EIS 680

Statement of environmental effects of proposed antimony

mining at Bradley's mine for Valentine Mining & Exploration Pty.

Ltd.

. 1.

- - -, -~-,~,- , ~ ,,,,-;,,z~,~:; ~:-- ~ " ~: z, , - - -,:~.._ 2 .,t I . . ~ ~ ~ 11, . - - -~ - ..

11 ~- - -, - ~ g~

- ~~:~

-"*- -

., " . , , -t:- , , , ,- ,-~, -.- - - ~ . , ; , ~~-,~~---,~-,, I

STATEMENT OF I EWVIRONMENTAL EFFECTS

p 2

I I

~ I * PROPOSEEI ANTIMONY MINING 2 3 ~

I I.

a

I BRADLEY'S MINE

I

I

I VALENTINE MINING & EXPLORATION PTY LTD

I

I 3 .I~ 1. I BLYTH, HADLOW & ASSOCIATES

SURVEYORS, ENGINEERS & PLANNERS

p-

39 ELBOW STREET, WEST KEMPSEY %

I

I - REF 9402- 1. . frLARCH1;8;

I - -- - - - -- __i & .-. -'---- -

I -

-. ;1::

EPPIIRONMENTAL GEOLOGY SEC11ON

GEOLOGICAL SURVEY OF NISIWI

-r

MINERALS AND

2

-7 -

I.

I I I I I I I I I I I I

1.0 BACKGROUND INFORMATION

1.1 INTRODUCTION

This Statement of Environmental Effects is to accompany an appli-cation to the Nambucca Shire Council for Development consent to extract antimony from an underground mine known as Bradley's Mine within the Mistake State Forest near Bowraville and transport same to Sydney and Brisbane for export to overseas markets (See Figure 1 - Locality Sketch)

The operation, if it proceeds, will be by way of a Mining Lease issued by the Department of Mineral Resources.

The Application for this lease has been under consideration by the Department for some time. After consultation with all of the relevant Government Departments and Instrumentalities, the Department has offered the Applicant Company a lease over the subject area, subject to strict terms and conditions intended mainly to protect the environment, the interests of the various departments and the public. A copy of the Special Conditions attached to the Proposed Lease is attached as Annexure "A".

The involvement of the Department of Mineral Resources byway of the issuing of the lease and the monitoring of the conditions ensures that environmental factors associated with the particular site are adequately catered for.

This Statement theefore is mainly concerned with matters not directly related to the- site.

1.2 COMPANY BACKGROUND

Valentine Mining and Exploration commenced operations in 1982.

I In January 1983 a report entitled 'An Introduction to Valentine Mining and Exploration Pty Ltd' w&s prepared with a view to set-ting out details of the Company's operations and objectives.

I A copy of the relevant part of that report is attached - Annexure "B"

I In summary, the Company has prospecting licences over four areas in the Upper Nambucca but has concentrated its efforts to date on the subject Bradleys Mine.

I Up until 1983 in excess of $300,00- 0.00 has been expended on mine workings and bulk sampling at the site.

I -

I. I I PAGE 2 Over 300 tonnes of ore has been mined and 130 tonnes shipped to Hiligrove near Armidale for processing.

Snce 1983 the Company has established a small pilot milli near Clybucca and processed a further 200 tonnes of ore to assess the milling process recommended by the Department of Mineral I Resources. The results of this operation were quite pleasing and the Company

I has a number of overseas Companies which have expressed interest in acquiring the production from the mine. I In accordance with the Company's short term objectives it is pro- posed now to establish a small scale mining and milling operation

that will establish sufficient mineral holdings to be fully ' explored and reserves proven.

The first step in this process is to obtain a mining lease and the application forms part of that process.

I I

1.3 LOCATION & EXTENT OF WORKS

The proposed works are located within the Mistake State Forest at the head of Buckra Bendinni Creek about 2km south east of Billy

I Goat Knob and off the Springs Road (See Figure 2). The area comprised in the proposed lease contains approximately

I 15.82 ha(See Figure 3).

1.4 LAND TENURE

The land comprised in the works is Crown Land controlled by the

I Forestry Commission of N.S.W. Tenure of the site will be by way of a Mining Lease granted by the Department of Mineral Resources pursuant to the Mining Act, 1973, as amended.

I 1.5 PLANNING CONTROLS

- The land is zoned Non Urban 1(a) under Narnbucca Local Environmen- tal Plan No 1. Being part of a State Forest the only land uses

I likely now and in the future are forestry, recreation and mining. The Proposed Development is an Extractive Industry and can only be carried out with the consent of Council.

I. I PAGE 3 1 2.0 DESCRIPTION OF PROPOSAL I

2.1 GENERAL

The proposed operation involves the underground mining of antimo-ny and the transportation of the bulk ore mainly to Sydney and

I Brisbane for export overseas. Some ore may be sent to Hiligrove near Armidale for processing or to other mills if and when any are established. There will be no processing carried out on this site as a result of this consent.

