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Rob Bills delivered the presentation at the 2014 Mining the Territory Conference. With record year on year investment in mining developments and exploration in the Northern Territory, the 8th Annual Mining the Territory Conference is perfectly placed to hear latest information on this booming region. For more information about the event, please visit: http://bit.ly/MiningtheNT2014
Citation preview
Discovering the Undiscovered
The Challenges and Opportunities
Rob Bills
MD & CEO
Regulatory regime - Overall attractiveness for mining…
Australia's Mining Industry in a Global Context 21
Aug
ust
2014
Source: Fraser Institute Survey, 2013
Finland
Ireland
Chile
Zambia
France
Peru
Botswana
Fraser Institute Annual Survey
3
Table 1: Rankings of Australian states and comparative nations and regions for the key summary
indexes in the Fraser Institute Annual Survey of Mining Companies 2013
Policy Perception
Index
Mineral Potential
Index
Investment
Attractiveness
Index
Room for Improvement
1. Sweden 1. Alaska 1. Western
Australia 1. Philippines
- 2. Western
Australia 2. Nevada -
5. Wyoming 3. Nevada - -
6. Western
Australia -
16. British
Columbia 62. Turkey
7. New Brunswick 17. Quebec 17. Northern
Territory 63. Tasmania
- 18. Queensland 18. Quebec 64. Guyana
10. Norway 19. Peru 19. Ireland 65. Malaysia
11. South Australia - 20. South
Australia 66. Namibia
12. Saskatchewan 23. Turkey 21. Queensland 67. New South Wales
13. Northern
Territory
24. Northern
Territory 22. Arizona 68. Queensland
14. New Zealand 25. Arizona - 69. New Mexico
- - 35. Minnesota -
23. Greenland 28. Zambia 36. Tasmania 78. Spain
24. Queensland 29. South
Australia 37. Peru 79. Victoria
25. Botswana 30. Botswana 38. Montana 80. Utah
26. Manitoba - 39. New South
Wales -
27. Tasmania 42. Michigan 40. Salta
(Argentina) 84. New Zealand
At the risk of complacency……
4
Globally, the Australian states all generally perform well.
The mineral policy environment is generally perceived to be better than the actual
geological potential, suggesting authorities are doing a good job of encouraging
minerals related investment into the country.
Indeed the “Room for Improvement” index suggests that for the best run states,
such as Western Australia, South Australia and the Northern Territory there are
perhaps few incremental improvements left to be made.
The scope there perhaps now lies in making truly revolutionary changes, which
change global perceptions of the nature of prospectivity itself.
By John P. Sykes & Allan Trench * By John P. Sykes & Allan Trench *
By John P. Sykes & Allan Trench - CET
A perspective from a NT Junior Explorer…..
5
Dominant ground position
– 2,500 km2 or 95% of the Tennant Creek Mineral Field
New JV with Evolution Mining ~$28m
High grade gold & copper
– Historically 15-20 g/t Au, 2-4% Cu
Processing plant
– Only gold mill in the region on care and maintenance, next to road, rail, power & gas pipeline
Mineral resources
– 6.6mt at 1.8% Cu & 1.1 g/t gold for 122,000t copper & 245,000 oz gold
– Including 100,000 oz gold at 17 g/t
Track record of exploration success
– Using new technology: HeliTEM
Tennant Creek Hunting Ground
6
One of the few underexplored
high grade gold provinces
left in Australia
Only 8% of drill holes
reached a depth
greater than 150m Ag
Bi
Au
Ag
Bi
Warreg
o
White
Devil
Orlando
North Star
Edna Beryl
Gecko
Ivanho
e
TC8 Chariot
El Dorado
Juno Nobles
Nob
Golden
Forty
Peko
Argo
122,700 t Cu
4%
91,500 t Cu
2% 1.33 moz Au
8 g/t
0.64 moz Au
15 g/t
0.84 moz Au
57 g/t 1.11 moz Au
17 g/t
118,900 t Cu
4%
Mineral resources
Historical production Size of the circle relates to the mine historical production in Au Eq.
Size of the pie relates to the proportion of metal production in Au Eq.
Au Eq. calculations used the following metal prices:
gold $1,300/oz, silver $20/oz, copper $3.00/lb, bismuth $10/lb
Lone
Star
Orlando Gecko &
Goanna
Chariot
Warrego
CIP plant
20 g/t Au
12 g/t Au
11 g/t Au
8.6 g/t Au
18 g/t Au
3.5 g/t
1.2 g/t
Undiscovered deposit
Undiscovered deposit
Undiscovered deposits
0
1000000
2000000
3000000
4000000
5000000
6000000
Au
Eq
uiv
ale
nt
oz
Deposit Name
Top 18 mines
Zipf Curve
Potential according to Zipf’s
Law
Picking up the crumbs New Generation of deposits
The prize…….is commensurate with the investment
1 deposit @ 5.2Mozs, 1 deposit @ 1.74Mozs, +++
7
Undiscovered = new style of mineralisation. Hematite hosted breccias
and/or vein style in similar structural setting. Not magnetic
Predicting the Undiscovered - Fluid Pathways for big deposits require
big structures
A combination of Gravity and Magnetics - algorithm developed by
CET 8
Production
>100oz Au
>500t Cu
9
Predicting the Undiscovered – a new 4D model of the TCMF
Undiscovered detected by electrical GPX
HeliTEM:
Most powerful in the world
Designed for deep
exploration
Only system with XYZ fields
Flown on 100m lines, 30-
50m above ground
Measures electromagnetic
field
TC deposits variably
conductive
Barren host rocks resistive
10
Detecting the Undiscovered – HeliTEM conductivities
from supergene(clays) and hypogene Cu
11
The undiscovered Discovered!
12
Monitor
Discovery
Goanna
Discovery
The “gold bullet” for Discovery – multi faceted approach
13
GODD004 - 21m @ 2.6% Cu & 0.69% Bi incl. 7m @ 4.96% Cu & 0.25% Bi
PDIP Traverse
Exploration – the life blood of the industry
14
• Overall Attractiveness of the NT – reality or perception?
• Mineral Potential Index – NT a “frontier” so pre competitive data sets are critical to
reduce exploration risk/attract investment into frontier locations (frontier can be 3D!)
• Policy Potential Index – ensure it is commensurate with the risks and rewards
(exploration is not mining!!)
• Longer term funding necessary to underpin systematic exploration – particularly
when exploring large ground positions…..
• Investment in new technology and new ideas to unlock the next generation of
deposits – in the third dimension
• Stakeholder engagement – a necessary part of the business plan
…70% of all discoveries made by nimble junior to mid sized companies….
Adding Value through Discovery & Teamwork
15
www.emmersonresources.com.au