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By W. Edwin Dill

For the mining industry, the Internal Revenue Code and regulations offer a range of choices in arriving at the allowable depletion. Each case is essentially unique. Two prerequisites can optimize these opportunities: communications between the mining company's tax specialists and its technical staff; and an understanding of IRS definitions. For the latter, a logical starting point is consideration of exploration and development, since they precede production and depletion is unallowable prior to production. Criteria for selecting engineering and accounting options for exploration and development indicate the necessity of interaction between these company functions to achieve the most favorable tax position.

Jan 1, 1982

The Mt Todd Project is located 42 km northwest of Katherine in the Northern Territory. The identified mineral resource estimate for the Batman gold deposit is 66.7 million tonnes (Mt) grading 1.4 grams/tonne (g/t). Proved and Probable Ore Reserves total 42.3 Mt grading 1.5 g/t. Orebody definition and reserve estimation is based on extensive percussion and diamond drilling. Exhaustive bias analysis comparing grades produced from different drilling techniques has been undertaken. Similarly, detailed check assaying programs have been run to validate grade data produced by commercial laboratories used during the exploratory drilling phase. Significant biases were established from both studies and appropriate 'corrections' were made to drillhole databases prior to final resource and reserve estimation. 3D geostatistical modelling has been utilised for resource and reserve estimation, with specialist consultants contracted for this work. At all times, interpreted geological controls on mineralisation, provided by

Jan 1, 1994

By J. H. Ffolliott

ALL, of the prospects that later became mines in the Ducktown district were discovered prior to 1854, and most of them were exploited before the turn of the century. It is the purpose of this paper to discuss the exploration and current development of the Boyd mine, discovered in 1853. It is in the heart of the Ducktown Basin, in the extreme southeast corner of Tennessee, and is being developed by the Tennessee Copper Co. GEOLOGY The geology of the district has been fully described in many papers. Probably the most complete description is that of Emmons and Laney.1 The rocks of the district are considered to be of Lower Cambrian age and are a part of the Great Smoky formation, consisting mainly of interbedded graywacke and mica schist, in which the ore deposits occur. The ore bodies are included in an area of about 6 sq. miles, 2 miles wide and 3 miles long striking N. 45° E., and may be grouped into three general lode systems. The northeast system, including the East Tennessee, London and Burra Burra ore bodies, and the southeast group, comprising the Polk County, Mary and Calloway deposits, are all characterized by relatively high copper values. The ores of the central system, which includes the Eureka, Boyd, Old Tennessee and Cherokee ore bodies, are low in copper and high in total sulphide content. Boyd mine lies roughly halfway between the Old Tennessee and Eureka ore bodies [ ] and 2500 ft. in the hanging wall of the Burra Burra mine (Fig. 1). Elevation of the surface is about 1725 ft. above sea

Jan 1, 1942

By A. Galicia, A. Charest

The Marlin deposit is a low sulphidation Au-Ag, epithermal system, with reserves of more than five million ounces gold equivalent. Marlin was discovered in December 1998, after a nine months grassroots exploration program in western Guatemala, focused on volcanic terrains of the Sierra Madre. Before the Marlin discovery, several gold prospects were found along an east-west corridor of approximately 70 kilometers long, associated to regional faulting systems. The deposit is hosted in faults, within Tertiary andesitic rocks and bedded volcano-sediments. Host-rocks are argillized closer to the surface and propyllitized at depth. Mineralization occurs in multi-stage quartz stockworks and breccia veins.

