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Bell Bay Quarry Project, Tasmania
43-101 Technical Report
Prepared by Coffey Mining Pty Ltd on behalf of:
Delta Materials Pty Ltd
Effective Date: 10th September 2010
Qualified Person: Troy Lowien – BappSc (Hons)
MINEHOBA00268AA
Coffey Mining Pty Ltd
DOCUMENT INFORMATION
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA 43-101 Technical Report – September 10th 2010
Author(s): Troy Lowien Associate Resource Geologist (MAusIMM)
Date: September 10th 2010
Project Number: MINEHOBA00268AA
Version / Status: v.01 / Final
Path & File Name: F:\mine\projects\delta\report\HOBA268AA_Delta_Bell_Bay_Report_43-101_final_v1.docx
Print Date: Tuesday, 9 November 2010
Copies: Delta Materials Pty Ltd (2)
Coffey Mining – Spring Hill (1)
Document Change Control
Version Description (section(s) amended) Author(s) D ate
01 Final Troy Lowien 23/09/2010
Document Review and Sign Off
Primary Author Troy Lowien
Supervising Principal Alex Virisheff
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA 43-101 Technical Report – September 10th 2010
Table of Contents
1 Summary ............................................ ...........................................................................................1
2 Introduction ....................................... ...........................................................................................7
2.1 Scope of Work ...................................................................................................................7 2.2 Principal Sources of Information .......................................................................................8 2.3 Independence....................................................................................................................8 2.4 Terms of Reference...........................................................................................................9
2.4.1 Aggregate Specifications and Testing..................................................................... 9 2.4.2 Units of Measure and Reference........................................................................... 11
3 Reliance on Other Experts .......................... ..............................................................................12
4 Property Description and Location .................. ........................................................................13
4.1 Project Location...............................................................................................................13 4.2 Tenement Description .....................................................................................................13 4.3 Royalties..........................................................................................................................14
5 Accessibility, Climate, Local Resources, Infrastruc ture and Physiography .......................15
5.1 Project Access.................................................................................................................15 5.2 Climate ............................................................................................................................15 5.3 Physiography...................................................................................................................15 5.4 Local Resources and Infrastructure ................................................................................15
6 History ............................................ .............................................................................................17
7 Geological Setting................................. .....................................................................................18
7.1 Regional Geology............................................................................................................18 7.2 Local Geology..................................................................................................................20
7.2.1 Stratigraphy ........................................................................................................... 21 7.2.2 Structure................................................................................................................ 21 7.2.3 Alteration ............................................................................................................... 23 7.2.4 Weathering ............................................................................................................ 24 7.2.5 Petrology ............................................................................................................... 26 7.2.6 Rock Quality .......................................................................................................... 27
8 Deposit Types...................................... .......................................................................................29
9 Mineralization ..................................... ........................................................................................30
10 Exploration........................................ ..........................................................................................31
10.1 Introduction......................................................................................................................31 10.2 Chronological Exploration Overview ...............................................................................31 10.3 Geological Mapping Method............................................................................................33 10.4 Joint Mapping ..................................................................................................................34 10.5 Geophysics......................................................................................................................35
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA 43-101 Technical Report – September 10th 2010
11 Drilling ........................................... ..............................................................................................37
11.1 Drilling Program...............................................................................................................37 11.2 Core Logging ...................................................................................................................38 11.3 Drill Summary and Interpretation.....................................................................................39
11.3.1 Central Resource .................................................................................................. 40 11.3.2 West Resource...................................................................................................... 40 11.3.3 East Resource....................................................................................................... 41 11.3.4 Drll Hole Summary ................................................................................................ 41
12 Sampling Method and Approach ....................... .......................................................................50
12.1 Quarry and Outcrop Sampling.........................................................................................50 12.2 Drill Core Sampling..........................................................................................................51
13 Sample Preparation, Analyses and Security.......... .................................................................56
13.1 Introduction......................................................................................................................56 13.2 Particle Density and Water Absorption for the Coarse Aggregate Test
Protocol ...........................................................................................................................56 13.3 Sodium Sulphate Soundness Test Protocol....................................................................56 13.4 Los Angeles Abrasion Test Protocol ...............................................................................56 13.5 Point Load Measurements ..............................................................................................57 13.6 Geochemical Analysis .....................................................................................................57 13.7 Results – Surface Samples .............................................................................................58 13.8 Results – Drill Core..........................................................................................................61
13.8.1 Dolerite Results from the East, Central, and West Resources.............................. 62 13.8.2 Dolerite and Weathered Dolerite Results from the East, Central, and
West Resources .................................................................................................... 64 13.8.3 Dolerite and Weathered Dolerite Results from the West Resource ...................... 66 13.8.4 Dolerite and Weathered Dolerite Results from the Central Resource................... 68 13.8.5 Geotechnical Results ............................................................................................ 70
13.9 Results - Geochemistry of Surface Samples and Drill Core Samples ............................71
14 Data Verification .................................. .......................................................................................75
15 Adjacent Properties ................................ ...................................................................................76
16 Mineral Processing and Metallurgical Testing....... .................................................................77
17 Mineral Resource and Mineral Reserve Estimates ..... ............................................................78
17.1 Mineral Resource Quality ................................................................................................78 17.2 Mineral Resource Quantity..............................................................................................80
17.2.1 Geological Modelling ............................................................................................. 80 17.2.2 Surface Topography.............................................................................................. 81 17.2.3 Resource Boundary............................................................................................... 82 17.2.4 Block Model Construction Parameters .................................................................. 83 17.2.5 Block Model Attributes........................................................................................... 83 17.2.6 Block model Validation .......................................................................................... 84
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA 43-101 Technical Report – September 10th 2010
17.2.7 Bulk Density Assignment....................................................................................... 84 17.3 Mineral Resources Marketability .....................................................................................84 17.4 Mineral Resource Classification ......................................................................................85
17.4.1 Introduction............................................................................................................ 85 17.4.2 Criteria for Resource Categorisation ..................................................................... 85 17.4.3 Categorised Resources......................................................................................... 86
18 Other Relevant Data and Information................ .......................................................................88
19 Interpretation and Conclusions ..................... ...........................................................................89
20 Recommendations .................................... .................................................................................92
21 References ......................................... .........................................................................................93
22 Certificates....................................... ...........................................................................................95
23 Additional Requirements for Technical Reports on De velopment Properties and Production Properties .......................... ..............................................................................96
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA 43-101 Technical Report – September 10th 2010
List of Tables
Table 1 – Bell Bay Quarry - Mineral Resources 5
Table 7.2.4_1 – Drilling Summary 25
Table 7.2.6_1 – Summary of Dolerite Quality Visual Estimates 28
Table 10.4_1 – Joint Trends 34
Table 12.1_1 – Tests Conducted on TasPort Quarry Grab Sample 50
Table 12.2_1 – Composite Sample Information 54
Table 12.2_2 – Tests Conducted on Composites 55
Table 13.7_1 – TasPort Quarry Sample Results 59
Table 13.8.1_1 – Fresh dolerite Sample Results – West, Central and East Resources 63
Table 13.8.2_1 – Fresh and weathered dolerite Sample Results – West, Central and East Resources 65
Table 13.8.3_1 – Fresh and weathered dolerite Sample Results – West Resource 67
Table 13.8.4_1 – Fresh and weathered dolerite Sample Results – Central Resource 69
Table 13.8.5_1 – Point Load Test Results 70
Table 13.8.5_2 – RQD and Joint Frequency – Diamond Drill Core 71
Table 13.9_1 – Geochemical Results – Surface Samples 72
Table 13.9_2 – Geochemical Results – Drill Core Samples 74
Table 17.1_1 – Summary of Key Quality Measurements 79
Table 17.2.4_1 – Block Model Dimensions 83
Table 17.2.5_1 – Block Model Attributes 83
Table 17.2.4_2 – Block Model Domain Coding 84
Table 17.4.3_1 – Mineral Resource Estimates 86
List of Figures
Figure 4.1_1 – Project Location 13
Figure 4.2_1 – Exploration Licence 14
Figure 5.4_1 – Local Infrastructure 16
Figure 7.1_1 – Variation in dolerite composition 19
Figure 7.2.2_1 – Fault Plan 22
Figure 10.5_1 – Gravity survey profiles 35
Figure 11.1_1 – Diamond Drill Rig 37
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA 43-101 Technical Report – September 10th 2010
Figure 12.2_1 – Core Yard 52
Figure 12.2_2 – Core Saw 53
Figure 17.2.1_1 – Geological Models 80
Figure 17.2.1_2 – Base of Weathering Model 81
Figure 17.2.2_1 – Topographic Surface Model 81
Figure 17.2.3_1 – Resource Boundary 82
Figure 17.4.3_1 – Block Model Plan View 87
Figure 17.2.3_1 – Resource Boundary 87
List of Appendices
Appendix 1 – Geology – 1:25,000
Appendix 2 – Geological Mapping
Appendix 3 – Cross Sections
Appendix 4 –Drill Hole Logs
Appendix 5 – Drill Core Photos
Appendix 6 – Surface Mapping Tables
Appendix 7 – Geotechnical Review – Coffey Mining
Appendix 8 – Geophysical Survey Report – Atlas Geophysics
Appendix 9 – Drill Core Analytical Results – Review by CQT
Appendix 10 – Petrographic Studies
Appendix 11 – Drill Core Logging Procedures
Appendix 12 – Field Procedure Manual – Geotechnical Data Collection for Exploration Geologists.
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 1 43-101 Technical Report – September 10th 2010
1 SUMMARY
Delta Materials Pty. Ltd. (Delta), which is owned 100% by Delta Minerals Corporation (Delta Minerals)
commissioned Coffey Mining Pty. Ltd. (Coffey) to provide an independent, Qualified Person’s review
and resource estimate, and to prepare an NI 43-101 compliant report based upon results from the initial
(Phase 1) exploration program at the Bell Bay Quarry Project, Tasmania. Mr. Troy E Lowien,
MAusIMM, Associate Resource Geologist at Coffey, served as the Qualified Person responsible for the
preparation of the Technical Report to support disclosure of Mineral Resources as of the
10th September 2010. This report is to comply with disclosure and reporting requirements set forth in
the Toronto Stock Exchange Manual, National Instrument 43-101 Standards of Disclosure for Mineral
Project (“NI 43-101”), Companion Policy 43-101CP to NI 43-101, and Form 43-101F1 of NI 43-101. Mr
Lowien, in addition to supervising the preparation of the Technical Report, conducted the review of the
geological data and estimation of the Mineral Resource.
Delta has conducted an extensive study looking for potential crushed stone quarry sites along the coast
of Australia to supply the Sydney market with construction material. A potential dolerite quarry site in
the Bell Bay area of the Tamar estuary, Tasmania, was selected on the basis of the following criteria:
� good quality dolerite suitable for Sydney’s construction material requirements.
� closeness of the potential quarry to a protected deep water port.
� the potential quarry occurring within a designated industrial area.
� excellent infrastructure supporting the Rio Tinto Alcan aluminum smelter, BHP Billiton Temco
ferromanganese alloy smelter and other significant industrial operations.
� an experienced industrial work force to draw upon from the immediate area and nearby mining
operations.
Delta obtained a two part Exploration Licence, EL6/2009. The northern part of the licence covers the
proposed Bell Bay Quarry Project. The licence was granted by Mineral Resources Tasmania on
August 25, 2009 for a five year tenure ending August 24, 2014. Land title is partly private freehold,
owned by Rio Tinto Alcan, and partly State Forest, managed by Forestry Tasmania.
The ground covered by EL6/2009 was previously held by Tasmanian Hardrock Pty Ltd between 1990
and 1997 as part of a plan to develop a quarry for construction materials for the export market. No
physical work was conducted in the area and the tenure has been reduced to a Retention Licence
located to the south of Delta’s proposed quarry. The Retention Licence is currently held by Bell Bay
Bluestone Pty Ltd.
A small abandoned dolerite quarry is located on West Knob, 500m east of Lauriston Reservoir and
contiguous to EL6/2009. The quarry is owned by Tasmanian Ports Corporation Pty Ltd who hold tenure
to a 1 hectare Mining Lease, 1117P/M. It is believed that the physical and chemical characteristics of
the dolerite and the structural setting are representative of the dolerite within Delta’s area-of-interest. A
large composite grab sample was collected from the Tasmanian Ports Corporation Quarry. The
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 2 43-101 Technical Report – September 10th 2010
analytical results were encouraging and the large hills to the east of the quarry, which are now referred
to as the West, Central and East Resources are believed to be composed of similar dolerite.
An exploration program was conducted within the northern part of EL6/2009 from October 2009 to
May 2010. The program consisted of geological mapping, surface rock sampling, a geophysical gravity
and magnetic survey and a total of 2,460.9 metres of diamond drilling in 21 holes. The results from this
exploration program produced sufficient geological and rock quality information to facilitate a NI 43-101
compliant resource report.
The Bell Bay Quarry Project dolerite is a coarse to fine grained, ophitic textured sill with an apparent dip
of approximately 10° to 15° to the southwest. The dolerite sill is cut by steeply dipping NW-SE, E-W
and NE-SW trending faults which separate and bound the drill tested West, Central and East
Resources. In three-dimensional modelling, the dolerite-sedimentary contact appears to have an
elongated bowl like form striking approximately 300° - 120 °. The true thickness of the pre-eroded sill is
unknown, but exceeds 170 metres as defined by drilling.
Surface mapping and orientated core measurements indicate that there are five joint trends in the
project area. Three of the joint trends parallel NW-SE, E-W and NE-SW striking faults. The N-S
trending joints appear to be the dominant trend. The low angled E-W striking and south dipping joints
are widely spaced but they could potentially have an impact on mine planning as could the shallowly
southwest dipping dolerite-sedimentary contact.
The optimal blast hole pattern and explosive type will need to be determined in order to produce the
best combination of feed to the primary crusher, reduce costs associated with secondary breakage and
limit production fines. The relatively close spacing of the steeply dipping orthogonal joint sets may
cause elongation of the fine and coarse fragments. Designing the commercial crushers specifically for
the Bell Bay dolerite should maximise the production of cubic fragments..
The West and Central Resources are separated by the Central Fault Zone with the Central Resource is
bounded on the northeast side by the East Fault Zone. These two major NW-SE trending, steeply
dipping faults have been drill tested. Interpretation of drill core structures and aeromagnetic imagery
suggests an apparent dextral strike slip displacement of approximately 450 metres on the Central Fault.
The Central and East Fault Zones are approximately 80m wide and consist of weathered, sheared and
brecciated dolerite containing predominantly clays, limonite, zeolites, chlorite and carbonate secondary
minerals. The quality of the material within the fault zones does not normally meet the Australian
Standards Specification Limit requirements for the Coarse Fraction Particle Density and Water
Absorption, Sodium Sulphate Soundness Loss and Los Angeles Abrasion Loss tests and therefore the
fault zones have been classified as waste.
The representative composite core samples were classified into the following four categories:
1. Dolerite – this material occurs within the resource and is good quality dolerite without any
significant weathering or deleterious minerals.
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Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 3 43-101 Technical Report – September 10th 2010
2. Weathered Dolerite - this material occurs within the resource and represents the weathered
dolerite in the near surface portions of the drill holes and the more strongly jointed dolerite adjacent
to the fault zones. Four of the vertical holes within the West and Central Resources that
intersected weathered dolerite at surface were not sampled from surface to an arithmetic average
depth of 4.25m.
3. Fault Zone – this material is considered waste because it contains deleterious minerals. However,
there are weathered dolerite boulders and sections of good dolerite within the fault zone which
may be separated by dry screening and then utilized for crushed material or specialty stone.
4. Sediment - this material represents the Triassic age sediments underlying the dolerite and is
considered to be waste.
The Rock Quality Designation, Core Recovery and Point Load testing indicated that the Dolerite and
Weathered Dolerite results for the West, Central and East Resources were as follows:
� Core Recovery averaged 98%, indicating competent rock within the resources.
� RQD averages 63%, which yielded a rating of 13. Together with the other criteria (Intact Rock
Strength, Joint Spacing, Joint Condition and Groundwater) in the Rock Mass Rating Classification
System produced a rating of between 60 and 80 which is described as Good on a five division
scale ranging from Very Poor to Very Good.
� Point Load testing results indicate that 97% of the core tested has a strength classification of R4
(High) to R6 (Extremely High).
The following analytical tests were determined to be critical parameters for evaluating the suitability of
the composite drill core samples for construction material:
� Coarse Fraction Particle Density (>2.5t/m³) and Water Absorption (<2%)
� Sodium Sulphate Soundness Loss (≤6% for concrete exposure classification C and ≤9% for
concrete classification B1 and B2)
� Los Angeles Abrasion Loss (<30%).
The Bell Bay Quarry Project dolerite appears to have comparable properties to material being used in
the Sydney region. The length weighted averages for the Dolerite and Weathered Dolerite Results from
the West, Central and East Resources appear to be:
� Hard and strong (Wet Strength ~ 266kN).
� Dense and fine grained (Coarse Fraction Apparent Particle Density 2.93t/m³ and Water Absorption
1.13%).
� Sound crushed fines (Fine Fraction Apparent Particle Density 2.85t/m³ and Water Absorption
2.59%).
� Sound crushed fines (Fine Fraction Particle Density (SSD) 2.79t/m³ and Water Absorption 2.59%).
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 4 43-101 Technical Report – September 10th 2010
� Durable (Wet/Dry Variation 15.04%, Los Angeles Abrasion Loss 13.89%, Sodium Sulphate Loss
4.12%).
� Good resistance to polishing (Polished Aggregate Friction Value 48.50).
� Low Acid Soluble Chloride (<0.001%).
� Low Acid Soluble Sulphate (reported <0.01%).
� Low percentage of crushed fines (<75µm, 2.25%).
Dolerite, with the exception of one composite, yielded test results that exceed the Australian Standards
Specification Limit requirements for use in the concrete and road construction industries. The
composite exception, from BB10-20, was sampled from a zone of closely spaced joints adjacent to the
Central Fault Zone and contains weathering and alteration minerals.
Six composites within the West and Central Resources are classified as Weathered Dolerite.
Weathered Dolerite occurs close to the surface or in areas containing a higher frequency of closely
spaced joints.
� Three of the six composites were sampled from approximately the upper 30m of the drill core and
yielded results that did not meet Australian Standards Specification Limit requirements for at least
one of the critical parameters.
� One of the six composites was collected from a zone of closely spaced joints adjacent to the
Central Fault Zone. The composite contains weathering and alteration minerals and yielded
results that did not meet Australian Standards Specification Limit requirements for at least one of
the critical parameters.
� Two of the six composites exceeded the Australian Standards Specification Limit requirements for
the critical parameters.
Testing of the Dolerite and Weathered Dolerite from the West, Central and East Resources indicated
that the arithmetic and length weighted averages for all tests, with the exception of the Fine Fraction
Water Absorption, exceed the Australian Standards Limit requirements for construction material.
Design of a commercial processing plant will have wet classification to remove a large portion of the
<75µm material and it is hoped this will improve the water absorption result for the -4.75mm fraction.
Therefore, it is believed that the Dolerite and Weathered Dolerite can be blended during mining to
produce a product that would meet the requirements for construction material in the Sydney market.
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 5 43-101 Technical Report – September 10th 2010
The mineral resource estimate for the Bell Bay Quarry Project is based upon three components:
� Demonstration of physical and chemical property homogeneity ie Mineral Resource quality.
� Volume/tonnage estimate of material ie Mineral Resource quantity.
� Marketability of the Mineral Resource.
The volume and tonnage of the Bell Bay dolerite in the proposed quarry area were estimated from a
three-dimensional block model utilizing commercial mine planning software (Surpac) and confined by
topographical as well as interpreted lithological and structural constraints.
Delta has demonstrated through its studies to date that the Bell Bay dolerite has a reasonable potential
of being a commercial source of crushed rock for aggregate. Materials testing of drill core from the
West, Central and East Resource areas show that the dolerite has acceptable abrasion resistance,
sulphate soundness loss and water absorption values. Independent studies of the Sydney aggregate
market demonstrate that the area is permanently aggregate deficient and that marine imports or hauling
long distances by truck or train will be required to meet projected demands.
The resource categorisation has been based on the robustness of the various data sources available,
including:
� Geological knowledge and interpretation.
� Surface outcrop observations.
� Drillhole logging and measurements.
