stringy filigree bits, in dust and in solid lumps (the largest of which weighed more than 2,200 ozs.), was obtained in the comparatively shallow ground on the slopes; and speaking generally, great and uniform richness was met with along a belt of country on which, in a north and south line, the present quartz mines of Ballarat East are at work. It was noticed by the diggers that when the gutters crossed the upturned edges of the ,strata, the gold deposits in them were patchy, and that when they trended north and south on this beltthey carried rich deposits for longer distances. In time it was also noticf!d that a class of stringy, irregular shaped quartz occurrences, in a bottom of soft slates, in the, immediate vicinity of tpe g)ltter, meant greater richness, and (in the aIluvial) on the higher ground slabs of quartz would now and then be met with, in which strings and spongy masses of gold were found. As the shallow alluvial became worked out the diggers turned their attention to the quartz occurrences, and, now and again the striking of a flat make of a very golden nature would cause quite a stir in the local mining world.

By R Blair

The Domain and Burnley Tunnels, which are major features of the Melbourne City Link Project, are MelbourneÆs first road tunnels. They are 1.6 km and 3.5 km in length respectively and are being constructed through a variety of ground conditions. Deeper sections of the tunnels have been driven through the Silurian mudstone which underlies Melbourne. Other shallower sections of the tunnels pass through a variety of ground conditions including silts, sands, clay and rock and have been constructed using both top-down and bottom-up cut and cover construction techniques. The Yarra River Crossing is a 140 m length of the Domain Tunnel which crosses under the Yarra River on a relatively shallow alignment. The crossing of the river using cut and cover techniques was identified in the early stages of design development as being one of the most challenging stages of the works on the Southern Link. The prevalence of varying geological conditions combined with the need for maintained traffic and stream flow conditions provided a demanding and often conflicting set of criteria for which there appeared to be no one clear solution. A team of designers, constructors, estimators and specialist contractors were involved in a concept evaluation and risk analysis study spanning a period of approximately 12 months. During this study, four concepts were considered as likely contenders. This paper provides a brief outline of the four concepts addressing their relative merits, disadvantages and risks followed by a detailed description of the adopted solution, namely top-down construction using secant pile walling (east bank) and bottom-up in situ construction (west bank).

Jan 1, 1999

The objective of a mine planning exercise is to plan a safe mine that maximises net present value (NPV) for the project. Two primary elements are key to design of a mine plan optimised to maximise profit: selection of an optimised production rate and selection of an optimised equipment fleet. Both depend upon accurate estimations of capital and operating costs for the equipment and for the life cycle of the mining operation. Once a trial production rate is determined, a primary equipment fleet, ie excavators, haulers, and blasthole drills, can be determined based on material characteristics and haulage distances and gradients. An auxiliary fleet, dozers, road maintainers, service trucks, etc can be determined using less rigid productivity criteria. With an equipment fleet determined, operating and support personnel can be assigned based on shift requirements and equipment operating needs; and material and supply requirements can be estimated. Knowing the areal dimensions of the major equipment items, road widths and repair shop dimensions can be determined. Personnel numbers and supply requirements determine the square metre sizes of offices, change rooms, and storage facilities. Reliable sources of capital and operating unit prices and costs for all these items are referenced in the paper. Once preliminary capital and operating cost estimates are calculated by applying unit costs to equipment, personnel, material and supply needs, potential profit can be tested using DCF techniques. An optimised mine plan can then be determined by testing the potential profitability of multiple mine production rates. Because of the economies of scale, full capital and operating cost estimates must be completed for each production rate in order to produce meaningful comparisons.

