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By G A Brown

Environmental legislation is changing rapidly throughout Australia at the present time, and with that change comes additional responsibilities for the mining and petroleum industries. Among the many changes that are being made are increased penalties for both criminal and accidental environmental impairment. The defences for criminal offences are limited and for other offences the laws may impose strict liability - in effect the offender is guilty until proven innocent. Mines may be included under contaminated land legislation, creating additional liabilities for clean-up, rehabilitation and long-term management. It is not unknown in Australia for the value of a mortgaged property to be less than the amount of the environmental liability acquired by a mortgagor in possession due to contamination of the site. An essential part of the management program for resource projects is now the regular conduct of an environmental audit, the results of which assist in the management of the legal and financial liabilities facing company directors and managers. The audit can also assist with negotiations with government agencies, staff, unions, insurers, Aboriginal and other community groups. An environmental audit may also help to ensure that companies are claiming the maximum allowable deductions for environmental works under the tax laws, and provide evidence in support of such claims. Environmental legislation affecting resource industries Environmental legislation in Australia is changing rapidly and can impose massive constraints, substantial administrative costs, and considerable liability on directors, managers and the corporation. Pollution control legislation Every State and Territory of Australia has a range of pollution control legislation contained in either individual acts relating to air, water, noise and land, or embodied in a single environment protection act. Pollution control legislation provides a critical management baseline for resource industries throughout Australia, often requiring the full-time attention of an environmental manager or an environmental department. In general, it is an offence to discharge effluents into water, or emit gases into the atmosphere above prescribed limits, cause noise above a regulated level, or contaminate land without a licence. A licence determines how much of a substance can be discharged, the location, the receiving environment, the quality, and the time at which discharges can be made or noise can be caused. Planning legislation Planning legislation controls where a project is located, how it will be constructed and operated, how large it is allowed to be, and what will happen once the project is completed. Development consents or approvals will generally contain a range of conditions controlling the preparation of the site, the construction of the facility and the way it is operated throughout its expected life time. Resource projects may be regarded under legislation as scheduled or designated developments requiring special treatment during the decision-making process. Under planning legislation, it is usual for resource projects to be subject to an environmental impact assessment process. Resource legislation Resource legislation specifically covering mining and petroleum in Australia, also contains requirements regarding protection of the environment during exploration for and extraction of minerals and oil. A mining or petroleum production lease usually contains numerous conditions regarding protection of the environment and rehabilitation of the site during and after the life of the extractive process.

Jan 1, 1994

By D A. Collins

The floatability methodology developed by the AMIRA P9 project through research contributions by the Julius Kruttschnitt Minerals Research Centre (JKMRC, Brisbane, Australia), University of Cape Town (UCT, Cape Town, South Africa) and McGill University (Montreal, Canada) has been successfully commercialised through JKTech. The methodology involves detailed flotation plant campaigns which require large quantities of data to fit models that can be used in JKSimFloat (a steady state simulator for the flotation process). The methodology to date, although widely accepted as the best flotation optimisation technology available, is limited to existing circuit optimisation and requires full plant or pilot plant data to calibrate new models. The floatability of new ore types cannot be characterised using this method unless a pilot campaign is undertaken. After reviewing a large database of existing industrial floatability data, a new methodology is proposed that involves a laboratory based flotation test procedure and review of the floatability database to characterise the floatability of new ores. The full methodology is labelled the floatability index test procedure (JKFIT). This paper outlines the JKFIT procedure and the results of applying this methodology to pilot plant data from a copper ore. JKFIT was applied to two different feed sizes (namely a P80 of 180 microns and 212 microns) of this copper ore. The results of applying JKFIT to this case showed that the metallurgical response (in terms of grade and recovery) from the full pilot plant survey data could be predicted well. Further validation of this methodology was conducted on a separate copper ore. The results from this validation also showed that the JKFIT test was able to be used to predict the full plant performance. The JKFIT test has the potential to become the 'drop weight' test of flotation which will improve the confidence in plant design flow sheet layouts, allow full orebody characterisation and prediction of key grades and recoveries before the ore enters the plant, and will provide an improved methodology for chemistry impact analysis on different ores.