Jan 1, 2004

By T. L. Sadlier-Brown, Andrew E. Nevin

"Common properties of commercial geothermal steam reservoirs are a magmatic heat source, the presence of water in vapour and liquid phases, and a surrounding seal of low permeability. The latter may be due to a combination of hydrologic load, argillic alteration and mineral precipitates. The temperature and pressure of vapour and liquid co-existing in equilibrium at maximum enthalpy may approximate 451°F and 450 psi. Steam reservoirs do not necessarily vent steam, but fluid which breaches and mixes with meteoric waters may emerge as hot springs. A systematic exploration program in Western Canada would involve a sequence of four stages utilizing geological, geochemical and geophysical techniques. The geochemical parameters of hot spring waters, such as silica, lithium and potassium content, give some indication of the basic reservoir temperature. The geology of Quaternary volcanics, including reservoir rocks, structure and rock alteration, is of prime importance. The costs of preliminary indirect methods are no more than those of oil and gas exploration; however, high temperatures compound drilling problems and costs. Exploration expenditures of twenty million dollars or so might be needed for a significant discovery. British Columbia and the Yukon Territory contain abundant Cenozoic volcanic rocks and over 50 thermal spring complexes (some with as many as 20 springs in one complex). Six regions are tentatively picked for exploration. Four regions coincide geographically with post-1980 electric power facilities and loads, and with possible alternatives such as potential dam sites. The Lillooet River region, Terrace region and Western Vancouver Island region have inferred potential for the existence of a plus-500-Mw geothermal reservoir. The Kootenay region may or may not have such potential. The Stikine River region has strong evidence of geothermal endowment, but the anticipated power market of the middle future might be only 30-50 Mw. The Whitehorse, Y.T., and Atlin, B.C., region has a belt of thermal springs and Recent cinder cones. The anticipated middle-future needs are real enough, but in absolute terms they are small, say 20-30 Mw. Legislation and policy on geothermal resource rights are lacking in British Columbia and the Yukon Territory at this time. As well as making policy, governmental organizations will play a significant role in geothermal development as buyers of steam or electricity. The role of industry is visualized as assuming the high-cost and high-risk exploration effort, provided the nature of this effort is understood by government."

Jan 1, 1973

By J. Kraemer, A. Preusse

In the federal state of North Rhine Westphalia (Germany) small and medium sized companies are beginning to extract the related gas via old shafts or boreholes and to use it as a source for the production of electricity and heat. More than 100 applications for the separate mining right on mine gas had already been filed by beginning of 2002, since mine gas is treated as a mineral resource under the Federal Mining Law. Meanwhile more than 40 mine gas concessions have been granted and first projects are being developed with encouraging results so far. To enhance the applied techniques and their efficiency Aachen University has formed a research team in this discipline. Scope and goals of this research activities are being presented in this paper. Keywords: extraction mine gas, Renewable Energy Act, Ruhr District.

Jan 1, 2003

By D R Quick

The Goodall gold mine is located 30 km east of Adelaide River, within the Pine Creek 1:250 000 map sheet, at 8 525 000 mN: 750 000 mE, on the AMG grid. The first gold was poured in April 1988 and the mine closed in September 1993, having produced 228 400 ounces of gold from 4.095 million tons of ore, at a head grade of 1.99 g/t. Oxide and primary ore was mined from one large open cut and low grade oxide ore from three smaller pits. The gold mineralisation was discovered in 1981 by means of a helicopter borne rock chip sampling survey, which delineated 13 discrete anomalies. Systematic grid sampling of rock chips outlined an area of 1300 m by 300 m within the 2.0 g/t contour. Over 7500 m of costeaning was used to delineate the A and B-Pod mineralised areas. Geochemical soil sampling played only a minor role in the discovery and geophysics none at all. By the end of 1984, 40 diamond drill holes had been completed and a resource of 3.63 million tonnes at 3.0 g/t calculated. In January 1985, Western Mining Corporation Ltd became a joint venture partner and funded exploration to cam a 60 per cent interest. Additional drilling led to a feasibility study in 1987, based on a Measured and Indicated resource of 4.25 million tonnes at a grade of 2.35 g/t. The host rocks are quartzo-feldspathic wacke and interbedded phyllitic siltstone, of the Proterozoic Burrell Creek formation. The main zone of gold mineralisation, A-Pod, occurs in a sub-vertical vein array, up to 50 m wide and 800 m in length, of quartz and sulphide veins (5-20 mm wide), It is parallel to and on the east limb of an upright, north plunging anticline. Five types of veining have been recognised, with the bulk of the gold mineralisation associated with quartz-pyrite-arsenopyrite and chlorite-quartz-pyrite veins. The gold occurs as particles, from 1-20 micron, as inclusions and along fractures in pyrite and arsenopyrite and to a limited extent in chlorite. The mineralisation is epigenetic and structurally controlled by fractures developed during an earlier folding event. The gold is assumed to have been derived from the underlying sediments of the Koolpin Formation by hydrothermal fluids emanating from the deep seated northern margin of the Cullen Batholith. Precipitation of gold may have been controlled by variations in temperature and pressure.