The estimated Measured, Indicated and Inferred Resources areas follows (Table 1):
Table 1
Delta Materials Pty Ltd Bell Bay Quarry Project
Mineral Resources – 10 th September 2010 Compiled using Surpac Mining Software
Mineral Resource Category Volume (Mm3)
Tonnes (Mt)
Measured 78.2 229 Indicated 34.6 101
Total - Measured and Indicated 112.9 331 Inferred 3.6 10
A budget estimated at $1.75M is proposed for the Phase 2 drilling program consisting of 40 angled
holes and one vertical hole totalling 5,359 metres. Angled holes are recommended because they will
yield a better understanding of the distribution and characteristics of the predominantly sub-vertical
jointing. Included in the total are three vertical water bore holes totalling 350 metres for hydrogeology
studies and the extension of two drill holes 20 metres into the sediments for geotechnical studies.
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 6 43-101 Technical Report – September 10th 2010
It is recommended that prior to the Phase 2 drilling program, a geophysical resistivity orientation survey
be conducted across BB10-12 and the Central Fault Zone. The purpose is to determine if the
weathered dolerite and the fault zone material has an anomalous conductive response due to clay
content. If successful, then it is recommended that the resources be surveyed by geophysical
resistivity. Defining the zones of deleterious material will improve drill hole planning and reduce drilling
costs.
The purpose of the exploration program is as follows:
� to determine the area of influence of weathered dolerite within the resources.
� to determine the area of influence of intensely jointed dolerite adjacent to the faults zones within
the resources.
� to increase the statistical database of composites to allow interpolation of quality parameters
and/or definition of sub-types of unsuitable materials with confidence in volume zones
representative of annual periods in a typical mining sequence.
� to acquire hydrogeological and geotechnical data for baseline studies and mine planning.
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 7 43-101 Technical Report – September 10th 2010
2 INTRODUCTION
2.1 Scope of Work
Delta Materials Pty. Ltd. (Delta), which is owned 100% by Delta Minerals Corporation (Delta
Minerals) commissioned Coffey Mining Pty. Ltd. (Coffey) to provide an independent, Qualified
Person’s review and resource estimate, and to prepare an NI 43-101 compliant report based
upon results from the initial (Phase 1) exploration program at the Bell Bay Quarry Project,
Tasmania. Mr. Troy E Lowien, MAusIMM, Associate Resource Geologist at Coffey, served as
the Qualified Person responsible for the preparation of the Technical Report to support
disclosure of Mineral Resources as of the 10th September 2010. This report is to comply with
disclosure and reporting requirements set forth in the Toronto Stock Exchange Manual,
National Instrument 43-101 Standards of Disclosure for Mineral Project (“NI 43-101”),
Companion Policy 43-101CP to NI 43-101, and Form 43-101F1 of NI 43-101. Mr Lowien, in
addition to supervising the preparation of the Technical Report, conducted the review of the
geological data and estimation of the Mineral Resource.
This report has been compiled to summarise the results of exploration, data collection,
database validation and resource estimation of the Bell Bay Quarry Project, using the
exploration data collected by Delta up to the end of August 2010.
Delta has conducted an extensive study looking for potential crushed stone quarry sites along
the coast of Australia to supply the Sydney market in New South Wales with construction
material. A potential dolerite quarry site in the Bell Bay area of the Tamar estuary in
Tasmania was selected on the basis of the following criteria:
� good quality dolerite suitable for Sydney’s construction material requirements.
� the potential quarry occurring within an industrial designated area.
� a protected deep-water harbour along the north coast of Tasmania.
� closeness of the quarry to a potential deep-sea port.
� excellent infrastructure supporting the Rio Tinto Alcan aluminum smelter, BHP Billiton
Temco ferromanganese alloy smelter and other significant industrial operations.
� an experienced industrial work force to draw upon from the immediate area and nearby
mining operations.
The proposed Quarry would be a conventional open pit style, utilising standard equipment and
machinery. Drilling and blasting will be required. Production capacity is estimated to be up to
5 million tonnes per year. Run of mine material would be hauled to a plant site for crushing,
washing and storage in stockpiles. The product would be conveyed via a high-speed
overland conveyor to a shiploader and directly into holds of large ships. These will discharge
their products in Sydney to supply its construction material markets.
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 8 43-101 Technical Report – September 10th 2010
Technical staff from Coffey reviewed plans for the Phase 1 drilling program and have visited
the project site to observe exploration drilling in progress. Coffey staff have also inspected
Delta’s core handling facility in Georgetown, Tasmania, to review core logging and processing
procedures. During all site visits, Coffey staff were accompanied by Delta geologist Mr Alex
Boronowski.
Mr Lowien visited the project site on the following dates:
• 12th of October 2009 - to discuss the project, review the Phase 1 drilling program and
inspect the proposed drilling sites.
• 22nd of March 2010 – to inspect Phase 1 diamond drilling activities and core handling and
logging procedures. Mr Lowien observed the drilling of diamond drill hole BB10-2 by
Edrill Pty. Ltd. He also inspected the core handling facilities in Georgetown, where the
first hole was laid out ready for logging. Discussion of composite sample interval
selection was also discussed at this time.
• 2nd of June 2010 – to inspect core after the completion of Phase 1 drilling and to discuss
project progress. Mr Lowien observed the collection of point load measurements from
diamond drill core samples.
2.2 Principal Sources of Information
Delta technical staff have provided data relating to geological information and interpretations,
the master drilling database and other relevant technical data. In summary, the following key
digital data relevant to the resource estimation study were provided:
� Drillhole database (Microsoft Excel spreadsheet format), including collar location and drill
hole information, downhole surveys, geological and geotechnical logging data, magnetic
susceptibility data, .
� Register of outcrop mapping (Microsoft Excel spreadsheet format).
� Point load measurement data.
� A geological report detailing the outcomes of the Phase 1 exploration program.
� A collection of plan maps and sections relating to drilling results and geological
interpretations.
� A detailed digital terrain model representing the topographic surface in the project area.
2.3 Independence
Coffey Mining is part of Coffey International Limited, a highly respected Australian-based
international consulting firm specialising in the areas of exploration, geology, mining,
metallurgy, geotechnical engineering, hydrogeology, hydrology, tailings disposal,
environmental science and social and physical infrastructure.
Coffey Mining Pty Ltd
Bell Bay Quarry Project, Tasmania – MINEHOBA00268AA Page: 9 43-101 Technical Report – September 10th 2010
Neither Coffey Mining, nor the authors of this report, have or have had previously any material
interest in Delta or related entities or interests. Our relationship with Delta is solely one of
professional association between client and independent consultant. This report is prepared
in return for fees based upon agreed commercial rates and the payment of these fees is in no
way contingent on the results of the report.
2.4 Terms of Reference
2.4.1 Aggregate Specifications and Testing
The Australian Standards publish specification limits for crushed stone used in construction in
Australia. Australian Standards Specification Limit requirements vary depending on the area,
climate and desired use. Tests follow rigid protocols and include the following:
� Los Angeles Abrasion Loss Test: This is a standardized test in which crushed material is
subjected to impact and abrasion from steel balls in a mill for a set amount of time. The
amount of material lost to fines is measured. Most specifications for bituminous concrete
and Portland cement concrete require a loss of less than 30%.
� Sodium Sulphate Soundness Test: The resistance to drying and wetting cycles of sea
water or saturated air is measured by subjecting crushed materials to repeated cycles of
immersion and drying in sodium sulphate solution. The amount of fines produced in the
process is measured. Specifications for bituminous concrete and Portland cement
concrete require a loss of less than <6% for concrete with “concrete exposure
classification C” and <9% for “concrete exposure classification B1 and B2”, the most
common construction material uses.
� Gradation Test: The rock is crushed at variable starting sizes to determine the natural
gradation in grain sizes produced from each. Material with a uniform and wide range in
sizing (from coarse to fine) will be desirable for a product (such as foundation concrete)
different from one with a narrow range in grain sizes (such as drainage material).
Ranges allowable for each sieve size are relatively wide.
� Deleterious Materials: The amount of deleterious materials such as organic matter,
chert, clay, coal, coke, shale and soft particles are measured. No more than 0.25% clay
lumps, 2.0% soft fragments and 0.25% coal and lignite are allowed.
� Fines: A wash test is used to measure the amount of minus 75µm material naturally
present or produced in crushing. Excessive fine material will prevent the aggregate from
draining freely or may form an unwanted coating on coarse particles, which will require a
binder to be added to the mix. Fines are present due to natural clay content of the
material or the presence of clay-coated fracture planes in the rock. Tests should indicate
less than 4.0% excess fines.
� Fine fraction Particle Density (Specific Gravity) and Water Absorption Test: The particle
density and water absorption is measured by water immersion. The specific gravity is
used to determine the Portland cement or bitumen concrete mixture. The amount of
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water absorption is necessary to determine the amount of water that must be added in
concrete mixes. Acceptable specific gravity specification is >2.5t/m³ and a water
absorption specification <2.5%.
� Coarse fraction Particle Density (Specific Gravity) and Water Absorption Test: The
particle density and water absorption is measured by water immersion. The specific
gravity is used to determine the Portland cement or bitumen concrete mixture. The
amount of water absorption is necessary to determine the amount of water that must be
added in concrete mixes. Acceptable specific gravity specification is >2.5t/m³ and <2.0%
for water absorption.
� Particle Shape 2:1 and 3:1: Crushed particles should be as cubic as possible with a
minimum of flat and elongated pieces. Metamorphic rocks or sheared rocks often have a
platy cleavage and produce an unacceptable amount of flat particles. Bituminous
concrete and Portland cement concrete specifications require <10% 3:1 and <35% 2:1
elongated particles. Note, that the P value is generally improved when designing the
production crusher.
� Wet/Dry Strength Variation (%): A durability test where for all cases the wet/dry strength
variation shall not exceed 25% as required for the highest level concrete exposure
classification.
� Wet Strength (kN): Refer to the above durability test. Specification limit >100kN
� Dry Strength (kN): Refer to the above durability test. Specification limit >150kN
� Chlorides: The chloride ion content of aggregates determined quantitatively shall be
reported if in excess of 0.033%
� Sulphates: The sulphate ion content of aggregates determined quantitatively shall be
reported if in excess of 0.01%.
� Polished Aggregate Friction Value (PAFV): a pendulum friction test that determines the
susceptibility to polishing expressed as the polished aggregate friction value (PAFV). A
PAVF of ≥44 is the acceptable limit.
Delta tested the Bell Bay dolerite using the above listed tests. These tests provide the most
important measures of suitability for crushed rock aggregate and are adequate at the present
stage of the project.
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2.4.2 Units of Measure and Reference
Coordinate System: GDA 1994, MGA Zone 55
Projection: Transverse Mercator
Datum: GDA 1994
% = percent
° = degrees
°C = degrees Celsius
cm = centimetres
g = grams
g/cc = grams per cubic centimetre
ha = hectares (10,000 square metres)
kg = kilograms
km = kilometres
km² = square kilometres
kN = kiloNewtons
M = millions
m = metres
m³ = cubic metres
masl = metres above sea level
mm = millimetres
ppm = part per million
st = short ton
t = dry metric tonne
wt% = weight percent
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3 RELIANCE ON OTHER EXPERTS
Coffey’s review and resource estimate of the Bell Bay Quarry Project has relied upon the
representations and judgements of the following parties in regards to description of mineral
leases, regional and local geology, material properties and marketability. Coffey used this
information under the assumption that each individual is a Qualified Person:-
� Mr Alex Boronowski and Mr Ken Morrison, geologists working for Delta Materials Pty Ltd,
prepared information relating to mineral leases, regional and local geology, deposit type,
exploration results and marketability.
� Mr Michael van Koeverden, Principal of Concrete Quarry Technical Services Pty. Ltd.,
Newcastle, NWS provided consultation to Delta regarding the test results for the Bell Bay
dolerite and compared the results with the various Australian Standards Specification
Limits as required by the Sydney construction material market.
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4 PROPERTY DESCRIPTION AND LOCATION
4.1 Project Location
The Bell Bay Quarry Project is located in the Tippogoree Hills of the north-eastern Tamar
Valley, Tasmania, Australia (Figure 4.1_1). It is situated 200km north of the Tasmanian
capital Hobart, and 40km north of Launceston.
Figure 4.1_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Project Location
4.2 Tenement Description
The Bell Bay Quarry Project is situated within Exploration Licence 6/2009. This licence is
broken up into northern and southern parts with a total area of 17km2 (Figure 4.2_1). The
licence (Category 3 – Construction Materials) was granted to Delta Materials Pty. Ltd. by
Mineral Resources Tasmania, on August 25, 2009, for a five year tenure ending on
August 24, 2014. A work commitment of $20,000 is required for the first two years of
exploration and a rent of $22.44 per square km is due annually on the August 25th anniversary
date.
The Bell Bay Quarry Project is entirely within the northern part of EL6/2009. Land title is
partly privately owned freehold and partly State Forest, managed by Forestry Tasmania. The
freehold land is owned by Rio Tinto Alcan, who operate the Bell Bay aluminium smelter
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located approximately 3km to the west, and the State Forest portion falls within the
Tippogoree Hills Forest Reserve and is managed by Forestry Tasmania.
Exploration Licences issued by the State Government agency, Mineral Resources Tasmania,
empower the licence holder to explore on both private land and State Forest, following
guidelines set out in the Mineral Exploration Code of Practice (Bacon, 1999).
Figure 4.2_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Exploration Licence
4.3 Royalties
Royalty in Tasmania is payable under Section 102 of the Mineral Resources Development Act
1995 (MRDA) in accordance with Part 3 of the Mineral Resources Regulations 2006 (MRR).
A royalty is payable on all minerals recovered under a mining lease. Royalty is payable to the
Minister in respect of any mineral recovered from Crown land, and in respect of any mineral
owned by the Crown which is recovered from private land.
The act levies royalty at a rate of AU$0.60 per tonne for stone (crushed and broken) as at the
1st of July 2010.
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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTR UCTURE AND PHYSIOGRAPHY
5.1 Project Access
The project area has all year round vehicle access via a network of 4WD tracks linked to
bitumen main roads from the west (East Tamar Highway) and north (Bridport Road). The
East Tamar Highway connects the area to Launceston, with a population of 105,000, located
40km southeast of the project area. Daily flights from Launceston Airport connect to all major
Australian cities via Melbourne, Sydney or Brisbane.
5.2 Climate
The Bell Bay area has a cool to warm, temperate maritime climate, with a daily sea breeze
influence throughout the year. Climate data for the area are obtained from the closest
Commonwealth Bureau of Meteorology station located in Launceston. Mean minimum
temperature ranges from 2.60C in July to 11.50C in February, compared to mean maximum
temperatures ranging from 11.30C in July to 23.90C in February. Mean monthly rainfall ranges
from 40mm in January to 96.8mm in August and mean daily 3pm wind speed ranges from
11.6km/hr in June to 23.1km/hr in December.
5.3 Physiography
The physical geography of the area is dominated by the Tippogoree Hills, a northwest-
southeast trending strike range of dolerite capped hills extending for at least 8km and forming
the eastern margin of the Tamar Graben, a rift basin which contains the Tamar River. In the
resource area the dolerite hills range in elevation from approximately 50 to 250 metres above
sea level (masl) and the landscape is dissected by ephemeral creeks which drain in a
generally south westerly direction into Lauriston Reservoir, Howell Reservoir and the Tamar
River.
5.4 Local Resources and Infrastructure
The Bell Bay port, located 4 km west of the project area, on the eastern shore of the Tamar
River, is the major deep water industrial shipping port in Tasmania and handles 50,000 tonne,
Handimax-size cargo ships during bulk loading for the aluminium, manganese and wood
product industries located at Bell Bay (Figure 5.4_1). The service town for the Bell Bay
industrial complex is George Town, located 3 km northwest of Bell Bay. George Town has a
population of approximately 5,000 and an industrially based economy. All the normal retail
and engineering services required to support the current stage of the project are available in
the community.
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Figure 5.4_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Local Infrastructure Exploration Licence Boundaries, Drillhole Locations
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6 HISTORY
No evidence of previous mineral exploration activities or results relating to the area covered
by EL 6/2009 are known to Delta. The ground was previously held under Exploration Licence
by another company, Tasmanian Hardrock Pty Ltd., between 1990 and 1997 as part of their
construction materials Exploration Licence 10/1990, but no exploration results for the area
exist in the Mineral Resources Tasmania archives. In 1997 two portions of the expired
EL10/1990 were converted to Retention Licences 2/1997 and 3/1997 and subsequently title to
RL 3/1997, located between north and south parts of Delta’s EL 6/2009, was transferred to B3
(Bell Bay Bluestone) Pty Ltd, which presently maintain a year by year tenure on RL 3/1997.
Tasmanian Ports Corporation Pty Ltd acquired a 100m by 100m, Mining Lease 1117P/M to
cover the West Knob dolerite (Figure 5.4_1). West Knob is located approximately 500 m east
of Lauriston Reservoir and adjacent to Delta’s EL 6/2009. The mining tenement was a source
of armour rock for the Bell Bay port development.
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7 GEOLOGICAL SETTING
7.1 Regional Geology
Middle Jurassic dolerite, with K-Ar dates averaging 175+/- 8 Ma (Calver and Seymour, 1998),
outcrops over approximately 30,000km2 of central-southeastern Tasmania. About 15,000km3
of dolerite is estimated to have intruded into post orogenic, flat lying Carboniferous-Triassic
sedimentary rocks which comprise the Parmeener Super Group stratigraphy of the Tasmania
Basin (Banks et al, 1989). The Tasmanian dolerite represents a minor fraction of the total
magma volume injected into the upper crust as a precursor to the breakup of Gondwana
Land, including the separation of Tasmania from Antarctica, which JOIDES (Joint
Oceanographic Institutions for Deep Earth Sampling) deep sea drilling indicates was
completed during the Eocene.
Gondwana Mesozoic dolerites and extrusive equivalents have a tholeiitic continental
geochemical and isotopic signature and tectonic setting, comparable to major basaltic
provinces such as the Karoo of southern Africa and the Deccan Traps in India (Hergt and
McDougall (1989). In the Tasmania Basin, the large majority of dolerite occurs as stratiform
or slightly discordant sills and cone sheets, sometimes with stacked interstratified sills
connected by feeder dykes (Leaman, 2002). Only one occurrence of lava is recorded, near
Lune River in southern Tasmania, but it is likely that extrusive rocks have been eroded during
unroofing of the sills to create the current outcrop distribution (Sutherland, 1977). Leaman
(1975) and Leaman and Richardson (1981) studied feeder distribution from detailed gravity
surveys over two regions. They estimated that feeder spacing averaged 4-8 kilometres and
that feeder axial trends showed a strong approximately north-south alignment.
The whole rock chemistry of Tasmanian dolerites is very similar to the Ferrar Group in
Antarctica and on the basis of 87Sr/86Sr initial ratios and Hergt and Brauns (2001) conclude
that a common parental magma is likely. In general Tasmanian dolerites are higher in SiO2,
CaO and Al2O3 and lower in FeO, TiO2, Na2O, K2O and P2O5 than most Gondwana
continental tholeiites.
Typical dolerite away from chilled margin contacts has a medium grained ophitic texture
composed essentially of plagioclase feldspar (anorthite 60-70) and clinopyroxene (augite and
pigeonite) crystals with a glassy quartz and alkali feldspar rich mesostasis (very fine grained
quartz-feldspar matrix) infill. More detail regarding the mesostasis infill is contained in the
MRT petrographic studies (Appendix 10). Near basal sill contacts containing orthopyroxenes
may be the result from pigeonite inversion. The dolerites are oversaturated in silica and
uncommon highly fractionated facies of pegmatite and granophyre occur with modal quartz
crystals, and rarely, with iron olivine near the top of a sill. The general fractionation trend from
the base to the top of a sill is one of increasing Fe in pyroxene at the expense of Ca and Mg,
increasing alkali feldspars at the expense of Ca plagioclase, increasing modal quartz and an
increasing proportion of mesostasis relative to crystals. These trends provide opportunity for
thin section petrography to help in predicting nearness to a chilled margin contact.
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Ilmenite and magnetite are the main accessory opaque minerals and result in the dolerite
being weakly to moderately magnetic relative to the host stratigraphy. Dolerite density varies
in a typical sill from 2.8-3.0 t/m3, in direct correlation with pyroxene content which ranges from
approximately 45% near the sill base, but above the chilled margin, down to 15% near the sill
top, but below the contact (Figure 7.1_1).
Figure 7.1_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Vertical Variation in Composition and Density of Ju rassic Dolerite Through a Thick Sheet (McDougall 1958)
Regional metamorphism and cleavage-forming folding are absent in Tasmanian rocks
younger than Late Carboniferous (Williams, 1976), so the structural geology of the dolerite is
controlled by a combination of pre Jurassic major crustal fractures, magma cooling jointing
and post crystallization faulting, fracturing and veining. Post Jurassic deformation in
Tasmania, as it is currently understood, is entirely of an extensional rifting style, controlled by
continental break up and characterized by normal faulted graben structures and strike slip
shears (Morrison et al, 1989, Seymour and Calver, 1998). Apart from relatively minor Tertiary
syn-magmatic alteration at intrusion contacts, most thermal alteration of the dolerite appears
to be controlled by Tertiary faulting and burial depth at the time of structural dilation
(Sutherland, 1977).