2.2 AVAILABILITY OF MATERIAL

The mine has been worked periodically under a prospecting licence

I for many years. The Mine Map (Figure 4) prepared by D.W. Suppel and R.Cameron of the Department of Mineral Resources in 1970 gives some idea of the extent of the workings at that time and

I

they have since been extended further. It has been estimated that there are at least 50,000 tonnes of ore available within the mine. I 2.3 METHODS OFEXTRACTIOt1 I It is proposed to mine uri4ergroundby the stope and fill method. Bulk rock is excavated, the good ore is taken away and the resi-due rock remains to partly fill the excavation so that access to I other sections of the mine is made easy. There is very little or no residue and very little disturbance to the surface other than at the entry and access road. Total surface area disturbed will be

I less than 2 ha (probably only 5000m2)

I 2.4 QUANTITIES AND LIFE EXPECTANCY Itts proposed to excavate and cart from 5 to 30 tonnes or on average 1 truck load per day and to work a 6 day week. If this

I rate is maintained the operation will have an expected life of 12 to 20 years I I 2.5 HOURS OF OPERATION AND TRANSPORT I It is proposed to operate the quarry between the hours of 7a.m. to 5.00p.m. Monday to Saturday. Access could be difficult in wet weather and there will most likely be reduced or no operation

I. I I I during wet periods. On average the work will be completed in 8 hours but there will probably have to be extra hours worked after

I

prolonged wet periods to catch up on production targets. It is proposed to transport from 1 to 5 truck luads per week from the mine to a stockpile probably at Bowraville in special RSXX Mack Trucks. These are special trucks with bogey drive and wide

I wheels previously used in sand mining. The ore will then be transported to Sydney or Brisbane in semi-trailers.

2.6 PLANT REQUIRED I Plant required will include a generator, compressor, a small loader, small underground rail trucks and miscellaneous welding equipment. Blasting will be carried out probably once per day.

2.7 EMPLOYMENT

- Initially three men will be employed full time to establish the

I

operation. Once production gets fully under way, up to eight men could be employed at the site. Special Condition 9 of the Mining Lease requires the employment of at least two men full time on each work day and- the expenditure of at least $20,000.00 per

I

annum on mining operations.

2.8 ACCESS

It is envisaged that the employees will live or stay in Bowra-yule and travel to the mine each day by mini bus via the Lower North Arm Road to Argents Hill, then the Buckra Bendinni Road and then the Springs Road to the mine. The road is not considered

I suitable for heavy trucks and it is proposed that trucks would use the Lower Buckra Bendinni Road and then the forest roads known as Hanging Rock Road, Kosekai Road and the Spring Road to

I

the mine. (See Figure 1)

- The Mining Company would maintain the Spring Road and the Fores-

I

try Roads in reasonable order at its own expense. The roads would not be used in wet weather in accordance with Forestry Pol-icy. I 2.9 NOISE I The activity is very remote from the nearest dwelling and underground and so no noise problems are envisaged from the min-ing operation.

I

I. I I There are only about six dwellings along the route that the trucks willi take. The grades are reasonable and mainly down hill.All trucks will be properly equipped with mufflers etc and any additional noise, which will be between 7.30am and 6p.m., is considered to be within reasonable limits, having regard to the

' background noise of existing farm machinery, trucks, etc. It is understood that two to three log trucks per day usually operate in this same area.

2.10 REHABILITATION

Conditions included in the lease and pertaining to rehabilitation at the site are very explicit and have been determined after con-sultation wi th the Soil Conservation Service, the Forestry Commission and the Department of Environment and Planning. The conditions will be policed by the Department of Mineral Resources which also holds a surety to ensure that the rehabilitation is properly carried out.

3.0 DESCRIPTION OF ENVIRONMENT

3.1 NATURAL ENVIRONMENT

The mine site is located adjacent to the head of Buckra Bendinni Creek on the side of a very steep ridge. The natural vegetation

I

comprises dense forest, however the surface area disturbed by the operation is very small, being less than 4000m2 and in fact has already been established during prospecting operations. Experience has shown that vegetation very quickly re-generates

I

and after only ten years the access road cut into the mine is hardly discernible.

I

There has been no detailed study of the natural fauna at the site. There is no evidence of any 'special habitat' and as the site is very small by comparison to the large areas of a similar nature surrounding it a detailed study of the existing fauna was I not considered necessary. 3.2 MAN MADE ENVIRONMENT

As previously stated the site is located in a State Forest and well away from any permanent dwellings.

The main activities in the area are related to forestry but this

PAGE 6

I small scale underground operation will in no way interfere with this. I While the access to the minemight create noise and some incon.- veiience to people living along the access road, the operation

will also provide direct employment opporuntities for up to eight

I local people and a consequent input into the apparently flagging rural economy of the area.

4.0 ASSESSMENT OF ENVIRONMENTAL IMPACT AWD PROPOSED

I PROTECTION AND SAFEGUARDS

I The main environmental concerns associated with the proposal appear to be;

I. 1. Visual Impact

2. . Noise

1 3. Dust 4. Pollution of Buckra Bendinni Creek

1 5. 6. Sites of Aboriginal, Archaeological or Heritage Value

I 7. Rehabilitation

4.1 VISUAL IMPACT

The surface area occupied by the site is very small and at the bottom of a very deep gully. It is visible from very few on

I ground locations. The access road running to the site from the forestry road has

I

been established for a number of years and clearing done during construction of same has quickly re-established itself so that the road is now hardly discernible.

I

I PAGE 7 I 4.2 NOISE LEVELS I

The operation is located well within the State Forest and remote from any permanent dwelling or place of work. The main sources of noise will be the loader and truck, both of which will be

I

equipped with approved mufflers which render them able to operate as well in areas much more susceptible to noise pollution. Blasting will be underground about once per day and unlikely to be heard anywhere other than at the mine entrance.

4.3 DUST

Dust from the trucks may cause inconvenience but no more than past and future logging operations in the area. The ore itself is not dusty being in a solid rock form.

4.4 POLLUTION OF BUCKBRA BENDINNI CREEK -. ' There is minimal water used in the excavation process and the

only source of possible pollution or siltation of watercourses in the area is from erosion of the stockpile during storms.

Stockpiles at the mine will be small (at the most 100 tonne) due to the lack of space for storage and the desire to take the material away quickly in case rain prevents access by the larger

I trucks. The stockpile will be located and designed so as to min- imise runoff in accordance with the Special Conditions of the Mining Lease. -

In any case the material itself is a hard rock substance that does not decompose in water.