Jan 1, 1994

By W. J. Wolfe

"Quartz Hill is a large, low- to moderate-grade quartz vein stockwork porphyry molybdenum deposit, discovered in 1974 during a regional stream sediment geochemical reconnaissance survey of southeast Alaska conducted by United States Borax and Chemical Corporation. Mineralization is localized in the upper parts of an Upper Oligocene (30 Ma) composite quartz monzonite stock which is emplaced discordantly into older Cretaceous to Early Tertiary terrain of the Coast Range igneous metamorphic complex of the northwest North American Cordillera. Subsequent fault-controlled, complex multi-stage intrusion, concentrated in the core of the Quartz Hill stock, produced successive pulses of hydrothermal alteration and molybdenum mineralization at about 27 Ma. Overall, the deposit is tabular and flat-lying and well suited to open pit mining. The 0.05% MoS2 grade limit covers an area of approximately 1500 m by 2750 m and extends to a maximum depth of 520 m below surface. Details of grade distribution show two separate lobes of higher grade material within the larger low-grade deposit.A ten year program of exploration drilling, underground development, sampling and metallurgical testwork led to a 1983 feasibility study based on a resource of 1600 million tonnes grading 0.127% MoS2 at a 0.08% MoS2 cutoff The large size of the deposit and its homogeneous grade distribution, typically showing gradual outward decrease of grade, makes in pit grade selection practical at several cutoff levels. Cominco Ltd. now reports a Probable Resource of 210 million tonnes averaging 0.22% MoS2 with a further Possible Resource of 1100 million tonnes averaging 0.12% MoS:z. At low molybdenum metal prices which have persisted for 10 years since the molybdenum price spike of the late 1970s and early 1980s, the Quartz Hill deposit is sub-economic."

Jan 1, 1995

By Tuanhui Wang, Qiwei Wang, Quanrui Liu, Jianhui Xu, Chao Wang, Yu Liu, Yuefeng Li

Rockburst is a highly destructive geological hazard that can cause casualties and equipment damage. To achieve highaccuracy discrimination of rockburst intensity, this article proposes an improved model that addresses the inefficient maximum membership principle used in traditional rockburst fuzzy evaluation models. The stress coefficient σθ/σc, brittleness coefficient σc/σt, and elastic deformation energy index Wet are selected as evaluation indicators for rockburst classification. Subjective and objective weights are obtained using the Delphi method and entropy weight method (EWM). Three types of membership function distribution forms are then used to obtain the membership degrees of each indicator to rockburst grades: trapezoidal membership function (TMF), normal membership function (NMF), and quadratic parabolic membership function (QPMF). Finally, six traditional models and six improved models are established using the maximum membership principle (MMP) and weighted average-maximum membership principle combination evaluation principle (WMP), respectively. Based on the analysis of 100 sets of rockburst field data, the accuracy, precision, recall, and F1-score of the improved evaluation model are increased by 11.3%, 0.097, 0.068, and 0.089, respectively, compared to the traditional model. The Delphi-NMF-WMP model is selected as the best model, with four performance indices reaching 97.0%, 0.979, 0.979, and 0.978. The best model is applied to evaluate the rockburst intensity of the Cangling Tunnel, Dongguashan Copper Mine, and Jiangbian Hydropower Station Diversion Tunnel, with evaluation results consistent with the actual situation, demonstrating the reliability and scientificity of the model.

Feb 28, 2024

By T Blenkinsop, A Jenkins, H Moore, L Fisher, N Oliver, J Cleverley, M Nugus, J McLellan, J Hill, N Brunacci