Jan 1, 2008

Distal air-fall ashes are widespread deposits that may record volcanism many hundreds of kilometres from their source. They are characteristically thin, fine-grained and have a low preservation potential usually being either eroded, or reworked and incorporated in overlying sediments following deposition. The most likely sites of accumulation are deep sea, lake and swamp environments where low energy conditions favour preservation. Post-depositional alteration of predominantly glassy volcanic ash is commonly extensive hampering identification of such layers in the geological record. As a result air-fall tuffs are poorly represented in the rock record and furthermore are commonly misinterpreted. Southeast Queensland during the late Triassic hosted active silicic volcanism and a number of fault-controlled basins in which coal-bearing sediments were accumulating. Silicic volcanics of late Triassic age are represented by the Brisbane Tuff in the Brisbane city area, the Chillingham Volcanics to the south of Brisbane and extending into New South Wales, the North Arm and Mount Byron Volcanics to the north of Brisbane, the Aranbanga Beds exposed around Gayndah and the Agnes Waters and Muncon Volcanics which occur northwest of Bundaberg. Stephens (1986) interprets these Volcanics as the remnants of a major silicic igneous 'province which he likens to modern continental orogenic margins. The Ipswich, Tarong and Callide Basins of southeast Queensland all contain coal measure sequences of late Triassic age that accumulated in alluvial plain environments. A Dicroidium flora is common to all and palynol.ogical evidence indicates a late Triassic (Carnian) age (de Jersey, 1975; Stevens, 1981). The coal seams of the three basins are characterised by their thickness (up to 25 m) and the presence of abundant thin, laterally persistent, kaolinite claystones (tonsteins) that show a marked similarity of morphology, texture and mineralogy. Detailed studies of the Ipswich Coal Measures (Falkner, 1986) suggest a volcanic air-fall origin for the tonsteins of the Ipswich Basin. Similar.tonsteins from the Tarong and Callide Basins provide evidence for widespread silicic volcanism during the late Triassic in southeast Queensland.

Jan 1, 1987

Lafayette Mining Limited, a listed Australian company, is developing a polymetallic Project on the island of Rapu Rapu, located to the east of southern Luzon in the Philippines. The Rapu Rapu Project is based on the Ungay deposit, which has proven and probable reserves of 6.0 million tonnes of 2.5 g/t Au, 28 g/t Ag, 1.2 per cent Cu and 2.1 per cent Zn. The Project will produce copper and zinc concentrates from a sulphide flotation plant as well as dore from a CIL gold plant. Average annual metal production over the projected six-year mine life is 9800 tonnes of copper, 14 000 tonnes of zinc, 50 000 ounces of gold and 590 000 ounces of silver. Despite a rich mineral endowment and long mining history, there have not been any significant new mine developments in the Philippines since the early-1990s. The investment climate has been affected by legal challenges to the 1995 mining code, civil unrest in parts of the country, the impeachment of the previous President and community concerns about the industryÆs environmental performance. As a consequence, the Rapu Rapu Project is viewed as a test case û within both the country and the international mining industry û on whether minerals investment in the Philippines is an acceptable business proposition from a risk perspective. Lafayette has faced formidable challenges in managing the development risks of the Project. The major risk areas of the Project for which the company developed strategies include: regulatory, environmental and approvals issues, technical evaluation, project development, social and community issues, land acquisition, and financial and marketing issues. This paper describes the risk management strategies successfully pursued by the company, and which have the Project on track to commence construction in 2003. Dealing with each of the areas in turn, Lafayette sought to develop strategies which either effectively neutralised, minimised or otherwise addressed the key risks most likely to be experienced.