I 4.5 CUMULATIVE EFFECT

I Other land uses in the vicinity include forastry anagriculture. The proposed operation will increase the traffic flows within the

I

area Monday to Sat, inclusive by up to two return trips daily. Traffic generated at present is only light and the roads are con-sidered quite capable of handling this additional traffic.

I 4.6 SITES OF ABORIGINAL, ARCHAEOLOGICAL OR HERITAGE VALUE

I The mine has been established since the beginning of thecenury and any new works will be by way of extending the existing under- ground workings. There are no obvious sites of Aboriginal,

PAGE 8

Archaeological or Heritage Value (save some old mine workings) anywhere within the surface area occupied by the mine.

4.7 REHABILITATION

When mining is completed, the mine will be closed off and made safe in accordance with the requirements of the Department of Mineral Resources. All surface equipment will be removed and the surface area cleaned up. The forest will quickly overgrow the area if past experience is any guide.

5.0 PUBLIC AUTHORITIES

We have contacted the Department of Mineral Resources who advise that they consulted with the Soil Conservation Service, the Forestry Commission and the Department of Environment and Plan-fling before offering the Company the lease proposal attached. Each of the above authorities are said to have no objection to the granting of the lease.

6.0 SUMMARY

The proposed development is a relatively small but important work

I that could have a significant effect on the economy of the region. It may well be that this operation could lead to a bigger operation being established. However any extension of

I this activity will of coursebé subject to a further application and probably a full Environmental Impact Statement.

I It is an operation that will be closely monitored by the Depart- ment of Mineral Resources who will ensure that the local natural environment is protected and the area properly rehabilitated.

I This proposal will not have any significant impact on the natural or man made environment of-the gen-e-ral---area -of operation other than to perhaps increase employment opportunities in the region.

I This proposal, although viable in its own right, is seen as the next step necessary to determine whether or not a larger opera-tion is a viable proposition.

BLYTH, HADLOW & ASSOCIATES.

I

- - - - -

-'

Li

LO t-40KT1,j

lotz

I -

MINE

- Y :

5PRi - I fzlopo L -

1NN' - - - - 4y

-TAT

3 I ftOCK wv

AKT

SURVEYORS

-- __ — - -- -- ----- -

-ASSOC

- --- -

to. tr 12 13 a I,,

I

460 61 62 63 64 65 66 67 68 69

IV. 39

-

77

Acf J.

I _ I =

- \ {

ff

33

_1C

1 V ___1

IT

11 SURVEYORS BLYTH HADLOW £ ASSOC NN REFERENCE

Oa O. 1 :a7000. METRIC MNE - BUCKFA \NNt CRULK. Surveyors, Engineers t Planners, P.O. Box i W. Kempsey 44u.

DATE: -V N PRO P Phone: 065-62-6688. SHIRE OF NAMBUCCA

DATUM: H. D.

- S•._ • / ' I J -.------ I -

-•- \ '-•------ - r — cS

'-'•. t_--__-.' ;/j :

r. - .---.----- - - 5 .- - - - - ----- - ---- -

I • l --.- ,. ., - -. - -- \ s\\%\\.( - -: > (• -s — — \ — - - \ \\'.•• •- // / / .--- \\ \-__ •'i jf:

rc( - — —. —

'I \-— •— __ .'-- - * r •• ___

- -. ..

It

or 10

;

to

LfAL J\REJ\ 5RT\DLE-"3 NNE-BUCNR1 END1HN'•h CREEK

- \J*kNT1N E AINtNG E(PLcjON P LTb.

3LYTH, HADLOW C ASSOC Surveyors, Engineers E Planners,

P. 0. Box 139 W. Kempsey 2440.

Phone: 065-62-6688. FIEDURE. 3

SURVEYORS

REFERENCE

SHIRE OF NAMBUCCA

1: METRIC

DATE:

DATUM:

Preliminary

— o. 1: — METRIC

FCD .i .!.f L ••

IN In

• - • !___ _!' ' . • 'A • 4 o. ;;;-;;: !jj E —-•-;-:; .' 12 1

__..— .,. *.!wHaii -

I P.-

- £PL&Noc

I BR.ADLE't'S Nl ADIT

BEMC PART Of THE OCS OF 5KADLEYS ANflMO(Y MIWE

CURF.ZWILY VITWIN PLUS (VGS.&UL), fA11Ii(.

I

by P V

..d I , w C. 4 -

I PEFEENCE

-

I - + '--—• - -

SURVEYORS FFERENCE

i i

-

- SHIRE OF NAMBUCCA

P?eliminary

a — --

- PLAN V('/ OF Yb.

LOCJDAL uEW OF SJO — rLT 5URVEY

DATE: 1E2.

DATUM:

'CU viEw OF STOPr — .' — 4 - — — — — — • ,.) / /

PLPN or \iORNG P\T RDL-"1' N/\iNE. OF

OUC mo

-V NG LXPLORON P

-— a

Pehmmary

- 7'

- - • —s —

BLYTH, HADLOW £ ASSOC Surveyors, Engineers E Planners, P.O. Box 139 W. Kempsey 2440. Phone: 065-62-6688. FIGURE

I L±L.,[ - ----.--, -S...

Within a period of three mouths from the date of this authority, or within such further time as the Secretary may allow, the registered holder shall serve on each owner or occupier of the private iaut.i, ann on eacn occupleL of the Crown land held under a pastoral lease and on each mineral owner (other than the Crown) within the subject area, a notice in writing indicating that this authority has been granted, and whether the authority includes the surface. The notice shall be accompanied by an adequate plan and description of the subject area.