The 2 Moz Vogue mineral resource is a recent discovery at the Sunrise Dam gold mine (SDGM), lying approximately 600 m vertically below the Sunrise Dam open pit. Unlike most other lodes, which are dominated either by steep vein sets or shallow high-strain (shear) zones, it lies broadly in the hinge of a folded felsic porphyry body, where it cuts intermediate volcanic lavas and volcaniclastic rocks and is not specifically concentrated at a lithofacies contact. The mineralisation is controlled by a complex interplay of moderate to shallow, west-dipping high-strain zones that are transected by irregular and discontinuous high-grade, north-west-, north–south- and east–west-trending breccia sheets that initially caused problems with attempts to model broad domains. However, by combining the structural controls and styles with the distribution of gold, arsenic, sulfur and antimony, we have improved opportunities for scheduling, extracting and processing the most appropriate material considering the current mining and processing constraints.The early delineation process for the Vogue lode revealed a significant mineral resource for the SDGM, coupled with the recognition of some potentially difficult downstream implications for mining and processing. The ultimate success of mining at Vogue will be a consequence of combining standardised data collection and geological modelling techniques with the results of the novel innovative techniques applied at an early stage of the project.Innovation (in the truest sense) drives change and application to deliver efficient and effective outcomes. Initial data generation and interpretation in lodes above Vogue provided a sound geological model based on strong structural foundations, leading to ideas that could be tested and validated by stress inversion analysis and modelling simulations. Geomechanical modelling simulations, based on the structural analysis, then provided an insight into both the structural and fluid evolution of the system and highlighted target areas. This promoted support for deeper drilling and sampling, which lead to the discovery of Vogue.With additional data, the structural model for Vogue was re-engineered through combination with geochemical and hyperspectral analysis and detailed geological and geostatistical domaining. Initial poor results from metallurgical tests from a small batch sample refocused efforts to undertake mineral and chemical characterisation and profiling (geometallurgy) and combine this data with the composite geological-structural-geochemical model. The result is a conditional probability model for differentiating mineralised or waste domains, with direct outcomes for planning, drilling and mining.CITATION:Nugus, M, Oliver, N, Blenkinsop, T, Hill, J, McLellan, J, Cleverley, J, Fisher, L, Brunacci, N, Moore, H and Jenkins, A, 2014. Exploration and innovation – the discovery and evolution of the 2 Moz Vogue Gold Resource, Sunrise Dam Gold Mine, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 323–340 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By C E. Vidal

Geological exploration and mining development increased their intensity and rate of success during the last five years in Peru. Particularly relevant are the mining projects of Yanacocha and Pierina for epithermal Au and Ag. Also relevant are the new mining operations at Iscaycruz and Uchucchacua for limestone replacement Zn- or Ag-rich base metal skarn deposits. Miocene continental volcanics host the low-grade but near-surface orebodies of the Yanacocha mining district in Cajamarca. Several deposits have been mined since 1994 with open-pit and heap-leach gold production increasing from 300 000 ounces to 1 300 000 ounces in 1998. In a similar geological setting, but with three times the grade of Yanacocha, the Pierina valley-leach operation in Ancash is set to produce 800 000 ounces Au during 1999. At Iscaycruz in Lima, Cretaceous limestones host massive pyrite and sphalerite skarn deposits with 10 to 20 per cent Zn. Mining and milling were started in 1996 with last yearÆs production rising to 180 000 tonnes of Zn concentrates. At Uchucchacua, selective underground mining of fracture-controlled Ag skarns, with 400 to 420 g/t, has been recently increased from 1200 to 2000 tonnes per day to produce 5.5 million ounces Ag during 1998. Advanced exploration projects are located in the framework of nine Phanerozoic metallogenic provinces. Mineral deposits of preferred attention are precious metal disseminations and veins, base metal replacements and skarns, porphyry Cu (Mo-Au), Mississippi-Valley-type Zn and base metal volcanogenic massive sulphide deposits. Geological discovery of new orebodies enables a sustainable development of the mining industry in the country.

Jan 1, 1999

By D Pearce

The 15-year long debate between the industry, Government and Aboriginal people about the rights and wrongs of Land Rights, the right of Aboriginal people to control development on their land and the relationship between the parties, has been long and often bitter. It has so far been a war of words and often the truth has been the first casualty. This paper looks at the debate and presents the perspective of Aboriginal people, as well as looking at how the industry and Aboriginal people can work together for everyone's benefit. It addresses such matters as: ò why Aboriginal people believe they have the right to control development on their land; ò the perception that Aboriginal people are anti-development; ò the perception that Aboriginal land is 'locked-up'; and ò how companies can negotiate with Aboriginal people.