Jan 1, 2003

By Harris J. W

Mr. Gillie and Mr. Harris have given us a wealth of information and food for thought on the vital subject of information and food fo rthought on the vital subject of reducing costs and mention considerable saving in some of the larger items. There are a number of points on which I would like further information, but I will confine my remarks to a relatively small saving which is of particular interest in view of another paper to be presented this afternoon.Mention is made of a 50 per cent reduction in the amount of zinc used in the precipitation of gold slime from the pregnant solution. Would Mr. Harris enlarge on the methods by which they obtained this reduction; and could he give an actual figure of zinc consumption either by ton of ore treated or per ounce of bullion recovered.AuthorsWe consider the reduction of zinc is due to improved clarification of the pregnant solutions. The sand clarifiers used prior to the installation of the 50 ft. -thickener were not satisfactory due mainly to the blending of the hessian and matting under the sand. Under these conditions the leaf clarifiers were fed with overflow solution from the clarifiers and were overloaded in consequence. The addition of Calgon has also been beneficial.The present consumption of zinc per ton of solution treated is 088 lb. per ton.A. L. "Keats (No,rth Broken Hill Limited)In the operation of milling equipment there is a progressive increase in maintenance expenditure during the life of a machine, so that when comparing the cost of operating old equipment with the cost of operating new equip...

Jan 1, 1956

After many years of studying the rock mass gravitational flow phenomenon, it is well known that moisture conditions may change the mechanical properties of the caved and broken material, causing different problems at drawpoints. One specific problem, perhaps one of the most unpredictable and uncontrollable, is that of mudflows (also known as mud rushes). The aim of this paper is to show how to establish optimal extraction rates at a drawpoint in order to avoid the closure of that drawpoint due to the high risk associated with having high-technology automated loaders working in the production level of panel cave and block cave mines prone to mud flow events. This optimisation should take into consideration critical restrictions related to mine planning, such as the need to reach the planned production. It is also important to consider the correct design of surface (in the subsidence zone) and underground drainage systems to prevent groundwater or rainwater entering muck piles, filled stopes, galleries or open cuts. With these considerations, and keeping in mind other factors that should be included in a sensitivity analysis of variables, it is possible to find a correlation between the percentage of extraction from a drawpoint and the possibility of occurrence of a mudflow. Finally, this paper proposes different draw strategy techniques in order to mitigate potential mudflow issues on a caving production level.

Sep 26, 2011

By Wakamatsu DT, Nakahiro Y

This present paper deals with the fundamental study of the separation of fine cassiterite and quartz by liquid-liquid extraction using iso-octane as an oil phase, dodecylamine acetate (DAA) as a collector, and sodium chloride as a depressant. With regard to the distribution of fine cassiterite and quartz between oil and aqueous phases, the effect of DAA has been investigated in terms of pH, DAA and NaCl concentrations, zeta potential, and adsorption density. From the results of the experimental work, a maximum recovery of cassiterite in the oil phase was obtained with pH around 6.0, DAA concentration of 1.0 x 10-5 mole/litre, and NaCl addition of 0.1 mole/litre. In these conditions of liquid-liquid extraction, most of the fine quartz remained in the aqueous phase. Thus it was found that NaCI was an effective depressant for fine quartz under optimum conditions. A series of separation tests by liquid-liquid extraction was then conducted for the mixed samples (6.0 per cent Sn) of cassiterite and quartz. By a single separating process, the per cent of recovery of cassiterite in the oil phase was about 92 per cent with a grade of 27 per cent Sn. The same results could also be obtained by using kerosene in place of iso-octane as the oil phase.