Dec 6, 2010

By Honeycombe R. W K, Greenwood J. N

Powder metallurgy has been developed rapidly in the last twenty years by overseas metallurgists. The technique of making the powders and their subsequent pressing and sintering into useful forms has' only been introduced into Australia under the stress of war-time economic conditions.The technique involved has very little in common with our usual methods of fabricating engineering alloys by melting the ingredients to a homogeneous mass, followed by casting to shape or casting to ingot form and shaping by application of pressure-so-called mechanical working. On the other hand, the technique includes operations, such as milling and sizing, familiar to the primary metallurgists.The compacting of metal or other powders finds important application in two outstanding fields of engineering production: (a) in making porous bearings and contact brushes, in which such a material as powdered graphite can be incorporated; (b) in making cutting tool tips of hard -carbides, which have a melting point too high to make casting feasible, and which would be too brittle in the cast condition in any case. In both these cases; the final article can be made of the desired shape and size (subject to shrinkage allowances) whilst the compact is in a soft and readily machined condition a consideration of great importance in connection with the hard carbides.In order to develop the necessary equipment and technique and at the same time to assisil in the war effort, it was decided to divert the research work of the Metallurgy Department of the University of Melbourne to the problems associated with the production of hard carbides from local raw materials and the sintering of such into tips for cutting tools. Since this work was started at least two industrial concerns have started to produce these materials in the Commonwealth.The work. to date has included (a) the purification of crude cobalt oxide from Risdon and the reduction of this to metal Particles of less than 10 p. diameter; (b) the production of tungsten powder from King Island scheelite and its conversion into tungsten carbide with particle size less than 4 p. diameter; (c) the sintering of the latter product, using the former as a bond; (d) the production of titanium carbide from titanium dioxide; (e) the separation of columbium and tantalum oxides from a Northern Territory tantalite, and the conversion of these into the respective carbides.

Jan 1, 1942

Recently published extensions to the mill-dump cutoff grade theory for joint open pit-concentrator operations lead to equations that must be simultaneously satisfied as a necessary condition for an optimal operating policy. These equations are parametrically dependent upon ore quality parameters, other than grade, relating to the ease of recovery of the disseminated mineral in the concentrator. Since it is not possible to treat quantities of ore corresponding to the size of selective mining units separately in the concentrator some mixing is inevitable and often deemed desirable in the interest of homogeneity of mill feed. This renders the calculation of cutoff grades for individual mining units futile; mining units must be grouped to form larger parcels that can be dealt with separately. In doing so an opportunity cost may be incurred; the loss of potential benefit that would result from such separate treatment. This matter is considered from a theoretical, qualitative, point of view. A numerical example then shows that a significant variability in the quality parameters can be tolerated without incurring such opportunity cost, provided sufficient knowledge is available concerning the distribution and effect of these variables to enable the use of effective mean values of these parameters in the cutoff grade calculation. Lack of such knowledge can have major consequences for the economics of the operation.

Jan 1, 1981

Grade uncertainty can have a number of important implications for a mining operation. One of the most significant risks in not considering grade uncertainty in planning is the over or under allocation of processing or mining capacity when compared to realised grades. This could lead to wasted capital expenditure or missed opportunities to add value. This paper demonstrates a method that optimises production capacity and mining schedules in the presence of grade uncertainty. Applying this method to the case study of a nickel deposit recommended a reduction in processing capacity, an increase in mining capacity and more extensive utilisation of stockpiles than optimisations completed with traditional methods. As a result, average NPV improvements of between seven per cent and 27 per cent were gained.

Dec 6, 2010

These may be of interest to members examining the collection of ores, etc., from Mount Lyell, which is a feature of the Victorian Gold Jubilee Exhibition, and may have some value as geological records. No. 7 and No 8 are analyses of samples of footwall rock from the Lyell Tharsis mine. No. 7 is hard, crystalline, fine-grained, and of homogenous structure. It has a dark-red colour, due to ferric oxide (Fig 1); and was taken from a place eight feet east of the ore body and about half way between the 50 feet and 100 feet levels. No. 8 is from the same excavation and from four feet east of the ore body it is softer than No. 7, being easily scratched with a knife-blade, of a deeper dark-red colour, and has a slaty cleavage.