Jan 1, 1994

By J Dwyer, G Turner, D Pridmore, M Urosevic

Due to their ability to produce high-resolution images of the subsurface to great depths, seismic surveys provide critical inputs to almost all oil and gas exploration projects. However, with some notable exceptions, seismic surveys have rarely been used in mineral exploration. In the past, this was due to both technical and financial reasons. Significant developments on both fronts mean that seismic surveys can now offer substantial benefits to mineral exploration and mining, and surveys conducted for exploration can provide important data sets for mine planning over the life of a mining project.We present case history data that show that seismic surveys can greatly assist with mapping the 3D distribution of lithologies and alteration and, in favourable circumstances, directly detect mineralisation in and around mineral systems. As a result of their high spatial sampling density, seismic surveys are also highly effective at mapping structures that can remain undetected or poorly characterised by drilling alone. These structures may host or provide important vectors to mineralisation. They can also be particularly important when planning shafts, raise bores, declines, stopes and open pit walls. A further benefit of seismic surveys is that they can remotely provide information on geotechnical rock parameters that are used for rippability, slope stability, blasting and ground support.CITATION:Turner, G, Urosevic, M, Pridmore, D and Dwyer, J, 2015. Exploration and mining unified through seismic imaging, in Proceedings Third International Future Mining Conference, pp 117–122 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By J F. H Thompson

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Mineral exploration and mining are challenging businesses. Remote and at times harsh conditions have always made it difficult for exploration, but modern explorers also have to deal with cover, numerous technologies, an explosion of data and critical early community engagement. Mining deals with the reality of moving and breaking thousands of tonnes of rock each day to extract what can be a very minor component of economic value, and, furthermore, society expects that this will be done in a clean and sustainable manner. The exploration and mining challenges appear disparate, but they are intimately related.Although not widely appreciated, both exploration and mining have a long tradition of innovation. Over the last 50 years, major step changes in exploration have resulted from radical advances in our understanding of ore forming processes, new geophysical, geochemical and remote sensing technologies, and new ways to integrate and interrogate data. Over a more extended period, close to 100 years, mining has developed bulk surface and underground methods, selective extraction through flotation and leaching and global positioning system–geographic information system control systems that collectively facilitate mining at a massive scale. And yet, in spite of these successes and the boom that we have enjoyed in the last ten years, the industry is under pressure and the need for innovation and change is paramount.The major drivers for innovation are the need for increased quality in discoveries and mines and the need to interact effectively with communities and jurisdictions such that the benefits of quality mines are recognised and enjoyed widely.We are still making new discoveries around the Pacific Rim and elsewhere, but many argue that the quality – grade and accessibility – of these discoveries is decreasing. The net result is that explorers are delivering resources and reserves for development at lower grades and with higher capital and operating costs than current operations. For mining, the increasing age of many existing operations contributes to increasing costs, which, when combined with decreasing cut-offs and lower grades, also results in declining quality. The combined picture does not look good.Just as the pressure to improve performance and margins in the face of declining inputs increases, we are simultaneously faced with increasing societal demands for improved environmental performance and sustainable practices. This is most apparent at the local, community level, where opposition ultimately leads to delays or even cancellation of new projects. Quality is again the issue – quality of the initial and ongoing engagement and quality of the proposed mine in terms of environmental and economic performance.CITATION:Thompson, J F H, 2015. Exploration and mining – the need for innovation , in Proceedings PACRIM 2015 Congress, pp 45–48 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By R. A. Lord, H. M. Prichard

Paper presented at Mineralisation in the Caledonides, the Mike Gallagher memorial meeting held in Edinburgh, 27-28 June 1996. The complex exemplifies a class of olivine-rich, platiniferous ophiolite complexes generated by unusually high degrees of hydrous melting above a subduction zone. Crystallisation of abundant olivine from unusually picritic magmas produced an exceptionally thick sequence of crustal dunite cumulates. Significant (1-4 ppm) concentrations of Pt+Pd occur where sulphide-bearing dunites are spatially associated with podiform chromite concentrations. In the area north of the Balta Sound, the chromitites appear to lie in distinct stratigraphic zones. A detailed programme of lithogeochemical and soil-rock interface geochemical exploration led to the intersection by diamond drilling of three stratiform horizons of sulphide-bearing dunites and associated precious-metal mineralisation. Patterns of cryptic geochemical layering, at scales from 200 m to less than 1 cm, suggests open-system fractionation