Tasmanian Geological Survey regional mapping shows evidence of sub vertical cooling joints
with a spacing of a few centimeters close to dolerite contacts, in contrast to spacing of 3-5
metres more distant from contacts (Forsyth, 1984). Widely spaced more penetrative sub
horizontal sheet jointing parallel to contacts and joints and veins dipping at 40-60 degrees are
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also mapped within the Tasmanian dolerites. Many of the non vertical joints and veins are
likely to be Tertiary tectonic structures, rather than cooling joints, and any associated vein or
secondary fracture fill mineralogy may be related to depth of burial, Tertiary volcanism and
associated hydrothermal events or low temperature weathering processes.
Landscape features important in mapping dolerite outcrop distribution include wedge shaped
aprons of talus at the base of flat topped cliffs or escarpments of outcrop. This morphology
ranges in scale from mountain size down to bench topped steep outcrop slopes of only a few
metres, but regardless of scale it is common for the talus at the foot of outcrop slopes to mask
basal sill contacts which are invariably much closer to the dolerite outcrop than is indicated by
mapping the talus. Detailed aeromagnetics in combination with field mapping and
topographic considerations can lead to an accurate pick for a dolerite contact covered by
dolerite talus.
The Tamar Graben is a good example of structural focusing of intrusions and resultant
landform scale fabric. The map in Appendix 1 shows the regional geology surrounding the
Bell Bay Quarry Project in the northeastern portion of the Tamar Valley. The dolerite on
Tippogoree Hills is broadly stratiform and appears to have intruded into a unit of Triassic
sandstone and micaceous mudstone, stratigraphically near the top of the Parmeener Super
Group rocks preserved in the region. The entire sequence of Permo-Triassic sediments and
Jurassic dolerite is structurally NW-SE aligned, conformable with the strike of the Tamar
Graben. Numerous small scale faults are mapped within the sedimentary units and implied
through the dolerite due to the fabric defined by airphoto lineaments. A major east-west
structure is apparent in the approximate position of Bridport Road but south of Bridport Road
the mapped faults show only minor local disruption to the stratigraphy. Several dip and strike
readings in Permian sedimentary rocks north of Tippogoree Hills consistently show a dip to
the southwest, towards the graben axis, at an average dip angle of 180. It is likely that the dip
of the dolerite and host sedimentary rocks is controlled by graben faulting and will be
conformable with the strike trend of the regional dolerite-Triassic sediment contact dipping
approximately 11° to the southwest.
7.2 Local Geology
The factual descriptions and interpretations in this section of the report are based on
information sourced from the following data:
� Delta Materials Geological Mapping (Appendix 2).
� Delta Materials Drill Logs-BB10-01 to BB10-21 (Appendix 4)
� Delta Materials Core Photos BB10-01 to BB10-21 (Appendix 5)
� Coffey Laboratory Drill Core Analytical Results and Review by CQT Services Pty Ltd
(Appendix 9)
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� Mineral Resources Tasmania, Vancouver Petrographics Ltd., and AMEC Petrology
Reports and Geochemistry (Appendix 10)
� Atlas Geophysics Pty Ltd Gravity/Magnetics Survey and SMEG Report (Appendix 8)
� Tasmanian Geological Survey Digital Geology Atlas 1:25000 Scale Bell Bay Sheet 4844
(Appendix 1)
� AGSO P699 North Tasmania Aeromagnetics Survey, NGMA Project, 1999.
7.2.1 Stratigraphy
All 21 diamond drill holes in the Phase 1 drilling program intersected a basal
dolerite-sedimentary contact. In all instances the contact included a fine grained glassy
textured chilled margin within the dolerite, overlying a sedimentary sequence of dominantly
medium grained, trough cross bedded, quartz and quartz-mica sandstone, interbedded with
laminated mudstone and organic-rich siltstone. Fining-up cycles within the sediments are
common, with the basal unit to each cycle being either a thin mudstone pebble conglomerate
or a thin quartz granule wacke. The sedimentary rocks also outcrop near the northern and
southern margins of the dolerite deposit and in both locations columnar cooling joints in
hornfelsed sandstone indicate closeness to the contact and, in combination with the drill
intersections, demonstrate that the dolerite deposit is a stratiform sill.
The sequence of sedimentary rocks which underlay the dolerite also has been mapped,
mainly as subcrop, along the northeast contact with the Tippogoree Hills dolerite (Appendix 1)
and regionally the sediments are litho correlates of the lower Triassic fluviatile, quartz
sandstone dominant sub division of the Parmeener Supergroup within the Tasmania Basin
(Forsyth, 1989).
The dolerite sill shows a consistent internal stratigraphy expressed as a decrease in grain size
and change in texture from top to bottom. Drill core commonly shows a coarse grained, more
graphic textured dolerite at the top of the hole, grading down to medium grained ophitic
textured dolerite (the most common type overall), and with a fine grained, relatively thin chilled
margin above the basal contact. The chilled margin dolerite is darker in colour, finer grained
and has a slightly glassy and fine porphyritic texture compared to the overlying dolerite. It is
always more magnetic than the overlying dolerite. The fine grained chilled margin dolerite is
present in every hole, whereas the gradation from coarse grained down hole to medium
grained dolerite was not observed in every hole, but is sufficiently widespread to support the
interpretation that the deposit is a single sill
7.2.2 Structure
The currently identified deposit is closed at depth stratigraphically and is bound on four sides
and bisected into two fault blocks by a combination of proven and inferred faults
(Figure 7.2.2_1). Several cross sections looking north, show average apparent dips for the
basal dolerite contact ranging from 80 to 130 to the southwest (Appendix 3). The contact dip
tends to steepen close to the central fault and to the faults at the northern, eastern and
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southern deposit boundaries. In three dimensional modelling, the contact surface appears to
have an elongated east-west trending bowl form, but overall plunging to the southwest and
remaining open to the southwest.
Figure 7.2.2_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Proven an Inferred Fault locations
The NW-SE trending Central Fault and East Fault have been proven by 9 and 2 diamond drill
holes respectively; whereas the parallel West Fault is inferred from correlated anomalies on
modelled gravity profiles (refer to Section 10.5 for details regarding the gravity survey).
Drilling shows that the Central Fault and East Fault are broad zones, up to 80 metres wide, of
strained dolerite characterized by intervals of intense fracturing and brecciation, alternating
with intervals of relatively massive unstructured dolerite. The Central Fault is the best
understood fault structure within the deposit. Core logging indicates that the zone of
deformation is approximately 80 metres wide in the central part of the deposit and that the
structure has a near vertical dip, with measurements varying from >850 NE to >850 SW.
There is evidence of relatively late strike slip movement on the Central Fault, in the form of,
firstly, topographic and aeromagnetic imagery anomalies showing dextral offset and,
secondly, horizontal slickensides on zeolite minerals along joints/veins within core from
vertical drill holes. Inferred faults EW 1, EW 2 and EW 3 form the northern and southern
boundaries of the deposit. These structures are inferred from strong topographic / drainage
lineaments and aeromagnetic data discontinuities.
Two types of planar structures are recognised in outcrop and drill core; magmatic cooling
joints and less common post intrusion tectonic joints. First order cooling joints occur as near
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vertical polygonal columns with a typical diameter of 2 to 3 metres. In plan view sets of
curvi-planar joints originate from the corners of the polygons and exhibit a fan-shaped form
with a closer spaced main set and a relatively open spaced orthogonal set. In outcrop
mapping these second order cooling joints are by far the most abundant structures exposed.
A stereographic projection of poles to cooling joints mapped across the deposit shows that
they are concentrated into separate steeply north-dipping and steeply east–dipping
populations. These data were used in combination with the obvious northwest-southeast
striking tectonic fabric, to design angled drill holes in the phase 1 program with 050° and 230°
grid azimuths. In drill core the cooling joints range from completely annealed faint traces with
a slightly wavy to stepped form to open fracture filled with secondary vein style alteration
minerals.
Low angle joints and fractures interpreted as having a tectonic origin are exposed in the Port
Authority quarry and in drill core, where they rarely show dilation and secondary vein
mineralization. In some outcrops a subtle inclined planar surface cutting through the columns
is probably the same structure. Sets of narrow wispy carbonate filled gash veinlets occur in
the chilled margin dolerites in some holes. The chilled margin dolerite and contact hornfels
are especially brittle, in contrast to the juxtaposed ductile sediments, the carbonate veinlets
are often accompanied by intense fine blocky fracturing. Fault, fracture and joint structuring
are a major controlling factor on the frequency and depth penetration of alteration and
weathering.
7.2.3 Alteration
Two styles of hydrothermal alteration consistently occur in the dolerite drilled to date.
Volumetrically the more important style is vein mineralization contained in steeply dipping
fractures, which appear in most cases to be tectonically dilated cooling joints, and as matrix
infill in the fault zone breccias described above. The highest concentration of alteration
occurs within the fault zone and drops off dramatically outwards into the more competent
dolerite contained within the Central and West Resources. This alteration is believed to be
due to fluids generated during graben style deformation which are temporally associated with
the Tertiary age basaltic event.
The mineralogy comprising these fracture-fill veins consists of varying proportions of white
crystalline zeolites and carbonates combined with various green, cream-brown, white and pink
earthy phyllosilicate minerals. Rare vein quartz is associated with calcite. The earthy
minerals often exhibit a waxy lustre, enhanced on slickensided surfaces, indicating some post
veining movement. In general appearance the suite of earthy minerals resemble serpentine
but the lack of any evidence during logging of the viscosity expected from talc, or of fibrous
amphibole minerals, combined with an absence of serpentinisation of the dolerite wall rocks,
indicates that the minerals are probably mixed layer clays in the chlorite-illite–smectite group.
The relative proportions of crystalline vein minerals relative to earthy clay minerals filling
fractures, increases down hole and in particular increases below the base of oxidation,
indicating that some of the clay minerals may be weathering products.
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Apart from a narrow zone immediately beneath the basal dolerite contact, pervasive alteration
is absent in the sediments underlying the dolerite. The presence of pervasive iron oxide in
sandstone below the contact, with no visible destruction of the primary sandstone texture, and
regional evidence of springs transmitting ground water along dolerite-sandstone contacts
demonstrate that sufficient porosity and permeability exist in the Triassic sandstones to host
hydrothermal alteration if fluids from a Tertiary age volcanic source had reached the dolerite.
The most likely origin of this alteration style is from metasomatic alteration of the dolerite,
localised in fractures formed on pre existing cooling joint planes of weakness, during
Cenozoic graben forming deformation and unroofing of the dolerite.
Alteration around the dolerite-sedimentary rock contact is contact metamorphic in style and
includes a fine grained, glassy, dark coloured chilled margin in the dolerite and an oxidized
hornfelsed sandstone or mudstone zone in the sediments near the contact. The total interval
of visible alteration either side of the contact ranges from approximately 1-10 metres in the 21
intercepts seen to date and in some cases is quite narrow and weak in intensity (Appendix 4),
which probably reflects the general low water content of dolerite magmas. The contact
alteration zone in some holes shows evidence of a Redox reaction with chloritisation in the
dolerite and limonite / hematitic oxidation of the sediments. Post intrusion deformation has
focused on the brittle-ductile contrast at the contact, with intense fine fracturing and calcite
veining common in the chloritic chilled dolerite.
7.2.4 Weathering
Weathering overprint on both fresh and altered dolerite is estimated by the presence of
secondary yellow-brown limonite identified during logging. Secondary mineralisation logged
as limonite will most likely also include iron stained clays and a range of iron hydroxide and
manganese oxide minerals, but the main aim is to log the dolerite drill core which has been
detrimentally affected by reaction with oxide forming low temperature waters. Because the
dolerite sill has been essentially conformable with the land surface since crystallisation and
weathering that is an ongoing process today, weathering intensity and penetration in general
decrease with depth and in detail depend on the interplay of structure and topography. The
most intense and deepest penetrating weathering occurs in fault zones in flat lying locations
between hills, whereas the least weathering occurs on topographic highs underlain by
competent dolerite.
Table 7.2.4_1 shows that pervasive weathering of the entire rock mass reaches a maximum
vertical depth of >32 metres in BB10-9 which was drilled within the East Fault zone, in
contrast to BB10-4, a vertical hole located in the middle of the Central Resource block, which
shows no pervasive weathering but has structurally contained limonite down to 116 metres.
The deepest penetration of limonite weathering in open joint structures was recorded in
vertical hole BB10-13, at 154.2 metres, and the shallowest base of structurally controlled
weathering is in vertical hole BB10-7, at 35.5 metres. It is likely that in zones of intense
jointing that the weathering extends to the dolerite-sedimentary contact.
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Table 7.2.4_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Drilling Summary Phase 1
Drill Hole ID Easting Northing Elevation Azimuth Dip
Dolerite- Sediment contact
Hole Length
Fault Zone Start
Fault Zone End
Start of Pervasive Limonite
End of Pervasive Limonite
Piezometer
BB10-01 492243.00 5447514.00 45 -55 129.35 74.85 164.3 0.00 36.80 0.00 0.00
BB10-02 492239.00 5447507.00 Vertical 90 130.35 69.4 134.9 0.00 in fault 0.00 0.00 45.7-51.7
BB10-03 492243.00 5447515.00 222 -54 129.27 59.5 164.2 0.00 77.20 0.00 0.00
BB10-04 492688.00 5447208.00 Vertical 90 215.03 125.5 161.8 na na 0.00 0.00 41.8-47.8
BB10-05 492926.00 5447262.00 Vertical 90 193.78 74.2 83.3 na na 0.00 28.00
BB10-06 492678.00 5447490.00 Vertical 90 191.37 91.9 98.6 na na 0.00 0.00
BB10-07 492566.00 5447669.00 Vertical 90 155.33 47.7 59.2 na na 0.00 0.00
BB10-08 492924.00 5447521.00 50 -55 191.38 110.5 118.2 0.00 50.00 0.00 5.00
BB10-09 492929.00 5447521.00 230 -55 191.71 13.4 63.6 0.00 63.60 0.00 40.00
BB10-10 492347.00 5447220.00 54 -55 144.74 119.4 125.5 0.00 59.40 0.00 3.00
BB10-11 492345.00 5447220.00 234 -54 144.55 130.2 134.4 0.00 92.80 0.00 12.00
BB10-12 492145.00 5447247.00 Vertical 90 158.37 138.8 143.4 na na 0.00 2.70
BB10-13 491973.00 5447472.00 Vertical 90 189.28 173.3 173.9 na na 0.00 1.50
BB10-14 491739.00 5447414.00 Vertical 90 142.75 133.65 134.9 na na 0.00 8.70
BB10-15 491577.00 5447647.00 Vertical 90 129.25 88.1 90.8 39.40 65.90 0.00 4.00
BB10-16 491863.00 5447184.00 Vertical 90 115.15 119.7 122.9 na na 0.00 0.00 22.8-28.8
BB10-17 492327.00 5447011.00 Vertical 90 146.89 87.7 90.2 na na 0.00 0.00
BB10-18 492062.00 5447716.00 230 -55 118.96 82.4 86.2 0.00 33.20 0.00 30.00
BB10-19 492523.00 5446903.00 230 -55 143.09 72.6 74.8 0.00 29.50 0.00 12.50
BB10-20 492526.00 5446902.00 50 -55 143.23 117.6 121.2 0.00 93.50 0.00 0.00
BB10-21 492343.00 5447222.00 50 -65 144.39 113.2 114.6 0.00 87.40 0.00 0.00
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7.2.5 Petrology
Various combinations of thin section petrography, XRD (X-ray diffraction) mineral identification
and whole rock and trace element chemical analyses by XRF (X-ray fluorescence) and
ICPMS (Inductively Coupled Plasma Mass Spectrometry) were carried out on three field
samples during the mapping stage and 10 core samples during the drilling program. Two of
the three field samples were halved and sent to two separate petrologists (Ralph Bottrill, MRT,
Hobart and John Payne, consultant, Vancouver) to check the consistency of results from
different laboratories and to select the appropriate laboratory for the drill core sampling to
follow. Sampling schedules and summary results are shown in Appendix 10 on the
Geological Report Petrology Table and the various petrology reports.
The petrology results have provided a more quantitative overview of the composition of, and
variation within, the fresh dolerite comprising the main part of the resource. In addition, the
nature of structurally hosted dolerite alteration and the basal sill dolerite-sedimentary rock
contact are now better understood and together the results will enable a refinement in visual
logging interpretations during the Phase 2 drilling program. The dolerite and hornfelsed
sandstone samples examined independently by MRT and John Payne produced very similar
results so the logistical advantages of using a local petrologist and laboratory controlled the
choice of MRT as the preferred laboratory for the Phase 1 drill core samples.
The modal composition of fresh dolerite is consistent throughout the surface and core
samples tested, consisting of two clinopyroxenes, plagioclase, rare quartz and mesostasis in
the matrix position composed of quartz, potassium feldspar, plagioclase and iron oxide
opaques. No olivine crystals occur in the 10 thin sections of fresh solid dolerite examined to
date and the proportion of quartz is considered too low to contribute a useful fine silica
component to the aggregate products. The photomicrographs in Appendix 10 confirm the
crystal grain size trend decreasing down hole in BB10-11.
Relative to the main medium grained ophitic dolerite, the basal chilled margin zone shows
slight depletion of Cr and Ni and slight enrichment in the trace elements Ba, Ce, Cu, La, Sr, Y
and Zr, which are often associated with late stage concentration of volatile rich fractionation
product in a cooling magma. The chilled margin dolerite also contains 2-3 times the
concentration of Fe2O3 found in the main body of fresh dolerite but there is no difference in the
total Fe content. This anomaly suggests that Fe is crystallizing in the pyroxene lattice in the
main body of dolerite but is partitioned into magnetite and ilmenite in the chilled margin
dolerite. Increased fine magnetite disseminated through the mesostasis of the chilled margin
dolerite could explain the darker colour and higher magnetic susceptibility of these rocks. The
common light brown clinopyroxenes under plane polarized light in the medium and medium-
coarse dolerites are almost certainly iron bearing augites
XRD mineral identification of the vein style and breccia matrix style alteration confirms the
visual logging results of a suite of mainly cream and green earthy and minor white crystalline
minerals consisting of; mixed layer clays, zeolites and calcite, with traces of quartz and
feldspar. The mixed layer clay peaks, as a group on XRD, have been called smectites to
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distinguish them from kaolinites and they will include mainly montmorillonite and probably
some chlorite. Zeolite species stilbite and laurmontite are identified and at least one other
unidentified zeolite is suspected in lower concentrations. Calcite is the only carbonate
identified in the alteration and it was identified microscopically. A strong FeO-Fe2O3
partitioning trend exists between fresh unaltered dolerite and weathered or brecciated and
altered dolerite where the alteration minerals are dominantly smectite group clays and
chlorite. The decomposition of augite has released iron which reforms as hydrous Fe2O3 in
limonite and smectite.
Overall the alteration consists of a narrow range of minerals with a chemistry suggesting
metasomatic alteration of the parent dolerite during deformation as the most likely origin. This
interpretation is consistent with the observation that alteration appears restricted to structures
and there is no evidence of pervasive mineral variation due to alteration in the body of the
dolerite resource.
Although minor re-crystallisation of quartz grains in sandstone underlying the dolerite has
been demonstrated both in field exposures and under the microscope, the 21 holes logged to
date conclusively show that contact thermal metamorphism of the sediments is patchy in
distribution and thin where it does occur. Nowhere in the prospect drilled to date does the
hornfels impart significant strength to the rocks underlying the dolerite.
The potential for detrimental contamination of aggregate products from relative enrichment of
certain major and trace elements, particularly in the mineralogy of the abundant altered
material in the Central Fault Zone, is discussed below in Section 13.6 Geochemistry of
Surface and Drill Core.
7.2.6 Rock Quality
Quantitative analytical test results on core samples are discussed in a later section of this
report but it is apparent during geological logging that the interplay between structural
geology, alteration and weathering enable a useful estimation of rock quality to be made. The
end member domains of fresh massive crystalline dolerite on the one hand, and pervasively
weathered, soft limonitic dolerite on the other hand, are clear cut in terms of assigning
portions of the deposit to “ore” and “waste” but between these end members the variable
intensity of structuring, alteration and weathering will determine how the rocks are classified.
Below the base of pervasive oxidation there typically occurs an interval of dolerite core where
limonitic weathering overprints structurally contained vein mineralization, which in turn
typically overlies an interval of fresh, structurally contained vein mineral alteration.