If €hr7 are ten or more owners or occupiers affected, the registered holder may serve the notice by publication in a newspaper circulating in the region where the subject area is situated. The notice shall indicate that this uthr!ty has been granted, 3tate whether the authority include! the surface,

and shall contain an adequate plan and description of the subject area.

The registered holder shall restrict mining operations on the subject area to shaft sinking and. tunnelling, and shall not adopt any other method of mining, unless with the approval of the Secretary first had and obtained and subject to such conditions as he may stipulate.

The registered holder shall not open up or use more than two shafts at any one time, unless with the approval of the Secretary first had and obtained and subject to such conditions as he may stipulate.

operations shall be conducted in such a manner as not to cause any danger to personsand stock and the registered holder shall provide and maintain adequate protection, to the satisfaction of the Secretary, around each shaft opened up or used by the registered holder.

The registered holder shall carry out ll operations in such a manner as to conform strictly with the provisions of the Clean Waters Act, the Clean Air Act, the Noise Pollution Act and the Regulations under those Acts.

The registered holder shall not fell trees, strip bark or cut timber on any private land, or Crown land held under a pastoral lease,.within the subject area, except with the approval of the Warden and subject to payment to the owner of the trees, bark or timber of compensation assessed by the Warden under the Mining Act, 1973, and on any other land subject of this authority shall not c sut, destroy, ringbark or remove any timber or other vegetative cover exce4-tt uch as directly obstructs or prevents the carrying on of the operations thereby authorised.

The registrd holder shall not interfere with the flow of water in any strem or watercourse, except for the purpose of obtaining water for the operation of a treatment plant.

The registered holder shall not interfere with any well, water pump, dam or pipeline, without the consent of the owner and occupier first had and obtained.

he registered- holder s-hall --

a) ensure that at least two (2) competent workmen are efficiently employed on the subject area on each week day, except SaLurday or any week day that is a public holiday,

or

(b) expend on operations, carried out in the course of prospecting or mining

I tht subject area, an amount of not less than t'nty thousand dollars ($20,000.00 ) during each year of the term of the authority.

I

directi; associated with the prospecting or aining operations, shall not be accounted expenditure for the purposes of this condition. The Secretary may, at any time or times after a period of two years from the

I date on which this f::z the dz. .,u which the renewal of this authority has effect, as the case may be, by instrument in writing served on the holder of the authority, 'iñcreae or decrease the

I amount of expenditure required under this condition, provided that not more than one variation in the amount of expenditure shall be made in any period of two years. 10

I 10. (a) Where an Inspector of Mines/District Mining Engineer is of the opinion that any condition of this authority relating to the working of the subject area, or any provision of the Mining Act, 1973

I relating to the working of the subject area is not being cornplie4 with by the registered holder, he may in writing direct the registered holder:—

(i) to cease working the subject area in contravention of that condition or Act; and

I (ii) to carry out within a specified time works at the expense of the registered holder necessary to rectify or remedy the situation.

I (b) Where an Inspector/Engineer issues any direction to the registered holder pursuant to paragraph (a) of this condition the registered

Iholder shall comply with the direction.

ii. (a) Where the registered holder desires to commence prospecting operations in the subject area the registered holder shall notify

I the Secretary in writing and shall comply with such additional conditions as the Secretary may impose, Thcluding any condition requiring the lodgement of an additional security for rehabilitation

Iof the area affected by such operations..

Where the registered holder notifies the Secretary pursuant to - paragraph (a) the registered holder shall furnish with that

I notification details of the type of prospecting methods that would be adopted and the extent and location of the area that would be affdcted by them.

I 12. (a) The registered holder shall lodge with the Secretary a security in a form approved by the Secretary in an amount of two thousarKi - dollars , conditioned upon compliance with the

I terms and conditions of this authority or any renewal thereof. In tie event of such terms and conditions not being fulfilled in their - htirety the security lodged may be forfeited.

I (b) (i) Subject to subparagraph (ii) of this paragraph the Secretary may at any time or times after the expiration of two years from the commencement of this authority or any renewal

I thereof, review the amount of security required in accordance with--paragraph (a) of this condition and increase or decrease the amount to be lodged;

I (ii) Not more than one variation in the amount of security required shall be made under subparagraph (i) of this paragraph during any period of two years unless the Secretary

I considers that the security should be decreased. The registered holder shall, where the amount of the security has

I been reviewed pursuant to paragraph (b) of this condition lodge a further security in a form approved by the Secretary within twenty eight days of being required in writing by the Secretary so to do.

I

I -

I 13. (i) Should the proposed operations involve the removal of material

. from within a watercourse then:-

I (a) such material shall be stored above known flood level

and must not be returned to the said watercourse,

(b) the maximum depth of excavation below the level of, the toe

I of the nearer bank shall not at any point exceed a depth greater than one-third of the distance from the toe of the said bank.

U The nearer ban-k shall be the natural bank or as spec-if i-ed- -- - - - by the Water Resources Commission,

(C) the bed of the watercourse

I shall be left reasonably smooth

and free from holes or ridges and other ohstruction or irregularities which could adversely affect the flow. The longitudinal grade should be even and the channel should

Ihave a uniform cross-section.

(ii) Should the proposed operations involve the excavation of river banks

I and/or excavation within 40 metres of the top of the river banks, progressive restoration of the area shall be carried out during quarrying operations. Restoration of all river banks shall be made to an alignment and profile selected by the Water Resources

I Commission and the restored bank or area of operations stabilised by a dense growth of vegetation. I

(iii) All scrub s undergrowth and timber necessarily removed during the course of operations in or adjacent to any watercourse shall be burned or otherwise disposed of to overcome the likelihood of this debris being swept into the watercourse during a flood.