Jan 1, 1993

The Ok Tedi copper and gold mining project is located in the headwaters of the Fly River system in western Papua New Guinea. The project's Feasibility Study was completed in 1979, and in- cluded a preliminary environmental assessment and an environ- mental management program. Construction commenced in 1981, an environmental impact study was completed in 1982, mining and treatment of gold ore commenced in 1984, staged construction of copper ore processing facilities took place during 1986-1988, and a further major environmental study was carried out for the operat- ing mine during 1986-1989. A very considerable data base of environmental information has been assembled by means of a comprehensive monitoring program. Environmental management criteria applied to the Project have reflected the stages and nature of development and operation. Criteria have been designed to regulate potential environmental impacts in the Fly River. An Acceptable Particulate Level of suspended sediment is the principal criterion. Compliance is con- ditional upon -a limited reduction in fish biomass, and upon dis- solved and particulate copper concentrations not exceeding predicted values at various locations throughout the river system. The criteria were established by the Government of Papua New Guinea following evaluation of environmental studies undertaken by the mining company. Compliance is checked by a detailed monitoring program, frequent reporting and statistical evaluation of monitoring results.

Jan 1, 1991

By McMahon D

The approach to valuations at the Normandy Poseidon Group is a measured and methodical process that utilises skills sourced from a number of different disciplines. Whilst being subject to a strict set of guidelines, it is also sufficiently flexible to be able to cope with the considerable variety across the resources industry. The group uses Discounted Cash-Flow (DCF) techniques extensively in order to develop a base valuation. Other external factors (eg the market) are, however, also taken into account when forming a view on value. Other methods of valuation are used in tandem or as alternatives depending on the task. DCF techniques are an important tool but would never be used in isolation. Considerable care must be given to developing the DCF analysis as its components (eg discount rate) are prone to misuse. Whilst the valuation process is quite detailed and scientific, it is really only as good as the inputs or assumptions (technical, financial, etc) that are used. The methodology used remains consistent whether the group is undertaking the corporate planning process or making an acquisition.

Jan 1, 1994

The Argyle AK1 Pit has been operating and producing over 25 per cent of the worldÆs diamonds by volume for over 20 years. The mining boom in Western Australia is creating upward cost pressures to ArgyleÆs mining operation while the price received for its product remains flat in comparison to many other Western Australian commodities. This incongruity, which when combined with other circumstances such as the pit being close to the end of its mine life, a decline in head grades and a tightening in operational constraints caused by the pitÆs maturity, is causing the leadership team at the mine to utilise innovative strategies in order to ensure that the open pit continues to perform economically until its final closure in late 2010. The strategies that will be discussed in this paper are step change business improvement methods, localisation of the workforce, employment of Aboriginal people and the use of a clear and concise consultation process in order to provide certainty to a workforce working in a pit during boom times where pit closure is imminent.

Jan 1, 2007

Although few people know of it, Woodlark Island produced a relatively large quantity of gold in a short period at the turn of the century. Deaths of miners, enticement to richer fields elsewhere, and world wars have contributed to the abandonment of these gold fields to their present obscurity. In the mining boom, companies were formed, amalgamated and bought-out in a flurry of activity but present records are incomplete. The main sources of information are annual reports of the Department of Land Surveys and Mines in Papua, a few geologists' publications (notably Pinder,1901; Stanley, 1912, 1923; Trail,1967) and a variety of unpublished data. The first traces of gold in New Guinea were'found by Saavedra in 1528. The first gold in Papua was found near Port Moresby in 1878. The next discovery was at Sudest Island in 1888 followed by Misima Island in 1889 and Woodlark Island in 1894. By 1910 the "Murua Goldfield" (Woodlark Island) had contributed over 43% of the total gold yield of the Territory of Papua.