A visual assessment of the rock quality during core logging is possible through the following
procedure (Appendix 11, Tables A and B). One visually estimates the percentage of “good
quality dolerite” contained within the composite interval (Appendix 11, Table A). This is most
easily accomplished by estimating the percentage of clean, non limonite / clay bearing dolerite
in each core box within the composite interval. Examining the wet core photos is the quickest
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and most efficient way of conducting this visual estimate. One then calculates the average
visual percentage of acceptable dolerite for the composite interval.
Laboratory results were then compared with composite visual estimates. If a composite
exceeded the Australian Standards Specification Limit requirements for the Coarse Fraction
Particle Density (>2.5t/m³) and Water Absorption (<2%), Sodium Sulphate Soundness (<9%)
and LA Abrasion Values (<30%), then it was considered “acceptable dolerite” and if it failed
one of these tests then it was considered “unacceptable dolerite”. A total of 15 “unacceptable
dolerite” composites yielded visual estimates that range from 11% to 68%, an arithmetic
average of 37% and standard deviation of 19.8%. A total of 20 “acceptable dolerite”
composites yielded visual estimates that range from 26% to 99%, an arithmetic average of
78% and standard deviation of 19.7%.
If a composite visual estimate of acceptable dolerite is <57%, then the analytical result will not
likely meet the Australian Standard Specification Limit requirements for the Coarse Fraction
Particle Density (>2.5t/m³) and Water Absorption (<2%), Sodium Sulphate Soundness (<9%)
and LA Abrasion Values (<30%).
If a composite visual estimate of good dolerite is >57%, then the analytical result will likely
exceed the Australian Standard Specification Limit requirements for the Coarse Fraction
Particle Density (>2.5t/m³) and Water Absorption (<2%), Sodium Sulphate Soundness (<9%)
and LA Abrasion Values (<30%).
Detail regarding the arithmetic averages and the length weighted averages of acceptable
dolerite composites from Geological Domains and Resources is contained in Table 7.2.6_1
and Appendix 11. It is concluded that the West, Central and East Resources have a length
weighted average of between 75% and 84% acceptable dolerite. The length weighted
average of acceptable dolerite within the Fault Zones ranges from 10% to 28%.
Table7.2.6_1
Delta Materials pty ltd Bell Bay Quarry Project
Summary of Visual Estimate (%) of Acceptable Qualit y Dolerite within Geological Domains
Domain or Geological Resource Arithmetic Average (%)
Length Weight Average (%)
Dolerite & Weathered Dolerite – West, Central & East Resources 78% 81% Dolerite & Weathered Dolerite – West Resource 80% 83% Dolerite & Weathered Dolerite – Central Resource 75% 77% Dolerite & Weathered Dolerite – East Resource *84% *84% Central Fault Zone 28% 27% East Fault Zone 10% 19% Dolerite & Weathered Dolerite – West, Central & East Resources 78% 81% *one sample
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8 DEPOSIT TYPES
The Bell Bay Quarry Project dolerite deposit is a Jurassic age, primary magmatic intrusive sill
of tholeiitic composition. The sill is hosted in a sequence of Triassic fluvial sandstones,
siltstones and mudstones of which only the basal sill contact is preserved. Geochemically the
deposit has affinities with the Continental Flood Basalt class of basaltic magmas and
tectonically its origin results from crustal extension, sagging and rifting of the Gondwana
continent. The current structural setting of the deposit mainly results from post continental
break up graben style faulting and extension, linked to the formation of continental shelves
around the island of Tasmania.
Dolerite is a rock being quarried and crushed to make construction material for the concrete
and road building industries. Commercial dolerite/gabbro quarries have supplied material to
the Sydney market.
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9 MINERALIZATION
The mineralization of economic importance is fresh unaltered crystalline dolerite consisting
mainly of augite-pigeonite clinopyroxene, calcium rich plagioclase and a glassy mesostasis of
mixed feldspars and quartz. In general the rock is medium grained with an ophitic texture but
ranges from coarse grained graphic textured to fine grained and slightly porphyritic. Minor
fracture-contained vein style zeolite, carbonate, chlorite, clay alteration minerals and fracture-
contained limonitic weathering products are included in the resource mineralization.
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10 EXPLORATION
10.1 Introduction
Delta developed an exploration program to define the continuity and physical and chemical
characteristics of the Bell Bay dolerite within the proposed quarry area. The exploration
program consisted of the following elements:
� Detailed mapping of outcrops.
� Materials testing of a composite grab sample from the TasPort quarry.
� Drilling 21 HQ3 and NQ2 sized diamond drill holes totalling 2,460.9 metres. The 10
inclined and 11 vertical diamond drill holes were drilled to the dolerite-sedimentary
contact.
� Detailed geological and geotechnical logging of core.
� Materials testing of composite representative core samples.
� Thin-section petrographic studies.
� Geochemical analysis of selected surface and core samples.
Pre-drilling exploration consisted of a program of outcrop mapping by Delta geologists, Alex
Boronowski, Ken Morrison and Ray Hazeldene, and a ground gravity / magnetics survey by
geophysical contractors, Atlas Geophysics Pty. Ltd. and Southern Mineral Exploration
Geophysics Pty. Ltd. (SMEG). Philip Muir, the principal of SMEG supervised the geophysical
survey.
10.2 Chronological Exploration Overview
Subsequent to Delta receiving EL6/2009, a large surface grab sample was collected from the
quarry owned by Tasmanian Ports Corporation (TasPort). The TasPort quarry is situated
immediately to the west of the West Fault and West Resource. The analytical results from the
composite sample were encouraging and the large hills to the east of the TasPort quarry,
which are now referred to as the West and Central Resources were believed to be composed
of similar dolerite. A brief examination westward of the TasPort quarry showed dolerite
outcropped to the railway line at approximately 25masl and then again outcropped at
tidewater. Therefore, it was assumed that the dolerite in the Central and West Resource
areas would extend to and possibly below sea level.
The first exploration program in October 2009 consisted of geological mapping. The mapping
indicated that dolerite outcropped along the ridges and the flanks of topographic highs.
During the initial period of mapping, the low areas were prospected but only dolerite float was
discovered. Therefore, it was hypothesized that the dolerite sill extended to sea level and
probably beyond. It was not until the discovery of sub-outcropping metamorphosed
sandstone (UTM 492450E, 5447400N) to the north of the proposed resource area that is
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became apparent that the proposed quarry may contain sandstone believed to have similar
strike and dip to Triassic sediments along the Bridport Road (120°/15°SW). Based on these
observations it was decided to conduct a reconnaissance gravity/magnetics survey over the
area of interest to determine whether there was an indication of a large quantity of sediment at
depth. The gravity profiles suggested that the maximum thickness of the dolerite within the
resources is trending approximately east-west. It could not be determined whether a large
volume of sediment occurred above sea level in the area-of-interest.
The magnetics and drainage patterns suggests that the faults trend generally northwest-
southeast (dominant trend) and east-west (secondary trend). Southerly trending drainages
located to the south and east of the Central Resource changes direction abruptly to a west
trending drainage, which suggests faulting has diverted the course of the creeks. The
magnetic response suggests that the Central Fault has a dextral sense of motion with
displacement of approximately 450 metres.
There is no outcrop along the surface trace of the Central Fault, which follows the fire break
road nor is there outcrop along the trace of the East Fault which follows a creek bed. The
inferred East-West Faults 1 and 2 follow drainage trends.
The structural mapping recorded cooling and tectonic joints trending north-south, east-west,
northwest-southeast and northeast-southwest. The orthogonal joint sets and faults dip
steeply (-85°).
The first three drill holes were collared within the Central Fault Zone. Two angled holes
passed through the Central Fault into the adjacent Central and West Resources and the
vertical hole intersected the dolerite-sandstone contact at 70m depth. Two of the holes were
continued down to sea level in order to determine whether only one sill existed and to
determine the rock quality characteristics of the sediments. The fault zone is approximately
80m wide and contains relatively poor quality material, which is presently classified as waste.
The fault zone contains deleterious weathering materials such as limonite and iron oxides
clays and hydrothermal alteration minerals such as smectite, chlorite, zeolites and
carbonates. The vein style hydrothermal alteration minerals are believed to be related to
Tertiary age graben deformation in the Tamar Valley.
Subsequently, the drill moved to the centre of the Central Resource where the thickest section
of good quality dolerite was believed to occur. The dolerite-sedimentary contact was
intersected at 94masl. At this point, the drilling program was altered from a combination of
angled and vertical holes to mainly vertical holes in order to determine whether there was
sufficient tonnage and quality of dolerite to support an economic quarry.
Originally, the proposed quarry was expected to be contained within the Central Resource.
However, additional drilling indicated that the dolerite-sedimentary contact was well above sea
level and the thickness of dolerite averaged approximately 100 metres. Therefore, the
management team decided that the exploration program needed to be expanded westward to
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incorporate the area now known as the West Resource. The Exploration Work Program was
amended to include a program consisting of excavating drill sites, roads/tracks and a drilling
program on the West Resource. Environmental and Archaeological surveys were conducted
as part of the permitting process.
It was important to understand more fully the trend and dip of the Central Fault since it would
form a waste barrier between the two resources. Therefore, a total of 8 angled holes were
collared in the fault zone and drilled into the adjoining resources. The contact between the
fault zone and adjoining dolerite is generally easily recognized in core and the quality of the
rock improves away from the fault into the adjoining resources. The intensity and spacing of
jointing drops off away from the fault, as observed in core photos and in the visual estimate of
acceptable quality dolerite within geological domains and resources. The fault is
approximately 80 metres wide, trends 330° and dips near vertically.
MRT approved the modified Exploration Work Program and drilling commenced on the West
Resource. Several widely spaced vertical holes determined that the tonnage and quality of
the dolerite in the West Resource was suitable for construction material.
The Phase 1 drilling program has demonstrated that the dolerite sill is bowl-like at the basal
contact with apparent dips ranging from 8°to 13° to the southwest. The dolerite is cut by the
northwest-southeast trending faults with a dextral strike slip displacement of approximately
450m and an apparent minor west side up displacement. It is not known whether this minor
displacement is due to the more important dextral motion or whether there is a small vertical
displacement.
The majority of the holes in the West and Central Resources are vertical holes. The vertically
dipping joint directions are north-south, east-west, northwest-southeast, and northeast-
southwest. All joint sets dip vertically. The vertically drilled holes intersected these joint sets.
Locally, the structures are open and contain unfavourable weathering products. It is
recommended that the proposed Phase 2 drilling program comprise mainly angled holes at
grid azimuth 050° and 230° in order to intersect the joint sets most effectively and to obtain a
better cross section of the resources and more representative samples for analytical testing.
10.3 Geological Mapping Method
The fire break road is the main access to the property. Numerous old, narrow tracks/roads
were utilized for access during the mapping program and then excavated for the Phase 1
drilling program.
Vegetation is relatively thin and outcrop exposure along ridges and the flanks of ridges ranges
from 50% to 70%. Few outcrop exposures occur along fault traces and areas of low relief.
The West Knob which contains the TasPort dolerite quarry is believed to be representative of
the quality of material and structural controls exhibited throughout the proposed Bell Bay
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Quarry Project area. The TasPort quarry was mapped in detail to understand the deposit
type.
Delta geologists Alex Boronowski and Ken Morrison mapped the project between October 7
and 22, 2009. Geological and geotechnical features were mapped on outcrops and data were
collected at 214 sites.
Mapping was done on a 1:5,000 scale orthophotograph with 5m elevation contours. The
orthophotograph was produced by Eagle Mapping of Port Coquitlam from colour aerial
photography flown on February 14, 2006 at a photo scale of 1:24,000. Mapping locations
were determined with non-geodetic grade, hand-held Global Positioning Systems (GPS).
GPS accuracy is ±5 metres.
Outlines of outcrops were drawn on the orthophotograph during mapping. Geological and
geotechnical data were recorded directly on tabular data sheets or notebooks using the Knight
Piésold geotechnical manual, “Field Procedures Manual – Geotechnical Data Collection for
Exploration Geologists” (Appendix 12).
10.4 Joint Mapping
Jointing is the dominant rock quality feature observed in the dolerite. Delta measured Rock
Quality Designation (RQD) and joint orientations at all surface geological data points and
performed detailed logging of joint condition, number of joints and RQD measurements on drill
core.
The dolerite is a very competent rock with an average RQD measured from outcrop of
approximately 97%. The tectonic joints demonstrate more persistence than the
discontinuous, curved, cooling joints. The curved cooling joints dip steeply.
Five joint trends have been identified in the project area (Table 10.4_1)
Table10.4_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Summary of Joint Trend Groups
Joint Trend Azimuth Dip
1 Approximately North-South 85° east and minor dips to the west 2 Approximately East-West 85° north and minor dips to the south 3 Approximately Northwest-Southeast 85° Northeast a nd Southwest 4 Approximately Northeast-Southwest 85° Northwest a nd Southeast 5 270° 15° to 45° South
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The two orthogonal joint sets (north-south and east-west) and (northwest-southeast and
northeast-southwest) dip vertically. The joints show an average spacing in outcrop from 2cm
to 60cm. The joints range from being tight to slightly open.
The flat lying joints were mapped in the TasPort Quarry and recognized in the core. These
joints are widely spaced (5-10 m) and dip 15°- 47° south.
The relatively close spacing of the steeply dipping orthogonal joint sets may cause elongation
of the fine and coarse fragments. The optimal blast hole pattern and explosive type will need
to be determined in order to produce the best combination of feed to the primary crusher,
reduce costs associated with secondary breakage and limit production fines. Designing the
commercial crusher specifically for the Bell Bay dolerite should maximise the production of
cubic fragments.
10.5 Geophysics
A reconnaissance gravity-magnetics survey was conducted by Atlas Geophysics and
supervised by Philip Muir of SMEG to determine whether a significant quantity of sediment
occurs beneath the dolerite and above sea level. Figure 10.5_1 shows the geophysical
gravity survey profiles superimposed upon the aeromagnetics. The detailed Gravity Survey
Report by Philip Muir is contained in Appendix 8.
Figure 10.5_1
Delta Materials Pty Ltd Bell Bay Quarry Project
Gravity survey Profiles Superimposed on the Aeromag netics
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The survey consisted of 4 lines orientated at 045° with 500 and 600 metre line separation and
gravity readings taken at nominal interval of 50m along the central two lines and 100m along
most of the outer two lines.
It was difficult to interpret the gravity profiles since the choice of density for the sandstone and
dolerite was assumed to be 2.4t/m3 and 2.9t/m3, respectively. Recently, the apparent particle
density for the coarse fraction sandstone was determined to be 2.5t/m³. This increase in
density for the sediment is believed to have the net effect of increasing the dolerite thickness
on the existing profiles by approximately 30%. This estimate is based on information from the
gravity survey which concluded that with “an increase of 0.1 tonnes/m³ in sandstone bulk
density (ie. a decrease in the density difference between dolerite and sandstone) an
approximate 30% increase in dolerite thickness was required to maintain a reasonable match
between observed and calculated gravity measurements”.
The original profiles suggested that there would be good potential for sediments occurring
above sea level within the area-of-interest, which was proven correct during the Phase 1
drilling program. However, the thickness of dolerite intersected did not normally match the
thickness of dolerite shown on the gravity profiles, which may in part be due to variations in
the density of the sediment.
The survey correctly determined that the apparent dip of the base-of-the dolerite was between
10° and 15° SW.
The magnetic data is very noisy and not considered useful for the purpose of interpreting
dolerite thickness.
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11 DRILLING
11.1 Drilling Program
A program of 21 fully cored diamond drill holes was completed on the quarry project area
during an 11 week campaign from March-May, 2010. Delta contracted Edrill Pty Ltd, from
Somerset, Tasmania to drill the holes, using a track-mounted Sandvic UDR 200 rig
(Figure 11.1_1). The drill rig was supported by a tracked Marooka and 4WD utilities for
transporting drill pipe, fuel, drilling consumables and personnel. The drilling operation worked
in two 10 hour shifts per day and used a wheeled trailer style, generator powered lighting unit
for night shift. All holes were drilled on flat pads excavated into regolith materials, together
with in-ground drilling water sumps, prior to the arrival of the drill rig.
Figure 10.5_1
Delta Materials Bell Bay Quarry Project
Sandvic UDR 200 Diamond Drill Rig and Support Vehic le
The 21 drill holes (BB10-1 to BB10-21) totalled 2460.9 metres of HQ3 (61.1 mm diameter
core) and NQ2 (50.6 mm diameter core). All holes started with HQ3 (triple tube) until solid
and relatively fresh rock was encountered, then HWT casing was run in and the hole was
completed in NQ2. Core samples submitted for analytical testing were halved NQ2 and HQ3
samples.
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The Phase 1 drilling program is summarized in Table 7.2.4_1. Drill core and magnetic
susceptibility logs are in Appendix 4. Eleven holes were drilled vertically and ten holes were
inclined (nine at a dip of -55 and one at -65). All 10 inclined holes were drilled from either the
Central or East Fault Zones into the Central, West and East Resources. Three of the vertical
holes (BB10-2, 10-4 and 10-16) were established as piezometer water bores with 50 mm ID
slotted PVC tubes.
The location of the drill hole collars was determined using a non-geodetic grade GPS. Drill
holes ranged in length from 59.2 m to 173.9 metres. A Reflex EZ shot survey instrument was
used for down-the-hole surveying. No significant deviations were noted.
Geological and geotechnical logging was performed by Alex Boronowski, Ken Morrison and
Ray Hazeldene. Logging was performed at the George Town, Thompson Avenue core shed;
where the core is being stored. Core recovery was generally good. The arithmetic average for
1,321 calculations is 94%.
11.2 Core Logging
Core was logged using the Knight Piésold geotechnical manual, “Field Procedures Manual-
Geotechnical Data. The following features were logged:
� drilled interval
� core recovery
� rock quality designation (RQD)
� geological description
� weathering
� hardness
� rock type
� colour
� texture
� alteration style
� alteration mineralization
� alteration strength
� structure type
� alpha angle
� beta angle
� structure filling
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� comments
� geotechnical data
� structure type
� alpha angle
� beta angle
� aperture
� roughness
� infill material
� weathering
� comment
RQD values for the Dolerite and Weathered Dolerite of the East, Central and West Resources
indicate a rating of 13 out of 20. For all 25 composites from the 19 drill holes testing the
resources the RQD averages 63% with a standard deviation of 32%. The core recovery
averages 98% for the 25 composites measured.
Coffey Inspected drill core for holes BB10-1, BB10-2 and BB10-20 and BB10-21 during the
site visits in March and June of 2010. Coffey found the logging to be of high quality.
11.3 Drill Summary and Interpretation
The following section summarizes and interprets the Phase 1 drilling program. Detailed
analytical results are discussed in section 13.
The drilling results indicate that the slightly bowl shaped dolerite sill dips approximately 10° -
15° to the southwest. The dolerite sill has a maximum apparent thickness of 170 m (Sections
2000E and 1250S).
The Bell Bay Quarry Resources are bounded by the NW–SE trending East, Central and West
Faults, the E-W trending EW1 & 2 Faults and the NE–SW trending EW1 Fault. A total of 8
angled holes and 1 vertical hole have tested the Central Fault Zone and determined that the
fault zone dips vertically and has a slightly sinuous NW–SE trend. The Central Fault Zone
averages approximately 80 m wide. The material within the fault zone consists of weathered,
altered, sheared and brecciated dolerite. Weathering and alteration minerals within the fault
zone consist predominantly of clays, iron oxides and zeolites and lesser amounts of chlorite
and carbonate. The weathering and alteration is closely associated with the vertical joint sets
mapped on surface and observed in the drill core. The joints sets are filled predominantly with
clay, limonite and manganese oxide within the weathered zone and beneath the base of
oxidation, lesser amounts of smectite, zeolite, chlorite, carbonate and quartz. The East Fault
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Zone has been tested by two drill holes and the apparent strike, width and mineralogy is
similar to the Central Fault Zone. The West Fault Zone has not been drilled.
The dolerite sill generally grades from coarse to fine grained towards the sedimentary contact.
The chilled dolerite contact when observed ranges from 0.3 m to 32 m.
A total of 43 composite samples were submitted for various tests to determine the suitability of
the dolerite for use as a construction material in concrete and bitumen. The test results
indicated the material within the fault zone did not normally meet Australian Standards
Specification Limit requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and
Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values
(<30%). However, approximately 27% of the fault zone material consists of relatively good
dolerite, which may be separated from the finer fault gouge material and used as construction
material or other industrial applications.