Jun 19, 1905

"The Cordillera contains numerous porphyry deposits and prospects, many containing economic quantities of copper, molybdenum, gold and tungsten. Over the lost twenty years, different phases of exploration have been driven by individual commodity prices and new discoveries. Exploration methods have remained largely unchanged since the 1960s and 1970s with the range of techniques chosen for each situation depending on the stage of the program, the type of porphyry target and the local environment. Improvements or changes to techniques have resulted from awareness of specific features in new deposits or regional problems. During the last ten years much of the emphasis has been on the re-evaluation of known porphyry deposits with more exploration in areas previously recognized as prospective. Re-evaluation of known deposits has resulted in increased reserves, often with improved gold grade, and the discovery of new zones. Several new deposits have been discovered including gold-only deposits of probable porphyry affinity.Research related to porphyry deposits has followed trends in exploration and has been directed toward the type of deposits that have been of current interest. In addition to research on specific deposits and areas, general research related to porphyry deposits has addressed three broad themes. The first theme involves the role of tectonic processes and the nature of source regions. Although different in detail, recent tectonic models suggest that a tectonic change or hiatus may be important for the generation of metal-rich magmas from various source regions and subsequent fractionation that permits volatile saturation. The second theme is based on magmatic processes, particularly the generation of a volatile phase enriched in metals. This research supports the general orthomagmatic model for porphyry deposits and has helped to define the influence of specific variables in the generation of different types of porphyry deposits. Finally, research on alteration and mineralization has provided evidence for different types of fluids and fluid processes involved in the formation of porphyry deposits. These data also support the orthomagmatic model but indicate additional complexity in magmatic-hydrothermal systems including the role of external fluids. Although important advances have been made, research has had a limited impact on exploration.Exploration and research on deposits that occur in the peripheral and upper parts of porphyry systems have been important over the last ten years. Although considerable advances have been made, the relationship of different styles of peripheral mineralization to magmatic processes in the core of the system remains ambiguous. An improved understanding of the processes that generate zoning, peripheral mineralization, and the surrounding alteration envelopes would be beneficial to exploration."

Jan 1, 1995

By H Hoogvliet

The Goondicum Crater industrial minerals deposit is located about 30 km east of Monto, Central Queensland, Australia. Early exploration programs in the 1990s found alluvial ilmenite along the banks of the Burnett River. This mineralisation was traced upstream to the Goondicum Crater. The Goondicum Crater is a topographic feature centred on a roughly circular 6 km diameter layered gabbro complex. Significant ilmenite, apatite, titano-magnetite and feldspar mineralisation are present in a weathered horizon up to 25 m thick. After several drilling campaigns in the Crater and subsequent feasibility studies, the project was developed by Monto Minerals Ltd, an ASX listed company, in 2007. However, the project never achieved production performance expectations and ran out of commissioning funds. The company subsequently went into voluntary administration in August 2008.In 2009, the RMM Capital group, of Brisbane, took control of Monto Resources Pty Ltd, and renamed the company Belridge Enterprises Pty Ltd (Belridge). Belridge commissioned a redevelopment study aimed at recommencing mining and processing operations. As part of the redevelopment study the authors planned a drilling campaign, managed a quality control program and developed a block model. This paper describes the drilling program, analytical procedures, quality control procedures and the preparation of the block model.The block model for the resource estimate was created using 1 m high blocks, wireframes defining the main material types, and 2.5 m thick horizontal search ellipsoids with a radial pattern. The deposit was ‘flattened’ prior to modelling. To assist with the economic evaluation of the project, each block in the model was assigned a net dollar value based on economic parameters provided by Belridge, including anticipated revenues and costs. This modelling technique allowed for efficient investigation of various scenarios and was used extensively in the development and optimisation of the project’s financial model. At a zero net value per block, comparable to a break-even cut-off grade of four per cent ilmenite equivalent, the Indicated plus Measured resource is estimated at 51 Mt, averaging 4.1 per cent ilmenite, 1.9 per cent apatite and 2.5 per cent titano-magnetite.