Jan 1, 1902

By A E. Annels, I P. Hodkinson an, S P. Barr

Narrow vein systems represent an important source of gold, which have generally been exploited by small to medium sized companies. Their evaluation poses particular problems because of their grade and geological complexities. The determination of grade is arguably the most important activity in resource estimation, as it is generally grade and not tonnage that makes an orebody. This is particularly true of narrow vein-gold deposits whose resources are generally relatively small, though medium to high-grade (6 - 40+ g/t). They often display extreme grade anisotropy in all directions. Two grade populations are generally observed; 1) low, often subeconomic, background grades and 2) high-grades associated with discrete ore shoots. It is possible for gold to be distributed within the wallrocks as well as within the vein. Extremely high-grade values typify this style of mineralisation and require special consideration during grade estimation to determine if top cutting is valid or not. Estimation of both width and accumulation in 2D on vertical longitudinal projections or inclined planes have historically been used to evaluate narrow veins. Resource estimates based on traditional 2D methods is still widespread, but has in some cases been replaced by computer-based 3D modelling. Grade estimation methods are well-known, ranging from classical to geostatistical. Historically, classical methods such as inverse distance weighting have been used, though geostatistical indicator kriging methods are sometimes applicable. Geostatistical studies are driven by the production of reliable variograms, which in narrow gold veins is often problematic. It is generally difficult to define resources from drillhole intersections beyond the inferred and indicated categories with any confidence. In the majority of cases underground development is required to define measured resources and ore reserves. Trial mining/bulk sampling is often used to test estimated grades and also provides important data on ground conditions and the parameters relating to the proposed mining method required for ore reserve definition. Regular reconciliation should be undertaken between the estimated stope grades, grades indicated from stope/truck sampling and grades realised in the mill in order to determine whether correct evaluation strategies are being applied. The important feature of narrow vein-gold deposits is their strong geological controls; in response to this, geologists must understand the geology as best as possible.

Jan 1, 1999

By D A. McCallum

With depth, many gold ores become sulfidic with minerals such as pyrite, pyrrhotite and arsenopyrite becoming prevalent. In addition, many underground gold mines use tailings backfill to bind and store the waste. In these cases, acid mine drainage (AMD) can become an issue. One approach to the control of AMD is desulfurisation whereby the sulfide minerals are removed prior to disposal. Four sulfide tailings samples, representing different ore types and gold and base metal operations, were selected for assessment and testing using simple physical beneficiation techniques. The aim was to determine the extent to which mineral processing methods were suitable for separating sulfides from non-sulfides and for extracting potentially marketable by-products from the tailings. In order to streamline the testing procedure a simple diagnostic separation technique was developed to enable quick screening of bulk sulfide tailings for suitability for reprocessing. The testing procedure involved detailed characterisation and a sequential set of testing regimes based on simple unit processes including water washing, classification, gravity concentration, magnetic separation and bulk flotation. The preliminary test results indicate each unit process can play an important part in producing effective sulfide/non-sulfide separations and in generating useful by-products from the tailings. Potential valuable products identified include coarse, benign silica sands, bulk iron sulfide products rich in pyrite and/or pyrrhotite, high-grade iron products (magnetite) low in silica, low-volume bulk sulfide concentrates and low-grade molybdenite and talc products. The work presented shows how sulfide tailings can be viewed as a resource rather than a waste stream, and identifies a pathway for developing a more sustainable approach to the environmental management of sulfide tailings for the future.

Jan 1, 2007

Mineralisation was identified at Gladstone Hill as far back as the late 1870's û early 1880's, shortly after the initial discovery of Martha Hill. Indeed, early recovery problems from the Martha Hill mineralisation led to the preferred development of are bodies within what is now the Union Hill Joint Venture tenement; ore bodies such as Silverton, Amaranth, Union to name a few. Work at Gladstone Hill is carried under the Union Hill Joint Venture, a 50:50 joint venture between Auag Resources Ltd - manager (a fully owned subsidiary of Otter Gold Mines Ltd) and Welcome Gold Mines Ltd (a fully owned subsidiary of the Normandy Group). The joint venture participants also operate the adjacent Martha Hill operation. Mineralisation of Gladstone Hill, as with mineralisation at the adjacent Martha Hill, has been interpreted as a low sulphidation epithermal Ag-Au system hosted within hydrothermally altered andesites of the lower Coromandel Group. Drilling in recent years has successfully identified extensive mineralisation associated with the Gladstone vein set and the more recently identified high grade Moonlight Lode. Veining ranges in character from thin stock works to broader lode-style banded chalcedonic to cherty quartz. Visible gold is rare, with mineralisation generally associated with very fine-grained pyrite, arsenopyrite and minor electrum. The potential for the Gladstone Hill area is yet to be clearly defined as drilling to date has yet to close off mineralisation both along strike and down dip. If further drilling is successful, the joint venture partners believe Gladstone Hill could contribute significantly to the economic future of current operations.

Jan 1, 1999