11.3.1 Central Resource
The Central Resource which is bounded by faults has been tested by 4 vertical holes within
the resource and by 4 angled holes drilled from the Central Fault Zone into the resource and
by 1 angled hole drilled from the East Fault Zone into the resource. Vertical hole BB10-5
located in the southeast corner of the resource yielded results for a weathered dolerite
composite from surface to 27.8 m that did not meet Australian Standards Specification Limit
(ASSL) requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and Water
Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values (<30%).
However, the composite from 27.8 m to the sedimentary contact exceeded the ASSL
requirements for the above tests due to a significant decline in fracture density of the dolerite
below 27.8 m (core photos, Appendix 5). The extent of this pocket of poorer quality material
can only be determined by drilling and possibly by a geophysical resistivity survey. BB10-9
drilled from the East Fault Zone towards the Central Resource may not have intersected the
Central Resource. The material within the drill hole consisted of alternating sediments and
dolerite which is unsuitable for construction material and therefore was not submitted for
testing. BB10-20 drilled from the Central Fault Zone towards the Central Resource,
intersected dolerite in the resource that did not meet ASSL requirements for Water Absorption
(<2%) and Sodium Sulphate Soundness (<9%). The remainder of the angled holes and
vertical holes within the Central Resource produced composite test results that exceeded the
ASSL requirements for the above four important tests. There is the possibility that there will
be a margin of potentially poorer quality material adjacent to the bounding faults of the Central
Resource. This margin or sections of the margin with poorer quality material and surface
pockets of poorer quality material within the Central Resource will be defined during the
Phase 2 drilling and geophysics exploration program.
11.3.2 West Resource
The West Resource, which is bounded by faults, has been tested by 6 vertical holes within the
resource and by 4 angled holes drilled from the Central Fault Zone into the resource. Vertical
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hole BB10-15, located in the northwest corner of the resource, yielded results from a
composite consisting of dolerite with weathered sections of dolerite from surface to 86.4 m
that did not meet the ASSL requirement for the Sodium Sulphate Soundness (<9%) test. The
10.8% Sodium Sulphate Soundness result is believed to be due to deleterious material within
a zone of closely spaced vertical joints. Vertical hole BB10-12, located in the centre of the
resource yielded results from a composite consisting of dolerite with weathered sections of
dolerite from surface to 28.8 m that did not meet the ASSL requirement for the Sodium
Sulphate Soundness (<9%) test. The 15.6% Sodium Sulphate Soundness result is believed
to be due to joints and veins containing chlorite, carbonate, clay, zeolite, limonite, manganese
and minor quartz. BB10-19, drilled from the Central Fault Zone towards the West Resource,
intersected dolerite in the resource that did not meet ASSL requirements for Water Absorption
(<2%). The Water Absorption value of 2.6% is probably due to excessive amounts of
sandstone, clays and alteration products in the fault zone interval from surface to 29.5 metres.
The composite submitted for testing may have had better analytical results for the portion of
the composite in the West Resource, if the composite had been split into two composites,
12.5 – 29.5 m for the fault zone and 29.5 – 72.6 m for the portion in the West Resource. The
remainder of the angled holes and vertical holes within the West Resource yielded composite
test results that exceeded the ASSL requirements for the above tests.
11.3.3 East Resource
The East Resource has been tested by one angled hole from the East Fault Zone. The
composite test results exceeded the Australian Standards Specification Limit requirements for
the Coarse Fraction Particle Density (>2.5 T/m³) and Water Absorption (<2%), Sodium
Sulphate Soundness (<9%) and LA Abrasion Values (<30%).
11.3.4 Drll Hole Summary
BB10-1
The hole is positioned in the Central Fault Zone at a collar elevation of 129 m and drilled -55°
towards 045°. Between 0 and 36.8 m the hole inters ected a fault zone consisting of
completely to moderately weathered and sheared dolerite. Alteration and weathering
minerals consist of clay, zeolite, chlorite and limonite. At 36.8 m the hole passed out of the
fault zone into relatively fresh, jointed dolerite of the Central Resource. The chilled dolerite
contact consisting of fine grained, magnetic, dark dolerite occurs between 74.6 m and 74.85
m (0.25 m). At 74.85 m sandstone and minor amounts of mudstone, siltstone and
conglomerate were intersected to the end of the hole at 164.3 metres.
The hole was drilled to sea level in order to determine whether more than one sill existed and
to determine the quality and characterization of the sediments. Only one dolerite sill was
intersected. The dolerite yielded analytical results exceeding the Australian Standards
Specification Limit (ASSL) requirements for the Coarse Fraction Particle Density (>2.5 T/m³)
and Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values
(<30%).
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BB10-2
The vertical hole is positioned in the Central Fault Zone adjacent to BB10-1. The hole
intersected weathered and sheared dolerite from surface to 69.4 m and then intersected
sandstone and minor mudstone to the bottom of the hole at 134.9 metres. Alteration minerals
include clay, zeolite, chlorite and limonite formed by weathering and hydrothermal processes.
One composite (0-28 m) collected from the fault zone yielded analytical results exceeding
ASSL requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and Water Absorption
(<2%) and LA Abrasion Values (<30%). The other composite (28-69.4 m) yielded a value of
16.5% for the Sodium Sulphate Soundness (<9%) test, which does not meet the ASSL
requirement. The high value is probably due to alteration minerals within the fault zone.
BB10-3
The hole is positioned in the Central Fault Zone adjacent to drill holes BB10-1 & 2 and drilled -
54° towards 222°. Between 0 and 32.6 m the hole in tersected a fault zone consisting of
completely to moderately weathered and sheared dolerite. At 32.6 m the hole passed out of
the fault zone into relatively fresh, jointed dolerite of the West Resource. The chilled dolerite
contact consisting of fine grained, magnetic, dark dolerite occurs between 56 m and 59.9 m
(3.9 m). At 59.5 m sandstone and minor amounts of mudstone were intersected to the end of
the hole at 164.3 metres.
The dolerite intersection within the West Resource (32.6-59.5 m) yielded analytical results
exceeding ASSL requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and Water
Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values (<30%)
(Tables 9&12).
The Central Fault Zone width as defined by the fault contacts in BB10-1 & 3 is approximately
80 m wide.
BB10-4
This vertical hole is positioned in the centre of the Central Resource at a collar elevation of
215 metres. The hole intersected from surface to 125.5 m, good quality dolerite exceeding
the ASSL requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and Water
Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values (<30%)
(Tables 9&13). The chilled dolerite contact consisting of fine grained, magnetic, dark dolerite
occurs approximately between 124.6 m and 125.5 m (0.9 m). From 125.5 m to the bottom of
the hole at 161.8 m occurs siltstone and minor sandstone.
BB10-5
This vertical hole is positioned in the southeast corner of the Central Resource at a collar
elevation of 194 metres. The hole intersected weathered dolerite from surface to 27.8 m and
then good dolerite from 27.8 m to 74.1 m. The weathered dolerite represents a zone of
closely spaced vertical joints with significant amounts of infill weathering clays. Analytical
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results for the weathered dolerite composite did not meet Australian ASSL requirements for
the Coarse Fraction Particle Density (>2.5 T/m³) and Water Absorption (<2%), Sodium
Sulphate Soundness (<9%) and LA Abrasion Values (<30%). The good dolerite from 27.8 m
to 74.1 m exceeded ASSL requirements for the coarse fraction Particle Density (>2.5 T/m³)
and Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values
(<30%). The chilled dolerite contact consisting of fine grained, magnetic, dark dolerite occurs
between 59.4 m and 74.1 m (14.7 m). From 74.1 m to the bottom of the hole at 83.3 m occurs
sandstone.
The good dolerite (27.8-74.1 m) exceeds significantly the ASSL requirements and therefore it
is believed that the vertical hole drilled down an open set of joints that contained clays in the
weathered dolerite portion of the hole (0 - 27.8 m).
BB10-6
This vertical hole is positioned in the east side of the Central Resource at a collar elevation of
191 metres. The hole intersected weathered dolerite from surface to 29.5 m and then good
dolerite from 29.5 m to 91.9 metres. Analytical results for the weathered dolerite and the good
dolerite composites exceed the ASSL requirements for the Coarse Fraction Particle Density
(>2.5 T/m³) and Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA
Abrasion Values (<30%). The chilled dolerite contact consisting of fine grained, magnetic,
dark dolerite occurs between 91.5 m and 91.9 m (0.4 m). From 91.9 m to the bottom of the
hole at 98.1 m occurs sandstone and minor rip up clasts of mudstone.
BB10-7
This vertical hole is positioned along the north edge of the Central Resource at a collar
elevation of 155 metres. The hole intersected weathered dolerite from surface to 20.9 m and
then good dolerite from 20.9 m to 40.7 m. Analytical results for the weathered dolerite and the
good dolerite composites exceed the ASSL requirements for the Coarse Fraction Particle
Density (>2.5 T/m³) and Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA
Abrasion Values (<30%). From 91.9 m to the bottom of the hole at 98.1 m occurs sandstone
and minor rip up clasts of mudstone. The chilled dolerite contact consisting of fine grained,
magnetic, dark dolerite occurs between 46 m and 47.7 m (1.7 m).
BB10-8
This hole is positioned in the East Fault Zone adjacent to drill holes BB10-9 at a collar
elevation of 191 m and drilled -55° towards 050°. Between surface and 50 m the hole
intersected a fault zone consisting of weathered and sheared dolerite. At 50 m the hole
passed out of the fault zone into relatively fresh, jointed dolerite of the East Resource. The
chilled dolerite contact consisting of fine grained, magnetic, dark dolerite occurs between
109.8 m and 110.5 m (0.7 m). At 110.5 m sandstone and minor amounts of siltstone were
intersected to the end of the hole at 118.2 metres.
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The dolerite intersection within the East Resource (50 – 110.5 m) yielded analytical results
exceeding the ASSL requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and
Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values
(<30%).
BB10-9
The hole is positioned in the East Fault Zone adjacent to drill holes BB10-8 at a collar
elevation of 191 m and drilled -55° towards 230°. Between surface and the end of the hole at
63 m the hole intersected sheared and weathered dolerite, sediments and minor dark
aphanitic dolerite dyke or possible chilled contact dolerite, which suggests that several fault
panels were intersected within the fault zone. The hole was believed to have passed out of
the fault zone into the Central Resource; however, cross section 1750S indicates that the end
of the hole is approximately 12 m above the extrapolated dolerite-sedimentary contact and still
in sediments which suggests that the hole was still within the fault zone. No composites were
collected from the drill core because of the poor quality of the weathered and altered dolerite
and sediments within the fault zone and no significant continuous interval of dolerite. The
East Fault zone width as defined by the assumed fault contacts in BB10-8 & 9 is
approximately 80 m wide.
BB10-10
The hole is positioned in the Central Fault Zone at a collar elevation of 114 m, adjacent to drill
holes BB10-11 & 21 and drilled -55° towards 054°. Between 0 and 52.5 m the hole
intersected a fault zone consisting of weathered and sheared dolerite containing clays and
zeolites with horizontal slickensides supporting evidence of dextral strike slip fault movement.
At 52.5 m the hole passed out of the fault zone into relatively fresh, jointed dolerite of the
Central Resource. The chilled dolerite contact consisting of fine grained, magnetic, dark
dolerite occurs between 119.1 m and 119.4 m (0.3 m).
At 119.4 m sandstone and siltstone were intersected to the end of the hole at 125.5 metres.
The dolerite intersection (52.5 – 119.4 m) within the Central Resource yielded analytical
results exceeding the Coarse Fraction Particle Density (>2.5 T/m³) and Water Absorption
(<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values (<30%).
BB10-11
The hole is positioned in the Central Fault Zone adjacent to drill holes BB10-10 & 21 and
drilled -55° towards 234°. Between 0 and 93 m the hole intersected a fault zone consisting of
weathered, sheared and brecciated, coarse grained dolerite containing clays and zeolites and
minor chlorite-carbonate alteration associated with the brecciated dolerite. At 93 m the hole
passed out of the fault zone into relatively fresh, fine to medium grained, jointed dolerite of the
West Resource. The chilled dolerite contact consisting of fine grained, magnetic, dark dolerite
occurs between 109 m and 130.2 m (21.2 m). At 130.2 m sandstone and mudstone were
intersected to the end of the hole at 134.4 metres.
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The dolerite intersection (93 – 130.2 m) within the West Resource yielded analytical results
exceeding the ASSL requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and
Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values
(<30%).
The Central Fault Zone width as defined by the fault contacts in BB10-10, 11 & 21 is
approximately 90 m wide. The Central Fault is dipping >85° to the east and west as measured
on section and from drill core alpha angles, respectively.
BB10-12
The vertical hole is positioned in the centre of the West Resource at a collar elevation of 158
metres. The hole intersected weathered dolerite from surface to 28.8 m and then good
dolerite from 28.8 m to 138.8 m. The chilled dolerite contact consisting of fine grained,
magnetic, dark dolerite, occurs between 107 m and 138.8 m (31.8 m). From 138.8 m to the
bottom of the hole at 143.4 m occurs sandstone and mudstone. The sandstone contact is
oxidized suggesting the sandstone is a permeable water course.
Analytical results for the weathered dolerite composite (0 – 28.8 m) exceed the ASSL
requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and Water Absorption
(<2%) and LA Abrasion Values (<30%), but failed the limit requirement for the Sodium
Sulphate Soundness (<9%) by yielding a result of 15.6%. The poor Sodium Sulphate
Soundness result is believed to be due to joints and veins containing chlorite, carbonate, clay,
zeolite, limonite, manganese and minor quartz.
The dolerite composite (28.8 – 138.8 m) exceeded the ASSL requirements for all of the above
mentioned tests.
BB10-13
The vertical hole is positioned in the north-centre portion of the West Resource at a collar
elevation of 189 metres. The hole intersected good quality, solid, medium grained dolerite
from surface to 173.3 metres. Analytical results for the two dolerite composites exceed the
ASSL requirements for the Coarse and Fine Fractions Particle Density (>2.5 T/m³) and Water
Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values (<30). From
173.3 m to the bottom of the hole at 173.9 m occurs sandstone.
BB10-14
This vertical hole is positioned to the west of BB10-13 close to the western limits of the West
Resource at a collar elevation of 143 metres. The hole intersected good quality, solid,
medium grained dolerite from surface to 133.65 metres. Minor clay and chlorite alteration is
associated with the vertical joints. Analytical results for the dolerite composite exceed the
ASSL requirements for the Coarse and Fine Fractions Particle Density (>2.5 T/m³) and Water
Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values (<30). From
133.65 m to the bottom of the hole at 134.9 m occurs sandstone.
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BB10-15
The vertical hole is positioned approximately 20 m outside the northwest corner of the West
Resource at a collar elevation of 129 metres. The hole intersected medium grained dolerite
and minor dolerite breccias from surface to 86.4 metres. Clay, zeolite and chlorite alteration is
associated with the vertical joints and brecciated dolerite. The chilled dolerite contact
consisting of fine grained, dark dolerite occurs between 86.4 m and 88.1 m (1.7 m). From
88.1 m to the bottom of the hole at 90.8 m occurs sandstone.
Analytical results for the dolerite composite exceeded the ASSL requirements for the Coarse
Fraction Particle Density (>2.5 T/m³) and Water Absorption (<2%), and LA Abrasion Values
(<30), but failed for Sodium Sulphate Soundness (<9%) by yielding a result of 10.8%, which is
probably a result of the hydrothermal alteration mineral assemblage.
BB10-16
This vertical hole is positioned in the west-central portion of the West Resource at a collar
elevation of 115 metres. The hole intersected coarse grained dolerite from surface to 34 m
and then medium grained dolerite to 119.87 metres. Minor amounts of clay and chlorite
alteration is associated with the vertical joints and minor brecciated dolerite. The chilled
dolerite contact consisting of fine grained, dark dolerite occurs between 117.3 m and 119.87
metres (2.57 m). From 119.87 m to the bottom of the hole at 122.9 m occurs mudstone and
sandstone.
Analytical results for the dolerite composite (0 – 119.87 m) exceeded the ASSL requirements
for the Coarse and Fine Fractions Particle Density (>2.5 T/m³) and Water Absorption (<2%),
Sodium Sulphate Soundness (<9%), and LA Abrasion Values (<30).
BB10-17
This vertical hole is positioned in the southeast corner of the West Resource at a collar
elevation of 147 metres. The hole intersected coarse grained dolerite from surface to 21.2 m
and then medium grained dolerite to the chilled contact adjacent the dolerite-sedimentary
contact at 87.7 metres. Minor amounts of clay and chlorite, hematite, zeolite alteration is
associated with the vertical joints. The chilled dolerite contact consisting of fine grained, dark
dolerite occurs between 85.4 m and 87.7 m (2.3 m). A 1 cm band of clay occurs immediately
below the chilled dolerite contact and the underlying sandstone demonstrating that the
dolerite-sedimentary contact is an aquifer horizon. From 87.71 m to the bottom of the hole at
90.2 m occurs sandstone.
Analytical results for the dolerite composite (0 – 87.7 m) exceeded the ASSL requirements for
the Coarse and Fine Fraction Particle Density (>2.5 T/m³) and Water Absorption (<2%),
Sodium Sulphate Soundness (<9%), and LA Abrasion Values (<30).
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BB10-18
The hole is positioned in the Central Fault Zone along the northern boundaries of the Central
and West Resources. The hole is collared at 119 m and drilled -55° towards 230°. Between 0
and 33.2 m the hole intersected the fault zone consisting of weathered and sheared coarse
grained dolerite containing clays, zeolites and minor chlorite alteration associated with vertical
joints. At 33.2 m the hole passed out of the fault zone into medium grained, jointed dolerite
which becomes fresher and less jointed with depth into the West Resource. The chilled
dolerite contact consisting of fine grained, magnetic, dark dolerite occurs between 81.1 m and
82.4 metres (1.3 m). At 82.4 m sandstone and interbedded shales were intersected to the
end of the hole at 86.2 metres.
The dolerite intersection (33.2 -82.4 m) within the West Resource yielded analytical results
exceeding the ASSL requirements for the Coarse and Fine Fraction Particle Density (>2.5
T/m³) and Water Absorption (<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion
Values (<30%).
BB10-19
The hole is positioned in the Central Fault Zone adjacent to BB10-20 and along the southern
boundaries of the Central and West Resources. The hole is collared at 143 m and drilled -55°
towards 230°. Between 0 and 29.5m the hole interse cted the fault zone consisting of
weathered and sheared medium grained dolerite containing clays, zeolites and minor chlorite
alteration associated with vertical joints. At 29.5 m the hole passed out of the fault zone into
medium grained, jointed dolerite of the West Resource. This interval contained a 0.3 m wide
and a 0.2 m wide interbed of sandstone. At 72.6 m the hole intersected sandstone to the end
of the hole at 74.8 metres.
This is the only drill hole where thin beds of sediment were encountered within the dolerite.
The dolerite composite interval from 12.5 m to 72.6 m yielded analytical results exceeding the
ASSL requirements for the Coarse Fraction Particle Density (>2.5 T/m³), Sodium Sulphate
Soundness (<9%) and LA Abrasion Values (<30%) but failed for the Water Absorption (<2%)
with a test result of 2.6%. The Water Absorption value of 2.6% is probably due to excessive
amounts of sandstone, clays and other alteration products in the fault zone interval from
surface to 29.5 metres. The composite submitted for testing may have had better analytical
results for the portion of the composite in the West Resource, if the composite had been split
into two composites, 12.5 – 29.5 m for the fault zone and 29.5 – 72.6 m for the portion of the
composite in the West Resource.
BB10-20
The hole is positioned in the Central Fault Zone adjacent to BB10-19 and along the southern
boundary of the Central and West Resources. The hole is collared at 143 m and drilled -55°
towards 050°. Between surface and 93.5m the hole i ntersected the fault zone consisting of
weathered, sheared and brecciated, coarse to medium grained dolerite containing zeolites,
carbonates and chlorite alteration associated with vertical joints. At 93.5 m the hole passed
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out of the fault zone into medium to fine grained, jointed dolerite of the Central Resource. The
chilled dolerite contact consisting of fine grained, magnetic, dark dolerite is apparent at 104.7
m and continues to 117.6 metres (12.9 m). The dolerite from surface to the sedimentary
contact grades from coarse to fine grained. At 117.6 m the hole intersected sandstone with
sand beds fining upward. The hole was stopped at 121.2 metres.
The dolerite composite (93.5 – 117.6 m) from the Central Resource yielded analytical results
exceeding the ASSL requirements for the Coarse Fraction Particle Density (>2.5 T/m³), LA
Abrasion Values (<30%) but did not meet requirements for the Water Absorption (<2%) and
Sodium Sulphate Soundness (<9%) where results yielded 2.8% and 12.8%, respectively. The
high Water Absorption value of 2.8% and Sodium Sulphate Soundness value of 12.8% is
probably due to excessive amounts of clays and other alteration products within the joints
adjacent to the Central Fault. Jointing frequency decreases eastward away from the fault
zone contact.