Jan 1, 1987

By Richards AG

The stimulus of major capital expenditure in establishing open cut coal mining operations in the Hunter Valley led Coal & Allied Industries to look to a computer based information system as a tool to assist mine management in day to day operating decisions, as well as to provide a base of comparative data to help in long term equipment procurement decisions. The mine information system was conceived as an integrated set of three subsystems; costing, production recording, and maintenance. The maintenance management features of the system are closely keyed to a policy of preventive maintenance and maintenance costing based on user specified parameters. Central to this policy is the maintenance work order, which may be created and updated directly via interactive procedures at visual display terminals. The, system was designed for on-line processing in a multi-mine shared operating environment. Each mine controls its own data capture, and most other processing functions directly from terminals. The system is currently operational on the Combined Group Services Pty Ltd FACOM M150 computer, located in Newcastle, NSW.

Jan 1, 1983

The sampling of a run-of-mine (ROM) ore with the objective of controlling the fundamental variance associated with the sampling step is a poorly understood subject. Finding the effective sampling constant by repetitive sampling to establish the variance between nominally identical subsamples of a given mass of the ore is a laborious, time-consuming and very expensive exercise. In this paper, the run-of-mine ore is modelled using three components: ore, waste, and relatively fine material which shows significant liberation of the mineral phase(s) carrying the target analyte. The expression for the sampling constant of the mixture is developed from first principles. The form of the equation provides insight into the factors that are important in controlling the magnitude of the sampling constant and hence the fundamental uncertainty associated with a given mass of sample. The controlling factors are shown to be the size distribution of the ore/waste mixture, the proportion of waste mixed with the ore and the extent of liberation and the size distribution of the liberated material in the finer fractions.

Jan 1, 2008

From December 1994 to November 1997 Odin MiningÆs Estero Hondo alluvial gold mine in western Ecuador washed almost 3.2 million bank cubic metres of gravel to produce just over 2600 kilograms of pure gold at a recovered grade of about 0.8 grams per bank cubic metre. The operation was a simple open pit. Draglines stripped the overburden, backhoes mined the gravel, and trucks transported the ore to a stationary, gravity-based wash plant for processing. At start-up the planned throughput was 55 000 bank cubic metres/month, but a year later this had been increased to 100 000 bank cubic metres/month. From April 1993 to July 1997 a total of 440 churn drill holes and 15 pits were sunk to test the property. The methods used to prepare the resource and reserve estimates from the raw field data are described, and seven sets of completed estimates are used to track the evolution of the projectÆs resource/reserve base through the exploration, feasibility and production stages.

Jan 1, 2003

By McKee DJ

Many workers have observed an inverse relationship between final concentrate grade and valuable component recovery achieved by a flotation circuit, i.e. an increase in either grade or recovery may only be achieved at the expense of the other. The relationship is termed a "grade-recovery" curve and, in theory, limits the separation obtained by the circuit. However, circuit surveys in a nickel concentrator indicate that the operating "grade-recovery" curve of a circuit is not only determined by the nature of the ore and the circuit operating conditions, but also by the circuit design, particularly in terms of stage capacities. The surveys show that different capacity circuits can produce different operating curves for the same ore, and that capacity reallocation between stages has the potential to improve both grade and recovery. In particular, the relationship between circuit design and operating curve position is shown to be a function of the circulating loads generated by the circuit design, balancing the beneficial effects of recycling material against the proportion of plant capacity consumed by recycling.