All operations, including the removal and disposal of materials, shall be carried out in such a manner as will not cause sedimentation or erosion of any watercourse or its flood plain.

The registered holder shall make adequate provision for the long term stability of any stockpiling, disposal areas and tailings dams and for the prevention of leachate or other pollutants from any treatment plant entering surface water or groundwater.

The registered holder shall ensure that tailings or disturbed soil material from traffic areas does not settle within five metres of Buckra Bendinni Creek or any defined watercourse.

The registered holder shall maintain access roads with a view to minirnising

Isoil erosion.

The registered holder shall not construct any buildings or structures on the

L subject area unless with the consent in writing of the District Forester, Urunga or his Deputy first had and obtained.

.17. The registered holder shall obtain the approval in writing of the District

I Forester, Urunga or his Deputy prior to constructing any access roads or tracks within Mistake State Forest No. 525. Such roads or tracks shall be constructed to a standard approved by the District Forester or his Deputy.

I 18. The registered holder shall obtain the approval in writing of the District Forester, Urunga or his Deputy prior to carrying out any operations which

Iwill cause disturbance to the surface of the subject area.,

19. The registered holder shall inform the District Forester, Urunga, or his Deputy upon completion of the operations hereby authorised.

PA.

-

* 11

AN INTRODUCTION TO

VALENTINE MINING & EXPLORATION PTY. LIMITED,

ITS CURRENT OPERATIONS

AND ANTIMONy MINING PROSPECTS

UPPER TAYLOR'S ARM AREA

NORTHERN NEW SOUTH WALES

46

INTRODUCTION

COMPANY OBJECTIVES

DESCRIPTION OF OPERATIONS TO DATE & PROJECTED OPERATIONS

COMPANY MANAGEMENT & STRUCTURE

FINANCIAL MODEL & CASH FLOW FORECASTS

ANTIMONY PRICE, MARKETS & END USES

ATTACHMENT 1

REPORT ON THE GEOLOGY ON ANTIMONY DEPOSITS IN THE UPPER TAYLORS' ARM AREA, NEW SOUTH WALES FOR VALENTINE MINING EXPLORATION PTY. LIMITED BY G. C. KELLY.

ATTACHMENT 2

SUMMARY OF KNOWN MINING INFORMATION IN THE SUBJECT AREAS.

ATTACHMENT 3

INDICATIVE ASSAY REPORTS.

I. 1. INTRODUCTION

IThis -report presents a description and evaluation of the Company's operations and development potential, specifically in regard to the I various_Antimony and gold mineral tenements it occurs in the Upper Taylor's Arm area in northern New South Wales. I The report is primarily intended to serve as an introduction to potential investors, equity participants, and clients.

I- Valentine Mining and Exploration Pty. Ltd. (VME) commenced

operations in February 1982 with the expressed objective to explore and develop its mineral tenements in the I Bowralville and Taylor's Arm areas. The Company currently holds licences over four separate areas which are described in some detail in Section 5. Operations are I proceeding in one, Bradley's Mine, with the establishment of initial mine workings and bulk sampling. Over three hundred tonnes of ore has been mined, and a

Ifirst load of about 130 tonnes has been sold on a trial basis to assess the ability of the ore to be milled and processed.

To date the Company has concentrated its efforts in establishing a pilot operation based on the mining, processing and marketing of Antimony as, even with the relatively depressed world market, the potential available within the Company's interests in this mineral is extemely high.

I **

The size of the initial pilot operation planned is such that concentrate containing approximately 20 tonnes of Antimony metal will be produced per month. This would result in an annual production of 240 tonnes, which is more than one half of one percent of the current total world production, and would represent an annual revenue of $360,000 at current market prices.

During the latter half of the 19th Century and up to the end of the Second World War the subject area was explored for gold and Antimony, and although evidence exists of several old mine workings in the area, there is little researched geological data.

VME has undertaken extensive on-site exploration, employed a consulting geologist, taken assay samples and ccmmissioncd laboratory processing trials to assess the potential of the area and has made a thorough search of available mining records.

** The metal price has now doubled to around $US 3,000.00 per tonne. Subject to a suitable grade of ore being maintained

'annual revenue of $650,000.00 could be expected

at current market prices.

I I I I I I I I I I I I I I I I I I I I I

O

1. INTRODUCTION (cont.)

A summary of this information, and the Geoloyist's report are included as attachments to this reort. The mineral tenements owned by VME are considered to be those most likely to yield high grade, multi-mineral ores and cover all the major old mine workings in the region.

Evidence of E's success is the high grade antimony ores which are currently being tLial mined at PL688 - (Bradleys Line) which has proven reserves of 340 tonnes and probable reserves of 219 tonnes of Antimony metal.

I 2. CO1PANY OBJECTIVES The Company commenced operations in February 1982 and has

I to date undertaken preliminary work aimed at establishing the foundations to achieve the company objectives as set out below: I Short Term

In the short term it is the company's objective to

I establish a small scale mining and milling operation and to obtain appropriate sales contracts for the scale of this operation. It is intended that this will establish a

I sufficient cash flow to enable the Company's mineral holdings to be fully explored and reserves proven. The Company is also continuing with exploration and

I prospecting work in order to secure further licences.

I Long Terra The long term objectives of the Company are to become a

I major producer and exporter of Antimony concentrates to supply markets established in the major user countries. The Company also intends to diversify its activities in the mining, milling and marketing of other minerals,

I particularly gold, once the Antimony operation has become firmly secured. I It would be the Company's intention to invite participation of investment groups or equity partners, or

establish a public operating company at an appropriate time when potential and scale of the Company's endeavours

I can be properly demonstrated.