BB10-21
The hole is positioned in the Central Fault Zone at a collar elevation of 144 m, adjacent to drill
holes BB10-10 & 11 and drilled -65° towards 050°. The purpose of this hole was to tag the
Central Fault contact approximately 30 m below the fault contact intersection in BB10-10.
The two relatively sharp fault contacts indicate a dip of 85° to the east and the contact alpha
angle measured in BB10-21 indicated 85° to the west . It is not unusual for vertical dipping
faults to meander slightly along strike and dip directions. An eastward dipping NW-SE Central
Fault Zone is compatible with the NW-SE and N-S joint sets which dip steeply to the east.
Another test was conducted to compare composites obtained from continuous sampling
versus individual representative samples combined to create a composite sample. This is
analogous to a continuous channel sample versus a non-continuous chip channel sample.
Refer to section 14.2 Drill core sampling for more detail regarding composite core sampling
procedure.
The entire core in BB10-21 was cut in half in order to obtain a continuous composite sample.
The two fault zone composites and the dolerite composite from BB10-21 were compared to
the fault zone composite and dolerite composite from BB10-10 since the holes are relatively
close together and therefore should be the best comparison available. There does not appear
to be any significant difference in results between sampling a continuous composite and
combining individual representative samples to produce a composite.
BB10-21 between surface and 87.5 m intersected the Central Fault zone which consists of
weathered, sheared and brecciated coarse to fine grained dolerite containing predominantly
clays and zeolites and lesser amounts of chlorite and carbonate hydrothermal alteration
minerals associated with vertical joint sets. The horizontal slickensides on the zeolite are
supporting evidence for the strike slip fault movement. At 87.5 m the hole passed out of the
Central Fault zone into relatively fresh, jointed, medium to fine grained dolerite of the Central
Resource. The dolerite grades from coarse at surface to fine at the sedimentary contact. The
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chilled dolerite contact consisting of fine grained, magnetic, dark dolerite occurs between
112.5 m and 113.2 metres (0.7 m). At 113.2 m mudstone and sandstone were intersected to
the end of the hole at 114.6 metres.
The two continuous composites from BB10-21 and the composite from BB10-10, collected
from material within the Central Fault Zone, yielded results that did not meet for Water
Absorption (<2%) and Sodium Sulphate Soundness (<9%). BB10-21 yielded results of 6.2%
and 6.4% for Water Absorption and 17.9% and 23.4% for Sodium Sulphate Soundness.
BB10-10 yielded results of 4.0% for Water Absorption and 26.5% for Sodium Sulphate
Soundness. The results are similar for both sampling procedures.
The two continuous composites from BB10-21 and the composite from BB10-10, collected
from the dolerite within the Central Resource, yielded analytical results exceeding ASSL
requirements for the Coarse Fraction Particle Density (>2.5 T/m³) and Water Absorption
(<2%), Sodium Sulphate Soundness (<9%) and LA Abrasion Values (<30%).
BB10-21yielded an Apparent Particle Density of 2.84 T/m³, Water Absorption of 0.5%, Sodium
Sulphate Soundness of 3.7% and LA Abrasion Value of 15%. BB10-10 yielded an Apparent
Particle Density of 2.88 T/m³, Water Absorption of 1.6%, Sodium Sulphate Soundness of
4.6% and LA Abrasion Value of 13%. The Water Absorption and Sodium Sulphate
Soundness values are slightly higher in BB10-10 which can be attributed to more weathering
products since the intersection is closer to surface. Nevertheless, both composites exceed
ASSL requirements.
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12 SAMPLING METHOD AND APPROACH
12.1 Quarry and Outcrop Sampling
Delta collected a >100 kg composite grab sample (Sample A) from the Tasmanian Ports
Corporation Pty Ltd (TasPort) quarry, which was the source of armour rock for their Bell Bay
port site. This is the only location on the property where relatively fresh dolerite could be
obtained for a suite of tests to determine the suitability of the material for the construction
industries.
Delta submitted the samples to Testrite Construction Materials Testing of Concord West,
NSW, which was subsequently purchased by Coffey Information of Warabrook, NWS.
Coffey/Testrite performed tests on Sample A as detailed in Table 12.1_1.
Table 12.1_1
Delta Materials Bell Bay Quarry Project
Tests Conducted on TasPort Quaryy Grab Samle (Sampl e A)
Australian Standards Description Specification Lim its AS1141.11 Washed Grading
-20mm + 4.75 mm -4.75mm
AS1141.12 obtained from AS1141.11 Materials finer than 75µm (%)
<4%
AS1141.22 Wet/Dry Strength Wet Strength ≥100kN Dry Strength >150kN Wet/Dry Variation ≤25% AS1141.14 Particle Shape 2:1 and 3:1 ≤10% AS1141.23 LA Abrasion – K Grading ≤30% AS1141.24 Sodium Sulphate
Soundness ≤6%
AS1141.6.1 Coarse Aggregate Particle Density & Water Absorption
<3.2T/m3 & ≥2.1T/m3 ≤2%
AS1141.5 Fine Aggregate Particle Density & Water Absorption
<3.2T/m3 & ≥2.1T/m3 ≤2.5%
AS1141.26 Secondary mineral content ASTMC295 Petrographic Examination RTA T363 Alkali Reactivity <0.15 for fine
aggregate AS1141.41,41 PAFV 14mm ≥48 AS1289.3.1.1 Plasticity Index –liquid limit ≤20 AS1289.3.2.1 Plasticity Index –plastic limit ≤20 AS1289.3.3.1 Plasticity Index Non-plastic (RTA Spec
– manufactured sand AS1289.3.4.1 Linear Shrinkage 0= confirms clay
content negligible AS1141.50 Resistance to Stripping RTA <10% stripped Ok AS1012.2 Concrete Trial Mix Report
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Table 12.1_1
Delta Materials Bell Bay Quarry Project
Tests Conducted on TasPort Quaryy Grab Samle (Sampl e A)
Australian Standards Description Specification Lim its AS1012.9 Compressive strength
Report
AS1012.13 Drying Shrinkage Report AS1012.20 Acid Soluble Chloride
AS1379 <0.8kg/m3 chloride Cl
AS1012.20 Acid Soluble Sulphate
AS1379 <5% by wt of cement binder
NZS3111 Flow Cone and Voids Test Is a shape indicator not a compliance measure
Results are discussed in Section 13.
12.2 Drill Core Sampling
The drill core was delivered by the drillers upon completion of their shift to the core yard at
Delta’s storage facility at 23 Thompson Avenue, George Town (Figure 12.2_1). Upon arrival,
Michael Cook or Bruce Stark of Ron Gregory Prospecting Pty Ltd examined the core for core
presentation errors, marked the core intervals and labelled the core boxes. They then
calculated the core loss and RQD values, which were checked by the Delta geologists while
logging the core. The core was logged for geological and geotechnical defect information.
After logging the core the geologist would mark the sample intervals for each composite and
then the core was photographed dry and wet.
The location of sample intervals for each composite was determined by the following method.
The number of core boxes within the composite was determined and then a calculation was
made to determine the amount of half-core required from each box in order to obtain a
minimum composite weight of approximately 60 kilograms. The following is an example of the
method used to determine how much material was required to obtain a 60 kg of sample. If the
composite sample interval represented 20 NQ2 core boxes (NQ2 core measures 50.6 mm in
diameter), then one metre of core (SG 2.9) weighs approximately 5.9 kg. Therefore, 20
metres of half-core will be required from the 20 boxes to supply the minimum required 60 kg
composite. This equates to a minimum 1.0 metre representative half-core sample from each
of the 20 boxes.
Each representative interval making up the composite was marked and then cut in half with a
rock/core saw (Figure 12.2_2). One half was placed in a labeled sample bag and the other
half retained in the core box for reference. Each sample bag was weighed to ensure that a
minimum of >60 kg had been collected for the composite. More detail regarding the
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procedure for determining and collecting composite samples from drill core can be obtained
from the sample data sheet within the master drill log (Appendix 4).
Figure 12.2_1
Delta Materials Bell Bay Quarry Project
Delta Core Yard at GeorgeTown
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Figure 12.2_2
Delta Materials Bell Bay Quarry Project
Core Saw at Delta Core Yard, GeorgeTown
Tables 12.2_1 and 12.2_2 indicate the composite categories and tests conducted on the 43
composite samples.
The labelled bags containing the composites were double checked before shrink wrapping
and strapping of the pallets for shipment to the Coffey/Testrite Laboratory in Warabrook,
NSW. The drill core boxes are being stored at the locked storage facility at 23 Thompson
Avenue, George Town.
Coffey/Testrite performed the following tests (Table 12.2_2) on 39 of the 43 composite
samples. The remaining 4 composites were analyzed for the Polished Aggregate Friction
Value (PAFV).
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Table 12.2_1
Delta Materials Bell Bay Quarry Project
Summary of Composite Samples
Composite Category No. of
Composites collected
Description
1. Dolerite 19 good sound dolerite from within a resource area
2. Weathered Dolerite 6 usually from an upper portion of the drill core located within a resource area
3. Fault Zone 13 consisting of weathered, fault gouge and dolerite within the fault zone
4. Sediment 1 underlying the dolerite Special Composites
Fine grained representative material from BB10-4 and BB10-12
2 fine grained dolerite for Polished Aggregate Friction Value
Medium grained representative material from BB10-4 and BB10-12
2 medium grained dolerite for Polished Aggregate Friction Value
Comparing continuous sampling of a composite interval (BB10-21) to representative sampling of a composite interval (BB10-10), which is analogous to continuous channel sample versus a non-continuous chip channel
sample. BB10-21- Fault Zone, weathered material (included in
above) Continuous sampling of a composite interval is equivalent to a channel-type sample
BB10-21 - Fault Zone, dolerite (included in above)
Continuous sampling of a composite interval is equivalent to a channel-type sample
BB10-21 - Dolerite
(included in above)
Continuous sampling of a composite interval is equivalent to a channel-type sample
Total composites 43
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Table 12.2_2
Delta Materials Bell Bay Quarry Project
Tests Conducted on Composite Samples
Australian Standards Description Specification Lim its AS1141.11 Washed Grading
-20mm + 4.75 mm -4.75mm
AS1141.12 obtained from AS1141.11 Materials finer than 75µm (%) <4% AS1141.22 Wet/Dry Strength & Variation Wet Strength ≥100kN Dry Strength ≥150kN Wet/Dry Variation ≤25% AS1141.14 Particle Shape 2:1 ≤35% AS1141.23 LA Abrasion – K Grading ≤30% AS1141.24 Sodium Sulphate Soundness ≤6% for concrete exposure
class C ≤9% for concrete exposure class B1 & B2
AS1141.6.1 Coarse Aggregate Particle Density & Water Absorption
<3.2T/m3 & ≥2.1T/m3 ≤2%
AS1141.5 Fine Aggregate Particle Density & Water Absorption
<3.2T/m3 & ≥2.1T/m3 ≤2.5%
AS1012.20 Acid Soluble Chloride
AS1379 <0.8kg/m³ chloride Cl or <0.033%
AS1012.20 Acid Soluble Sulphate
AS1379 <5% by wt of cement binder in concrete
AS1141.42 Polished Aggregate Friction Value <44
The results for the above tests are discussed in Section 13.
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13 SAMPLE PREPARATION, ANALYSES AND SECURITY
13.1 Introduction
Sample preparation protocols follow methods specified for the individual Australian Standards
tests as shown in Table 12.2_2. From these results three tests were considered most critical
for determining suitability of the dolerite for construction material. The three selected tests,
Particle Density and Water Absorption for Coarse Aggregate (AS1141.6.1), Sodium Sulphate
Soundness test (AS1141.24), and the Los Angeles Abrasion Resistance test (AS1141.23)
were selected as the critical economic parameters for defining the resource.
13.2 Particle Density and Water Absorption for the Coarse Aggregate Test Protocol
AS1141.6.1 test determines the absorption of water on coarse aggregate and the bulk specific
gravity. Bulk specific gravity is determined dry and “saturated-surface dry” (is an apparent
bulk specific gravity). Bulk Specific Gravity is the ratio of the mass of a unit volume of
aggregate to the mass of the same volume of water at a stated temperature. The saturated-
surface dry bulk specific gravity and absorption are determined after soaking the aggregate in
water for 24 hours. Absorption refers to the increase in weight of aggregate due to water in
the pores of the material, but not including water adhering to the outside surface of the
particles, and is expressed as a percentage of the dry weight of the aggregate sample. The
aggregate is considered dry when it has been maintained at a temperature of 110 ± 5°C for a
time sufficient to remove all uncombined water. A sample of the crushed aggregate is first
sieved to remove all material less than 4.75 mm. A 5 kg sample is required for 38 mm (1½ in)
aggregate. The sample is immersed in water at room temperature for 24 hours. The sample
is then removed from the water and rolled in an absorbent cloth to remove all surface water.
The dried sample is then weighted in air and then weighed in water. The sample is then dried
at 110 ± 5°C and re-weighed. Results are reported to the nearest 0.01% moisture.
13.3 Sodium Sulphate Soundness Test Protocol
Sodium Sulphate soundness tests on Bell Bay dolerite samples were performed on coarse
aggregate specimens. These are crushed rock from which sizes smaller than 4.75 mm have
been removed. Remaining coarse particles are split into varying mesh sizes.
These materials are subjected to saturation and drying in a supersaturated solution of sodium
sulphate for five cycles. The samples are then washed with a barium chloride solution and
dried to a consistent weight at 110°C. The dried s ample is sieved again and the loss
measured as the change in total weight of all sieve sizes combined relative to the original
weight.
13.4 Los Angeles Abrasion Test Protocol
The Los Angeles Abrasion test determines the resistance of crushed rock to production of
fines from abrasion and impact with steel balls. Sample preparation consists of crushing the
rock and splitting the sample to produce varying sieve sizes.
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Samples meeting these specifications are placed in a cylindrical mill with twelve 46.8 mm
steel spheres and the mill turned 500 revolutions. The weight of minus 1.7 mm fines
produced in this process is then measured and reported as a percentage of the original mass.
13.5 Point Load Measurements
Delta measured the Point Load Strength Index of surface rock and diamond drill core samples
to determine the relative strengths of dolerite within the proposed quarry. Point Load Strength
Indices were calculated according to ASTM Designation D5731-95, “Standard Test Method
Determination of the Point Load Strength Index of Rock.” Delta used a Geotechnical Systems
Australia Point Load Test Apparatus, Load Cell: Cadeanco Serial Number 4508, Readout
System Cadeanco Serial Number 6500-0242, Loading System GSA P/L Serial Number 0242,
Range 0 to 50 kN from Coffey, who supplied an operations manual for the Point Load Test
Apparatus and macro spreadsheet for computing the Point Load Strength Index and
associated Strength Designation. The instrument has been calibrated and the next calibration
is recommended before 11th May 2012.
The point load testing procedure consists of placing a sample between two platen contact
points, measuring the distance between the platens and then applying a loading force via a
hydraulic jack to the contact points until the sample breaks. The breaking point (failure load)
is measured on a calibrated dial as, kilo-Newtons (kN). The measured platen separation (D)
and the failure load (P) are entered into the spreadsheet in order to compute the Point Load
Strength Index (Is) in MN/m² and the correlating Strength Designation increments between
Very Low (R1) and Extremely High (R6).
Delta tested drill core samples at regular intervals or when changes in rock type occurred. A
total of 900 core samples were tested from 393 HQ3 and 507 NQ2 core samples in BB10-1 to
BB10-21 having drill core diameters of 61.1 and 50.6 mm, respectively. Axial and diametrical
core tests were conducted on the core samples. The axial core test consists of placing the
ends of the core in contact with the platens. The length/diameter ratio should be between 0.3
and 1.0 for the axial test. The diametrical core test consists of placing the diameter of the
core in contact with the platens. The total length of the core sample should be longer than the
diameter of the core (L>0.5D), where L is half of the length of the core and D is the diameter
of the core. Delta tested rock surface samples from the Tasmanian Port Quarry where the
specimen size ratio of depth/width was between 0.3 and 1.0.
13.6 Geochemical Analysis
Delta submitted to Testrite Laboratory a >100kg composite grab sample from the TasPort
quarry for a suite of analytical tests (Table 13.7_1). Delta submitted five surface rock samples
for various chemical analyses including 38 element fusion Induced Coupled Plasma Atomic
Adsorption – Mass Spectrometer (ICP-MS), whole rock package – X-ray Fluorescence (XRF),
and X-ray Diffraction analysis (XRD). The surface samples submitted for geochemical
analyses were splits of rock samples sent to John G. Payne of Vancouver Petrographic
Laboratory and R.S. Bottrill of Mineral Resources Tasmania Laboratory.
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13.7 Results – Surface Samples
A large >100 kg composite grab sample was collected from the TasPort Quarry prior to
commencing an exploration program to determine whether the dolerite underlying the
Exploration Licence was suitable as construction material for the Sydney market.
Table 13.7_1 demonstrates that the dolerite rock exceeds the Australian Standards
Specification Limit requirements for all of the analytical tests.
The dolerite produced very good results in the LA Abrasion test, with fines at 13%, which is
well below the specification limit of <30% and competitive for materials available in the
Sydney market.
The sodium sulphate soundness test produced 0.10% loss, which is significantly below the
specification limit of ≤6% for concrete exposure classification C or ≤9% for concrete exposure
classification B1 and B2. The rock is very stable in a sulphate rich environment.
Weight percent water absorption is 0.40% for the coarse aggregate fraction and 1.1% for the
fine aggregate fraction. The specification limit for water absorption for the coarse and fine
aggregate fraction is ≤2.0% and ≤2.5%, respectively. These results are indicative of fine
grained dolerite rock.
The Particle Density in SSD for the coarse fraction, which is utilized for concrete mix design,
is 2.96T/m³ which is within the specification limits of normal weight <3.2T/m³ and ≥2.1T/m³.
The Particle Density in SSD for the fine fraction is 2.92T/m³ which is within the specification
limits of normal weight <3.2T/m³ and ≥2.1T/m³. The two results are comparable to the central
coast basalts supplying the Sydney market.
Point load test results for three valid dolerite samples from the quarry and two valid dolerite
outcrop samples from the area-of-interest produced a total of two Extremely High rock
strengths and three Very High rock strengths. Three basalts from outside the property were
tested for comparison and the tests produced two Extremely High and one High rock strength.
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Table 13.7_1
Delta Materials Bell Bay Quarry Project
TasPort Quarry Sample Results (Page 1 of 2)
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Table 13.7_1
Delta Materials Bell Bay Quarry Project
TasPort Quarry Sample Results (Page 2 of 2)
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13.8 Results – Drill Core
Table 12.2_2 lists the material test results for the drill core composite sampling of Dolerite,
Weathered Dolerite, Fault Zone and Sediment. Detail regarding the intervals sampled for
each composite is contained within the drill logs (Appendix 4).
The drill composites were classified into the following four categories:
Dolerite – this material occurs within the resource and is good quality dolerite without any
significant weathering or deleterious minerals.
Weathered Dolerite - this material occurs within the resource and represents the weathered
dolerite in the near surface portions of the drill holes and the more strongly jointed dolerite
adjacent to the fault zones.
Fault Zone – this material is considered waste because it contains deleterious minerals.
However, there are weathered dolerite lozenges and sections of good dolerite within the fault
zone which may be separated by dry sieving and then utilized for crushed material or
specialty stone.
Sediment - this material represents the Triassic age sediments underlying the dolerite. One
composite was collected from BB10-1 and analyzed to determine the rock quality.
In summary, the only test results that did not exceed the Australian Standards Specification
Limit (ASSL) requirements were the length weighted average water absorption of the fines for
combined fresh and weathered dolerite by yielding 2.59% and 2.54% for the Central Resource
and combined East, Central and West Resources respectively. It is believed that the Fine
Fraction Water Absorption values will improve and exceed specification limits during
production due to extracting deleterious materials in the processing of the fine fraction
material.
The length weighted average has been used to estimate the global average. All length
weighted average tests conducted on dolerite from the West and Central Resources
exceeded ASSL requirements. Poorer quality material when present in the West, Central,
and East Resources is associated with Weathered Dolerite and represents the weathered
dolerite in the near surface portions of the drill holes and the more strongly jointed dolerite
adjacent to the fault zones.
Material from the East and Central Fault Zones is considered to be waste.
It is believed that all of the material within the Central and West Resources can be mined and
processed to produce a construction material suitable for the Sydney concrete and road
building industries.
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13.8.1 Dolerite Results from the East, Central, and West Resources
Table 13.8.1_1 shows drill core composite results for fresh dolerite from the areas-of-interest
being developed as economic resources.