Jan 1, 1986

By P Stoker

The need for quality assurance and quality control (QA/QC) in the sampling and assaying of minerals is fundamental to the reliability and confidence of a mineral resource estimate, reserve estimate and possibly profitability of a mine. In spite of this, QA/QC practices in the mining industry are commonly applied poorly, or misunderstood. As New Leaders, we should aim to correct the poor practices and become fully informed on appropriate procedures. This paper uses worked examples that show the usefulness and importance of best practice QA/QC procedures. Fundamentals of reviewing the performance of the laboratory by examining the results of client inserted standard reference material (standards), blank material and duplicate samples are discussed. To do this, three examples from Australian data sets have been used. For each example, simple and efficient plotting techniques are suggested with subsequent evaluations of each plot. The first case study compares the results of internal standards from a laboratory with blind standards (where the expected value is unknown to the laboratory) submitted by the client. It was demonstrated over time that the laboratory was unintentionally analysing the internal standards in a different manner to the remainder of the sample batch. In this example, not understanding the cause of a high negative laboratory bias could have led to poor understanding of the depositÆs grade and in the extreme a proposed mining operation may have reached operational stage with a subeconomic grade. The second case study discusses the quality of blank material submitted by a mining operation to monitor cross-contamination within the laboratory. The blank material contained background levels of the element under investigation. This created uncertainty in the assay results, which could have led to the need for additional assays and drilling programs. Finally, the third case study demonstrates the use of the relative paired differences (RPD) technique to cross-validate the results from duplicates and repeat analyses from two laboratories. The three examples given show either laboratory or operational error. If left undetected, each example could have had serious implications for the mineral resource estimate and ultimately, the mining operation. These examples are not isolated occurrences; poor QA/QC practices are an industry wide problem exacerbated by rapid staff turnover and increased contractor positions on-site. New Leaders must be equipped with a thorough grounding in QA/QC best practices to improve its application and confidence in the results of sample analysis.

Jan 1, 2009

Blasting is at first sight a simple operation. Blastholes are drilled in a suitable pattern, primed, charged with explosives, stemmed and finally the blastholes are connected together to give the appro- priate initiation sequence. In practice the action of the explosive takes place in the interior of an opaque rock mass and only the external faces of the rock mass to be blasted can be easily observed. The mechanisms of blasting cannot be observed directly and must be inferred from observations of the free face and meas- urements of particle movement made by sensors grouted into holes in the rock. Explosives react very rapidly, in some microse- conds and any instrumentation of a blast must have an appro- priate response time. In many mines several rock types can be encountered during production. Several different methods of blasting may be necessary to cope with changes in rock types espe- cially if weak rocks are found in the final limits. This also makes it difficult to be sure of getting a large enough volume of rock to perform a series of reproducible experiments. While there appears to be agreement on the mechanism of blasting it is unlikely that a detailed understanding of how all the variables that can be encountered in practice affect blasting. The ease of assessment of the results of blasting depends on the criteria used. It is easy to isolate, measure and count over- size boulders. It is however difficult and costly to get a complete fragment size distribution. Methods used to assess blasting can vary significantly from site to site and the ways in which data are collected, presented and analysed will vary making compari- son of blasts at several locations very difficult. The definition of an optimum blast can also vary with the type of blasting. The muck-pile profile and fragmentation will be different for a dragline to that for a truck and shovel operation. In order to be able to assess blasting the mechanism has to be understood. Th rock and explosive properties considered rele- vant to blasting can then be determined. This paper discusses the generally accepted mechanism of blasting. The on-site observa- tions to assess blasting are-then listed. The mechanism of blast- ing can also be modelled and the use of modelling to optimize hlaetina ie thPn Aiernccarl

Jan 1, 1988

S. A. Tomich (Consulting Geologist, Perth) : I would like to commend Mr. Haycraft on his presentation on the economic geology of the North End of Kalgoorlie. This is an intriguing area which is in the Kalgoorlie field but not of it, inasmuch as it is separated spatially from the main Golden Mile by the Golden Pike Fault. Mr. Haycraft has stressed the differences-the mineralogical and structural differences of economic significance between the two areas.I would like to ask whether he is satisfied that the lithological sequence in the North End is the duplicate of that in the main Golden Mile area irrespective of the postulated effects of erosion, and more specifically whether there is any chance that the quartz-dolerite-greenstone of the North End may be in any way dissimilar from the quartz-dolerite-greenstoneof the Golden Mile which is tellurude bearing.J. A. Haycraft: In relating the quartz-dolerite in the Hannan's North-Mount Charlotte area back to the Golden Mile, we find some quite close similarities. Although the rocks are similar they are not necessarily one and the same.At Mount Charlotte we have three varieties of dolerite- a coarse-grained gabbroic dolerite on the eastern side of the orebody, the host rock medium grained and on the western side, a fine grained dolerite. Further west we have an amphibolitic variety of quartz dolerite.Recent drilling south of the Golden Pike fault on the Enterprise No. 20 level had indicated a remarkably similar sequence of rocks. We drilled west through a wide section of medium grained rocks into a fine grained rock and then into amphibolitic quartz dolerite before intersecting the Golden Pike fault. Williamstown dolerite was located west...