I. I

3. DESCRIPTIONS OF OPERATIONS TO DATE AND

PPrations to Date

I The Company has been granted prospecting licences over several areas in the Bowralvjlle - Upper Taylor- s' Arm area. These are indicated.on the General Location Map I (Figure 3.1) shown on the following page. Permission to bulk sample has been obtained from the

I Department of Mineral Resources on PL's 88, 89 and 122 and over 300 tonnes of ore has been excavated as part of this bulk sampling from Bradley's mine on PL 88.

I Significant mine workings and exploratory work have been carried out over a period of many years (prior to the commencement of the Company's current operations) over the I areas for which the Company holds current licences. Those are outlined in summary in the attachments to this report.

I The Company has to date concentrated its efforts on the initial development of Bradley's No. 1 Adit, a plan of which is shown on figure 3.2. Over $400,000 has been

I expended on exploritory work and development in this aea. The following work associated with this mine has been

I undertaken by the Company since its formation in 1982. Applied for a mining licence for the area covering the mine.

Repaired, replaced and upgraded the development work within the No. 1 Adit which had been carried out in

I the early 19601 s. Installation of new mine timbers, ore passes, air Passes,loading chutes and rail tracks, andthe I development of the initial stope for the taking of the bulk samples.

I . Upgrading of the access road and mine surface area to allow the loading and transport of the ore from the mine site.

I . Mining of over 30_tonnes of ore as the initial bulk sampling, and the transport of approximately 130 tonnes of ore (via ore trucks) to a mill owned and

Ioperated by yAM, located at Hiligrove in the New England area of New South Wales. This first load of ore was processed through the Hillgrove by yAM, and I was witnessed by our personnel to assess the characteristics of the ore during the milling process.

I

P124

BDLEY'S MINE

PURGATORY MINE

P12 - P2 6

P881 JL

P13O /

-

P323

.2 .

/ JR TYLCRS ARI"i

1r

NOR T

ONRAVILLE NMU CCA H ADS

ACKSVILLE

1\

NORTH COAST RAILWAY

\PAFIC HIGH1AY

J SITE OF PROPOSED PILOT MILL I

I I

/ 7( ..,

L,,.._2 4 6 8 - 0 - 12 It km SCALE

[ FJGURE 3,1 GENERAL LOCATION MAP],

L. Pb Z. i ±21 — ' .. -

15.3 '7

0.1.4 ±! I E

•I _-•

• .±.!

I- Ill

tZ ____ —

ti 1 =111

g Pelirninary

;cJc A FL&N OF iJ

E3RADL[15 NI -ADIT 5ElC PAST OF THE WORKINGS OF 51DtE'5 &NTIUOH'Y MIRE

0

CURRLTL'I' WITHIN PL8S (GSMJL), PHERPRW Cc, RAl-EIGH.

d P,C Cn -r, by 4 I

REFERENCE

e, ~

—

-I-- = —

- -a-- __ — — —

*-

It:III1IIIIII LOOTUi'JAL VIEW OF STO — F.5T SURVEY (I.m, .53w)

01

—_-- .-.—

'A VILW V7 ILPL. I,'- d - A a_ — — — — — • ___t ._-___t

'— -

__

/ Prelirxiinary

FIGURE 3.2 PLAN OF WORKINGS AT BRADLEY'S MINE

PREPARED BY NaS.W, DLPT, OF MINERAL RESOURCES

nAiO WIN

1sf- PC

Al

- '--- - -

.. ..- -...— . .. — .i. .

s._ •I in '

c

I. I,

3. DESCPIPTIONS OF OPERATIONS TO DATE OF

Commissioned assay tests from the ore body, from the

I concentrated produced from the Hiligrove mill, and from other deposits owned by the Company. Prepared an initial design for a pilot mill, the LLow I sheet for which is shown on the following page, and purchased the major items of equipment for this mill.

U . Researched the various possible pilot mill site locations, and selected the site for the mill, the

- location for which is shown on the General Location

I Map (figure 3.1) and initiated discussions with local authorities, and the land owners regarding its installation.

I . Commissioned a consulting geologist, Mr. G. C. Kelly, to undertake an initial investigation of the

- Company's holdings. A copy of Mr. Kelly's report forms Attachment 1 to this report.

Through the testing laboratories of the New South

I

Wales Department of Mineral Resources, carjed out labora€ory pilot milling of ore samples. Laboratory investigations to determine the optimum milling

Iprocedures are continuing.

The results.of the laboratory work carried out to date are extremely favourable and show 95% recovery

I through the milling process, with the concentrate so produced assaying at: Sb • 67.5% Sn less than .02 Hg ' less than .01

- As .02 I . Pb' .17 Fe .5

I . Actively canvassed potential purchasers for the concentrate in Europe, Asia and North America, and

I sought initial sales contracts for the first --- product—jon--runs from the pilot mill.

IProjected Operations

In the short term, the projected operations of the Company include:

I . Obtaining initial sales contracts for the ore concentrate.

I

I. I, I DEScR:?TIoNs OF OPERATIONS TO DATE OF

PROJEC:ED OPERATIONS (cont.)

.Constructionof the pilot mill.

;egotiating and obtainjng the necessary approvis for I the installation of the mill at the proposed 91te at Clybucca, and installing and commissioning the plant.

I . Continuing the development and mining operations at Eradley's No. 1 Adit to provide feed for the mill at a rate which will be established by the sales

IContracts obtained.

Continuing the laboratory testing and sample milling operations to determine the optimum mill treatment

I for the subject ore. Continuing the Prospecting and exploration work in

I the Company's licence areas and other identified areas of potential (Particularly in relation to Antimony and Gold prospects). I . Thvesejgate the most appropriate method for funding :he ongoing operations of the Company, and estructurjng the Company if necessary to ensure the I full potential of its operations can be realised as soon as practicable.