The arithmetic average and length weighted average values for the Coarse and Fine fraction
Particle Density results exceed the ASSL requirements for use as concrete and road
construction material.
The arithmetic average value of 2.62% for the Fine Fraction Water Absorption test did not
meet the ASSL of <2.5%; however, the 2.34% length weighted average value, which is
believed to be more representative of the material being tested, did exceed the requirements.
It is believed that the Fine Fraction Water Absorption values will improve and exceed
specification limits during production due to improvements in the processing of the fine
fraction material. The arithmetic and length weighted averages for the Coarse Fraction Water
Absorption exceed the ASSL requirements.
The arithmetic average and length weighted average of 3.26% and 2.67%, respectively, for
the Sodium Sulphate Soundness results exceed the ASSL requirements of ≤6.0% for
concrete exposure classification C and ≤9.0% for concrete exposure classification B1 and B2.
The arithmetic average and length weighted average of 13.42% and 13.21%, respectively, for
the LA Abrasion Losses results exceed the ASSL requirements of <30%.
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Table 13.8.1_1
Delta Materials Bell Bay Quarry Project
Bell Bay Quarry Project - Summary of Fresh Dolerite Results for the West, Central and East Resources
Coffey Mining Pty Ltd
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13.8.2 Dolerite and Weathered Dolerite Results from the East, Central, and West Resources
Table 13.8.2_1 shows drill core composite results of fresh and weathered dolerite from the
areas-of-interest being developed as economic resources.
The arithmetic and length weighted average values for the Coarse and Fine Fraction Particle
Density results exceed the ASSL requirements for use as concrete and road construction
material.
The arithmetic average and length weighted average values of 2.98% and 2.59%,
respectively, for the Fine Fraction Water Absorption test do not meet the Australian AASL of
<2.5%. It is believed that the Fine Fraction Water Absorption values will improve and exceed
specification limits during production due to improvements in the crushing and processing of
the fine fraction material. The arithmetic average and length weighted average for the coarse
fraction exceed the Specification Limit requirement of <2%.
The arithmetic average and length weighted average of 5.48% and 4.12%, respectively, for
the Sodium Sulphate Soundness results exceed the ASSL requirements of ≤6.0% for
concrete exposure classification C and ≤9.0% for concrete exposure classification B1 and B2.
The arithmetic average and length weighted average of 14.96% and 14.19%, respectively, for
the LA Abrasion Losses results exceed the ASSL requirements of <30%.
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Table 13.8.2_1
Delta Materials Bell Bay Quarry Project
Bell Bay Quarry Project - Summary of Fresh and Weat hered Dolerite Results for the West, Central and Ea st Resources.
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13.8.3 Dolerite and Weathered Dolerite Results from the West Resource
Table 13.8.3_1 shows drill core composite results of fresh and weathered dolerite from the
Western area-of-interest being developed as an economic resource.
All of the tests yielded arithmetic and length weighted average values that exceed the ASSL
requirements for use as concrete and road construction material.
To date, the West Resource appears to have better quality material than the Central or East
Resources.
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Table 13.8.3_1
Delta Materials Bell Bay Quarry Project
Bell Bay Quarry Project - Summary of Fresh and Weat hered Dolerite Results for the West Resource.
Coffey Mining Pty Ltd
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13.8.4 Dolerite and Weathered Dolerite Results from the Central Resource
Table 13.8.4_1 shows drill core composite results of fresh and weathered dolerite from the
Central area-of-interest being developed as an economic resource.
The arithmetic average and length weighted average values for the Coarse and Fine Fraction
Particle Density results exceed the ASSL requirements for use as concrete and road
construction material.
The arithmetic and weighted average values of 2.93% and 2.54%, respectively, for the Fine
Fraction Water Absorption results did not meet the ASSL of <2.5%. It is believed that the Fine
Fraction Water Absorption values will improve and exceed specification limits during
production due to improvements in the crushing and processing of the fine fraction material.
The arithmetic and length weighted averages 1.53% and 1.29%, respectively, for the Coarse
Fraction Water Absorption exceeds the ASSL requirements.
The arithmetic average of 6.85% for the Sodium Sulphate Soundness result does not meet
the ASSL requirements of ≤6.0% for concrete exposure classification C. However, the length
weighted average of 5.54% exceeds the ASSL requirements of ≤6.0% for concrete exposure
classification C and ≤9.0% for concrete exposure classification B1 and B2.
The arithmetic and length weighted averages of 14.56% and 13.89%, respectively, for the LA
Abrasion Loss results exceed the ASSL requirements of <30%.
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Table 13.8.4_1
Delta Materials Bell Bay Quarry Project
Bell Bay Quarry Project - Summary of Fresh and Weat hered Dolerite Results for the Central Resource.
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13.8.5 Geotechnical Results
A Geotechnical Review by Don Miller of Coffey Mining and Delta’s point load testing results
are contained in Appendix 7.
Point load tests on 900 core samples produced the results shown in Table 13.8.5_1. Results
show that the Bell Bay dolerite dominantly has a Very High to Extremely High Strength Index.
Values from drill core are consistent with surface samples.
Table 13.8.5_1
Delta Materials Bell Bay Quarry Project
Point Load Test Results holes BB10-1 to BB10-21
Description Strength Classification Number of Sampl es Percentage of Samples
HQ3 core R6-Extremely High 188 53.3%
HQ3 core R5-Very High 120 34.0%
HQ3 core R4-High 33 9.4%
HQ3 core R3-Medium 12 3.3%
HQ3 core R2-Low 0 0
HQ3 core R1-Very Low 0 0
NQ2 core R6-Extremely High 196 41.6%
NQ2 core R5-Very High 229 48.7%
NQ2 core R4-High 35 7.4%
NQ2 core R3-Medium 11 2.3%
NQ2 core R2-Low 0 0
NQ2 core R1-Very Low 0 0
57 samples 57 NA
19 invalid samples 19 NA (R3=1, R4=3, R5=13, R6=20)
The Rock Quality Designation, Core Recovery and Point Load testing indicated that the
Dolerite and Weathered Dolerite Results for the West, Central and East Resources were as
follows:
� Core Recovery averaged 98%, indicating competent rock within the resources.
� RQD averages 63%, which yielded a rating of 13. Together with the other criteria (Intact
Rock Strength, Joint Spacing, Joint Condition and Groundwater) in the Rock Mass Rating
Classification System produced a rating of between 60 and 80 which is described as
Good on a five division scale ranging from Very Poor to Very Good.
� Point Load testing results indicate that 97% of the core tested has a strength
classification of R4 High to R6 Extremely High.
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The average RQD and joint frequency (joints per metre) measured from drill core for the
West, Central and East Resources are listed in Table 13.8.5_2. The numbers of joints per
metre are underestimated.
Table 13.8.5_2
Delta Materials Bell Bay Quarry Project
RQD and Joint Frequency – Diamond Drill Core
Drill Hole Average RQD Joints per metre BB10-1 58 1.7 BB10-3 23 0.7 BB10-4 56 1.0 BB10-5 48 0.5 BB10-6 68 0.5 BB10-7 58 0.5 BB10-8 60 0.4 BB10-10 53 0.5 BB10-11 93 0.8 BB10-12 63 0.6 BB10-13 81 0.5 BB10-14 62 0.5 BB10-15 59 0.5 BB10-16 80 0.5 BB10-17 68 0.5 BB10-18 82 0.5 BB10-19 51 0.7 BB10-20 59 0.7 BB10-21 68 0.5 BB10-1 58 1.7 BB10-3 23 0.7
13.9 Results - Geochemistry of Surface Samples and Drill Core Samples
Geochemical results from surface samples are shown in Table 13.9_1. Geochemical
analyses of surface samples show no elevated levels of elements that may be deleterious to
aggregate.
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Table 13.9_1
Delta Materials Bell Bay Quarry Project
Geochemical Results – Surface Samples
Wt.% BBR-001 BBR-002
Elements ppm
Det. limit
492480E 5447050N
BBR-001 BBR-002
SiO2 52.82 51.81 52.70 Ag <1 TiO2 0.5 0.38 0.47 As 3 3 bdl Al2O3 14.18 15.47 15.42 Ba 5 197 130 180 Fe2O3 8.94 1.23 0.87 Bi 1 1 bdl FeO 6.60 6.80 Ce 5 20 12 18 MnO 0.18 0.16 0.15 Co 2 47.9 40 42 MgO 8.81 8.58 8.07 Cr 1 220 195 190 CaO 11.23 12.20 11.68 Cs 3 0.65 3 bdl Na2O 1.41 1.46 1.52 Cu 2 64 56 58 K2O 0.62 0.47 0.62 Dy 3.18 P2O5 0.072 0.05 0.06 Er 2.11 SO3 0.04 0.04 Eu 0.72 Cr2O3 0.03 Ga 1 14 15 14 SrO 0.02 Gd 2.75 BaO 0.01 Hf 2 CO2 0.10 0.20 Ho 0.67 H2O+ 1.06 1.26 La 6 9.9 bdl 7 TOTAL 99.78 99.61 99.85 Lu 0.3 L.O.I. 0.96 0.43 0.70 Mo 1 <2 bdl bdl S 0.01 0.01 Nb 1 4.6 5 5 Cl 0.001 0.001 Nd 7 10.6 bdl 10 Ni 2 114 100 100 Pb 2 6 5 6 Pr 2.67 Rb 1 23.7 21 26 Sb 2 bdl bdl Sc 2 40 39 Sm 2.48 Sn 2 1 bdl bdl Sr 1 133 120 135 Ta 0.3 Tb 0.5 Th 2 2.36 2 3 Tl <0.5 Tm 0.3 U 1 0.64 bdl bdl V 2 263 210 220 W 2 2 1 2 Y 1 20.2 14 19 Yb 1.92 Zn 1 71 58 63 Zr 2 71 57 73
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Tabl 13.9_2 shows that samples from the intensely weathered and brecciated parts of the
deposit, with clay mineral and zeolite alteration (P004, P009), are heavily depleted in calcium
and sodium and elevated in chloride by an order of magnitude relative to fresh unaltered and
undeformed dolerite. This is most likely due to the breakdown of plagioclase into mixed layer
clays with their high water and chloride fixing capacity and supports the visual logging
classification of these rocks as waste material.
In contrast the fracture fill zeolite-calcite vein style of alteration hosted in fresh solid dolerite
(P008) does not deviate significantly from the whole rock composition of totally unaltered
dolerite, supporting the view that moderate amounts fresh veining are acceptable in the
resource.
If the elevated chloride in samples P004 and P009 is representative of weathered and
structurally deformed dolerite across the deposit it is likely that a conductivity contrast with
fresh solid dolerite exists, and that a resistivity survey could potentially map the extent of the
weathered dolerite.
The trace element chemistry shows no elevated concentrations likely to be deleterious to
aggregate products.
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Table 13.9_2
Delta Materials Bell Bay Quarry Project
Geochemical Results – Drill Core Samples
Wt % P001 P002 P003 P004 P005 P006 P007 P008 P009 P010
SiO2 52.94 53.31 53.31 53.20 53.12 53.78 54.18 51.73 57.06 54.22 TiO2 0.45 0.51 0.50 0.48 0.51 0.55 0.61 0.49 0.36 0.61 Al2O3 14.04 14.87 15.13 12.15 14.07 14.78 14.62 13.61 15.56 14.69 Fe2O3 0.58 0.92 1.00 6.33 0.78 0.80 1.92 3.95 7.92 1.99 FeO 7.20 7.30 7.00 1.80 8.10 7.70 7.20 5.40 0.30 7.00 MnO 0.18 0.16 0.16 0.27 0.18 0.16 0.17 0.15 0.03 0.18 MgO 9.92 8.16 8.29 10.97 8.21 7.83 7.02 8.98 5.70 6.93 CaO 11.03 10.98 11.24 4.82 11.32 10.89 10.35 9.81 1.37 10.22 Na2O 1.41 1.68 1.60 0.43 1.67 1.70 1.96 1.25 0.47 1.71 K2O 0.62 0.68 0.66 0.65 0.68 0.74 0.88 0.56 0.55 0.80 P2O5 0.06 0.07 0.07 0.07 0.07 0.08 0.09 0.06 0.01 0.09 Cl (%) 0.003 0.003 0.002 0.016 0.002 0.002 0.002 0.003 0.040 0.006 CO2 0.20 0.10 0.10 1.10 0.10 0.10 0.20 <0.1 0.10 0.10 S <0.01 <0.01 <0.01 <0.01 <0.01 0.01 <0.01 <0.01 <0.01 <0.01 SO3 <0.02 <0.02 <0.02 <0.02 <0.02 0.02 <0.02 <0.02 <0.02 <0.02 H2O+ 0.95 0.88 0.95 7.68 1.27 1.06 1.00 3.99 10.32 1.40 SUM 99.58 99.62 100.01 99.95 100.08 100.19 100.20 99.98 99.75 99.94 L.O.I. 0.35 0.17 0.27 8.58 0.47 0.33 0.40 3.39 10.39 0.72 ppm As <3 <3 3 <3 <3 <3 <3 <3 <3 <3 Ba 155 175 170 125 175 210 240 150 86 220 Bi <1 1 1 1 1 1 1 2 <1 2 Ce 13 14 21 10 15 22 23 18 6 23 Co 44 42 42 59 42 42 43 46 26 43 Cr 350 240 250 320 48 190 135 370 305 120 Cs <3 3 4 <3 5 <3 7 8 4 <3 Cu 57 69 65 55 64 77 82 67 63 82 Ga 13 15 14 11 15 15 16 13 20 16 La <6 7 <6 <6 <6 <6 14 12 <6 8 Mo <1 <1 <1 <1 <1 <1 <1 <1 <1 <1 Nb 3 6 4 6 4 6 5 5 5 7 Nd 11 <7 <7 9 <7 8 15 9 <7 12 Ni 130 100 105 130 91 94 83 135 91 78 Pb 3 5 6 4 5 4 6 4 2 5 Rb 25 29 28 24 27 30 37 28 18 31 Sb <2 <2 <2 <2 <2 <2 2 <2 3 <2 Sc 42 42 40 45 45 42 43 45 44 43 Sn <2 <2 <2 2 <2 <2 2 <2 3 <2 Sr 95 110 110 78 115 125 180 130 31 145 Th <2 <2 2 <2 <2 <2 2 <2 <2 <2 U <1 2 1 <1 <1 <1 2 1 <1 2 V 230 240 220 150 260 230 250 210 91 250 W <2 <2 <2 2 <2 3 2 <2 <2 <2 Y 15 17 16 13 18 20 21 18 8 21 Zn 63 72 66 69 69 70 75 73 61 74 Zr 70 79 77 75 75 87 95 75 54 97
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14 DATA VERIFICATION
The mapping, drilling logs, point load test results and magnetic susceptibility results were
checked by Alex Boronowski, who was on the project during most of the described exploration
programs. The work was done professionally and the results are believed to be accurate and
concise.
Coffey conducted independent site visits, inspected the core and reviewed the drill logs,
analytical and point load testing results for accuracy and completeness. Coffey considers the
mapping, logging and data collection performed by Delta staff to be of a high standard.
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15 ADJACENT PROPERTIES
As stated in section 6, Tasmanian Hardrock Pty Ltd is presently maintaining their tenure
located between the northern and southern parts of EL 6/2009, by a year-to-year Retention
Licence. No work has been conducted on the Retention Licence.
Tasmanian Ports Corporation Pty Ltd acquired a 100 m x 100 m, Mining Tenement 1117P/M
to cover the West Knob dolerite. West Knob is located approximately 500 m east of Lauriston
Reservoir and contiguous with Delta’s EL 6/2009. The quarry was a source of armour rock for
the Bell Bay port development. Remediation of the quarry is expected to commence in the
near future.
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16 MINERAL PROCESSING AND METALLURGICAL TESTING
There was no mineral processing and metallurgical testing conducted
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17 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
The mineral resource estimate for the Bell Bay Quarry Project is based upon three
components:
� Demonstration of physical and chemical property homogeneity, ie., Mineral Resource
quality
� Volume/tonnage estimate of material, ie., Mineral Resource quantity
� Marketability of the Mineral Resource
Consideration of these components are necessary in order to classify an aggregate Mineral
Resource and are consistent with the guidelines for the reporting of industrial minerals in the
CIM definitions referred to in National Instrument 43-101. Mineral Reserves have not been
declared. Until all economic, design and other modifying factors are applied to define
reserves, the mineral resources do not have a demonstration of economic viability. Studies
have been sufficient to demonstrate that mineral resources have reasonable expectations for
future economic extraction; therefore these materials meet the CIM definition of resources.
17.1 Mineral Resource Quality
Physical properties are examined in detail in sections 11 and 12 whereas chemical properties
are discussed in section 13. Mapping and the Phase 1 diamond drilling program has shown
that the resources are bounded by fault zones. Material within the fault zones is considered to
be waste. The dolerite rock within the resource demonstrates rock qualities meeting or
exceeding the Australian Standards Specification Limit requirements for use as construction
material in the concrete and road industries.
The orthogonal jointing system appears to be uniform within the resources from surface to the
sedimentary-dolerite contact. The rock has very high strength. The steeply dipping
orthogonal joint sets may produce elongated aggregate. The elongated characteristic will be
investigated during the design of the commercial crusher.
Results of key quality measurements used in assessing the aggregate resource gave
favourable results. These include Coarse Fraction Particle Density and Water Absorption,
Sodium Sulphate Soundness Loss, and Los Angeles Abrasion Loss. The drill core is less
affected by weathering than surface samples and therefore is a better estimate of the quality
characteristics of the Bell Bay Quarry Project dolerite. The length weighted drill core results
from the Dolerite and Weathered Dolerite of the West, Central and East Resources are shown
in Table 13.8.1_1, Table 13.8.2_1, Table 13.8.3_1 and Table 13.8.4_1. Table 17.1_1
summarises the results for the four tests that were determined most significant for a resource
modelling exercise. However, all of these length weighted averages exceed the Australian
Standards Specification Limit requirements and therefore it is assumed that none of these
critical parameters need to be modelled for the global resource estimation since it is expected
that multiple mining faces will produce a global average blended feed for the processing plant.
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Table 17.1_1
Delta Materials Bell Bay Quarry Project
Summary of Key Quality Measurements
Test Length Weighted Average Standard Deviation Fresh Dolerite – West, Central and Eastern Resource s
Coarse Fraction Apparent Particle Density (T/m³) 2.93 0.06 Coarse Fraction Water Absorption (%) 0.88 0.54 Sodium Sulphate Soundness Loss (%) 2.67 3.02 Los Angeles Abrasion Loss (%) 13.21 1.43
Fresh and Weathered Dolerite - West, Central and Ea stern Resources Coarse Fraction Apparent Particle Density (T/m³) 2.93 0.08 Coarse Fraction Water Absorption (%) 1.13 1.18 Sodium Sulphate Soundness Loss (%) 4.12 7.59 Los Angeles Abrasion Loss (%) 13.89 5.09
Fresh and Weathered Dolerite – West Resource Coarse Fraction Apparent Particle Density (T/m³) 2.94 0.05 Coarse Fraction Water Absorption (%) 1.04 0.06 Sodium Sulphate Soundness Loss (%) 3.44 4.75 Los Angeles Abrasion Loss (%) 13.60 1.44
Fresh and Weathered Dolerite – Central Resource Coarse Fraction Apparent Particle Density (T/m³) 2.91 0.1 Coarse Fraction Water Absorption (%) 1.29 1.61 Sodium Sulphate Soundness Loss (%) 5.54 9.94 Los Angeles Abrasion Loss (%) 14.77 7.24
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17.2 Mineral Resource Quantity
The volume and tonnage of the Bell Bay dolerite in the proposed quarry area were estimated
from a 3-dimensional block model utilizing commercial mine planning software (Surpac).
17.2.1 Geological Modelling
Geological constraints for the mineral resource estimation were modelled by Coffey based
upon the lithological interpretations and the supplied drillhole database from Delta. Three
dimensional wireframe models representing the dolerite-sediment contact as well as fault
zones were constructed from digitised strings that were interpreted from drillhole sections
(Figure 17.2.1_1). A three dimensional wireframe model representing the base of pervasive
weathering was constructed from an interpolation of depth below surface values derived from
drill hole logs (Figure 17.2.1_2).
Figure 17.2.1_1
Delta Materials Bell Bay Quarry Project
Geological model Wirerframes
Review and editing of the lithological and weathering domains were carried out using the
interactive modelling facilities in the Surpac software package. All modelling work was carried
out in UTM (MGA94, Zone 55) coordinates.