Jan 1, 1965

By D Jordan, R Wilmoth, J LeFever

Exposed, open pit mine highwalls contribute significantly to the production of acid mine drainage (AMD) thus causing environmental concerns upon closure of an operating mine. Four innovative technologies were evaluated under the US Environmental Protection AgencyÆs, Mine Waste Technology (MWTP), Prevention of AMD Generation from Open Pit Highwalls Demonstration Project. This project is funded by the US Environmental Protection Agency (EPA) and jointly administered by the EPA and the US Department of Energy (DOE) through an Interagency Agreement. The objective of the field demonstration was to evaluate the technologies ability to decrease or eliminate acid generation from treated areas of the highwall in comparison an untreated highwall area. The field demonstration was performed at the Golden Sunlight Mine (GSM) a subsidiary of Placer Dome US, located near Whitehall, Montana. GSM is an operating gold mine. The highwall at GSM was divided into five plots measuring 15.24 by 15.24 m and each technology was assigned a plot with the fifth plot being used for comparison as a background control plot. The four technologies were spray-applied. The applied in situ treatment technologies included: a modified, furfuryl alcohol resin sealant, utilising wood and agricultural by-products to coat the rock surface; EcobondTM ARD, a phosphate based process that forms a stable, insoluble compound, coating the rock surface; and two AMD passivation technologies, magnesium oxide and the Dupont technology developed to create an inert layer/coating on the pyrite, preventing oxidation. The technologies were evaluated using the following methods: ASTM D 5744-96, accelerated weathering of solid materials using a modified humidity cells; mine wall residual wall rinse sampling; microscopy; and core drilling followed by water injection testing. The following paper describes the technologies used for passivation of acid generation from the highwall, the field demonstration, and the testing results from the background and each technology plot.

Jan 1, 2003

The Osborne copper-gold deposit (within the Trough Tank project area) is located in the Cloncurry Shire about 195 kilometres south-east of Mount Isa. It is hosted by Proterozoic metasediments of the Eastern succession of the Mount Isa Inlier. The deposit is overlain by 25-40 metres of Mesozoic cover, so it represents a true "blind target". Placer Exploration has 100% outright ownership of the property, having purchased the remaining 10% interest in the property from Shell in early 1993.Intensive exploration, both surface and via drilling at Osborne, has taken place since 1985, when CSR Limited Mineral Exploration and Development Group (acquired by Placer in 1988) entered into a joint venture with Billiton Minerals. Exploration effort from 1985 to June 1988 outlined a 20 kilometre strike length of magnetic horizons, in what was termed the North-East, Central and Southern anomalies, which were drilled with weak indications of copper-gold mineralization in the North-East anomaly. During the later half of 1989, four core holes were drilled into the shallower northern partofthe North-East anomalywhere previous drilling had outlined economic intersections of mineralization. These holes encountered high-grade copper-gold mineralization confirming the potential for an economic deposit to be hosted within the ironstone sequence. Further drilling involving over 400 holes (100 kilometres of drilling) has brought the deposit up to its present resource status.The current resource inventory is 36 million tonnes grading 2.0% copper and 1.0 grams pertonne gold and includes a high-grade zone of 13 million tonnes grading 3.6% copper and 1.5 grams per tonne gold. The discovery of this potential economic mineralization resulted from a persistent exploration effort based on indications that a large mineralizing system existed within a sequence of ironstones.

Jan 1, 1993