I

4. COMPANY MANAGEMENT & STRUCTUP.E

The Company is incorporated in New South Wales, and has been carrying out exploration and initial mining operations since February 1982. -

In assembling the senior management and initial shareholders it has been the Company's intention to combine mining, engineering and prospecting skills and experience with the appropriate administrative, financial and marketing expertise.

To this end Company personnel have been specifically selected, and comprise:

Roger A. Vincent AASA

Anthony C. Meggitt BSc, BCom Maxwell M. Howie BE

Alan W. Grant Grant R. Figtree BEC, MA

Wallace G. Saul Ian J. Lupton

Principal - R. A. Vincent & Associates Principal - Systematjcs Principal - Howie Herring & Forsyth Pty. Ltd. Principal - Granco Finance Principal - The Implementation & Management Group Pty. Ltd. Prospector Mine & Plant Manayer

The day to day operations of the mine and exploration

I activities are being carried out by Messrs. Saul anCi Lupton. Mr. Saul, who is a prospector and miner with over twenty-five years field experience has overall charge of

I operations. Mr. Lupton, who has had extensive experience mining and ore extraction for many years is in charye of plant design, quality control, purchasing and machinery

I maintenance. Both of these operating Directors have first hand experience in the mining and -extraction of Antimony ores. Mr. Saul has managed several mining operations including Antimony mines in Dorigo and -the Northern

I Tablelands Mr. Lupton has designed and built several ore extraction plants which are currently in operation in the area.

Staff which is recruited locally and employed on site, is involved in the mining and loading of ore and site clearing under the direction of Mr. Saul and Mr. Lupton.

The other nominated personnel are based in Sydney and are responsible for the overall direction and planning of the Company, accounting and administrative functions and marketing.

Funding of the Company's operations to date has been by the nominated personnel.

5. FINANCIAL MODEL & CASH FLOW FORECAST

A computer analysis has been undertaken of the Company's operation in the short term based upon continued bulk sampling and the establishment of a pilot mill at Clybucca over the next twelve month perioL

Cash flow forecasts have been prepared from -this computer analysis and the sensitivity of these cash flows to the various parameters established has been investigated.

The results of the computer analysis are presented on the following pages and indicate that even on the limited scale envisaged in the short term the Company's operations will be profitable.

6. ANTIMONY PRICE MARKETS AND END USES

I6.1— Price---

**

The. current price of Antimony ( Sb) is $1,500 a - tonne. This price, like all other metals has

I declined over the last two years from a high in December, 1980, of approximately $3,100. The highest price in recent years was $3,950 in January

I 1980. The LME quoted price on January 4th, 1983 was

I $1,800/$1,880 (US) per tonne. The Antimony metal price variation between 1965 and 1980 is shown on Table 6.1 on the following page.

It is generally believed the current price will increase in the future as a result of an anticipated improvement in the western based economies and possible shortages from the traditional suppliers. Current projections are that metal prices generally will rise 6% in 1983, and that the demand for Antimony will grow at a rate of 2% a year to the end of the Century.

6.2 Australian Production

Australia-in 1980 produced approximately 1,560 tonnes of Antimony. The only significant mining operation is the Hiligrove plant owned by yam Limited. This operation is in the same geological zone as VME's area but grades are significantly lower. All Hiligrove's production is exported in the form of ore concentrate.

Other significant Antimony producers are r6ken Hill Associated Smelters Pty. Ltd., and the Electrolytic Refining and Smelting Company of Australia Limited, both of which produce Lead-Tin-Antimony alloys as by-products from their other operations.

Australia does not refine any concentrate, and it is estimated that about 1,600 tonnes of Antimony is imported each year.

** Price April 1985 is back to $3,000.00 per tonne.

iiunIIu '

p1sI:-.JII(.wRI.

• iiiiiuiiirniiinniiiniuiiiiiiii

I, 1111111111 1IIIIIIIIIIIIIIIIIIII1 ',IIIIIHIIIIIOIIIIIILIIII 1111111

MINIMUM MA UIIIiU r.i' ___IIIIII IIIIIItI'IIIIIIIuIIILlII,,lII

lIIIIIIII1IIIII1111I1I1II1II!dHI ___IIIIIIIIEIIIIIIthIIIIIIIIIIIIII ___ULUJ!1IIhIIIIIIIIIII1IIII

HIHHIHhIHhIHflhIIIHIH1II TABLE 6.2

WORLD MINE PRODUCTION OF ANTIMONY (TONNES OF METAL CONTAINED IN ORES AND CONCENTRATES)

1977 1978 1979

Western World . 45,534 45,585 47,000 Bolivia 15,156 12,672 12,877 South Africa 11,350 9,414 11,614 Canada 3,200 3,000 3,100 Thailand 2,454 2,873 NA Yugoslavia 2,248 2,760 2,435 Mexico 2,698 2,457 2,460 Turkey 2,032 2,438 NA Morocco 1,285 2,110 NA Australia 2,089 2,100 NA USA 553 724 1,006 Others 5,469 5,037 NA

Comirunist Bloc 19,100 17,400 17,500 China 11,000 10,000 NA USSR 7,700 7,000 NA Czechoslcvakia & Others 400 400 NA

World Total 67,634 62,985 64,500

Source: Mining Annual Review 1980.

Ii 6.3 WOrld qiinnliprs & Mrket I China is the largest producer of Antimony metal, and has by far,- the - largest reserves. The total world

reserves are estimated at between 3.5 million and

I 4.3 million tonnes, of which 2 million tonnes are estimated to be in China.