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Figure 17.2.1_2
Delta Materials Bell Bay Quarry Project
Base of Weathering Model Wirerframe
17.2.2 Surface Topography
A three dimensional wireframe model of the surface topography at the Bell Bay Project was
supplied by Delta (Figure 17.2.2_1). The wireframe is based on a 40m by 40m grid; with
closer spaced data points along significant breaks of slope e.g. ridge lines and gullies. The
wireframe model is in close agreement with the drill hole collar elevations.
Figure 17.2.2_1
Delta Materials Bell Bay Quarry Project
Topographic Surface Model Wirerframe and Drillhole Collars – Oblique View Looking North
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17.2.3 Resource Boundary
The surface project limits are the faults bounding the West, Central and East Resources as
well as drainage and visual considerations (Figure 17.2.3_1).
Figure 17.2.3_1
Delta Materials Bell Bay Quarry Project
Resource Boundary (Red) and Bounding Faults (Blue)
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17.2.4 Block Model Construction Parameters
Parent block dimensions were selected based mine planning considerations, and sub-block
dimensions were chosen to enable accurate reproduction of the volumes of the dolerite
domain. The coordinate extents of the block model and the dimensions are summarised in
Table 17.2.4_1.
Table 17.2.4_1
Delta Materials Bell Bay Quarry Project
Block Model Dimensions
Block Size (m) Model Origin Coordinates
Extent (m)
Number of blocks Parent Sub-block
East 491500 1,800 72 25 6.25
North 5446500 1,350 54 25 6.25
Elevation -50 310 31 10* 2.5
17.2.5 Block Model Attributes
A series of attributes were incorporated into the block model for recording attributes assigned
throughout development of the block model. A list of the attributes is displayed in
Table 17.2.5_1. The domain coding was assigned on the basis of the various wireframe
constraints as displayed in Table 17.2.5_2.
Table 17.2.5_1
Delta Materials Bell Bay Quarry Project
Block Model Attributes
Attribute Description
rock 1=dolerite, 2=sediments
resource 1=inside resource boundary
weathering 1=fresh, 2=weathered
fault_zone 1=fault zone
rescat Resource Category (Numeric) – 1=Measured, 2=Indicated, 3 = Inferred
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Table 17.2.4_2
Delta Materials Bell Bay Quarry Project
Block Model Domain Coding
Attrtibute Code Wireframes Description
1 sed_dol_conatct1, topo Above dolerite-sediment contact and below topographic surface rock
2 sed_dol_conatct1, Below dolerite-sediment contact
resource 1 resource_boundary1 Inside resource boundary
1 base_ox Below base of oxidation weathering
2 base_ox Above base of oxidation
fault_zone 1 fault_zones1 Inside fault zone solid wireframe
17.2.6 Block model Validation
The integrity of the resource block models were validated by means of detailed visual
comparison of the various wireframes against the colour coded block models. The block
model volume and volumes between wireframe surfaces were compared for the dolerite
horizon. The block models reproduced the wireframe volumes well and are considered a
robust representation of the interpreted dolerite resource.
17.2.7 Bulk Density Assignment
The average length weighted Coarse Fraction Apparent Particle density value for the twenty-
five composites contained in the “Dolerite and Weathered Dolerite results from the West,
Central and East Resources” is 2.93t/m³. Results are contained in Table 13.8.2_1.
17.3 Mineral Resources Marketability
Delta has demonstrated through its studies to date that the Bell Bay dolerite has a reasonable
potential of being a commercial source of crushed rock for aggregate. Materials testing of drill
core from the West, Central and East Resource areas show that the dolerite has acceptable
abrasion resistance, sulphate soundness loss and water absorption values. Independent
studies of the Sydney aggregate market demonstrate that the area is permanently aggregate
deficient and that marine imports or hauling long distances by truck or train will be required to
meet projected demands.
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17.4 Mineral Resource Classification
17.4.1 Introduction
The resource categorisation of the Bell Bay Quarry Project was undertaken on the basis of
assessment criteria set out in the Canadian National Instrument 43-101, Standards of
Disclosure for Mineral Projects of February 2001 (“the Instrument”) and the classifications
adopted by CIM Council in August 2000. Measured, Indicated and Inferred Mineral
Resources have been defined using criteria selected during validation of the key rock quality
criteria, with detailed consideration of the Instrument categorisation guidelines.
The resource categorisation has been based on the robustness of the various data sources
available, including:
� Geological knowledge and interpretation.
� Surface outcrop observations.
� Drillhole logging and measurements.
17.4.2 Criteria for Resource Categorisation
The classification protocol consisted of two parts: defining limits at surface followed by a set of
rules for sub-surface projection. The dolerite within the topographic highs demonstrated good
continuity on surface, and measured rock quality characteristics allowed a high level of
confidence.
Measured Mineral Resources have been declared up to 150m laterally from a drill hole trace,
if supported in that particular area by dolerite with Good (60%) to Very Good (100%) RQD
values on surface, and not within the modelled weathered horizon.
Indicated Mineral Resources are those areas flanking the Measured Mineral Resource, and
within 150m of good RQD values on surface.
Inferred Resource is the remaining area within the bounds of the resource where dolerite
outcrop has been mapped and the RQD values are Good (>60%). Inferred Resources have
also been assigned to any dolerite within 50m of an interpreted fault.
Subsurface projection was set to the depth of the hole or to the dolerite-sedimentary contact.
The following numeric resource category codes were assigned into the block model, based on
the categorisation criteria listed above:
� Measured Resource: rescat = 1
� Indicated Resource: rescat = 2
� Inferred Resource: rescat = 3
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17.4.3 Categorised Resources
The aggregate Resource Statement as of September 10th, 2010 is displayed below in
Table 17.4.3_1 and has been prepared and reported in accordance with the Canadian
National Instrument 43-101, Standards of Disclosure for Mineral Projects of December 2005
(“the Instrument”) and the classifications adopted by CIM Council in August 2000. The Coffey
resource estimate for the Bell Bay Quarry Project has been classified as an Measured,
Indicated and Inferred Mineral Resources based on the confidence level of the key criteria
that was considered during resource classification as presented in Section 17.4.2, and on the
bounding limits defined in Section 17.2.3.
The classifications are also shown in plan view in Figure 17.4.3_1 and in section view in
Figure 17.4.3_2.
Table 17.4.3_1
Delta Materials Bell Bay Quarry Project
Mineral Resources as at 10 th September 2010 subdivided by Category
Category Volume (Mm 3) Tonnes (Mt) Measured Mineral Resource 78.2 229 Indicated Mineral Resource 34.6 101 Measured and Indicated mineral resource 112.9 331 Inferred Mineral Resource 3.6 10 Note: Average Length Weighted Coarse Fraction Apparent Particle Density = 2.93 t/m³; Mineral Resource calculated to dolerite-sedimentary contact and bounding faults
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Figure 17.4.3_1
Delta Materials Bell Bay Quarry Project
Block Model Plan View showing Resource Categories (Measured=yellow, Indicated=orange, Inferred=green )
Figure 17.2.3_1
Delta Materials Bell Bay Quarry Project
Block Model Section View (5447210mN)showing Resourc e Categories (Measured=yellow, Indicated=orange, Inferred=green )
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18 OTHER RELEVANT DATA AND INFORMATION
� The mine design and plan is being conducted internally in Delta by John Purkis. This
task will be awarded to an independent engineering firm upon completion of the Phase 2
drilling program.
� An independent 43-101 compliant report stating a Proven and Probable Reserve
acceptable to use in a Prefeasibility Study will be awarded to an independent engineering
firm upon start up of the Phase 2 drilling program.
� Coffey has conducted Hydrogeology and Hydrology Studies in preparation for an
Environmental Impact Assessment Report.
� North Barker Ecosystem Services has produced the Flora and Fauna Habitat
Assessment and Constraints Analysis for Coffey and is continuing data collection for the
Environmental Impact Assessment Report.
� Philip Milner consulting botanist has conducted flora surveys along proposed drill
roads/tracks and drill sites.
� Stuart Huys (CHMA archaeologist) and Vernon Graham (Aboriginal Heritage Officer) of
Cultural Heritage Management Australia is conducting the archaeological fieldwork for
Exploration Work Program and permitting purposes.
� The contract for Vibration Monitoring and Modelling is being tendered and monitoring is
expected to commence in 2010.
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19 INTERPRETATION AND CONCLUSIONS
The following interpretations and conclusions may be drawn from review of the Exploration
Studies:
� The Bell Bay Quarry dolerite is a coarse to fine grained, ophitic textured sill with an
apparent dip of approximately 10° to 15° to the southwest. The dolerite sill is cut by
steeply dipping NW-SE, E-W and NE-SW trending faults which bound the drill tested
West, Central and East Resources. In three-dimensional modelling the dolerite-
sedimentary contact appears to have an elongated bowl like form striking approximately
300-120 degrees. The true thickness of the pre-eroded sill is unknown, but known to
exceed 170 m as defined by drill hole BB10-13.
� Surface mapping and orientated core measurements indicate that there are five joint
trends in the project area. Three of the joint trends parallel NW-SE, E-W and NE-SW
striking faults. The N-S trending joints, appear to be the dominant trend. The low angled
E-W striking and south dipping joints are widely spaced and potentially could have an
impact on mine planning.
� The optimal blast hole pattern and explosive type will need to be determined in order to
produce the best combination of feed to the primary crusher, reduce costs associated
with secondary breakage and limit production fines. The relatively close spacing of the
steeply dipping orthogonal joint sets may cause elongation of the fine and coarse
fragments. Designing the commercial crusher specifically for the Bell Bay dolerite should
maximize the production of cubic fragments.
� The Central and East Faults have been drill tested. These two faults strike NW-SE and
dip steeply to the east and west and the Central Fault has an apparent dextral strike slip
displacement of approximately 450 metres.
� The Central and East Fault zones consist of weathered, sheared and brecciated dolerite
containing predominantly clays, limonite, zeolites, chlorite and carbonate. The quality of
the material within the fault zones does not normally meet the Australian Standards
Specification Limit requirements for the Coarse Fraction Particle Density and Water
Absorption, Sodium Sulphate Soundness Loss and Los Angeles Abrasion Loss tests and
therefore the fault zones have been classified as waste.
� The representative composite samples were classified into the following four categories:
o Dolerite – this material occurs within the resource and is good quality dolerite without
any significant weathering or deleterious minerals.
o Weathered Dolerite - this material occurs within the resource and represents the
weathered dolerite in the near surface portions of the drill holes and the more strongly
jointed dolerite adjacent to the fault zones.
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o Fault Zone – this material is considered waste because it contains deleterious minerals.
However, there are weathered dolerite boulders and sections of good dolerite within the
fault zone which may be separated by dry sieving and then utilized for crushed material
or specialty stone.
o Sediment - this material represents the Triassic age sediments underlying the dolerite
and is considered to be waste.
The Rock Quality Designation, Core Recovery and Point Load testing indicated that the
Dolerite and Weathered Dolerite Results for the West, Central and East Resources were as
follows:
� Core Recovery averaged 98%, indicating competent rock within the resources.
� RQD averaged 63%, which yielded a rating of 13. Together with the other criteria (Intact
Rock Strength, Joint Spacing, Joint Condition and Groundwater) in the Rock Mass Rating
Classification System produced a rating of between 60 and 80 which is described as
Good on a five division scale ranging from Very Poor to Very Good.
� Point Load testing results indicate that 97% of the core tested has a strength
classification of R4 High to R6 Extremely High.
� The following analytical tests were determined to be critical parameters for evaluating the
suitability of the composite drill core samples for construction material:
� Coarse Fraction Particle Density (>2.5 T/m³) and Water Absorption (<2%)
� Sodium Sulphate Soundness Loss (≤6% for concrete exposure classification C and
≤9% for concrete classification B1 and B2)
� Los Angeles Abrasion Loss (<30%).
� Six composites within the West and Central Resources are classified as Weathered
Dolerite. Weathered Dolerite occurs close to the surface or in areas containing a higher
frequency of closely spaced joints.
� Three of the six composites are contained within the upper portions of the drill holes
and yield results that did not meet Australian Standards Specification Limit
requirements for at least one of the critical parameters.
� One of the six composites was collected from a zone of closely spaced joints
adjacent to the Central Fault. The composite contains weathering and alteration
minerals and yielded results that did not meet Australian Standards Specification
Limit requirements for at least one of the critical parameters.
� Two of the six composites exceeded the Australian Standards Specification Limit
requirements for the critical parameters
� Dolerite, with the exception of one composite, yielded test results that exceeded the
Australian Standards Specification Limit requirements for use in the concrete and road
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construction industries. The composite exception, from BB10-20, was sampled from a
zone of closely spaced joints adjacent to the Central Fault and contains weathering and
alteration minerals, which yielded results that did not meet the Australian Standards
Specification Limits.
� Testing of the Dolerite and Weathered Dolerite from the West, Central and East
Resources indicated that the arithmetic and length weighted averages for all tests, with
the exception of the Fine Fraction Water Absorption, exceed the Australian Standards
Limit requirements for construction material. It is believed that the Fine Fraction Water
Absorption values will be improved during crushing and processing as a result of
designing the equipment specifically for the material being mined. Therefore, it is
believed that the Dolerite and Weathered Dolerite can be blended during mining to
produce a product that would meet the requirements for construction material in the
Sydney market.
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20 RECOMMENDATIONS
The Phase 1 drilling program was modified during the program which resulted in more vertical
holes being drilled than originally designed. The consequence of this change was that the
vertical holes parallel the steeply dipping joint sets which contain weathering and alteration
products. The test results may not represent the area of influence around the drill hole
because the frequency and intensity of the joint sets away from the vertical hole is unknown.
Therefore, angled holes should yield a better understanding of the distribution and
characteristics of the jointing. A geophysical resistivity survey may be useful in defining
conductive clay within zones of weathered dolerite.
A budget estimated at $1.75M is proposed for a Phase 2 drilling program consisting of 40
angled holes and one vertical hole totalling 5,359 metres of HQ3 and NQ2. Included in the
total, are three, vertical water bore holes totalling 350 metres for hydrogeology studies and the
extension of two drill holes 20 metres into the sediments for geotechnical studies.
It is recommended that a geophysical resistivity orientation survey be conducted across
BB10-12 and the Central Fault Zone. The purpose is to determine if the weathered dolerite
and the fault zone material has an anomalous conductive response due to clay content. If
successful, then it is recommended that the resources be surveyed by geophysical resistivity.
Defining the zones of deleterious material will improve drill hole planning and reduce drilling
costs.
It is recommended that two track mounted diamond drills be utilized on a 24 hour per day and
7 day week schedule in order to produce a cost efficient and effective three month drill
program.
The purpose of the exploration program is as follows:
� to determine the area of influence of weathered dolerite within the resources.
� to determine the area of influence of intensely jointed dolerite adjacent to the faults zones
within the resources.
• to increase the statistical database of composites to allow interpolation of quality
parameters and/or definition of sub-types of unsuitable materials with confidence in
volume zones representative of annual periods in a typical mining sequence.
� to acquire hydrogeological and geotechnical data for baseline studies and mine planning.
Coffey Mining Pty Ltd
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21 REFERENCES
Bacon, C. A., 1999. Mineral Exploration Code of Practice Edition 4-March 1999, Mineral
Resources Tasmania publication.
Banks, M. R., Green, D. H., Hergt, J. M., McDougall, I., 1989. Jurassic dolerite in Geology
and Mineral Resources of Tasmania, Geol. Soc. Aus. Spec. Publ. 15, 375-378.
Forsyth, S. M., 1984. Oatlands, Tasmania. Tasm. Dep. Mines.Geol. Atlas 1:50,000 Series
Expl. Notes, Sheet 68 (8313S).
Forsyth, S. M., 1989. The Tamar Graben in Geology and Mineral Resources of Tasmania,
Geol. Soc. Aus. Spec. Publ. 15, 358-361.
Hergt, J. M. and Brauns, C. M., 2001. On the origin of Tasmanian dolerites. Aust. J. Earth
Sci., 48, 543-549.
Hergt, J. M. and McDougall, I., 1989. Petrography (Jurassic dolerite) in Geology and Mineral
Resources of Tasmania, Geol. Soc. Aus. Spec. Publ. 15, 378-381.
International Society for Rock Mechanics Commission on Testing Methods, Suggested
Method for determining Point Load Strength, Int. J. Rock Mech. Min. Sci & Geomech.
Abstr., Vol. 22, No. 2, pp.51-60, 1985.
Knight Piesold Consulting, 2004. Field Procedures Manual – Geotechnical Data Collection for
Exploration Geologists, www.knightpiesold.com.
Leaman, D. E., 1975. Form, mechanism and control of dolerite intrusion near Hobart,
Tasmania. J. Geol. Soc. Aust. 22: 175-186.
Leaman, D. E. and Richardson, R. G., 1981. Gravity survey of the east coast coalfields. Bull.
Geol. Surv. Tasm. 60.
Leaman, D., 2002. The Rock which makes Tasmania. Leaman Geophysics publication,
Hobart, Tasmania, Australia.
McDougall, I., 1958. A note 0n the Petrography of the Great Lake Sheet in Dolerite
Symposium, Univ. Tasm., 52-60.
Morrison, K. C., Baillie, P. W., Davidson, J. K. and Quilty, P. G., 1989. Tectonic and
Depositional Framework (Jurassic-Cainozoic) in Geology and Mineral Resources of
Tasmania, Geol. Soc. Aus. Spec. Publ. 15, 341-347.
Nordin, G., and Boronowski, A., 2002. Geological Report Alberni Aggregates Project, Alberni
Inlet, British Columbia. Prepared for Polaris Minerals Corporation and Eagle Rock
Materials Ltd.
Seymour, D. B. and Calver, C. R., 1998. Time-Space Diagram for Tasmania, NGMA TASGO
Project, Version 2 (31-3-1998).
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Sloan, D.J., Some physical properties of dolerite, Tasmanian Department of Resources and
Energy, Division of Mines and Mineral Resources, Report – 1991/22
Smith, Larry, 2005. Eagle Rock Quarry Project, British Columbia, 43-101 Technical Report
and Qualified Persons Review. AMEC – Eagle Rock Materials Ltd.
Sutherland, F. L., 1977. Zeolite minerals in the Jurassic dolerites of Tasmania: their use as
possible indicators of burial depth. J. Geol. Soc. Aust. 24(3): 171-178.
Williams, E., 1976. Explanatory notes for the 1:500,000 structural map of pre-Carboniferous
Rocks of Tasmania: Tasman Fold Belt System in Tasmania. Tasm. Dep. Mines.
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22 CERTIFICATES
Certificate of Qualified Person As a reviewer and author of the report entitled “Bell Bay Quarry Project, Tasmania” dated September 10th 2010, on the Bell Bay Quarry Project from Delta Materials (the “Study”), I hereby state:-
1. My name is Troy Edward Lowien, Associate Resource Geologist, with the firm of Coffey Mining Proprietary Limited of Level1, 15 Astor Terrace Spring Hill 4000, Australia.
2. I am a practising geologist and registered Member of the Australasian Institute of Mining and Metallurgy (No 112701).
3. I am a graduate of the Queensland University of Technology, Queensland, Australia with a BAppSc (Hons) Degree in Geology (1997). I have practiced my profession continuously since 1998.
4. I am a “Qualified Person” as that term is defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) (the “Instrument”).
5. I have visited the Bell Bay Quarry Project. I have viewed core and reviewed files and data supplied by Delta Materials during October 2009 to September of 2010.
6. I am responsible for Section 17 of the study, and jointly responsible for the remaining sections.
7. As of the date of this certificate, to the best of my knowledge, information and belief this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.
8. I am independent of Delta Materials pursuant to Section 1.4 of the Instrument.
9. I have read the National Instrument and Form 43-101F1 (the “Form”) and the Study has been prepared in compliance with the Instrument and the Form.
10. I do not have nor do I expect to receive a direct or indirect interest in the Bell Bay Project or Delta Materials, and I do not beneficially own, directly or indirectly, any securities of Delta Materials or any associate or affiliate of such company.
Dated at Brisbane, Queensland, on 10th September, 2010.
Troy Lowien Associate Resource Geologist
BAppSc (Hons) (Geology) MAusIMM
Coffey Mining Pty Ltd
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23 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES
All relevant information has been presented in the preceding chapters.
Appendix 1 Geology 1:25,000
Appendix 2 Geological Mapping
Appendix 3 Cross Sections
Appendix 4 Drill Hole Logs
Appendix 5 Drill Core Photos
Appendix 6 Surface Mapping Tables
Appendix 7 Geotechnical Review – Coffey Mining
Appendix 8 Geophysical Survey Report – Atlas
Geophysics
Appendix 9 Drill Core Analytical Results – Review by
CQT
Appendix 10 Petrographic Studies
Appendix 11 Drill Core Logging Procedures
Appendix 12 Field Procedure Manual – Geotechnical Data
Collection for Exploration Geologists