Oct 5, 2011

By Stephen J. Juras

The Myra Falls deposits comprise a complexly metal-zoned polymetallic volcanogenic massive sulfide district located 90 km from Campbell River in central Vancouver Island, British Columbia, Canada. The massive sulfide deposits are hosted by subaqueously-deposited rocks of the Devonian age Myra Formation of the Sicker Group volcanic assemblage. The deposits comprise many individual massive sulfide lenses grouped into several major zones within two main felsic volcanic stratigraphic intervals - the upper Lynx-Myra-Price Horizon and the lower H-W Horizon. The largest of these zones, the H-W and Battle, occur within the H-W Horizon. The first claims in the area of what is now Boliden-Westmin?s Myra Falls Operations were staked in 1917. Early prospecting resulted in the discovery of three massive sulfide showings which eventually became the Lynx, Myra and Price mines. Sporadic exploration was carried out until 1961 when Western Mines Ltd. (now Boliden-Westmin Ltd.) acquired the claims. Subsequent ore definition outlined 1.9 million tonnes of ore (approximately 5 years of mine life) in the Lynx deposit, and mining began in 1966. Pre-mining geological reserves (to January 1, 1997) comprised 6.7 million tonnes grading 3.3 g/t Au, 130.6 g/t Ag, 2.0 % Cu, 1.4 % Pb and 10.2 % Zn for the Lynx-Myra-Price deposits, 17.1 million tonnes grading 2.3 g/t Au, 32.7 g/t Ag, 2.3 % Cu, 0.3 % Pb and 4.2 % Zn for the H-W deposits and 4.2 million tonnes grading 1.1 g/t Au, 27.0 g/t Ag, 2.2 % Cu, 0.5 % Pb and 12.0 % Zn for the Battle deposits. Property-wide production to January, 1996 has been 15.7 million tonnes grading 2.1 g/t Au, 58.7 g/t Ag, 1.9 % Cu, and 5.2 % Zn.

Jan 1, 1998

At the Highway gold deposit, 37 kilometres south of Charters Towers, gold mineralisation occurs in several stratiform layers and is enriched near the surface by lateritic weathering. The host rocks of the mineralisation are ferruginous and baritic, intensely sericitised, kaolinised and silicified rhyolitic tuffs and pyroclastics of the Cambrian-Ordovician Mount Windsor Volcanics. The geology of the deposit is illustrated in Figures 1 and 2.Forty-six reverse circulation percussion drill holes were completed by North-Queensland Resources N.L. for a total of 2,093 metres of drilling to further outline and test the open pit resource. The drilling indicated a resource of 171,000 tonnes averaging 4.4 grams per tonne gold and 5.0 grams per tonne silver.A shallow initial pit, approximately 30 metres deep, has been designed to mine the high grade upper portion of the western stratiform layer and part of the eastern layer. This initial pit is designed to mine 45,400 tonnes of western mineralisation at an average grade of 7.84 grams per tonne gold and 22,200 tonnes of eastern mineralisation at an average grade of 1.42 grams per tonne gold. Waste is estimated at 110,900 tonnes.

Jan 1, 1986

The Sams Creek gold deposit near Takaka in northwest Nelson was discovered in 1974 by CRA Exploration (CRAE) geologists. CRAE recognised the potential of the area and subsequently undertook a comprehensive exploration programme of geological mapping, soil and rock-chip sampling, geophysical surveys and diamond drilling. Exploration defined sporadic gold mineralisation contained entirely within a deformed and hydrothermally altered, peralkaline granite porphyry dyke with a seven kilometre strike length, and up to 60 m thickness. Rock chip samples indicated extensive and economically significant gold grades over approximately one kilometre strike of the dyke at Main Zone prospect. CRAE completed 30 diamond drill holes at this prospect and defined a limited resource. Oceana Gold Limited recommenced active exploration at the Sams Creek Project in late 2002, focusing on improving the geological understanding and known resource at Main Zone. Completion of 1041 m diamond drilling successfully increased the estimated resource to 10.7 Mt @ 2.12 g/t Au containing 729 000 oz at a 0.7 g/t cut off. A further campaign of 1560 m diamond drilling was undertaken in 2003 - 2004 to extend the resource and test the continuity of high grade mineralised zones. Deeper intersections of the porphyry dyke indicated geometrical complexity and grade variability similar to that observed at shallow levels. Recent research suggests that Sams Creek can be geologically classified as a variant of intrusion-related gold systems, and therefore comparable to some other, very large gold deposits. However, due to the rugged terrain and dyke geometry, surface drilling is reaching the limits of viability at Main Zone. If infill drilling continues to be successful then an underground decline may be developed to facilitate further exploration. Potential also exists along strike, where other significant gold anomalies are known but largely untested by drilling.

Jan 1, 2004