Other major producers are Bolivia, South Africa and

I Russia. It is of note that the major producers are considered by many of the Western World purchasers to be economically or politically unstable and not

I

be suitable f-or--long -term-supply contracts.

The Company has canvassed potential purchasers in Europe, North America and Asia, and has received a

I positive response from a number who have indicated a willingness to purchase Antimony concentrate on a long term contract basis.

6.4 End Uses

I Until recently the major use for Antimony has been as a lead alloy in the production of wet cell batteries. The introduction of low maintenance and maintenance free batteries in recent years has

I caused a decline in the consumption of Antimony in this industry. I This use is however being replaced as the major application of the metal by the fire retardants

produced from Antimony trioxide. -

I Current uses of the metal include the manufacture of wet cell batteries,- solders, type metal, ammunition, electric cable sheathing, paint pigment and flame

I retardants, particularly in the production of plastics and paints. - -

SUMMARy OF KNO4N MINING INFORMATION

IN SUBJECT AREA

PRIOR TO INVEST IGATION BY G.C. KELLY

IN_DECEMBER, 1982.

2. Buckra Bendjnjnr Creek Li

(a) Known Information

Very little informatjon is available. An old report indicates the potential from the old mines.

pper Buckra Bendjninnj Group

This group of deposits covered by ML's 40-46 inclusive are located in the Mistake State Forest, Parish Herborn, County Raleigh, approximately 20 miles west of Bowravjlle. ML45 is currently held under Section 17, Application No. 53, by H. L. Sharman.

The prospects are located in the headwaters of Buckra Bendininni Creek, on the southern flank of a precipitous ridge rising 1500 feet plus immediately north of the creek. Access is along Buckra Bendinjnni Creek some two miles upstream from the jUnction with Little Wonder Creek. The last mile can be traveresed on foot only. The area of the old working is now covered by foliage.

The 5 groups of deposits extend from just above creek level upwards to a little below the crest of the ridge. The first 4 of these deposists are located immediately west of a small branch creek, the 5th immediately east of this creek. These reefs occupy an area of about 70 acres.

The first deposit discovered wasMcHugh's in 1887. The group was worked intermittently until 1944. Total recorded producticn is 55 Lorines o ore. In ascending order these prospects are:

Underlay Reef

Little Underlay Reef

McHugh's Reefs (two)

Motleys Reef.

The reefs are reported to strike from 0250 to 0450 and dip at varying angles to the north-west. One of the reefs may trend east-west.

Underlay Reef

So called for its flat dip of 450, this reef was the largest producer and most intensively worked. The ore is reported to be of a slatey nature and commonly 'mixy' with a grade in the range of 30% - 40% Sb. Massive stibnite attained 14 inches in width in part only. In one portion it widened to Ia feet made up of 3 feet of good (55% Sb approx.) ore in the middle, the remaineder 'rnixy'. The reef was last worked in1941. Total production is unknown.

Little Underlay Reef

This reef is located a short distance north and above the Underlay Reef and is presumably a smaller reef parallel to the Underlay Reef. Production not recorded.

McHugh's Reef

This reef was the first of the group discovered (1887). A large adit 8 feet x 9 feet was driven into the hill along the reef which was eventually lost. 'Good' ore occurred at the entrance of this tunnel and in a shaft sunk at the entrance possibly indicating a north pitching shoot. The vein strikes 0200 to 0450 dips north-west and is reported to range from 3 inches to 3 feet wide. total production is unknown.

. Bradley's Reef

Two reefs are reported to occur in this zone, a few miles

I north of McHugh's, the largest reef, wide but of rnixy nature in th small branch creek but narrows uphill to 2 feet 6 inches where it carried good ore before cutting

I- oui._Total production is unknown.

Motley's Reef

This reef is reported to have heer worked prom two long U adits and to have contained good ore - 15 tonnes of ore

obtained by L. N. Motley in 1937 possibly came from this lease. The ground is reputed to be very weak and to have

I collapsed soon after. Total production is unknown. A sample taken by Mr. Gabriel of the Mines Department in

I 1937 from one of these deposits is reported to assay 18.8%Sb and 16.4 dwts Au/ton over 3 feet width. I Other undescribed reefs are reported to occur in this area. Mr. Ron Lambert of Nambucca Heads showed the

writers some specimens of quartz-stibnite ore from a large

I reef trending north-west and crossing Buckra Bendininni Creek approximately 0.5 mile upstream from its junction with Little Wonder Creek. He claims to have traced the reef which is up to 10 feet w-ide for some 2,000 feet

I north-west from the creek. This reef which he calls The Big Buck Reefs has not been worked. I Lambert also exhibited some large lumps of massive stibnite from two veins which he claims to have located a

short way upstream from the above reef in Buckra - Bendininni Creek

(b) Potential

I Mr. Saul has maintained this PL for may years because of its potential. There is approximately 1000 feet of tunnelling already in existence. The major work has been

I done at the Bradleys Tunnel which is 300 feet long and has a header of about 1,000 feet. (This tunnelling and prospective work represents an investment of some

I$500,000).

In the Bradleys Tunnel there is evidence of a reef of Sb 1.5 feet wide which ranges from an average 10% to a high

I 60% Sb. It is believed this reef would average 10% Sb when mined. It is known to extend- lengthwise 700 feet but its depth is unknown. A parrallel reof running alongside,

I has also been located. It is likely that it extends vertically above and below the existing adit for a considerable distance. Mr. Saul believes the Bradleys

I area alone would support a small underground mine of 2 - 4 tonnes per hour. There is evidence of gold but the area has never been properly assayed.

I

VALENTINE MINING & EXPLORATION PTY EIS 680

Proposed antimony mining at

Bradley's mine

MEC